HomeMy WebLinkAbout9966-09Amending Chapter 2, Article 14, to create a sewage works debt service reserve fund (#653)ORDINANCE No.
9966-09
Passed by the Common Council of the City of South Bend, Indiana
September 28,
Attest:
Attest:
City Clerk
~esident of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
September 29,
09
20
09
20
City Clerk
Approved and signed by me September 3 0
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20 0 9
ORDINANCE NO. ~ ~O~O -~~
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, AMENDING CHAPTER 2, ARTICLE 14, OF THE SOUTH BEND
MUNICIPAL CODE TO CREATE A SEWAGE WORKS DEBT SERVICE RESERVE
FUND (#653), TRANSFERRING TO FUND #653 THE TOTAL SUM OF $4,541,322
FROM VARIOUS FUNDS, APPROPRIATING THE SUM OF $4,541,322 WITHIN FUND
#653 FOR SEWAGE WORKS BOND DEBT SERVICE RESERVE OBLIGATION, AND
CLOSING FUND #650
STATEMENT OF PURPOSE AND INTENT
The City of South Bend Sewage Works Division has financed several significant capital
improvement projects out of bond obligations. These bond obligations require protection of
bondholders through debt service reserves which the City previously handled through policies of
insurance that are no longer of the credit quality required of such policies. To meet the Sewage
Works bond debt service reserve requirements, the City must have the sum of Four million one
hundred seven thousand two hundred seventy-nine dollars ($4,107,279) placed in a special
reserve account by September 30, 2009 plus $53,259 per month for a period of time thereafter.
To accomplish this, it is best that the City establish a new Sewage Works Debt Service Reserve
Fund (#653) which shall be non-reverting; that the sum of $4,541,322 be transferred to this Fund
from various other Funds within the City Sewage Works, and that the sum of $4,541,322 be
appropriated within Fund #653 for debt service reserve purposes. It is also appropriate that one
of the Funds from which a transfer is to be made, namely, Clay Sewage Fund #650, be closed
because it is no longer needed.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA as follows:
SECTION I Chapter 2, Article 14 of the South Bend Municipal Code is hereby
amended to add a new Section 2-158 to read in its entirety as follows:
Sec. 2.158.1 Sewage Works Bond Debt Reserve Fund
A SPw°ag_e Works Bond Debt Reserve Fund (#653) is created as the repository for
the t;ity's Sewage Works Bond debt service obligation. This Fund shall be non-
reverting~and shall be funded and operated in accordance with all legal and
~ei•ific bond ordinance requirements.
SECTION II. The following transfers of monies shall be made to Sewage Works Debt
Service Re::erve Fund #653:
Fund # Description
641 Sewage Works Operation
642 Sewage Works Depreciation
643 Sewage Works Operations &
Maintenance Reserve
650 Clay Sewage
Total
Amount Transferred
$2,355,000.00
$673,000.00
$427,000.00
$1,086,322.00
$4,541,322.00
SECTION III. The sum of $4,541,322.00 is appropriated within Sewage Works Debt
Service Reserve Fund #653 to satisfy the City's sewage works bond debt service reserve
obligation through 2009 and a portion of 2010.
SECTION IV. Clay Sewage Fund #650 is hereby closed because Clay Utilities is part of
the City of South Bend Sewage Utility and a separate fund is no longer needed.
SECTION V. This ordinance shall be in full force and effect from and after its passage
by the Common Council and approval by the Mayor.
i r
ember, South Bend Common Council
Att
ity erk
Presented by me to the Mayor of the City of South Bend, Indiana on the Zg'~ day of
~, 20~ , at 3'~ o'clock~.m. `
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City%~ lerkl ~~
Approved and signed by me on the ~o n day of f , 2 ~$ ,
at _~D .o'clock, ~.m.
1st READING -` _ t ~'~~
PUaLIC HEARING ~-t-~-J~
3 rd READING ~_Z„~-t7~,
NOT APPROVED
REFERRED
PASSES ~-2-~' pct
Mayor, City of S
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S EP - J 2009
Jvi1F;1'OO,~DS
GETY CL~nK, 59. BIND, ltl.
TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
76-09 A BILL OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, AMENDING CHAPTER 2,
ARTICLE 14, OF THE SOUTH BEND MUNICIPAL CODE
TO CREATE A SEWAGE WORKS DEBT SERVICE
RESERVE FUND (#653), TRANSFERRING TO FUND #653
THE TOTAL SUM OF $4,541,322 FROM VARIOUS FUNDS,
APPROPRIATING THE SUM OF $4,541,322 WITHIN FUND
#653 FOR SEWAGE WORKS BOND DEBT SERVICE
RESERVE OBLIGATION, AND CLOSING FUND #650
Respectfully report that they have examined the matter and that in their opinion,
this bill is being recommended to the full Council with a favorable
recommendation.
Ann Puzzello
Chairperson, Committee of the Whole
CITY OF SOUTH BEND STEPHEN J. LLTECKE, MAYOR
DEPARTMENT OF ADMINISTRATION AND FINANCE
GREGG D. ZIENTARA
CONTROLLER
September 9, 2009
Derek Dieter, President
South Bend Common Council
41'' Floor County-City Building
South Bend, IN 46601
RE: An Ordinance Creating a Sewage Works Debt Service Reserve Fund and Appropriating Monies
for that Purpose
Dear President Dieter:
Attached is an ordinance for consideration by the South Bend Common Council which creates a
new, separate Fund (#653) to hold Sewage Works bond debt service reserve monies which are
required under our outstanding sewage works bonds. The ordinance codifies the creation of this
Fund within a new Section of the South Bend Municipal Code. A separate Fund was
recommended to create clear accounting and tracking of these monies.
This ordinance also transfers from various Sewage Works Funds the total sum of $4,541,322
which is required to satisfy the City Sewage Works bond debt service reserve requirements
through 2009 and part of 2010 pursuant to bond documents. This ordinance then appropriates the
transferred monies for debt service reserve purposes.
Finally, one of the Funds from which monies are to be transferred for debt service reserve
appropriation is Clay Sewage General Fund #650. This Fund should be closed because it is no
longer needed.
I will present this Bill to the Common Council at its Committee meeting and at public hearing. I
maybe accompanied by Environmental Services Director Jack Dillon.
for your consideration of this ordinance.
City
COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830
PHONE 574/235-9216 FAx 574/235-9928 TDD 574/235-5567 ~~