| By Big Radio News Staff |
The School District of Janesville sheds some light on its referendum financing plan.
Chief Financial Officer Dan McCrea told the school board’s Finance/Buildings and Grounds committee Tuesday afternoon that the district intends to conduct two bond sales next month to borrow the $151.8 million authorized by voters last November.
The borrowing will be done in two batches: $12.5 million to fund project planning and design work and then $139.3 million to cover construction costs.
McCrea says the district wants to issue those bonds now so it doesn’t risk having to borrow at a higher interest rate in the future.
Attorney Tom Griggs is counseling the school district on referendum financing.
He told the committee the district plans to invest the money between when it’s borrowed and when it’s spent, a move that will generate tax-exempt income.
He says the amount of income could be limited by tighter federal tax rules on bond funding that is held for more than three years.
