Business Services Action Item

DATE:	Tuesday, June 11, 2019
TO:	School Board Members
FROM:	Jeff Eakins, Superintendent
SUBJECT / RECOMMENDATIONS
Authorize the Superintendent to Establish a $100,000,000 Line of Credit (LOC) in Fiscal Year (FY) 2019/2020 with Wells Fargo Bank, N.A., in the Event of any Operational Cash Flow Deficits (Business Services Division)
EXECUTIVE SUMMARY
As authorized by Florida Statute 1011.13, an LOC or Tax Anticipation Note may be established to fund any operational cash shortfall experienced by the district.  An LOC has been authorized each fiscal year since FY 1986/1987, but never utilized.  See attached documentation outlining terms and conditions.
STRATEGIC OBJECTIVES
• Establish a strong foundation of financial stewardship
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 80 percent of one month London Interbank Offered Rate (LIBOR) plus 65 basis points (3.10).  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, Department Manager for Cash Management

Susan Garcia		Gretchen Saunders
General Manager, Budget, Cash Management and Federal Finance (813) 272-4064		Chief Business Officer (813) 272-4270
		B 6.06
Hillsborough County Public Schools (Florida) * Mtg.#20190611_925 (Board Meeting) * Section B Item# 6.06