Tax Anticipation NotesPresented to the Finance Committee

June 5, 2015

Tax Anticipation Notes

The School District issues a Tax Anticipation Note, or TAN every fall.

A TAN is a short term note issued to ease cash flow constraints in the general fund.

Our fiscal year begins on July 1 and most of our revenues are generated from local property taxes. The majority of the funds are received in November and December.

2

General Fund Cash Flows with FY 2016 projections

3

(100)

100

300

500

700

Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16

Mill

ions

Cash Flow History June 2011 - June 2016

TAN General Fund

Summary of TAN Issuance

4

Summary of TANSTax Anticipation Notes

2008-2015

Series Maturity Issue Amount

Net Interest

Rate Costs (1) Net

Interest Cost Interest Earned Difference

2008 09/ 23/ 09 85,000,000$ 2.13% 67,792$ 1,624,846$ 2,938,040$ 1,245,403$ 2009 02/ 01/ 10 85,000,000$ 0.31% 58,029$ 68,638$ 301,311$ 174,645$ 2010 02/ 01/ 11 115,000,000$ 0.26% 70,467$ 82,225$ 174,942$ 22,250$ 2011 01/ 26/ 12 115,000,000$ 0.13% 79,483$ 48,875$ 105,828$ (22,530)$ 2012 02/ 01/ 13 115,000,000$ 0.13% 79,455$ 53,411$ 92,636$ (40,230)$ 2013 02/ 01/ 14 115,000,000$ 0.13% 86,122$ 49,450$ 114,695$ (20,877)$ 2014 02/ 01/ 15 115,000,000$ 0.09% 78,568$ 26,648$ 77,465$ (27,751)$ 2015 02/ 01/ 16 115,000,000$ 0.15% 94,455$ 46,958$ 43,828$ (97,586)$

Notes:

(1) Costs include Source Media (The Bond Buyer), Bond and Note Counsel, Financial Advisory Services, Rating Services, and Printing Services.

(2)Interest Earnings for the 2015 TAN is estimated at 0.14%.