Bibb County School Board adopts millage rate after audit findings, $35M borrowing plan
The district adopted a 14.674-mill rate after a moderate-risk designation tied to four audit findings and a $35 million short-term borrowing plan.
MACON, Georgia (41NBC/WMGT)- The Bibb County Board of Education approved a property tax increase Wednesday while the district remains under a state moderate-risk designation tied to financial reporting issues.
The vote keeps the school district’s millage rate the same as last year, but still counts as a property tax increase under Georgia law.
The board adopted a millage rate of 14.674 mills.
Because of changes in the tax digest, that rate is a 9.33% increase for taxpayers and 1.252 mills above the rollback rate.
The rollback rate is the rate that would produce roughly the same property tax revenue as the year before, not counting new growth.
What it could mean for property owners
The school district estimates the tax increase on a home with a fair market value of $225,000 would be about $103.92 for the year.
For non-homestead property with a fair market value of $225,000, the district estimates the increase would be about $112.68 for the year.
An individual property owner’s bill can vary based on assessed value and exemptions.
Vote comes after audit with moderate-risk designation
The millage vote comes after the Georgia Department of Audits and Accounts designated the Bibb County School District as a moderate-risk school district.
According to an Aug. 20 action memorandum from Superintendent Dr. Dan A. Sims and Chief Financial Officer Eric Bush, the designation requires ongoing attention from the board, superintendent, and finance department.
It’s important to note that the audit received an “unmodified opinion”, which means the financial statements were presented fairly in all material respects. So this is not a “bad audit” report, but the audit did identify four financial statement findings that led to the moderate-risk designation.
Corrective action plan approved
According to board documents, the district’s corrective action plan lays out steps to address the audit findings, assign responsibility, identify evidence of completion, and provide ongoing management and board monitoring.
The first finding involved receivables, revenue, and unavailable revenue accounts. The district said it did not properly adjust receivables and related balances in various funds as of June 30, 2025. General Fund adjustments decreased accounts receivable by $195,562, decreased revenue by $769,101, and increased unavailable revenue by $573,539.
The second finding involved expenditures and accrued liabilities. The district said audit adjustments decreased General Fund accounts payable and expenditures by $1,735,566 and decreased SPLOST Fund accounts payable and expenditures by $4,427,725.
The third finding involved capital assets. The district said certain capital items were excluded from capital asset detail for the year ending June 30, 2025.
The fourth finding involved the district’s Section 125 Cafeteria Plan. The district said it previously reported the plan as a custodial fund, but later determined it should be reported within the General Fund. The classification was corrected.
For each of the four findings, the district listed the cause as management oversight.
More reporting required until designation is lifted
The moderate-risk designation also requires additional oversight.
The district is subject to audit oversight by the Georgia Department of Audits and Accounts. If the district continues using an outside CPA firm, that work remains subject to DOAA’s CPA engagement authorization process.
The superintendent must also provide each board member with a report of anticipated expenditures by budget function by the 10th business day of each month. Board members must review and acknowledge the report in writing.
Those monthly reports and written acknowledgements must continue until the district receives confirmation that the moderate-risk designation has been lifted.
The district must also publish a statement of actual financial operations in the county’s official legal organ once a week for two consecutive weeks by September 30, 2026.
Board previously authorized $35 million TAN
The school board also authorized a tax anticipation note, or TAN, in August.
A TAN is a short-term loan used to help the district cover expenses before most property tax revenue comes in later in the year.
The district said it pays salaries, benefits, and operating costs throughout the year, but receives most of its property tax revenue late in the year. The TAN is designed to bridge that gap.
State law requires the district to repay the TAN in full from 2026 tax collections on or before December 31, 2026.
According to board documents, the district will borrow $35 million through two notes.
Both notes were expected to close on September 1, were to be fully funded at closing, and are due December 31.
The Series 2026A Note is $22.4 million, tax-exempt and has a fixed interest rate of 3.42%.
The Series 2026B Taxable Note is $12.6 million and has a fixed interest rate of 4.33%.
The district said both rates are fixed, meaning it knows the full interest cost at closing.
That total cost is about $440,000, including about $255,000 on the Series 2026A Note and about $185,000 on the Series 2026B Note.
The district said it will invest the proceeds until the money is needed, which will recover part of the cost.
Why the repayment date matters
According to a board memorandum, staff also negotiated the repayment date with Truist.
The district approved the millage rate on September 9. The tax commissioner is expected to mail 2026 tax bills on September 25.
Taxpayers’ first bills are due October 26, and the second bill is due November 24. The district receives its share up to a week after the tax commissioner collects the money, meaning the last of the 2026 collections is expected to reach the district in early December.
Georgia law sets December 31 as the latest date the district may carry the borrowing, so staff asked Truist to move the due date from December 15 to December 31. Truist agreed.
District staff said the extra time gives the district the full period allowed by law for collections to arrive.
Why part of the borrowing is taxable
The district explained in documents that federal tax law limits how much the district can borrow on a tax-exempt basis. School district staff worked to size the tax-exempt Series 2026A Note at $22.4 million, which the district said is the full amount allowed under federal law.
To make sure enough money was available if tax collections were delayed, staff structured the remaining $12.6 million as a taxable note.
The taxable portion is expected to cost about $39,000 more in interest over the four-month borrowing period.
