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• South Bend Redevelopment Authority <br />Special Meeting -Mare 3, 1994 <br />4. NEW BUSINESS (Cont.) <br />c. continued... <br />Mrs. Kolata explained that the Airport Tax Exempt Bond has certain tax <br />provisions that require the Authority to spend bond funds according to a <br />defined schedule. Since the funds were not spent by the designated dates, <br />there are fines and penalties resulting from that. At the time the bond was <br />sold, we had a choice of either yield restricting the bond proceeds or investing <br />them at the highest interest rate we could get. Choosing the option which <br />allowed us to invest them at the best possible interest rate put us on a schedule <br />for expending. the proceeds that we have not been able to meet. Immediately <br />after we got bond proceeds, interest rates dropped- and we were not able to <br />make the most of that option. In hindsight, it would have been better to <br />choose the option which restricted investment yield: <br />We have policed this infraction ourselves and have initiated payment of the <br />penalties. If we were to be found intentionally in default, the tax exempt <br />bonds would become taxable and cause major problems for our investors. <br />• U on a motion b Mr. Gamma e, seconded b Mr. Wroblewski and <br />P Y g Y <br />unanimously carried, the Authority authorized signing the Internal Revenue <br />Service forms and execution of the Payment Letter. <br />5. APPROVAL OF CLAIMS <br />Claims submitted for payment 3 March 1994 : <br />1991 AIRPORT TAX-EXEMPT BOND <br />Internal Revenue Service $ 4,425.97 <br />Internal Revenue Service $ 2,873.14 <br />Internal Revenue Service $ 7,998.72 <br />Internal Revenue Service $ 4,873.74 <br />Internal Revenue Service $ 8,646.33 <br />Internal Revenue. Service $ 4,942.92 <br />Internal Revenue Service $ 6,073.45 <br />Internal Revenue Service $ 3,245.21 <br />1993 AIRPORT TAXABLE BOND <br />John & Betty. Pendl and Ritschard Brothers, Inc. $ 1,522.93 <br />• <br />