Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Finance topic
No spam. Unsubscribe anytime.
Board authorizes $1.9 million aid‑anticipation borrowing to cover fall cash needs
Summary
The Kenyon‑Wanamingo School Board approved a resolution authorizing up to $1.9 million in general obligation aid‑anticipation certificates (series 2026B) to smooth cash flow, with a plan to close in late September and repay within a year.
The Kenyon‑Wanamingo School Board voted to authorize up to $1,900,000 in general obligation aid‑anticipation certificates (series 2026B) to address short‑term cash‑flow needs and to repay prior certificates coming due in September.
Financial adviser Michael Hart told the board the district’s borrowing need has declined from previous years, citing prior annual amounts: “If you go back to 2023, the school district borrowed 3,250,000. In '24, it was 3,000,000. Last year, it was 2,500,000. So we're we're down to 1,900,000 here is the recommendation that you consider tonight.” He explained the tool borrows against expected future state aid, must be repaid by September 30, and that the district’s projected lowest cash position is a negative $1,369,000 in November 2026.
Hart outlined timing and costs: the staff will issue an RFP and seek an underwriter, aim to be in the market the first week of September, close on the certificates around Sept. 24, 2026, with the certificates maturing Sept. 24, 2027. He estimated issuance and professional costs at approximately $93,519 and noted participation in the state's credit enhancement program is authorized as part of the resolution. The resolution also capped interest cost and the principal amount (interest not to exceed 5%; principal not to exceed $1.9 million).
On a roll call following discussion, the board approved the resolution recorded as 6–0. The board authorized the superintendent and a board officer to execute sale documents and complete the issuance.
