Fayette County, Texas - La Grange ISD 3/18/2024

Budget Workshop Considers Maintenance Tax Note

Courtesy of Jeff Parker:  LGISD “Budget Workshop” meeting 3/18/24 to discuss taking out a “Maintenance Tax Note”, which would be a loan of $2,000,000 at 4.75% for 15 years. The purpose of the note is to tackle maintenance and construction projects “now” rather than at the rate of the yearly amount budgeted for capital outlay — approximately $285,000 per year. The money to pay principal and interest on the note would then come from the capital outlay budget item. Debt service would be about $186,000, leaving around $100,000 yearly for contingencies. $1.5 million of the note would be applied to a list of projects the administration proposed to the board. The other $0.5 million would be held in reserve. After outlining the concept of the Maintenance Tax Note, the administrators present went over the prioritized list of projects. Board wants to look into some of the projects in person, so a future Budget Workshop meeting will be held for “show and tell”.

Audio Recording

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