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Fitness center could be paid off early PDF Print E-mail
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Written by MITCH MAERSCH   
Wednesday, 20 September 2017 19:33

School Board may approve final payment of 10-year, $1 million loan in November

Cedar Grove-Belgium School District officials are recommending the district pays off the fitness center loan in this year’s budget.
That would complete a 10-year loan in three years.
The district owes $300,000 in principal on the $1 million loan. Terms of the loan call for paying $100,000 per year plus 2.95% interest.
The district already made this year’s $100,000 payment plus interest.
Officials want to pay $205,000 more to cover the rest of the loan plus interest. Savings on interest would be more than $5,000.
“That’s good work,” School Board President Chad Hoopman said at last week’s board meeting.
The move would be the second largest payment to prepay the loan. Last year, the district used $300,000 in residual funds from the 2016-17 budget to help pay down the loan.
The board would have to approve the latest payment recommendation in November, when it is expected to approve this year’s budget.
Since the loan falls under the district’s revenue limit, Business Manager Kris DeBruine said it would be nice to pay it off, so more funds could be used directly on education in the future.
DeBruine said she isn’t sure if paying off the loan early would have a positive impact on the district’s bond rating. The district is rated Double A.
The $1.45 million, 10,000-square-foot center opened in January 2016. It includes a fitness, weight and cardio area, wrestling/multi-purpose room, two storage areas and an upgraded locker room for school and community use.
The School Board had approved a loan of $1 million for the center, supplemented by $750,000 from its fund balance account, to cover the cost of construction and equipment for the center.

 
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