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Board authorizes short-term tax anticipation note to cover summer cash flow
Summary
The board adopted Resolution No. 5 authorizing a short-term tax anticipation loan (TANS) to bridge payroll and cash-flow needs until property tax receipts arrive in November; staff said interest is paid only on amounts drawn.
The Seaside School District board voted to adopt Resolution No. 5 authorizing a tax anticipation note (TANS) to cover short-term cash-flow needs between summer payroll and fall property-tax receipts. A district staff member explained the instrument is a short-term security (less than one year) repaid with future tax revenue and noted districts commonly use TANS for payroll bridging and cash reserves.
Board members asked whether interest applies to the whole loan or only to withdrawn amounts; staff said interest is charged only on funds actually used and that unused proceeds may earn interest while held. Speaker 2 moved for the resolution and the motion carried after standard board procedure and a voice vote.
A staff member summarized: “This is a short term security loan less than 1 year and repaid with future tax revenue,” and added that the district can use the funds only if needed and that most districts use this tool to avoid cash shortfalls over the summer.
The board did not record a roll-call tally in the transcript aside from the voice vote showing the motion carried. Staff said they would provide the exact interest figures on request.
