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Board authorizes up to $12 million aid anticipation certificate to shore short‑term cash flow
Summary
The board adopted a resolution authorizing general obligation aid anticipation certificates not to exceed $12 million to bridge timing gaps between receipts and payments; the certificate is payable within the fiscal year and is intended for short-term cash flow.
The Duluth Public Schools board approved a resolution authorizing general obligation aid anticipation certificates of indebtedness in an amount not to exceed $12,000,000 to provide short‑term cash flow for the district.
Member Sadowski moved the resolution and Member Lofeld seconded. District staff said the instrument is a temporary line of credit (160 days in the packet example) used by many districts to smooth timing differences between revenue receipts and expenditures; staff consulted municipal advisor Baird and noted the district has used this approach previously (last in 2015).
Executive Director Zunich said the certificate will not add to long‑term debt because the district intends to retire the certificate when the anticipated aid or receipts arrive. Finance staff will continue to manage invoice timing and accounts‑payable practices to minimize cash‑flow pressure.
The resolution passed by roll call vote with unanimous support.
