Northampton schools receive loan
JACKSON – No one can put a price on education, but putting one on a building is another story.
In light of expansion and improvement projects currently underway at Northampton County Public Schools, the Northampton County Board of Commissioners approved a resolution, Tuesday, supporting a $1.1 million temporary loan to assist with some of the costs associated with the endeavor.
The money will be used by the school system to pay for expenses in relation to the projects to be financed by the sale of previously approved school bonds, including, but not limited to, expenses already incurred for roofing projects and those yet to be incurred, such as the purchase of land, architectural fees and other related steps in the process.
Northampton County citizens approved the $9 million school bonds in a July 20, 2004 referendum to go towards the construction of a new elementary school and administration as well as the re-roofing of some existing school facilities.
According to the North Carolina Local Government Commission (LGC), the county can legally loan the funds to the school system for the desired purposes, as long as the LGC and the Board of Commissioners approve it at a regular schedule meeting in addition to approval from the Board of Education.
According to Northampton County Finance Officer Dot Vick, the loan would be a non-interest bearing loan and would be repaid from the proceeds of selling the bonds.
&uot;We will be in touch with the LGC and continue to seek their advice in the matter,&uot; Vick said.
She also added that the loan would not draw down the general fund because of revenue generated from November sales tax.
A written agreement of repayment from the Board of Education is required. Funds to repay the loan will come from the sale proceeds of the $9 million bond issue.