The taxpayer's will be paying "hidden interest" on the Eisenhower QZAB bond unless action is taken by the WCSD Board to change the resolution passed at Monday night's board meeting.
As reported in the WTO and according to the Resolution's payment schedule, one of the bond payment due dates is Sept. 1st which is incredibly inept. Here we are getting a no/low interest QZAB loan, however, one of the payments have to be made Sept 1st.
The property taxes due to the School District's first payment (which is discounted to the tax payer) is Sept. 30th and the District usually starts receiving those monies later in October. This means with a low general fund balance, the School District may have to borrow money (a Tax Anticipation Note/Loan) because the WCSD will not have collected sufficient property tax monies. To add to the problem, I recall the District has a previous bond payment already on September 1st. So now the taxpayers are paying interest on the tax anticipation note for operating funds (salaries, etc.) plus previous bond payments and now the QZAB bond payments for several months.
Both the Chairman of Finance, John Grant and the Business Manager should know this. The additional interest alone on the tax anticipation note could either help pay for a teacher's aide or possibly much of a full time teacher's salary!
I am hopeful the date of payment for the new QZAB bond will be moved to November 1st (and May 1st) to avoid this additional interest being paid for a no interest bond. I am at a loss why this wasn't considered before.
Well, It's just the taxpayer's money and the money well is bottomless!