10576-18 Authorizing the issuance of General Obligation Bonds

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BILL NO. 02-18 ORDINANCE NO. 10576-18 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO PAY FOR CERTAIN CAPITAL PROJECTS AND INCIDENTAL EXPENSES IN CONNECTION THEREWITH AND ON ACCOUNT OF THE ISSUANCE OF THE BONDS, AND ALL MATTERS RELATED THERETO STATEMENT OF PURPOSE AND INTENT The Common Council (the "Council") of the City of South Bend, Indiana (the "City"), has considered undertaking (i) replacement of current Fire Station 9 with a newly constructed station at the corner of Mishawaka Avenue and 21 st Street in the City which new station would be approximately 10,000 square feet and would house Engine 9, Medic 9, and Boat 2 and accommodate up to 7 assigned firefighters per day and (ii) construction of an additional classroom building on the grounds of the Luther J. Taylor Sr. Fire Training Center which proposed building would be an approximately 3,000 square foot building and would house a rugged, divisible classroom with capacity for 100 personnel and additional training props and storage areas (collectively, the "Projects") in the City. It would be of public utility and benefit and in the best interests of the City and its citizens to pay the costs of all or a portion of the Projects through the issuance of general obligation bonds of the City payable from a tax levied upon all of the taxable property of the City, as described herein, to the extent other revenues of the City are not available for such purpose, as more fully described herein. The Council now deems it advisable to issue, pursuant to Ind. Code §36-4-6-19, Ind. Code § 6-1.1-20-1, et. seq., and other applicable provisions of the Indiana Code (collectively, the "Act"), the "City of South Bend, Indiana, General Obligation Bonds, Series 2018" (the "Bonds"), in one (1) or more series (with an appropriate series designation for each such series), in the original principal amount of not to exceed Five Million Four Hundred Thirty Thousand Dollars ($5,430,000) (the "Authorized Amount") for the purpose of providing for the funding of (i) all or a portion of the costs of the Projects, (ii) preliminary expenses related thereto and all incidental expenses incurred in connection therewith (all of which are deemed to be a part of the Projects), (iii) the costs of selling and issuing the Bonds, and (iv) a debt service reserve fund for the Bonds as provided herein. The original principal amount of the Bonds, together with the outstanding principal amount of previously issued bonds or other obligations which constitute a debt of the City, is no more than two percent (2%) of one-third (1/3) of the total net assessed valuation of the City. The amount of proceeds of the Bonds allocated to pay costs of the Projects, together with estimated investment earnings thereon, does not exceed the cost of the Projects as estimated by the Council.