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FISCAL IMPACT <br /> <br />The final cost to the City to sell the Pleasanton VLF Receivable will not be known until the date <br />of the sale (it is dependent on market factors and the total number of participants). The attached <br />Resolution and the Purchase and Sale Agreement, however, set a minimum price of $1,033,901 <br />(91% of the Pleasanton VLF Receivable). If this is not achievable, the City will not be included <br />in the sale. Staff estimates the sale of the Pleasanton VLF Receivable will yield approximately <br />$1,051,000 (92.5%). An additional 3% in investment earnings on the VLF sale proceeds will <br />generate approximately $30,000 over the next twelve months, mitigating the reduction. <br />Therefore, staff anticipates the sale of the $1,136,257 Pleasanton VLF Receivable will cost <br />approximately $55,000. In exchange, the City is guaranteed to receive its funding and will not be <br />subject to the risk of future State budgetary actions. It is important to note that these dollars are <br />part of the planned funding for the General Fund in the coming two-year budget, and do not <br />represent new dollars in the financial planning process. <br /> <br />Respectfully Submitted, <br /> <br />Susan Rossi <br />Director of Finance <br /> <br />Nelson Fialho <br />City Manager <br /> <br />SR:05:169 <br /> <br /> <br />