Pursuant to C.R.S. 29-15-112 and 22-54-110, the State Treasurer is authorized to issue short term debt in order to make interest-free loans to participating Colorado school districts to alleviate temporary general fund cash flow deficits expected to be experienced by such participating districts during each fiscal year. Each District must adopt a resolution pledging repayment of its loan from ad valorem property-tax revenues received by the Participating District during the period of March through June of the fiscal year and must execute a promissory note to the Treasurer to evidence its repayment obligation.
School districts wishing to participate in the program must contact the Treasury or the Treasury's financial advisor no later than May 30th of each year.
The Treasury disburses money to participating school districts on 7th, 17th, and 27th of each month or the following business day if these dates fall on a holiday or weekend.
The District superintendent and chief financial officer must sign and submit a draw request form by the 10th working day of each month listing dollar amounts to be drawn during each predetermined period.
At the same time, the district must electronically submit an updated cash-flow spreadsheet with actual expenditures/revenues for the preceding month.
Beginning in March, school districts must remit all property taxes received to the Treasury, up to current loan balances.
All outstanding loans MUST be repaid no later than June 25th or the following business day if the 25th falls on a weekend.
General Fund Tax and Revenue Anticipation Notes (GTRAN)
On July 19, 2018 the Treasury issued $600 million in tax and revenue anticipation notes (GTRAN Series 2018). The notes mature on June 26, 2019, and so are repaid entirely within the same fiscal year., These borrowings are done to even out cash flow for the state., Due to irregular flows of revenues, this financing provides funds to meet the state's liquidity need throughout the year., The interest on the notes of $24.34 million and the costs of issuance will be paid in part from the premium of $15.55 million received and investment earnings.
Education Tax and Revenue Anticipation Notes (ETRAN)
On January 16, 2020, Colorado State Treasurer Dave Young announced the successful sale of the Colorado 2018B Series education tax revenue anticipation notes, commonly known as the E-TRANs, on behalf of 20 public school districts across Colorado. of $325 million in Notes to five winning bidders out of 27 bids.
Ratings
The GTRAN and ETRAN received the following ratings: