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HomeMy WebLinkAboutAuthorizing Tax Anticipation Time Warrants for 1988 r 1 T ORDINANCE No. 7856-88 Passed by the Common Council of the City of South Bend,Indiana March 14,x9 88 Attest: • J City Clerk IRENE K. GAMMON Attest: : .- - _ _•t►—•--1 P',A President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana March 15, ig 88 City Clerk IRENE K. GAMMON Approved and signed by me / 192.g- Mayor � 1 �,tT a Y t ORDINANCE NO. 7g56 "gg' AN ORDINANCE AUTHORIZING TAX ANTICIPATION TIME WARRANTS FOR 1988 STATEMENT OF PURPOSE AND INTENT: An ordinance approving tem- porary tax anticipation borrowing; authorizing the City of South Bend, Indiana (the "City") to make a temporary loan to meet current expenses for the use of the City's General Fund, Park. District Bond Fund and Park Maintenance Fund during the period of January 1, 1988 to June 30, 1988, in anticipation of and not in excess of current taxes levied in the year 1987 and collectable in the year 1988; authorizing the issuance of tax anticipation time warrants to evi- dence such loans; appropriating and pledging the taxes to be received in such Funds to the punctual payment of such tax anticipation time warrants including the interest thereon; and fixing a time when this Ordinance shall take effect. WHEREAS, the Controller has represented and the Common Council now finds that there will be insufficient funds in the General Fund to meet the current expenses of the City payable from such Fund prior to the final June 30, 1988, distribution of taxes levied for such Fund and hereby authorizes the making of a temporary loan to procure the funds necessary, in combination with other available funds, to meet such current expenses for such Fund for such period and to pay the necessary costs in connection with the issuance and sale of tax anticipation time warrants to evidence such temporary loan; and -1- '"4010kREAS, the Common Council now finds that a temporary loan for the General Fund for such purposes should be made and that such tax anticipation time warrants should be issued and sold, subject to the terms and conditions set forth herein and all in accordance with the provisions of Indiana law; and WHEREAS, the levy proposed for collection in the year 1988 is estimated to produce at least $9,800, 000 in the City's General Fund at the June 30, 1988, final settlement and distribution of taxes, which amount will equal or exceed the principal and interest cost of making a temporary loan for the General Fund; and WHEREAS, the Controller has represented and the Common Council now finds that there will be insufficient funds in the Park District Bond Fund to meet the current expenses of the City payable from such Fund prior to the final June 30, 1988, distribution of taxes levied for such Fund and hereby authorizes the making of a temporary loan to procure the funds necessary, in combination with other available funds, to meet such current expenses for such Fund for such period and to pay the necessary costs in connection with the issuance and sale of tax anticipation time warrants to evidence such temporary loan; and WHEREAS, the Common Council now finds that a temporary loan for the Park District Bond Fund for such purposes should be made and that such tax anticipation time warrants should be issued and sold, sub- ject to the terms and conditions set forth herein and all in accor- dance with the provisions of Indiana law; and -2- wIWEREAS, the levy proposed for collection in the year 1988 is estimated to produce at least $696, 069 in the City's Park District Bond Fund at the June 30, 1988, final settlement and distribution of taxes, which amount will equal or exceed the principal and interest cost of making a temporary loan for the Park District Bond Fund; and WHEREAS, the Controller has represented and the Common Council now finds that there will be insufficient funds in the Park Main- tenance Fund to meet the current expenses of the City payable from such Fund prior to the final June 30, 1988, distribution of taxes levied for such Fund and hereby authorizes the making of a temporary loan to procure the funds necessary, in combination with other avail- able funds, to meet such current expenses for such Fund for such period and to pay the necessary costs in connection with the issuance and sale of tax anticipation time warrants to evidence such temporary loan; and WHEREAS, the Common Council now finds that a temporary loan for the Park Maintenance Fund for such purposes should be made and that such tax anticipation time warrants should be issued and sold, sub- ject to the terms and conditions set forth herein and all in accor- dance with the provisions of Indiana law; and WHEREAS, the levy proposed for collection in the year 1988 is estimated to produce at least $1, 629, 000 in the City's Park Main- tenance Fund at the June 30, 1988, final settlement and distribution of taxes, which amount will equal or exceed the principal and in- -3- • t 1 tecst',bot of making a temporary loan for the Park Maintenance Fund; and