The Burlington Area School District approved a parameters resolution authorizing temporary borrowing not to exceed $2,600,000 to meet short-term cash-flow needs, the board decided after a staff presentation on the annual practice.

The district will participate in a pooled tax-and-aid anticipation note program arranged by PMA, a firm that previously managed the district's 2018 referendum proceeds. The resolution authorizes district administration to finalize paperwork and sign the note once final pricing is available.

Supervising staff explained the borrowing addresses predictable timing gaps: state aid and tax-levy receipts are concentrated in certain months (state aid quarterly payments and a large tax settlement in January), while payroll and bills fall in months when cash balances are lowest. Staff said the pool approach produced favorable rates last year and that this year's resolution caps the interest rate at 6 percent.

Board members asked clarifying questions and then voted on the parameters resolution. The roll call vote was unanimous among members present; one member was absent. Staff said the principal payment on the note would be due in September 2026, after the district receives routine state aid and tax settlement receipts.

The board chair presented the annual explanation that the district pursues borrowing only when cash shortfalls occur and that raising fund balances would reduce future need for short-term notes.

Details the board provided: the resolution sets a maximum not-to-exceed principal of $2,600,000, a maximum interest rate of 6 percent, participation in PMA's pooled issuance, and authorization for district administrators to accept final pricing and sign closing documents.

No changes to tax rates or long-term borrowing were proposed in this action; it was described as a short-term cash management step.