Raymond #14 board authorizes administration to seek $1 million short-term line of credit

The Raymond #14 School District board voted Feb. 17 to authorize administration to continue negotiations with Community State Bank for a $1 million short-term line of credit intended to cover cash-flow shortfalls between state revenue disbursements.

Superintendent and board presenters said short-term borrowing is needed because state funding arrives in large, irregular installments and the district lacks a fund balance sufficient to carry payroll and bills through summer months. "This loan is for our short-term capital so we can pay our bills and have cash flow," the administration said in explaining the proposal.

Administrators outlined the recent loan history: the district paid off the most recent credit-line obligation in January using its February tax settlement and is seeking a typical six-month line through October 2025. The proposed facility would be for about $1 million, with an interest rate tied to prime (administration referenced roughly 7.5% prime in current market conditions), and the board voted to allow staff to finalize terms with the bank.

Board members said the borrowing is a stopgap tied to a larger strategy to strengthen the district's fund balance and reduce interest costs in future years. Officials emphasized they will perform additional cash-flow analysis and predictive modeling before finalizing loan documents.

The motion to authorize administration to reestablish the line of credit was moved, seconded and carried by voice vote. No formal roll-call vote or individual tallies were recorded in the meeting minutes.

Next steps: administration will continue negotiating terms with Community State Bank and return to the board with finalized documentation as required.