Board Authorizes Up to $2 Million Taxable Revenue Anticipation Note to Cover Winter Cash‑Flow
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Summary
The board voted to authorize a taxable tax‑and‑revenue anticipation promissory note not to exceed $2,000,000 with TowneBank at 6% to cover short‑term cash‑flow needs; the motion passed with one abstention.
The Pewaukee School District board on Thursday approved a resolution authorizing a taxable tax‑and‑revenue anticipation promissory note of up to $2,000,000 to manage year‑end cash‑flow needs.
John, the district finance officer, explained the timing mismatch in school revenue streams and the use of short‑term borrowing to cover payroll and operating expenses until tax and state payments arrive in December and January. He said the district’s operating fund balance measured about "27 to 28% of our operating budget" at fiscal‑year end and noted last year the district used an existing line of credit instead of issuing a long‑term note.
Under the resolution, staff will reissue a taxable note with TowneBank at a 6% rate; John said a taxable note reduces issuance costs compared with tax‑exempt alternatives. Statutorily, the notes expire on Nov. 1 of the subsequent year.
Board action: a motion to approve the resolution was moved and seconded. The board recorded affirmative votes and one abstention; the motion carried.
Context: board members said the district monitors reserves and aims to minimize borrowing; this authorization is a routine cash‑management measure to bridge seasonal revenue timing rather than a long‑term debt issuance.
