SCSD2 approves resolution for 2025 tax anticipation warrant

The Scott County School District 2 (SCSD2) board has approved a resolution authorizing the use of a tax anticipation warrant for the 2025 calendar year. This financial strategy allows the district to borrow money in advance from anticipated property tax revenues, which are distributed in June and December. The temporary tax warrant of $2.5 million will help ensure consistent cash flow for the operations fund to meet expenses throughout the year.

The board discussed the importance of managing cash flow to cover operational costs such as maintenance, transportation, and other non-instructional needs before property tax revenue is received. This process, while common for public entities, involves collaboration with bond counsel and financial advisors to secure the best interest rates and terms for the loans. The approved resolution includes various safeguards, such as ensuring the loan amount does not exceed the expected tax revenue.

District 2 is borrowing a lower amount compared to the more than $4 million in 2024, reflecting some financial progress, though officials noted that cash flow challenges remain. The goal is to finalize the borrowing process and have funds available by January 2, 2025. The loan will be repaid when the district receives its property tax revenue.

The board continues to monitor enrollment numbers and other factors that affect district finances, ensuring fiscal responsibility while maintaining essential operations.