Maplewood Richmond Heights School District has projected a potential cash deficit, and plans on opening a $400,000 line of credit with Citizens National Bank as a precaution.
Carlton D. Brooks, Maplewood Richmond Heights School District chief financial officer advised MRH Superintendent of Schools Karen Hall of the situation on Sept. 12.
Brooks said he is performed a conservative cash flow analysis, and determined the line of credit might be needed until the school district begins receiving tax receipts on local property tax assessments in December.
He foresees a potential deficit cash position of $296,650 in late November, and anticipates borrowing $300,000 to $400,000 during the fourth quarter of 2013 as a result.
He said there is a good chance the line of credit won’t be needed. Last year the district had a line of credit (tax anticipatory note) with Citizens Bank for a $1 million line, but only used approximately $600,000 before the December tax receipts came in.
Brooks said the receipt of the $730,000 Deer Creek TIF pay-out has put the district in a stronger position this year than last.