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Finance staff outlines short‑term bond strategy to bridge 2023 referendum cash flows
Summary
Finance staff updated the committee on using bond anticipation notes to manage referendum cash flows: a $50M BAN issued in August will be paid in March and staff arranged a short‑term refinancing at roughly 2.75% with plans for a permanent series in May–June.
Finance staff briefed the committee on the board's strategy to manage cash flow for 2023 referendum projects and upcoming debt actions.
CFO Crocker summarized the approach, noting the district issued a $50,000,000 bond anticipation note (BAN) last August. He said the BAN was competitive — with multiple bids — and described plans to close a short‑term refinancing in mid‑February at approximately 2.75% to provide cash until the district issues permanent bonds in May–June.
Crocker described the rationale: long‑term bond market rates were unfavorable in January, prompting staff, the financial adviser and bond counsel to favor short‑term borrowing while monitoring market improvements. The permanent financing plan anticipates issuing about $131,000,000 to cover first‑year referendum needs with further series in years two and three as projects proceed.
Staff also recounted recent credit rating conversations with Moody's and Standard & Poor's and said ratings remain at strong levels (Moody's "Aa1" and S&P "AA"). The item was informational; no board action was required in committee that day.
Finance staff said a debt presentation by their financial adviser is scheduled for the March work session, when the board will see more detailed cash‑flow timing and options for permanent issuance.
