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• • <br /> RESOLUTION NO. 43-11 <br /> A RESOLUTION OF <br /> THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS <br /> AMENDING THE CITY COUNCIL ADOPTED 2011-12 BUDGET <br /> IN THE AMOUNT OF $1,244,708.42 TO PREPAY <br /> LEASE AGREEMENT#04-070-AF DATED SEPTEMBER 16,2004 <br /> FOR THE CONSTRUCTION OF THE TOWN HALL FACILITY <br /> AND AUTHORIZING THE CITY MANAGER TO <br /> TRANSMIT PAYMENT TO THE LENDER, CITY NATIONAL BANK <br /> WHEREAS, the City Council of the Town of Los Altos Hills approved and adopted the <br /> Operating and Capital Improvement Program Budgets for the Town of Los Altos Hills for fiscal <br /> year 2011-12 on the 16th of June 2011 which includes $195,964.90 for debt service on the Town <br /> Hall facility; and <br /> WHEREAS, the Town borrowed $2,000,0000 in 2004 for the construction of the Town Hall <br /> facility at an interest rate of 4.65% with a final maturity on the 16th of September 2019, attached <br /> hereto as EXHIBIT A; and <br /> WHEREAS, in accordance with Section 9.2 of the financing agreement the Town may prepay <br /> the unpaid principal balance in accordance with the Prepayment Option price set forth in <br /> Appendix B of the financing agreement and attached hereto as EXHIBIT B; and <br /> WHEREAS, low risk investments in compliance with the City Council adopted Investment <br /> Policy and as authorized under California Government Code Section 53601 are currently <br /> yielding significantly less than 1.00%per year; and <br /> WHEREAS, the Finance and Investment Committee reviewed opportunities to invest Town <br /> funds with PFM Asset Management at their special meeting on September 12, 2011 and voted <br /> unanimously to recommend that the City Council use accumulated unreserved, undesignated <br /> fund balance to pay off the Town Hall loan thereby realizing considerable interest savings when <br /> compared to continued investment in approved securities; and <br /> WHEREAS, the Town's General Fund budgeted unrestricted, undesignated fund balance was <br /> projected to be $2,974,600 on June 30, 2012 and sufficient liquid funds are available to make the <br /> prepayment; <br /> NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby resolve as <br /> follows: <br /> 1. The City Council does hereby approve an amendment the Town of Los Altos Hills' <br /> adopted Operating and Capital Improvement Program Budget for the fiscal year <br /> 2011-12 to prepay the outstanding debt for the construction of the Town Hall facility <br /> in the amount of$1,224,708.42. <br /> Resolution No.43-11 Page 1 <br />