HomeMy WebLinkAbout9481-03 Appropriation $260,000 from Water Works General Fund (#620) and transfer of said Funds to the Water Leak Insurance Fund (#644)ORDINANCE No.
9481-03
Passed by the Common Council of the Ciry of South Bend, Indiana
December 8, 03
20
Attest:
Attest:
Presented by me to the Mayor of the City of Soutl: Bend, Indiana
December 9, 03
20
Ciry Clerk
President of Common Council
Ciry Clerk
Approved attd signed by me n P r_ Pmh P r ~ ~ 20 Q~
Mayor
ORDINANCE NO. ~ ~ 0'- ~-~
AN ORDINANCE FOR SPECIAL APPROPRIATION OF $260,000 FROM WATER
WORKS GENERAL FUND (#620) AND TRANSFER OF SAID FUNDS TO WATER
LEAK INSURANCE FUND (#644) TO COVER UNANTICIPATED SHORTFALL AND
LOAN REPAYMENT
STATEMENT OF PURPOSE AND INTENT
Pursuant to South Bend Municipal Code Chapter 17, Article 6, Section 17-49 et seq. the City
of South Bend requires each City water service user to pay the sum of one dollar and fifty cents
($1.50) per month as insurance for the cost of repairing andJor replacing water lines from the main
line to the user's building.
Although the customer insurance fee was expected to cover the cost of repairing/replacing
water lines from the main line to a water user's building, the age and deterioration of the City's water
pipe system has resulted in greater than expected repair/replacement needs and resulting costs which
have exceeded the insurance receipts. The shortfall in 2003 is $60,000 and the shortfall in 2002 was
$200,000 which was borrowed rather than appropriated from the Water Works General Fund (#620)
pursuant to Resolution #3142-02 and which must be repaid by December 31, 2003.
The Water Works General Fund (#620) has funds at year end which it can appropriate and
transfer to the Water Works Leak Insurance Fund to cover the 2003 water line repair/replacement
cost shortfall and which will allow the Leak Insurance Fund to repay the loan authorized by
Resolution #3142-02.
Section I. The sum of $260,000 shall be appropriated and transferred to the Water Leak
Insurance Fund #644 to cover the $60,000 shortfall between insurance revenue and costs of water
line repair/replacement, and to enable the Water Leak Insurance Fund (#644) to repay the $200,000
loan it obtained from the Water Works General Fund pursuant to Resolution #3142-02 payable
December 31, 2003.
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.
1 st READING <~'I-~w3
PUBLIC HEARING ~ Z~8''03
3 rd READING ~Z.-~- 03
NOT APPROVED
REFERRED
PASSED ~ L ~- t~
Gf ,(~~
Member, South Bend Commo Council
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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.
99-03 A BILL FOR SPECIAL APPROPRIATION OF $260,000 FROM
WATER WORKS GENERAL FUND (#620) AND TRANSFER OF
SAID FUNDS TO WATER LEAK INSURANCE FUND (#644) TO
COVER UNANTICIPATED SHORTFALL AND LOAN REPAYMENT
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.
Karl King
Chairman
1316 COUNTY^CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
DEPARTMENT OF PUBLIC WORKS
GARY A. GILOT, P.E.
DIRECTOR OF PUBLIC WORKS
November 19, 2003
Ms. Karen White, President
South Bend Common Council
227 W. Jefferson Street
South Bend, Indiana 46601
Dear Common Council:
PxoNE574/235-9251
FAx 574/235-9171
TDD 574/ 235-5567
Attached for consideration by the Common Council is an ordinance for a special appropriation of
$260,000 from the Water Works General Fund (#620) for transfer to the Water Works Leaks
Insurance Fund (#644).
Unfortunately, despite reasoned projections, the cost of repair/replacement of water service lines
within the City has exceeded the water leak insurance receipts of $1.50 per month per water
utility customer. The unanticipated repair/replacement frequency is probably due to age and
deterioration of the water service line system within the city.
In 2003, the Leak Insurance Fund shortfall is $60,000. This Fund is also required to repay by
December 31, 2003, a loan of $200,000 to the Water Works General Fund and does not have the
ability to do so. The attached ordinance will appropriate $260,000 from the Water Works
General Fund to cover the shortfall and repay the debt. The Water Works General Fund has
sufficient money to fund the requested appropriation.
Thank you for your consideration of this matter.
Sincerely,
cati
Director
~~~
ENGINEERING ENVIRONMENTAL SERVICES CENTRAL SERVICES STREETS WATER WORKS
CARL LIT-IRELL, P.E. JOHN J. DILLON, PH.D. MATT CHLEBOWSKI SAM HENSLEY JOHN F STANCATI
574/235-9251 574!277-8515 574/235-9316 574/235-9244 574/235-9322
FAx 574/235-9171 FAx 574/277-8980 FAx 574/235-9007 FAx 574/235-9272 FAx 574/235-9728