Sharpsville school board to borrow funds

SHARPSVILLE, Pa. -- The Sharpsville Area School Board is borrowing $575,000 to finance new bleachers at the high school football field and to replenish its capital reserve account.
The board approved the plan Monday, agreeing to borrow the money from First National Bank of Pennsylvania for 10 years.
The interest rate will be 4.09 percent for the first five years and 60 percent of the prime interest rate after that, though the board hopes to pay the debt off early, said Dr. Derry Stufft, superintendent.
He said $300,000 of the loan will go toward the bleachers, a project that has already begun.
The rest of the money will go into the district's capital reserve fund to replace $200,000 used to renovate the former Seventh Street Elementary School as new district central offices and space for preschool programs, he said.
In other business, the board approved a 3.5-percent increase in the $351,407 contract with Student Transportation of America in Hermitage. The company busses Sharpsville students to and from school. The increase takes effect in the next school year.
The board also extended the term of that contract for an additional two years through 2006-07 but said any increase beyond the 3.5 percent for next year will have to be negotiated.