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Wellsville school board approves deposit call back

WELLSVILLE — The village school district will front itself $1 million by calling back a million dollar lump-sum deposit.

According to Superintendent Richard Bereschek, board members also approved the call back of a $1 million certificate of deposit before its maturity date to meet January’s obligations until their foundation payments arrive Friday.

A certificate of deposit (CD) is a product offered by financial institutions that provide an interest rate premium in exchange for the customer agreeing to leave it untouched for a predetermined period of time.

Bereschek explained that will include two upcoming payrolls of $250,000, two consortium insurance payments of $200,000 each and four weekly payable runs each totaling $75,000. “Our bank balance has dropped to a little (more than $135,000) and without the money from the CD, we would not be able to meet our obligations,” he explained.

He didn’t specify any other penalty for early withdrawal of the funds, but said the district would lose any expected interest for the remainder of the term. The CD was expected to mature in March.

During the reorganizational portion of Wellsville school board Monday night, Gary Althiser was re-elected board president, while Austin Dalrymple was selected vice president.

Barry Arbaugh also was reappointed by the school board to the Carnegie Library board of trustees.

Members agreed to transfer from the general fund: $79,000 into the cafeteria fund and $3,500 into the athletics fund.

In other action, the Wellsville school board approved a memorandum of understanding between Kent State University and Wellsville for academic year 2021-2022, allowing students to earn College Credit Plus; hired substitute bus drivers Don Chestnut and Ruth Libert-Schmid; and accepted $3,710 in donations from the Go Health Foundation and an anonymous donor for the district’s food pantries.

The next board meeting will be held at 6:30 p.m. Monday, Feb. 22 at the high school media center.

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