9550-04 Temporary loans to pay off previously issued temporary loans

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ORDINANCE NO. ~ ~ ~ ~ -~ 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 PAY OFF PREVIOUSLY ISSUED TEMPORARY LOAN TAX ANTICIPATION WARRANTS; AND TO ISSUE NEW TEMPORARY LOAN TAX ANTICIPATION TIME WARRANTS TO EVIDENCE SUCH LOANS AND APPROPRIATING AND PLEDGING TAXES TO BE RECEIVED IN SUCH FUNDS TO THE PAYMENT OF THE NEW WARRANTS INCLUDING THE INTEREST THEREON STATEMENT OF PURPOSE AND INTENT On May 24, 2004, due to property tax reassessment and the anticipated delays in the timing of the City of South Bend's receipt of tax revenues for the fiscal year ending December 31, 2004, this Council in Ordinance No. 9511-04 authorized the Mayor and or the Controller to make temporary loans to meet current operating expenses of various funds of the City in anticipation of and not in excess of current taxes levied in the year 2003 and collectible in the year 2004. Ordinance Number 9511-04 further authorized the issuance of temporary loan Tax Anticipation Time Warrants to evidence such loans and the sale of such warrants. The City hopes and expects that by December 31, 2004 it will receive property tax revenues for 2004 based upon the timing of tax reassessment bills to South Bend residents and the collection of tax revenues. Nonetheless, due to the complication caused by property tax reassessment, the method of property valuation, the appeal process, and the payment extensions available under Indiana State law, a possibility exists that the City will not receive its 2004 property tax revenues by December 31, 2004 which will render it unable to pay off the tax anticipation time warrants issued pursuant to Ordinance Number 9511-04 which tax warrants mature and are payable in full and with interest on December 31, 2004. This Ordinance will authorize the City of South Bend's Mayor and/or Controller to make such temporary loans as may be necessary in order to pay off the outstanding tax anticipation warrants authorized by Ordinance Number 9511-04 and to issue new temporary loan tax anticipation time warrants to evidence the loans for payoff of the prior warrants, in a sum not to exceed taxes levied in the year 2003 and collectible in 2004. The new tax warrants shall be subject to the terms and conditions set forth at Indiana Code 36-4-6. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section I. As declared in this Council's prior Ordinance 9511-04 an emergency exists for -1-