HomeMy WebLinkAboutReso 1997-18644 RESOLUTION NO. 18644
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA DIRECTING THE CITY MANAGER TO INCLUDE IN THE
FISCAL YEAR 1997/98 PROPOSED BUDGET APPROPRIATIONS
OF ,~409,800 FOR TAX AND REVENUE ANTICIPATION NOTE
PROJECTED INTEREST AND ISSUANCE COSTS AND
ESTIMATED INTEREST REVENUES OF ~409,800 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 ~7.2 million in early December
based on a balanced budget of $61.4 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, which is calculated at ~2.9 million based on a prescribed formula; and
WHEREAS, this formula results in a maximum borrowing level of $10,090,903; and
WHEREAS, given these projections, the cost of the Tax and Revenue Anticipation Note
(TRAN) would be $409,900 (interest of $386,800 and cost of issuance of ~23,000); and
WHEREAS, estimated revenue from investing the proceeds of the borrowing at the
weighted average pool earning rate (5.5 percent) 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 1997/98 proposed budget
appropriations of $409,800 for tax and revenue anticipation note projected interest and
issuance costs and estimated interest revenues of $409,800 from investment of the note
proceeds.
Presented by Approved as to form by
~ Jo M K~
DRirector of Finance ~ey ~
Resolution 18644
Page 2
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 22nd day of April, 1997, by the following vote:
AYES: Councilmembers: Moot, Padilia, Rindone, Salas, and Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: None
h /7/if/or?
"~ ortOn, Mayor
ATTEST:
Beverly ~. Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18644 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 22rid day of April,
1997.
Executed this 22nd day of April, 1997.
~Authelet, City Clerk