1999 RES R-112-99 - Laserfiche WebLink

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1 6 7 8 9 IO I 12 13 14 15 16 17 tri 19i 20� 21 22 23 24 25 26 27 28 RESOLUTION R-112-99 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON DECLARING ITS INTENT TO ENTER INTO A TAX- EXEMPT LEASE OBLIGATION TO BE USED TO REIMBURSE THE CITY FOR EXPENDITURES PRIOR TO ENTERING INTO SUCH TAX-EXEMPT OBLIGATION WHEREAS, on July 15,1997 the City Council approved a reduced loan obligation between the Electric Utility Fund and the General fund, and; WHEREAS, repayment terms of the modified obligation called for annual payments of $175,000 from the General Fund to the Electric Utility Fund over a 30 year period, totaling $5,250,000 over that period, and, WHEREAS, the composition of principal and interest within each payment was not specified, and no resolution or promissory note was executed, and; WHEREAS, a market rate of interest would have been six percent (6%) per annum, and; WHEREAS, a $175,000 payment per annum would amortize a loan balance of $2,408,845.43 at 6% interest over 30 years, and; WHEREAS, the principal portion of payments made in fiscal years 1997-98 and 1998-99 would have totaled $62.766.70, and; WHEREAS, the resultant balance as of July 15, l 999 should have been $2,346,078.73 with 28 years remaining per the amortization schedule; NOW, THEREFORE BE IT RESOLVED that the city council of the city of colton acknowledges and approves a remaining loan balance of $2,346,078.73 from the electric utility fund to the general fund, with payments of $175,000 per year at six percent (6%) interest per annum, payable on July 15 of each year, maturing on July 15, 2027. PASSED, APPROVED AND ADOPTED this 21st day of Decerakr, 1999. Ka 4Gaytan,ayor AT T: Carolina P. Barrera, City Clerk Attachment: Promissory Note