Members of the Village of Cross Plains Finance Advisory and Enhancement Committee discussed a plan on Nov. 5, 2025 to accelerate repayment of Tax Incremental District (TID) 3 debt, with the goal of reducing interest expense and closing the district earlier than currently projected.

Committee member Michael Polmikowski outlined a proposed one‑time payoff of the 2014A financing that would require roughly $825,000 in principal plus near‑term interest to retire the callable portion of the issue and significantly reduce future annual debt service. Polmikowski said TID cash balances and projected increments could cover the payment while leaving a modest residual fund balance in the district. Committee members noted the 2014A series is callable with 30 days’ notice on the next payment date, but several practical questions were raised before any prepayment decision: the precise amount of next-year tax‑increment receipts (county and levy figures must be final), whether Ehlers or the issuing party had any concerns about call timing, and how water‑and‑sewer revenue transfers structured as long‑term obligations would be handled if provided up front as a lump sum.

Staff confirmed they would verify the exact callable payoff number with the paying agent and coordinate with Ehlers on timing and the mechanics of a call. Committee members also asked staff to confirm whether certain internal transfers (notably water/sewer enterprise balances that are structured as receipts or long‑term transfers) could produce interest that changes the net payoff calculus and whether any legal or accounting constraints would affect an early settlement.

No formal vote was taken at the Nov. 5 meeting. Committee members said the item should be returned to the Village Board with a staff‑prepared recommendation once actual tax‑increment receipts and the county levy figures are final (December–January timeframe). Committee members indicated support in principle for early payoff if the numbers verify savings and no legal or operational impediments arise.

Key follow‑ups assigned to staff include obtaining final tax increment projections, confirming the exact callable payoff figure and timing with the paying agent, getting written confirmation from Ehlers about call mechanics and any market or accounting implications, and preparing a Board memo and proposed motion if the payoff is feasible.