HomeMy WebLinkAbout19-08 - Repayment of the Remainder of the 2007 LoanRESOLUTION NO. 19-08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, AUTHORIZING REPAYMENT OF THE REMAINDER OF THE 2007
LOAN FROM THE GENERAL FUND TO THE PARK DEVELOPMENT FEES FUND
THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, in 2007, the City Council authorized a loan of $3,571,045 from the
General Fund to the Park Development Fees Fund for the purchase of property on
Monte Vista Avenue for the expansion of Brentwood Park (the "Loan"); and
WHEREAS, the City Council authorized the Finance Director to take all steps
necessary to structure the Loan and to provide for annual repayments of the Loan as
part of the adoption of the annual City Operating Budget; and
and
WHEREAS, the Loan was initially subject to an interest rate of six percent (6%);
WHEREAS, over time, other park improvement projects took priority over the
Loan repayment; and
WHEREAS, as of June 2014, the Loan balance had grown to $4,285,269; and
WHEREAS, during the adoption of the Fiscal Year 2014-2015 Annual Budget,
the City Council restructured and gave priority to repayment of the Loan, establishing a
20 -year loan term at an interest rate of one-half percent (0.5%), to be paid in annual
payments of $225,687; and
WHEREAS, during the adoption of the Fiscal Year 2015-2016 Annual Budget,
the City Council approved a partial advance repayment of $1,500,000; and
WHEREAS, in September 2015, the City Council adopted Ordinance No. 15-09,
increasing park impact fees; and
WHEREAS, over the past five years, the park impact fee revenues received have
exceeded the amount budgeted, generating a cash surplus available to repay the Loan
in full; and
WHEREAS, the current Loan balance is $1,731,074; and
WHEREAS, the City Council desires to utilize the available cash surplus to repay
the Loan in full.
Resolution No. 19-08 Page 1 of 2
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Costa
Mesa hereby authorizes the payment of the balance of the 2007 loan from the General
Fund to the Park Development Fees Fund in the amount of $1,731,074.
PASSED AND ADOPTED this 19th day of February, 2019.
ATTEST:
Brenda GreenUbity Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF COSTA MESA )
ss
APPROVED AS TO FORM:
"
- 4, -�" Kimberly Pall Barlow, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that
the above and foregoing is the original of Resolution No. 19-08 and was duly passed
and adopted by the City Council of the City of Costa Mesa at a regular meeting held on
the 19th day of February, 2019, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENIS, MANSOOR, MARK, REYNOLDS,
STEPHENS, FOLEY.
NOES: COUNCIL MEMBERS: NONE
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of
Costa Mesa this 20th day of February, 2019.
I& J
Brenda Gree City Clerk
Resolution No. 19-08 Page 2 of 2