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Crestwood board approves $1.678M note after debate over using cash versus borrowing
Summary
The board approved a general-obligation note of $1,678,000 to help fund about $2 million in summer capital projects (stadium track and turf, Fairview roof, elementary safety work) after members debated borrowing versus using cash; the note carried after discussion of projected fund balances and interest-rate tradeoffs.
The Crestwood School District board voted to approve routine financial planning items, including consideration of a general-obligation note for $1,678,000 to subsidize summer capital projects such as the stadium track and turf replacement, roof repairs at Fairview Elementary and safety/security improvements at two elementary schools.
Financial-planning chair Mr. Nardone said the district finished the prior year with a fund balance of about $2.7 million and is focused on cash position at the end of June. He told the board the proposed note would subsidize part of roughly $2 million in planned capital work and that the remainder would draw on the district's capital reserves. "These funds will help subsidize the capital project scheduled for this summer," he said.
During questions, a union representative and board members pressed why the district would borrow when cash on hand currently earns roughly 4.1% interest. The district provided the winning bid rate of 4.01% for the note and noted that projected rates had been higher at the time the decision was discussed. "The interest rate for that note is 4.01%," one district official said. "The average interest rate on our cash is about 4.1%." Members noted that variable market conditions can change the calculus.
The board approved the financial package (items 1'11) by roll call; some members recorded abstentions or recusal on specific subitems (an abstention on items 2 and 7 by one member and a recusal on a check under item 1). The motion to carry the overall package passed and the projects were authorized to move forward.
The district said the funds are earmarked for the stadium (track and turf), the Fairview roof project and elementary safety/security work; project start dates were described as planned after spring sports seasons end.
Votes were recorded during the regular voting session; board members indicated decisions by roll call and the chair declared the motions carried.
