Stephens Co. BOE To Put Out Bids For Tax Anticipation Notes

The Stephens County Board of Education approves putting tax anticipation notes out to bid.

At a called meeting on Monday, the Stephens County Board of Education unanimously voted to allow Stephens County School Superintendent Bryan Dorsey to put out a bid request for up to $7 million in tax anticipation notes.

Dorsey said that the school system is running low on operational cash and will need to borrow the money.

“TAN’s will be used to support the general operations of the school district until property taxes are received,” said Dorsey. “This TAN will be paid back by December 31, 2015.”

Dorsey said that the school system has used tax anticipation notes for the last several years.

Last year, the school system borrowed a total of $4.75 million and paid it back by December 31, 2014, using property tax revenue collected in the Fall to do so.

Dorsey said that the goal is to not borrow more than that this year, but adds there are no guarantees because of the school system’s cash situation.

“We have been borrowing earlier each year,” said Dorsey. “This year, we borrowed in March. This year … we might make February (without borrowing), we might, but it is going to be one of those fine lines to ride.”

The Board of Education will have to approve a final bid from those presented on the tax anticipation notes before the school system can begin using them.