The Butler Area School District will reduce debt while saving money after approving payment in full of money borrowed nine years ago, according to administrators.
During a meeting Monday, business Manager Nick Morelli recommended to the board that just over $400,000 from the district’s general fund be used to pay off the balance owed on money borrowed from PNC Bank.
Butler borrowed $600,000 in 2010 against future energy savings in order to make energy renovations to the district’s administrative offices. The rate on that borrowed money is nearly 5 percent monthly, so paying the amount borrowed off now will save the district over $70,000 in the long run, while also taking debt off the books.
There was no fee for early repayment so Morelli’s recommendation was approved unanimously by the Board of School Directors.
Written By: Ryan Saeler for the Butler Radio Network