State aid shift means more borrowing for school district
School planning to issue aid anticipation certificates of $17.5 million
Forest Lake School District 831 is making plans to borrow money to cover cash flow shortages due to the state of Minnesota’s delay of state aid payments to school districts.
The aid shifts are a result of the legislative budget-balancing process.
Larry Martini, director of business services, told the school board on Thursday, May 31 that the district will need to borrow $17.5 million this summer to cover cash flow purposes. That compares to $15 million that was borrowed during 2011-2012 to cover cash flow.
The existing loan will be repaid, Martini said.
As part of the plan, the school district will participate in the Springsted Aid Anticipation Pool Series 2012. Determination of the specific interest rate for the borrowing will be known in August.
The formal bond resolution will be up for school board approval on Thursday, June 28 which will serve as the board’s July meeting.