Village reviews 2025 financial management plan and directs staff to pursue single general-obligation note

Ariana Schmidt, a financial advisor with Ehlers, told the Village of Jackson village board that the firm had completed the final Financial Management Plan (FMP) and would present a preliminary 2025 financing plan that the board could act on this year.

Schmidt said the firm’s analysis showed the water utility is “roughly 16% behind the revenue requirement” needed to maintain operations and capital projects and that the village will pursue a conventional Public Service Commission rate case this spring to be implemented in 2026. On sewer rates, Ehlers recommended two increases—one on Jan. 1, 2025 (already implemented, Schmidt said) and a further increase on Jan. 1, 2026—to support a wastewater treatment plant upgrade that will substantially raise system value.

Why it matters: The board’s choices about borrowing and utility rates determine how the village pays for near-term capital projects and the long-term cost to ratepayers and taxpayers. Ehlers laid out options for financing roughly $3.7 million of 2025 projects and described trade-offs between issuing two separate bond issues (one revenue bond for utilities and one general-obligation issue for other projects) and consolidating all borrowing into a single general-obligation (GO) note.

Ehlers recommended bundling about $1.6 million of water and sewer projects into the GO note rather than issuing a separate revenue bond. The firm estimated issuing one consolidated GO note could save roughly $340,000 over the life of the debt because of lower costs of issuance and lower interest rates on GO pledges versus revenue bonds. Ehlers also presented preliminary sizing: about $2.2 million of projects on the GO pledge and total planned financing near $3.7 million.

Schmidt described how the draft plan maps ten years of capital projects and financing options and emphasized the FMP is a “living document” that will change with market conditions, actual project bids and revaluations. “This is a financial stress test really at the end of the day. It's not meant to be an accurate prediction. We can't see the future,” she said.

Board direction and next steps: After discussion, board members signaled agreement to proceed with the consolidated single issuance approach. Staff and Ehlers will return with a presale report on March 11 and an award of sale discussion on April 8; funds would be expected on or around May 1 if the sale proceeds as shown. Ehlers also noted continuing work on the PSC conventional rate case for the water utility and future discussions about Tax Increment District (TID) 6 developer incentive payments that remain unsettled for 2026.

Budget and taxpayer impact: Ehlers showed an example taxpayer with a home valued at roughly $355,000. With the proposed GO debt illustrated as presented, the firm estimated the average homeowner would pay about $35 more in 2026 (a levy change of about $104,000 in the example) and roughly $500 more over the life of the 20-year issue. Ehlers cautioned these are preliminary figures and depend on final issue structure, use of capital project fund balances and market rates.

Other financial items noted: Schmidt reviewed the status of several TIDs—TID 4 (closed), TID 5 (paying liabilities), TID 6 (requires developer-agreement payments) and TID 7 (supported in part by TID 4 funds under an affordable-housing extension)—and discussed the sewer utility’s working-capital position (about $6 million projected in 2025, with declines in 2026 while the wastewater project proceeds).

Board members asked about debt capacity and rate spreads; Ehlers said the spread between GO and revenue bonds typically ranges from roughly 75 to 100 basis points and that consolidating issues reduces issuance costs and administrative burden. The board did not adopt a formal ordinance at the meeting but provided direction to proceed with preparing a single GO presale package and return with formal sale documents in March and April.

Ariana Schmidt said the village should continue to consider a modest levy allocation for capital each year so cash can be applied to projects and reduce future borrowing needs.

Ending note: The board set the village’s financing timeline—presale on March 11 and sale on April 8—and asked staff and Ehlers to return with the presale report and recommended resolutions authorizing the sale.