Lawrence Township getting loans again

For the second time this year, district officials plan to take out loans to make ends meet after sweeping property tax reform measures that stalled 2007 and 2008 payments to schools and other government agencies.

After approval by the School Board on Monday, administrators can borrow up to about $45 million to keep the district solvent as it waits for property tax revenue, which hasn´t been collected yet.

Exact figures on how much the district will borrow and pay in interest have not been calculated, said Robin Phelps, chief financial officer for Lawrence Township Schools.

But the district will have to borrow at least enough to cover its 2007 loans.

The loans will be used to pay off about $17.4 million in debt rolled over from 2007, plus almost $375,000 in interest, Phelps said.

"We typically have to borrow each year in January to cover cash flow because we don´t get money until June and December," she said. "Because we didn´t get money in June or December of last year, we have to borrow again."

Lawrence isn´t alone.

Local governments and school districts throughout the state are borrowing money to cover costs until taxes can be collected and distributed.

"The biggest problem is the increased interest we have to pay," Phelps said.

The district´s agreement to borrow $21 million in January came with about $469,300 in interest.

District officials remain hopeful that all tax money owed them will be in hand by the end of next year.

"We are hopeful to get the first installment in November for 2008, and then we won´t get the second installment until sometime in 2009, hopefully in the spring," Phelps said. "Then, in 2009, hopefully, they will catch up, and we´ll get two installments in 2009."

Why Home Buyers must Understand the significance of Interest Rate Drops | Initial Time Home Buyers Loans | College Loan Consolidation - You Solution To Student Loan Payback | Stafford Loans As Your Law School Loan Alternative | How To Get A Short Term Loan | Instant Cash Loans, how to get it quickly | Millions of dollars in bad loans | The Missouri Higher Education Loan Authority board | Wells Fargo (NYSE: WFC) has also eliminated some cash-out | Blue Chip properties mortgage Loans | Inventing mortgage-backed securities | SBI bad loans | University Students borrowed loand from Students Loan Bureau | FHA Loans from the Federal Home Loan Mortgage Corp | Bank of North Dakota borrowers have federal student loans | Wall Street investment companies reduces FED loans | Personal Loans easiest way for life | Problems of personal loans | Farmers are not getting fresh loans from banks | Housing finance experts asks lifting of loan limits | India banks' loans rose 24.3 | Shortage in federal student loans | Repayment of loans to opera house | Low-interest loans for home owners at Alaska | Lawrence Township getting loans again | Commercial property loans has risen by 400 percentage | Enable repayment of student loans | Small loans microfinance to expand and improve businesses | International Real Estate Loans | The National Australia Bank NAB has become the third major financial institution | Council Of Mortgage Lenders (CML) has issued a downbeat report on the outlook for the UK housing mar | UK high stret lender Abbeys fixed-rate range will riseup | Commercial bank lending in Singapore in April grew | Small Business Administration Disaster Assistance Loan Deadline | Banks bad loan solution | Car loans with less form filling procedures