Laserfiche WebLink
2111 <br /> ekrtj <br /> -M) <br /> MEMORANDUM RANCHO PALOS VERDES _ <br /> AMA' FED <br /> of the CityCouncil CITY COUNCIL <br /> TO: Mayor and Members *„OO PM vvieors <br /> Ycmr or <br /> FROM: Director of Finance, Brent D. Mattingly JUN 1 c 70Q3 <br /> DATE; June 15, 1993 <br /> ' <br /> SUBJEC T�: Loan Agreement between City and RDA - FY 1992- CITY CLERK <br /> RECOMMENDATION: <br /> Authorize the Mayor and City Clerk to execute the attached Loan <br /> Agreement between the City and the Rancho Palos Verdes <br /> Redevelopment Agency to fund Redevelopment Agency activities in <br /> fiscal year 1993-94 for the Portuguese Bend RDA Fund. The proposed <br /> loan will fund RDA activities in the amount of $133, 000 in FY 1993- <br /> 94 . <br /> BACKGROUND: <br /> On January 29, 1991, the RDA Board entered into a loan agreement <br /> with the City of Rancho Palos Verdes to fund RDA activities in the <br /> Redevelopment area. This agreement states that the loan shall <br /> mature concurrent with the close of the fiscal year. The purpose of <br /> this maturity date is so that the loan may be updated on an annual <br /> basis to consolidate loans in previous years with any repayments or <br /> additional loans. <br /> On July 25, 1991, the County of Los Angeles issued $10 million in <br /> County Improvement District Bonds as part of the Horan Settlement. <br /> A portion of these funds are available to fund activities in <br /> Abalone Cove. However, in the case of Portuguese Bend, the RDA does <br /> not currently have the resources to fund necessary projects; <br /> therefore, loans from the City are necessary. <br /> In past loan agreements with the Portuguese Bend fund the interest <br /> rate charged by the City was ten percent. Staff recommends that the <br /> interest rate be revised to equal the rate earned by the City on <br /> its LAIF deposits plus three percent. Currently, this would yield <br /> an interest rate of approximately 7. 64%. The attached loan <br /> agreement includes the revised interest rate provision for future <br /> interest calculations. <br /> The details on the two separate RDA funds and the City loans made <br /> to them are as follows: <br /> Portuguese Bend Fund <br /> As approved in the adopted fiscal year 1992-93 City budget, <br />