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REGULAR MEETING <br />MAY 12, 2003 <br />the Council at the request of the Petitioner. Council President White seconded the motion which <br />carried by a voice vote of eight (8) ayes. <br />BILL NO. 32 -03 PUBLIC HEARING ON A BILL OF THE COMMON <br />COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, <br />AUTHORIZING THE MAYOR AND /OR CONTROLLER <br />OF THE CITY OF SOUTH BEND, INDIANA, TO MAKE <br />TEMPORARY LOANS TO MEET CURRENT <br />OPERATING EXPENSES OF VARIOUS FUNDS OF THE <br />CITY IN ANTICIPATION OF AND NOT IN EXCESS OF <br />CURRENT TAXES LEVIED IN THE YEAR 2002, AND <br />COLLECTABLE IN THE YEAR 2003; AUTHORIZING <br />THE ISSUANCE OF TEMPORARY LOAN TAX <br />ANTICIPATION TIME WARRANTS TO EVIDENCE <br />SUCH LOANS AND THE SALE OF SUCH WARRANTS; <br />AND APPROPRIATING AND PLEDGING THE TAXES <br />TO BE RECEIVED IN SUCH FUNDS TO THE PAYMENT <br />OF SUCH WARRANTS INCLUDING THE INTEREST <br />THEREON <br />Councilmember Aranowski, Chairperson, Personnel & Finance Committee, reported that this <br />committee met this afternoon and sends this bill to the full Council with a favorable <br />recommendation. <br />Mr. Rick 011ett, Controller, City of South Bend, 1400 County -City Building, South Bend, Indiana, <br />made the presentation for this bill. <br />Mr. 011ett advised that this bill authorizes the City to borrow amounts to meet current running <br />expenses of various funds of the City. This bill will pledge property tax revenues to repay these <br />loans. Due to the court ordered statewide reassessment of all property in Indiana, the County <br />Assessors initiated a process to evaluate the value of property according to market values within the <br />various taxing districts. This process is time consuming and extensive and covers tens of thousands <br />of residential, commercial, utility and agriculture properties. The process is taking longer than the <br />normal annual updating for virtually all counties throughout Indiana. The state legislature <br />recognized the extended reassessments process will delay the mailing of correct tax bills this year <br />which in turn delays the payment of property taxes by individuals and corporations to the counties <br />and this in turn delays the distribution to various government municipalities and county agencies. <br />With this in mind the state legislature authorized the counties to issue provisional tax bills for up <br />to fifty percent (50 %) of 2001's tax levies within the next few weeks. Subsequently, in the fourth <br />quarter of this year, a second tax bill will be calculated and sent to taxpayers which adjusts the total <br />year's tax bill to the correct amount. This delay in the provisional tax bills and collection process <br />places the City of South Bend with the need to borrow short term amounts that will be paid off with <br />the tax distributions when those are transferred from the County. Mr. 011ett noted that there are <br />seven (7) funds of the Civil City that normally receive property tax distributions in June but will not <br />receive them on time this year. The City of South Bend has long exercised strong financial <br />discipline in its annual budget process by setting aside reserves to act as a support for the stable i <br />