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ORDINANCE NO. <br />AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF <br />SOUTH BEND, INDIANA, AUTHORIZING THE MAYOR AND OR <br />CONTROLLER OF THE CITY OF SOUTH BEND TO MAKE <br />TEMPORARY LOANS TO PAY OFF PREVIOUSLY ISSUED <br />WARRANTS AND MEET CURRENT OPERATING EXPENSES OF <br />VARIOUS FUNDS OF THE CITY AND TO I5SUE TEMPORARY LOAN <br />TAX ANTICIPATION TIME WARRANTS TO EVIDENCE SUCH LOANS <br />AND APPROPRIATING AND PLEDGING TAXE5 TO BE RECEIVED IN <br />SUCH. FUNDS TO THE PAYMENT OF THE WARRANTS INCLUDING <br />THE INTEREST THEREON <br />STATEMENT OF PURPOSE AND INTENT <br />On June 9, 2008, due to property tax reassessment and the anticipated delays in the timing <br />of receipt of tax revenues by the City of South Bend, Indiana (the "City") for the fiscal year ending <br />December 31, 2008, the Common Council of the City (the "Common Council") in Ordinance No. <br />9846-08 authorized the Mayor and or the Controller to make temporary loans to meet certain <br />current operating expenses of various funds of the City in anticipation of and not in excess of <br />current taxes levied in the year 2007 and collectible in the year 2008. Ordinance Number 9846-08 <br />further authorized the issuance of temporary loan Tax Anticipation Time Warrants to evidence <br />such loans and the sale of such warrants. <br />The City had expected that by December 31, 2008 it would have received property tax <br />revenues; however, it is likely that the City will not receive sufficient property tax revenues prior <br />to December 30 to (i) pay off the tax anticipation time warrants issued pursuant to Ordinance <br />Number 9846-08 which tax warrants mature and are payable in full and with interest on <br />December 30, 2008, and (ii) meet current operating expenses of various funds of the City. <br />This Ordinance authorizes the City's Mayor and/or Controller to make such temporary <br />loans as maybe necessary in order to pay off the outstanding tax anticipation warrants authorized <br />by Ordinance Number 9846-08 and to issue and sell new temporary loan tax anticipation time <br />warrants to evidence the loans for payoff of the prior warrants and meet the current expenses for <br />the funds described herein, in a sum not to exceed taxes levied in the year 2007 and collectible in <br />2008. The new tax warrants shall be subject to the terms and conditions set forth at Indiana Code <br />36-4-6. <br />BDDB01 54758i3v1 <br />