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products and servicesOfferings for governance teams, school districts and county offices of education

Cash Reserve

The CA School Cash Reserve Program helps guard against temporary cash flow shortages in a safe, cost-effective way by creating an additional cash reserve to the general fund. Participants issue Tax and Revenue Anticipation Notes (TRANs) through a streamlined, pooled process. Learn more about our low borrowing costs, flexible use and repayment process, and easy, efficient administration today.

The program

CSBA proudly works with Dale Scott & Company, Piper Jaffray & Co. and Orrick, Herrington & Sutcliffe to provide the CA School Cash Reserve Program for school districts, community colleges, county offices of education and community college districts.

School districts, community college districts, and county offices of education are often faced with the difficult situation of having to fund regular monthly expenditures with irregular receipt of state aid and property tax revenues. These imbalances are typically caused by the uneven or “lump sum” receipt of revenues (e.g., twice a year property tax receipts as compared to regular monthly expenditures) and the deferral of state apportionment payments.

With more than 5,900 TRANs issued, the CA School Cash Reserve Program is a leading cash management tool designed to supplement issuers’ general fund cash reserves for the fiscal year and to act as a buffer for temporary cash flow needs. To create this reserve, a tax-exempt obligation (or TRAN) is issued.

Proceeds from the sale of a CA School Cash Reserve Program TRAN issue may be used to fund imbalances caused by the mismatch between revenues and expenditures. This program meets cash flow needs of schools in a cost-effective, efficient manner.

2018-19 Fiscal Year TRAN

To address potential cash flow shortages during the 2018-19 fiscal year, the CA School Cash Reserve Program will issue a Fiscal Year TRAN in early July 2018.

Key dates
  • January 2018: Issuance resolution and board agenda package available
  • February 2018 – April 2018: Adopt issuance resolution at board meeting
  • March 2018 – April 2018: Provide financial data for TRAN sizing
  • May 2018: Finalize cash flow projections for TRAN sizing
  • June 2018: Sell TRAN to investors
  • July 2018: Deliver TRAN proceeds for general fund cash flow use
Resources
Contact

Mark Farrell
Dale Scott & Company
650 California Street, 8th Floor San Francisco, CA 94108
415.956.1030

Alest Walker
California School Boards Association
3251 Beacon Blvd. West Sacramento, CA 95691
916.669.2603

Mark Adler
Piper Jaffray & Co.
2321 Rosecrans Ave., Suite 3200 El Segundo, CA 90245
800.876.1854 | 310.297.6000 | Fax: 310.297.6001