Approve Establishment of an $80,000,000 Line of Credit with Wachovia Bank, N.A. to Fund any Operational Cash Flow Deficits (See Attached Commitment Letter) (Business Division)

As authorized by Florida Statute 1011.13, a Line of Credit or Tax Anticipation Note (TAN) is established at the beginning of each fiscal year to fund any operational cash shortfall experienced by the District. A Line of Credit has been established each fiscal year (FY) since FY 1986/87, but never utilized. Legal documents pertaining to the issuance of the Line of Credit (Resolution, Note and Tax Certificate) will be presented at the next Board Meeting.

This agenda item is submitted to meet the requirements of law or rule.

If the Note is executed, interest will be calculated at one month LIBOR plus 50 basis points, currently that rate would be 3.17%. Fees for legal counsel are included in the FY 2008-09 proposed General Fund Budget.