The Stafford Municipal School District (SMSD) Board of Trustees convened on September 22, 2025, to discuss the issuance of a $7 million tax and revenue anticipation note. This financial strategy aims to address cash flow challenges faced by the district, particularly due to the timing of tax revenue collection, which typically begins in late December or early January.

During the meeting, it was noted that the district received bids from four financial institutions, with Texas Capital Bank offering the lowest interest rate of 3.48%. This rate represents a decrease from previous years, where rates were higher, such as 3.92% from Regions Bank last year. The board expressed satisfaction with the lower interest rate, highlighting its positive impact on the district's budget and operational capabilities.

Clarence Greer, a financial advisor, emphasized the importance of this note in managing cash flow, especially at the start of the school year when many expenses arise before tax revenues are received. The board discussed the necessity of maintaining a strong fund balance to minimize future borrowing needs. The goal is to build the fund balance to approximately $10 million, which would provide sufficient liquidity to cover operational costs without relying heavily on short-term borrowing.

Trustees acknowledged the progress made in financial management and commended the efforts of the administration in securing favorable borrowing terms. The board anticipates that with continued fiscal discipline, the reliance on such notes may decrease in the coming years.

The meeting concluded with a commitment to monitor the district's financial health closely and to revisit the need for future borrowing as the fund balance grows. The next steps include finalizing the issuance of the note by October 1, 2025, and continuing to build the district's financial reserves.