The Fort Dodge school board approved three resolutions to authorize needed loans Monday.
Jack Christensen, board secretary, described the resolutions as "housekeeping measures."
First, the district adopted an initial resolution for a one-year loan to facilitate the completion and payment of the Dodger Stadium Athletic Field replacement project. The loan is due again on June 30, and there is still a balance of $165,000 due on it, plus interest.
The district needs to reauthorize the loan for at least one more year to allow the school foundation to collect the pledges and donations needed to retire the debt.
"We've been steadily working the note down on the football field," Christensen said. "We started at $600,000. We received another $12,000, so that's going to take it down to $153,000 by the end of the year. And we possibly could have another $20,000, which would be $133,000. So it just keeps moving down."
The resolution authorizes a loan from the capital projects fund to the physical plant and equipment fund of up to $165,000 for cash flow purposes, for the 2012-2013 fiscal year, and to be repaid by June 30, 2013.
"This is a housekeeping measure. We just need to do this as we have the last couple of years so we can continue reducing that," Christensen said.
According to Christensen, pledges are coming in as anticipated and the debt is steadily being cleared.
"If we can get those last few pledges, I believe it pretty much takes care of it," he said.
The board next approved a resolution authorizing a loan from the general fund to the physical plant and equipment fund of up to $500,000 for the 2012-2013 fiscal year and to be repaid by June 30, 2013.
The loan rate is for cash flow purposes. The physical plant and equipment funds received are based on the collection of property taxes. The loan will allow the process to be stable throughout the year, even when the flow of funds is uneven, Christensen said.
"In the past we've done this quite a few times. The last couple of years we haven't had to. But there's going to some things that are going to be purchase here in July, meaning the capital projects fund will be short for a period of time," he said. "When the taxes come in the fall, it should take care of it."
The purchases have not been approved yet, only discussed in committee.
"I recommended this just as a precautionary measure," Christensen said. "If they don't need it, they don't need it. If they need it, it's on the book to go ahead and do it."
Last, the board authorized a loan from the general fund to the management fund of up to $200,000 for the 2012-2013 fiscal year, to be repaid by June 30, 2013, again for cash flow purposes.
The district's property and casualty insurance premium is due July 1. The management fund is $50,000 short of the funds needed to pay the premium for the year. The loan will facilitate the payment of the premium.
The loan will be paid back in the fall of 2012, when the first large amount of tax revenue for the management fund is received.
"This is something we will need to have," Christensen said. "It won't be $200,000, but I just wanted to make it large enough in case something else came along before we got the tax revenue."
All three resolutions were approved unanimously by the board.