Laserfiche WebLink
COUNTY-CITY BUILDING <br />227 W.JEFFERSON BOULEVARD <br />SOUTH BEND, IN 46601 <br />~. <br />PEACE <br />i- _ <br />__\~ <br />CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR <br />OFFICE OF ADMINISTRATION & FINANCE <br />GREGG D. ZIENTARA, CITY CONTROLLER <br />November 3, 2010 <br />Mr. Derek D. Dieter <br />President of the Common Council of the City of South Bend <br />4th Floor, County-City Building <br />South Bend, IN 46601 <br />PHONE 574-235-9216 <br />FAx 574-235-9928 <br />re: Ordinance of the Common Council Creating Two (2) New Funds in Conjunction with the <br />Coveleski Stadium Project and the Redevelopment Commission Recovery Zone Bond Issue <br />Dear Council President Dieter: <br />The City of South Bend Redevelopment Commission is financing certain capital improvement projects at <br />Stanley Coveleski Regional Stadium out of bond obligations. Bond covenants and proper accounting <br />principles require that these bond proceeds be deposited into a separate fund to be used to pay bond <br />issuance costs, debt service reserves and project expenditures. To accomplish this, it is in the best <br />interest of the City to establish a new Coveleski Stadium Recovery Zone Economic Development Bond <br />Construction Fund (#438), which shall be anon-reverting fund. The funding for this construction fund will <br />be from the bond proceeds in the amount of $4.98 million dollars. The new Fund 438 will earn interest on <br />cash balances and will be subject to appropriation by the City of South Bend Redevelopment <br />Commission. <br />The City of South Bend Redevelopment Commission is financing certain capital improvement projects at <br />Stanley Coveleski Regional Stadium out of bond obligations. These bond obligations require protection <br />of bondholders through debt service reserves which the City previously handled through policies of <br />insurance that are no longer of the credit quality required of such policies. To meet the bond debt service <br />reserve requirements, the City must have an estimated sum of Four hundred Eighty Thousand ($480,000) <br />set aside in a separate fund at the time of closing. To accomplish this, it is in the best interest of the City <br />to establish a new Coveleski Stadium Recovery Zone Economic Development Bond Debt Service <br />Reserve Fund (#317), which shall be anon-reverting fund. The funding for the debt service reserve <br />amount will be from the bond proceeds of $4.98 million dollars. The new Fund 317 will earn interest on <br />cash balances and will be subject to appropriation by the City of South Bend Redevelopment <br />Commission. <br />Controller Gregg Zientara will present this bill to the Common Council at the Council assigned committee <br />meeting and at the public hearing. City Administration requests Common Council for a favorable <br />consider ion and passage of this bill. <br />ubmitted, <br />Gregg <br />cc: Stephen J. Luecke, Mayor of the City of South Bend, <br />~,. <br />__.._.._._.d--- <br />_, . <br />r~ r° <br />~~~~`~'' <br />