The South Putnam School Board voted 5-0 Wednesday to allow administrators to take out a $2.8 million temporary loan to help resolve "cash flow issues."
The district will use the money as an advance on its December property tax draw, since the school usually begins to run out of cash to pay its bills as the year nears its end, said South Putnam Superintendent Bruce Bernhardt.
This is a common practice for school districts in the area because they aren't big enough to keep cash on hand in between their two property tax payouts -- one in June and one in December. These issues are exacerbated by frequent delays from the state, as well. Also, the loan will be paid back in full when the district gets its tax money, he added.
The $2.8 million loan, which the district will take out with Old National Bank, carries an interest rate of 3.999 percent, though administrators will draw on it on only an as-needed basis and likely won't use the entire amount, Berhardt said.
The school board also unanimously voted to allow all of its employees to pay into a district-approved annuity program. Previously, only employees who worked 20 hours or more had access to it, Bernhardt said.
The board also voted to add more than 100 pieces of old equipment, mostly used computers and peripherals, to its surplus inventory.
The South Putnam School Board regularly meets at 7 p.m. on the third Monday of each month at Central Elementary. The meetings are open to the public.