District outlines timeline to borrow remaining $7 million from referendum and year‑end transfers

Tom Karthauser, the district finance presenter, briefed the Mukwonago School District board on next steps for borrowing the remaining $7,000,000 authorized in the voter‑approved referendum and on several year‑end fund moves.

Karthauser said the referendum totaled $89,100,000; the district previously borrowed $82,100,000 and plans to time the remaining $7,000,000 borrowing with project cash‑flow needs. He said the administration will meet Aug. 10 with Baird to review market expectations, will present a parameters resolution on Aug. 17 that caps interest‑rate exposure, and expects to receive funds on Sept. 23 if market conditions meet the district’s limits. He explained that borrowings under $10,000,000 widen the pool of bidders to include banks and can improve terms for the district.

On investments, Karthauser reported the district has earned almost $2.4 million in interest earnings on the $82.1 million already borrowed and projects total earnings of about $4.7 million over the draw period. He also noted roughly $4,000,000 remains in Fund 73 (OPEB) and that the district froze the OPEB benefit this year so that liability will decline over time.

As a year‑end fiscal strategy, Karthauser recommended transferring $150,000 from Fund 10 into Fund 46 for earmarked capital projects, which he said helps maximize state aid and minimize the tax levy. He explained the state treats such transfers as shared costs and that the district’s reimbursement rate is approximately 42%. The board moved and approved the $150,000 transfer by voice vote.

Board members asked clarifying questions about timing and liability; Karthauser confirmed the parameters resolution would include a not‑to‑exceed interest rate and that issuance would be halted if rates exceeded that cap.

The administration said a Baird representative will attend the Aug. 10 meeting to advise on market conditions and parameters for issuance.