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

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ORDINANCE NO. 4975 -68 FILED IN CLERK'S WICE JAN 2 4 1968 KATHRYN L. SLOUGH CITY CLERIC, SOUTH BEND, IND. AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, AUTHORIZING THE MAKING OF A TEMPORARY LOAN FOR THE GENER",.L FUND PVD THE ISSUANCE AND SALE OF WARRANTS OF THE CITY FOR SUCH PURPOSE. 11HEREAS, 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 1968, in order to meet the current running expenses of the City, provided for in the budget and appropriations adopt- ed for the year 1968, which expenses must be met prior to the receipt of taxes in the year 1968, and WHEREAS, The Common Council now finds that the net assessed valuation of taxable property in the City, as shown by the assessment made for the City and County taxes in the year 1967 is in the amount of Two Hundred Thirty -Two Million, Four Hundred Thirteen Thousand, Two Hundred and Sixty (232,413,260) Dollars; that the levy made for the General Fund of this City for the collection in the year 1968 is in the amount of 2.113 on each One Hundred (100) Dollars of taxable valuation which levy is es- timated to produce the sum of Four Million, Nine Hundred Ten Thousand, Eight Hundred Ninety -Two and 18 /100 (4,910,892.18) Dollars, and the Con- troller 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 c 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 appropriations adopted for the year 1968; which expenses must be made prior to the receipt of taxes in the year 1968. 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 re- quired by the purchaser, numbered consecutively from one up, bearing inter- est 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 all of said warrants, together with interest thereon, shall mature and be payable on or before June 30, 1968. 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 1968. 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. 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 attested by the signature of the City Clerk, and the interest accruing on said warrants to the day of maturity shall be added and included in the face value thereof, and indicated 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: - 1 -