Tax Anticipation Warrants May Not Be Warranted

The Board did not issue Tax Anticipation Warrants (TAW) as expected, but did approve the issuance of warrants in the future if they are needed. The move came after a presentation of the District's cash-flow analysis, which was better than expected. It now looks like the District can get through April and the better part of May without needing the warrants. The District can loan itself money from the Transportation Fund to the Education Fund if necessary.

If District 3 can get through the next 2.5 months, no TAW will be necessary because the June property tax distribution will be coming in.

Instead, the District adopted a resolution approving the issuance of up to $500K in TAW if Supt. Krause decides they are needed. The district's cash-flow will be reviewed for the April 24 Board Meeting. Dr. Krause said if the budget shows the district will be $200K short, she will consult with Sarah Ireland and Tammie Beckwith Schallmo, the consultant from UBS Investment Bank, on a course of action, but that her preference is for the district to loan itself money from the Transportation Fund. If money is loaned from the Transportation Budget, it would need to be repaid upon receipt of the next distribution of property taxes. It is projected that the issuance of TAW will cost District 3 $5K in interest and fees.

Dr. Tim Mahaffy said that the deadline for teachers to order supplies has passed, and that teachers have been careful to order only supplies that are needed, instead of focusing on how much is in the supply budget.