9678-06 Authorizing the Mayor and Controller to make Temporary loans Levied in 2005 Collectable in 2006

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Common Council hereby authorizes the making of temporary loans to procure the amounts necessary, in combination with other available amounts, to meet such current running expenses for. each Fund and to pay necessary costs incurred in connection with the issuance and sale of temporary loan tax anticipation time warrants to evidence such temporary loans. The City has not previously issued temporary loan tax anticipation time warrants payable from 2006 tax revenues with respect to any of the Funds and the Common Council seeks to authorize the issuance of such temporary loan tax anticipation time warrants with respect to each Fund and the sale of such warrants pursuant to the provisions of Indiana Code 36-4-6, subject to and dependent upon the terms and conditions hereinafter set forth. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section I. It is hereby found and declared that an emergency exists for the borrowing of money and therefore the City by its Mayor is hereby authorized to make temporary loans to meet current running expenses pursuant to the provisions of Indiana Code 36-4-6 for the use and benefit of each of the Funds of the City in anticipation of current tax revenues actually levied and in the course of collection for the respective Funds for the year 2006, which loans shall be evidenced by temporary loan tax anticipation time warrants of the City (the "Warrants"). All Warrants shall be dated as of the date of delivery. A separate Warrant or Warrants shall be issued with respect to each Fund for each maturity date. The City is authorized to issue Warrants maturing and payable on December 29, 2006, in amounts not to exceed the following: Principal Amount: $18,500,000 Maturing December 29, 2006 Fund: General Fund (#101) Principal Amount: $7,350,000 Maturing December 29, 2006 Fund: Parks & Recreation (#201-1100) Principal Amount: $50,000 Maturing December 29, 2006 Fund: Cumulative Capital Development (#406) Principal Amount: $1,350,000 Maturing December 29, 2006 Fund: Police Pension (#702) Principal Amount: $1,000,000 Maturing December 29, 2006 Fund: Hall of Fame Bond (#313) Principal Amount: $1,246,00 Maturing December 29, 2006 Fund: Fire Pension (#701) Principal Amount: $460,000 Maturing December 29, 2006 Fund: Studebaker Bond (#310) The Warrants authorized herein shall bear interest prior to maturity at a rate or rates per annum not to exceed a maximum of eight percent (8.00%). The exact rate or rates of BDDBOI 4397054v1 - 2 -