1996 RES R-46-96 - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 161 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, during the negotiation of the Defeasance, the City relied upon the agreement that had been reached with the Agency regarding compensation to the City for use of the City Treasurer and his staff in the Defeasance transaction; and WHEREAS, the Defeasance occurred and the loans were sold at better than 104% of their face value; and WHEREAS, the proceeds of the Defeasance were distributed in 1994 in approximate amounts as follows: $500,000 to the Redevelopment Agency, $88,400 to mortgagee homeowners, and $160,000 to the City's general fund in compensation for the services of the City Treasurer and his staff; and WHEREAS, no formal record of the agreement regarding allocation of funds between the Redevelopment Agency and the City was ever prepared, executed or acted upon; and WHEREAS, the City's auditors for the 1994-95 fiscal year have questioned the legality of the transfer of $160,000 to the City from the Redevelopment Agency as compensation for use of the City Treasurer and his staff; and WHEREAS, the City wishes to clarify and confirm its understanding and acceptance regarding the allocation of proceeds from the Defeasance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON HEREBY RESOLVES AS FOLLOWS: The City Council confirms, validates and ratifies the agreement reached in 1994 regarding allocation of proceeds from the defeasance of the Redevelopment Agency 1984 Single - Family Mortgage Revenue Bonds. The allocation of those proceeds represents a fair and equitable distribution of funds to cover the value of the financial expertise provided by the City through its City Treasurer to the Agency as well as refund of funds received in excess of the