VILLAGE OF GRAFTON NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE IV - OTHER INFORMATION (cont.) F. AGREEMENTS WITH THE TOWN OF GRAFTON In 1997, the village entered into an agreement with the Town of Grafton whereby the village would incur $2,000,000 of municipal bonds to finance the construction of a new fire station. The Town agreed to share in the annual debt service payments. The debt will be shared by allocating, on an annual basis, the amount due each year from the Town to the village by determining the proportion that each municipality’s tax base for the year preceding the year in which the payment is due bears to the total property tax base of the two municipalities combined for the same year. Property located within a tax incremental financing district is to be excluded from the taxable property base figures used to calculate the proportions. In January of 2000, the Village entered into an agreement with the Town of Grafton to finance improvements to the library building owned by the Village of Grafton. The Village of Grafton and the Town of Grafton had previously entered into an agreement establishing a joint library board under Wis. Stats. 66.30 and 43.56 for the purpose of operating the library. The Village retains ownership of the Library land and building. In the event the library building is sold, the net proceeds from the sale attributable to the children’s area shall be distributed to the Village and Town according to a formula established in the agreement. 89