Barron County explores new $8.9M bond options for infrastructure projects

Barron County officials are exploring significant financial strategies to manage the county's debt and improve its fiscal health, as discussed in a recent board meeting. The county currently holds approximately $25.6 million in outstanding debt, with a strong capacity for additional borrowing estimated at $335 million. This capacity is particularly crucial for smaller to mid-sized communities like Barron County, which is striving to maintain a solid financial footing.

The county's bond rating stands at a commendable double-A level, indicating strong financial management and a favorable outlook for securing low-interest rates on future loans. While achieving a triple-A rating is rare, county officials believe that aiming for a double-A plus rating is within reach, contingent on factors such as local demographics and economic growth.

During the meeting, officials reviewed two potential borrowing options, including a proposed $5.93 million loan for a Sally Port project and refinancing existing debt. The first option would slightly increase the annual debt levy from about $2 million to approximately $2.66 million, raising the mill rate from 29 cents to 38 cents per $1,000 of property value. A second option, which includes an additional $3 million for HVAC improvements at the University of Wisconsin-Barron County, would further increase the annual debt levy to about $2.89 million, resulting in a mill rate of 41 cents.

For homeowners, this translates to an estimated increase of $23.89 in annual debt costs for a property valued at $250,000 under the first option, and $31.97 if the HVAC project is included. These figures are based on conservative projections, assuming no growth in the county's property values.

As Barron County navigates these financial decisions, officials emphasize the importance of maintaining a balanced budget and managing debt responsibly to ensure long-term sustainability and community development. The board is expected to finalize its borrowing strategy in early 2025, with the first payments due in 2026.