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LAUREL – The Laurel-Concord-Coleridge Public School will be securing a line of credit up to $1 million to cover the gap between tax receipts and its next bond payment.
School board members unanimously approved the line of credit from Security Bank - for up to six months - with a borrowing rate of five percent, said Superintendent Jeremy Christiansen.
The LCC School Board approved the move at its regular meeting last week to allow flexibility with its payments.
The fiscal challenge occurred due to the alignment of the school district budget (Sept. 1 to Aug. 31) and current year tax levy disbursement schedule with the largest tax draws from the Cedar County Treasurer coming during January, May and September.
The district’s next bond payment of nearly $800,000 is due at the end of the year, however, the bond fund is insufficient to make the payment by more than $300,000.
With the limited balance and prior obligations, the line of credit is needed, Christiansen said, until tax draws are sufficient. Once sufficient, the line of credit will be closed.
“Discussions between the school and our local lender provided for a range - up to and not to exceed ($1 million) - in contrast to a specific amount to allow for flexibility during the next few months,” Christiansen said.
He said the district will analyze and calculate needs for future bond payments to determine if additional funds need to be set aside to avoid this issue in the future.
At last week’s meeting, board members also reviewed the district’s audit report.
The financial and professional audit is required each year to review the district’s funds, accounting practices and processes.
Overall, the results were positive with no significant deficiencies noted, Christiansen said.
Consistent audit findings relate to the district’s limited number of personnel dedicated to accounting processes and control procedures, Christiansen said, which is common in smaller districts.
The board’s regular meeting date of the second Monday evening of each month will continue into 2025 with two exceptions. The February meeting was set for 12:30 p.m. and the August meeting will take place a day later on Tuesday, Aug. 12.
The board also recognized the service of Dustin Thompson and Sam Recob who have both served two terms. New board members Jon Graham and Garry Anderson will be sworn in at the next regular board meeting in January.
