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HomeMy WebLinkAbouta200 Partial Defeasance Interest PaymentsCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: duly 19, 20111 AGENDA ITEM NO. ITEM TITLE: Resolution of the City of National City approving the redemption of $204,361.00 in CDBG funds held as State and Local Government Securities purchased under a Defeasance Escrow for the U.S. Department of HUD Section 108 Loan used to fund the construction of Fire Station 34, also approving the reallocation of $48,500.50 in CDBG funds from the remaining balance of a Fiscal Year 2010-11 allocation to the Christmas in July Rehabilitation Program to cover $252,861.50 of interest due on the Section 108 loan in Fiscal Year 2011-12, and furthermore approving an interim allocation from General Fund Contingency Reserves of $77,930.25 to complete the interest payment of $126,430.75 due on July 25, 2011 to be repaid from the proceeds of said Securities. PREPARED BY: Carlos Aguirre DEPARTMENT: Administrative Services APPROVED BY�� PHONE: (619) 336-43911 EXPLANATION: Please refer to the explanation immediately attached. FINANCIAL STATEMENT: APPROVED: finance ACCOUNT NO. I APPROVED: MIS The interest due in the amount of $252,861.50 in FY2011-12 on the Section 108 Loan will be paid with $204,361.00 of City -held Treasury Securities (account 506-0131) and a reallocation of $48,500.50 from the Christmas in July Housing Rehabilitation Program (account 301-409-000-650-0922)1 ENVIRONMENTAL REVIEW: The repayment of the Section 108 loan is exempt from NEPA Environmental Review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Resolution BOARD 1 COMMISSION RECOMMENDATION: There is no board or commission recommendation required. ATTACHMENTS: 1. Explanation- Partial Defeasance Escrow Interest Payments 2. Partial Defeasance Escrow Memorandum dated June 4, 2010