HomeMy WebLinkAboutReso 2000-131 RESOLUTION NO. 2000-131
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DIRECTING THE CITY MANAGER TO
INCLUDE IN THE FISCAL YEAR 2000-01 PROPOSED BUDGET
APPROPRIATIONS OF $114,500 FOR TAX AND REVENUE
ANTICIPATION NOTE PROJECTED INTEREST AND
ISSUANCE COSTS AND ESTIMATED INTEREST REVENUES
OF $114,500 FROM iNVESTMENT OF THE NOTE PROCEEDS
WHEREAS, very preliminary cash flow projections show that the General Fund could reach
its lowest cash balance of $769,000 in early December based on a balanced budget of $85.0 million;
and
WHEREAS, under current federal tax laws, the City may borrow on a tax exempt basis an
amount not to exceed the projected maximum deficit plus a reasonable working capital reserve; and
WHEREAS, this formula results in a maximum borrowing level of $2.5 million; and
WHEREAS, given these projections, the cost of the Tax and Revenue Anticipation Note
(TRAN) would be $114,500 (interest of $100,000 and cost of issuance of $14,500); and
WHEREAS, estimated revenue from investing the proceeds of the borrowing until needed
is conservatively projected to be at least equal to the cost of borrowing, therefore, the net cost of the
TRANS issue is estimated to be zero.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby direct the City Manager to include in the fiscal year 2000-01 proposed budget appropriations
of$114,500 for tax and revenue anticipation note projected interest and issuance costs and estimated
interest revenues of $114,500 from investment of the note proceeds.
Presented by Approved as to form by
Resolution 2000-131
Page 2
PASSED, APPROVED, and ADOPTED by the City Cotmcil of the City of Chula Vista,
California, this 2nd day of May, 2000, by the following vote:
AYES: Councilmembers: Davis, Moot, Padilla, Salas, and Horton
NAY S: Councilmembers: None
ABSENT: Councilmembers: None
Shirley ~ Mayor
ATTEST:
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2000-131 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 2nd day of May, 2000.
Executed this 2nd day of May, 2000.
Susan Bigelow, City Clerk