Borrowing

District Earns Favorable Interest Rate

In April 2025, the first phase of borrowing for the referendum projects—$80 million in general obligation bonds—was successfully completed by the West Bend School District. The remaining $26.25 million of the approved project will likely be borrowed in 2026. Just as with a home mortgage, interest is charged on borrowings. Leading up to the referendum vote, the West Bend School District provided an estimated “total cost” of the referendum, which included potential interest paid on funds borrowed, and placed the “total cost” at $165.45 million. However, a favorable interest rate was locked in and it is projected to help taxpayers avoid nearly $8 million over the life of the loan.

This favorable interest rate was achieved through another positive development for the West Bend School District. Standards & Poor (S&P), the international financial organization, reviewed the district’s financial health prior to issuing the bonds and upgraded its credit rating from AA- to AA. This upgrade places the West Bend School District’s credit rating in the top 19 percent of school districts in Wisconsin that are rated by S&P.