Agenda Item #11
Tax Anticipation Notes - Series 2009
Revenues from Tax Anticipation Notes (TAN) provide short-term financing to meet anticipated cash flow deficits of the General Fund during the early months of the fiscal year and will help defray deficits during the months of July through October prior to the collection of tax revenues that are received by the District beginning in late November of the fiscal year. Historically, there has been a need to issue anywhere from $15 million to $45 million in TAN in any fiscal year to cover cash flow deficits.
The TAN will be sold via a competitive bidding process, to ensure the lowest possible net interest cost. Once the sale of the TAN has occurred, the Associate Superintendent of Financial Services will award the sale to the bidder offering the lowest interest cost to the District, as authorized by the resolution. The TAN sale is expected to close no later than October 31, and will not exceed $50 million in face value of notes.
Approve a resolution authorizing the sale of Tax Anticipation Notes (TAN), Series 2009, not to exceed $50 million in face value of the notes, to provide interim funding for the payment of operating expenses during the first half of the fiscal year; approve the form of documents in connection with the issuance of the notes; and delegate authority to the Associate Superintendent of Financial Services, or authorized designee, to accept the most favorable bid for the notes, subject to certain restrictions, and to take all necessary actions in connection with the sale of the notes.
Information - 8/11/2009
Consent after Information8/25/2009
Authority for Action
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Jo Ann Clark, Director of Accounting Services, ext. 660
Judy Preston, Associate Superintendent of Financial Services, ext. 600
Attachment: 2009 TAN POS.pdf