Dorchester

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With $150,000 from a one-year loan being dedicated towards street projects in 2025, the $235,000 between the two items is part of a 10year repayment plan the village will be entering into.

With the termination of two TIDs, the final accounting found that there was an excess balance of tax increment collected, which means that TIDs 1 and 2 took in more revenue than what was spent. While not uncommon for the closure of TIDs, there is a portion of that balance that is allocated to each acting jurisdiction (Colby School District, Clark County and Northcentral Technical College) which the village holds onto and pays back when the TID terminates.

However, over the decades-long lifespans of TIDs 1 and 2, this money was likely viewed as surplus and was used to supplement the general fund budget for various projects over the years.

The village is now required to pay back the other jurisdictions, but with the money collected already spent, the board had to decide how best to do that. One option would be to pay the jurisdictions with cash on hand, but that was deemed as potentially dangerous to the future financial health of the village. The other option was to look at borrowing options, which the board opted for.

While payments for the loan will not begin until 2026, the board was advised to bridge the gap year with a potential project and then put some funds aside to begin the repayment process, which will lessen the spike in taxes when the loan payments begin.

While the one-year loan for 2025 offset the money set aside for planned street repairs and the TID payback, other cuts had to be made elsewhere to balance the budget. The most significant cut came from public works capital outlays, which went from $42,000 in 2024 to $14,000 in 2025. An adjustment to the police contract with Clark County and a lower bill from Central Fire & EMS also led to public safety expenses dropping from $231,000 to $220,000 in 2025.

While the 2025 budget included the usual 3 percent raises for all village staff, the general fund expenditures decreased overall, going from $147,109 in 2024 to $145,527 in 2025 due to cuts across the board.