HCPS FL Logo Business
Action Item
DATE: Tuesday, April 29, 2014
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) 2014/2015 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 80 basis points (.954 percent).  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, Budget
Susan Garcia   Gretchen Saunders
Manager of Services and Support, Budget
(813) 272-4064
  Chief Business Officer
(813) 272-4270
    A 6.04
Hillsborough County Public Schools (Florida) * Mtg.#20140429_631 (Board Meeting) * Section A Item# 6.04