Agenda Item #26
Approval of the Resolution to Renew the 2008 Section 1011.14 Loan - p.41
On May 12, 2008, the School Board approved and entered into a Section 1011.14 Loan for cash flow purposes in the amount of $25 million. The financing provided a project fund of $25 million for expenditures incurred for, but not limited to the construction of Rogers Garden Elementary, renovation, remodeling and new construction projects at Manatee High School, Palmetto High School, Manatee Technical Institute, and the Transportation/Maintenance Facility. This loan was based upon competitive bids and was awarded to Bank of America at the annual interest rate of 2.39%.
Section 1011.14, Florida Statutes provides that a school board may enter into loans for a one-year period and these loans may be renewed on an annual basis up to four times. Staff is recommending that this Section 1011.14 loan be renewed for one-year in the amount of $8.5 million. Principal in the amount of $6.5 million will be paid to Bank of America on the due date. The interest rate for this renewal will be based upon the same competitive formula as the original loan was based. The actual rate will not be known until just prior to the board meeting.
The Superintendent recommends approval of the Resolution to renew the 2008 Section 1011.14 loan with Bank of America in the amount of $8.5 million and authorization for the Superintendent and Board Chairman to execute all required documents to enter into this loan renewal.
Motion and approval of the Resolution to Renew the 2008 Section 1011.14 loan with Bank of America in the amount of $8.5 million and the authorization for the Superintendent and Board Chairman to execute all required documents to enter into this loan renewal.
The interest rate for this renewal is expected to be 1.35%, better than the previous 1.42%. The note of $8.5 million will be renewed for one year at an approximate interest cost of $114,750.
Attachment: Amending Resolution 2011b(agenda)2.pdf