Business Services Action Item

DATE:	Tuesday, May 16, 2017
TO:	School Board Members
FROM:	Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Authorize the Superintendent to Establish a $100,000,000 Line of Credit in Fiscal Year (FY) 2017/2018 with Wells Fargo Bank, N.A. in the Event of any Operational Cash Flow Deficits (Business Services Division)
EXECUTIVE SUMMARY
As authorized by Florida Statute 1011.13, a Line of Credit (LOC) or Tax Anticipation Note (TAN) may be established to fund any operational cash shortfall experienced by the district.  A Line of Credit has been authorized each fiscal year since FY 1986/1987, but never utilized.  See attached documentation outlining terms and conditions.
STRATEGIC OBJECTIVES
• Establish a strong foundation of financial stewardship
FINANCIAL IMPACT (Budgeted:  No)
If the Note is executed, interest will be calculated at the variable rate in effect at the time of closing.  A current indicative rate would be equal to 70 percent of one month LIBOR plus 80 basis points (1.78 percent).  Legal fees are contingent upon issuance of the Note.  Repayment of the Note would come from Ad Valorem Tax Revenue.
EVALUATION
SUBMITTED BY:  Steve Brady, Department Manager for Cash Management Susan Garcia, General Manager Budget and Federal Finance

Gretchen Saunders		Dr. Alberto Vázquez
Chief Business Officer (813) 272-4270		Chief of Staff (813) 272-4986
		C 6.16
Hillsborough County Public Schools (Florida) * Mtg.#20170516_813 (Board Meeting) * Section C Item# 6.16