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MSD Wayne Township Looks To Borrow Money
(posted May 25)
Metropolitan School District of Wayne Township advertised legal notice
May 23 in preparation to borrow money to fund school operations. The late
tax distributions due to the 2007 reassessment has forced another local
government entity to find other sources of funding to maintain services.
"Since we anticipate receiving no 2008 tax revenues in 2008 we will
need to borrow funds, probably in mid-June. The exact amount borrowed will
not be known until it is actually borrowed," Director School / Community
Services Tom Langdoc said. The initial estimate is $18.9 million
for the general fund.
The school district is limited in the amount it can borrow. With an estimated
interest rate of 2.4 percent, the projected interest expense to taxpayers
is $453,600. "The interest amount would be added to our debt service
and the tax rate would go up."
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