State and local governments completed a record $18 billion of interim financings during this year's cash-flow borrowing season, according to the California Debt Advisory Commission.
By comparison, $17.3 billion in interim financings were reported in 1993.
The year-to-year dollar-volume increase reflects the impact of California's "continuing effort to address its cash-flow problems," said an article in the October edition of Debt Line, a commission publication that tracks debt issuance in the state.
California issued $10.2 billion of revenue anticipation warrants and revenue anticipation notes through Sept. 15, an increase from the $7 billion issued in 1993. However, the record interim financing for the state was recorded in 1992, when $10.8 billion was borrowed.
Local agencies, meanwhile, sold nearly $8 billion of tax and revenue anticipation notes and taxable notes through Sept. 15 for interim financing purposes, a slight drop from the $8.6 billion sold during the same period last year.
The final figures for local agencies will be adjusted upward, however, because about $600 million in additional interim financing is scheduled before the end of the year. Last year, local agencies' total cash-flow financing amounted to $10.3 billion.
In a related development, the commission said it is cosponsoring with Moody's Investors Service a one-day seminar on the issuance and management of short-term debt as part of a cash-flow strategy, to be held Nov. 14 in Millbrae, Calif. For information, contact the debt advisory commission's seminar coordinator at 916-653-3269.
