The loan would extend a three-mill tax levy already in place and not cause a tax increase.
The Alcorn School Board of Education authorized the issuance of the amount not to exceed $4,250,000 in new limited tax notes to be used for facility and transportation upgrades. The resolution approval came recently after necessary legal steps were taken.
Bond writer Brad Davis said the loan would come with a 12-year term with a pay early date after the fifth year. If the school district pays off the loan prior to the loan’s fifth year, a penalty would incur.
“It looks like we will be able to close and the school district could have the money in hand by August 1,” said Davis. “Currently the loan’s interest rate would be 2.77 percent, but of course interest rates change daily.”
The school district can use the borrowed money on repairs, alterations and additions to school buildings, erecting school buildings, the purchase of heating and air units, to purchase school buses or other transportation equipment.
The monies can not be used on salaries or to hire staff.
Superintendent Larry B. Mitchell said he will look to board members when deciding where to spend the money.
In May, Mitchell said he wanted to buy new buses with some of the money.