Two ideas are circulating in this election that deserve a serious response. Not a dismissive one. An actual one.

So let’s take them seriously. Actually follow them all the way through.

“Growth Pays for Growth”

The instinct behind this phrase is sound. New development should not arrive as a free rider, leaving existing residents to absorb the costs of expanded roads, utilities, and services. That principle is correct. Good news: That’s already how Cottage Grove operates.

Development here contributes upfront, through utility fees, building permits, park fees, and impact fees tied to capital costs. It contributes annually through property taxes that fund public safety, schools, and debt service. The HeyDay development alone is projected to generate roughly $900,000 per year in property tax revenue, which we’ve broken down in detail here: https://cgforward.org/2026/03/17/growth-already-pays-for-growth/.

That doesn’t mean growth covers every cost in every year. No system does. But it does mean the Village already has an established framework that requires development to contribute materially to the infrastructure it uses.

So if that principle is already embedded in how the Village works, what is the slogan actually asking for?

That’s where things get complicated. Because “growth pays for growth” as a campaign position isn’t just a description of how fees work. It’s an argument for adding a new law enforcement impact fee on top of the existing framework. And that’s where the simple answer breaks down.

Courts require impact fees to be tied to a clearly measurable, proportionate benefit to new development. That’s straightforward for pipes and roads. It is far harder to demonstrate for staffing-driven facilities like police, where costs are driven as much by service expectations as by population. A well serves a measurable number of households at a measurable flow rate. A police facility’s size involves judgment calls about staffing levels, service standards, and growth projections, all of which are partially discretionary. That subjectivity doesn’t make the facility unnecessary. It makes the fee legally and methodologically fragile in ways that water and sewer fees are not. The detailed case against the law enforcement impact fee is here: https://cgforward.org/2026/02/27/the-cost-of-cottage-groves-new-impact-fees/.

There’s a deeper problem too. Wisconsin’s levy limit structure means that growth isn’t just a cost center. It’s one of the few mechanisms a village has to expand its fiscal capacity at all. When net new construction rises, the allowable levy increases. When it stalls, the ceiling drops, permanently. That’s not an argument for growth at any cost. It’s an acknowledgment of how Wisconsin’s levy structure actually works. A community that makes itself meaningfully more expensive to develop than its neighbors doesn’t just slow growth. It shrinks its own future revenue path. That dynamic is explained in full here: https://cgforward.org/2026/02/25/wisconsin-levy-limits-the-hidden-grow-or-shrink-rule/.

The slogan captures part of the picture. Growth does contribute. But it leaves out operating costs, levy dynamics, housing affordability, and regional competitiveness. Those aren’t footnotes. They’re the story.

“We Need a Debt Reduction Committee”

Again, the instinct is reasonable. Residents who want elected officials to take debt seriously are asking exactly the right thing. Municipal debt deserves scrutiny. It should be transparent, strategic, and aligned with long-term community goals.

But here’s the question worth asking before creating any new structure: what would this committee actually do that isn’t already being done?

Cottage Grove’s finances are audited annually by an independent CPA. The Village carries an AA credit rating from S&P Global, a designation that reflects sound financial management and strong capacity to meet obligations. The board already reviews debt as part of its budget process. The Village’s outstanding general obligation debt sits at roughly 47% of its legal statutory ceiling, placing it in the middle range of comparable Dane County communities. The full picture of how municipal debt works, and how it differs from personal or business debt, is here: https://cgforward.org/2026/03/07/debt-is-a-tool-why-comparing-village-debt-to-personal-debt-is-misleading/.

The real question isn’t whether we should have debt. It’s whether we are using it thoughtfully. Are we prioritizing the right projects? Are we aligning borrowing with long-term plans? Are we balancing today’s needs with tomorrow’s obligations? These are the discussions that already take place through the budget process, capital planning, and ongoing financial oversight.

A new committee would have no independent authority to reduce debt. It cannot set the levy. It cannot amend the budget. It cannot override board decisions. Any new structure should be evaluated not just on intent, but on whether it adds new decision-making value beyond what the current process already provides.

What’s missing isn’t another committee structure. It’s ensuring the existing tools are fully understood and effectively used by the people sitting at the board table. Those tools already exist: budget review, audit oversight, and public engagement.

What Both Ideas Share

“Growth pays for growth” and “We need a debt reduction committee” are not the same argument. But they share the same architecture: a real concern, attached to a proposed solution that doesn’t quite fit the problem.

That gap, between a legitimate worry and a workable answer, is where local governance actually happens. It’s the space that requires trustees to understand levy limits, capital planning, impact fee law, debt ratios, and service cost dynamics simultaneously. Not perfectly. But well enough to ask the right questions, recognize the tradeoffs, and make decisions that hold up over time.

