By Mario Conde
The Calexico School Board adopted a resolution authorizing the issue and sale of an additional $6 million in Tax Revenue Anticipation Notes, bringing the total issuance to $11 million for 2011-12
The District issued $5 million in TRAN in July 2011 in anticipation of possible cash flow deficiencies. These funds were deposited to the County Treasure in a separate fund. CUSD did not draw from these funds. This TRAN has been repaid in full and the initial $5 million is no longer available for 2011-12.
Superintendent Richard Fragale said that in order to meet the projected cash flow deficiencies for June 2012, estimated as high as $6 million, it is necessary for CUSD to issue a 2011-12 TRAN that can be repaid in 2012-13 fiscal year. To do so, the District must increase its Maximum of borrowing authorization, he said. The District wanted to do another TRAN in January but the underwriter advised to purchase it through an alternative-rated market.
The fiscal impact of this action can vary greatly, as cost will depend upon the total amount of TRAN funds used to alleviate District cash flows, as well as interest rates at the time of the borrowing. Based on current cash flow projections, interest expense is estimated at a $25,000, which must be repaid along with the $6 million principal.
In other news, the Board approved the consideration to move Aurora High School and the Adult Education Center to the old Blanche Charles Elementary School Site. The move, Superintendent Fragale said, is to allow students to have a bigger cafeteria and a larger place for sports and recreation.
Aurora High School has been at its present location on Rockwood Avenue since September of 1979, providing an alternative secondary program to students in grades 9-12.