School Board Approves Turf Financing

The Warren School Board met Wednesday evening, July 6, at 5:30 p.m. for  special called meeting for the purpose of finalizing the paperwork for the financing of the football field turf project.  All seven board members were present along with representatives of Warren Bank and Trust Company, First State Bank, and Union Bank.  Superintendent Bobby Acklin thanked everyone for attending and briefly reviewed the history of the turf project.  He particularly thanked the three banks for their cooperation.  He informed the board that the foundation has approximately $250,000 cash on hand and over $900,000 has been pledged.  He indicated the matter before the board was to consider approving a loan in the amount of $600,000 to be shared by the three financial institutions.  The loan will be payable over a ten-year period at a 4.5% interest rate.  A balloon payment will be due in five years at which time the note will be renewed for an additional five years as needed.  At this point Dr. Kerry Pennington and Mr. Greg Morman recused themselves from any action as board members and left the meeting.  Dr. Pennington is a member of the board of directors of Warren Bank and Trust Company, and Mr. Morman is an officer of Warren Bank and Trust Company, and therefore removed themselves from any participation or vote relating to the loan.  Once they left, the floor was opened by Mr. Acklin for any questions from the remaining five board members.  Joey Cathey asked if the loan could be paid off early without penalty to the district.  Bruce Anderson who was present as legal counsel for Warren Bank, informed the board that it could be paid off early with no penalty.  The earlier it is paid off, the less interest will be charged.  Mr. Anderson explained that funds to pay off the loan would come from the school foundation who would collect the money pledged and then pay it to the school to pay on the note.  Mr. Acklin reminded the board that the project would be paid for with contributions made to the foundation and $25,000 per year of school funds that are already budgeted for upkeep of the football field.  He went on to say there was no other public tax money involved in the project.  The loan does have to be made to the school district to comply with the law.  He also informed the board that the State Department of Education will have to approve the financing.  On a motion by board member Joel Tolefree and a second by board member Angela Marshall, the board voted 5 to 0 with two not voting to approve the loan.