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Amery board votes to apply for $5 million state trust fund loan to refinance short-term debt
Summary
The Amery School District board unanimously approved submitting an application to the Board of Commissioners of Public Lands (BCPL) to consolidate four short-term notes into a single $5 million loan at a fixed 6.5% interest rate over up to 20 years; board members were told the loan is refinancing existing debt and not a new referendum tax.
The Amery School District board voted unanimously to apply for a $5 million state trust fund loan through the Board of Commissioners of Public Lands (BCPL) to refinance existing short-term borrowing.
At a special meeting, the board heard a presentation from Dr. Durfler outlining four current short-term notes that together total $5 million: a $3 million revolving line of credit from Old National Bank entered April 23, 2025 (6.75%); a $1 million tax-revenue anticipation note (TRAN) from Pillar Bank entered Oct. 21, 2025 (5.5%); a $500,000 TRAN from Pillar Bank entered Oct. 31, 2025 (5.95%); and a $500,000 revolving line of credit from Wisconsin Credit Union entered Nov. 17, 2025 (4.97%). Dr. Durfler said the resolution before the board would consolidate those obligations into one $5 million BCPL loan at a fixed 6.5% interest rate with a term not to exceed 20 years and an option to defease (prepay) the loan without penalty.
The resolution, read into the record, cites Wisconsin statutory authority for state trust fund loans, including Wis. Stat. §§ 24.61, 24.66 and 67.05, and authorizes the district to borrow from the trust funds to refund outstanding revenue obligations. It also states that the district shall levy a direct, irrepealable annual tax sufficient to pay principal and interest, language Dr. Durfler said simply reflects that the loan payments will be paid from budgeted revenues rather than establishing a new referendum tax.
A board member asked whether consolidating the debt would be treated as "new debt" requiring a referendum. Dr. Durfler said he had confirmed with BCPL representative Richard Schneider, Baird Financial, and the Thomas Grigsby law firm that, for the amount and structure proposed, a petition or referendum was not required and that the transaction is a refinancing of existing obligations rather than new indebtedness. "I get that question every single time one of these happens. It's not a new tax," Dr. Durfler said, recounting Schneider's explanation.
Board members pressed on cost and timing. Dr. Durfler confirmed the loan's 6.5% fixed rate and provided an illustration that borrowing $5 million at 6.5% over 20 years would yield roughly $3.9 million in interest in total, or about $199,549 per year on a simple calculation; he said the district plans to consider defeasance and earlier repayment if budget reductions free up funds.
The board approved a motion to submit the loan application and the accompanying resolution by roll call: Larry Whitecheck, Gwen Dato, Sharlonna, Steve Ostrow and April Ziemer each voted in favor. Dr. Durfler was directed to forward the certified resolution, application and required district maps to BCPL; he noted BCPL's committee reviews occur on scheduled committee dates and final approval rests with BCPL.
What happens next: the application and resolution will be sent to BCPL for committee review and potential approval; the vote at the meeting authorized only submission of the application, not disbursement of funds. If BCPL approves, the district would execute certificates of indebtedness as required.
Why it matters: the district is seeking to replace repeated short-term borrowing with a long-term refinancing to smooth cash flow and reduce recurring borrowing pressure amid multi-year funding shortfalls discussed by administrators.
