12-13-10 Council Agenda & Packet

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ORDINANCE NO. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, ESTABLISHING THE 2010 SEWAGE WORKS REVENUE BOND CONSTRUCTION FUND (#658) STATEMENT OF PURPOSE AND INTENT The City of South Bend, Indiana presently owns and operates a sewage works by and through the Board of Public works for the collection and treatment of sewage and other wastes pursuant to the provisions of Indiana Code 36 -9 -23, as amended. The City of South Bend Sewage Works Division has financed several significant capital improvement projects out of bond obligations and has recommended to the City of South Bend Common Council that certain additions, extensions, and improvements to the Sewage Works were necessary. On November 8, 2010, in Ordinance No. 10052 -10 the City of South Bend Common Council authorized the sale of sewage works revenue bonds in an amount not to exceed $9,345,000. Bond covenants and proper accounting principles require that these bond proceeds be deposited into a separate Fund to be used to pay bond issuance costs and project expenditures. To accomplish this, it is in the best interest of the City to establish a new 2010 Sewage Works Revenue Bond Construction Fund ( #658), which shall be a non- reverting Fund. The new Fund 658 will earn interest on cash balances and will be subject to appropriation by the City of South Bend Common Council. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA as follows: SECTION I. The 2010 Sewage Works Revenue Bond Construction Fund ( #658) is established within the City of South Bend to receive bond proceeds and to pay bond issuance costs and project expenditures for the acquisition, construction, and installation of additions, extensions and improvements to the Sewage Works, pursuant to the Project identified and approved in Ordinance No. 10052 -10. SECTION 2. All disbursements from Fund 658 will be in accordance with bond requirements and will be subject to the City of South Bend Common Council appropriation. The 2011 budget for Fund 658 was passed by the Common Council on October 25, 2010. SECTION 3. The monies deposited into this Fund 658 will remain in the Fund and shall not revert to the General Fund or any other City fund. Outstanding cash balances will earn interest and this interest will be retained in Fund 658.