Title
Prior Debt Commitment Reduction (PDCR) Initiative
History
Executive Summary
The Prior Debt Commitment Reduction (PDCR) initiative establishes a formal, ongoing process to catalog prior debt commitments, identify reduction opportunities, and report measurable progress. The Village was previously on a trajectory toward a maximum potential General Obligation (GO) debt of $274,295,000. In the last year, commitments have already been reduced by millions, and PDCR will maintain discipline and transparency in further reductions.
History
During previous debt discussions, the new Village Board requested that Village staff review options for reducing debt commitments from the prior administration. As the Village Board is aware, because of prior commitments, the Village was on a trajectory of having a maximum potential General Obligation Debt of $274,295,000. In just over a year, the new Village Board has already reduced these commitments by millions. This new Prior Debt Commitment Reduction (PDCR) initiative establishes a formal, ongoing process to catalog prior debt commitments, identify reduction opportunities, and report measurable progress.
How Did the Village Get to this Point
Five-Year Financial Plan - At the June 5, 2023, BOT meeting, the Village Board approved the Capital Improvement Plan and Five-Year Financial Plan - The Five-Year Financial Plan included $68.3 million in new governmental debt (see p.78 of Five-Year Financial Plan). At the same meeting, the Village Board adopted a first-ever Natural Gas Tax, a first-ever Electricity Tax, and significant increase in the Home Rule Sales Tax, along with the elimination of the Vehicle Sticker as part of the Five-Year Financial Plan.
2023-2027 Utility Rate Study Adoption - At the October 3, 2022, BOT meeting, the Village Board accepted the Five-Year Utility Rate Study and approved the corresponding water and sewer rate increases. The Five-Year Utility Rate Study included $30.15 million in new governme...
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