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February 4, 1976 <br />To: Members of the Common Council <br />From: Peter H. Mullen <br />Subject: Transfer of Funds in Cumulative <br />Capital Improvement Fund <br />Gentlemen: <br />I am certain you are aware of our arrearage in the Municipal <br />Garage Sinking Fund. As of December 31, 1975, the Sinking <br />Fund had a balance of $50,000 and was in arrears $425,000. <br />In order to remove this deficit, and to maintain current <br />annual payments, $156,250 per year must be placed in the <br />Sinking Fund by December 31, 1976. By maintaining this <br />annual payment there will be accumulated $675,000 in the <br />fund and the fund will be current. <br />As you are cognizant of the desirability of South Bend's <br />bonds in the Municipal Bond Market, you can comprehend the <br />necessity of preserving our bond ratings. You are aware that <br />several security firms have communicated their concern re- <br />garding the garage bonds. <br />In order to establish immediate action on this deficit, and <br />to continue our excellent bond rating, we are requesting the <br />following transfers be made within the CCIF: <br />1. Transfer from Account 260 - Century Center $125,000.00 <br />2. Transfer from Account 440 - Other Materials 125,000.00 <br />$250,000.00 <br />3. Transfer to Account 810 - Bonds & Notes $250,000.00 <br />both in Accounts 260 and 440, Revenue <br />Sharing can be utilized to replace <br />said monies <br />It is our intention to utilize the $250,000 by directing it <br />into the Sinking Fund. We will apply $156,250 towards the <br />term bond requirements and the remainder of $93,750 can be <br />applied toward serial bond payments due this year. The serial <br />bond payments are provided for by the revenues from the parking <br />garages, parking violations, flat lots and meter revenues. <br />Estimates have indicated that the free parking on Saturdays <br />and Monday nights will produce a revenue loss of $20,000 which <br />