HomeMy WebLinkAbout04-25-1988 Item #F-2cApril 25, 1988
TO:
FROM:
SUBJECT:
Recommendation:
CITY OF NEWPORT BEACH
Marine Department
MAYOR AND CITY COUNCIL
Marine Director
Agenda Item No.F-2-c
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
�PR 2 5 1988
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BALBOA YACHT BASIN STATE LOAN INTEREST RATE
REDUCTION 7,1'
If desired, approve Resolution No. authorizing the Mayor and
City Clerk to approve an amendment to the City's contract with the
California Department of Boating and Waterways for the Balboa
Yacht Basin Reconstruction Loan. The amended contract reduces the
interest rate from 7.9% to 6%, retroactive to August 1, 1987.
Discussion;
The City Council, in November, 1982, and in August, 1983,
contracted with the California Department of Boating and Waterways
for a loan in the amount of 3.3 million dollars to rebuild the
Balboa Yacht Basin. The repayment schedule for the loan(s) began
on August 1, 1987 and August 1, 1988. The loans are amortized
over 30 years with an interest rate of 7.9% per annum.
The State of California last year approved reducing the interest
rate on outstanding loans from 7.9% to 6%, retroactive to August
1, 1987. The 1.9% interest rate reduction reduces the debt
service from the current $269,600 to approximately $204,600 for a
total interest saving of approximately $62,000 the first year and
slightly less each succeeding year.
David Harshbarger
Marine Director