City Council

B. ANALYSIS OF EARLY PAYOFF OF THE CITIZENS BUSINESS BANK LOAN AND\nEARLY WITHDRAWAL OF THE 10-YEAR CERTIFICATE OF DEPOSIT\nIn December of 2014, the City of San Gabriel borrowed $7.8 million from Citizens\nBusiness Bank for the construction of the Public Works maintenance facility at\nan interest rate of 1.6%. The City was required to provide 100% collateral for the\nloan in the form of a 10-year certificate of deposit (CD) which earns interest at\n.6%. This report provides an analysis on the financial impacts of an early payoff\nloan and cashing out the CD before maturity.\nCalifornia Environmental Quality Act (CEQA) Determination: Not a Project as\ndefined in Section 15378 of the State CEQA Guidelines.\nRecommended Action:\nStaff recommends the City Council direct staff to move forward with an early\npayoff of the Citizens Business Bank loan and cash out the CD before maturity\nand invest the funds in eligible City investments.