Favorable Interest Rates Lower Referendum Mill Rate Impact

4/11/17 – Taxpayers in Beaver Dam could see a lower tax impact than initially projected from the recently approved referendum. In November, district voters approved $49-million dollars for an overhaul of the high school and security improvements at all other district school buildings. As part of the borrowing process, the Beaver Dam school board last month approved the sale of $7-million in bonds payable over 20 years. Last night, the school board approved bonding totaling $31.9-million dollars. District Director of Finance Anne-Marie Woznicki says the interest rates came in lower than projected. The initial estimate was 3.35-percent but Piper Jaffray yesterday locked in an interest rate of 2.88-percent. The total interest paid over 20 years on the $49-million dollars is $21.1-million dollars. Prior to the public’s vote on the referendum, the maximum mill rate increase was estimated at $1.68-per thousand for school district property owners. When the bonding process began, that number was revised to $1.60. Now the maximum mill rate is projected at $1.52-per thousand, which includes final numbers from the first two phases of bonding and an estimate from the final $9-million dollars that will be borrowed next April. Meanwhile, officials announced last night that there is a formal groundbreaking planned at the high school on May 24.