Board approves release of Literary Fund loans for Mount Airy Elementary and Drew Middle School replacement

The Board of Education voted to release two Literary Fund loans to local school divisions for construction and renovation projects.

Pittsylvania County will receive a Literary Fund loan of $5,687,000 to pay for HVAC and window replacements at Mount Airy Elementary School, payable over 18 years at an eligible 2% annual interest rate, staff said. Stafford County was approved for a $25,000,000 Literary Fund loan to replace Drew Middle School, payable over 20 years at a 3% annual interest rate.

Board staff explained that Literary Fund loans differ from the School Construction Assistance Program in that the loans must be repaid by the school divisions and use the state's credit rating to reduce borrowing costs. The applications had completed the required documentation and met the code-based eligibility standards, according to staff.

There were no substantive questions from board members before a roll-call vote to receive the recommendation for first and final review and release the loans. Members recorded their votes by roll call and the motion carried with recorded Ayes in the minutes.

The board took the action during Item J on the agenda; documentation for each application was included in the meeting attachments. The board record shows the motion and roll-call approval; more detailed financing and repayment schedules are available in the attachments referenced in the agenda packet.

The board indicated it would return to related oversight items in August when other first-review items are considered.