City Council
MEETING DATE: 9/27/2017
TITLE:
Title
Funding Request from Boys and Girls Club of Cathedral City
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FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve a temporary "bridge loan" of $35,000 to the Boys and Girls Club of Cathedral City to be repaid no later than January 31, 2018; authorize the necessary budget amendments; and authorize the execution of a promissory note.
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BACKGROUND:
Mayor Stan Henry and City Manager Charlie McClendon met with Boys and Girls Club Chief Executive Director Scott Robinson on September 12, 2017. Mr. Robinson disclosed a temporary cash flow issue the Club is facing, which will be resolved when an already awarded grant is received at the end of December 2017. As a result of the discussion, Mayor Henry requested an agenda item to allow Council to consider a temporary bridge loan to resolve the problem.
DISCUSSION:
The Boys and Girls Club provides a public benefit by providing after school programs and other educational and recreational activities and programs for children and youth from throughout Cathedral City.
Cathedral City has a long history of supporting the Boys and Girls Club and provided funding of $45,000 in the current FY17-18 budget. That payment to the Club has already been made for the current Fiscal Year.
The attached funding request outlines what the Club is seeking and identifies the grant source that will become available in late December from which the loan repayment will occur. The loan will be memorialized through a promissory note, which is attached as well.
FISCAL IMPACT:
There is no long-term cost to the City once the loan is repaid, however a budget amendment will be required to facilitate payment of the loan proceeds over the short term.
ATTACHMENTS:
Boys and Girls Club Request
Promissory Note