Committee approves $50,000 from stabilization fund to meet Memorial Elementary BAN paydown requirement

The Manchester-Essex Regional School Committee unanimously approved a $50,000 appropriation from the district’s stabilization fund on Jan. 27 to satisfy a Massachusetts paydown requirement for a bond anticipation note (BAN) tied to the Memorial Elementary School project.

Michelle, who presented the memo explaining the request, said the BAN originally financed a 2022 temporary bond (about $1.3 million originally, renewed to $1.1 million last year) and that state rules require a minimum paydown for notes older than three years. “Because the note is more than three years old, we have to pay down a minimum of $50,000 on the note and it cannot be used with proceeds from this bond,” Michelle said. She told the committee MSBA closeout and reimbursement are underway but auditing backlog at MSBA means the reimbursement timing is delayed.

Committee members asked whether the $50,000 will be reimbursed or reallocated; Michelle said administrators expect reimbursement within roughly 12 months once MSBA closes out the project and that the money likely can be reappropriated to stabilization later. Michelle reported the stabilization fund balance would be about $94,000 after the appropriation (before interest earnings).

The motion to appropriate $50,000 from the stabilization fund to pay the BAN requirement passed unanimously by roll-call vote.