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Board approves intra-fund transfers and authorizes $1.8M tax anticipation note
Summary
Directors approved a resolution transferring appropriations within the local grant fund and authorized a $1.8 million tax anticipation note to manage seasonal cash flow; finance staff said the TAN net cost is roughly $40,000 and a May state school fund adjustment should improve the year-end position.
The board approved two finance items brought forward by district finance staff: an intra-fund transfer within the local grants fund (Resolution 25.610) to correct an accounting variance, and a resolution authorizing a tax anticipation note (Resolution 25.2609) for up to $1.8 million to address seasonal cash-flow timing.
Finance staff explained that state school fund payments and property-tax timing can create a temporary shortfall late in the fiscal year. Mr. Peterson said a pooled TAN keeps borrowing costs lower; he estimated the net cost to the district of the planned TAN at about $40,000. He also said the district expects a May state school fund adjustment of just over $980,000 that will meaningfully help the year-end picture.
The transfer within the local grants fund was described as a reallocation of about $30,000 between functions to give legal authority to spend committed grant funds and was approved by the board. The TAN resolution was also approved and the CFO was directed to complete the borrowing.
Directors discussed the district's longer-term goal of building ending fund balance to avoid future TANs as well as the cost pressures in providing special-education and high-cost services.
