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Raynard finance director outlines preliminary 2027 debt levy of $1.409 million, a $644,000 increase
Summary
Finance Director Connie Hillman told the City of Raynard Personal Finance Committee the preliminary 2027 debt levy is estimated at $1,409,000 — up $644,000 from 2026 — and staff will refine assumptions on prepayments, special assessments and fund consolidation before final council action.
Finance Director Connie Hillman told the City of Raynard Personal Finance Committee on Monday that the city's preliminary debt levy for 2027 is estimated at $1,409,000, an increase of $644,000 from the 2026 debt levy of $765,000. Hillman said the levy is intended to cover debt-service payments not met by enterprise funds, including scheduled payments on August 27 and February 28.
"The 2026 debt levy was 765,000. The permanent preliminary debt levy is 1,409,000. An increase of 644,000," Hillman said, describing the assumptions staff used to produce the estimate. She told the committee that assumption inputs include a 100% collection rate for the operating levy, 98% collection of special assessments, a 5% allowance for prepaids and 100% for current-year assessments.
Hillman said the city expects to issue debt in the fall of 2026 for planned construction projects and that the structure of that issue assumes prepaid assessments will cover some debt-service payments. She warned, however, that prepayments are "all over the board," varying by neighborhood and whether property is commercial or residential, and pledged a deeper analysis in coming months to narrow the estimate.
The committee discussed other factors that feed into the levy. Chair Gabe Johnson noted the $6,000,000 construction project and its effect on rent schedules and amortization, saying rent changes tied to that project will be reflected in the books "in 2028, at least," depending on how the city amortizes the project. Hillman also projected a cash balance of roughly $841,000 on Feb. 1 under current plans and outlined a proposal to close a separate debt-service fund and move balances into fund 318 to simplify accounting.
Hillman said the preliminary figures include a special-assessment component and a $62,000 transfer already set for 2027, and suggested staff could consider using larger reserves (for example, fund 03/2006) to reduce levy pressure in future years. Committee members agreed staff should review historical outcomes — Hillman asked for a check against the December 2026 projection — and said they expected additional refinement before the council votes.
No formal vote was recorded in the committee on Monday; Hillman said she would highlight the fund-closing and the $62,000 transfer when the item goes upstairs to the full council. Chair Johnson moved to adjourn after the discussion.
