USDDP passes financing for capital referendum

DE PERE – The Unified School District of De Pere (USDDP) approved two resolutions granting the district permission to finance the $22 million capital referendum that district residents approved in last month’s election.

The first resolution approved issuing a bond anticipation note (BAN) this month for $15 million.

The second resolution enables the district to refinance the BAN early next year and issue the remaining $7 million of the total referendum in general obligation promissory notes.

“Issuing debt in two pieces allows the district more flexibility with its interest earnings,” USDDP Finance Director Dawn Foeller said.

It means the district will be able to put more money toward capital improvement projects than it otherwise would be able to.

The capital referendum that passed last month will fund repair and replacement of failing HVAC, electrical and plumbing systems; leaky windows, doors and walls; and make accessibility improvements in accordance with the Americans with Disabilities Act (ADA).

It doesn’t involve new construction, additions, or new buildings.

When referendums pass, entities such as school districts and municipalities usually need the money soon and can’t wait until property tax increases kick in, accumulating enough to pay for a project.

To obtain the money up front, they issue bonds, which investors buy, through an investment group or lending institution.

USDDP Public Finance Director Jordan Masnica of Baird told the board at a previous meeting that for the last 24 months, the federal funds rate has been higher than the cost of borrowing at the 20-year AAA municipal benchmark.
“That’s only happened five other times in the last 33 years,” he said.

They include five months in 2019, 21 months in 2006-07, 12 months in 2000-01, six months in 1998 and 11 months in 1997-98.

The fall 2024 capital referendum, which passed 10,103 yes votes to 5,128 no votes, added an extra $0.33 in property taxes per $100,000 of home value.

Hearing aid

In other business, attendees of school board and other meetings held in the De Pere High School community room will be able to hear better.

The board approved the purchase of audio equipment for the community room.

Board members and staff have fielded complaints from attendees about not being able to hear board members and those addressing the board with their backs to the audience.

Improvements will include ceiling speakers in the middle and back of the room and two hanging microphones at the front of the room.

The speakers will pick up the audio from the microphones.

The equipment, from Camera Corner Connecting Point, will cost $9,181.26.

District Technology Director Curt Pieschek said the upgrades would be in place by the end of January.