The village of Prairie du Sac is looking to borrow about $1.2 million for capital projects it has planned for 2019.
The funds will be paid back over the next decade.
Ehlers CPA and Municipal Advisor for the village David Ferris provided a review of the pre-sale report of the bonds during the village’s Jan. 8 meeting.
“The purpose of the borrowing is to finance sewer, streets, storm water and water projects,” Ferris said. “The amount of the street projects is almost $1.7 million but we have offsetting amounts from previously borrowed funds, grant awards and the general fund is going to kick in a little cash that will be repaid at a later date to the general fund by TID #6. Those offsetting funds amount to about $1 million.”
Ferris said that leaves $225,000 for storm water projects, $15,000 for sanitary sewer and $269,000 for water.
Prairie du Sac Village Administrator Alan Wildman said street projects planned in 2019 include Oak Street, 6th Street, the Water Street municipal parking lot and River Front park development.
Street funds pay for pavement, sidewalk, curb and gutter while the rest is divided among sewer, water and storm water for work that goes on beneath the street, such as new storm mains, catch basins and extending water and sewer lines.
“We break it out because the utilities cover the debt service as part of this,” Wildman said. “So the entire amount of the loan isn’t put on the tax roll; some of it is paid through the revenue the utilities bring in from water and sewer bills.”
Ferris said they plan for a debt rate that stays consistent with what it has been in the past. The project is based on the village’s 2018 equalized value, meaning its overall tax base, and is projected forward based on a 1.66 percent growth rate.
Under village ordinance, the village may not borrow more than 5 percent of its equalized value, which is currently $21 million, and debt limit up to 75 percent of the village’s statutory debt.
“As you can tell you are well below that policy,” Ferris said.
The tax impact on a home valued at $170,000 would be $477.68 in 2019, which is $13.69 lower than 2018.