Beatrice Public Schools to shift funds to make remaining school construction payments

BEATRICE – As construction of a new prekindergarten to fifth grade building in Beatrice gets closer to its finish, the school district will be able to shift funds to cover remaining construction payments.

Superintendent Jason Alexander says it will be necessary to shift some money from the general fund to the building fund of the district, as the project nears completion. The process is allowed by rule, under monitoring of the Nebraska Department of Education.

"Roughly, we're estimated that to be somewhere between $2.5 and $2.8 million to loan to the building fund....and over time, the building fund has to pay that back."

The $40.5 million project is being financed through a joint public education agency and a bank loan. Alexander says the interfund loan will be needed to finalize the construction payments.

"There are other options out there. We could go ask for more on the loan, but one of the main reasons we were able to do this project the way we were, is because of the interest rates....and getting it penned before interest ratee went up. If you remember, interest rates were at a very low point compared to where they are now. So, it would make more sense for us to loan the money to ourselves, rather than go out and ask for more."

The superintendent of the district said the final amount for a transfer was anticipated to be closer to $5 million, but project costs have been lower.  "Construction has gone very smoothly. The cost of products hasn't been as high as what was originally anticipated, and the bidding process that's taken place in the request for proposals that Hausmann conducted as our CMAR, have been lower than what they originally anticipated. That's a good thing. It's actually going to be lower than we initially thought."

The shifting of funds will require approval of a resolution by the Beatrice School Board, which will be on the next board meeting agenda.