Agenda Item
Meeting Date: 2/5/2018 - 6:30 PM
Category: ROLL CALL ACTION ITEMS
Type: Action
Subject: Approval of a Resolution for Bank Line of Credit
Strategic Plans:
Enclosure:
File Attachment:
Summary: Approval of the line of credit to be established with Commerce Bank in the amount of $15,000,000 at an interest rate of 3.39% for two years.
Funding:
Approved in original budget or revised budget
Funds currently available in specified line item
If not currently available in line item, where are funds available
Resolution: The Superintendent recommends the following resolution:

WHEREAS, it is necessary that the District maintain sufficient cash flow throughout the year to meet authorized payroll and accounts payable expenses of the District as they become due; and

WHEREAS, the District may experience temporary cash-flow shortages; and

WHEREAS, Section 5/17-17 of the School Code authorizes the issuance of notes or other obligations in connection with the establishment of a line of credit with a bank or other financial institution that may be drawn upon in the event of a cash flow shortage; and

WHEREAS, it is in the best interests of the District that a line of credit be so established for the balance of FY2018 and for FY2019; and

WHEREAS, the Superintendent was authorized and directed to solicit proposals from banks and other financial institutions for establishment of a line of credit that shall not exceed $15,000,000, which line of credit shall be drawn upon only in circumstances where the District's cash flow is insufficient to meet necessary expenses; and

WHEREAS, the District received proposals from banks and the Commerce Bank had the lowest aggregate bid;

NOW THEREFORE BE IT RESOLVED that the Superintendent is hereby authorized and directed to enter into an agreement with Commerce Bank finalizing the line of credit for $15,000,000 at a rate of 3.39% for a term beginning February 6, 2018, through June 30, 2019.
Approvals:
Recommended By:
Signed By:
Joseph Bascio - Business Manager
Signed By:
Jennifer E. Gill - Superintendent
Vote Results:

Original Motion
Member Donna Moore Moved, Member Jamie Sisti seconded to approve the Original motion 'The Superintendent recommends the following resolution:

WHEREAS, it is necessary that the District maintain sufficient cash flow throughout the year to meet authorized payroll and accounts payable expenses of the District as they become due; and

WHEREAS, the District may experience temporary cash-flow shortages; and

WHEREAS, Section 5/17-17 of the School Code authorizes the issuance of notes or other obligations in connection with the establishment of a line of credit with a bank or other financial institution that may be drawn upon in the event of a cash flow shortage; and

WHEREAS, it is in the best interests of the District that a line of credit be so established for the balance of FY2018 and for FY2019; and

WHEREAS, the Superintendent was authorized and directed to solicit proposals from banks and other financial institutions for establishment of a line of credit that shall not exceed $15,000,000, which line of credit shall be drawn upon only in circumstances where the District''s cash flow is insufficient to meet necessary expenses; and

WHEREAS, the District received proposals from banks and the Commerce Bank had the lowest aggregate bid;

NOW THEREFORE BE IT RESOLVED that the Superintendent is hereby authorized and directed to enter into an agreement with Commerce Bank finalizing the line of credit for $15,000,000 at a rate of 3.39% for a term beginning February 6, 2018, through June 30, 2019.'. Upon a Roll-Call Vote being taken, the vote was: Aye: 5 Nay: 0.
The motion Carried 5 - 0
   
Judith Johnson     Yes
Jamie Sisti     Yes
Adam Lopez     Yes
Donna Moore     Yes
Anthony Mares     Yes