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Board approves $1.25 million move to prepay debt tied to capital‑referendum bonds
Summary
The Fort Atkinson Board of Education approved a resolution to move $1,250,000 to prepaid debt to defease bonds issued as part of a $22,000,000 capital referendum, a financial step staff said will honor the board's approved budget and reduce long‑term costs.
The Fort Atkinson Board of Education on May 16 approved a resolution to transfer $1,250,000 to prepaid debt to defease bonds issued as part of a prior $22,000,000 capital referendum.
Finance staff explained the timing: the district collects property taxes in three installments through the year and the final installment arrived in April, creating the first opportunity this fiscal year to move funds to match the approved budget. "When the board approved its budget last fall... this is the action or the mechanism to actually make that happen," a staff member explained.
Board members praised the work of finance staff on the transaction. One board member told the meeting, "I appreciate the work that Mr. Knitt does... this defeasement really, saves the district and the taxpayers quite a bit of money in the long term." The motion to approve the resolution "as written" was made by Missus Reynolds, seconded by Mister Loop; the board approved the motion in a roll‑call with all members voting yes.
The resolution is a lengthy legal and financial document; staff asked the board to approve it as written so the district can complete the defeasement process. The transcript records the amount moved ($1,250,000) and the linkage to the district's capital referendum (stated as $22,000,000). The board directed staff to proceed per the approved resolution; the motion carried by roll call.
