Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Debt Cashflow topic
No spam. Unsubscribe anytime.
Board authorizes up to $2.5 million in aid-anticipation certificates to cover cash-flow shortfalls
Summary
The Kenyon-Wanamingo School District approved a resolution to issue up to $2.5 million in aid-anticipation certificates to cover projected fiscal-year cash-flow gaps; the sale is planned for mid-August with repayment due 09/30/2026 and a true interest cost cap of 5%.
The Kenyon-Wanamingo School District board voted to authorize the negotiated sale of aid-anticipation certificates sized at $2,500,000 to address projected cash-flow shortfalls during the coming fiscal year. Steve Pumper of Teammate Financial told the board the district borrowed $3,000,000 last year and projects a low-point balance of about $968,000 next year, explaining the certificates would be repaid by Sept. 30, 2026.
"You borrowed at this time last year $3,000,000," Steve Pumper said during his presentation, adding that state rules limit borrowing to 75% of that year's state aid and that a credit-enhancement program is available to lower interest rates. The resolution in the board packet authorizes district officers to execute the sale provided the true interest cost does not exceed 5 percent. The board approved the resolution on a roll-call vote recorded in the transcript as 5 to 0.
