SPSD saving taxpayers money by prepaying debt

Cash defeasances were the topic of technical discussion at the Sauk Prairie School Board meeting last week. Baird & Co. gave a presentation on the ways the district has been managed its debt and saving taxpayers money. Cash defeasance is where the district levies—taxes—for additional funds, and uses those funds to pay down existing debt. The idea is to use the additional tax levy as a way of balancing out and smoothing the mill rate. Municipalities and school districts in general seek to keep the mill rate from varying too much year to year. The district has taken these funds for defeasements in 2019, 2020, 2022 and prepaid the debt on the most tranche of funds borrowed. The district has saved $1,899,212 in referendum debt interest costs. Superintendent Jeff Wright explained a second reason for the defeasements—by doing so the district is able to retain borrowing capacity for future projects. “[By doing this], a Middle School/Grand Avenue loan could be done in 2029 instead of 2040,” said Wright. Math teacher Mary Walz introduced several of her students, who went to Badger Girls State. Those students told the board about their positive experiences there.