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District keeps double‑A‑minus rating; administrators present long‑term plan to smooth referendum levy
Summary
Administrators told the Waunakee budget committee Standard & Poor's affirmed the district’s double‑A‑minus rating and presented a debt‑service plan that uses referendum proceeds and interest earnings to limit long‑term levy growth to about 2.1% for capital debt service.
The Waunakee Community School District’s budget team told the March 5 budget committee that Standard & Poor's affirmed a double‑A‑minus rating on the district’s debt and reviewed a borrowing plan that seeks to smooth the long‑term debt service levy for the district’s November 2022 $175 million referendum projects.
Administrators said the district’s long‑term borrowing plan and use of referendum proceeds/interest earnings would keep annual debt‑service levy growth for Fund 39 (referendum capital) at an estimated long‑term rate of about 2.1%, lower than historical local levy growth, meaning new construction and growth would shoulder more of the tax impact over time. “What this story is telling us is the increase that we've created over time for the $175,000,000 is lower than the expected new growth throughout the community,” the presenter said.
Staff described $52,000,000 in borrowing being finalized and two bond anticipation notes built into the schedule; they said the district will continuously monitor market interest rates and may lock in lower rates or restructure if favorable conditions appear prior to the scheduled bond‑sale dates. The district also noted the option to apply interest earnings and referendum savings either to reduce the taxpayer burden or accelerate facility work covered by the referendum.
Committee members asked about restrictions on savings and whether interest or referendum proceeds could be shifted to address Fund 10 needs; staff said direct transfers across funds are constrained by fund rules but that operational decisions (for example, accelerating referendum‑covered maintenance projects) can free other operating dollars. Staff also emphasized communication value: the administration intends to present the plan publicly as a way to show how referendum proceeds and interest earnings reduce long‑term levy pressure.
No formal committee vote was necessary on the presentation; administrators said the borrowing results for the $52 million would be presented to the full board at the March 9 meeting.