Cottage Grove’s fiscal challenges are real. They deserve more than a bumper sticker and more than a new committee. They deserve people at the table who have done the reading.

It’s also worth saying what we’re actually working toward. Smart growth isn’t just about adding rooftops. It’s about what development actually brings to the community. A brew pub. A sports complex. A neighborhood where new residents want to put down roots. Growth, when done with intention, isn’t just expansion. It’s enrichment.

When you hear a simple answer to a complex problem, the right response isn’t skepticism of the answer. It’s curiosity about whether the person giving it understands the question.

I want to start with a simple disclaimer: I am not a municipal finance expert. I do not have the extensive credentials or graduate-level training associated with those titles. I do not work in public finance, bond markets, or government auditing. But I was interested in learning more about how the Village of Cottage Grove’s finances are actually evaluated, because I think many of us hear words like “debt,” “bond rating,” or “audit” without always knowing what they mean in practice.

The more I looked into it, the more I came away with two impressions. First, the Village already has multiple credible financial review processes in place, which help maintain a healthy portfolio and accreditation. Second, any conversation about creating a “Debt Reduction Task Force” should begin with an honest understanding of those existing safeguards. I also went into this with a specific question in mind: whether creating a “Debt Reduction Task Force” would add meaningful value beyond the systems already in place.

What I found is that Cottage Grove’s finances are not evaluated through just one lens. There are multiple layers working together: Village staff, public partners, and consultants prepare the budget and financial statements; an independent outside auditor reviews those statements annually; a municipal advisor helps structure and manage debt issuance; credit rating agencies evaluate the Village’s ability to repay; and Wisconsin law sets legal limits on general obligation debt. Taken together, these layers form a system of professional, independent oversight. Village finances are not evaluated informally or casually. They are reviewed by auditors, guided by licensed financial advisors, tested in public credit markets, and constrained by state law. That context matters, especially in a public conversation that sometimes treats financial decisions as if they are made without serious scrutiny. 

One thing I wanted to better understand was the Village’s S&P rating. In the official statement for Cottage Grove’s 2025A General Obligation Promissory Notes, the Village is listed with an S&P Global Ratings grade of AA with a Stable Outlook. At a basic level, a credit rating is an independent opinion about the Village’s credit quality. In ordinary terms, it is one signal to investors about how strong the Village appears as a borrower. The “AA” category is considered very strong, even if it is not the very highest tier. For residents, that matters because stronger credit typically leads to better borrowing terms and lower interest costs than a weaker rating would receive. A Stable Outlook suggests that, at the time of issuance, the rating agency did not see a near-term risk of downgrade. A rating is not a guarantee, and it does not mean every borrowing decision is automatically wise. But it is a meaningful external assessment of financial strength and one that directly affects taxpayers.

I also spent time looking into Ehlers and Associates, Inc., the municipal advisor for the Village. Ehlers helps public-sector clients with debt planning, structuring bond issuances, managing repayment schedules, running competitive bond sales processes, and ensuring regulatory compliance. This is highly specialized work. Most residents, and frankly most elected officials, are not experts in municipal bond structuring, arbitrage compliance, or disclosure rules. A municipal advisor brings that level of expertise. Under MSRB Rule G-42, municipal advisors are also subject to a fiduciary duty to their public-sector clients, including duties of care, loyalty, and conflict disclosure. That does not make any advisor beyond question. The Village Board and staff still need to understand the advice they receive and make sound decisions. But it does mean that debt issuance is not being done casually, it is being guided by professionals operating under regulatory standards. The benefit is expertise. The risk is that complex financial decisions can become less accessible to the public, which is why transparency and clear communication remain essential.

I was also curious about the Village’s independent auditors. For the 2024 financial statements, the outside audit firm was Baker Tilly US, LLP in Madison. In its audit opinion, Baker Tilly concluded that the Village’s financial statements are fairly presented and follow generally accepted accounting principles. That matters because an independent audit confirms that the Village’s financial reporting is being presented accurately under established standards. What I found especially helpful was that the audit materials did not read like a political talking point. They included both reassurance and caution. Baker Tilly reported that it did not identify any deficiencies in internal control that it considered material weaknesses. At the same time, it identified one deficiency: account reconciliations prepared throughout the year should be performed by someone independent of the transaction processing for the account. Baker Tilly also reported no significant difficulties in completing the audit, no disagreements with management, and no misstatements identified during the audit. To me, that is actually what a credible audit process should look like. It should not be a blanket claim that everything is flawless. It should be an independent review that says where things are working and where internal controls can still improve. The pros of using an outside auditor like Baker Tilly seem pretty clear: independence, technical expertise, and the ability to compare the Village’s numbers to broader municipal benchmarks. The caution is that an audit is not the same thing as day-to-day management. Auditors review whether statements are fairly presented and whether internal control issues meet certain thresholds; they do not run Village operations. So an audit is essential, but it is not a substitute for good budgeting and good oversight throughout the year.

