Port Washington‑Saukville board approves parameters to sell up to $49.4 million in notes, authorizes $10 million debt redemption

PORT WASHINGTON, Wis. — The Port Washington‑Saukville School District Board of Education on May 19 approved parameters to issue a general obligation promissory note not to exceed $49,400,000 and separately authorized using $10,000,000 of referendum savings to redeem certain outstanding school improvement bonds.

The actions allow the district to borrow for capital projects approved by voters in the district’s recent referendum and to pay down prior debt, measures the board’s finance advisers and district staff said will reduce long‑term interest expense.

District business manager Mel (role title per transcript: business/finance lead) told the board the resolution sets a maximum interest rate of 5.25% while giving the district flexibility to time the sale. “We cannot exceed 5.25%. But this does allow the school district flexibility to read the market and go day by day,” Mel said. The board’s packet and discussion made clear the borrowing is for capital projects identified in the referendum and not for ongoing operating expenses such as salaries or benefits. “So legally, this money can be spent on what we ask the community. So specifically for capital projects,” Mel said.

Board members pressed staff on timing and scope. A board member asked about a typographical discrepancy in the resolution text showing $59,400,000; staff clarified the current bond pull is for $49,400,000 and a separate future pull will cover the additional $10,000,000 referenced in the total referendum question. Mel said the district plans a second issuance later to spread repayment over more years and potentially lower borrowing costs: the board discussed structuring the two pulls to cover a roughly 21‑year repayment schedule.

The board approved the parameters resolution by roll call vote. A separate resolution authorizing the redemption of certain general obligation school improvement bonds dated May 27, 2015 also passed after staff explained that using $10 million in referendum savings for a lump‑sum payoff will reduce future interest costs. Mel said the $10 million “can only be used to pay down this debt only,” and cannot be reallocated to operating costs.

Actions taken

- Motion to approve Resolution 5/19/25 (parenthetical 1), establishing parameters for the sale (not to exceed $49,400,000) of a general obligation promissory note — outcome: approved by roll call. - Motion to approve Resolution 5/19/25 (parenthetical 2), authorizing redemption of certain general obligation school improvement bonds dated 05/27/2015 using $10,000,000 in referendum savings — outcome: approved by roll call.

Discussion vs. decision

Discussion: Board members asked for clarification on legal limits for referendum proceeds (capital vs. operating), the interest rate cap in the parameters, and why the district is choosing a larger first pull now so funds can be invested. Staff explained state law separates capital and operating referendums and repeated that referendum proceeds cannot fund recurring salaries or benefits.

Direction: The board authorized staff to proceed with issuance within the approved parameters and to return with further details for the second bond pull.

Decision: Both resolutions were approved by roll call.

Speakers