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Ehlers outlines $20.5M capital improvement plan; board warned of levy limits and proposed 2025 borrowing
Summary
Finance consultant Ehlers presented a capital improvement plan totaling about $20.5 million (current CIP items), recommended prudent borrowing and highlighted a declining local levy capacity that will constrain capital funding unless levy strategies or borrowing are adjusted.
Ehlers, the village’s financial advisor, presented the draft capital improvement plan (CIP) and financial management plan that covers proposed projects in 2025–2030. The presentation estimated roughly $20.5 million in capital costs currently in the CIP (not including the wastewater facilities plan projects) and recommended biannual general obligation borrowing to fund multi‑year capital needs.
Brian from Ehlers told trustees the village’s assigned capital reserves are healthy but that existing levy limits will squeeze capital‑levy capacity in coming years. "Grab as much as you can for capital projects levy. Don't leave any levy money on the table, specifically base levy," he said, noting the village currently sits at about $2.6 million in assigned capital fund balance.
The consultant proposed borrowing roughly $2 million in 2025, another $2.0 million in 2027 and about $1.5 million in 2029, depending on final project scope and certified valuations. Ehlers highlighted that the village’s allowable levy increases are driven by net new construction and that operating needs growing at assumed rates will reduce room for capital levies unless the board pursues alternatives such as abated debt or reassigning reserves.
Staff also briefed trustees on near‑term facility priorities included in the CIP: reroofing the municipal building (estimated in packet at $150,000) and potential boardroom improvements (budgeted about $60,000). Department heads will finalize departmental operating budgets in July; staff asked trustees for any direction about service‑level changes or compensation market updates to include in the 2026 budget.
Ehlers recommended preparing a presale report and going to market for a 2025 note sale in July if the board desires to borrow under the current plan. No final borrowing resolution was adopted at the meeting; staff and the consultant will return with a presale report and refined tax‑rate impact tables after August certified values and further budget work.
