9589-05 Authorizing Controller and Mayor to make temporary loans to meet current running expenses of various funds of current taxes levied in 2004, collectable in 2005

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ORDINANCE NO. , ~ ~ D~-' Q~ AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE MAYOR AND OR CONTROLLER OF THE CITY OF SOUTH BEND TO MAKE TEMPORARY LOANS TO MEET CURRENT RUNNING EXPENSES OF VARIOUS FUNDS .OF THE CITY IN ANTICIPATION OF AND NOT IN EXCESS OF CURRENT TAXES LEVIED IN THE YEAR 2004, AND COLLECTABLE IN THE YEAR 2005, AUTHORIZING THE ISSUANCE OF TEMPORARY LOAN TAX ANTICIPATION TIME WARRANTS TO EVIDENCE SUCH LOANS AND THE SALE OF SUCH WARRANTS AND APPROPRIATING AND PLEDGING THE TAXES TO BE RECEIVED IN SUCH FUNDS TO THE PAYMENT OF SUCH WARRANTS INCLUDING THE INTEREST THEREON STATEMENT OF PURPOSE AND INTENT The City Controller of the City of South Bend, Indiana ("City"), has represented and the Common Council of the City now finds that there will be insufficient amounts of monies for the following funds of the City: General Fund (101), Parks and Recreation Fund (201-1100), Cumulative Capital Development Fund (406), Fire Pension Fund (701), Police Pension Fund (702), Studebaker Bond Fund (310), and the Hall of Fame Bond Fund (313) (collectively, the "Funds") to meet the current running expenses of the City payable from each of such Funds during the fiscal year ending December 31, 2005, and prior to the respective June and December settlement and distribution of taxes levied for each such Fund, in particular given that there will not be a full distribution of taxes in June. The Common Council now finds that temporary loans for the Funds for such purposes should be made and that temporary loan tax anticipation time warrants evidencing such loans should be issued and sold, subject to the terms and conditions set forth herein and in accordance with the provisions of Indiana law. The levy proposed for collection for each of the Funds in the year 2005 is estimated to produce in the aggregate, with respect to each such Fund, an amount equal to or in excess of the principal and interest cost of making temporary loans for such Fund. A necessity exists for the making of temporary loans evidenced by temporary loan tax anticipation time warrants for each of the Funds in anticipation of the receipt of current revenues for each such Fund levied and in the course of collection for the year 2005 and the 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 tax revenues collectable in 2005 with respect to any of the Funds and the Common Council