Huntington Nets Large Savings in Sale Tax Anticipation Notes
Breathing a sigh of relief, Huntington School District officials announced that the sale of tax anticipation notes will yield a savings of more than $705,070 in interest costs after bids from financial institutions were opened. Net interest costs are set at 1.68 percent.
The district annually issues TANs to fund operations while it waits to receive property tax revenues from the town. This year’s TAN sale amounts to $27 million and will result in net interest expenses of $344,929.64, according to Huntington Assistant Superintendent David H. Grackin.
“We have budgeted for $1,050,000 for interest in this area,” Mr. Grackin said. The higher figure was used because the district feared sharply rising interest rates and wanted to protect taxpayers as part of its conservative budgeting strategy. Those interest rates haven’t materialized.
J.P. Morgan Securities provided the district with the best rate for the entire $27 million issue. The savings in interest costs will ultimately benefit property owners by holding down next year’s potential tax increase.
“The bottom line is that our taxpayers will save a substantial amount of money,” Huntington Superintendent John J. Finello said.
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