River Ridge to hold $2.3 million referendum for athletic fields project

By Ted Pennekamp

The River Ridge Board of Education voted unanimously at a special meeting Dec. 4 to approve of a referendum not to exceed $2.3 million to go toward the athletic fields project which is still under construction at the Patch Grove site.

The referendum will be held on the primary election date of Feb. 18, 2020. If the referendum passes, it is projected that the $2.3 million in general obligation bonds will be paid off in 19 years. It is not yet known what the interest rate will be.

Using a relatively “conservative” estimate of an interest rate of 3.75 percent, the $2.3 million paid off over 19 years will have an average annual tax impact of 49 cents per $1,000 of equalized value. This would be the equivalent of a yearly average of $49 for the owner of a home valued at $100,000. The actual interest rate could be lower or higher than 3.75 percent.

With an interest rate of 3.75 percent, the $2.3 million loan would amount to $3.258 million when paid off.

Carol Wirth, the president of Wisconsin Public Finance Professionals of Brookfield, Wis., told the board that the funds from the referendum would be restricted and can only be used to:

1. Payoff 2019 State Trust Fund Loans ($1.7 million) issued to provide interim financing for the project.

2. Reimburse school district funds spent on the project.

3. Pay costs yet to be incurred by the district for the project.

The cost of the athletic fields project (fields and equipment) so far comes to $2.197 million. The project is not yet fully completed and minimal costs will still be required to finish the project.

If the referendum passes, the district would have three years from the day it receives the $2.3 million to pay off the costs of the project as outlined above.

During a March 25 special meeting, the school board voted to borrow $700,000 toward the project. The district has the authority to borrow up to $1 million, but the board wanted to have $300,000 available in case of an emergency.

The school district also held a press conference on April 8 in an effort to be as transparent as possible and to get all the information out to the people regarding the athletic fields project.

The district later borrowed $1 million for the project after a 30-day period went by without the public submitting a petition against the borrowing. This increased the amount borrowed for the project to $1.7 million.

The borrowing of the $1.7 million allowed the project to move forward immediately. It was noted at the time that a referendum would be held in either February or April of 2020 to refinance the project, which would allow the district to get more state aid, and therefore, fewer taxpayer dollars would be needed. 

In addition, Board President Ken Nies said in April that the district already had $500,000 available for the project, including $165,000 for lighting which was approved in the 2016 referendum to have all grades move to the Patch Grove site. The $165,000 plus $335,000 from health insurance premium holidays comes to $500,000.

During the special meeting on Dec. 4, Nies noted that the $335,000 in health insurance premium holidays are restricted funds within the general fund and would have had to be spent on something by July 1, 2019. So, the general fund would have been reduced by $335,000 regardless of what it was spent on.

Nies also said part of the $2.3 million from a passed referendum on Feb. 18, 2020, could possibly go toward addressing parking concerns because of the athletic fields project.

The athletic fields project and information about the upcoming referendum are items on the agenda for the regular school board meeting scheduled for Dec. 11.