Leah Hauser, staff member for district finance, asked the board on Sept. 8 for authority to enter a short-term cash-flow borrowing arrangement of up to $2,500,000 with the City of Sparta if needed to manage payroll and benefit timing during tight months. "What I'm asking for is just for you to give me approval that if needed, I would short term borrow no more than $2,500,000 from the city of Sparta," Hauser said, describing the city's favorable short-term rate and quick processing.

Why it matters: School districts sometimes use short-term borrowing to cover timing gaps between payrolls and large revenue inflows such as tax-levy payments. Hauser said Sparta has not needed to draw on that arrangement for nearly a decade but that it remains prudent to have authorization available.

Board action: Board member Miss Lopez moved to recommend approval of the short-term borrowing resolution to the full board; Mister Wells seconded. The board conducted a roll-call vote and the yes responses recorded were: Mr. Wells; Mister Gonkey; Miss Behrens; Mister Burns Gilbert; Doctor Burnett; and Miss Lopez. The clerk announced: "Motion moves to the full board, 6 0 1 absent." The action forwards a resolution to the full board for formal approval.

Details of the arrangement: Hauser said the city can lend on short notice at a competitive rate (approximately 0.75% below the published daily rate at the district’s bank), the borrowing would be short-term (often only a few weeks), and the maximum the administration requested authority for is $2.5 million. She said the funds would be repaid as levy and other revenues arrive.

Implementation and next steps: The board referred the resolution to the full board for formal approval at an upcoming meeting; administration will prepare the formal resolution and supporting documents for board review.

Ending: The recommendation passed to the full board 6–0 with one member absent; administration will present a formal resolution for the full-board vote.