HomeMy WebLinkAboutReso 1999-19446 RESOLUTION NO. 19446
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA DIRECTING THE CITY MANAGER TO INCLUDE IN THE
FISCAL YEAR 1999/2000 PROPOSED BUDGET
APPROPRIATIONS OF $245,000 FOR TAX AND REVENUE
ANTICIPATION NOTE PROJECTED INTEREST AND ISSUANCE
COSTS AND ESTIMATED INTEREST REVENUES OF $245,000
FROM INVESTMENT OF THE NOTE PROCEEDS
WHEREAS, very preliminary cash flow projections show that the General Fund could
incur a maximum temporary cash shortfall of approximately $6.8 million in early December
based on a balanced budget of $73.0 million; and
WHEREAS, under current federal tax laws, the City may borrow on a tax exempt basis
an amount not to exceed the projected maximunn deficit plus a reasonable working capital
reserve; and
WHEREAS, this formula results in a maximum borrowing level of $7.06 million; and
WHEREAS, given these projections, the cost of the Tax and Revenue Anticipation Note
(TRAN) would be $245,000 (interest of $221,000 and cost of issuance of $24,000); and
WHEREAS, estimated revenue from investing the proceeds of the borroWring 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 RESC)LVED the City Council of the City of Chula Vista does
hereby direct the City Manager to include in the fiscal year 1999/2000 proposed budget
appropriations of $245,000 for tax and revenue anticipation note projected interest and
issuance costs and estimated interest revenues of $245,000 from investment of the note
proceeds.
Presented by Approved as to form by
ell .~LO'~I. Kaheny
Finance Director .,' ~t~Attorney ,
Resolution 19446
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 4th day of May, 1999, by the following vote:
AYES: Councilmembers: Davis, Moot, Padilia, Salas and Horton
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
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. 19446 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 4th day of May, 1999.
Executed this 4~h day of May, 1999.
Susan Bigelow, City Clerk