HomeMy WebLinkAboutReso 2001-031 RESOLUTION NO. 2001-031
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE PREPAYMENT OF THE
ENTIRE AMOUNT OWED BY THE CITY ON A
PROMISSORY NOTE ENTERED INTO UNDER THE TERMS
OF A PUBLIC FACILITIES FINANCING AND
IMPLEMENTATION AGREEMENT WITH PRICE CLUB IN
1993, AND APPROPRIATING $366,581 FROM THE
AVAILABLE FUND BALANCE IN THE GENERAL FUND
THEREFOR
WHEREAS, under the terms of the 1993 Public Facilities Financing and Implementation
Agreement with the Price Club, the City executed a promissory note based on sales tax revenue
projections, to be paid over a ten-year period; and
WHEREAS, since the interest rate on the note far exceeds the rate at which the City can
invest at this time, and since the General Fund has a significant reserve balance, staff is
recommending that the note be prepaid in order to achieve interest cost savings; and
WHEREAS, as of March 1, 2001, the amount required to prepay the note will be
$601,189.48, including principal of $567,600 and accrued interest of $33,489.48; and
WHEREAS, since the adopted budget for this fiscal year already includes an
appropriation in the amount of $234,608 for this year's annual payment, it is only necessary to
appropriate the difference remaining, which amounts to $366,581.48.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby authorize the prepayment of the entire amount by the City on a promissory note
entered into under the terms of a Public Facilities Financing and Implementation Agreement with
Price Club in 1993.
BE IT FURTHER RESOLVED that the amount of $366,581.48 is hereby appropriated
from the available fund balance in the General Fund therefor.
Presented by Approved as to form by
Robert Powell John M. Kaheny /
Deputy City Manager Citycgttorney
Resolution 2001-031
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 20th day of Februa~, 2001, by the following vote:
AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Shirley Hortop~ Mayor
ATTEST:
Susan Bigelow, City Cle~
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. 2001-031 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 20th day of February, 2001.
Executed this 20th day of February, 2001.
Susan Bigelow, City Clerk