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DEBT OVERVIEW
Existing Referendum-Approved Debt• Average annual payments are approximately
$4.7 million through 2027
• District completed a refinancing in 2014 that reduced debt payments by over $1 million
• Additional refinancing to be approved by the Board in March that would reduce payments by an additional $1-$1.7 million
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Legal Debt Capacity
LEGAL DEBT CAPACITY FORMULA:
2014 Equalized Valuation (TID IN) = $4,842,335,068
Legal Debt Capacity (10% of EV) = $484,233,507
Outstanding General Obligation Debt = $52,005,000
Remaining Legal Debt Capacity = $432,228,507
Outstanding G.O. Debt =
$52,005,000
Remaining Legal Debt Capacity =
$432,228,507
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Credit Rating• Moody’s “Aa2” rating• Credit Strengths– Large and diverse tax base– Strong local economy, as well
as proximity to Milwaukee metropolitan area
– Strong financial management– Positive enrollment trends– Manageable fixed costs,
including debt service– Below average debt burden
Aaa
Aa1
Aa2
Aa3
A1
A2
Moody’s Rating Categories
# of WI School Districtsin Rating Category
A3
5
11
55
58
51
6
0
Baa1 1
Source: Moody’s Investors Service, July 2014
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Referendum Financing Variables• Project Scope• Timing of Project Implementation• Phasing of Financing Plan– 5 Years from referendum approval to borrow the money
• Analyze Historical Trends & Make Projections– Interest Rates– State Aids– Equalized Valuation– Existing Debt Payback
• Calculate Projected Mill Rate Impact
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Interest Rate Trend-- draft --
PRELIMINARY Referendum Mill Rate Impacts
SAMPLE REFERENDUM FINANCING SCENARIOS
| | |BORROWING AMOUNT $30,000,000 | $40,000,000 | $50,000,000 | $60,000,000
| | |MAXIMUM MILL RATE IMPACT (WOULD OCCUR IN 2017) $0.32 | $0.43 | $0.54 | $0.66
(Per $1,000 valuation) | | || | |
TAX IMPACT ON PROPERTY WITH FAIR MARKET VALUE: | | || | |
$100,000 Home | | |Maximum Annual Impact $32.00 | $43.00 | $54.00 | $66.00
| | |$150,000 Home | | |
Maximum Annual Impact $48.00 | $64.50 | $81.00 | $99.00| | |
$200,000 Home | | |Maximum Annual Impact $64.00 | $86.00 | $108.00 | $132.00
| | |$300,000 Home | | |
Maximum Annual Impact $96.00 | $129.00 | $162.00 | $198.00
Assumptions:20-year borrowing at an average interest rate of 4.50%No State Aid impact due to "hold harmless" (15% maximum aid loss already projected to occur)2014 Equalized Valuation with 1% growth in 2015 and 2% thereafter.
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Total Debt Service with Sample Referendum Scenarios
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Debt Service Comparison-- draft --
Debt Service as a % of Total Operating Expenses Debt Service per Student
Average Debt Service per
Student for all of WI school districts
is $957OASD is currently
at $948
District’s Debt Service anticipated to increase due to recently passed or scheduled referendum.
OASD Referendum HistoryReferenda Type Vote Date Amount RESULTS PURPOSE
Issue Debt 7/12/1994 $1,500,000 PassedIssue Debt 11/8/1994 $1,400,000 Passed General maintenance
Issue Debt 5/23/1995 $12,800,000 Passed High school & middle school additions
NR - 2002 11/7/2000 $500,000 Failed Operating expenses
Issue Debt 11/7/2000 $44,500,000 FailedAcquire land; construct 2 new elementary schools and 1 MS; add auditorium at HS; technology, furnishings, equipment
RR - 2002 11/7/2000 $875,000 Failed Recurring purposes
NR - 2011 2/20/2001 $875,000 Failed Non-recurring purposes
Issue Debt 2/20/2001 $9,430,000 Failed New elementary school
Issue Debt 2/20/2001 $22,550,000 Failed New middle school
Issue Debt 2/20/2001 $4,630,000 Failed Auditorium
Issue Debt 2/20/2001 $9,950,000 Passed New elementary school
NR - 2007 9/10/2002 $875,000 FailedMaintain or reduce class sizes, replace outdated computers, maintain district facilities
Issue Debt 9/10/2002 $23,500,000 Failed Construct and equip new middle school
Issue Debt 11/7/2006 $49,600,000 Passed
Two 5-8 schools, addition of auditorium and gymnasium to existing high school and refinancing outstanding obligations for high school electrical improvements and facility maintenance
4 referendum attempts successful since 1994
