GEORGETOWN — School board members voted on Saturday to issue $1 million in tax-anticipation warrants, borrowing money that they expect to repay when local property-tax revenues are received in August or September 2014.
Georgetown-Ridge Farm School Superintendent Jean Neal said that the revenue from the warrants would be available if needed to cover expenses in the upcoming months, and would be repaid by Dec. 31, 2014, with an interest rate of 3 percent.
"There are six weeks each summer when we receive no general state aid payments, and this will make sure that we will have revenue to pay our expenses," Neal said.
This is the third time in 16 months that the board has issued tax-anticipation warrants. The board issued $850,000 in warrants in August 2012 and $1 million in warrants in February 2013, paying about 3 percent interest each time.
The board also voted on Saturday to loan $300,000 from the district's building fund to the district's education fund, and to loan $100,000 from the district's transportation fund to the district's education fund.
Neal said the inter-fund loans will allow the district to pay off the remainder of the February 2013 warrants —about $880,000 — by the Dec. 31, 2013, deadline.
The district expects to generate about $3.27 million in local property-tax revenue in 2014, and has a $9.04 million budget for the 2013-14 fiscal year.
School board President Kevin Latoz said he personally did not like to issue tax-anticipation warrants, but that it was necessary.
"Our budget is balanced," Neal said. "The selling of tax-anticipation warrants is a strategy that is available to us to ensure that our fund balances are in good shape."
The Georgetown-Ridge Farm School Board's next regular meeting is set for 7 p.m. Jan. 13.