As of Tuesday, September 18, 2012
© Copyright 2013
Rockdale Citizen
CONYERS -- For the third time in four years, Rockdale County Public Schools will borrow money to avoid a year-end deficit.
The Rockdale County Board of Education agreed during its monthly work session Thursday night to borrow $8.5 million on a tax anticipation note. Board members Wales Barksdale and Katrina Young were not present at the meeting.
RCPS also borrowed a TAN in 2011 and 2009, for $6 million each.
RCPS Superintendent Richard Autry had asked the board to approve the TAN again this year, but at a greater amount.
"Rockdale County Public Schools require a TAN to cover the current expenses of the school system," he said. "We have estimated the cash flows for the system and determined that a temporary loan of $8.5 million is required."
A TAN is a short-term loan that is borrowed in anticipation of collecting taxes in the future.
The school board recently adopted a millage rate of 24.5 mills for the year, the same rate as last year. RCPS Chief Financial Officer Lee Davis previously said that taxes received this year will be a 4.6 percent drop, or more than $2.6 million, from the previous year.
RCPS is otherwise a debt-free school system, which has been a point of pride for the system, as that is not the case for many other governmental institutions, board members have said.
The system will have to pay $23,138.87 in interest if the TAN is paid off by Dec. 31, 2012, when the loan will mature.
The TAN is expected to be borrowed from SunTrust Robinson Humphrey at a fixed rate of .98 percent; RCPS borrowed from the same company last year and officials said then they were able to secure a low rate since that is the firm RCPS uses for its checking account.
In 2011, RCPS paid .884 percent interested, and in 2009, it paid 2 percent on the TANs.
Davis said the system plans to receive enough revenues to pay off the loan early, as it did last year, when it paid off the $6 million loan 24 days early to save more than $5,000 in interest. Davis said he expects the interest expenses will be less than budgeted for this loan too.
More like this story
- Rockdale schools seek to borrow $6 million ( September 14, 2011 )
- RCPS pays off debt early ( January 3, 2013 )
- Rockdale school board approves tax loan ( September 26, 2011 )
- Rockdale schools debt free again ( January 12, 2012 )
- Loan OK'd by BOE ( May 30, 2009 )
Comments
WayBack 8 months, 1 week ago
Wonder how much it's costing our school system to educate out-of-county students. Because there are a LOT of out-of-county students. Don't believe me? Ask the kids. Or hang out at the schools after hours-- there are plenty of them hanging out until six or so, waiting for their folks to drive out from DeKalb and Henry to pick them up and take them back.
mikeyd 8 months ago
It is truly amazing, I agree with you 100%. I know when we moved into the county it was like the Spanish inquisition, Name, address, telephone, Great grandmothers maiden name, and surprisingly.........PROOF OF RESIDENCY!!!!!!!! and believe it or not... they actually checked!
EarlyBird 8 months ago
"RCPS is otherwise a debt-free school system, which has been a point of pride for the system, as that is not the case for many other governmental institutions, board members have said."
Yeah, debt free because the last session the buffoons on the BOE raised millage to be the highest of any county in the state of Ga. Thank god most of them did not run for reelection. Barksdale's BOE = a ship of fools.
Elmo 8 months ago
Living on borrowed money is "debt free"? Where did they go to school, Obama University?
At least this bailout is coming from an American source, and not China, I guess that's saying something positive about it.
I'm no accountant, for sure, but if I spent all of my income before the year was out, and had to borrow money to finish out the year, I would still have to live, PLUS, pay back the loan. Then, the next year I'll run short again because I had to repay last year's loan...pretty soon I in a vicious debt cycle, like paying a car payment with a credit card.
But the article is so intent on extolling the virtues of promptly paying the loan, it forgot to tell us what caused the deficit in the first place,
And the beat goes on...
Rob 8 months ago
Living on borrowed money is "debt free"? Where did they go to school, Obama University?
Priceless!
Rob 8 months ago
Another reason we all need to vote YES for the Charter School Amendment on the ballot in November! These local school board folks are complete imbeciles!
livingart 8 months ago
24.5 mils ??? Is that legal.....
ClaytonBigsby 8 months ago
Only legal here. A generation ago, Rockdale voters elected to pay more in school taxes. We got a system that was the envy of the state for a while. Now, we pay more than anybody in the state and I don't see what we get for it. Somebody explain to me why we are paying champagne prices and getting off-brand beer in return. What happened to our fine, much lauded school system?
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