Agenda Item
Meeting Date: 7/1/2019 - 6:00 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 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%.
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 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%
Approvals:
Recommended By:
Signed By:
Nathan Fretz - Director
Signed By:
Joseph Bascio - Business Manager
Signed By:
Jennifer E. Gill - Superintendent
Vote Results:

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