The village of Shorewood unanimously approved a series of ordinances abating the taxes levied for 2016 and another providing for the bonds issuance to payoff outstanding debt.
Board action allows for an additional revenue source to account for the levy and collection of a direct annual tax sufficient to pay the principal and interest on outstanding debts. The action also authorizes the sale of bonds.
In 2009, the city dedicated bonds to water and sewer. Debts were also issued to pay for utility taxes in 2010, in addition to limited tax bonds and utility taxes in 2011. The restructured bond payments impacts one for $4,700,000, another for $4,140,000 and a third for $620,000.
Shorewood previously approved a bonds ordinance in 2015, in order to pay the principal and interests on outstanding debts.
Anne Burkholder, finance director, said the Village has undergone this process for a number of years and is looking to follow suit this year.
“These three abatement ordinances together represent the village’s intentions to use revenue streams other than property taxes to pay the principal and interest on our outstanding debt next year,” she said.
The village said the amount of the bonds issuance is at $329,000. That action provides for an added revenue source, and the amount will not be subject to tax referendum.
The village said the bonds will be sold on Nov. 1.
Burkholder said she sees the village being owed a favorable interest rate. Shorewood currently holds a AA-plus rating.
“Last year it was right at one percent, so just depending on market conditions, the village has a favorable bond rating and financial performance, so we expect a competitive interest rate,” she said.
Shorewood is considering bids from 13 banks as part of the process.
The village board will hold a second reading for the ordinances and come back with bond results at the Nov. 8 meeting.