Longview:  Tax Notes ‘Called’

posted on July 20 - 08:30 AM
By Joe - TexasISD.com
 

Board members also approved a resolution calling the District's Unlimited Maintenance Tax Notes (Series 2020) for redemption prior to maturity.  Dr. Guidry explained that last October the district issued a "Maintenance Tax Note" in order to purchase new school buses."The strategy in issuing a tax note was that LISD could earn more money in Certificate of Deposit (CD) interest than we would pay out in interest with the notes," he said. "Currently we are experiencing historical lows in interest rates, and what has changed is the interest we are receiving in our CDs."

[07192021-board-meet-2] As a result, Dr. Guidry said, the LISD Business believes it is prudent to recall the Series 2020 tax note principal balance of $1,433,000.

"This will relieve future budgets of an estimated $450,000 annually and reduce the amount of interest paid towards these notes," he said.

Purchase will be covered out of the district's fund balance, Dr. Guidry said.

Please click here to download the resolution and related documentation.