WHEREAS, in 2005, 2006 and 2007 the village has levied funds for the retirement of utility debt, and

WHEREAS, the utilities, through impact fee collection and rates have been able to finance their own debt payments.

BE IT RESOLVED, that due to the financial uncertainty of the economy and the unknown rate of impact fee collection in the future the village board shall establish a Debt Stabilization Fund Policy as follows:

It shall be the policy of the village to retain in a segregated interest bearing account, called the Debt Stabilization Fund (DSF), in amount of money equal to the highest principal and interest payments of the General Obligation debt of the sewer and water utility on debt issued through 2006 on behalf of the utility. The DSF shall be used only in the event that a shortfall in the revenue of the sewer or water utility results in the inability of one of the utilities to raise enough revenue through non-levy sources such as utility revenues, special assessments, and impact fees to make its annual debt service payments. Action of the village board will be required to use the DSF for such payments.

When the debt issued through 2006 is paid, refunded by revenue bonds or otherwise defeased in their entirety, the village board may elect to dissolve the DSF. In the event of dissolution of the DSF, monies remaining will revert back to the general fund (from which they were originally collected) to be used by the village board to reduce capital acquisitions.

Adopted this 5^th day of November, 2007.

Elizabeth Sheedy, Village President

Attest:

Bonnie Swan, Village Clerk

Vote: Aye

Nay

Abstain

Absent