What are the notes issued for funding current fiscal year appropriations called?

The notes issued for funding current fiscal year appropriations are referred to as tax anticipation notes. These financial instruments are specifically designed to provide municipalities with short-term financing that bridges the gap between the immediate funding needs of current expenditures and the eventual receipt of tax revenues.

When municipalities anticipate that they will receive tax revenues in the future, they can issue these notes to cover operational costs or other expenditures in the meantime. This is crucial for maintaining cash flow and ensuring that services continue seamlessly, even if there are timing differences in cash inflows and outflows. The anticipation of tax revenue allows the municipality to preemptively borrow and manage its liquidity effectively.

Other options like short-term bonds and capital project notes serve different purposes, such as funding long-term capital projects or being associated with different financial strategies, and funding progress notes are not commonly recognized in municipal finance. Thus, tax anticipation notes play a vital role in the operational funding of local governments during the fiscal year.