Planning begins on new Oconto Falls middle school

Now that taxpayers’ approval has been secured, the Oconto Falls School District has set in motion a plan to build and open a new middle school by August 2025.

After a larger referendum question failed in April, a $37.6 million capital referendum, with a new middle school as a centerpiece, was approved by 58.7% of district voters on Nov. 8. The final tally was 3,168-2,231.

The new school will replace Washington Middle School, a building with some areas that date to 1917 and 1957. The referendum question included $35.5 million to demolish WMS and build a middle school along County Road I. The other $2.1 million is to create more secure entrances and roof replacement or repair at the other district school buildings.

During the Nov. 14 school board meeting, Superintendent Dean Hess said a special meeting will be held Dec. 5 for the district’s financial advisers to brief the board on the details of a planned municipal bond issue to fund the construction.

District accountant Kim Sinclair outlined a plan to obtain a short-term “bond anticipation note” in advance of closing on the actual bonds on March 1. The first of 20 annual payments would then come due on March 1, 2024.

With interest rates rising, it needs to act fairly quickly, Sinclair said. Representatives of Robert W. Baird and Co. Inc. and PMA Financial Network will be on hand at the Dec. 5 meeting.

“All this is going to happen really fast to get that bond anticipation note in calendar year 2022 and get our credit rating done,” Sinclair said. The bond rating, due in January, is key to getting the lowest interest rate possible.

Currently interest rates are a little above 4%, and the consultants estimate that by the time the bonds are ready to be bid, the rates will rise to 4.65% to 4.7%, Sinclair said.

That is still within the parameters of the original plan, which estimated interest rates could be as high as 5%, Hess said.

“Obviously we want to thank our communities for their support,” Hess said as he introduced the plan. “We’re incredibly grateful for that community support. We know that not everybody voted in favor of the question on the ballot, but regardless of the decision, we appreciate the engagement process and the conversations that we had, and how this will positively impact the future of our schools.”

Hess estimated the next six to eight months will be a planning process before ground can be broken. The goal is to open the new middle school for the 2025-26 school year, he said.