CCS Board Signs Agreement with Merchants Bank
February 25, 2010
by Nancy Wood

At the February 16 meeting, the three attending Board members, Chair Patrice Machavern, Lynne Jaunich and Sue Thibault, signed the financing agreement with the Merchants Bank to borrow the $2.8 million for the school reconstruction project. Board members Clyde Baldwin and Dan Luce were absent.

The money is to be paid back over 17 years. By the terms of the agreement the money will be invested in an interest-bearing sinking fund with the Merchants. It is expected that over the life of the loan the School District will earn rather than pay interest on the loan.

One detail remained – one of the board members requested a side agreement guaranteeing the interest on the sinking fund would never go negative. The funds were expected to be received by March 1.