HomeMy WebLinkAboutAGENDA REPORT 1999 0721 CC REG ITEM 11CTO:
FROM:
DATE:
MOORPARK CITY COUNCIL
AGENDA REPORT
Honorable City Council
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CITY OF 'ti! OORPARK, CALIFORNIA
City Council Meeting
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BY:
John E. Nowak, Assistant City Manager °6-�j
06 July 1999 (Council Meeting of 07/21/99)
SUBJECT: Consider Resolution No. 99- Establishing an
Interest Rate on Loans to the Moorpark
Redevelopment Agency.
BACKGROUND: The City of Moorpark has loaned General Funds
to the Moorpark Redevelopment Agency for various purposes.
The interest rate charge to the Agency for those funds has
been ten percent (10 %) per annum. As part of the
discussions on loan repayments from the Agency, a reduction
of interest rates to eight percent (8 %) for the remaining
loans was agreed to.
DISCUSSION: Since 1993 the City of Moorpark has loaned
General Funds to the Moorpark Redevelopment Agency for
various operating and capital expenses when tax increment
revenues have been insufficient to meet the expenditure
requirements. The interest charged the Agency by the City
for the loaned funds has been ten percent (10 %) simple
interest per annum. When the Council and the Agency
discussed an accelerated repayment of the outstanding loans
(full repayment completed in Fiscal Year 00/01), both
bodies agreed the interest rate charged would be reduced to
eight percent (8 %).
The attached resolution will formally change the interest
rate charged on loans from the City to the Redevelopment
Agency to eight percent (8 %) simple interest. Payment of
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City Loan Interest Payments
Meeting of 21 July 1999
Page 02
interest is also set to occur between June 1 and June 15 of
each fiscal year, as had been previously discussed.
RECOMMENDATION: Staff recommends the City Council approve
Resolution No. 99- establishing interest charges for
City loans to the Moorpark Redevelopment Agency.
Attached: Resolution No. 99-
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RESOLUTION NO. 99-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ESTABLISHING AN INTEREST
RATE CHARGED ON THE LOAN OF CITY FUNDS.
WHEREAS, the City of Moorpark has loaned funds to the
Moorpark Redevelopment Agency for various purposes; and
WHEREAS, the interest rate charged on those loaned
funds has been ten percent (10 %) simple interest payable
annually; and
WHEREAS, in consideration of the Agency's accelerated
repayment of the loaned amounts to the City the City
proposes to reduce the annual interest rate charged.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MOORPARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Effective July 1, 1999, the interest rate
charged to the Moorpark Redevelopment Agency for any City
funds loaned to it shall be a rate of eight percent (8 %)
per annum simple interest.
SECTION 2. The interest due on all outstanding loan
balances shall be paid by the Agency to the City prior to
June 15 of each year for that year.
SECTION 3. The City Clerk shall certify to the
adoption of this resolution and shall cause a certified
resolution to be filed in the book of original Resolutions.
PASSED AND ADOPTED this 21St day of July 1999.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
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