Mehlville School Districtiborrows $5 million
The Mehlville School Districtirecently borrowed $5 million to cover payroll, operating expenses and previous loans, according to information the Call obtained through a request made under the provisions of the Missouri Open Meetings and Records Law, also called the Sunshine Law.
The district previously had borrowed $3.15 million from Midwest BankCentre to meet payroll and operating expenses.
Including the $5 million loan, the district has issued tax anticipation notes totaling $8.15 million for the current school year.
The Board of Education recently voted unanimously to authorize Randy Charles, assistant superintendent for finance and the district'sichief finance officer, to issue tax anticipation notes in amounts not to exceed $6.75 million at any time.
At the same meeting on Aug. 25, the board also voted unanimously to have the school district participate in the Missouri School DistrictiAdvanced Funding Pro-gram, which provides funds to districts at little cost. However, funds from the program typicallyiare not available until Oc-tober.
In an Oct. 7 e-mail to Board of Education members and districtiadministrators, Charles wrote that the district previously had issued $3.15 million in tax anticipation notes.
"These two notes were to be repaid no later than Oct. 11, 2004. We were told to expect money from the Advance Funding Program no later than Oct. 7, 2004. Only today we were informed that the revenue would not be available until next week.
"Consequently, the district has issued another tax anticipation note in the amount of $5 million. Proceeds from this note will pay off the first two notes and provide funds to cover additional expenses — $1.85 million — through Oct. 15, 2004,'' Charles wrote, noting that repayment of the loan will be made "immediately'' upon receipt of the Advance Funding Program funds.