The School Board on Monday voted to borrow $1.4 million of the anticipated referendum tax levy of $3.4 million to take care of what the superintended called “some cash flow issues.”
“Our bond counsel said we could borrow up to $2 million,” Superintendent Richard Sopko said.
Peoples Bank provided the best interest rate for the loan at 0.97 percent. The loan will be paid back in two years with installments of $350,000 plus interest, Sopko said. The first payment will be on June 30, 2014.
The board also held a public hearing Monday on the proposed 2014 budget of $47.18 million.
Sopko presented information on property tax levies that will help fund the seven budget categories.
The advertised 2014 budget includes the following:
• General fund, $25.38 million with a $0 per $100 of assessed value.
• Debt service fund, $4.6 million with a property tax levy of $4.39 million and a tax rate of 31.36 cents per $100 assessed value.
• Exempt debt service fund, $6.28 million with a required tax levy of $5.94 million and a tax rate of 42.42 cents per $100 of assessed value.
• Exempt retirement/severance bond debt service fund, $641,354 with a required property tax levy of $878,673 and a property tax rate of 6.28 cents per $100 of assessed value.
• Capital projects fund, $3 million with a required tax levy of $3.87 million and a property tax rate of 27.60 cents per $100 of assessed value.
• Transportation operating fund, $2.2 million with a property tax levy of $2 million and a tax rate of 15.01 cents per $100 of assessed value.
• Bus replacement fund, $1.59 million with a required property tax levy of $1.6 million and a tax rate of 11.21 cents per $100 of assessed value.
The total property tax levy needed for all fund requests is about $22.19 million with a total property tax rate of about $1.54 per $100 of assessed value.
The board approved the bus replacement fund and capital projects fund based on separate resolutions.
No action was taken by the School Board on five of the seven funds as per state law.
http://www.nwitimes.com/news/local/lake/munster/munster-school-board-oks-borrowing-to-shore-up-budget/article_114fcd17-defd-5f38-9e92-db06c1442f87.html
