Members of the Shawano County Executive Committee on Aug. 19 approved what’s called a “heads-up” resolution alerting the bond market that the county intends to borrow $29 million for the first phase of a $121 million building project.
The full county board is expected to follow suit Aug. 26.
“You’re not borrowing money at this time,” said Carol Wirth, president and owner of Wisconsin Public Finance Professionals LLC. “You are simply establishing the fact that you are going to the bond market and provide funds for phase 1 of the financing.”
Two other phases totaling $92 million are expected to continue in 2027 and 2028.
The $121 million project includes constructing and equipping a new courthouse, a secure connection to the existing jail, a vehicle sally port, jail intake and support areas and a new inmate housing unit, as well as acquiring land and related furnishings, fixtures and equipment.
At the Sept. 23 county board meeting, supervisors are expected to pass a resolution to officially borrow the funds. At that time, they will have final interest rates related to the borrowing.
Each phase of borrowing will be paid back over 20 years, the maximum allowed by the state.
“It basically starts with paying back the principal in 2027,” Wirth said of the first phase of borrowing. “Then, there’s a couple of years that there is no principal. That is intentional, because we’re providing room for phase 2 and phase 3 to come in at that time. That’s to make sure that we stay on target with the projections that were made back in February. Then we continue to pay that principal through the year 2046.”
Green County borrowed $35 million in August at an interest rate of 4.13%, Wirth said.
“The rates could continue to change … until we go into the market in September,” she said.
In February, she estimated a tax base growth of 8% and an interest rate for borrowing at 4.25%. Those figures would result in an increase in the tax rate of 45 cents per $1,000 of equalized value.
As of Aug. 18, the growth was 8.75% and interest rate was 4.13%. Those figures would result in a tax rate increase of 44 cents per $1,000.
kpasson@newmedia-wi.com