WHEREAS, a necessity exists for the making of temporary loans evidenced by tax anticipation time warrants for the City's General Fund, the City's Park District Bond Fund and the City's Park Main- tenance Fund, in anticipation of the receipt of current revenues for each such Fund actually levied and in the course of collection for the year 1988; and WHEREAS, the Common Council seeks to authorize the issuance of such tax anticipation time warrants with respect to each such Fund and the sale of such warrants pursuant to the provisions of Indiana Code 36-4-6, subject to and dependent upon the terms and conditions hereinafter set forth. NOW, THEREFORE, BE IT ORDAINED BY THE SOUTH BEND COMMON COUNCIL AS FOLLOWS: Section 1. The City is hereby authorized to make a temporary loan 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 in an aggregate principal amount not to exceed Five Million Two Hundred Thousand Dollars ($5 , 200, 000) , plus accrued interest as stated below, in anticipation of current tax revenues actually levied and in the course of collection for such Fund for the year 1988, which loan shall be evidenced by tax anticipation time warrants of -4- the' City bearing interest at a rate or rates per annum not to exceed a maximum rate of eight percent (8%) , the exact rate or rates of interest to be determined by private sale as permitted by law. Such warrants shall be dated as of the date or dates of delivery of such warrants and the interest accruing on the warrants to the date of maturity shall be added to and included in the face value of the war- rants. The warrants shall mature and be payable on June 30, 1988. Warrants will bear interest at a rate or rates not to exceed eight percent (8%) per annum on any amounts not paid at maturity. Such warrants, including interest and all necessary costs incurred in connection with the issuance and sale of such warrants, shall be payable from the General Fund and there is hereby appropriated and pledged to the payment of such warrants, including interest and all necessary costs incurred in connection with the issuance and sale of such warrants, a sufficient amount of the current revenues to be received in the General Fund from the final June 30, 1988, distribu-. tion of taxes to the General Fund for the punctual payment of the principal of and interest on such warrants evidencing such temporary loan, together with such issuance costs, with the amount of interest on such warrants computed from the date or dates of such warrants to the date of maturity, at the interest rate or rates agreed to by the authorized purchaser or purchasers of such warrants. Section 2 . The City is hereby authorized to make a temporary loan to meet current expenses pursuant to the provisions of Indiana Code 36-4-6 for the use and benefit of the Park District Bond Fund of -5- tYie City in an aggregate principal amount not to exceed Six Hundred Thousand Dollars ($600, 000) , plus accrued interest as stated below, in anticipation of current tax revenues actually levied and in thecourse of collection for such Fund for the year 1988, which loan shall be evidenced by tax anticipation time warrants of the City bearing interest at a rate or rates per annum not to exceed a maximum rate of eight percent (8%) , the exact rate or rates of interest to be determined by private sale as permitted by law. Such warrants shall be dated as of the date or dates of delivery of such warrants and the interest accruing on the warrants to the date of maturity shall be added to and included in the face value of the warrants. The war- rants shall mature and be payable on June 30, 1988. Warrants will bear interest at a rate or rates not to exceed eight percent (8%) per annum on any amounts not paid at maturity. Such warrants, including interest and all necessary costs incurred in connection with the issuance and sale of such warrants, shall be payable from the Park District Bond Fund and there is hereby appropriated and pledged to the payment of such warrants, including, interest and all necessary costs incurred in connection with the issuance and sale of such warrants, a sufficient amount of the current revenues to be received in the Park District Bond Fund from the final June 30, 1988, distribu- tion of taxes to the Park District Bond Fund for the punctual payment of the principal of and interest on such warrants evidencing such temporary loan, together with such issuance costs, with the amount of -6- • interest on such warrants computed from the date or dates. of such warrants to the date of maturity, at the interest rate or rates agreed to by the authorized purchaser or purchasers of such warrants. Section 3 . The City is hereby authorized to make a temporary loan to meet current expenses pursuant to the provisions of Indiana Code 36-4-6 for the use and benefit of the Park Maintenance Fund of the City in an aggregate principal amount not to exceed Five Hundred Eighty Thousand Dollars ($580,000) , plus accrued interest as stated below, in anticipation of current tax revenues actually levied and in the