Board approves up to $15 million tax anticipation note to cover mid‑October cash shortfall

The school board voted unanimously to approve a tax anticipation note (TAN) not to exceed $15 million to cover an anticipated mid‑October cash-flow shortfall. The resolution approving the TAN (resolution 2026-05) passed by roll call vote 4–0.

District finance staff said the district’s revenue is weighted to local property tax collections that arrive later in the year, creating a recurring negative cash position in October. Mister Green, the district finance presenter, told the board that without the TAN the district would face a roughly $7.5 million negative cash flow in mid‑October and that short-term borrowing is a "common practice for school districts to address the funding mechanism that the state has in place." He said staff issued an RFQ, multiple banks responded and Wells Fargo was the most responsive bidder when comparing total interest and fees.

Finance staff reported an all‑in cost for the TAN of about $147,000 in fees; after investing proceeds in the district’s short-term Florida PRIME account, last year’s net cost was about $19,000. The board’s financial adviser and staff negotiated and locked an interest rate of approximately 3.93% shortly before the meeting, according to staff. The note is structured to be executed on Oct. 12 and repaid on Dec. 18.

Board members described the TAN as an operational necessity given the timing of state and local receipts. Mister Dyer said the district’s revenue mix (local-heavy vs. state-heavy) makes the TAN necessary; he and other members praised staff for running cash-flow analyses. At the same time, one board member expressed frustration with the state funding flow and the charter-school funding priority that reduces the district’s available state dollars: "It's a little frustrating that the money goes to the state from our taxpayers, then it comes to us in dribbles, and the very first cut that we take goes to the charter schools," the chair said.

The board recorded the TAN approval as a temporary borrowing instrument to ensure payroll and day-to-day operations through the late-fall tax collection cycle. Staff said the funds will be repaid from property tax collections and that the district previously used similar TAN arrangements in prior years.

Roll-call votes on the TAN recorded Miss Rosario, Doctor Jones, Missus Barenboer and Mister Dyer as voting yes (Doctor Posca absent).