Monday, September 16, 2013
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CONYERS — The Rockdale County Board of Education approved a resolution for an $8 million tax anticipation note at its work session last week.
The loan, which was recommended by Superintendent Rich Autry, will be used to bridge the gap between tax collections and expenses until the end of the year. By law, the TAN must be repaid by Dec. 31.
SunTrust Bank will make the loan to the school system at an interest rate of .94 percent. Interest expense for the loan will be approximately $20,000.
The school system took out an $8.5 million TAN in the fall of 2012 and repaid the note in early December of that year. By paying off the loan early, the system saved $5,553 in interest.
Rockdale County Public Schools Chief Financial Officer Lee Davis told board members that this loan will likely be paid off early, as well, once tax collections start coming in.
The school system receives most of its property tax revenues in November and December.