The Department of Public Instruction has notified the District that it is authorized to sell $5,120,000 in interest-free
or low interest bonds through a federal stimulus program called Qualified School Construction Bonds. This represents 45% of the $11.38 million building addition project. These special bonds will save the District's taxpayers more than $3,000,000 in reduced interest over the seventeen year repayment period, according to Lisa Voisin, Public Finance Director at Robert W. Baird & Company.
The District had originally applied for authorization to sell Qualified School Construction Bonds in June 2009 when the first round of the government program was announced, however, the District was denied because, at that time, the project was deemed not “shovel-ready.” This simply meant that the building project had not yet been approved by the residents.
On November 3rd, however, voters approved the building addition by a vote of 231 to 219. The District reapplied explaining not only about the successful referendum, but detailing how the project would meet the four major objectives. Primary classrooms would be wired with electrical and network outlets to accommodate Smartboards, LCD projectors, and computers, thus enabling the use of technological tools in primary classrooms and meeting the Technology objective. The proposed building addition was designed to house four-year-old kindergarten through second grade so the project met the Early Childhood objective. The project plan required the use of geothermal heating and cooling, a “green” source of energy, meeting the Green and Healthful Schools objective. And finally, the blueprints specified more toilet facilities for our youngest pupils, thus meeting the Safe and Healthful Schools objective.
Qualified Wisconsin school districts received 33% of their requested funding in the first round last year, however, districts are receiving 45%, this year in the second round. Board President Tom Steiner points out that the Qualified School Construction Bonds “will reduce the Fund 39 levy by an average of $150,000 each year for twenty years, quite a considerable savings to the taxpayer.” The wait appears to be worth it!
*Whether the District pays no interest or low interest on Qualified School Construction Bonds is determined by the tax credit rate on the day of the bond sale.