Another question I had was: what helps ensure that Village funds are not mismanaged or stolen? What I found is that there is not just one safeguard, but several layers of oversight. Village management is responsible for internal controls, and the annual audit provides reasonable assurance that financial statements are free of material misstatement, whether caused by fraud or error. Our Village has a finance division that includes staff with CPAs. In the 2024 audit, Baker Tilly reported no known or suspected fraud and no material weaknesses, and as noted in the audit findings regarding independent reconciliations, oversight works best when duties are separated, and records are reviewed by more than one person. At the same time, the Village operates within formal policies and legal guardrails. The 2026 adopted budget sets a target for the unrestricted general fund balance between 20% and 30% of annual operating expenditures, and the 2024 audited balance of 28.42% falls within that range. The Village is also well within its legal debt limit, with approximately $31.9 million in outstanding general obligation debt against a limit of $67.9 million, or about 47% utilization. In plain language, the Village relies on internal controls, independent audit review, financial policies, and legal constraints to reduce risk, maintain stability, and identify areas for improvement.

At the same time, I understand why some residents may still have concerns. Government finances can feel complex, and when decisions involve long-term debt, it is reasonable to ask questions about transparency, accountability, and long-term impact. Those concerns are valid and worth engaging with directly.

I understand why the idea of a “Debt Reduction Task Force” might sound appealing. It suggests additional oversight, more transparency, and a dedicated focus on long-term planning. But it is important to be clear about what such a group would actually do. A task force would not conduct independent audits, issue credit ratings, structure or price municipal debt, or replace legal debt limits or financial policies. Instead, it would largely review and reinterpret information that has already been analyzed by auditors, advisors, rating agencies, and Village staff. At best, it could serve as a forum for public education and discussion. However, the Village Board and Budget Committee already carry out this work through annual budget reviews, workshops, financial planning, capital prioritization, and careful decisions about when and how to use debt. At worst, it risks duplicating work and adding an additional layer of interpretation to processes already designed to provide independent, professional analysis. The Village is already subject to multiple independent layers of financial oversight. Creating a new task force would not introduce new expertise; it would replicate work already being done by licensed professionals and regulated institutions, which could result in misalignment of procedures and risk our bond rating and debt issuance. 

After looking into all of this, my takeaway is fairly straightforward. Residents should absolutely keep asking questions about the Village’s finances, and have multiple opportunities through the budget process to do so. There are budget feedback forms, public involvement meetings, transparency modules, and public comment opportunities available for residents to share their input. Public engagement is healthy and necessary. But it is equally important to recognize what already exists. Cottage Grove’s finances are not evaluated through informal debate. They are evaluated through a structured system that includes independent auditors, professional financial advisors, credit market assessments, and legal constraints. The question is not whether oversight exists. It clearly does. The question is whether creating an additional layer of review would improve decision-making or simply duplicate work already being done by qualified professionals, thereby introducing risk. Before adding new structures, it makes sense to fully understand the ones already in place.

Sources:
Village of Cottage Grove, 2024 Financial Statements
https://www.vi.cottagegrove.wi.gov/DocumentCenter/View/3703/2024-Financial-Statements

Village of Cottage Grove, 2026 Village Board Adopted Budget
https://www.vi.cottagegrove.wi.gov/DocumentCenter/View/4008/2026-Village-Board-Adopted-Budget

Village of Cottage Grove, Village Board Agenda – May 19, 2025
https://www.vi.cottagegrove.wi.gov/AgendaCenter/ViewFile/Agenda/_05192025-2192

Village of Cottage Grove / Edward Jones, Official Statement – General Obligation Promissory Notes, Series 2025A
https://www.edwardjones.com/sites/default/files/acquiadam/2025-05/WI-Cottage-Grove-POS.pdf

S&P Global Ratings, Cottage Grove 2025A Rating Information
https://disclosure.spglobal.com/ratings/en/regulatory/instrument-details/sectorCode/PUBFIN/entityId/15609/issueId/1844931

Ehlers, Debt Issuance & Management
https://www.ehlers-inc.com/services/debt-issuance-management/

Ehlers, Company Website
https://www.ehlers-inc.com/

Municipal Securities Rulemaking Board, Rule G-42: Duties of Non-Solicitor Municipal Advisors
https://www.msrb.org/Rules-and-Interpretations/MSRB-Rules/General/Rule-G-42

One of the slogans in this election is “Growth Pays for Growth.” It is catchy. It sounds practical. And at first glance, it suggests a clear principle: new development should not leave existing residents holding the bag for new infrastructure.

