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HomeMy WebLinkAbout03/03/89 Board of Public Works Special Meeting MinutesSPECIAL MEETING MARCH 3, 1989 A Special Meeting of the Board of Public Works was convened at 9:36 a.m. on Friday, March 3, 1989, by Board President John E. Leszczynski, with Mr. Leszczynski, Mrs. Patricia E. DeClercq and Ms. Katherine Humphreys present. Also present was Assistant City Attorney Marva Leonard -Dent. ADOPT RESOLUTION NO. 9-1989 - OF THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS RELATING TO THE DISTRIBUTION OF INFORMATION REGARDING TAX ANTICIPATION TIME WARRANTS (FIRST SERIES, 1989) Ms. Katherine Humphreys, Director, Administration and Finance, advised that the. Resolution submitted to the Board today for approval is to authorize the issuance of tax anticipation time warrants.in the amount of $4.7 million dollars in short term borrowing for the general fund. The money will be received at the end of March and will be paid back at the end of December. Ms. Humphreys stated that this action is necessitated to ease cashflow problems and she recommended approval of the Resolution as submitted. Therefore, Mrs. DeClercq made a motion that Resolution No. 9-1989 be adopted. Mr. Leszczynski seconded the motion and the following Resolution was adopted: RESOLUTION NO. 9-1989 RESOLUTION OF THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS RELATING TO THE DISTRIBUTION OF INFORMATION REGARDING TAX ANTICIPATION TIME WARRANTS FOR 1989 WHEREAS, on February 27, 1989, the City of South Bend Common Council (the "Common Council") adopted an ordinance entitled "AN ORDINANCE AUTHORIZING TAX ANTICIPATION TIME WARRANTS FOR 1989" (the "Ordinance") which authorized the City of South Bend (the "City") to make temporary loans to meet current expenses pursuant to the provisions of Indiana Code 36-4-6 for the use and benefit of the General Fund of the City, which loans were further authorized to be evidenced by tax anticipation time warrants of the City in the following amount: Amount $4,700,000 and: Fund General Fund WHEREAS, the Ordinance authorized and directed the City Controller to have tax anticipation time warrants (the "Warrants") prepared and to sell the Warrants at a price not less than the par value thereof to a purchaser or purchasers pursuant to a Purchase Agreement in accordance with the terms and conditions of the Ordinance; and WHEREAS, the Ordinance further authorized and directed the City Controller to make such filings and requests, deliver such certifications, execute and deliver such documents and instruments and otherwise take such actions as necessary or appropriate to carry out the terms and conditions of the Ordinance; and WHEREAS, an "Official Statement" relating to the sale of the Warrants has been prepared by Springsted Incorporated as the financial advisor to the City and presented to the City of South Bend Board of Public Works (the "Board") and the Board desires to approve the "Official Statement" as presented to it and authorize its distribution to facilitate the sale of the Warrants; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SOUTH BEND BOARD OF PUBLIC WORKS THAT: 1 1 61 SPECIAL MEETING MARCH 3, 1989 1 11 1. The "Official Statement" relating to the sale of the Warrants by the City is hereby approved in the form presented to the Board at this meeting. 2. Springsted, Incorporated is hereby authorized and directed to cause to be distributed the "Official Statement," substantially in the form presented to the Board at this meeting, with such changes which are approved by the City's legal counsel as Springsted Incorporated might recommend to describe adequately such warrants and information related thereto to all parties who in their judgment may be interested in purchasing the Warrants and to the purchaser or purchasers of the Warrants. 3. This resolution shall be in full force and effect from and upon compliance with the procedures required by law. ADOPTED at a special meeting of the City of South Bend Board of Public Works held on the 3rd day of March, 1989, in the Board of Public Works Meeting Room located on the Thirteenth (13th) Floor of the County -City Building, 227 West Jefferson Boulevard, South Bend, Indiana 46601. CITY OF SOUTH BEND BOARD OF PUBLIC WORKS s/ John E. Leszczynski s/ Patricia DeClercq s/ S. Katherine Humphreys ATTEST: s/ Sandra M. Parmerlee, Clerk Ms. Humphreys answered questions asked by the news media regarding the issuance of the warrants and explained the method by which the City receives its tax distribution from the County. She also provided an explanation of why the City needed to issue tax anticipation time warrants at this time because of cash flow problems due to the amount of the City's payroll, with three (3) payrolls due in the month of March. Ms. Humphreys further stated that the dollar amount required at this time is less than required in 1988 as it was determined that the Park Department fund did not need to be included at this time. She further stated that the money is borrowed at a lower interest rate and because of tax code laws, the City is allowed to invest the money at a higher interest rate and therefore, the City will not lose money. ADJOURNMENT There being no further business to come before the Board, upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the meeting adjourned at 9:40 a.m. Jot E. Leszczyn