Board OKs loan after Fulton freeze causes cash-flow pinch

Atlanta Public Schools’ plan to borrow up to $100 million to solve immediate cash-flow problems will cost the district thousands more in legal fees and interest.

The Atlanta Board of Education on Tuesday agreed to borrow up to $100 million through a tax anticipation note, to be repaid by the end of December.

The school board’s action follows a summer of financial uncertainty after Fulton County mostly froze property values and the district grappled with delays in the assessment process.

If the district borrows the full $100 million, it would cost APS an estimated additional $329,000 in interest plus $80,000 for legal fees and other associated costs.

“September in particular is going to be a very low point for us in cash flow, and it is essential that APS protects all of the organization,” Superintendent Meria Carstarphen said.

The school district also took out a tax anticipation note last year.

The board also approved budget tweaks to plug a $4 million shortfall. That’s significantly less than the $12 to $18 million gap the district planned for after Fulton County froze most of its property values.

The district will give teachers a roughly 1.5 percent raise and provide a one-time $500 payment to other fulltime staff.