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Meeting Date:
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| Category:
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| Type:
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| Subject:
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| Approval of a Resolution for Bank Line of Credit |
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Strategic Plans:
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Enclosure:
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| File Attachment:
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Summary:
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| Approval of a 6-month extension in the District's line of credit to be continued with Commerce Bank in the amount of $6,000,000 at an interest rate of 3.00%. |
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Funding:
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| Resolution
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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 cashflow shortages; and
WHEREAS, Section 5/1717 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 extended for the months of July through December, 2019; 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 $6,000,000, 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 requested a short-term extension in its prior line of credit expiring June 30, 2019;
WHEREAS, the District negotiated a reduction in rate from 3.39% to 3.00% and a reduction in the line amount from $15 million to $6 million;
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 extension for $6,000,000 at a rate of 3.00% |
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| Approvals:
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| Recommended By: |
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Signed By: |
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| Nathan Fretz - Director |
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Signed By: |
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Joseph Bascio - Business Manager |
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Signed By: |
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Jennifer E. Gill - Superintendent |
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| Vote Results:
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| Original Motion | Member Donna Moore Moved, Member Scott McFarland 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 cashflow shortages; and
WHEREAS, Section 5/1717 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 extended for the months of July through December, 2019; 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 $6,000,000, 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 requested a short-term extension in its prior line of credit expiring June 30, 2019;
WHEREAS, the District negotiated a reduction in rate from 3.39% to 3.00% and a reduction in the line amount from $15 million to $6 million;
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 extension for $6,000,000 at a rate of 3.00%'. Upon a Roll-Call Vote being taken, the vote was: Aye: 7 Nay: 0. | | The motion Carried 7 - 0 | | | | | Judith Johnson | Yes | | Scott McFarland | Yes | | Michael Zimmers | Yes | | Donna Moore | Yes | | Anthony Mares | Yes | | William Ringer | Yes | | Micah Miller | Yes | |
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