Oconto Falls School Board OK’s short-term borrowing

The Oconto Falls School Board authorized about $4.1 million in short-term borrowing during its regular monthly meeting on Sept. 14.

The school district routinely borrows money to help with cash flow during the lag between the beginning of the fiscal year, July 1, and the actual receipt of property tax dollars and state school aids.

For example, a check from the state arrived in early September to cover some of the aid for the 2019-20 academic year, which ended June 30, finance director Kim Sinclair said.

The district received two bids to provide the loan, one from Bankers Bank at 1.0% interest and net interest of $18,714.22, and the other from Oppenheimer at 1.25% and net interest of $28,384.53.

“We would have liked to receive more than two bids; the good news is this is an outstanding rate,” Superintendent Dean Hess said, also noting the $10,000 savings with the lower bid. Last year’s short-term borrowing of $4.7 million carried a 2.0% rate and net interest of more than $67,000.

The board approved the Banker’s Bank bid with a unanimous vote.