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Shorewood approves parameters for $9.235 million promissory notes; declares intent to reimburse borrowing
Summary
The Shorewood Village Board voted unanimously to authorize parameters for up to $9.235 million in general obligation promissory notes and separately approved a declaration of intent to reimburse certain project expenses from future borrowing, including funds related to the village's lead service line work.
The Shorewood Village Board voted unanimously to authorize the sale of up to $9.235 million in general obligation promissory notes and approved a separate declaration that would allow the village to reimburse certain prior expenditures from future bond proceeds.
The bond authorization, described in resolution 2025-01, sets parameters for sale of the notes; resolution 2025-02 declares the village's official intent to reimburse expenditures with bond or note proceeds if it later issues borrowing. Both measures passed on roll-call votes of 7-0.
Village officials said the borrowing would provide financing flexibility for several large projects discussed by the board, including work tied to the village's public works facility. During discussion before the vote, one trustee said the only concern that had given them pause previously was a $2,000,000 line item related to the public works facility; that trustee said after further consideration they would support the measures in order to preserve flexibility to acquire land quickly if needed. A village staff member explained that the reimbursement declaration is a federal tax-law requirement tied to programs such as the Safe Drinking Water Loan Program and does not itself require the village to issue bonds.
Votes at a glance
- Resolution 2025-01: "Resolution authorizing the issuance and establishing parameters for the sale of not to exceed $9,235,000 general obligation promissory notes, series 2025A." Motion to approve by Trustee Lynn; second by Trustee Kudo. Roll-call: Trustee McGovern ' Aye; Trustee Kudo ' Aye; Trustee Ersink ' Aye; President MacKaegg ' Aye; Trustee Arndorffer ' Aye; Trustee Stokesbrand ' Aye; Trustee Linn ' Aye. Outcome: approved, 7-0.
- Resolution 2025-02: "Resolution declaring official intent to reimburse expenditures from proceeds of borrowing." Motion to approve by Trustee Ersink; second by Trustee Lynn. Roll-call: unanimous. Outcome: approved, 7-0.
Board members and staff characterized the reimbursement resolution as a standard procedural step required when a municipality may later issue tax-exempt debt to reimburse prior capital spending, citing the Safe Drinking Water Loan Program as a likely financing source for the public portion of the village's lead service line project. A village staff member said the declaration allows the village to reimburse itself from future borrowing for eligible expenditures paid from current cash, but does not itself obligate the village to borrow.
The board's approval establishes the parameters for the notes and the administrative authority to move forward with sale under the terms set in the resolutions. Trustees did not specify a final closing date during the meeting; the motions and roll calls recorded match the resolutions as read into the record.
