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Seaside board authorizes TANs to cover potential October payroll shortfall
Summary
Facing slower-than-expected state and federal reimbursements, the board approved Resolution No. 6 authorizing tax-and-revenue anticipation notes (TANS) so the district can meet payroll if reimbursements are delayed. Board members were told typical TAN interest is about 4%.
District business manager Tony told the board the district is waiting on roughly $3.5 million in state and federal grant reimbursements and that, if reimbursements remain late, the district could need cash to cover October payroll.
To address that potential shortfall the board approved Resolution No. 6 authorizing tax-and-revenue anticipation notes (TANS) as a precaution. Tony described the TANS process, noting interest on recent TAN offers ran around 4% and that districts commonly use TANS to smooth cash flow when property‑tax receipts and grant reimbursements arrive later in the year.
Board members discussed alternatives, including using reserves, but were told by staff that available cash at year‑end was roughly $8 million while a 10–11 million cushion would be desirable to reach November without borrowing. The motion passed by voice vote.
