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HomeMy WebLinkAboutAuthorizing Issurance and Sale of Bonds for Payment of Judgements Aganist the CityORDINANCE No. 7288-84 Passed by the Common Council of the City of South Bend, Indiana January 9, 19 84 IRENE K. GAMMON Presented by me to the Mayor of the City of South Bend, Indiana V.-D • -1- Clerk of Common Council IRENE K. GAMMON Approved and signed by me �9 y Clerk ORDINANCE NO. 7,Jgg - ,F2� AN ORDINANCE OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 7230 -83 AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID CITY IN ORDER TO PROVIDE FUNDS FOR PAYMENT OF JUDGMENTS AGAINST THE CITY STATEMENT OF PURPOSE AND INTENT: WHEREAS, the Common Council of the City of South Bend, Indiana, on August 8, 1983 passed Ordinance No. 7230 -83 which authorized the issuance and sale of bonds in order to provide funds for payment of judgments against the City, WHEREAS, said Ordinance provided that the City shall make a loan in the amount of One Hundred Fifty -five Thousand Dollars ($155,000.00) for the purpose of providing funds with which to pay the judgments described in the ordinance and the incidental expenses necessary to be incurred in connection therewith, WHEREAS, the Common Council of the City of South Bend, Indiana, on August 8, 1983 passed Ordinance No. 7231 -83 which appropriated the sum of One Hundred Fifty -five Thousand Dollars ($155,000.00) to be applied to pay the judgments against the City together with the incidental expenses in connection therewith, WHEREAS, a petition for the approval of the issuance of bonds was filed with the State Board of Tax Commissioners on September 7, 1983 and a hearing was held on such petition before the Local Government Tax Control Board on September 23, 1983, WHEREAS, the State Board of Tax Commissioners on September 9, 1983 held a hearing on the matter of the additional appropriation as provided in Ordinance No. 7231 -83, WHEREAS, the State Board of Tax Commissioners approved the issuance of bonds by the City of South Bend in the amount of One Hundred Fifty -five Thousand Dollars ($155,000.00) on November 10, 1983 and approved the additional appropriation in the same amount on November 14, 1983, WHEREAS, the Common Council has determined that the issuance of bonds is still extremely necessary in order to pay the judgments against the City for the reasons stated in Ordinance No. 7230 -83 and hereby determines that the delay in getting approval of such bonds and of the additional appropriation in the same amount will require the increase of the principal amount of bonds which must be issued in order to provide funds for payment of the previous- ly referenced judgments against the City, together with incidental expenses necessary to be incurred in connection therewith, WHEREAS, it is necessary to amend Ordinance No. 7230 -83 authorizing the issuance of bonds of said City to increase the principal amount of such bonds to reflect the delay in their issuance, NOW, THEREFORE, BE IT ORDAINED, BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. Section 2 of Ordinance No. 7230 -83 is amended by additions and deletions and shall read in its entirety as follows: SECTION 2. For the purpose of providing funds with which to pay the costs of said money judgments plus all necessary expenses including the cost of the issuance and sale of the bonds and all incidental expenses necessary to be incurred in connection therewith, the City shall make a loan in an amount not to exceed �0- 13-rs- -(�5- 53-000 -�-00 -) One Hundred Seventy Thousand Dollars ($170,000.00). In order to procure said loan pursuant to I. C. 36- 4 -6 -19, the Common Council hereby determines to issue and sell the negotiable and general obligation bonds of the City, to be designated as "Judgment Funding Bonds of 1984", in an aggregate principal amount not to exceed - 0n-e --_H i nn Flfty=flve- Thousand- Dollars- One Hundred Seventy Thousand Dollars ($170,000.00), which bonds shall be issued in bearer form without coupons, in the denomination of Five Thousand Dollars ($5,000.00), shall be numbered consecutively from 1 upwards, shall be dated as of Oeteber- -1; -1 -9$3; March 1, 1984, shall mature on Oeteber -1; -1984; March 1, 1985, and shall ear interest at a rate not exceeding twelve percent (12%) per annum, the exact rate or rates to be determined by bidding, which interest shall be payable at maturity. Both bonds and interest shall be payable at the 1st Source Bank, in the City of South Bend, Indiana, or at any additional or successor paying agent designated by the City. SECTION II. Section 4 of Ordinance No. 7230 -83 is amended by additions and deletions and shall read in its entirety as follows: SECTION 4. The form and tenor of the bonds shall be substantially as follows (all blanks to be properly completed prior to the printing of the bonds): UNITED STATES OF AMERICA State of Indiana County of St. Joseph No. CITY OF SOUTH BEND, INDIANA JUDGMENT - FUNDING- B9NDS -9F -4983 JUDGMENT FUNDING BONDS OF 1984 $5,000.00 The City of South Bend, a municipal corporation of the State of Indiana, located in St. Joseph County, for value received, hereby acknowledges itself indebted and promises to pay to the bearer hereof the principal amount of FIVE THOUSAND DOLLARS on 8etober -1; -1984; March 1, 1985, and to pay interest thereon from the date hereof until the principal is paid, at the rate of percent ( %) per annum, payable on Geteber -1 -1984 - Marc , 1985. Both principal and interest of this bond are payable in lawful money of the United States of America, upon presentation and sur- render of these bonds, at 1st Source Bank of South Bend, in the City of South Bend, Indiana, or at any additional or successor paying agent designed by the City. This bond is one of an authorized issue ofk1�y- o�te -F3�1} thirty -four (34) bonds of the City of South Bend, of like date, denomination, tenor and effect, aggregating Ame- Hundred -Fifty -five £l�et3sa�d- Deltas- F$155;A8A:AA }; One Hundred Seventy Thousand Dollars ($170,000.00), numbered consecutively from 1 to 81 34 in- clusive, issue pursuant to I. C. 36- 4 -6 -19 and an ordinance adopted by the Common Council of said City on August 8, 1983, entitled "An Ordinance of the City of South Bend, Indiana, authorizing the issuance and sale of bonds of said City in order to provide funds for - 2 - payment of judgments against the City" as amended pursuant to an ordinance adopted by the Common Council o. said City on 1984. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the execution, issuance and delivery of this bond have been done and performed in regular and due form as provided by law; that this bond and said total issue of bonds is within every limit of indebtedness prescribed by the Constitution and laws of the State of Indiana, and that the full faith and credit of the City, together with all of its taxable property, both real and personal, are hereby irrevocably pledged to the punctual payment of the principal and interest of this bond according to its terms. IN WITNESS WHEREOF, the City of South Bend, Indiana by ordinance of its Common Council, has caused this bond to be executed in its corporate name by the facsimile signature of its Mayor, countersigned by the facsimile signature of its City Controller, its corporate seal to be hereunto affixed and attested by the manual signature of its City Controller, its corporate seal to be hereunto affixed and attested by the manual signature of its City Clerk. CITY OF SOUTH BEND BY (facsimile) Mayor COUNTERSIGNED: BY (facsimile) City Controller ATTEST: City Clerk SECTION III. As soon as can be done after the passage of this ordinance, the City Clerk shall give notice of the determination to issue bonds. Said notice shall be posted in three (3) public places in the City and shall be published once each week for two (2) weeks in The South Bend Tribune and the Tri-County News, newspapers of general circulation pu is ed in the City ot South Bend as pro- vided by I. C. 6- 1.1 -20 -5. No further action towards the issuance of said bonds may be taken by the City prior to the expiration of the period within which taxpayers affected by the proposed issuance of said bonds may file objecting petitions to the issuance of said bonds pursuant to I. C. 6- 1.1 -20 -5. In the event an objecting petition or petitions are filed by taxpayers under the provisions of I.C. 6- 1.1 -20 -5, then no further steps towards the issuance of said bonds shall be taken unless and until the State Board of Tax Commissioners shall issue its Order pursuant to I. C. 6- 1.1 -20 -6 approving the - 3 - issuance of said bonds. In the event it shall be determined by the State Board of Tax Commissioners, or otherwise, that the whole amount of the bonds herein authorized shall not be issued, then the City Controller shall be authorized to advertise and sell a lesser amount of bonds. The Controller shall also take such steps as may be necessary to obtain the approval of the incurring of the indebtedness and the interest rate thereon by the State Board of Tax Commissioners pursuant to I. C. 6 -1.1- 18.5 -8 and I. C. 6- 1.1 -20 -7 respectively. The Controller additionally shall take no further action towards the issuance of said bonds until the State Board of Tax Commissioners shall issue its Order approving the issuance of said bonds pursuant to the provisions of I. C. 6 -1.1- 18.5 -8. SECTION IV. This ordinance shall be in full force and effect immediately upon its passage and signing by the Mayor. 5-43 PASSaD /— 9 -,OP3 )I-) - 4 - y er o n L;ounc FILLED ID CLE 'S OFFICE NOV 3 0 1983 Irene Gammon CITY CLERK, SOUTH BEND, IND. Joseph E. Kernan Director, Administration and Finance CITY ®f SOUTH BEND ROGER O. PARENT, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 November 30, 1983 Members of Common Council 4th Floor County -City Bldg. South Bend, Indiana 46601 Dear Members of the Council: 219/284 -9742 The attached bill would authorize the issuance and sale of Judgment Funding Bonds in the amount of $170,000 for the purpose of paying two judgments previously rendered against the City. Earlier this year the Council passed a similar ordinance in the amount of $155,000 to pay these same judgments. But the delay on final approval by the State Board of Tax Com- missioners negatively affected the marketability of the bonds because they were dated October 1, 1983. Post - judgment interest has also continued to accrue, and the $170,000 is now required to meet the City's obligations. If you have any questions about this bill or the process to date, please contact me or City Attorney Richard L. Hill. Thank you very much. Sincerely, Cels'eph E. Kernan City Controller JEK /caw Tontutturr I rvur# (To tot Tommon (founril of t4t Ttly of Doran Nrnd: Your Committee OF THE WHOLE to whom was referred 139 -83 A BILL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 7230 -83 AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID CITY IN ORDER TO PROVIDE FUNDS FOR PAYMENT OF JUDGMENTS AGAINST THE CITY. 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.