Town of Koshkonong
Resolution No. 2021-420
To Borrow Funds & Repayment

The Town Board of Koshkonong on March 24, 2021 approved a motion to secure a $1.2 Million bank loan for the purpose of funding road construction and equipment in the year 2021. The loan will be obtained from Premier Bank, Fort Atkinson, WI. The terms agreed upon for the loan inlcude $1.2 Million principal amount, with a 5-year repayment term at an interest rate of 1.1% annually. The first principal and interest payment will be due on April 1, 2022 and April 1 for the next four consecutive years, with a maturity date of April 1, 2026.

The Town Board of the Town of Koshkonong, Jefferson County, Wisconsin, has the specific authority under Wisconsin State Statute 82.03 to adopt this resolution for the repayment of the above specified loan.

WHEREAS the Town Board of Koshkonong has entered into an agreement to procure the above stated loan and wishes to specify the repayment of said loan and

WHEREAS the Town Board of Koshkonong will be required to make a principal and interest payment to Premier Bank on April 1, 2022, and

WHEREAS the Town Board of Koshkonong has approved by a vote of 5 yes, 0 no at a Town Board meeting on March 24, 2021, with a quorum present, that the principal and interest loan payment of 2022, 2023, 2024, 2025 and 2026 will be added to the town levy, increasing the levy each year by approximately $240,000 plus interest, and

WHEREAS the Town Board of Koshkonong has designated this repayment plan to be satisfied by April 1, 2026.

NOW THEREFORE BE IT RESOLVED that the Town of Koshkonong shall obtain a loan from Premier Bank of Fort Atkinson, Wisconsin, for the amount of $1.2 Million, for 2021 road construction and equipment. The terms agreed upon for the loan include: $1.2 Million principal amount, with a 5-year repayment term at an interest rate of 1.1% annually. The first principal and interest payment will be due on April 1, 2022 and with a maturity date of April 1, 2026. The loan payment for each of the 5-year term will be added to the town levy beginning in 2021, and

BE IT FURTHER RESOLVED that the future budgets will be based on this plan and that the terms of the loan contract be considered and adhered to by this and future Town of Koshkonong Boards.

This resolution is adopted this 20th day of April, 2021 and will be published and posted as required.