Mukwonago School Board Approves Early High School Debt Payoff

Plan Saves Mukwonago Taxpayers $406K

In a strategic financial move, the Mukwonago Area School District (MASD) School Board has approved a resolution to prepay the remaining debt from the 2016 Mukwonago High School (MHS) referendum project.

Mukwonago High School 2016 Referendum

In April 2016, voters in the Mukwonago Area School District approved a $49.5 million referendum aimed at renovating and expanding MHS. The initiative addressed aging infrastructure and aimed to enhance educational facilities to better serve the student population. The 2016 referendum facilitated several key improvements:

• New Auditorium: Construction of a state-of-the-art auditorium to support performing arts programs.
• Three-Court Gymnasium: Addition of a modern gymnasium to accommodate physical education and athletic events.
• STEM and Technical Education Spaces: Upgrades to science, technology, engineering, and math facilities to provide students with contemporary learning environments.
• Cafeteria and Kitchen Expansion: Enhancements to dining areas to better serve the student body.
• Library Modernization: Renovation of the library to create a more conducive space for study and research.
• Safety and Security Improvements: Implementation of measures to ensure a secure learning environment.

Mukwonago High School Debt Resolution (2025)

The MASD School Board formally adopted the resolution on April 28, 2025. As a result of choosing to prepay this outstanding debt, MASD will retire obligations earlier than originally scheduled, thereby reducing long-term liabilities. The resolution authorizes the creation of an escrow account to hold available funds, which will be used to pay off $1,395,000 of the 2029 bond maturity and the remaining balance of the 2030 maturity from the district’s 2020 bonds. This early payment will be executed on April 1, 2028, the designated redemption date. Superintendent Joe Koch stated the prepayment will save Mukwonago taxpayers approximately $406,000 in future interest expenses.

Early Debt Payoff Benefits

Koch highlighted the benefits of this decision, stating that prepaying the high school debt aligns with the district’s goal of taking “an aggressive approach to pay off the high school debt”. By reducing existing liabilities, MASD can more effectively plan for future projects, like the proposed replacement of Park View Middle School.

“This financing plan is attributed to the hard work of Tom [Karthausser] and the foresight that our Board had in 2020 to establish a repayment plan that saved taxpayers substantial interest costs and to retire the high school debt in a much shorter timeframe than the original 20 year timeline.” – Superintendent Joe Koch

This debt prepayment is entirely separate from Mukwonago Area School District’s current financial challenges, including a projected $1.4 million operating budget deficit for the 2025–2026 school year and the recently approved $89.1 million Park View Middle School referendum. Legally, the funds used to retire the 2016 high school referendum debt can’t be redirected toward the district’s operations budget or the Park View project. The reverse is also true.

Mukwonago High School Debt History

Koch also provided a summary outlining that aggressive approach to paying off the MHS debt before the original 20-year timeline.

• September 2020 – refinanced debt that carried interest rates between 3% and 4% down to 0.3% to 2.0%; removed $1.9 million in future interest costs; eliminated 2036 payment.
• May 2022 – prepaid $5.0 million in debt; removed $1.4 million in future interest costs; eliminated 2035 payment.
• May 2023 – prepaid $1.5 million in debt; removed $456,000 in future interest costs; eliminated portion of 2034 payment.
• May 2024 – prepaid $9.0 million in debt; removed $2.35 million in future interest costs; eliminated 2031, 2032, 2033, and 2034 payments and a portion of the 2030 payment.
• April 2025 – Will prepay $3.0 million in debt; remove $406,000 in future interest costs; eliminate 2030 payment and a portion of the 2029 payment.

Mukwonago School Board Resolution Discussion

Community members interested in learning more about the resolution and the district’s financial planning can access detailed information through the MASD BoardDocs portal.​