07-24-00 Council Meeting Minutes

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REGULAR MEETING JULY 24, 2000 in September in order that the City could investigate some other possibilities. The motion failed for lack of a second. - Councilmember Aranowski indicated that he would be in favor of investigating the option of a food and beverage tax or the hotel motel tax to help pay down these bonds. He noted that a three million dollar ($3,000,000.00) payment will be coming due in 2005 which will have to come out of general fund money. The general fund helps to pay for personnel and capital improvements in the neighborhoods. Restructuring the bonds will save money and general fund dollars. Councilmember Aranowski stated that he is open to any suggestions that would help pay off the bonds but he feels this is the route to go at this time and he is in favor of this action. Councilmember Ujdak stated that this issue has been a long battle. The City does own the building. He stated that he would feel more confident if other sources of funding could be procured. The bond needs to be paid down now. He noted that he believes that this action is the most prudent thing to do at this time and will support the bill. Councilmember Kirsits noted that the City is looking forward to firming up the agreement with the NFF because they need to accept this share of the operating costs of the Hall. The City is stuck with the building and has to pay for it. He noted that he does not like an increase in property taxes but it does save two million dollars ($2,000,000.00) in the long run. He further stated that the City needs to continue to explore the use of option income tax funds and perhaps incorporate some of Councilmember Varner's six (6) or seven (7) suggested different sources of revenue. At this time he believes this action is the right way to go. Councilmember Ujdak offered a friendly amendment to the Resolution as follows: New paragraph #4: 4. The Common Council in hopes of reducing the property tax rate in future years hereby urges the City of South Bend to seek additional sources of bond repayment by working with other area organizations and bodies such as the Hotel/Motel Tax Board, Indiana State legislature and the St. Joseph County Council to procure additional monies through the use of alternative user fees and taxes generated by tourism and convention business. 5. This Resolution shall be in full force and effect from and after passage by the Common Council and approval by the Mayor. Councilmember Ujdak made a motion to accept the amendment as presented. Councilmember White seconded the motion which carried by a voice vote of nine (9) ayes. Councilmember Kelly made a motion to adopt the Resolution as substituted and amended. Councilmember King seconded the motion which carried by vote of eight (8) ayes and one (1) nay by Councilmember Varner. RESOLUTION NO. 2910-00 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA APPROVING AN AGREEMENT RE- ESTABLISHING THE ST. JOSEPH COUNTY HOUSING CONSORTIUM AND AUTHORIZING THE EXECUTION THEREOF WHEREAS, on November 28,1990, the National Affordable Housing Act (NAHA) of 1990. also known as the Cranston - Gonzales Act, became law, to implement its stated goal that every American family be able to afford a decent home; and