Town Of Moraga

331 Rheem Boulevard Promisory Note Will be Paid in Full

At its February 8 meeting, the Town Council considered several options for financing the $450,000 promissory note due on March 10, 2012 related to the purchase of 331 Rheem Boulevard now being used as the Town’s Public Works and Park Maintenance corporation yard. The purchase of 331 Rheem in 2010 enabled the Town to move the corporation yard out of the Hacienda de las Flores. Though interest rates for borrowing money are at all-time lows, so are interest rates on traditional investment instruments. In the current economy and given the health of the Town’s finances, the Town’s best return on investment is to pay the note in full when it is due. The Town Council directed staff to prepare a resolution to pay off the note using fund balance from the Town’s General Fund ($225,000) and the Palos Colorados settlement monies ($225,000).

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