School systems assessing possibility of tax anticipation notes

Published 6:54 pm Friday, November 6, 2009

Whitfield and Dalton school officials say they have good news despite tax notices going out later than in previous years.

In lean financial times, school systems sometimes have to borrow money for a month or two while waiting for funds from property taxes to come in. That doesn’t appear to be a concern this year, said Whitfield County Schools chief financial officer Kenny Sheppard. Tax bills go out next week and are due Jan. 9.

“I project that we’ll get through the year until the collections start coming in,” Sheppard said.

The board kept its property tax rate of about $14.76 per $1,000 of property value. Because of a weak economy, the rate is expected to bring in about $325,000 less than the year before, for a total of $27.63 million. The total budget is $107.9 million, and a majority of the money comes from state resources.

Dalton Board of Education chairman Steve Williams said that school system won’t have to borrow money this year through a tax anticipation note.

“We haven’t done one in a couple or three years, so we don’t think we’ll have to do it this year either,” he said.

The property tax rate for Dalton Public Schools is about $7.85 for every $1,000 of property value. It’s expected to bring in about $28.9 million in local taxes, though last year it brought in $29.5 million. The total budget is about $59.6 million.

Tax bills used to go out in October and be due near the end of December, but they’ve been mailed a few weeks later than that for the past couple of years because of local governments not setting their property tax rates until later in the year.

The Murray County Board of Education recently authorized a tax anticipation note allowing the school system to borrow money if needed, but officials haven’t borrowed money yet. Superintendent Vickie Reed said she should know by the end of the month whether a loan will be needed.

“We anticipate (having to borrow money) by doing that note, but we’re hoping we don’t have to,” she said.

Finance director Steve Loughridge was out of town, and Reed couldn’t immediately say how much money the school system has in reserves.

The school tax rate in Murray is $15.50 for each $1,000 of property value. The tax is expected to bring in about $13 million, and the total budget is about $53 million. Last year, the rate brought in $14.7 million.

Property tax notices went out in early October in Murray County and are due Dec. 1. Dean Donehoo, administrative services director for Murray County Schools, said any money borrowed would need to be repaid by Dec. 31.

“It’s a very short term indebtedness, and it’s very common in school systems,” Donehoo said.

Whitfield Board of Education chairman Jerry Nealey said property owners will see their bills go up this year, but it’s not because of the school system.

The state homestead tax relief grant — money state government used to provide to local governments to offset inflation increases — has disappeared due to Georgia’s budget crunch. Whitfield County tax commissioner Danny Sane said the increases for most property owners will be between $40 and $170.