District to Borrow $2.96 Million for Expenditures

A lack of cash flow for the 2011-12 school year at has forced district administrators to take a loan for $2.96 million at one percent interest from .

District Business Manager Gail Farrell said the loan would be paid back in full by the end of August.

The loan will cost the district $29,600 in interest.

The plan was approved Monday night at the regularly scheduled board of education meeting.

Farrell said there is not enough cash flow in the fund balance to get the district through the more expensive months including months where payroll must be paid three times instead of two.

She added each month requires a different amount of cash and the district does not receive the same state aid, taxes or grants from month to month.

For example, the district does not receive state aid in September and August required three payouts for payroll.

"Basically your cash income and your cash expenses are not the same every month, so you cant budget it that way," Farrell said.