New development should pay its fair share of infrastructure costs, and it does! Development in Cottage Grove does pay its way. It contributes upfront through utility, building, and park fees, and continues to contribute each year through property taxes that support public safety, schools, and the overall vitality of our community. Ongoing tax collection also pays for debt service and capital borrowing for facility projects.

The HeyDay development provides a good example. The project consists of 114 townhome rental units and fully complies with the approved Comprehensive Plan. No changes to the plan were required, and the project is actually less dense than the maximum density allowed. The developer entered contract in 2020, received all necessary approvals, and met every condition required by the Village.

As part of the project, the developer funded and constructed several community improvements, including:

• Construction of a public road (Fundamental Way)
• Bike and pedestrian connections along County Road BB and Buss Road to improve school access
• Intersection and roadway improvements
• Park development fees that funded Shady Grove Park in the neighborhood across the street

This approximately $40 million private investment includes private utilities and roadways (that the Village does not need public works to serve). This single development is projected to generate about $900,000 annually in property tax revenue, supporting public services and public safety. To put that into perspective, it would take roughly 70–80 single-family homes to generate a similar tax base, and those homes would also require the Village to maintain the associated infrastructure long-term

The Village uses impact fees to assign certain capital costs to new development. Cottage Grove’s draft impact-fee ordinance states that the fees are used for a developer’s proportional share of capital costs made necessary by land development, and that they are paid when a building permit is issued. The Village is not starting from zero. It already has a policy framework to ensure growth contributes.

Village materials also show that impact fees are tied to the Capital Improvement Plan and updated as the community grows. Projects likely to occur in the next three to five years are typically included in the needs assessment. That is exactly what responsible local government should be doing: planning ahead, matching fees to actual capital needs, and revisiting assumptions as the Village changes.

Growth also supports the Village in another way: it expands the tax base. The Village’s 2025 budget packet reports that net new construction in 2024 was 4.36 percent, one of the highest rates in Dane County. The same budget document notes that net new construction is critical under Wisconsin’s levy-limit system. In plain English, growth can help create fiscal capacity.

Between 2023 and 2025, building permits were issued for 122 single-family homes and 195 multi-family units. New housing creates demand for services but also adds value to the tax base. Growth is not just a cost. It is also part of how a community builds long-term fiscal strength.

At the same time, Village staff are clear that growth increases operating costs, especially in public safety. That is the part slogans usually skip. Growth is not free. But it is also inaccurate to pretend that growth contributes nothing and that existing residents pay everything. The reality is more serious and more complicated than a bumper-sticker phrase.

Cottage Grove also uses tax incremental financing as another development tool. The Village explains that TIF can fund infrastructure and that the increased property-tax collections generated by new development are used to pay debt associated with those project costs. The Village’s own budget materials state that TIF districts typically bear major development or planning costs. Again, the point is the same: growth already helps pay for growth.

So what is the actual responsibility of the Village Board? It is not to rely on slogans. It is to make sure the system works. That means following the Comprehensive Plan. It means phasing development so roads, utilities, and public safety keep pace. It means using impact fees carefully. It means using TIF only where it makes sense. It means being honest that growth can strengthen the tax base while also increasing service demands. And it means making decisions based on facts, not just campaign and political messaging.

The Village already has tools to ensure development contributes to infrastructure costs. The real responsibility of the Board is not to invent new slogans or committees, but to use the planning tools we already have effectively.

Cottage Grove works best when residents stay informed and participate. The Spring Election is approaching, and it is a good time for Cottage Grove residents to review the candidates and make a plan to vote. Local elections shape decisions that directly affect our community, from infrastructure and public services to long-term planning and growth.  The post may be updated with additional links to new information as provided by the candidates. The official Village website about elections is https://www.vi.cottagegrove.wi.gov/316/Elections.

Candidate Info

Below are the candidates who will appear on the ballot for Village Trustee, listed in ballot order with their candidate info. These are links to each candidate’s campaign information.

Candidate Interview Links

As of March 14, there are two newspaper articles that provided candidates the opportunity to answer several questions. Residents who want to learn more about the candidates can find posted candidate interviews at the following links:

Meet and Greet Opportunities

Letters to the Editor

Where to Vote in Cottage Grove

Polling places will be open on Election Day from 7:00 a.m. to 8:00 p.m.

Village residents vote at one of the following locations, depending on their ward. If you are not sure which ward you live in, you can look it up online before heading to the polls. https://myvote.wi.gov/en-us/Find-My-Polling-Place

Cottage Grove Village Hall
221 E. Cottage Grove Road
Wards 4, 6, 8, and 9

Granite Ridge School
4500 Buss Road
Wards 1, 2, 3, 5, 7, and 10

Absentee and Early Voting

Absentee voting is available for any voter who prefers to vote early. Residents can vote absentee in person at Village Hall during the clerk’s office hours in the weeks leading up to the election. You can also request that an absentee ballot be mailed to you. Ballots returned by mail or in person must be received by the clerk by 8:00 p.m. on Election Day.

