Approve Deposit of Tax Collector's Proceeds (Business Office)

The Local Government Investment Pool (LGIP) was established to provide local governments a low cost, low risk, fully transparent investment option for their surplus funds. The State Board of Administration (SBA) has operated the LGIP since January 1982, for non-qualified funds (i.e. non-pension money).

The SBA runs the LGIP. The Trustees of the SBA include the Governor, the Chief Financial Officer, and the Attorney General.

The Hillsborough County Public School (HCPS) System receives money every month during the year to operate the school district and build facilities. During certain times, for instance, the period when the County collects property taxes, we receive more dollars then we need at that time, and vice versa, we receive less then we need. To maximize the taxpayers’ money, we invest the funds while we are waiting to use them. The School Board has a policy restricting the investment of those funds to the Local Government Investment Pool (LGIP).

By decision of the Trustees of the SBA at their Thursday, November 29, 2007, special meeting, the LGIP stopped accepting or processing deposit or withdrawal requests. To HCPS that meant a hold on $573 million of operating, capital, and debt service dollars.

On Friday, November 30, 2007, we received a check from the Hillsborough County Tax Collector’s office for $63,162,652.72. This amount represented half of the initial tax collection money that had not been sent up to the SBA. Despite the investment policy, we had to have a place to put these funds, and HCPS opened a money market account at our Board approved bank, Wachovia. This was done as an emergency action to have a place to hold our dollars. This money market account will generate an interest rate of 4.35% and is secured by the Public Funds Insurance Fund.

The SBA Advisory Committee (see attachment for listing of committee members) was convened and had their first conference call Friday, November 30, 2007, at 4:00 pm. When the conference call ended, it was agreed to meet in Tallahassee on Monday, December 3, 2007, at 10:00 am to discuss the go forward strategy. The group met on Monday. The recommendations were presented to the SBA at their meeting held on Tuesday, December 4, 2007. (Continued on attachment)

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