To ensure that the Argos Community School Board can meet obligations to pay on the corporation’s bonds, the school board members approved paperwork to obtain that funding.
Superintendent Ned Speicher explained to the members Monday night that with the delay of the property tax distribution and with only about a 30 percent draw expected on the regular distribution date in June, an application to the Indiana Bond Bank was recommended in order to meet bond obligations.
The anticipated loan amount is up to $800,000 with repayment made when the entire distribution is receipted to the school.
School Board Attorney Jim Clevenger said the paperwork is ready and was filed by the deadline date. The interest rate is fairly low, but the percentage was not discussed. Clevenger commented that other schools in the state typically use the Bond Bank for similar items until tax distributions are made available by the county.
A resolution agreement was unanimously approved to move forward with the acquisition of funds. The funds are likely to be distributed to the school on time so the corporation can avoid a default on bonds.
