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Cross Plains board approves roughly $4.33 million bond sale to fund capital projects
Summary
The Village of Cross Plains approved a resolution to sell approximately $4.33 million in general obligation promissory notes (series 2026A) to fund village hall work, sidewalks, public facilities and water projects and to refinance a 2023 bank note; trustees were told the issuance increases the typical homeowner's debt-service by an estimated $30'$36 per $100,000 of equalized value in 2027.
The Village of Cross Plains board voted July 16 to approve a resolution authorizing the sale of approximately $4,330,000 in general obligation promissory notes, series 2026A, to finance village capital projects and refund a higher‑cost 2023 bank note.
Ariana Schmidt, an associate municipal adviser with Eller's, told trustees the plan would cover village hall improvements, sidewalks and other public facilities and include a refunding that yields roughly $16,000 in interest savings on the existing bank note. Schmidt said the proposed par amount for the issuance is about $4.3 million and that estimated issuance costs and market adjustments bring the total to about $4.33 million.
Schmidt walked the board through the financing tables and the tax‑impact analysis, saying the new debt would raise the net debt‑service levy about $123,000 in 2027 under the assumptions presented. She said that, on a sample $100,000 equalized home, the additional levy attributable to the 2026 notes is roughly $30–$36 annually; on a $500,000 home the modeled increase is roughly $50. Schmidt cautioned that numbers are preliminary and will change on sale day.
Trustees asked about how the issuance interacts with water and sewer utility abatements. Schmidt said roughly $25,000 of annual debt service would be abated to the water utility under the packet assumptions; that placeholder grows if the Park Street project is later included. She also warned that the village's water utility currently has an all‑in debt coverage ratio below 1.0 under 2025 net revenues, meaning the utility would likely need rate adjustments to sustain additional enterprise debt over time.
Trustee Bill moved to approve the authorizing resolution; a second was received and the board adopted the resolution on a roll‑call vote. President Lankmann thanked the municipal advisor for the presentation and the board scheduled a sale/award review for Aug. 10, with anticipated closing around Aug. 27 if the plan proceeds as described.
Next steps: staff and the municipal advisor will prepare the official statement and proceed to market unless trustees direct changes; the board will consider the sale award at a later meeting.
