Every year there are many school districts which experience cash flow shortfalls at some times during the year. Last year, over 100 Minnesota school districts issued Aid Anticipation Certificates to eliminate these cash flow shortfalls. While the state has accelerated aid payments somewhat in recent years, many districts will still need to issue certificates to "bridge the gaps." And if the State changes the timing of school aid payments as part of its budget-balancing efforts this year, more districts may face cash flow shortfalls in fiscal year 2009.

Ehlers & Associates assists many districts annually with the issuance of Tax and Aid Anticipation Certificates to meet cash flow needs. Some of the key features of Aid Anticipation Certificates issued through Ehlers are summarized below:

• Low Interest Costs. For certificates issued last summer, most districts are paying interest rates of less than 4%. Short-term interest rates have declined dramatically since last summer; based on current market conditions, we would expect current rates to be under 2%.
• Competitive Sale. We will solicit competitive proposals from a large number of underwriting firms, increasing the chances that you get the best possible terms on the day of sale.
• Flexible Schedules and Terms. Because we schedule and sell each district's certificates individually (rather than pooling them together), we can tailor the schedule and the terms of borrowing to your needs.
• Individualized Consultation and Advice. Issuing Aid Anticipation Certificates may affect other financial issues in your district. For example, it could affect arbitrage rebate exceptions and bank qualification for other forms of borrowing. When you call us to discuss the issuance of certificates, we will discuss other financial issues and, if necessary, alter your plans to maximize the benefit to the district.
• A Smooth and "Low Hassle" Process. The procedures and restrictions associated with issuing certificates can be very cumbersome. But our experienced staff will "walk you through" every step of the process, ensuring that you meet all deadlines and requirements.

For more information on this option, please open the links below or call Ehlers at 651-697-8500.

• Frequently Asked Questions (pdf)
• Key Steps in the Process (pdf)
• Email request for Cash Flow Spreadsheet

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For more information or to request application materials
Call Ehlers & Associates, Inc. (651) 697-8500, or send an e-mail to mnschools@ehlers-inc.com