HomeMy WebLinkAbout10055-10 Revenue Bond- Create Coveleski Stadium Recovery Zone Economic Development Bond Debt Service Reserve Reserve Fund # 317ORDINANCE No. ,~zs-,o
Passed by the Common Council of the City of South Bend, Indiana
November 22,
Attest:
Attest:
Presented by me to the Mayor of the City of South Bend, Indiana
November 23, 20 10
JOHN
Approved and signed by me November 2 3, 20 10
City Clerk
President of Common Council
City Clerk
May~vr
20 10
ORDINANCE NO. L ~ ~ ~S- ~~
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, TO CREATE A COVELESKI STADIUM RECOVERY ZONE ECONOMIC
DEVELOPMENT BOND DEBT SERVICE RESERVE FUND (#317)
STATEMENT OF PURPOSE AND INTENT
The City of South Bend Redevelopment Commission is financing certain capital
improvement projects at Stanley Coveleski Regional Stadium 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 bond debt service reserve requirements, the City must have an
estimated sum of Four hundred Eighty Thousand ($480,000) set aside in a separate fund at the
time of closing. To accomplish this, it is in the best interest of the City to establish a new
Coveleski Stadium Recovery Zone Economic Development Bond Debt Service Reserve Fund
(#317), which shall b~ a non-reverting fund. The funding for the debt service reserve amount
will be from the bond proceeds of $4.98 million dollars. The new Fund 317 will earn interest on
cash balances and will be subject to appropriation by the City of South Bend Redevelopment
Commission.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY
OF SOUTH BEND, INDIANA as follows:
SECTION I . A Coveleski Stadium Recovery Zone Economic Development Bond Debt
Service Reserve Fund (#317) is created as the repository for the City's debt service reserve
obligation. This Fund shall be non-reverting and shall be funded and operated in accordance
with all legal and specific bond ordinance requirements.
SECTION II. This ordinance shall be in full force and effect from and after its passage
by the Common Council and approval by the Mayor.
Member, South Bend Common Council
Att st:
ity C rk
Presented by me to the Mayor of the City of South Bend, Indiana on the ~ ~ day of
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A proved and signed by me on the ~3 day of ~~'~"'`"~'`, 2 a' ° ,
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Mayor, pity of th Bend, Indiana
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TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND:
Your Committee of the Whole, to whom was referred:
BILL NO.
71-10 A BILL OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, TO CREATE A COVELESKI
STADIUM RECOVERY ZONE ECONOMIC
DEVELOPMENT BOND DEBT SERVICE RESERVE FUND
(#317)
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
COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND,IN 46601
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.~ pEncE
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
OFFICE OF ADMINISTRATION & FINANCE
GREGG D. ZIENTARA, CITY CONTROLLER
November 3, 2010
Mr. Derek D. Dieter
President of the Common Council of the City of South Bend
4~h Floor, County-City Building
South Bend, IN 46601
PHONE 574-235-9216
FAx 574-235-9928
re: Ordinance of the Common Council Creating Two (2) New Funds in Conjunction with the
Coveleski Stadium Project and the Redevelopment Commission Recovery Zone Bond Issue
Dear Council President Dieter:
The City of South Bend Redevelopment Commission is financing certain capital improvement projects at
Stanley Coveleski Regional Stadium out of bond obligations. Bond covenants and proper accounting
principles require that these bond proceeds be deposited into a separate fund to be used to pay bond
issuance costs, debt service reserves and project expenditures. To accomplish this, it is in the best
interest of the City to establish a new Coveleski Stadium Recovery Zone Economic Development Bond
Construction Fund (#438), which shall tie anon-reverting fund. The funding for this construction fund will
be from the bond proceeds in the amount of $4.98 million dollars. The new Fund 438 will earn interest on
cash balances and will be subject to appropriation by the City of South Bend Redevelopment
Commission.
The City of South Bend Redevelopment Commission is financing certain capital improvement projects at
Stanley Coveleski Regional Stadium 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 bond debt service
reserve requirements, the City must have an estimated sum of Four hundred Eighty Thousand ($480,000)
set aside in a separate fund at the time of closing. To accomplish this, it is in the best interest of the City
to establish a new Coveleski Stadium Recovery Zone Economic Development Bond Debt Service
Reserve Fund (#317), which shall be anon-reverting fund. The funding for the debt service reserve
amount will be from the bond proceeds of $4.98 million dollars. The new Fund 317 will earn interest on
cash balances and will be subject to appropriation by the City of South Bend Redevelopment
Commission.
Controller Gregg Zientara will present this bill to the Common Council at the Council assigned committee
meeting and at-the public hearing. City Administration requests Common Council for a favorable
consideration and passage of this bill.
Respe ti el s bmitted,
Gregg ara
cc: Stephen J. Luecke, Mayor of the City of South Bend,
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