Title: Tax Anticipation Notes, Series 2007

Recommendation:

I recommend the School Board approve the Resolution authorizing the issuance of Tax Anticipation Notes, Series 2007 and other necessary documents; authorize the Chairman and Superintendent to sign necessary documents; and authorize necessary budget amendments.

Description:  Current estimates show that additional cash will be required for the Operating Fund in November 2006.

·        As the first receipt of property taxes is expected in late November, it will be necessary to borrow money for cash flow purposes until tax payments are received.

·        Based on the District’s forecasted cash needs, the District plans to issue $115 million in Tax Anticipation Notes (TANs). 

·        The TAN issuance in 2065 was for $85 million.  The increase is due to the timing of FEFP monies from the State of Florida, which are received beginning in July.  Local revenues, specifically property tax receipts, are expected in late November.

·        The Finance Committee reviewed and approved the transaction at their meeting on August 24, 2007.  A draft of the minutes is available in the Board Minutes Office.

Financial Impact:
There will be no significant financial impact.  This financing transaction will be used purely to meet the cash flow needs of the operating budget.  Cost of Issuance are estimated to be $128,100 and will be offset by interest earnings.

For Additional Information, contact:

Joseph Moore (moorej@palmbeach.k12.fl.us)

Attachments (list):
TAN Resolution.pdf