Absentee ballots requested for the upcoming Spring Election were mailed today, March 10. There is still time to request an absentee ballot to be mailed to you. Go to the MyVote website (www.myvote.wi.gov) to request your ballot today.

Reminders:

• The United States Postal Service recommends putting your completed ballot in the mail at least 5-7 days before the election. Ballots received after 8 p.m. on Election Day will NOT be counted, regardless of the envelope’s postmark.
  
• The drop box for absentee ballots is open and located outside the main door to Village Hall. It will be open until 7 p.m. on April 7.
  
• The last day to request an absentee ballot to be mailed is April 2 at 5 p.m.

Check Your Ballot

If you want to see exactly what will be on your ballot or confirm your voting location, the easiest place to start is MyVote Wisconsin.

The site allows voters to check registration status, view a sample ballot, request an absentee ballot, and find their polling place.

Visit myvote.wi.gov to look up your information.

Make a Plan to Vote

Spring elections often have lower turnout than fall elections, but they are just as important for the future of our community. Taking a few minutes to learn about the candidates and making a plan to vote helps ensure your voice is part of the conversation.

In Wisconsin, local government is organized into several types of municipalities. The most common are 1. towns, 2. villages, and 3. cities. While these terms may sound similar and are often used interchangeably in our conversations, they represent different forms of government with very different responsibilities, authority, and approaches to growth. Understanding the difference helps us all better understand how decisions and policies are made and how services are provided in our communities.

The Purpose of Our Local Governments

At a basic level, local governments exist to provide essential services and to protect the health, safety, and welfare of residents. Wisconsin law allows communities to organize towns, villages, or cities depending on their population, development patterns, and governance needs. However, communities do not automatically move from a town to a village and then to a city as they grow or shrink. Each form of government is a separate legal structure. Becoming a village or city requires a formal incorporation process that must meet specific state requirements and be approved through a legal review and, in many cases, a vote of the residents. (Wisconsin Statutes Chapters 60–66; League of Wisconsin Municipalities).

The biggest difference comes down to incorporation and authority. Villages and cities are incorporated municipalities with broader powers. Towns are unincorporated and have more limited authority under state law. The Village of Cottage Grove separated from the Town of Cottage and was incorporated in 1924 by resident vote (see picture). 

Each form of government has a different level of authority and responsibility, and I outline them, with sources, below:

1 – Town Government in Wisconsin

A town is the most basic form of local government in Wisconsin. Towns were established by the Wisconsin Constitution to provide fundamental services in predominantly rural areas (Wisconsin Towns Association). The mission of the town government is to provide core local services while allowing residents direct participation in decisions through town meetings. Towns operate with a strong tradition of local democracy, where residents can vote directly on issues such as budgets in annual meetings and tax levies (University of Wisconsin Extension Local Government Center). 

Towns must provide several basic services required by state law. These include:

• Running local elections
• Assessing and collecting property taxes
• Maintaining town roads and highways
• Ensuring fire protection and emergency medical services 
• Operating a recycling program

Many towns may also choose to provide additional services such as zoning, garbage collection, or law enforcement, but these are optional and often can be coordinated with counties or nearby municipalities. 

Because towns are unincorporated, they have only the powers specifically granted by state statutes. This means their authority to regulate development, utilities, or services is much more limited. Some towns vote to adopt “village powers,” which allows them to regulate land use or public safety more broadly while still remaining a town (Wisconsin Statutes §60.22). 

2 – Village Government in Wisconsin 

A village is an incorporated municipality with more authority and responsibility than a town. Villages are governed by a village board made up of trustees and a village president (Wisconsin Statutes Chapter 61). The mission of village government is also broader than that of a town. Villages are responsible for managing community infrastructure, regulating development, and supporting economic activity while protecting public health and safety.

Under Wisconsin law, a village board has authority over village property, finances, streets, and public services, and may enact ordinances to support the welfare and good order of the community (Wisconsin Statutes §61.34). And, because villages are incorporated, they generally provide a wider range of services. These commonly include:

• Police protection
• Fire and emergency services
• Public works such as streets and snow removal
• Water and sewer utilities
• Land use planning and zoning
• Building inspection and development regulation
• Parks and recreation programs

Villages typically operate more infrastructure than towns, including municipal water and sewer systems. This allows them to support higher population densities and commercial/industrial development.

