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Board warned that failing to approve budget and levy would jeopardize September payroll
Summary
Board members asked staff what would happen if the budget is not passed by the July 30 filing deadline; administration said TAN borrowing depends on an approved budget and tax levy and warned lenders will not lend without both, putting September payroll at risk.
Several board members pressed district staff on the timing and cash-flow consequences if the board does not approve the FY27 budget and tax levy promptly.
"If we don't pass a budget on July 30, we won't have enough time to work with the lenders to secure the additional TANs that we need in order to make payroll," the acting chief budget officer said, warning that the district's current TAN borrowing capacity would be exhausted in August. Staff explained the TANs (tax anticipation notes) are short-term loans backed by expected property tax revenue and that lenders require the tax levy and budget in place before extending financing.
Board members asked whether the tax levy and budget must be acted on together. Staff replied that lenders want both documents and that the tax levy resolution is distinct but practically interdependent with the budget: "What authorizes the county is the tax levy resolution... What validates the tax levy, that's the budget," a district staff member said.
Board members also asked about alternatives, and staff said they are pursuing multiple revenue actions—including IGA outreach, Medicaid reimbursement processes, and advocacy with city and state partners—but emphasized that these are uncertain and that the July 30 action is needed to avoid an immediate cash-flow emergency.
