Village of Hortonville approves $1.67 million general-obligation debt to fund capital plan

The Village of Hortonville board voted April 2 to approve Resolution R-06-26 authorizing the sale of approximately $1,670,000 in general-obligation debt to fund projects in the village capital improvement plan.

A finance presenter reviewed the district’s existing debt profile and showed how the proposed issuance — roughly $1,595,000 net after issuance costs — would be layered to smooth a projected drop in tax levy impact next year. The presenter said the village’s 2026 net tax levy for debt service is roughly $668,000 and that the proposed financing, combined with existing revenue sources and TID assumptions, would keep the debt-service portion of the levy from swinging sharply year to year.

Trustees asked about issuance costs, an optional paid agent fee and the frequency of debt payments. The presenter said payments are scheduled twice a year, explained the inclusion of issuance costs in the gross amount and noted contingency planning if Tax Increment District (TID) 5 underperforms — table figures in the packet show years when TID 5 can and cannot make its projected payments.

Trustee Jim moved to approve R-06-26; the motion was seconded and passed on a roll-call vote.

Why it matters: the borrowing will finance near-term capital projects while aiming to avoid a sharp tax impact increase in a single year. Staff noted the village remains well under the statutory 5% general-obligation-debt limit (the presenter cited a 5% limit on equalized value of about $20 million, with current outstanding principal near $2.8 million), but the new issuance raises the village’s percentage of that limit and will be tracked in future annual updates.

Next steps: staff will proceed with issuance actions per the resolution and continue annual TID cash-flow updates to re-evaluate future levy needs.