3 – Cities in Wisconsin

Cities operate very similarly to villages, but usually serve larger populations (not always) and have slightly different governing structures. Cities are typically led by a mayor and a common council. In terms of services and authority, cities and villages function in much the same way. Both are incorporated municipalities with broad “home rule” authority, meaning they can make many local policy decisions without direct state approval, as long as they remain within state law (Wisconsin Constitution, Article XI; League of Wisconsin Municipalities). 

Growth, Development, and Annexation in Wisconsin Communities

Growth is one of the biggest differences between towns and incorporated municipalities.

Because towns generally do not operate municipal utilities such as water and sewer, development in towns is often limited to lower-density housing that relies on private wells and septic systems. Large commercial developments or higher-density housing are much harder to support without that infrastructure.

Villages and cities are structured differently. They are designed to support growth. Their authority to regulate land use, build infrastructure, and provide utilities allows them to support residential neighborhoods, commercial centers, and industrial development . Municipal water, sewer, streets, and public safety services make larger-scale development possible.

As communities grow, land may move from a town into a village or city through a regulated process called annexation. This is where land that is currently in a town becomes part of a neighboring municipality (Wisconsin Statutes §66.0217). In Wisconsin, annexation is typically initiated by property owners or businesses who petition to be incorporated into the village or city. Property owners often seek annexation because municipal utilities allow them to develop their property more intensively or increase its long-term value.

Annexation is not simply one community taking land from another. Wisconsin law requires that the land be contiguous to the municipality and that property owners formally request the change through a petition process. In many cases, businesses choose annexation because access to water, sewer, roads, and emergency services makes development possible or more attractive.

Property values are often higher within villages and cities because of the services and infrastructure they provide. Access to utilities, nearby businesses, maintained roads, parks, and public safety services can increase the usability and long-term value of land. For some property owners, annexation provides the opportunity to access those services and participate in a growing community.

For this reason, annexation in Wisconsin is usually driven by private property owners seeking services or development opportunities rather than municipalities simply expanding their borders.

Why the Type of Municipality Matters

The differences between towns, villages, and cities affect everything from taxes to infrastructure to economic development. Towns tend to have lower taxes and fewer services, while villages and cities provide more services but require more infrastructure and funding. Each structure serves a different purpose in Wisconsin’s system of local government. Towns support rural communities and provide essential services. Villages and cities support population centers, economic growth, and municipal infrastructure.

Together, they form the framework that allows Wisconsin communities to grow and govern themselves in ways that fit their size, needs, and character.

Sources:

Wisconsin Towns Association. Town Government in Wisconsin.

University of Wisconsin–Madison Extension Local Government Center. Towns in Wisconsin.

Wisconsin Statutes Chapter 60. Town Powers and Duties.

Wisconsin Statutes Chapter 61. Village Government.

Wisconsin Statutes §61.34. Powers of the Village Board.

Wisconsin Statutes §66.0217. Annexation by Unanimous Approval.

Wisconsin Constitution, Article XI. Home Rule for Cities and Villages.

League of Wisconsin Municipalities. Municipal Government Overview.

Wisconsin Department of Transportation. Local Government Structure Overview.

During local elections, it’s common to hear concerns about “village debt” and to equate it with impacts on property taxes.  I have often heard people say that our government should be run like a business or that municipal budgeting should be compared to personal finances. Treating budgeting and financing, including debt management, as the same as government, business, and personal planning is a mistake and can lead to poor future planning decisions. Our Village Trustees must lead and act with an understanding of the differences and realities of government financing and debt, and be able to explain why they differ. Municipal debt is not the same as personal or business debt.  If we treat them as identical, we end up drawing the wrong conclusions.

Households and businesses often plan around relatively short horizons, years or decades tied to income, retirement, or market cycles. When a household takes on debt, there’s a ticking clock. An adult has a working career that eventually ends. Debt must be paid off or significantly reduced before retirement, or you risk serious financial trouble.

A municipality is fundamentally different. A village does not retire. Governments manage infrastructure and services that last 30 to a 100 years. Roads, water systems, libraries, and public safety facilities are designed to serve multiple generations. Financing them strictly from current revenue can actually be unfair to future users who benefit but didn’t help pay. It has ongoing authority to levy taxes and collect fees. Because it exists indefinitely, it can responsibly spread the cost of long-lived infrastructure over decades. In public finance, this is called intergenerational equity: people who benefit from an asset over time help pay for it. If Cottage Grove builds a road that will last 30 years, it makes sense for residents over that period to share in paying for it, not just today’s homeowners, but tomorrow’s new property owners.

Businesses use loans and business credit cards to supplement cash flow and fund payroll, inventory, and other short-term expenses. In personal finance, loans are taken out to purchase homes, automobiles, and educational expenses. Credit cards are used for home goods and services. In business and personal financial management, if a loan or debt is not paid off, the risk is that the asset will default and lead to bankruptcy.

