DEBT HISTORY: THE PAST FIVE YEARS
The Village of Pleasant Prairie last borrowed for major capital projects in 2002. Over the past five years, the Village has been paying down debt incurred from past major roadway work, building construction and equipment purchases that were part of the General Government Budget (the portion that also derives income from 19% of your property tax payment).
Over the same five-year time frame, the Village has reduced its general debt from approximately $19 million to roughly $9 million. Pleasant Prairie has made debt payments in similar amounts for each of the past four years (since 2004) to reduce the General Government debt.
DEBT FUTURE: TODAY & TOMORROW
The Village will pay a similar amount again in 2008, further reducing the debt to approximately $7 million at the end of 2008. As a result of a successful debt management plan and because the Village has not borrowed for the past five years, Village debt payments will be significantly smaller in 2009. The Village will begin to realize a savings in their debt payment beginning in 2009, which will continue through 2011 and beyond.
INCORPORATING DEBT AS A SOURCE OF FUNDING
Much consideration and evaluation takes place when prioritizing capital projects over several years. Multiple sources of funding are considered for a large variety of projects that will contribute to the overall strength and stability of the community. Some of the different funding sources are: property taxes; loans (in the form of bonds); grants; impact fees; special assessments; resale of capital equipment such as old squad cars; and donations.
The Village Board has completed the 2008 General Government budgeting process. While planning for 2008, the Village Board and staff was looking beyond the short-term financial plans at long-term needs and how to fund them. They carefully weighed foreseeable needs and prioritized them accordingly. Future plans are to use the savings gained from the smaller debt payments in upcoming years to cover costs for other necessary equipment purchases.
WHAT TO EXPECT: 2008 AND BEYOND
During 2008, the Village will borrow funds, for the first time since 2002 for major capital projects. The 2008 projects include the extension of 80th Street, the reconstruction of a Lakeshore Drive bridge over Barnes Creek and the installation of electric power and lighting on the North side of Prairie Springs Park. Please see the chart below related to General Government projects planned for 2008.
In 2009, the Village is planning to reconstruct 85th Street. Planning will also begin for the reconstruction of 116th Street, which is expected to take place in 2010 and 2011. Approximately $7.5 million in major road construction projects will take place over the next few years (2008 through 2011). The Village has plans to fund these projects through a variety of sources: borrowed funds (bonds), a possible $1.7 million grant, a separate $1.2 million grant, and funds from a larger Utility Shared Revenue Payment from the WE Energies power plant (Read the Shared Revenue article for more information).
Project Table 4.pdf