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North Wasco plans a $1.8M tax anticipation note to smooth cash flow
Summary
CFO Randy Anderson said the district plans to issue a Tax Anticipation Note of $1.8 million this year—up from last year's $1.535 million—to bridge intra‑year cash timing; the Board recently authorized the borrowing.
District staff told the budget committee the district will again issue a Tax Anticipation Note to manage intra‑year cash flow, allowing the district to meet obligations before property tax receipts arrive.
Mr. Anderson reminded the committee that last year's TAN issuance totaled $1.535 million; the district plans a larger $1.8 million note this year, which the Board has already authorized. "While typically structured as six‑month notes, there is consideration of running this year’s note longer—up to the legal limit of one year—to potentially offset underwriter and interest costs through strategic investment of proceeds," Anderson said.
Officials said cash flows are more stable this year but that low borrowing costs make the TAN a prudent measure to bridge timing gaps. The committee did not take a formal vote on the matter during this meeting; Anderson said the issuance process is underway.
