CC - Item 3G - Promissory Note Payable to City Terms•
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER v DATE: OCTOBER 9, 2007
SUBJECT: RECOMMENDED TERMS TO BE USED IN A PROMMISSORY NOTE
PAYABLE TO THE CITY FOR AN ADVANCE MADE BY THE CITY TO
RCDC ON SEPTEMBER 28, 2007
SUMMARY
On June 12, 2007 the Rosemead Community Development Commission ("RCDC") held
a special budget meeting. At that meeting, by a unanimous vote, the RCDC
Commissioners approved the budget which includes a transfer from the City's General
Fund to the RCDC Project Area No. 1 Capital Projects Fund of $2,497,920. A
promissory note is also necessary to complete this transaction. This report is to present
to the Council, for review, the terms to be considered for use in a promissory note to the
City from the Rosemead Community Development Commission.
STAFF RECOMMENDATION
Staff recommends that Council approve
forthcoming Promissory Note made by the
the terms listed below to be used in a
RCDC.
ANALYSIS
At the special RCDC budget meeting on June 12, 2007, the RCDC Commission
approved the FY2007-08 budget which included a transfer from the City's General Fund
of $2,497,920. On September 28, 2007 the cash was transferred from the City's
General Fund to the RCDC Money Market Account. Staff also informed the RCDC
Commission that they would bring back a promissory note payable to the City at a later
date. With the transfer completed, it is necessary to execute a note between the City
and the RCDC. Below, for your review, are the terms contemplated by staff to be used
in the promissory note-
1.
Date:
September 28, 2007
2.
Principal:
$2,497,920
3.
Rate :
5.25% annually (LAIF equivalent)
4.
Term:
20 Years
5.
Payment:
Annually, interest only; principal due September 28, 2027
See attached repayment schedule.
The interest rate is equivalent to current California Local Agency Investment Fund
(LAIF) rates earned by the City. Principal of $2,497,920 is due September 28, 2027.
APPROVED FOR CITY COUNCIL AGENDA: 0 0
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.7
City Council Meeting
August 28, 2007
Page 2 of 2
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Attachment
0 0
CITY OF ROSEMEAD
Repayment of Advance
5.25%
Outstanding
Principal Interest
Total
Principal
Payments Payments
Payments
September 28, 2007
$ 2,497,920.00
- $ -
$ -
2008
2,497, 920.00
- 131,140.80
131,140.80
2009
2,497,920.00
- 131,140.80
131,140.80
2010
2,497,920.00
- 131,140.80
131,140.80
2011
2,497,920.00
- 131,140.80
131,140.80
2012
2,497,920.00
- 131,140.80
131,140.80
2013
2,497, 920.00
- 131,140.80
131,140.80
2014
2,497, 920.00
- 131,140.80
131,140.80
2015
2,497, 920.00
- 131,140.80
131,140.80
2016
2,497, 920.00
- 131,140.80
131,140.80
2017
2,497, 920.00
- 131,140.80
131,140.80
2018
2,497, 920.00
- 131,140.80
131,140.80
2019
2,497, 920.00
- 131,140.80
131,140.80
2020
2,497, 920.00
- 131,140.80
131,140.80
2021
2,497,920.00
- 131,140.80
131,140.80
2022
2,497,920.00
- 131,140.80
131,140.80
2023
2,497,920.00
- 131,140.80
131,140.80
2024
2,497, 920.00
- 131,140.80
131,140.80
2025
2,497,920.00
- 131,140.80
131,140.80
2026
2,497, 920.00
131,140.80
131,140.80
2027
-
2,497,920.00 131,140.80
2,629,060.80
Total
$ 2.497.920 $ 2.622.816.00
$ 5.120.736.00