November 6, 2012 Referendum

Statement of Board of Canvassers - Click here

Taxpayer Referendum Information

PURPOSE

  • Refinance existing General Fund debt into lower interest General Obligation (G.O.) Bonds. A referendum is required by Wisconsin State Statues to refinance in this manner.

REFERENDUM DATE

  • Tuesday, November 6, 2012 at your regular town or village polling place locations.

OLD DEBT

  • Debt Purpose: Site improvements and rebuilding of the track and field at Northwestern High School caused by wetland issues and resulting excavation.

WHY A TAX IMPACT WITH A REFINANCING?

  • Moving an annual $387,000 non-G.O. debt payment out of the Operating or General Fund budget and not reducing the Operating levy by the same amount causes the tax increase in the debt service Fund 39. Legislative initiatives have reduced the School District of Maple’s capped revenues $705,000 since the 2010-11 school year and the total Operating revenue has decreased $850,000 during the same period. Reducing the Operating levy by $387,000 would further decrease the District’s revenue limit by over $300,000 for the 2013-14 school year and beyond at a time when student technology needs, bus replacement ($95,000 each), and other operating costs are rising significantly. Any tax impact would not occur until the 2013-14 school year.

Referendum Facts

PURPOSE

  • Refinance existing debt into lower interest General Obligation Bonds.

REFERENDUM BALLOT QUESTION

  • “Shall the School District of Maple, Douglas and Bayfield Counties, Wisconsin be authorized to issue pursuant to Chapter 67 of the Wisconsin Statutes, general obligation bonds in an amount 
    not to exceed $2,165,000 for the public purpose of refinancing existing State Trust Fund Loans of the District, including interest on them?”

OLD DEBT

  • Principal Remaining - $2,281,081 of State Trust Fund Loans.
  • Current Interest Rate – 4.5%.
  • Remaining Term – 7 years ending March 15, 2019.
  • Total remaining principal and interest - $2,709,889.
  • Original Purpose -Various site work at Northwestern High School.
  • Payoff – Payment in full before March 15, 2013 by referendum approved bonds.

NEW DEBT AUTHORIZED BY REFERENDUM

  • Principal - $2,165,000
  • Interest – Projected at between .5% and 1.5%.
  • Term – 7 years ending April 1, 2019
  • Total cost from March 15, 2013 to April 1, 2019 - $2,234,248.

OTHER FACTS

  • One time principal reduction is paid for out of current budgeted funds.
  • Debt servicing is moved from General Fund 10 to Fund 39 Long Term Debt.
  • No increase in Fund 10 tax levy from this transaction.
  • No increase is allowed by statute in the revenue limit (state aid + Fund 10 tax levy) for operations.
  • Fund 39 levy increases approximately 50 cents per thousand dollars of valuation.

This is not a referendum to exceed the current revenue limit for operating costs, and does not incur new debt principal. It is a one-time refinancing into a lower cost debt structure to take advantage of declining interest rates.

Click here for Referendum Information Flyer #1 (October 10, 2012)


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Michael Hintzman,
Oct 11, 2013, 12:13 PM
Ċ
Michael Hintzman,
Oct 11, 2013, 12:14 PM
Ċ
Michael Hintzman,
Oct 11, 2013, 12:13 PM
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