9555-04 Extend Deadline for Water Leak Insurance Fund #644 Repayment of Loan Received from Water Works General Fund #620

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ORDINANCE NO. ~S 5~ ~~~ ORDINANCE TO EXTEND DEADLINE FOR WATER LEAK INSURANCE FUND (#644) REPAYMENT OF LOAN RECEIVED FROM WATER WORKS GENERAL FUND (#620) STATEMENT OF PURPOSE AND INTENT Due to the age and deterioration of the City's water pipe system, the City experienced an unexpected need for repair and replacement of City water lines in recent years. This unexpected cost exceeded funds set aside and dedicated to such repair which were held in Water Leak Insurance Fund (#644). The water user fee of $1.50 per month per user is the sole source of revenue for Fund #644 and was inadequate to cover the actual cost of water line repair/replacement in 2002-2003. The Water Leak Insurance Fund (#644) is capable of covering the costs of water pipe repair/replacement for 2004, but has no year-end surplus. Accordingly, it cannot pay off the loan of $260,000 which it had received from Water Works General Fund (#620) pursuant to Common Council authorization in December 2003 (Ordinance 9481-03). It is appropriate to extend the deadline for repayment to the Water Works General Fund (#644) of $260,000 by the Water Leak Insurance Fund (#620). NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL of the City of South Bend, Indiana as follows: Section I. The Water Leak Insurance Fund (#620) shall have until December 31, 2005 within which to repay to the Water Works General Fund (#644) the loan of $260,000 which Fund 620 received in 2002-2003 to cover the costs of unexpected water line repair and replacement. Section II. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Member, South Bend Common ouncil Attest: ~ ~G[~'~ City Clerk Presented by me to the Mayor of the City of South Bend, Indiana on the ~ ~ ~ a~~ day of 2 ~~ , at L`-~~ o'clock ~l._. m.