The Sparta Area School District board approved resolutions tonight authorizing not-to-exceed $10 million general obligation promissory notes for 2025 and a similar $10 million draw for 2026 as part of the district’s planned $87 million facility project. Both measures passed by unanimous roll-call votes.

Administration said the 2025 borrowing is the second of four planned draws for the project and described the proposed borrowing as a bank‑guaranteed loan under a $10 million annual limit. "We're building them to be very flexible and able to be refinanced if we need to push it out longer," a district finance representative said. The district’s finance team and its financial advisors told the board they timed prior borrowing to capture low interest rates and estimated the district has reduced its total interest exposure by roughly $8.8 million compared with an earlier projection.

Board members asked technical questions about term length (10 vs. 20 years) and the timing of draws. Finance staff clarified that any investment earnings on bond proceeds must be used for the referendum-approved facility purposes and cannot be repurposed for operating expenses. "The interest earnings we get on that money has to go back into the project or the referendum‑approved purpose," one finance official said.

Both resolutions were approved by roll call (7–0). Administration said the financings are intended to preserve flexibility while the district completes construction documents and the contractor draw schedule.

The district did not take action to change the facility scope at tonight’s meeting; discussions focused on timing and the legal parameters for selling the notes.