School Board Awards Building Bonds

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MTT News Desk's picture
By: 
Matt Geiger

The Middleton-Cross Plains Area School Board on Monday unanimously approved a resolution awarding the sale of $59.86 million general obligation school building bonds.

Proceeds of the bonds are to fund upcoming additions and renovations at Kromrey and Glacier Creek middle schools, projects that were approved by voter referendum in November of 2012.

The winning bid came from Piper Jaffrey & Co., based out of Minneapolis. The interest rate is 3.0957 percent, which equates to $27,222,548 in net interest costs over the life of the borrowing.

The vote came three days after Moody’s Investor Services applied a glowing Aaa rating to the district for the issuance. 

Middleton-Cross Plains is one of only five districts in the state to earn the maximum rating, which Moody’s attributed to a favorable location within the greater Madison economy, a growing population and robust general fund.

The school district’s land wealth again came into play, with Moody’s noting that the district, which included 37,298 people as of the 2010 census, has a full valuation of $5.8 billion. Moody’s also took into account the fact that the district’s per capita income of $45,626 is 171 percent that of the national average. Dane County’s low unemployment rate of 4 percent also factored into the rating. 

Post sale the district will have $92 million in outstanding general obligation debt.

The interest rate suggests citizens living within Middleton-Cross Plains will see an impact on their tax bills that is extremely close to what the district suggested when it rolled out the referendum last year.

The school board followed its vote to approve with a round of applause.

“Now we will have the money to pay for these projects,” stated Tom Wohlleber, the district’s superintendent of business services.

 

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