C6.11 - Approve a Resolution Authorizing the Issuance of the 2020 Tax Anticipation Note (TAN) and Authorize the Superintendent and Board Chair to Approve all Necessary Documents (Finance Division)

The resolution authorizes the issuance of the 2020 TAN. The TAN is a short term financing instrument used to alleviate cash shortfalls in the general fund.

Current estimates show that additional cash will be needed in November 2020. Local property taxes provide 29 percent of revenues for the District's general fund.  The first deposit of tax revenues is expected in late November, it is necessary to borrow money for cash flow purposes until the tax revenues are received.

The District has not utilized at TAN in previous fiscal years.

Based on projected cash needs, the District plans to issue a TAN not to exceed $80 million this year.

* Establish a strong foundation of financial stewardship

Approve the Resolution authorizing the Superintendent and Board Chair to issue the TAN.

Steve Brady, Department Manager, Services & Support, steve.brady@sdhc.k12.fl.us, (813) 272-4347

The proceeds of the TAN will be used to meet the cash flow needs of the general fund. Interest expense is projected at $53,000 and costs of issuance not to exceed $75,000. These will be funded from miscellaneous local sources (e-payables and procurement rebate projects). Interest earnings are expected to partially offset the costs of the transaction.