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MEMORANDUM <br />June 5, 1978 <br />TO: Mayor and Co Toners <br />FROM: J. R. Hudge s <br />SUBJECT: Short Term ( ay)' Note <br />The General Fund currently has $1,339,000.00 invested in Certificates of <br />Deposit. ,$600,000.00 of this is invested ,at Bayshore National Bank and <br />$739,000.00 is invested at First City Bank. All of these Certificates <br />except one mature in late August. The exception will mature in middle <br />July. <br />' Accounting-has provided me-with data outlining by month expenditures for <br />contractural obligations, payroll., and budgeted items through fiscal year <br />end. Provided concurrently with this data was estimated revenue based on <br />previous experience. We estimate that expenses will exceed revenue by <br />approximately $350,000.00 for the sixty (60) day period between July l <br />and August 30. <br />w <br />t <br />In order to avoid cashing in four (4) of. our_Certificates of Deposit to <br />cover our cash flow requirements,- I am seeking authorization to borrow <br />$350,000.00 on a single-pay sixty (60) day note. The penalty for early <br />withdrawal of four of our Certificates will be approximately $13,000.00. <br />The interest on a $350,000.00 sixty-day note will be approximately <br />• $4,000.00. Therefore, authorization of-the loan will prevent the loss <br />of approximately $9,000.00 in interest earnings. <br />J. R. Hudgens <br />City Administrator <br />JRH/cb. <br />• .. <br />