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Pewaukee board approves $9 million promissory note sale to start referendum work; district keeps flexibility for 2025 phase
Summary
The Pewaukee School District board authorized the sale of $9 million in general obligation promissory notes as the initial phase of referendum-funded capital projects, accepting BOK Financial’s winning bid and affirming a Aa2 credit rating; staff said borrowing costs are lower than referendum projections.
The Pewaukee School District board on Monday approved a resolution awarding the sale of $9,000,000 in general obligation promissory notes to begin financing capital projects approved by the April 2, 2024 referendum. Financial advisers reported seven bids and recommended the low bid from BOK Financial at 3.718 percent.
District advisers told the board the notes are being issued in two phases to match the expected project draw schedule, manage arbitrage rules and preserve flexibility; the second phase — currently projected at about $19 million — is tentatively scheduled for 2025. Moody’s affirmed the district’s Aa2 rating, which advisers said helped attract competitive bids.
Why it matters: the initial borrowing will provide immediate cash flow for early project costs while preserving the district’s ability to issue the remainder when construction requires it. Advisors estimated the financing costs will be roughly $7.6 million below what was projected during the referendum vote because of lower interest rates and a faster payoff schedule.
Board action and vote: The board took a roll-call vote as required by bond counsel and approved the resolution. District counsel and advisers explained the bid is conditioned on board approval; if the board had declined, the transaction would have been halted and any good-faith deposit returned.
What’s next: settlement is scheduled for July 29 and the first interest payment is projected for March 1, 2025; the first levy for debt service will appear in the 2024–25 school levy. Staff said they will continue to refine the draw schedule and the structure of the second phase before returning with additional details.
Documents and sources: advisers provided a bid tabulation and the Moody’s rating report to the board packet; board members discussed how enrollment trends, fund balance levels and local tax base affect credit ratings.
