Loading...
HomeMy WebLinkAboutEstabishing Procedures for Transfer Funds Old Barrett Law AccountORDINANCE N0.7411 -84 Passed by the Common Council of the City of South Bend, Indiana December 3, 19 84 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana Approved and signed by December 4, 19 84 Clerk of Common Council City Clerk IRENE K. GAMMON Ig �� BILL NO. - 84 ORDINANCE NO. 7411-9:1 - 84 AN ORDINANCE ESTABLISHING PROCEDURES FOR TRANSFER OF FUNDS FROM THE OLD BARRETT LAW ACCOUNT TO THE SURPLUS BARRETT LAW ACCOUNT STATEMENT OF PURPOSE AND INTENT Within the Barrett Law funds of the City of South Bend, there have existed since the early 1940's certain moneys related to Barrett Law assessments and bonds relating to those assessments. The moneys have been kept separate and are known as the Old Barrett Law Account. Due to considerable litigation and record keeping diffi- culties few disbursements have occurred from the Account until recent weeks. As a result of a call of Old Barrett Law bonds, published in the South Bend Tribune, the Indianapolis Star, and the Wall Street Journal in January and February, 1984, which stated that holders of 0 Barrett Law bonds and coupons should present and surrender them to the Controller's Office until March 31, 1983, all bonds and coupons so presented and surrendered have been honored and all amounts due and owing have been paid to the holders. Funds remain in the Old Barrett Law Account which are no longer needed for the purposes for which they were accumulated. NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, AS FOLLOWS: SECTION I. The Council finds that: A. There exist within the funds of the Old Barrett Law Account moneys which have been on hand for a period of ten years and more, together with interest accumulated thereon; B. Those moneys were collected in a variety of manners, including: 1. As waivered assessments for payments of bonds and coupons; and 2. As moneys from sale of a general obligation judgment bond issue, the judgment for which is satisfied and the bonds for which are retired; and 3. As interest earned on the above funds. C. As a result of a call for presentation and surrender on or before March 31, 1984, of outstanding City of South Bend, Indiana, Improvement Bonds, also known as Old Barrett Law Bonds, together with unredeemed coupons, certain bonds and coupons have been presented to .- .. .- -1 It --- __ .3 --- .3 -___.7 t__ �1_ - r,,+ -.. r--- __r 4:r.r SECTION II. The Council finds that it is in the best interest of the City of South Bend to provide a procedure, through the exercise of its legislative authority under home rule, I.C. 36- 1 -3 -6, for the transfer of funds no longer needed in the Old Barrett Law Account and for which no procedures are prescribed by statute. SECTION III. Any funds remaining in the Old Barrett Law Account for which no bonds or coupons have been presented, or if presented and withdrawn, have not been presented for ten years, and any funds for which no record of any presentation or withdrawal existing within the Barrett Law records and archives, may be transferred by ordinance to the Surplus Barrett Law Account. After such transfer, those funds transferred from the Old Barrett Law Account may be used and transferred in the manner in which any other such funds within the Surplus Barrett Law Account may be used and transferred, according to statutory provisions for the Surplus Barrett Law Account. SECTION IV. A person legally entitled to any money from the Old Barrett Law Account may file a claim for the money with the City Controller, in the same manner in which other claims are filed against the City. Upon the claimant's presentation and surrender of outstanding Old Barrett Law bonds, the Controller shall determine if the claimant is legally entitled to the money and approve or deny the amount due and owing on the bonds and /or coupons. The Controller shall pay the claim out of the general fund of the City without any appropriation being made for the payment. 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. em er of the 011motf Council Michael L. Vance Director, Administration and Finance CITY ®f SOUTH BEND ROGER O. PARENT, Mayor COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601 Mrs. Beverlie Beck, President South Bend Common Council 4th Floor Council Chambers South Bend, Indiana 46601 Dear President Beck: October 31, 1984 2191284.9483 I have filed for first reading of the November 5th Council meeting, three (3) ordinances pertaining to Barrett Law Funds and their ultimate transfer.to the General Fund as was originally budgeted for 1984. The first ordinance lays out the procedure for transferring monies from the Old Barrett Law Account to the Surplus Barrett Law Account of the Barrett Law Fund. As you will recall, these are funds that were left after the City's attempt to call all outstanding Barrett Law Coupons and Bonds. In addition to those funds, there is interest earned over the years and funds left over from the sale of a General Obligation Judgment Bond after the judgment was satisfied. All the aforementioned monies were associated with the outstanding Old Barrett Law Account and balances that had been accumulating since the 1940s. The second ordinance being filed is an ordinance which transfers $421,001.17 from the Old Barrett Law Account to Surplus Barrett Law per the procedures outlined in the previous ordinance. The $421,001.17 is the amount remaining after all obligations on outstanding bonds and coupons which have been presented have been settled. As an extra added precaution, I have taken the liberty of leaving approximately $40,000 in interest which has been earned since May of 1984 in the Old Barrett Law Account to handle any further claims that may come forth. The third ordinance is one actually transferring $211,675.20 from the Surplus Barrett Law Account to the General Fund of the City of South Bend. This previous amount plus $188,324.80 in Mrs. Beverlie Beck October 31, 1984 Page -2- Barrett Law Bonds and Coupons which the City holds make up the $400,000 in revenue that was anticipated in being transferred during 1984. If you will recall, in the preparation for the 1984 Budget on the revenue sheet, there was an item listed as Barrett Transfer $400,000. It is essential that these ordinances be reviewed and acted upon in the sequence that has been established in this letter. In doing so the procedure will be spelled out, the preliminary transfer will be made to Surplus and then the needed monies will be transferred to the General Fund. In reviewing the City's financial picture for 1984 and its cash position as projected for the end of December, it is essential that this revenue source be receipted to the General Fund as was originally planned. If, in fact, we do not follow through in this matter, there will be a shortfall in the General Fund of this $400,000 causing an overall lose of investment. If you have any questions, please feel free to contact me. Sincerely, -,—Yua e ua�� Michael L. Vance City Controller MLV /caw Enclosures /5 Tommuirr Report Mo #lie (common (10undl of t4f Tun of 0ou#4 srnd: Your Committee OF THE WHOLE to whom was referred 127 -84 A BILL ESTABLISHING PROCEDURES FOR TRANSFER OF FUNDS FROM THE OLD BARRETT LAW ACCOUNT TO THE SURPLUS BARRETT LAW ACCOUNT. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE. Joseph T. Serge Chairman FREE PRESS PUBLISHING CO.