Board approves $52 million bond anticipation note; Wells Fargo bid chosen

The Waunakee Community School District Board of Education voted to accept the sale of a $52,000,000 bond anticipation note and authorized the related resolution during its regular meeting. The winning bid, from Wells Fargo, priced the BAN at 3.617%.

Administration told the board the sale was run by the district’s financial advisor, PMA, and that multiple competitive bids were received today; the highest bid shown in the presentation was 3.94%. Officials said closing was targeted for April 1 so the district could preserve an additional year of borrowing flexibility. The BAN term was described as five years; administration said permanent bonds may be issued for up to 20 years under state law while BANs give a five-year interim option.

Why it matters: the BAN is part of funding authorized by a previously approved $175,000,000 referendum for the district’s Heritage, middle school, high school projects and districtwide maintenance. Administration presented a debt-service plan showing how interest proceeds from the referendum and new borrowing are expected to be used to help hold the district’s debt levy increases near a long-term target (presented as a 2.1% levy trajectory in the materials).

Board action and vote: a motion to accept the resolution authorizing issuance and sale of the $52,000,000 bond anticipation note was made and passed by roll call. Board members recorded on the roll call as voting yes were: Katie (yes), Judy (yes), Ted (yes), Jeff (yes), John (yes), and Anne Hetzel (yes). The board recorded the results on the record and staff said they would gather the required signatures that evening to complete the sale.

Details presented: administration showed the bid tabulation, the payment plan for the BAN, and an updated financial plan that reflected the sale results. Administration noted the final pricing produced about $975,000 less in interest cost than earlier estimates used in planning. Officials also explained the district’s strategy: borrow larger amounts in short-term BANs now and convert some or all into long-term bonds later if market conditions improve.

Next steps and limits: administration said the district may refinance or convert BANs to long-term bonds before the five-year maturity if market rates decline and the board decides to lock in long-term rates. The presentation and resolution referenced Wisconsin statutes in the authorizing language.

Provenance: the presentation material, bid results and the roll-call vote are all included in the meeting record. The board vote recorded on the transcript followed the presentation of the bid results and the reading of the resolution title before the roll call.