JACKSON TWP — The Seneca Valley School Board decided against using a loan from NexTier Bank last month to help pay day-to-day costs.

The loan was approved by the school board in June and only discussed as a backup option in case revenue streams dried up in the summer months. The loan, also called a tax anticipation note, was not to exceed $5 million.

Those revenue streams often do get thin, according to business manager Lynn Burtner, because property taxes don’t start arriving until August and because the school district hadn’t yet received a refund of several hundred thousands dollars from the state.

The loan became necessary to consider, Burtner said, because the school district “can’t stop doing business just because it’s summertime.”

Burtner said the district came within about $500,000 of actually needing the loan to pay its bills in mid-August, but soon realized it would “squeak by” without having to do so.

The loan would have been needed to cover day-to-day costs because the school district’s reserve fund at the time could only cover about a month’s worth of operating costs, including salaries and other expenses.