Waunakee school board accepts $52 million bond anticipation note to fund referendum projects

The Waunakee Community School District board voted to accept the sale of a $52,000,000 bond anticipation note that will fund work from the district's $175,000,000 referendum, administration said.

Administration told the board the winning bid, submitted by Wells Fargo, carried an interest rate of 3.617 percent after a public sale earlier the same day. District staff and financial advisors said the timing allows an April 1 closing so the board can preserve borrowing flexibility and potentially refinance to longer-term bonds if interest rates fall.

The board heard a presentation that laid out the proposed payment plan for the note and a schedule showing how the borrowing fits into the district's long-term debt plan. Administration also described a financial plan that targets a 2.1 percent annual debt-service levy increase and uses some interest proceeds from the referendum to smooth tax impacts for existing property owners.

Board members moved and seconded a resolution authorizing the issuance and sale of the $52,000,000 bond anticipation note; the board then took a roll-call vote and approved the resolution.

The district’s presentation also noted the final sale came in roughly $975,000 lower in interest cost than a prior plan estimate. District staff said that lower-than-expected pricing improves the overall financial outlook for the referendum projects and preserves options to convert the anticipation note to longer-term bonds before the five-year limit expires.

The board asked about long-term levy impacts and administrative staff emphasized the figures apply to the district’s debt-service fund, not operational spending. Administration recommended approval of the sale and noted the related authorizing resolution cites section 67.121(e) of the Wisconsin statutes.