Authorizing the Making of a Temporary Loan for the General Fund and the Issuance and Sale of Warrants

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ORDINANCE NO. 5162 -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 PURPOSE, AS AMENDED WHEREAS, The Common Council now finds that a necessity exists to provide funds for the General Fund of the City of South Bend, prior to the receipt of taxes in the year 1970, in order to meet the current running expenses of the City, provided for in the budget and appropriations adopt- ed for the year 1970, which expenses must be met prior to the receipt of taxes in the year 1970, and 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 poss- ible 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 One Million ($1,000,000.00) 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 appropriations 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 July 31, 1970. For the payment of said war- rants 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 pre- sentation thereof, at or after maturity. Section 2. Said warrant shall be signed by the Mayor, countersigned by the Controller, and the Seal of the City shall be affixed thereto and on said warrants and interest to the day of maturity shall be added and included in the face value thereof, and indicate the fund on account of which said warrant is issued and out of which said warrant is payable. Said warrant shall be issued in substantially the following form, all blanks to be properly filled in prior to delivery;