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 |
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A 6.04 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20140429_631 (Board Meeting) * Section A Item# 6.04 |