Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, February 22, 1994 TAG: 9402220240
SECTION: CURRENT PAGE: NRV-3 EDITION: NEW RIVER VALLEY
SOURCE: By MELISSA DeVAUGHN STAFF WRITER
DATELINE: FLOYD LENGTH: Medium
The boards met together to come up with a way to finance the $3.6 million for much-needed repairs to the county's four elementary schools, its vocational school and high school. The choices are:
finance through the Virginia Public School Authority immediately, at no risk, but at a higher interest rate, or
apply for a temporary 3-year loan - called a bridge loan - in hopes that a Literary Loan at a lower interest rate will come through by the end of that period.
The snag: a Literary Loan, which is money supplied to schools by the Virginia General Assembly, is not guaranteed. If the county fails to receive that loan, it would have to go back to the Virginia Public School Authority for funding, possibly at a higher interest rate than available now.
"So, it's just a gamble," said Supervisor David Ingram.
"You're absolutely right," said County Administrator Randy Arno. "But I personally think [the bridge loan] is a good deal, I think it's worth the risk."
School Superintendent Terry Arbogast supported the bridge loan because he said it would give the county time to put itself in strong running for the Literary Loan.
Former Gov. Douglas Wilder proposed a $95 million budget for the Literary Loan fund, Arbogast said, and that plan is receiving favorable response from Gov. George Allen and the General Assembly. Because that money is already spoken for by other schools, Floyd County would have to apply for funds next year.
If the county obtains a Literary Loan, it could save $70,000 per year for 20 years - "that's money we can be putting into education," Arno said.
The interest rate for a Literary Loan currently stands at about 2 percent. A Virginia Public School Authority loan is at 6 percent. If the Literary Loan does not come through at the end of the bridge period, the interest rate from the school authority could be as high as 7.5 percent, although it is impossible to predict.
"The [interest] rates are good and favorable, and I don't think it's a gamble," Arbogast said. Both he and Arno believe the county will have no trouble getting the Literary Loan.
"We haven't received one in so many years, and the amount is minuscule compared to that in Northern Virginia," said Arno.
The School Board unanimously supported the bridge loan option. On the Board of Supervisors, Supervisors Edsel Duncan and Howard Dickerson were the only two to oppose.
"What concerns me is that you can't give the board 100 percent assurance that we can do this," Dickerson said.
"I'm 99.9 percent sure we f\ ticano do this," Arno said. "We have given this project one enema after another [so] that it will work."
Improvements will begin on Floyd County schools this summer once the financing is arranged and should be completed by the fall of 1995, according to School Superintendent Terry Arbogast.
The improvements are as follows:
All four elementary schools: update electrical, plumbing and heating systems. Replace all windows.
Floyd County High School: update electrical, plumbing, heating and air conditioning. Replace a boiler.
Floyd County Vocational School: update the electrical and plumbing systems.
by CNB