Debt capacity

Osceola Village Administrator Ben Krumenauer is pleased the village is making progress on its debt, but the seven-year break taken in capital improvement projects needs to come to an end. “Several infrastructure items have aged out during that time,” Krumenauer said.

The need to continue to pay down the debt and fund projects led to the creation of a financial management plan, approved by the board in October. The board also approved the 2022-2026 capital improvement program, which calls for $22,196,214 in spending over five years.

The projects are divided in six different areas: buildings and grounds; capital equipment; community development and planning; parks, recreation and culture; public safety and transportation and utilities.

Notations in the board’s packet for the upcoming budget say “Thanks to cautious financing and planning this budget provides more funding than 2021 while simultaneously reducing the Village tax rate by 0.41%. The capital improvement program (CIP) represents a commitment by the Village to continue improving the community and maintaining critical infrastructure. This sustainable plan is further identified within the Village’s Financial Management Plan.”

Baird Public Finance prepared the 42-page plan that provides for borrowing $1 million every other year to fund capital projects.

Included in the plan was this notation: “The Village of Osceola provides Baird with an updated Long-Term Capital Improvement Plan annually to strategically update the Village’s long-term hypothetical borrowing plan. It also allows for forward planning in the event a large one-time expenditure is expected in the near future. The Village’s goal is invest approximately $1,000,000 bi-annually for levy related equipment & capital projects. The Village implemented this multi-year capital approach to allow for flexibility in fund planning as well provide for larger capital equipment purchases on odd years and larger capital infrastructure improvements in even years. Additional funding sources for equipment and infrastructure are encouraged including matching grants, Tax Increment Financing, partnerships and “piggybacking” existing contracts.

“The Village’s Capital Improvement Program 2021-25+ highlights 2022 and 2023 projects in six different categories (Buildings & Grounds, Capital Equipment, Community Development & Planning, Parks, Recreation & Culture, Public Safety and Transportation & Utilities). Areas of focus that align with general capital funding and related debt levy include public works facility improvements, seasonal and general road maintenance equipment, comprehensive planning updates, limited park maintenance and improvements, road maintenance and future road replacement planning.

“In addition to the Village’s General CIP 2021-25+ projects, the Village also anticipates a general uptick in overdue utility improvements and equipment. Water and Sewer Utility related projects include equipment replacement at the wastewater treatment plant, mainline utility replacement and reconstruction in conjunction with general road improvements and various equipment replacements including maintenance vehicles and medium sized tools. Funding for these projects will be derived from a combination of budgeted utility funds, available grants and utility funded borrow measures. The utility departments anticipate approximately $500,000 bi-annual borrow measures will be needed to supplement other funding sources. The availability and size of grants will further dictate future borrow measures.”

 

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