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Business
Action Item
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DATE: Tuesday, May 5, 2009
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Authorize the Superintendent to Establish an $80,000,000 Line of Credit in Fiscal Year (FY) 2009/2010 with Wachovia Bank, N.A. in the Event of any Operational Cash Flow Deficits (see attached Wachovia letter) (Business 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 established each fiscal year since FY 1986/1987, but never utilized.
ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)
* Demonstrate best financial practices
FINANCIAL IMPACT (Budgeted: No)
If the Note is executed, interest will be calculated at the variable rate in effect at time of closing - a current indicative rate would be equal to three-month LIBOR plus 50 basis points (1.65%). Legal fees are contingent upon issuance of the Note.
EVALUATION
SUBMITTED BY:
Steve Brady, Assistant Department Manager for Cash Management
Susan Garcia
Manager of Services and Support, Budget
(813) 272-4064
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Gretchen Saunders
Chief Business Officer
(813) 272-4270
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A 5.22
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Hillsborough County Public Schools (Florida) * Mtg.#20090505_349 * Section A Item# 5.22
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