HomeMy WebLinkAboutAgenda Statement 1975/03/11 Item 19 Item No. 19
March 11, 1975
Ordinance No. 1614 � . � AGENDA�ITEM NO. � [ 19 ]
CHULA VISTA CITY COUNCIL MEETING OF: riarch 11, 1975
ITEM TITLE: Ordinance No. 1614 - Amending Section 26. 403 of the City Code
to Increase the Interest Rate to be Added to Reimbursement
Charge - Second Reading and Adoption
INITIATED BY: Director of Public Works/City Engineer �_ )
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BACKGROUND:
This ordinance was placed on the agenda for a first
reading at the Council meeting of February 25, 1975.
It is now before the Council for second reading and
adoption.
ATTACHED: Resolution [ ] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [ ] No.
Financiai Statement:
, N.A.
Commission-Board Recommendation: �
N.A.
Department Head Recommendation:
Place ordinance on second reading and adopt.
City Manager Recommendation:
Concur �
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' AGENDA ITED1 N0. [ 12 �
CNULA VISTA CITY COU\CIL MEETTNG OF: February 25, 1975
ITEh1TITLE: Ordinance - Amending Section 26. 403 of the City Code to
Increase the Interest Rate to be Added to Re-
imbursement Charge )
I\ITIATED BY: Director of Public Works/City Engineer l�
l��/
BACKGROUND
Section 26. 403, paragraph E2 concerns sewer facilities of special im-
portance and stipulates that reimbursement agreements for the construction
of these facilities may have added to the charge provided for in other
sections of this code, interest in the amount o£ 4� per annum of the
amount of the charge. The reason for charging interest is to provide
reimbursement to the City for the "front money" which the City has pro-
vided for the facility construction. This front money could have been
invested by the City and accrued additional monies for the City.
The Director of Finance recommends and I concur that the City charge 7�
on future reimbursement contracts . There are two principal reasons for
this recommendation.
1. The Finance Director anticipates that 78 would be a reasonable
return on City investment in ttie foreseeable future.
2 . 78 is the interest value used for 1911 Acts. This is supportive
in that the interest charged for all public improvements would
then be the same.
ATTACHED: Resolution [ ] Ordinance �{ ] Agreement [ ] Plat [ ]
See EXHIBITS [r] No. 1
Financial Statement:
N.A.
Commission-Board Recommendation:
N.A.
Department Head Recommendation:
City Council approve amendment to the ordinance changing the interest
rate which may be charged on sewer reimbursement contracts from 4� to
7g .
City Dlanager Recommendation:
Concur
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