Board approves $6 million transfer to capital projects fund and authorizes interim bond counsel

The Northern Lebanon School District Board of Directors voted unanimously to transfer $6,000,000 from the districts assigned general fund balance to the capital projects fund, amending an earlier motion that had proposed a $9,300,000 transfer.

Board members debated the size and timing of the transfer after administration explained construction timing, hidden asbestos abatement costs and the need to make vendor payments while bond proceeds are scheduled. Administration discussed alternatives including taking a smaller transfer and using a short-term loan or seeking additional bonding later.

Leanne, a district finance/administration staff member, summarized the timing pressures: "The 6,000,000 will get me through because I have to pay January, February, March, and possibly some of the Aprils until that money is actually there and available for me." Finance and construction staff also noted escrow and related receipts that could reduce future borrowing needs, but acknowledged escrow timing is uncertain.

After the transfer vote, the board unanimously approved item 8.3 to authorize administration to work with interim bond counsel (Saxton & Stump, by Iranda Lord, as recorded in the meeting) to proceed with preparations for issuance of a general-obligation bond to support the project financing.

Administration said the board could choose among options as unknowns resolve: leave more cash in the general fund and take a smaller transfer now, secure a short-term loan to bridge timing gaps, or issue additional bonds later if required. Staff said interest earned on bond proceeds has been favorable and could offset some costs.

Ending: The unanimous votes provide immediate cash for construction payments and give the administration legal authority to continue bond issuance planning; district staff said they will return with details if circumstances change or further transfers are needed.