course of collection for such Fund for the year 1988, which loan shall be evidenced by tax anticipation time warrants of the City bearing interest at a rate or rates per annum not to exceed a maximum rate of eight percent (8%) , the exact rate or rates of interest to be determined by private sale as permitted by law. Such warrants shall be dated as of the date or dates of delivery of such warrants and the interest accruing on the warrants to the date of maturity shall be added to and included in the face value of the warrants. The war- rants shall mature and be payable on June 30, 1988. Warrants will bear interest at a rate or rates not to exceed eight percent (8%) per annum on any amounts not paid at maturity. Such warrants, including interest and all necessary costs incurred in connection with the issuance and sale of such warrants, shall be payable from the Park Maintenance Fund and there is hereby appropriated and pledged to the payment of such warrants, including interest and all necessary costs incurred in connection with the issuance and sale of such warrants, a -7- r sufficient amount of the current revenues to be received in the Park Maintenance Fund from the final June 30, 1988, distribution of taxes to the Park Maintenance Fund for the punctual payment of the princi- pal of and interest on such warrants evidencing such temporary loan, together with such issuance costs, with the amount of interest on such warrants computed from the date or dates of such warrants to the date of maturity, at the interest rate or rates agreed to by the authorized purchaser or purchasers of such warrants. Section 4. The tax anticipation time warrants issued hereunder with respect to the General Fund, the tax anticipation time warrants issued hereunder with respect to the Park District Bond Fund, and the tax anticipation time warrants issued hereunder with respect to the Park Maintenance Fund are referred to herein collectively as the "Warrants". All Warrants shall be executed in the name of the City by the original or facsimile signature of the Mayor of the City, countersigned by the City Controller, and the corporate seal of the City or a facsimile thereof shall be affixed thereto or printed thereon and attested by the original or facsimile signature of the City Clerk. All Warrants shall be payable at the office of the St. Joseph County Treasurer, ex-officio Treasurer of the City, as checks or other warrants of the City are payable, upon presentation on or after their maturity date. Section 5. All Warrants shall be issued in substantially the following form (all blanks, including the appropriate Fund, amounts, dates, statutory citations and other information, to be properly com- pleted prior to the execution and delivery thereof) : -8- UNITED STATES OF AMERICA STATE OF INDIANA CITY OF SOUTH BEND No $ CITY OF SOUTH BEND TAX ANTICIPATION TIME WARRANT (City of South Bend, Indiana Fund) FOR VALUE RECEIVED, the City of South Bend, in the State of Indiana, promises to pay to the bearer hereof the sum of Dollars ($ ) on the 30th day of June, 1988, with interest thereon at the rate of (_%) per annum from the date hereof to the date of payment, which interest is payable on the maturity date hereof. This Warrant will bear interest at the rate of (_%) per annum on any amounts not paid at matu- rity. Both principal of and interest on this Warrant are payable in law- ful money of the United States of America at the Office of the St. Joseph County Treasurer, ex-officio Treasurer of the City of South Bend, in South Bend, Indiana, as checks or other warrants are pay- able. This Warrant is one of an issue aggregating Dollars ($ ) and is issued pursuant to and in accordance with Ordinance No. duly adopted by the City of South Bend, Indiana, Common Council on 1988, and in strict confor- mity with IC 36-4-6 and all statutes pertaining or supplemental thereto, in order to provide funds for and to evidence a temporary loan to meet current expenses of the City of South Bend, Indiana Fund. This Warrant is issued in anticipation of and is payable out of taxes levied and in the course of collection of such Fund during the year 1988. It is hereby certified that all acts, conditions, and things to be done precedent to and in the execution, issuance and delivery of this Warrant have been done and performed in regular and due form, as provided by law, and this Warrant is within every limit of indebted- ness prescribed by the constitution and laws of the State of Indiana. Sufficient amounts of revenues from taxation for the City of South Bend, Indiana Fund, from levies now in the process of col- lection for the year 1988, are hereby irrevocably appropriated and pledged to the punctual payment of the principal and interest of this Warrant according to its terms. The consideration for this Warrant is a loan made to the City of South Bend, Indiana, in anticipation of such taxes. IN WITNESS WHEREOF, the City of South Bend, Indiana, has caused this Warrant to be issued and signed in its name by the original or facsimile signature of its duly