Leanne Martin, the district’s finance presenter, told the Northern Lebanon School Board on Nov. 11 that about $6 million remains to complete secondary-school renovation work and close out contractor payments. “So while we have $3,100,000 still in our capital projects fund, we can’t really access that,” Martin said, adding that the funds are tied up in escrow and will return only after final engineering and approvals.

Martin proposed a two-part approach to cover the shortfall: borrow $3 million through bank financing (not a bond) and transfer $3 million from the general fund. “One of the recommendations that we came up with is we can borrow $3,000,000,” she said. The board was told consultant Brad Redmond (mentioned by Martin) will solicit bank proposals and return with specific interest-rate and repayment options.

Why it matters: contractors are expected to request payments as construction wraps up in February; the board directed staff to prepare a parameters resolution for the Dec. meeting so that Brad Redmond can solicit loan offers. If approved, final loan documents would be on the board’s January agenda so funds could be available before contractors file final claims.

Martin outlined cash and escrow details: roughly $1.6 million in elementary-school escrow plus other amounts leave $3.1 million held overall; the district currently expects to draw the remaining construction account balances in mid-December to pay bills. She said borrowing scenarios under consideration include splitting the $6 million evenly (borrow $3 million, transfer $3 million) but that other mixes (borrow $4 million/transfer $2 million or borrow $2 million/transfer $4 million) remain possible.

Board members asked about loan pricing and prepayment penalties; Martin said the consultant will request those specifics and try to secure terms that allow early payoff without penalties so escrow refunds could be applied. “That is one of the questions we would definitely ask,” she said.

The construction financing decision connects to a separate, yet related, CTC (career-technical center) renovation discussion. Martin said the district’s potential share if the CTC proceeds could range from about $1.1 million to $1.5 million depending on the final formula and chosen option, information the board said will be refined in inter-district talks before a final commitment.

Next steps: staff will draft proposed loan parameters for a December parameters resolution and return final loan documents for board action in January. The board will also monitor escrow releases and contractor payment schedules through December and January.