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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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 COUNCII. 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 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 2005, 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 31, 2005 in amounts not to exceed the following: Principal Amount: Maturing Fund: General Fund (#101) Not to Exceed: $25,000,000 Principal Amount: Maturing Fund: Parks & Recreation (#201-1100) Not to Exceed: $6,000,000 Principal Amount: Maturing Fund: Cumulative Capital Development (#406) Not to Exceed: $1,000,000 Principal Amount: Maturing Fund: Police Pension (#702) Not to Exceed: $1,500,000 Principal Amount: Maturing Fund: Hall of Fame Bond (#313) Not to Exceed: $1,000,000 Principal Amount: Maturing Fund: Fire Pension (#701) Not to Exceed: $1,000,000 Principal Amount: Maturing Fund: Studebaker Bond (#310) Not to Exceed: $350,000 The Warrants 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 interest are to be determined under the terms of a Warrant Purchase Agreement, as hereinafter defined. Warrants not timely paid will bear interest at a rate or rates after maturity as set forth in the Warrant Purchase Agreement. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. It is understood that principal shall not be payable and interest shall not accrue on any Warrant or Warrants issued pursuant to this Ordinance until such principal amount has been advanced pursuant to requests made by the City to the Purchaser. In the event that the total principal amount of the