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CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR <br />DEPARTMENT OF PUBLIC WORKS <br />Jul 22, 2009 ~ ~ l ~ ~ ~ - ~ ~ - <br />Y <br />Derek Dieter, President <br />South Bend Common Council <br />Re: Ordinance to Authorize Sewage Works Revenue Bond Financing <br />Dear President Dieter: <br />The attached ordinance is offered for Council consideration. It deals with <br />implementation of the CSO Long Term Control Plan for the wastewater utility in <br />accordance with the ordinance passed setting rates for 2006 through 2009. That <br />ordinance had 4 rate steps which are in place and contemplated a series of 4 revenue <br />bonds for early action projects. This action captures the tentative $ 3 million grant/loan <br />award of Economic Stimulus funding through SRF. This action dovetails the Stimulus <br />grant and low interest loan awarded to South Bend through the SRF such that total debt <br />service does not exceed what was contemplated in the rates for the revenue bond and <br />meets the stimulus test of sustaining local effort while stimulating the economy with <br />other shovel ready projects. <br />This is the fourth in a series of four revenue bond installments contemplated by <br />the Common Council in the last rate ordinance. Issuance of this 4th bond has been slowed <br />by the turmoil in he bond market late last Fall when we had planned to go to market and <br />as you know there was some serious trouble in the insurance and finance industries. It is <br />important to get on with the plan in order to capture the stimulus money (must close in <br />September). It is also important to show good faith progress while we negotiate terms of <br />a 20 year consent decree with EPA and the Department of Justice. <br />I will make the ordinance presentation from the perspective of what we will <br />implement with the proceeds. Legal and Finance experts will be available to answer <br />technical questions on the bond ordinance. <br />Sincerely, <br />Gary A. Gilot <br />{'~i~~ ~Il l~i~~i'+~J ~61~oC~ <br />J U L 2 2 2009 <br />JGHN VQGPI)~ <br />CITY CLEI,K, 5~3. EEi~'G, IN. <br />Department of Public Works Engineering Water Works Central Services Streets Environmental Services <br />Gary A. Gilot, Director Carl P. Littrell, P.E. David Tungate Matt Chlebowski Sam Hensley John 7. Dillon, Ph.D. <br />574/235-9251 574/235-9251 574/235-9322 574/235-9316 574/235-9244 574/277-8515 <br />Fax 574/ 235-9171 Fax 574/ 235-9171 Fax 574/ 235-5595 Fax 574/ 235-9007 Fax 574/ 235-9272 Fax 574/ 277-8980 <br />