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Treasurer outlines $2.53 million tax-anticipation note to finish athletic upgrades
Summary
District treasurer presented details of a $2,534,000 tax-anticipation note to complete athletic facility work, including bids, estimated interest and repayment timing; board was informed but took no separate vote on the financing.
Amy, the district treasurer, told the Amherst Exempted Village Board of Education that the district received seven bids for a tax-anticipation note to finish athletic upgrades and that the district’s low bid was from Webster Bank at a 4.11 percent interest rate.
The treasurer said the actual tax-anticipation note amount is $2,534,000. She gave the board an estimate of total interest over a six-year payoff at about $462,000, said estimated cost-of-issuance would range between $50,000 and $134,000, and noted the structure includes a call date as early as Dec. 2027 with no penalty for early payoff. She also said the first principal payment would not be due until Dec. 1, 2026 and that the district would have two interest-only payments before that date.
The nut graf: the financing was presented to explain how the district plans to bridge cashflow delays tied to a shift in inside millage collections and to ensure the permanent improvement fund can meet its debt-service obligations while the capital-improvement plan and athletic work continue.
In presenting the item, the treasurer said the note was needed because a movement of inside millage caused collections to be delayed about 12 months; that delay prompted the need to place short-term debt to maintain cash for the athletics project. She reiterated there is no early-payoff penalty and the structure allows the district to call and refinance the note if lower rates are available in 2027.
Board members asked or were offered an opportunity to ask questions during the treasurer’s presentation. The treasurer also reported that overall expenditures are up compared with last year in most categories, that capital spending is being held at about $699,000 pending implementation of the capital-improvement plan, and that this time of year is low on cash until the district receives its first tax advance.
The treasurer told the board that the district may need a special meeting in the week of Feb. 7 to consider construction bids and a guaranteed maximum price so the athletics project would not be delayed.
No separate formal vote on the tax-anticipation note itself was recorded in the transcript excerpt of the treasurer’s presentation; the item was presented as an informational financial update and scheduling note.
Ending: The board was briefed on the financing details and potential next steps; if the board chooses to issue the note or accept a specific lender recommendation, that decision would appear on a future agenda or at a specially called meeting.
