Loaning Monies from various funds to other funds to pay off previously issued tax anticipation time warrants

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RESOLUTION NO. ~~ ? 2' - ~~ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, LOANING MONIES FROM VARIOUS FUNDS TO OTHER FUNDS TO PAY OFF PREVIOUSLY ISSUED TAX ANTICIPATION TIME WARRANTS WHEREAS, on June 9, 2008 due to property tax reassessment and anticipated delays in the timing of receipt of tax revenues by the City of South Bend, the Common Council enacted Ordinance No. 9846- 08 authorizing the Mayor and/or the Controller to make temporary loans to meet certain current operating expenses out of various funds of the City in anticipation of and not in excess of current taxes levied in the year 2007 and collectible in the year 2008. Ordinance No. 9846-08 further authorized the issuance of temporary loan Tax Anticipation Time Warrants to evidence such loans and the sale of such warrants; and WHEREAS, the City expected that by December 30, 2008 it would have received property tax revenues; however, it is unlikely the City will receive sufficient property tax revenues prior to December 30, 2008 to (i) pay off the Tax Anticipation Time Warrants issued pursuant to Ordinance 9846-08 which tax warrants mature and are payable in full with interest on December 30, 2008, and (ii) meet current operating expenses of various funds of the City. This Ordinance authorizes the loan of monies from various Funds within the City to pay off the Tax Anticipation Time Warrants issued pursuant to Ordinance 9846-08; and WHEREAS, the loan of funds under the City's present financial circumstances is an emergency caused by the delay in receiving tax revenues levied in 2007 and payable in 2008 which have yet to be paid to the City. Without such interfund loans, the City cannot meet its ongoing payroll and other operating expense without incurring substantially greater debt. Therefore, due to emergency, the repayment of temporarily transferred funds must be delayed as authorized by Ind. Code 36-1-8-4; and WHEREAS, all Funds from which loans are to be made have sufficient monies on deposit to make the temporary loans specified in this Resolution. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana:-, Section I. The aggregate sum of Eight Million Eight Hundred Fifty One Thousand Dollars ($8,851,000) shall be temporarily borrowed from certain City funds and loaned to other City funds as follows: Borrowed From: Health Insurance Fund (#711) $5,000,000 Liability Self Insurance Fund (#226) $2,651,000 Rainy Day Fund (#102) $1,200,000 Total $8,851,000 Loaned To: General Fund (#101) $6,103,000 Parks and Recreation Fund (#201) $2,035,000 Hall of Fame Bond Fund (#313) $ 713,000 Total $8,851,000