Hartland Board authorizes sale process for $5.075 million in general obligation promissory notes

The Village Board authorized the start of a bond issuance process for approximately $5,075,000 in general obligation promissory notes to finance capital-improvement projects. Greg Johnson of Ehlers presented the presale report and said the borrowing is intended to fund the village’s capital plan over the next two years. He said $3,845,000 of the borrowing will be repaid from the village levy, $800,000 from the water utility and $430,000 from the sewer utility. The levy portion is amortized over 20 years; the water and sewer portions are structured over 10 years. Johnson estimated total principal and interest for the issue at about $7,429,608 and said the sale is scheduled for Oct. 27 with proceeds expected Nov. 13. The board voted to engage counsel (Corals and Brady LLP, as presented) to support the issuance process and approved the resolution providing for the sale of the notes (series 2025A). A motion to proceed with the engagement letter and a subsequent motion to authorize the sale were moved, seconded and carried. Why this matters: the notes finance multiple capital projects and will affect the village debt-service levy in future budgets. Ehlers’ presentation showed that, despite the new borrowing, the village’s tax rate per $1,000 of equalized value for debt service is projected to decline slightly in 2026 because of growth in the tax base, although the levy-funded debt service total will increase by roughly $25,500 in the next budget period. Next steps: staff will finalize the bond sale process with counsel and the finance adviser; the board will receive final sale results on Oct. 27 and the village will receive proceeds in November.