Board seeks specifics on proposed loan

By By Georgia E. Frye / staff writer
Feb. 3, 2004
Lauderdale County School Board President Robbie Hales said Monday she wants to know exactly how a proposed $5 million loan would be spent before she could support it.
Lauderdale County School Superintendent David Little called the board meeting to ask members to consider borrowing between $5 million and $7.5 million. No action was taken.
Little said the majority of the loan, formally called a bond issue, would be used to complete an energy savings project for county schools. He said the project would cost about $3 million.
In addition, Little said, some of the money would be used to make improvements at each of the county's four campuses.
Charlotte Parker, director of finance for county schools, said last week that a $5 million loan would not raise county property taxes while a $7.5 million loan could raise them.
If the school board decides to borrow the money, the proposal would go to a vote by county residents in the November general election.
If it passed, school board attorney John Compton said the board wouldn't actually borrow the money until May 2005 when an existing $5 million loan will be completely paid off.
School board member Barbara Jones, who represents District 1, said she wants to make sure it is the right time for the district to borrow money.
Little said he believes it is the right time because the existing $5 million loan will come off the books next year.
Plus, he said, it would be easier to put the issue to a vote this year by scheduling it to coincide with the November presidential election. He said a separate special election would be expensive for the county.
After the work session, Little said he was happy with the board's response. He said he believes the school board will support the loan proposal.