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City Council panel approves borrowing $30 million for Philly schools

This article was originally published in The Notebook. In August 2020, The Notebook became Chalkbeat Philadelphia.

The city of Philadelphia intends to borrow $30 million more to keep the schools afloat while the District awaits proceeds from the cigarette tax that was finalized Tuesday by the Pennsylvania Senate.

The city borrowed $27 million to help the District meet expenses for the fiscal year that ended in June. It agreed then to borrow $30 million more in September.

City officials also plan to refinance the $27 million in loans from earlier this year.

Refinancing the short-term loans will lock in favorable fixed interest rates instead of the variable rate being paid now, said Rob Dubow, city finance director.

"We did the $27 million borrowing earlier; now there would be a $30 million borrowing. If, however, when we go to market for the borrowing, if it becomes clear it would be cheaper if we re-funded — like taking out a new mortgage — the earlier deal we would do that," Dubow said. "So it gives us some flexibility and the ability to save costs if we can."

Read the rest of this story at NewsWorks

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