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Complete Survey! Short-Term Financing Available to Bridge Revenue Gaps

By Vanessa Gonzales posted 04-13-2020 05:35 PM

  

enews_3_31_203.jpgThe CSDA Finance Corporation team has launched a new program to assist districts that are experiencing a loss or delay in revenues due to the COVID-19 pandemic. All special districts are eligible to apply.

 

Click the link below to complete a brief survey and someone from the CSDA Finance Corporation team will follow-up with you to provide enrollment information.

COMPLETE SURVEY

 

TRANs Program FAQs

 

The deadline to complete the survey linked above is April 30, 2020.

 

What kind of financing is this?

The financing tool to be used is through the development of a pooled Tax and Revenue Anticipation Note (TRANs) program. This allows multiple districts to ‘pool’ their financing requests which ultimately assists in minimizing borrowing costs for all districts involved.

 

What can our district use the funds for?

Proceeds of a TRAN can be used for any lawful purpose of a special district, including current operating expenses, capital expenditures, and the repayment of outstanding indebtedness.

 

Why would my district want to participate in this program?

Many districts are beginning or expecting to experience a loss of revenues and/or increased costs as a result of the COVID-19 pandemic. This pooled TRANs program can provide some relief in the form of short-term, low interest rate borrowing to bridge the gap between when expenses occur and when revenues are available. It has been proven to be a viable financial tool to special districts that rely heavily on property tax revenues, assessments, developer impact fees, connection fees, and/or any other fees as a core revenue source.

 

What is the financing term?

Expected timing would be around the start of the July 1, 2020 fiscal year, with repayment due within 12 months.

 

What is the deadline for my Board to approve the required financing documents/resolution?

June 26, 2020.

 

When is the team expected to set and lock the interest rate?

On or around June 12, 2020.

 

When would the TRANs pool close and distribute funds to my district?

On or around July 15, 2020.

 

What is the minimum and maximum our district can request in financing?

Generally, there is no minimum. TRANs are issued in anticipation of tax receipts or other sources of future unrestricted revenues. The repayment amount cannot exceed eighty‑five percent (85%) of the estimated amount of the uncollected taxes, income, revenue, cash receipts, and other moneys of your agency, including moneys deposited in inactive or term deposits.

 

In a TRANs financing “pool”, how are all participating districts held accountable for repayment?

Each participating district will essentially have a ‘note’ in the total amount borrowed and repayment will be due within 12 months. A participating district is not liable for the debt of other districts in the pool.

 

When would our district need to repay the amount borrowed?

Within 12 months of the TRANs pool closing date. Payments can be made from when funds are delivered until this due date.

 

 

Complete the following survey to get started!

https://csdaforms.wufoo.com/forms/z1eqqo7p1pu3184/

 

 

If your district has any other current or future financing needs that don’t necessarily fit into the TRANs program, please contact the CSDA Finance Corporation for a free quote or additional information at neilm@csda.net or 916.442.7887.


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