East Troy approves $2 million taxable notes to finish TID projects; board also signs off on ordinances and TAP grant support

The Village Board of East Troy approved a resolution to offer approximately $2,000,000 in taxable general obligation promissory notes (Series 2025 B) to finance remaining Tax Increment District (TID) projects, including construction of a road and retention pond in the village business park.

Village finance presenters told the board the financing is structured to ease the TID’s cash flow: principal payments are minimal in the first two years, then increase as TID revenues improve. The presenter said projected annual cash flow becomes positive after 2025 and that sale-day interest rates could change the final numbers. The board approved the resolution by voice vote; the transcript did not record a roll-call tally.

The financing package as presented includes a $150,000 interfund advance the village is treating as short-term borrowing to the TID; staff noted the advance could be tracked at an interest rate equivalent to the village’s opportunity cost when borrowing from its capital projects fund. Presenters said the package also adds construction of a road through a single large parcel in the business park, planned to be subdivided into five lots, and includes a retention pond and coordination to complete a Main Street sidewalk project at the same time.

The presenter told the board the taxable offering could carry higher interest rates than tax-exempt municipal debt and that the final structure will be set on sale day; he said the village used a recent comparable deal from another municipal client to estimate rates. He told the board the team aims to avoid negative annual cash flow once the final numbers are set.

After discussion the board approved the financing resolution. The meeting record does not include a detailed vote tally in the public portion of the transcript.

Votes at a glance

- Resolution 2025-16 — "Providing for the sale of approximately $2,000,000 taxable general obligation promissory notes, Series 2025 B." Outcome: approved. Notes: included TID projects (road, retention pond, sidewalks) and a $150,000 interfund advance; vote recorded as "motion carries" (no roll-call tally in transcript).

- Ordinance 2025-O-8 — Amendment to zoning regulations (chapter 5.1) changing an encroachment requirement from an "encroachment agreement" to an "encroachment notice." Outcome: approved (planning commission had recommended approval).

- Ordinance 2025-O-9 — Amendment to the Honey Creek Planned Development to raise the maximum building height for Lot 2 (CSM 4915) from 20 feet to 30 feet (applicant: I43 Investments LLC). Outcome: approved.

- Resolution 2025-15 — Support for a WISDOT Transportation Alternatives (TAP) grant application for an East Troy–Muckwonago multiuse path. Outcome: approved (motion approved as presented).

- Motion to go into closed session pursuant to Wis. Stat. § 19.85(1)(e) to discuss bargaining posture regarding an offer to purchase property and potential purchase-and-sale terms. Outcome: approved via roll-call.

Why it matters

Approving the taxable note sale authorizes staff to pursue market financing for TID projects that the village says it wants completed to make business-park parcels ready for development. The board also moved forward several land-use and grant decisions that affect village capital planning and long-range connectivity.

What’s next

Staff will finalize sale-day financing terms and return with any necessary updates. The board scheduled a public hearing on the 2026 budget and will continue work on associated capital purchases and grant applications.