Business
Action Item |
DATE: | Tuesday, July 31, 2012 |
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) 2012/2013 with Wells Fargo Bank, N.A. in the Event of any Operational Cash Flow Deficits (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 authorized each fiscal year since FY 1986/1987, but never utilized. See attached information outlining terms and conditions. | |
STRATEGIC OBJECTIVES | |
• Demonstrate best financial practices | |
FINANCIAL IMPACT (Budgeted: No) | |
If the Note is executed, interest will be calculated at the variable rate in effect at the time of closing. A current indicative rate would be equal to one month LIBOR, plus 75 basis points (1.00%). Legal fees are contingent upon issuance of the Note. Repayment of the Note would come from Ad Valorem Tax Revenue. | |
EVALUATION | |
SUBMITTED BY: Steve Brady, Assistant Department Manager for Cash Management |
Susan Garcia | Gretchen Saunders | |
Manager of Services and Support, Budget (813) 272-4064 |
Chief Business Officer (813) 272-4270 |
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A 5.17 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20120731_510 (Board Meeting) * Section A Item# 5.17 |