Board ratifies $3 million cash‑flow borrowing to cover January debt service

The Byron Public School District board on Jan. 6 voted to ratify the sale of $3,000,000 in general‑obligation aid‑anticipation certificates (AACs), approving a resolution to borrow for short‑term cash‑flow needs.

Jeff Seeley of Ehlers presented the sale‑day report and recommended issuing $3,000,000 in AACs after receiving two bids. The low bid produced approximately $87,008.33 in interest; Seeley said the underwriter paid a roughly $20,000 premium that reduces the district’s net interest cost to about $67,000. He explained AACs are a common short‑term borrowing vehicle for school districts and noted the single payment on this borrowing will be due Sept. 30, 2025.

Board members pressed staff on urgency and alternatives. One board member asked whether declining the borrowing would prevent the district from fully meeting payroll; district leadership and Ehlers said it would put the district at significant cash‑flow risk because state aid receipts arrive unevenly and the district’s debt service this January totals about $4.9 million. Ehlers added that state credit enhancement is available only upon default and that rating agencies may place the district under surveillance because of the cash‑flow borrowing and recent budget pressures.

After discussion, the board moved and held a roll‑call vote. The recording officer called the roll; Jeremy, Carrie, David, Lisa, Kelly and Alicia voted aye. The motion carried and the board ratified the resolution authorizing the $3,000,000 AACs.

The board signed the necessary documents to ratify the earlier authorization and staff were asked to complete outstanding bid/proposal signatures and bond‑attorney paperwork that had time‑sensitive deadlines.

Next steps: staff will finalize closing paperwork and complete required filings; the single payment obligation is scheduled for Sept. 30, 2025.