Brown Deer — Voters pverwhelmingly passed a referendum allowing the Brown Deer School District to refinance and restructure its debt.
The referendum, included on Tuesday's primary election ballot, passed with the approval of 70.7 percent of Brown Deer voters with 1,518 votes in support and 630 votes against the referendum.
The referendum question asked voters to issue $4 million in general obligation bonds to refinance three existing loans. Emily Koczela, the district's business manager, has said the referendum would allow the district to refinance and restructure its debt in a way that would save the district between $300,000 and $500,000.
One of the district's debts has 12 years remaining, and the interest varies per year between 5.2 percent and 5.7 percent. Koczela has said current interest rates are much more competitive, based on the low rates she received on borrowing from the 2011 referendum.
The other two debts are State Trust Fund loans. One of these loans totals $750,000, and the other is paid down to $480,000.
As part of the referendum, those State Trust Fund loans would be switched from the non-referendum debt service fund to the referendum-approved debt service fund. Those loans reside in a fund that must be paid off with the general tax levy, which is within the state revenue cap. By moving the loans to a new fund, the district would be able to pay it off with non-levy funds, which frees up money that can be used in classrooms.
By moving the State Trust Fund loans to a new fund, the district would also have the potential to pay off those loans ahead of their scheduled dates.
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
- Armed robbery avoided with a push at Brown Deer Walmart
- Brown Deer closes on sale of former American TV and Appliance building
- Woman robbed at gunpoint at Brown Deer bank
- Brown Deer municipal buildings need improvements
- Brown Deer rolls out the rain barrels with public art event (1)
- North Shore Police Reports: June 25, 2015
- Zi's Sports Pub takes over former Prime Time Pub
- North Shore Police Reports: June 18, 2015
- North Shore Police Reports: June 11, 2015
- Brown Deer School Board allows Algonquin School property to be marketed for sale