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Legislation #: 070679 Introduction Date: 6/7/2007
Type: Ordinance Effective Date: 6/24/2007
Sponsor: None
Title: Authorizing the Director of Finance/CFO to execute a one-year Linked _ Special EDC Loan Corporation/Small Business Loan Fund time deposit with Central Bank of Kansas City in an amount not to exceed $5,000,000.00.

Legislation History
DateMinutesDescription
6/5/2007 Filed by the Clerk's office
6/7/2007 Referred to Finance and Audit Committee
6/13/2007 Advance and Do Pass, Debate
6/14/2007 Passed

View Attachments
FileTypeSizeDescription
070679.pdf Authenticated 66K Authenticated
Fiscal Note.xls Fiscal Note 33K Fiscal Note
Fact Sheet 2007 Central Bank 6-5-07.xls Advertise Notice 48K Central Bank Fact Sheet

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ORDINANCE NO. 070679

 

Authorizing the Director of Finance/CFO to execute a one-year Linked & Special EDC Loan Corporation/Small Business Loan Fund time deposit with Central Bank of Kansas City in an amount not to exceed $5,000,000.00.

WHEREAS, Ordinance No. 050120 authorizes the Director of Finance to allocate $20,000,000.00 to qualified Kansas City, Missouri banks for the Linked Deposit Program and, pursuant to a Depository Trust Agreement, up to $500,000.00 per bank under the City-Wide Deposit Program; and

WHEREAS, Douglass National Bank (DNB) is the only bank currently participating in the Linked and City-Wide Deposit programs in the amounts of $5,000,000.00 and $350,000.00, respectively; and

WHEREAS, Central Bank of Kansas City (CBKC) would like to establish a special Linked Deposit in the amount of $5,000,000.00 at 3.00% interest for a term of one year to both provide a source of funds to consolidate an existing $816,000.00 loan the bank has with the EDC Loan Corporation with the purchase of a $651,000.00 loan the EDC Loan Corporation has with Douglass National Bank, and to increase lending activity in low-to-moderate income census tract areas in the approximate amount of $3,533,000.00 through the Citys Linked Deposit program; and

WHEREAS, said 3.00% rate of interest is 1.00% lower than that provided for in the Citys Linked Deposit Agreement; and

WHEREAS, Central Bank currently exceeds the Citys minimum banking requirements for both aforementioned deposit programs; and

WHEREAS, the City Council of Kansas City, Missouri expresses its intent to grant the issuance of a one-year Linked deposit to Central Bank of Kansas City and agrees to a 3.00% rate of interest, fixed in term for one year; and, therefore, understands and fully assumes the financial and economic risks thereof; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of Finance is hereby authorized to execute, on behalf of the City of Kansas City, Missouri, a 3.00%, one-year Linked Deposit Agreement in an amount not to exceed $5,000,000.00 with Central Bank of Kansas City, in the standard form on file with the Director of Finance.

_____________________________________________

Approved as to form and legality:

_______________________________

Heather A. Brown

Assistant City Attorney