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Board previews tax anticipation note and three-year step-down plan to cover summer cash-flow and reduce deficit
Summary
Administration previewed a pooled tax anticipation note (bridge loan) to cover summer cash-flow needs and recommended a structured three-year realignment to reduce at least 50% of the anticipated deficit in year one and 25% in each of years two and three.
Superintendent and business manager Cece Howe briefed the board on a proposed tax anticipation note (bridge loan) purchased as part of a pooled arrangement with other districts and municipal agencies to reduce startup costs and improve rates.
The administration recommended a three-year budget realignment process to address the projected deficit: reduce at least 50% of the anticipated deficit in year one, then reduce the remainder by 25% in year two and 25% in year three. The board was told bond counsel has not yet returned a resolution and final action would be taken after counsel's input, expected by the April 22 meeting.
Howe said the district would not need to take immediate action to borrow tonight but would return with a resolution and recommended motion on April 22 once counsel and final documents are ready.
