Onalaska board approves competitive sale for final $25 million of referendum bonds

The Onalaska School District Board of Education voted Dec. 9 to approve a financing plan to issue the final $25 million authorized under the district’s November 2022 referendum. The district’s municipal advisor, Michelle Wyber of PMA, recommended a competitive sale to increase transparency and reduce long-term interest cost.

Wyber told trustees that competitive sale means putting the bonds into the market at a scheduled time and selecting the underwriter delivering the lowest overall interest cost to the district. She reviewed a 20-year municipal market index cited in her presentation as a comparison point (the index was stated at 3.34%) and explained the board’s earlier phased approach locked in part of the district’s debt at favorable rates in early 2023. Wyber said the district would complete offering documents and hold a pricing/morning call, bring final sale results and a sale resolution to the Jan. 27 board meeting, and anticipated funds to be available around Feb. 18.

Trustees moved to approve the plan on a motion by Tracy, seconded by Brian. A roll-call vote recorded "yes" responses from Eric, Sean, Aaron, Tracy, Mark, Brian and Ann; the motion carried. District staff said the recommendation reflected current market conditions and a conservative planning assumption in the presentation for modeling levy and debt-service impacts.

The resolution to adopt the sale and lock final interest rates will return to the board on Jan. 27, when the district will record final pricing and any adjustments to the anticipated levy impact.