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BoE wont need a TAN
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Effingham County Board of Education has bridged a cash availability gap between the start of school and property tax collection payments and likely will not need a tax anticipation note this year.

“We have sufficient cash going forward, and I don’t think a TAN will be needed,” said Ron Wilson, BoE finance director, during the Oct. 5 meeting.

Each year, the BoE faces the possibility of taking out a TAN, a short-term loan that would have be repaid by the end of the year, to be used to pay bills until tax collections and state grants begin to come in.

The BoE had a $6.9 million balance in its general account at the end of August and collected $489,214 in taxes that same month.

Property tax bills went out Sept. 15, bringing in an additional $494,886. Those collections, along with another an additional $429,000 collected as of the Oct. 5 meeting and more than $1 million in state grants collected the following day, bolstered the system enough to make a TAN loan unnecessary, which was a relief to BoE members.

“This is really strong. I know we’ve been discussing the TAN,” Wilson said. “I know it’s been kicked around as far as a relief and whether we’d need one or not. But I believe we’ve bridged that short-term cash need and we’re now starting to collect money from the grants … and tax bills have hit the streets, people have started paying.”

The general fund had approximately $4.4 million in the bank Oct. 7 after paying benefit and various expenses.

“Mr. Shearouse directed us to do all the legwork for a TAN and to get ready if we did need it, and we did all that,” Wilson said. “Right now, we’ve got money flowing in. Glad to see it.”