Hillsborough County Public Schools Business
Action Item

DATE: Tuesday, May 5, 2009
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Approve Two-Year Renewal of Wachovia Bank, N.A. Letter of Credit for the Certificates of Participation (COPs), Series 2008A (Business Division)

EXECUTIVE SUMMARY

As a requirement of the 2003 interest rate exchange agreement with UBS AG, on July 1, 2008, the District issued COPs, Series 2008A, to partially refund COPs, Series 1998A. The issue was secured by a one-year Direct Pay Letter of Credit from Wachovia Bank, N.A. Wachovia is now offering a two-year renewal of the Letter of Credit. The favorable pricing offered is in direct relation to the District's bond rating. This renewal demonstrates Wachovia's continuing commitment to their relationship with the District, particularly in this market of tight credit restrictions.

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

* Demonstrate best financial practices

FINANCIAL IMPACT (Budgeted: Yes)

Legal fees not to exceed $1,200 for renewal of the Letter of Credit will be budgeted in FY 2009/2010.

EVALUATION

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

Susan Garcia
Manager of Services and Support, Budget
(813) 272-4064
Gretchen Saunders
Chief Business Officer
(813) 272-4270
A 5.21
Hillsborough County Public Schools (Florida) * Mtg.#20090505_349 * Section A Item# 5.21