Supervisors approve final borrowing for jail project
By Steve Van Kooten
Crawford County Supervisors approved the final round of borrowing for the new jail and law enforcement center project at a special meeting on March 10.
The third phase included $4 million in general obligation notes. Previously, the supervisors approved $13 million in general obligation notes in the summer of 2024 and $18 million a year ago. The county broke ground on the project in August 2024 and expects it to be completed later this year.
The first set of bonds was awarded to W. Baird & Company, a financial investment firm based in Milwaukee, while the second round of notes was awarded to TD Securities based in New York. Both submitted bids for the most recent round of notes, but BOK Financial Securities out of Milwaukee, had the lowest bid. Other bids came from as far away as New York and Birmingham, Ala.
According to Carol Wirth, president of Wisconsin Public Finance Professionals (WPFP), the most recent bidding process had a lot of interest, with seven firms making bids to the county on March 9.
WPFP acts as a financial advisor to the county, handling the coordination of legal documents, advertising the sale of the bonds and navigating the bond rating process with Moody’s.
The interest rate is set at approximately 3.7 percent, which is lower than the first two rounds (both near 3.9 percent). WPFP projected a slightly higher interest rate — around 3.78 percent.
“That rate also includes the underwriter paying all expenses associated with that issuance,” said Wirth.
Wirth said the lower-than-expected rate means $150,000 less in interest costs. Compared to estimations made at the beginning of the project, the county has saved more than $6 million due to the lower rates offered by underwriters.
The sale will generate approximately $187,000 in reoffering premium. Those funds will be allocated to reducing the county’s debt.
“That debt-service money is going to be used to offset your debt service tax levy for the budget year in 2027,” said Wirth.
The first two rounds of borrowing generated approximately $474,000 and $475,000 in premium for the county, respectively.
The total cost of the project is still projected at $35 million, with more than $31 million allocated to construction costs. By the time the county finishes paying off the project, it’s estimated the principal and interest cost will be around $50 million.
Along with Kraemer Brothers, the construction management firm, the county set a $35 million guaranteed maximum price for the jail and LEC remodel, meaning the county cannot borrow more money for the project without passing a resolution giving the authority to do so.
Prior to the borrowing, county representatives went through a ratings call with Moody’s. Crawford County maintained an Aa3 rating, which is good news considering the increase in debt the county has taken on in the past two years. An Aa3 is generally regarded as a high-quality rating and indicates a low credit risk for underwriters.
“Moody’s is very impressed with the county’s financial picture, and in that interview, you are a candidate for an upgrade,” said Wirth. “That would be quite an accomplishment to issue $35 million and have your rating improve... They look at the economy and other factors besides debt issuance.”
March 26 is the closing date. The county is supposed to receive the $4 million in borrowing and $187,000 in reoffering premium in their designated account on that day.
The money will be deposited with Community First Bank with a 12-month fixed interest rate of 3.37 percent. Peoples State Bank also submitted an offer to the county.
