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Elizabethtown board votes to use capital-reserve funds for $3.2 million November debt payment
Summary
The school board unanimously approved a motion to pay a $3.2 million November debt-service payment from the Fund 32 capital reserve, with an instruction that the reserve be reimbursed from the general fund once state payments are received; the board also approved the personnel report.
Elizabethtown, Pa. — The Elizabethtown Area School District board voted Tuesday to temporarily use capital-reserve funds to meet a November debt-service obligation and approved routine personnel recommendations.
A board member moved that the district pay the November debt-service payment of $3,200,000 from Fund 32 (capital reserve), with a directive that the capital reserve be reimbursed from the general fund when the state's payment is received. Another board member seconded the motion; the board conducted a roll-call vote and the motion passed. Board President Steven Lindemuth announced the vote results as the motion carried.
During discussion earlier in the meeting, board counsel noted Pennsylvania law allows debt-service payments to be made from capital reserve accounts and recommended the board direct administration to reimburse the reserve immediately upon receiving state funds. The finance presentation said the temporary reallocation is intended to protect district cashflow and avoid short-term borrowing costs while awaiting state payments.
The board also approved the administration's personnel report, pending receipt of necessary paperwork.
No dissenting votes were recorded in the roll call on either item.
