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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
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
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Gretchen Saunders
Chief Business Officer
(813) 272-4270
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A 5.21
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Hillsborough County Public Schools (Florida) * Mtg.#20090505_349 * Section A Item# 5.21
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