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."