2010-10 AMENDING CERTAIN PRIOR ORDINANCES OF THE CITY PROVIDING FOR A LINE OF CREDIT WITH NATIONAL CITY BANK

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FINANCIAL MANAGEMENT DEPARTMENT #2010- 09 DATE: February 25, 2010 TO: Honorable Mayor Michael T McElroy and City Council FROM: Ryan P. McCrady, City Manager eA Ron E. Neufeld, Finance Director SUBJECT: Changes in Letter of Credit Financing for Wabash Crossing Phase III SUMMARY RECOMMENDATION: Staff recommends approval of the attached ordinance authorizing the increase in the maximum credit amount for a taxable letter of credit from $4.5 million to $4.75 million, extends the maturity date to December 31, 2010 and increases the rate from 30-day LIBOR plus 50 basis points to 30-day LIBOR plus 100 basis points. BACKGROUND: On October 2, 2006, City Council approved the $4.5 million taxable Letter of Credit to fund the costs for infrastructure improvements for Phase II of Wabash Crossing. On May 4, 2009 the City Council authorized an additional $250,000 to fund the costs for design and infrastructure improvements for Wabash Crossing Phase III. The attached ordinance amends the prior ordinances to extend the date, increases the Letter of Credit by $250,000 and increases the interest rate from 30-day LIBOR plus 50 basis points to 30-day LIBOR plus 100 basis points. POTENTIAL OBJECTION: There are no known objections to this ordinance. INPUT FROM OTHER SOURCES: None STAFF REFERENCES: Ron Neufeld, Finance Director- 424-2702 The Finance Director, Ron Neufeld and Greg Crowe, Assistant City Manager for Development Services will be in attendance to answer any questions. BUDGET/TIME IMPLICATIONS: The increase in rate will increase the interest being paid. The money is in the current budget and will also be in the 2011 budget.