Hillsborough County Public Schools Business
Action Item

DATE: Tuesday, January 15, 2008
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Approve an Increase to the Existing $80,000,000 Line of Credit with Wachovia Bank, N.A. to Fund any Operational Cash Flow Deficits (Business Division)

EXECUTIVE SUMMARY

On June 12, 2007, the Board approved an $80,000,000 Line of Credit with Wachovia Bank, N.A. to fund any temporary cash shortfalls during fiscal year 2007-2008. We are seeking approval to increase the Line of Credit to $100,000,000. (See Attached Commitment Letter). The State Board of Administration (SBA) has placed limitations on the withdrawal of District funds invested in the Local Government Investment Pool; this increase may be necessary to assist the District in meeting it's financial obligations. Legal documents pertaining to the increase in the Line of Credit (Resolution, Note, and Tax Certificate) will be presented at the next Board Meeting. This agenda item has been reviewed as to legal form and sufficiency by Les Joughin, Bond Counsel.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

This agenda item is submitted to meet the requirements of law or rule.

FINANCIAL IMPACT (Budgeted: Yes)

If the note is executed, interest will be calculated at 60% of Prime Rate, as published in the Wall Street Journal on the Monday of the week immediately preceding the date the cash advance is made. Fees for legal counsel estimated at $3,000 are included in the fiscal year 2007-08 proposed general fund budget.

EVALUATION

SUBMITTED BY: Steve Brady, Assistant Department Manager, Cash Management

Susan Garcia
Manager of Services and Support, Budget
(813) 272-4064
Gretchen Saunders
Chief Business Officer
(813) 272-4270
A 5.27
Hillsborough County Public Schools (Florida) * Mtg.#20080115_285 * Section A Item# 5.27