AGENDA CAPTION:
Title
Consider approval, by motion, of a letter agreement with CASA of Central Texas, Inc. to provide a reimbursement of a 10 year loan in the principal amount of $350,000 starting in Fiscal Year 2019.
Body
Meeting date: September 19, 2017
Department: City Manager’s Office, Steve Parker, Assistant City Manager
Funds Required: $350,000
Account Number:
Funds Available: $350,000 plus interest spread over 10 year period
Account Name:
CITY COUNCIL GOAL: Goal #7 Maintain Fiscal Responsibility
COMPREHENSIVE PLAN ELEMENT(s): N/A
BACKGROUND: CASA of Central Texas has requested that the City of San Marcos fund $350,000 towards the construction of their 6,000 square foot new facility located on Hunter Road. The City Council reviewed this request during the budget workshops that were held in July of this year. The City Council requested that CASA obtain interim financing and that the City Council would reimburse CASA for those loan payments over a 10 year period starting in Fiscal Year 2018-19. This was to be discounted at a 5% interest rate which equates to an annual payment of $45,326.60. To summarize the attached letter:
1. No loan payment reimbursements will be made without an approved building permit.
2. The first payment of $45,326.60 will be made by October 15, 2018. 9 additional payments will occur by October 15th for the next 9 consecutive years.
3. Payments will not exceed $453,266 over the 10 year period.
4. The City of San Marcos will be willing to ask the San Marcos City Council to waive actual General Fund permit fees which will adjust the annual payment of $45,326.60
5. The City reserves the right to pay off the outstanding balance early.