HomeMy WebLinkAboutResolution No. 95-C166U
RESOLUTION NO. 95-C166
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
AUTHORIZING A LOAN FROM THE CITY OF AZUSA LIGHT FUND TO THE
CITY OF AZUSA GENERAL FUND
WHEREAS, the City of Azusa is undertaking certain actions which are necessary
and incidental to the carrying out of the Community Development Block Grant (CDBG)
Program previously been adopted by the City of Azusa; and
WHEREAS, the City has incurred an obligation to the General Fund to exchange
CDBG funds currently available from the City of Walnut for such purpose; and
WHEREAS, the payment of $202,330 is now due and payable to the City of Walnut
for said exchange; and
WHEREAS, the City General Fund desires to enter into a loan agreement with the
City Light Fund to fund these monies;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Azusa
that:
Section 1 The City Council hereby authorizes the following loan for purposes of
funding the CDBG Fund Exchange with the City of Walnut.
Section 2. Said loan shall be evidenced by a Promissory Note of the City of Azusa
General Fund (attached as Exhibit A) containing the following terms, in addition to all
usual and customary terms.
$202,330 5.784% 3 Years City Light Fund
The loan listed herein is payable according to the terms of the Note. The Note is payable
from any funds available to the City General Fund from which such payment may legally
be made. The Note may be prepaid at any time without penalty. Notwithstanding
anything in this Resolution or the Note to the contrary, the City General Fund's obligation
to repay the City Light Fund shall be limited and constrained to the payment due on
December 31, 1996. The City General Fund shall have no obligation to make any
additional payments pursuant to this Resolution or the Note unless such payments are
authorized by future action of the City Council.
Section 3. The Mayor of the City of Azusa is hereby authorized and directed to
execute, on behalf of the City of Azusa General Fund, the Note to the City of Azusa Light
Fund in accordance with the provisions of Section 2 hereof.
Mayor
PASSED AND ADOPTED this 20th day of November
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City of
Azusa at a regular meeting thereof, held on the 20th day of November 11995.
AYES: COUNCILMEMBERS: HARDISON, MADRID, BEEBE
NOES: COUNCILMEMBERS: NARANJO, ALEXANDER
ABSTAIN: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
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EXHIBIT "A"
CITY OF AZUSA
PROMISSORY NOTE
At the times and in the installments hereinafter stated, for value received, THE CITY OF
AZUSA agrees to pay to the order of the LIGHT FUND OF THE CITY OF AZUSA the total
sum of TWO HUNDRED TWO THOUSAND THREE HUNDRED THIRTY DOLLARS
($202,330.00) together with interest at the rate of 5.784% per annum, in annual payments
detailed as follows:
Pmt # Date Yr Rate P81 Payment Principal Interest New Balance
12/31/95
5.784%
-------
-------
-------
$202,330.00
1 12/31/96
5.784%
$73,625.88
$63,591.36
$10,034.52
$138,738.64
2 12/31/97
5.784%
$73,625.88
$67,368.59
$6,257.29
$71,370.05
3 12/31/98
5.784%
$73,625.77
$71,370.05
$2,255.72
$0.00
$220,877.53
$202,330.00
$18,547.53
The term of the Note shall commence December 31, 1995, and shall end on December 31,
1998, unless extended by mutual consent of both parties. The Note may be prepaid at
any time without penalty. Notwithstanding anything in this Note to the contrary, the
General Fund's obligation to make the December 31, 1997 and December 31, 1998
payments identified above is expressly contingent upon the City Council's authorization
of those payments in those years. The City General Fund shall not be deemed to be in
default of this Note if the City Council does not authorize the December 31, 1997 or
December 31, 1998 payments.
In event of default in payment of any amount as herein provided, then the entire amount
shall become due at the option of the City of Azusa. Principal and interest shall be
payable in lawful money of the United States at AZUSA, CALIFORNIA. Demand,
presentment for payment, protest and notice of protest are hereby waived.
Signed this 20th
By Promisor:
day of November , 1995 at Azusa, California.
For and"on behalf of the City of Azusa GENERAL FUND
Address: 213 East Foothill Boulevard
Azusa, California
(818) 812-5200
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