HomeMy WebLinkAbout1993-03-23 - AGENDA REPORTS - LACO LOAN PAYMENT (2)AGENDA REPORT
City Man,
Item to be presented by:
Steve Stark S S
CONSENT CALENDAR
DATE: March 23, 1993
SUBJECT: County of Los Angeles Loan Payment
DEPARTMENT: Finance
BACKGROUND
In June, 1988, the City entered into a General Services Agreement with the County of Los
Angeles. This agreement covers a loan for services provided by the County from
incorporation (12/15/87) through June 30, 1988. The City opted to pay for these services
plus interest within five years from the date of incorporation. Interest is calculated at the rate
of interest earned by the Los Angeles County Treasury Pool. At this time, the five year term
has expired and the City owes the County $1,769,159.80 in principal and interest as of
3/1/93.
In the FY 92-93 Budget, $1,500,000.00 was appropriated in Account No. 01-4101-292 to
make this payment to the County. An additional $269,159.80 will need to be transferred
from Account No. 01-4101-290 - Contingency in order to pay off the debt of $1,769,159.80.
Under the terms of the agreement the City Council has an option, with the consent of the
Los Angeles County Board of Supervisors, to renew the contract for an additional period not
to exceed five years. The only advantage to the City to extend the loan period would be for
cash flow and investment earnings.- However, current investment earnings are equal to the
interest charged by the County.
Staff recommends that budget transfer be made and that the payment of the loan to the
County be processed.
RECOMMENDATION
Approve a transfer of funds from Account No. 01-4101-290 - Contingency to Account
No. 01-4101-292 - Payment to County in the amount of $269,159.80.
2. Authorize pay-off of loan to County of. Los Angeles, Department of Auditor -Controller,
in the amount of $1,769;159.80 which includes principal and interest as of 3/1/93.
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APPROVED