9966-09Amending Chapter 2, Article 14, to create a sewage works debt service reserve fund (#653)

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ORDINANCE NO. ~ ~O~O -~~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 14, OF THE SOUTH BEND MUNICIPAL CODE TO CREATE A SEWAGE WORKS DEBT SERVICE RESERVE FUND (#653), TRANSFERRING TO FUND #653 THE TOTAL SUM OF $4,541,322 FROM VARIOUS FUNDS, APPROPRIATING THE SUM OF $4,541,322 WITHIN FUND #653 FOR SEWAGE WORKS BOND DEBT SERVICE RESERVE OBLIGATION, AND CLOSING FUND #650 STATEMENT OF PURPOSE AND INTENT The City of South Bend Sewage Works Division has financed several significant capital improvement projects out of bond obligations. These bond obligations require protection of bondholders through debt service reserves which the City previously handled through policies of insurance that are no longer of the credit quality required of such policies. To meet the Sewage Works bond debt service reserve requirements, the City must have the sum of Four million one hundred seven thousand two hundred seventy-nine dollars ($4,107,279) placed in a special reserve account by September 30, 2009 plus $53,259 per month for a period of time thereafter. To accomplish this, it is best that the City establish a new Sewage Works Debt Service Reserve Fund (#653) which shall be non-reverting; that the sum of $4,541,322 be transferred to this Fund from various other Funds within the City Sewage Works, and that the sum of $4,541,322 be appropriated within Fund #653 for debt service reserve purposes. It is also appropriate that one of the Funds from which a transfer is to be made, namely, Clay Sewage Fund #650, be closed because it is no longer needed. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I Chapter 2, Article 14 of the South Bend Municipal Code is hereby amended to add a new Section 2-158 to read in its entirety as follows: Sec. 2.158.1 Sewage Works Bond Debt Reserve Fund A SPw°ag_e Works Bond Debt Reserve Fund (#653) is created as the repository for the t;ity's Sewage Works Bond debt service obligation. This Fund shall be non- reverting~and shall be funded and operated in accordance with all legal and ~ei•ific bond ordinance requirements. SECTION II. The following transfers of monies shall be made to Sewage Works Debt Service Re::erve Fund #653: