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HomeMy WebLinkAboutAppropriating Intrest Earned from the Purchase of Certificates $321,000.00ORDINANCE No 1219-83 Passed by the Common Council of the City of South Bend, Indiana_ November 14 q".._ (<- 19 83 City Clerk IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana November 15 /V___ ident of Common Council �9 83 City Clerk IRENE K. GAMMON Approved and signed by me f ����t't / r ,3 3 1m 9 ORDINANCE NO. 74G AN ORDINANCE APPROPRIATING INTEREST EARNED FROM THE PURCHASE OF CERTIFICATES OF DEPOSIT OUT OF THE PROCEEDS OF THE 1982 PARK DISTRICT BONDS TO THE PARK DISTRICT BOND CONSTRUCTION FUND 50 IN THE AMOUNT OF $321,000.00. STATEMENT OF PURPOSE AND INTENT: The Board of Park Commissioners of the City of South Bend sold bonds in the amount of $3,500,000.00, which were designated as the Park District Bonds of 1982, to have sufficient funds to acquire land and construct the East Race Project, the bridge underpass at the west end of Jefferson Street Bridge and the lighting and construction of walkways at Howard Park. The proceeds from the sale of the 1982 bonds were invested in certificates of deposit before the start of construction and during the construction period, and interest in the amount of $321,000.00 has been earned from those investments. Additional funds are required to complete the East Race Project and associated works due to higher than anticipated bids that were received for the Raceway work. NOW, THEREFORE, BE IT ORDAINED by the South Bend Common Council, as follows: SECTION I. $321,000.00 is appropriated out of the proceeds of the interest earned from the invested funds from sale of Park District Bonds of 1982 to the Park District Bond Construction Fund 50. SECTION II. The appropriation of funds set forth above is required for the proper and efficient operation and function of the Department of Public Parks of South Bend and an extraordinary emergency is declared to exist concerning the foregoing appropria- tion. SECTION III. This ordinance shall be in full force and effect from and after its passage by the Common Council, its approval by the Mayor and the fulfillment of approval by the State Board of Tax Commissioners. 4 � MW U Department of Public Parks Administration Building St. Louis Boulevard at Wayne Street South Bend, Indiana 46617 PHONE: (219) 284 -9401 October 18, 1983 Ms. Beverlie Beck, President South Bend Common Council County -City Building 227 West Jefferson Boulevard South Bend, Indiana Dear Ms. Beck: The Department of Public Parks is requesting the Common Council to give favorable action on an ordinance appropriating $321,000.00 from interest earned on Certificate of Deposits from the proceeds of the 1982 Park District Bond Issue ($3,500,000.00). Because of higher than anticipated bids were received for the Race Way Project, cost of land and the Howard Park Project items, funds received from the sale of bonds will not cover the costs of the river bank projects. The park staff and controller's office worked out a cash flow plan and invested idle funds in certificates of deposit thus earning $321,000.00. The earned interest will be used for change orders, adding items back into the contract that had to be deleted from the original bids and to pay for the hydroelectric generator. The City received a $500,000.00 grant to install the hydro unit. The Park Board feels the approval of this ordinance is very important for the completion of the East Race Way and urges the Common Council to give its favorable approval. JRS:kb Very truly yours, DEP NT OF PUB 4C PARKS F es R. Seitz, erintendent TarAndUrr Irpar# Ma #4e enunnon Tounra of Or (Zug of OM04 stud: Your Committee OF THE WHOLE to whom was referred 121 -83 A BILL APPROPRIATING INTEREST EARNED FROM THE PURCHASE OF CERTIFICATES OF DEPOSIT OUT OF THE PROCEEDS OF THE 1982 PARK DISTRICT BOND CONSTRUCTION FUND 50 IN THE AMOUNT OF $321,000.00. Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE RECOMMENDED TO THE COUNCIL FAVORABLE. RAYMOND ZIELINSKI Chairman FREE PRESS PUBLISHING CO.