HCPS FL Logo Business
Action Item
DATE: Tuesday, June 14, 2011
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) 2011/2012 with Wachovia Bank, N.A./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 established each fiscal year since FY 1986/1987, but never utilized.  See attached information outlining the 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 three-month LIBOR, plus 50 basis points (.76%).  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
Susan Garcia   Gretchen Saunders
Manager of Services and Support, Budget
(813) 272-4064
  Chief Business Officer
(813) 272-4270
    A 5.25
Hillsborough County Public Schools (Florida) * Mtg.#20110614_461 (Board Meeting) * Section A Item# 5.25