Hobart reallocates bond proceeds for North Overland project
By Kevin Boneske
HOBART – A resolution to reallocate unexpended bond proceeds of $46,382 in Tax Incremental District (TID) No. 1 to the North Overland Road reconstruction project was approved March 16 by the village board.
Village Administrator Aaron Kramer said the village borrowed money in 2018 to finance a new water tower and inline booster improvements necessary to service TID No. 1.
Kramer said the water tower portion was completed with $46,382 of the borrowing remaining.
“This was a project in TID (No.) 1 for the water utility, but the bond is being paid back by the TID, not the water users,” he said. “Remember, we said the water tower is being paid for by the TID.”
Kramer said the board has two options with the remaining bond proceeds after closing out the project.
“The bond cannot be prepaid – we can’t pay back any of the principal at this point,” he said. “The money could essentially sit there for a number of years until the very end… to make the payment, or as we have done, for example, with the Southwind Estates, we can find a comparable project and we can transfer the funds by resolution.”
Kramer said North Overland is located entirely within TID No. 1, and a portion of the reconstruction is water-related, so the amount left over from the water tower bonding could be applied.
“In theory, we could borrow less when we ultimately do the North Overland bonds,” he said.
Kramer said reallocating the bond proceeds by resolution also lets auditors know where the leftover money goes.
The project includes a temporary road for existing traffic, deep sanitary sewer along with all other utilities and road construction.
In other action, the board approved a payment of $8,200 to Chad Roffers Property, LLC, for the installation of 200 feet of water main and two valves on Trout Creek adjacent to a subdivision created several years ago.
Kramer said staff recommended reimbursing the developer from the village’s water fund for the installation, because it now connects to and benefits the Blackberry Ridge subdivision.
“Why did he put it in? Because if he didn’t, we would have had to,” he said. “This is simply a reimbursement using the best mathematical formula… It’s what we would pay for.”
Public Works Director Jerry Lancelle said the reimbursement is based on bids the village received from the Blackberry Ridge contract.
The board approved appointing Lancelle as Hobart’s representative to the NEW Water Municipal Committee, which is being created to recommend the appointment of a municipal representative to the NEW Water Board of Commissioners.
Board members two weeks earlier approved a resolution to be part of the committee.
Suamico Village Administrator Alex Kaker spearheaded the idea of forming the committee for NEW Water’s 15 municipal customers, who have no direct representation on the five-member Board of Commissioners and annually face higher sewer charges.
NEW Water’s Board of Commissioners is appointed by the Brown County Board of Supervisors, with the county executive nominating commissioners and one appointment coming up later this year.
The board held a public hearing to consider a conditional use permit (CUP) for a 1,500-square-foot accessory building at 4493 N. Pine Tree Road.
After only the applicant spoke, the board unanimously approved the CUP.