HomeMy WebLinkAboutRES 10-151 RESOLUTION NO. 10-151
WHEREAS, in June,2000,the City of Beaumont borrowed$11 Million in the Series
2000-A public offering of trust certificates guaranteed under Section 108 of the Housing
and Community Development Act of 1974; and
WHEREAS, the current interest rates increase each year in range from 7.50% to
7.93% from August 1, 2011, through the maturity date of August 1, 2018; and
WHEREAS, an opportunity has been presented by HUD to refinance $7,530,000
through a July public offering at projected interest rates that are expected to range from
.48% to 3.43% from August 1, 2011, through August 1, 2018, resulting in a projected net
savings of$1,857,887 to the City; and
WHEREAS, the City Council of the City of Beaumont finds that it is in the best
interest of the citizens of the City of Beaumont to seek the refinancing in the July public
offering of the existing Section 108 loan amount of$7,530,000;
NOW, THEREFORE, BE IT RESOLVED BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the City Council authorizes the refinancing of the City of Beaumont Section 108 loan
(B-97-MC-48-003) assumed on June 14, 2000, in the original borrowed amount of $11
Million.
BE IT FURTHER RESOLVED THAT the City Manager be and he is hereby
authorized to execute all documents necessary to secure the refinancing.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 8th day of June,
2010.
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- Mayor Becky Ames -