MOSES LAKE — Moses Lake School Board members will take out an interfund loan to ensure the district can meet its payroll and at least most of its expenses in June. Board members approved the loan from one fund to another at a special meeting Thursday. 

The vote was 4-0. Board member Kevin Fuhr did not attend.

The resolution authorized the loan of up to $3 million from the district’s capital projects fund. Acting Superintendent Carol Lewis said the accountants analyzing the district’s current finances didn’t think it would be that much. District officials wanted to ensure enough money was available since the financial review is still ongoing.

“We have an ever-changing situation,” Lewis said. 

Trisha Schock, assistant superintendent for educational services at the North Central ESD, said the Moses Lake School District needs to pay its staff for June, as well as its bills in mid-June and at the end of the month. She estimated the district would need about $1.5 million to meet its June obligations.

Board member Paul Hill asked about authorizing a loan for that amount. Lewis said district officials wanted some flexibility in case the final total was higher than the estimate. 

“We put in (the resolution) that I would discuss with you whatever amount it was going to be prior to making any transfers. So the amount that Trisha has identified is $1.5 million. So if you were to approve it as it is written tonight, I would not authorize the transfer of anything more than $1.5 (million) without discussing it with the board,” Lewis said. 

The resolution requires that the money be paid back within two years at an interest rate of about 5.85%. Prior to the loan, the capital projects fund had a balance of about $9 million. 

The money was generated from the sale of bonds allocated to the construction of a 12th elementary school, with a site identified in Mae Valley. Hill asked if the loan would affect the construction project.

“We’re still waiting on some permitting to be able to even buy the land for Elementary 12,” Lewis said. 

She added that she discussed the project with staff members overseeing it earlier Thursday.

“Even with the loan, we’ll have the funds to purchase the land once the permitting goes through,” she said. “We still have $46 million in unissued bonds.”

Those would be sold and the proceeds used to pay for construction, she said.

Schock said the ESD financial staff will be evaluating district programs to determine if some of the expenses anticipated to be paid out of the general fund could qualify for inclusion in the district’s grant programs. Depending on the results, some money could be put back into the general fund. That could help start the loan payback process more quickly, she said.

Cheryl Schweizer can be reached via email at [email protected].