|New Lenox Fire Protection District to Vote on Securing Tax Anticipation Warrant|
|By New Lenox Fire Protection District|
|March 19, 2018|
At the Monday, March 19th New Lenox Fire Protection District Board of Trustees meeting, the trustees will be voting on whether or not to obtain a $750,000 Tax Anticipation Warrant to cover the NLFPD’s budget deficit.
Tax Anticipation Warrants are frequently issued by units of local government, such as a fire district, to bridge the gap between the receipt of property tax revenues and ongoing expenditures. Typically, tax revenues are received in two primary installments during the year, while expenditures must be made on a daily basis to operate. Short-term borrowings, such as warrants and notes, may be used by a governmental unit to cover deficits that may arise as a result of this timing.
Notes and warrants enable governmental units to borrow against next year’s tax revenues to meet cash flow needs. Federal tax laws require an analysis of a governmental unit's cash flow needs if the borrowing is to be done on a tax-exempt basis. The need is demonstrated by preparing month-by-month cash flow estimates for the funds for which the borrowing will be made.
The NLFPD receives revenue from property taxes twice per year. The district’s current funds are anticipated to run out by the end April, and no tax dollars will be received until mid to late June. The Tax Anticipation Warrant would cover the district’s expenditures during the couple months prior to receiving the next tax revenues.
The primary mission of the New Lenox Fire and Ambulance Protection District is to provide a range of programs designed to protect the lives and property within New Lenox Village and Township from the effects for fires and sudden medical emergencies or exposure to dangerous conditions created by man or nature with professional, compassionate, and quality service.