While originally placed as an action agenda item, it was amended to an informational item. CUSD board member Gloria Romo said she requested the agenda item as an informational one.
The district would save about a half-million dollars through the move, and the idea originated with former Superintendent David Groesbeck, Romo wrote in an e-mail.
Romo also requested information on what would be the resulting estimated cost reduction in daily operating costs and personnel. Romo clarified that potentially closing Mains would be another way to save money for the district.
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Calexico Unified Superintendent Richard Fragale said about 500 students attend Mains, and the district would need to keep the school a separate school no matter where it’s located due to special funding it receives.
He underscored that the topic was simply up for discussion and not action.
Board to revote on TRAN
Due to the issuance of incorrect documents, Calexico Unified School District will revote on increasing the maximum amount of a Tax Revenue Anticipation Note, a short-term loan, from $5 million to $11 million for its 2011-2012 fiscal year.
The district had already voted and approved it during its Jan. 12 regular board meeting, but the underwriter had given the district documents for the regular TRAN process, Calexico Unified Business Services Assistant Superintendent John Paul Wells said.
Since the district has a negative financial certification, it can’t be in that same process.
The school district’s administration issued $5 million in Tax Revenue Anticipation Notes on July 1 while forecasting potential cash flow deficiencies. That was repaid in full as of Feb. 27.
Calexico Unified needs to issue a 2011-2012 TRAN that can be repaid in the 2012-2013 fiscal year in order to not run out of money by June, according to agenda item information.
“We’re still very optimistic about getting the TRAN,” Fragale said. “It will get us through this year.”
Once the TRAN increase is approved, it goes to the Imperial County Office of Education for approval before the note goes out to market.
Several school districts in the Valley, such as El Centro Elementary, Holtville and Brawley have used TRANs.
“It’s a good backup for cash flow, because of the way the state has been running these days,” Wells said.
The loan should be repaid by the end of August.
Staff Writer Chelcey Adami can be reached at 760-337-3452 or email@example.com
If you go
What — Calexico Unified School Regular Board meeting
Where — Cesar Chavez Elementary School multipurpose, 1251 E. Zapata St.
When — 6:05 p.m. Thursday