East Troy board approves taxable promissory notes to fund TID 4 projects
Loading...
Summary
The Village Board approved Resolution 2025-18 authorizing sale of taxable general obligation promissory notes (Series 2025B) to reimburse prior land purchases and fund infrastructure in Tax Increment District 4 after a successful competitive sale; staff reported a true interest cost of 5.7% and projected debt service remains within capacity.
The East Troy Village Board on Nov. 17 adopted Resolution 2025-18 authorizing the issuance and sale of taxable general obligation promissory notes, Series 2025B, to fund land purchases and infrastructure improvements in Tax Increment District 4.
Kayla of Ehlers, the village’s municipal finance advisor, told the board the sale attracted five bids and produced a true interest cost of 5.7%, higher than the presale planning rate of about 5.1% but favorable compared with earlier market estimates. Because of bid results and an unused underwriter’s premium, the village was able to downsize the note by $35,000 and realize slightly more than $100,000 in combined principal-and-interest savings relative to presale estimates, Kayla said.
The sale-day report and exhibits included sources-and-uses tables, the allocation of the taxable notes across years to match TID 4 cash flows, and a cash-flow projection showing TID 4 is expected to be able to meet obligations through its projected close (presented as 2039). Kayla also noted the village’s general-obligation borrowing capacity remains ample and that the Moody’s rating report reaffirmed the village’s credit rating.
A trustee moved to adopt the resolution, it was seconded, and the board approved the issuance by voice vote. The board thanked Ehlers for taking the item earlier in the agenda and closed the discussion.
The resolution authorizes issuance of the notes and directs staff to complete the sale documentation and related administrative steps. No dissenting votes were recorded in the voice tally.
