The Italy Higher Education Corporation met last evening to nominate a new president, vice president and secretary and vote on approving a financing agreement in the amount of $2,750,000 for the Khabele School in Austin, Texas.
The new officers are president Joan Grabowski, vice president Teresa Cochran and secretary is Teri Murdock.
It was explained by Dan Plights, an Attorney from Waco representing Khabele School and Regions Equipment Finance Corporation, that the state gives every municipality $10,000,000 tax exempt borrowing power on an annual basis.
The private schools have to go to municipalities and ask them to approve the use of all or a portion of their allocated tax exempt money so the private school can get a better interest rate due to the use of tax exempt money.
This $10,000,000 received by the city is not actual cash, but only a dollar amount to be able to borrow from a bank at a lower interest rate.
If approved, the financing agreement allows the Italy Higher Education Corporation to receive $5000 from Khabele School for the use of the borrowing power.
If Khabele School defaults on their payments it is not a reflection on the City of Italy nor the responsibility of the City of Italy to pay the loan.
Since the Italy Higher Education Corporation does not have any plans to borrow before the end of the year and they will receive another $10,000,000 ability to borrow on January 1, 2014, the financing was approved.
The $5000 the City of Italy will receive in December of this year was approved to be used to purchase a new emergency siren for the city.
Before these two approvals are final, they also have to be approved by the city council.