Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Capital Budgeting topic
No spam. Unsubscribe anytime.
Committee unanimously backs $4.165 million tax-exempt note for 2025 capital and equipment; Division Road design included
Summary
The committee unanimously recommended authorization of up to $4,165,000 in tax-exempt general obligation promissory notes (Series 2025 B) to fund 2025 budgeted capital and equipment, including planning funds tied to the village center and a design allocation for Division Road.
The Germantown General Government and Finance Committee unanimously recommended the Village Board authorize the issuance and sale of up to $4,165,000 in tax-exempt general obligation promissory notes, Series 2025 B, to finance 2025 budgeted capital projects and equipment.
Phil Costin of Ehlers described the tax-exempt note as a 10-year financing consistent with the village’s typical practice. “The tax-exempt note is scheduled to be a 10 year financing,” he said, and added the note includes roughly $365,000 in planning expenses tied to the village center project that could become a village cost if a TID is not created.
What it would pay for
Costin said the tax-exempt note funds routine capital expenditures listed in the 2025 budget — roads, equipment, parks — and a subset of Division Road preparatory design work. When asked whether Division Road was included in this road program, Costin said the 2025 road program does not include Division Road construction; however, “there is about half a million dollars for Division Road preparation and design” allocated in the nontaxable note schedule to provide cash flow for the project over the next 12 months.
Public-safety building and other projects
Committee members noted the packet included a planning allocation for a police/fire building; Costin said further discussion on that project would take place in the Public Safety agenda items. Committee members and staff confirmed that most of the items in the Series B schedule were part of the 2025 budget previously approved by the Village Board.
Timing, amortization and municipal practice
Costin told the committee the tax-exempt portion would be amortized over 10 years (with a delay in principal for a few years on certain TID-related components to match anticipated revenue timing). The committee approved a motion to forward a positive recommendation to the Village Board to authorize the issuance and sale of the notes; the motion carried unanimously.
Ending
If authorized by the Village Board, the village will use the Series 2025 B proceeds to fund the 2025 capital program as listed in committee materials, reimburse reserves used earlier in the year, and provide interim cash flow for Division Road design. The Public Safety agenda later in the evening was expected to include further discussion of the public-safety facility planning noted in the capital list.
