HomeMy WebLinkAbout135-98RESOLUTION NO. 135-98
USING CHILD CARE DEVELOPMENT FUNDS TO FORGIVE INTEREST
ON THE SAN RAMON VALLEY SCHOOL AGE CHILD CARE ALLIANCE
(KIDS' COUNTRY) LOAN
WHEREAS, The Town of Danville signed a commercial loan agreement with the Bank of San
Ramon Valley on January 19, 1990 for $250,000 to fund two modular child care structures at
Green Valley and Montair Schools, maturing on June 30, 2000; and
WHEREAS, principal is paid at $12,500 semiannually, and the variable interest rate has
remained at 7.25% for most of the life of the loan; and
WHEREAS, the Town also signed an Agreement with the San Ramon Valley School Age Child
Care Alliance dated January 26, 1990, calling for the Alliance to make payments to the Town for
$12,500 semiannually, to coincide with the principal payments which the Town pays to the bank.
and for the Town to subsidize the first $50,000 in interest, with the Alliance paying the remainder
of the interest, payable in $5,000 semiannual installments beginning on June 30, 2000; and
WHEREAS, the Board of Directors of Kids' Country requested that the Town of Danville use
Child Care funds to forgive the interest due to the Town on the Child Care Alliance loan, which
should total approximately $58,000 by June 2000; and
WHEREAS, the Child Care fund has an unreserved fund balance of $265,816 as of June 30,
1998; now, therefore, be it
RESOLVED, that the Danville Town Council forgive approximately $58,000 in interest on the
San Ramon Valley School Age Child Care Alliance (Kids' Country) loan.
APPROVED, by the Danville Town Council at a regular meeting on September 1, 1998, by the
following vote:
AYES: Waldo,
NOES: None
ABSTAINED: None
ABSENT: None
Arnerich, Doyle, Greenberg,
Shimansky
MAYOR
'~PP OVED AS TO FORM:
.:
CITY ATTORNEY
ATTEST:
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