Authorizing a Temporary Loan for the General Fund Sale of Warrants

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ORDINANCE NO. 5148 -70 AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE MAKING OF A TEMPORARY LOAN FOR THE GENERAL FUND AND THE ISSUANCE AND SALE OF WARRANTS OF THE CITY FOR SUCH PURPOSES AS AMENDED. WHEREAS, The Common Council now provide funds for the General Fund of receipt of taxes in the year 1970, in expenses of the City, provided for in ed for the year 1970, which expenses i taxes in the year 1970, and finds that a necessity exists to the City of South Bend, prior to the order to meet the current running the budget and appropriations adopt - aust be met prior to the receipt of WHEREAS, The Common Council has been advised that the State Board of Tax Commissioners presently is reviewing and considering the budget, levy and rate of the Civil City of South Bend, St. Joseph County, for the General Fund for the year 1970, and that the final rate of taxation for said Fund for taxes in the year 1969 payable in 1970 will be certified in accordance with Law as soon as possible. This is to further advise you that such rate so certified will be in an amount which when applied to the net assessed valuation of taxable property in the Civil City for taxes for the year 1969 payable in 1970 will produce net tax revenues for said Fund, excluding possible delinquencies, in an amount not less than $4,000,000.00. The Controller has presented to the Council his recommendation that a temporary loan be made for the General Fund in the amount, and subject to the terms hereinafter set forth; now, therefore, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA: Section 1. That a temporary loan in an amount not in excess of Seven Hundred Thousand (700,000) Dollars be made for and on behalf of the General Fund of the City of South Bend all of the proceeds of which loan shall be placed in the General Fund, and shall be used for the purpose of meeting the current expenses of the City included in the regular budget and appro- priations adopted for the year 1970, which expenses must be made prior to the receipt of taxes in the year 1970. Said temporary loan shall be evidenced by warrants of this City dated as of the date of delivery thereof, in such denominations as shall be required by the purchaser, numbered consecutively from one up, bearing interest at a rate not to exceed 6% per annum, the exact rate to be determined by bidding, which interest shall be payable at the time of the payment of the principal of said warrants, and of all said warrants, together with interest thereon, shall mature and be payable on or before June 30, 1970. For the payment of said warrants and interest thereon, there is hereby appropriated and pledged a suggested amount of the current revenues of the City to be derived from the General Fund tax levy collectable in the year 1970. The Controller and Treasurer are hereby authorized and directed to pay said warrants out of said taxes upon the presentation thereof, at or after maturity.