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Board approves five-year renewal of $375,000 loan with Farmers & Merchants at 4.75%
Summary
Administration presented renewal terms for a $375,000 loan for the ball field complex and the board approved a five-year extension at a 4.75% fixed rate, increasing annual payments from $43,597 to $46,233.
The board approved renewal documents for a $375,000 loan from Farmers & Merchants that previously carried a favorable introductory rate and is now being renewed for five years at 4.75%.
Administrators said the original financing included a 2.75% guaranteed rate for the first five years on a 10-year amortization; now that the five years have passed, the bank offered a 4.75% fixed rate for the remaining five-year period. Administration stated the annual payment will increase from $43,597 to $46,233 (an increase of $2,636 per year) charged to Fund 10, and that after five years the payment will drop off, freeing up additional money in the fund.
A motion to approve the packet documents dated 03/30 and accept the five-year, 4.75% renewal was made and approved by voice vote. Administration said annual payments are expected to be made in March and that the district will continue to model long-term impacts as budget planning progresses.
Next step: Administration will finalize loan documents and ensure signatures are completed.
