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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: John E. Nowak, Assistant City Manager
DATE: 03 September 1999 (Meeting of 09- 15 -99)
RE: Consider a Report on the City of Moorpark Loan to
the Moorpark Boys and Girls Club
BACKGROUND: In 1994 the City of Moorpark provided a
$82,000 loan to the Moorpark Boys and Girls Club. In 1997
the City Council restructured the loan with a five (5) year
repayment of principal and interest at 5% simple interest.
The September 1998 payment was not made and only partial
payment has been made on the interest due.
DISCUSSION: In 1994 the City Council approved a loan in
the amount of $82,000 to the Boys and Girls Club of
Moorpark at a 5% simple interest. No payments had been
made on the loan when on September 30, 1997 the Council
approved a restructuring of the loan which called for a
five year repayment or equal principal payments of $16,400
and decreasing interest payments of $4,100, $3,280, $2,460,
$1,640 and $820. The first installment was due on
September 30, 1998, but no payment was made.
Since November 1998 the Club has been making payments to
the City. Through July 1999 a total of $4,939.99 has been
paid. Since interest continues to accrue on the unpaid
principal and interest amounts, the interest owed in
September 1998 has been reduced to $2,576.68, but no
principal has been reduced. The Boys and Girls Club was
advised of the loan status in a letter dated 31 August 1999
which was provided to the City Council.
RECOMMENDATION: Direct staff as deemed appropriate.
000251-01,