Cottage Grove board approves $1.3 million library levy question, updates five‑year financial plan

COTTAGE GROVE, Wis. — The Village of Cottage Grove Village Board voted on January 27 to place a referendum question on the spring ballot that would add a $1.3 million annual levy for construction and operation of a community library, and at the same meeting approved an updated five‑year financial management plan that shows how the project would affect the village’s debt and tax rate.

Supporters and opponents filled the meeting and submitted written comments during a two‑hour public comment period, with residents debating the need for a local library, alternatives to a new building and the effect on property taxes. "Thank you, trustees, library board members, village staff and consultants for your due diligence efforts," said resident Cassie Mordini, who urged approval of the ballot question. Her daughter, Lola Mordini, told trustees, "I would really like to have a public library in Cottage Grove because it would be a place I could go on my own and check out books and read. Please vote yes for the library." Opponents raised affordability and timing concerns, with resident Brandon Peele saying, "I think that now is not the right time to be looking for an actual library building. I think we should be looking at the financials and the budget before we push for a building."

Nut graf: The board’s vote authorizes a reoccurring levy of $1,300,000 to support a proposed Cottage Grove community library at the former Learning Ladder daycare site and directs staff to proceed with the steps needed to place the measure on the ballot. The village’s financial adviser presented two CIP scenarios showing the effect of the project on the village’s general obligation (GO) debt capacity, levy and tax rate, and described how water and sewer revenue needs would affect borrowing.

Ehlers financial adviser Greg explained the fiscal tradeoffs the board considered. He told trustees that including the library in the 2025–2030 capital improvement plan raises the village’s peak GO debt usage to about 78 percent of its statutory 5 percent limit under one scenario; excluding the library produced a lower peak of about 68 percent. "If everything in the updated CIP were financed with general obligation debt, your GO debt limit in 2026 would hit 85 percent," Greg said during the presentation to illustrate the difference between full funding and the alternative scenario.

The board heard detailed modeling of capital needs. The updated CIP presented at the meeting showed roughly $46.9 million of village capital projects from 2025 to 2030 in the scenario that includes the proposed library; the water utility projects totaled about $8.5 million and sewer projects about $10 million over the same period. The library question on the ballot was framed to request a reoccurring $1,300,000 levy; staff and the village attorney said the Department of Revenue requires a dollar amount be specified and prohibits tiered referendum language that would phase levies within a single question.

Trustees debated timing and priorities. Some trustees and several members of the public urged postponing the referendum to study alternative sites and to ensure ongoing, urgent infrastructure and public safety projects identified in prior prioritization rounds remained fundable. Trustee Heidi Murphy and others emphasized the village’s prior prioritization exercise, which rated many projects as mandatory or high priority. Trustee Peter Dahl said trustees had to balance asking voters about a new service against the board’s responsibility to maintain existing services and infrastructure.

The board held several formal votes during the meeting. A motion to postpone the referendum until additional site and funding alternatives were analyzed failed on a roll call. Later, the board approved the referendum resolution, authorizing staff to submit the required documents to the Wisconsin Department of Revenue and Dane County and allowing staff to make minor technical adjustments to the ballot language. The board also approved the updated Financial Management Plan with both CIP scenarios included and voted to apply for a CDBG public facilities grant to seek outside funding for the project.

The village attorney and staff clarified next steps. If the board’s ballot authorization is forwarded to Dane County and DOR as planned, the village will move ahead with public information work and the communications plan with a consultant already under contract. Staff also said the village holds an option to purchase the Learning Ladder site and, if the referendum proceeds, the board intends to exercise the option’s second payment to preserve the site while the ballot effort proceeds.

Ending: With the village board’s approval, Cottage Grove residents will decide the levy question on the upcoming spring ballot. If the measure passes, the village would combine referendum proceeds with any capital campaign gifts and external grants to reduce borrowing needs; trustees stressed that exact tax impacts could still change depending on final financing, grant awards, Dane County library tax timing and future valuation updates.