elected, qualified and acting Mayor, attested by the original or facsimile signature of its duly elected, qualified and acting Clerk, and countersigned by its duly appointed, qualified and acting Controller of said City, and the seal of said -9- City to be hereto affixed or a facsimile thereof to be printed here- on. Dated this day of , 1988. CITY OF SOUTH BEND, INDIANA By: Joseph E. Kernan, Mayor ATTEST: City of South Bend, Indiana Irene Gammon, City Clerk City of South Bend, Indiana COUNTERSIGNED: S. Katherine Humphreys, City Controller, City of South Bend, Indiana Section 6. The City Controller is hereby authorized and directed to have the Warrants prepared and the Mayor, the City Controller and the City Clerk are hereby authorized and directed to execute all such Warrants in the manner and substantially in the form provided in the Ordinance. Section 7. The City Controller, on behalf of the City, is autho- rized to sell the Warrants at a price not less than the par value thereof to a purchaser or purchasers (the "Purchaser") in the denomi- nation of Five Thousand Dollars ($5, 000.00) , or integral multiples thereof, or in such other denominations or integral multiples there- of, as the City Controller may designate, or as a single Warrant for the total amount of the loan to each such Fund evidenced by such -10- Warrants. The Warrants shall be sold to the Purchaser pursuant to the purchase agreement (the "Purchase Agreement") between the City and the Purchaser, hereby authorized to be entered into and executed by the City Controller, on behalf of the City, subsequent to the date of the adoption of this Ordinance in accordance with the terms and conditions of this Ordinance, and with such Purchase Agreement to set forth the definitive terms and conditions for such sale, including the interest rate or rates on the Warrants, which shall not exceed the maximum authorized rate of interest for the Warrants issued pur- suant to this Ordinance. The Warrants sold to the Purchaser shall be accompanied by all documentation required pursuant to the provisions of Indiana law and the Purchase Agreement, including without limita- tion an approving opinion of nationally recognized bond counsel, cer- tification and guarantee of signatures and certification as to no litigation pending, as of the date of delivery of the Warrants to the Purchaser, challenging the validity or issuance of the Warrants. The entry by the City into the Purchase Agreement and the execution of the Purchase Agreement on behalf of the City by the City Controller, in accordance with the Ordinance, are hereby authorized, approved and ratified. Section 8. The proper officers of the City are hereby authorized to deliver the Warrants to the Purchaser thereof upon receipt from such Purchaser of the agreed purchase price, pursuant to the Purchase Agreement. The Warrants of each purchase of each issue will be deli- -11- vered as a single parcel at one time or pursuant to any agreement or understanding with respect to said delivery by and between the City Controller and the Purchaser of the Warrants. Section 9. The City Controller and other appropriate officers of the City are hereby authorized and directed to make such filings and requests, deliver such certifications, execute and deliver such docu- ments and instruments and otherwise take such actions as are neces- sary or appropriate to carry out the terms and conditions of this Ordinance and the actions authorized hereby and thereby, including without limitation publishing notice regarding the making of a loan pursuant to IC 36-4-6-20 as authorized herein. Section 10. All resolutions and ordinances in conflict herewith are, to extent of such conflict, hereby repealed. Section 11. The City hereby covenants that the City and its offi- cers shall not take any action or fail to take any action with res- pect to the proceeds of any of the Warrants or any investment ear- nings thereon which would cause the Warrant or any of the Warrants to be "arbitrage bonds" under the Code, or would otherwise cause the in- terest on the Warrant or any of the Warrants to cease to be exclu- dable from gross income for purposes of Federal income taxation; and the City Controller and all other appropriate officers are hereby authorized and directed to take any and all actions and to make and deliver any and all reports, filing and certifications as may be necessary or appropriate to evidence, establish or ensure such con- tinuing exclusion of the interest on the Warrants. The City shall -12- 1.111 c4 .omply with the arbitrage rebate requirements under Section 148 of the Code to the extent applicable. Section 12. This Ordinance shall be in full force and effect from and after the time it has been passed by the City Common Coun- cil, signed by the President of the City Common Council, approved by the Mayor, and otherwise executed and delivered in accordance with any and all laws pertaining hereto. el Li M= • - .f the Common Council— IZ�st5 .. 3-,y_�� fi.4. �"."sL_Y JIa� :r 4ri!NG 3-/V- 2nd , G I Q r?iFt�t._J PASSE 3-- ,N-F R, ao -13-