HomeMy WebLinkAbout2010 CC RESO 2010-148 CDCRESOLUTION NO. 2010 — 148
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
AUTHORIZING THE CUMULATIVE EXPENDITURE OF $771,250 OF
TAX INCREMENT FUNDS FOR THE FISCAL YEARS 2010-2013
STREET RESURFACING IMPROVEMENT PROGRAM
WHEREAS, the City of National City (the "City") has an on -going Street
Resurfacing Program that includes repairs of curbs, gutters, sidewalks, driveways, pedestrian
crossings, and provides traffic stripping and signage; and
WHEREAS, the City Engineering Division desires to implement a Street
Resurfacing Project for fiscal year 2010-2011 because to defer the repair and resurfacing of
streets would lead to higher costs in the future due to worsening pavement conditions and
escalating construction costs; and
WHEREAS, the street resurfacing program for fiscal year 2010-2011 will cost
approximately $4,043,000 utilizing carry-over TransNet funds in the amount of $1,000,000;
Proposition 1 B funds in the amount of $908,000; and Proposition 42 Replacement funds in the
amount of $635,000; and
WHEREAS, the Engineering Division desires to borrow the remaining balance of
$1,500,000 through an interim loan from the Sewer Funds as follows:
• The principal amount of the loan will be $1,500,000.
• Funds will be transferred from the Sewer Fund into Street Resurfacing
Project Accounts 511-409-580-598-6035 and 307-409-580-598-6035 as
necessary.
• The interest on the loan shall be at the rate of 0.75% per annum on the
unpaid balance, totaling $40,102.64.
• The loan will be repaid with interest, using the graduated payment schedule
below:
June 30, 2011
June 30, 2012
June 30, 2013
June 30, 2014
June 30, 2015
TOTAL:
$11,250.00
$340,000.00
$420,000.00
$350,000.00
$418,852.64
$1,540,102.64
Tax Increment Funds
Tax Increment Funds
Tax Increment Funds
TransNet (Prop A) Funds
TransNet (Prop A) Funds
WHEREAS, taking advantage of the debt financing from sewer funds gives the
City the opportunity to resurface a large number of street sections in one year resulting in long-
term -cost savings that will more than compensate for the interest and other costs paid on the
debt; and
Resolution No. 2010 — 148
Page 2
WHEREAS, pursuant to the Redevelopment Plan for the National City
Redevelopment Project, the Community Development Commission of the City of National City
("CDC") is authorized to expend tax increment funds for public improvements, including but not
limited to street improvements.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the expenditure of $771,250 in tax
increment funds for the City's Fiscal Year 2010-2011 Street Resurfacing Improvement Program,
said funds to be utilized to repay a portion of a $1,500,000 loan to the City's Sewer Enterprise
Fund, according to the graduated payment schedule set forth in the attached Exhibit "A".
PASSED and ADOPTED this 22nd day of June, 2010.
Ron Morrison, Chairman
ATTEST:
Brad Raulston, Secretary
APPROVED AS TO FORM:
George H. Eiser, Ill
City Attorney
Roan Amortization Schedule Graduating Payment for $1.5M
Enter values'
LoanamounT 1,500,000.00
Annual interest rate 0.75 % ,
Loan period in years. 5
Number of payments per yearT 1 I
Start date of loan _ 6/30/20101
Optional extra payments' $ _
Lender name:. Sewer Service Fund
Pmt
No. Payment Date
1 6/30/2011
2 6/30/2012
3 6/30/2013
4 6/30/2014
5 6/30/2015
Beginning
Balance
$ 1,500,000.00
1,500, 000.00
1,171,250.00
760,034.38
415,734.63
Scheduled
Payment
$ 11,250.00
340,000.00
420,000.00
350,000.00
418,852.64
Scheduled number of payments
Actual number of payments
Total early payments $
Loan summary.
Scheduled payment $ 306,783.62 .
5
Total Interest $ 40,102.64
Total Payment Principal
$ 11,250.00 $
340,000.00 328,750.00
420,000.00 411,215.63
350,000.00 344,299.74
418,852.64 415,734.63
Ending Cumulative
Interest Balance Interest
$ 11,250.00 $1,500,000.00
11,250.00 1,171,250.00
8,784.38 760,034.38
5,700.26 415,734.63
3,118.01 0.00
$ 11,250.00 TI
22,500.00 TI
31,284.38 TI
36,984.63 Prop A
40,102.64 Prop A
Passed and adopted by the Community Development Commission of the City of
National City, California, on June 22, 2010, by the following vote, to -wit:
Ayes: Commissioners Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Community Development ommission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-148 of the Community Development Commission of the City
of National City, California, passed and adopted on June 22, 2010.
Secretary, Community Development Commission
By:
Deputy