9470-03 Authorizing the Mayor and or Controller of South Bend to make temporary loans

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COUNTY-CrCY BU[LDiNG SouTlt BEND, INDUNA 46601-1830 CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR PHONE 574/235-9216 FAx 574/235-9928 TDD 574/ 235-5567 DEPARTMENT OF ADMINISTRATION AND FINANCE FREDERICK B. OLLETT, III CONTROLLER November 5, 2003 Ms. Karen White, President South Bend Common Council 4"' Floor, County-City Building South Bend, IN 46601 Re: Ordinance to Make Loans for Repayment of Temporary Loan Anticipated Tax Warrants and for Issuance of New Warrants Dear Ms. White: As the Common Council is aware, this is an unusual year in terms of tax revenue receipts due to reassessment and the revised formula for property valuation. Consequently the Common Council adopted Ordinance 9417-03 on May 12, 2003 which provided for the Mayor and or Controller to make temporary loans to meet current operating expenses of various funds throughout the City and to issue temporary loan tax anticipation time warrants to evidence such loans and the sale of such warrants. The tax anticipation time warrants issued pursuant to Ordinance 9417-03 expire on December 31, 2003. Although the City Controller's office has been assured by the St. Joseph County Treasurer that the City's portion of tax revenues levied in 2002 and collected in 2003 will be paid to the City on December 31, 2003, it is possible that this will not occur due to delays in the issuance of citizen's tax bills. The attached Ordinance is intended to cover such a contingency. It provides for the Mayor and or Controller to make new loans to pay off the outstanding temporary loan anticipation tax warrants issued pursuant to prior Ordinance 9417-03, and to issue and sell new temporary loan tax anticipation time warrants to be paid from property tax revenues payable to the City for Fiscal Year 2003 but which may not be actually received until Fiscal Year 2004. The new temporary loan tax anticipation time warrants to be issued pursuant to the attached ordinance will mature February 27, 2004, and it is understood that these tax warrants would not exceed the tax revenue anticipated for Fiscal Year 2002 payable 2003 (but which might be received after December 31, 2003). The tax levy which will produce the revenue to pay these new tax warrants is estimated to produce in the aggregate an amount equal to or in excess of the principal and interest cost of making temporary loans to retire the previously issued tax warrants. I will be available to answer any questions you have about this Ordinance in your Committee meeting, and will make the presentation to the full Council at its public hearing. Thank you 'L'8Ti5ithration of this-Ordu ~~ed t~8 Csf~''`.'-~ ~fic~ ~ " "''" ,~ ®ti3tti~~6. ~~~H Sincerely, ~~ / ~ Frederick B. Ollett, III ~~ CATHERINE A. HUBBARD-$HEAD LIZ ROWS THOMAS $KARBEK SUSAN WALLACE DIRECTOR DIRECTOR DIRECTOR MANAGER HUMAN RESOURCES CITY FINANCE BUDGET'[NG A' FINANCLSL REPORTING BENEFITS