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School board approves $300,000 tax-anticipation resolution as safeguard
Summary
The MSD of New Durham Township School Board authorized tax-anticipation warrants up to $300,000 for the Debt Service Fund as a contingency to cover June payments, after hearing advice from Baker Tilley and the law firm Ice Miller; the board said it would use the warrants only if necessary.
The MSD of New Durham Township School Board on May 13 approved a resolution authorizing tax-anticipation warrants of up to $300,000 for the district's Debt Service Fund to cover anticipated June payments if property-tax receipts are delayed.
Superintendent Sandra Wood told the board that consultants Baker Tilley and law firm Ice Miller had recommended the resolution as a prudential safeguard amid the pandemic-related uncertainty, and she said the district does not intend to draw on the warrants unless absolutely necessary. "Their recommendation is to continue to hold steady," Wood said, and staff will reassess cash-flow projections in three weeks.
The motion to approve the resolution was made by Mark Parkman and seconded by Wayne Hodge; the motion carried. The board did not record a roll-call tally in the minutes provided.
Why it matters: the resolution creates a short-term borrowing option to meet June debt-service obligations should property-tax collections be insufficient or delayed. Wood said staff expect additional information about the property-tax draw at the next review, and Baker Tilley will re-evaluate the district's financial position in three weeks.
Next steps: the resolution is a contingency tool; the district will only issue tax-anticipation warrants if cash-flow conditions require them, and administration will report back to the board after the next financial review.
