
Henry County Schools took steps in June 2023 to payoff some of its bond debt and commit excess revenue towards capital projects. Board action occurred at the Monday night, June 12, meeting.
The 2023 bond debt payoff saves $7 million in future interest. The capital funds will pay for projects within the district’s five-year strategic plan.
2023 Bond Debt Payoff
Henry County Schools issued bond debt in 2016, and again in 2018, to finance education SPLOST V projects. Some projects in this program included McDonough High & Middle School, the Fairview Performing Arts Center and school renovations.
The district received a one-percent local sales tax from 2018–2022 to pay off a portion of this bond debt. Following strong growth in sales tax collections the past two years, the district had excess funds available to pay off a portion of the debt early.
The district approved expending $31.9 million to pay off $31.4 million in principal on the 2016 series bond debt. This will save the district an estimated $7 million in interest between now and 2030. After the early debt payoff, about $91 million will remain owed on the 2016 series bonds. The district’s total bond debt is valued at $328 million — $210 million of which was issued in 2021 for E-SPLOST VI.
Because the sales tax collections were specifically for E-SPLOST V, the debt payoff was the only permissible method to spend the funds. A new period of collections began this January for E-SPLOST VI. Its collection period spans through Dec. 2027.
Capital Projects Accounts
In addition, the district committed $19.7 million towards capital project accounts. These funds will go towards capital projects over the next three years. Specifically, the below accounts will see funds:
- Furniture and Equipment – $8,148,719
- Safety and Security – $10,000,000
- Athletics – $1,292,080
- Safety Personnel – $300,000
The above funds were available after local property tax revenues exceeded budget expectations. The district collected $228.4 million in local tax revenue in the past year, compared to a budget amount of $209 million. This represents an additional $19.3 million.
The district established the capital projects accounts in summer 2021. Henry County Schools previously moved $16.5 million into the capital accounts. The funds go towards upgrades such as classroom furniture and athletic equipment replacement.
Featured image shows the Henry County Schools logo. HCS photo.
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