The Milton School Board at Monday’s meeting authorized temporary borrowing in an amount not to exceed $2.4 million.
The school district will again take part in pooled borrowing with other districts through PMA, said Director of Business Services Carey Bradley in a Sept. 14 memo to the superintendent and school board. The short-term note will be for 1 year.
In addition, Bradley said, “We also plan to invite bids from our local banks for a line of credit. The line of credit will provide up to $1.9 million.” A resolution for the line of credit will be brought to the board after approval of the tax levy at the annual meeting."
Why the need for cash flow borrowing?
“Every year, we review the schedule of estimated cash inflows and outflows based on the budget plan. Since our expenditures generally tend to be constant and our revenues more sporadic, we often need to temporarily borrow money to meet our obligations,” Bradley wrote.