Municipalities have guardrails that significantly reduce the risk of loan defaults. Wisconsin municipalities operate under a state law that caps General Obligation (GO) debt at 5% of equalized property value.[1] This creates a hard statutory ceiling. Debt levels are publicly reported and audited annually. These guardrails are built into state law — something households and businesses lack.

According to the Village of Cottage Grove’s 2024 audited financial statements:[2] the equalized property value is $1,358,209,100, setting the legal GO debt limit at $67,910,455. The Village’s outstanding debt is $31,936,707, which is 47%.  These figures place Cottage Grove in the middle range of comparable growth-oriented Dane County communities based on Wisconsin Department of Revenue municipal debt reports.[3]

Municipal debt typically finances long-lived capital assets such as roads and street reconstruction, water and sewer infrastructure, stormwater systems, fire stations and equipment, public safety vehicles, as well as parks and community facilities. These assets often have useful lives of 20 to 50 years. Borrowing spreads costs over the period in which residents benefit. However, municipal debt can not be used to fund services and operations.

Instead of focusing solely on the total dollar amount, public finance professionals evaluate debt as a percentage of equalized value, the percentage of the statutory debt limit used, debt service as a share of the operating budget, fund balance reserves, credit ratings, and alignment with long-term capital planning. The Wisconsin Legislative Fiscal Bureau notes that municipal finance comparisons require context, as accounting categories and funding mechanisms differ across communities [4].  This is a lot for the Village Trustees and Administrative staff to consider as they plan for our community’s long-term future.

Municipal debt becomes concerning when it approaches the 5% statutory cap, debt service crowds out essential services, funds are borrowed for operating expenses instead of capital assets, reserves are depleted, or credit ratings decline. Simply having debt, however, is not, by itself, evidence of fiscal mismanagement or a financial crisis.

Municipal debt is far more comparable to a long-term mortgage on infrastructure than to a credit card balance. Based on audited 2024 data, Cottage Grove is currently utilizing about half of its allowable GO debt capacity under Wisconsin law. The meaningful discussion for residents is not whether debt exists, but whether borrowing is strategic, sustainable, and aligned with long-term community goals. Debt is a tool. The question is whether we are using it wisely to build a strong future for Cottage Grove.

Personal credit ratings, like a FICO score, are automated scores based on an individual’s borrowing and repayment behavior, such as payment history, credit utilization, length of credit history, and recent applications. Municipal credit ratings are forward-looking opinions about a local government’s ability and willingness to repay public debt, based on factors like the strength of the tax base, financial reserves, budget performance, debt burden, management practices, and legal revenue-raising authority [5]. Our Village has an S&P Global Ratings credit rating of AA on its general obligation borrowing, which is considered high-grade and reflects a strong capacity to meet financial commitments; in practical terms, that “AA” level is viewed as a solid, favorable rating that typically supports lower borrowing costs and signals sound financial management compared with lower-rated municipalities. This rating demonstrates our Village is not in a debt crisis. Long-term debt can be used to spread the cost of growth out over years to account for new developments and businesses. 

Public finance tries to answer a key question: Who benefits, and who should pay? Sometimes the right answer is current taxpayers, sometimes it’s future users through debt, sometimes it’s new development through fees or a combination thereof. When those distinctions are ignored, communities often end up with two common problems:

• Deferred maintenance and infrastructure gaps, or
• Short-term tax decisions that create higher long-term costs.

Government debt has been a historic tool used since the need to fund the American Revolution. Alexander Hamilton saw government debt as a powerful tool rather than a fatal weakness, as long as it was managed responsibly. In his view, public credit could help a young nation stabilize its finances, build trust at home and abroad, and create the conditions for economic growth. He argued that honoring debts in full and on time would establish the United States’ reputation, making it easier to borrow in emergencies and attracting private investment. At the same time, he did not endorse unlimited borrowing; he emphasized regular revenue (especially through taxes and tariffs) and careful administration so that debt strengthened the nation’s capacity rather than undermining it.

During the upcoming April 7th election, please consider how the Village Trustee candidates’ understanding of how to use municipal debt responsibility to plan the future of our Village.  

— Stefan Wahe, Village Resident

Sources

Please note that I used ChatGPT to assist in researching this topic and identifying reputable sources for information.  I verified that the references were accurate and the writing is my own work.

[1] Wisconsin Statutes §67.03 – Municipal Borrowing; 5% debt limit based on equalized value.

[2] Village of Cottage Grove, Wisconsin. 2024 Annual Financial Statements (Audited), Management Discussion & Analysis and Debt Note Disclosures.

[3] Wisconsin Department of Revenue. 2024 Municipal Debt Margin Report (Statewide Data).

