Historically low borrowing rates have resulted in an interest savings of more than $78.3 million, according to a report from Sun Prairie Area School District (SPASD) Director of Business & Finance Phil Frei.
Frei told members of the Sun Prairie School Board during their April 12 meeting that the borrowing approved by the board at the Feb. 22 meeting have now been completed.
On April 2, 2019, the voters of the SPASD approved a $164 million capital referendum to:
• Build Sun Prairie West High School;
• Renovate Ashley Field into the newly-constructed Bank of Sun Prairie Stadium at Ashley Field to serve Sun Prairie East and West high schools;
• Renovate the current Cardinal Heights building to serve as a third middle school (known as Central Heights Middle School), provide a new home for Prairie Phoenix Academy, and create a district professional learning center; and
• Other minor secondary remodeling projects.
The borrowing approval on Feb. 22 marked the last phase of the borrowing process, according to Frei.
“The district was able to borrow at historically low interest rates,” Frei wrote. “Over the course of the secondary borrowing period, the district will avoid a projected $78,395,297 more in interest than what was projected at the time of the referendum.”
Frei had projected $144 million in interest costs, a figure that is now about $65 million thanks to the savings (watch the screencast with the referendum pricing with the online version of this article at sunprairiestar.com). The $78 million in savings will be reflected in the next 20 years of borrowing, Frei said.
“That is great news for taxpayers,” Frei told the board during the three and one-half hour Zoom meeting, which was broadcast live on KSUN Sun Prairie Cable Access TV.
Sun Prairie School Board President Steve Schroeder said that needs to get out to the public, calling it “great news for taxpayers” in the district.
No action by the board was needed; Frei’s report was for informational purposes only.