The Ann Arbor Public School district is now pursuing a line of credit, because the district’s fund equity balance is below the amount needed to cover payroll over the summer.
At their May 8, 2013 meeting, the Ann Arbor Public Schools trustees adopted a resolution authorizing the school district to obtain a fiscal year 2013-14 line of credit in anticipation of school state aid. The vote came after a special briefing, which means the trustees hear and approve an item at the same meeting.
The resolution authorizes the district to obtain a line of credit not to exceed $10 million in anticipation of the distribution of 2013-14 pledged state aid for the fiscal year ending June 30, 2014. The first draw from the line of credit may be in June 2013 or thereafter.
Interest rates will be determined after the district credit rating is determined.
This brief was filed from the board room of the Ann Arbor District Library in downtown Ann Arbor at Fifth and William. A more detailed report of the meeting will follow.