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Committee hears update on interim loan plan for Tahoe Cedars water reconstruction
Summary
Finance staff briefed the committee on a recommended direct-placement interim loan with Banner Bank to bridge cash flow for the Tahoe Cedars water reconstruction while the State Revolving Fund (SRF) loan is finalized. Staff said the loan would be repaid within a year if SRF proceeds arrive as expected; the committee took no formal action.
Ryan Foote Law, director of finance administration, opened the item as an informational update and said staff will bring a formal resolution to the full board next week. "This item is just an update no action, it's kind of a preview for what's going to be going to the board meeting, board meeting next week," he said, describing the Tahoe Cedars interim financing as tied to earlier work on Madden Creek and the district's broader financing plan.
Staff recommended a direct-placement (single-bank) drawdown loan with Banner Bank as the interim financing vehicle. Ken Deacker of Del Rio told the committee that "the interest rate is currently locked at 4.25 percent" if the loan closes by the announced window; staff said their target close date is May 7 and the bank's hold runs through May 17. According to staff, the loan will be a drawdown structure (no interest until funds are drawn) and is expected to be repaid with SRF proceeds within a year; the installment purchase agreement would formally allow up to three years. The transcript reads the proposed interim amount as "not to exceed 20 point $1,750,000" (amount as spoken in the packet/meeting record is unclear); staff noted details will appear in the board packet and in the installment purchase agreement to be presented on April 17.
