No. 0819 authorizing issuance of bonds on parity with COSB redevelopment district tax increment revenue bonds of 1985 & 1986 for purpose of raising money for property acquisition and redevelopment in SBCAA

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' ' ' . SPRINGSTED EXHIBIT K Public Finance Advisors 251 North Illinois Street, Suite 1510 Indianapolis, Indiana 462041942 317237.3636 November 12, 1987 Mr. F. Jay Nimtz, President Members, Redevelopment Commission Mr. Jon R. Hunt, Executive Director Department of Economic Development City of South Bend 1200 County -City Building South Bend, Indiana 46601 RE: Certification for Tax Increment Parity Bonds We have prepared the attached bond maturity and cash flow schedule relating to a 1988 tax increment revenue bond issue in the amount of $1,800,000. The projected tax increment revenue stream demonstrated to be available for payments on the 1985, 1986 and 1988 tax increment bond issues is based on actual assessed values in place within the applicable tax allocation areas as of March 1, 1986 and is adjusted to March 1, 1987 values to the extent data is available from St. Joseph County. Final assessed values as of March 1, 1987 are not yet available from the County. We certify, based on the assumptions stated herein, that the tax increment revenue estimated to be received in each year bonds are outstanding is estimated to be equal to at least 150% of the estimated principal and interest requirements for each respective year during the terms of the 1985, 1986 and the 1988 tax increment bond issues. This certification is based, in part, on the fact that the Redevelopment Commission has passed a resolution finding that to authorize any payment to the respective taxing units from tax increment revenue will endanger the interests of the holders of the 1985, 1986 and 1988 series bonds. In making the revenue estimates for this certificate, we have adjusted the assessed values for current and future reductions of real property tax abatements granted to property owners within the allocation areas. No increases in the tax increment revenue stream were assumed resulting from projected inflation in property values or increases in property tax rates. We have assumed in computing compliance with the 150% coverage requirement, that $355,000 will be deposited in the principal and interest account no later than the closing on the 1988 tax increment bond issue. This money will be available to reduce, in effect, the net debt service requirements during the first three years, thus raising the coverage ratios to a minimum of 150 %. Home Office Wiscons.n Office 85 East Seventh Place, Suite 100 500 Elm Grove Roan 101 Saint Paul, 'Annesota 551012143 Elm Grove. Wisconsin 531220037 612-223.3000 414 782 8222