What's News in Pleasant Prairie, Wisconsin
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On Monday, May 2, 2011 the Pleasant Prairie Village Board authorized the issuance and sale of General Obligation Refunding Bonds for its RecPlex facility totaling nearly $7,360,000. The refunding, or refinancing, of the bonds will generate a savings for RecPlex of approximately $950,000 in interest payments over 10 years. The bonds were originally issued for the construction of RecPlex.
RecPlex is operated as an Enterprise Fund, a structure comparable to a business. Though owned by the Village of Pleasant Prairie, because it was established as an Enterprise Fund, RecPlex is financially self-supporting and is not supported by property tax dollars. RecPlex also compensates the Village for the municipal services it receives, such as water, sewer, Ballfield maintenance, and administrative support. Funding sources for RecPlex include membership fees, user fees, rental fees, and sponsorships and donations.
“The purpose for refinancing is to realize a substantial savings. This is possible, because interest rates are better now than when the funds were originally borrowed,” explained Kathy Goessl, Finance Director for Pleasant Prairie. “RecPlex will use the $950,000 in interest savings to help cover operating expenses and to replace equipment over the next 10 years. Our goal is to be as prudent as possible with every dollar.” Earlier this year Standard & Poor’s maintained the Village’s credit rating of AA. The Village’s favorable credit rating, along with current market conditions, contributed to the interest savings. The 10-year note sold at a premium, which resulted in a net interest rate of approximately 2.8%.