District 3 -- By The Numbers

A treasurer Report was presented at the January 24, 2005 Board meeting by Bob Blumberg. Mr. Blumberg noted that the District's current accounts are in Money Market funds at Harris Bank, where they receive an enhanced Money Market rate. Supt. Hill added that all of the District's funds are in interest-bearing accounts.

Then, came the Tax Anticipation Warrants. These are loans made to the District because tax money will not be received before certain bills and payments are due, so the District needs to borrow money in anticipation of taxes that will come. Since the election is in April, and the county clerk's office can't assess property taxes until after the election, so tax payments and tax distributions to District 3 will be pushed back approximately 3 weeks. Supt. Hill expects that the district won't see any local tax dollars until the end of July.

So, the Board approved by a 6-0 vote (Don Rose was absent) a Tax Anticipation Warrant for $1.3M. Supt. Hill said that he was trying to keep the dollars requested as low as possible because of the interest the district will need to pay on the warrant. He also said that hopefully, as the district's fund balances increase, the need for Tax Anticipation Warrants would be reduced or eliminated. He added, "We didn't get into this [financial situation] overnight, and we're not going to get out of it overnight."

Supt. Hill estimated that the District's cost for issuing the warrant be $25K in interest and fees. Board member Bob Nunamaker asked if there was some way of the district getting a better rate on these warrants. Supt. Hill and Mr. Blumberg answered that, because the bonds issued for a Tax Anticipation Warrant are so secure, that they don't think they could get more than 1/10th of a point better in the rate.