pages: CityCouncil/2009-10-06.pdf, 9
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CityCouncil | 2009-10-06 | 9 | Counci lmember Matarrese inquired whether the State has to pay money back or can choose to keep the money until it borrows money again. The Deputy City Manager responded the State has to pay the money back in three years; continued the presentation. In response to Mayor Johnson's inquiry, the Interim City Manager stated the State is running a revolving loan program at cities' expense; the City should participate if there is no downside in terms of loss of money to the City; the City should participate as long as the interest rate comes out in the City's favor; that she has a philosophical problem with the issue. Mayor Johnson inquired whether the interest rate has been set. The Deputy City Manager responded the interest rate has been set at 2% the City is making a little more; the State Department of Finance rate will stay fixed through 2013. Vice Mayor deHaan inquired whether the State would take three years to pay the money back, to which the Deputy City Manager responded in the affirmative. Vice Mayor deHaan stated the City participated in the program last time, and then the State came up with the money within two months. The Deputy City Manager stated the State is paying the full cost associated with the issue this time. The Interim City Manager stated the construct is that cities would participate because the market is down; staff would not recommend participation unless it is in the City's best financial interest. Vice Mayor deHaan stated the State can take money within a ten year window; inquired when the ten year window is up. The Deputy City Manager responded the first take was in FY 2004- 2005 or FY 2005-2006. Vice Mayor deHaan inquired whether the League of California Cities is contemplating any other action. Councilmember Tam responded in the affirmative; stated that she would report on the League proposed ballot measure [under Council Communications]. Councilmember Gilmore inquired whether the City has lost $6.8 this Regular Meeting Alameda City Council October 6, 2009 | CityCouncil/2009-10-06.pdf |