
Some common questions for communities like Cottage Grove include.
- Why are there potholes on my road?
- When will this intersection be upgraded?
- When will the park get a new playset?
- When are we going to replace that aging vehicle?
- What about a new fire truck?
- When will we invest in the Emergency Services Building?
These are all legitimate questions. But there is a bigger question behind every one of them:
How do we plan for all of these investments responsibly?
That is where long-term capital planning comes in.
We can’t plan for long-term projects one budget year at a time
Each year, the Village establishes a timeline for developing the following year’s budget. That process includes meetings, financial reviews, department requests, public input, and ultimately adoption of the annual budget and tax levy. But major investments require us to look much further ahead.
For the 2027 budget process, the Village Board considered a Capital Prioritization Plan covering 2027 through 2036. Those priorities help inform the Village’s Financial Management Plan, which currently projects finances through 2031.
The process begins well before the annual budget is adopted. Board members completed a capital prioritization survey in June. The Board reviewed those priorities in July. Ehlers, the Village’s financial advisor, incorporated the direction into the Financial Management Plan. The Budget Review Committee reviewed the plan in August, and the Village Board considered it in September.
This process helps turn a long list of community needs and potential projects into a financial roadmap: What needs to happen first? What can wait? What will it cost? And how can we responsibly pay for it?
Big investments require long-term planning
A road does not simply get rebuilt when someone decides it needs attention. A new or renovated public building does not suddenly appear in the budget the year construction begins. Road projects, emergency vehicles, parks, buildings, and major intersection improvements can require years of advance work. Sometimes the first dollars spent are for engineering, architecture, environmental studies, surveying, or design. Those expenses may occur years before construction begins.
That means the Village needs to anticipate what is coming and understand how one major investment affects its ability to make other investments.
That is the purpose of capital planning.
What about debt?
Debt is often an important part of the conversation, and understandably so. It is also one of the tools municipalities use to finance major capital investments.
If the Village makes a multimillion-dollar investment in a facility that will serve the community for decades, the entire cost does not necessarily have to be collected through property taxes in a single year. Borrowing can spread the cost over time, allowing residents who benefit from that investment in future years to contribute toward its repayment.
That does not mean debt is unlimited, or that every project should be financed through borrowing. It means debt has to be considered as part of a larger financial strategy. Cottage Grove’s Financial Management Plan does that by projecting the Village’s levy and tax rate over multiple years, measuring the plan against financial guidelines, examining debt obligations, and providing a framework for preparing the annual budget.
For example, the current plan includes an estimated $6.82 million renovation and addition to the Emergency Services Building. Under current agreements, the Village and Town portions are each estimated at $3.41 million. The plan also considers anticipated grant funding and existing funds that could reduce future borrowing.
That is long-term financial planning in practice.
Why does this planning matter?
A good capital plan provides a roadmap.
It gives staff direction from the elected Village Board. It gives residents visibility into investments being considered. It helps the Village anticipate major expenses rather than react to them after they arrive. And it allows borrowing, debt service, taxes and other financial obligations to be considered together rather than one project at a time.
Cottage Grove currently holds an AA credit rating with a Stable outlook. The Village’s financial materials identify strong reserves, consistent budget performance and a sophisticated financial management framework among its credit strengths. They also identify the Village’s growing debt burden associated with infrastructure and facility investments as a challenge.
Those two things can be true at the same time.
Cottage Grove has real infrastructure needs and aging assets. However, financial resources are limited, and taxpayers ultimately pay for those investments.
Long-term planning is how we put those realities on the same page.
The plan is not the same as the final decision
This distinction is important.
Placing a project in a long-term capital plan does not guarantee that it will be built exactly as proposed—or even that it will ultimately be built at all. Projects change. Costs change. Grant opportunities emerge. New needs arise. Economic conditions change. And community priorities can change. The value of the plan is that it allows those choices to be made with an understanding of what else is coming.
Planning is not the same thing as writing a blank check. It is asking the questions before the money is spent:
- What do we need and why?
- What should come first?
- What can wait?
- What will it cost?
- How will it be paid for?
- And how will today’s decisions affect taxpayers five or ten years from now?
This is where residents come in
Those decisions should not happen in a vacuum.
If you think a road project should have a higher priority, say so. If you believe a park investment can wait, explain why. If you are concerned about debt, ask questions about the borrowing assumptions. If you think the Village is overlooking an important need, bring it forward.
And you do not have to wait until the final budget is ready to participate.
The Village is holding Budget Listening Sessions on October 1 from 11:30 a.m. to 1:00 p.m. and again from 5:30 to 7:00 p.m. Residents can also provide feedback through the Village’s 2027 Community Involvement Budget Form, which will remain available until the budget is adopted.
The Budget Review Committee is scheduled to consider the proposed budget on October 12. The Village Board’s budget workshop is scheduled for October 26, followed by the public hearing and anticipated budget adoption on November 16.
These are opportunities to learn what is being proposed, ask questions, and tell elected officials what matters to you.
You don’t need to be an expert in municipal finance to participate.
Start with the same questions residents ask every day: What does our community need? What should come first? What can wait? And what are we willing to pay for?
The Capital Improvement Plan and Financial Management Plan help put numbers and timelines behind those questions.
The community’s role is to help answer them. For more information about the process, please visit the Village Budget page and share your input by submitting the Budget Involvement Form.


