Business Action Item

DATE:	Tuesday, July 31, 2012
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) 2012/2013 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 75 basis points (1.00%).  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 5.17
Hillsborough County Public Schools (Florida) * Mtg.#20120731_510 (Board Meeting) * Section A Item# 5.17