[4] Wisconsin Legislative Fiscal Bureau. Informational Paper on Municipal and County Finance, 2025 Edition.[5] S&P Global, Understanding Credit Ratings

At the December 1, 2025 Cottage Grove Village Board meeting, trustees discussed a proposed pre-annexation agreement related to the Neumann Homes development. The proposal involves a single-family residential subdivision being considered off Myer Road on the east side of the Village. You can watch the board meeting here: https://www.youtube.com/watch?v=I2QoWYzxvyQ.

Because there has been significant public reaction to that discussion (particularly to comments made by several trustees) it’s worth slowing the conversation down and clarifying what was said, what stage the process is in, and why some of the framing matters.

This post is not about whether the project should ultimately be approved. It is about how early-stage proposals are evaluated and how public statements by elected officials shape that evaluation.

What Was (and Was Not) Being Decided

The item before the Board was a pre-annexation agreement. This step does not:

• Annex land into the Village
• Approve zoning
• Approve a plat or site plan
• Authorize construction

Instead, a pre-annexation agreement acknowledges that a proposal is potentially consistent with the Village’s comp plan and allows the developer to proceed through the formal review process, which includes:

• A neighborhood meeting
• Traffic impact analysis
• Plan Commission hearings
• Zoning decisions
• Plat approval by the Village Board

Each of those steps includes additional public input and discretionary votes.

Statements from the Meeting Record

Several statements from the meeting are relevant to understanding the later discussion.

Earlier in the meeting (approximately 33:45), Trustee Severson stated: “I have no interest in this.”

Later, during discussion of the pre-annexation agreement (approximately 1:32:30), Trustee Severson raised concerns about:

• Developer conduct
• Whether the process was appropriate
• Whether the proposal was being rushed

Comments from Trustee Doll during the same discussion raise a related but distinct issue: expectations about when solutions must be fully resolved.

During the pre-annexation discussion, Trustee Doll expressed concern that significant questions remained unanswered and suggested hesitation in allowing the proposal to move forward without more complete resolution of issues such as infrastructure, impacts, and layout. The underlying position appeared to be that a proposal should present a near-complete or “right” solution before advancing.

That perspective is understandable. Wanting clarity before proceeding is a reasonable instinct, particularly when long-term consequences are involved. But at the same time, it highlights a tension inherent in the planning process:

• Pre-annexation is designed to determine whether a proposal is eligible to proceed, not whether it is final.
• Many of the details being raised are explicitly intended to be refined later through required steps such as traffic impact analysis, neighborhood meetings, Plan Commission review, zoning hearings, and plat approval.

Expecting a fully optimized solution at the outset effectively collapses multiple stages of review into one, which can unintentionally raise the bar beyond what the process itself requires. When that happens, early engagement (something often encouraged of developers) can be penalized rather than rewarded.

This distinction matters for public understanding. A proposal can be both:

• Incomplete, and
• Appropriate to advance to the next stage

Those are not contradictory positions under Wisconsin planning law or Village practice.

Why This Context Matters

It is entirely appropriate for a trustee to oppose a proposal on policy grounds. Trustees are elected to exercise judgment, and disagreement is a normal part of governance.

At the same time, it is helpful for residents to distinguish between two different types of objections:

1. Substantive opposition
   • “I do not support this development.”
   • “I don’t believe this is the right project or location.”
2. Procedural objections
   • “The process is flawed.”
   • “The developer is acting improperly.”
   • “This is being rushed or forced through.”

When a trustee states early in the meeting that they have no interest in a proposal, that provides important context for later procedural critiques. It does not invalidate those critiques, but it does help the public understand whether concerns are rooted in process deficiencies or in opposition to the project itself.

The Developer’s Role at This Stage

Based on the meeting record, the developer:

• Appeared before the Board earlier than required
• Engaged prior to filing a formal annexation petition
• Offered to fund and dedicate infrastructure at their own expense
• Described outreach to adjacent property owners
• Did not request zoning, plat approval, or annexation at this meeting

Residents may still oppose the project (and many clearly do) but the record reflects an early, discretionary review rather than a final or binding decision.

Why Process Framing Matters

Public trust depends on clarity about what stage a decision is in and what remains undecided. When early-stage discussions are framed as irreversible or procedurally improper, residents may reasonably believe that decisions are being made behind closed doors, even when the formal process has not yet begun.

Clear distinctions between policy disagreement and process critique help residents engage more effectively and hold officials accountable without misunderstanding the scope of what is actually before the Board.

Questions for the Community

Rather than arguing conclusions, this moment raises broader questions worth considering:

• How should trustees communicate opposition while still engaging in early-stage review?
• What level of detail should be expected at pre-annexation versus later stages?
• How can residents better track where discretion exists (and where it does not) in the development process?

These questions matter regardless of where one stands on this specific proposal.