Athens schools borrow money to remain solvent

The Athens Board of Education on Sept. 11 unanimously voted to authorize Athens School District to borrow up to $2 million. This way the district can survive until January 2024 when it begins receiving money from the operational referendum that voters approved in April. Beth Steinke, Athens School District business office manager, said the school district borrowed $1 million in the 2022-23 school year to pay off the loan issued in 2021-22 as well as borrowing an additional $2 million for cash flow purposes. In May, the Athens School District paid off the $1 million loan and the school district currently has a balance of $1,900,000 on its loan at Forward Bank that expires on Oct. 13.

“Cash flow borrowing is not unique for Wisconsin school districts as expenditures are fairly consistent throughout the year and revenues are more sporadic,” Steinke said. “The school district sought authorization from the board of education to borrow an amount not to exceed $2 million for the purpose of paying the cost of general and current expenses of the district and refunding outstanding obligations of the district. The specific terms will be determined in the coming weeks as we continue to review borrowing needs. The resolution authorizes the issuance of and provides the school district with authority to issue and sell general obligation promissory notes.”

In April, residents voted to allow Athens School District to exceed its state revenue limits by $1.67 in 2023-24 and by $1.2 million for each of the next three years. The referendum money will be used to help the school district rebuild its general fund and pay for its operational expenses.