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HomeMy WebLinkAboutAuthorizing the Issuance & Sale of Bonds for Payment of Judements Aganist the CityORDINANCE No. 7230 -83 Passed by the Common Council of the City of South Bend, Indiana August 8, 19 83 IRENE K. GAMMON Clerk Attest: President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana Au ust 9 19 83 IRENE K. GAMMON Approved and signed by me 9 g 3 I Clerk ORDINANCE NO. 1a. ,311 —J�g 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 PAYMENT OF JUDGMENTS AGAINST THE CITY STATEMENT OF PURPOSE AND INTENT: The Controller of the City of South Bend, Indiana (Controller), has certified that there has been judgments rendered against the City of South Bend, Indiana (City) in the case of Wilbur Smith and Associates v. City of South Bend, Cause No. K -3768, in the St. Josep uperior Court, May 2, in the principal sum of $15,000.00, together with prejudgment interest in the sum of $7,245.92, and the cost of the action; and in the case of Dennis M. Swanson, et al., V. City of South Bend, et al., Cause No. K-4975 in t e t. Joseph Circuit Court, on Decem er 982, in the amount of $112,806.00, together with the cost of the action; together with interest on those two money judgments from the date of each judgment until satisfaction of said judgment at an annual rate of 12 %. The Controller has also certified that the City has no funds available or provided for in the existing budget and tax levy with which to pay those two money judgments entered against it, together with interest on those judgments, and has requested the Common Council to authorize the issuance and sale of bonds of the City in order to procure the funds to pay the judgments rendered against the City. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, as follows: SECTION 1. The City, by and through its Controller, shall proceed to pay t e following money judgments rendered against the City, together with interest on said judgments from the date of the finding of the Court until satisfaction at an annual rate of 12 %, together with the incidental expenses in connection therewith: In the case of Wilbur Smith and Associates v. City of South Bend, Cause No. K -3768, in the St. Joseph Superior Court, jud ment entered May 19, 1982, in the principal sum of Fifteen Thousand Dollars ($15,000.00) together with prejudgment interest in the sum of Seven Thousand Two Hundred Forty -five Dollars and Ninety -two cents ($7,245.92), and the costs of the action. In the case of Dennis M. Swanson, et al., v. City of South Bend, et al., Cause No. -4975, in the St. Joseph—Circuit Court, judgment entered December 8, 1982, in the amount of One Hundred Twelve Thousand Eight Hundred Six Dollars ($112,806.00), together with the cost of the action. SECTION 2. For the purpose of providing funds with which to pay the costs ot 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 One Hundred Fifty -five Thousand Dollars ($155,000.00). 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 198311, in an aggregate principal amount not to exceed One Hundred Fifty -Five Thousand Dollars ($155,000.00), 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 October 1, 1983, shall mature on October 1, 1984, and shall bear 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 3. Said bonds shall be executed in the name of the City of South Bend Indiana, by the facsimile signature of the Mayor of said City, countersigned by the facsimile signature of the City Controller, and attested by the manual signature of the City Clerk, who shall affix the seal of the City to each of said bonds. Said bonds shall, in the hands of bona fide holders, have all of the qualities of negotiable instruments under the laws of the State of Indiana. 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): No. UNITED STATES OF AMERICA State of Indiana County of St. Joseph CITY OF SOUTH BEND, INDIANA JUDGMENT FUNDING BONDS OF 1983 $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 October 1, 1984, and to pay interest thereon from the date hereof until the principal is paid, at the rate of percent (_%) per annum, payable on October1,1984. Both principal and interest of this bond are payable in lawful money of the United States of America, upon presentation and surrender of this bond, at 1st Source Bank of South Bend, in the City of South Bend, Indiana, or at any additional or successor paying agent designated by the City. This bond is one of an authorized issue of thirty -one (31) bonds of the City of South Bend, of like date, denomi- nation, tenor and effect, aggregating One Hundred Fifty -five Thousand Dollars ($155,000.00), numbered consecutively from 1 to 31 inclusive, issued pursuant to I. C. 36- 4 -6 -19 and an ordinance adopted by the Common Council of said City on , 1983, entitled "An Ordinance of the City of South en Indiana, authorizing the issuance and sale of bonds of said City in order to provide funds for payment of judgments against the City ". 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 with- in 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. - 2 - 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 Clerk. CITY OF SOUTH BEND By (facsimile) Mayor Countersigned: By City ontro er (facsimile) Attest: City Clerk SECTION 5. 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-CountX News, newspapers of general circulation published in the City ot South Bend as provided 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 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- 3.5 -1 -3 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- 3.5 -1 -3. SECTION 6. Prior to the sale of said bonds, the City Controller sftaii cause to be published a notice of such sale two (2) times, at least one week apart, with the first publication made at least fifteen (15) days before the date of sale and the second publication made at least three (3) days before the date of the sale, said publication to be in The South Bend Tribune and the Tri-Countz News. Said notice may also be pu is e in The Bond Buyer, a tinancial journal published in the City and State T—Aew York, and in The Indianapolis Commercial, a financial journal published in the City of Indianapolis, Indiana, at the discretion of the City Controller. Said bond sale notice shall state the time and place of sale, the purpose for which the bonds are being issued, the - 3 - total amount thereof, the maximum rate of interest thereon, the time and place of payment, the terms and conditions on which the bonds will be received and the sale made and such other information as the City Controller shall deem necessary. All bids for said bonds shall be sealed and shall be presented to the City Controller at his office, and said Controller shall continue to receive all bids offered until the hour named and the date fixed in the bond sale notice, at which time and place he shall open and consider the bids. Bidders for said bonds shall be required to name the rate of interest which the bonds are to bear, not exceeding the maximum rate hereinbefore fixed, and such interest rate shall be in multiples of one - fourth and one -tenth of 1 percent. The Controller shall award the bonds to the highest responsible and qualified bidder. The highest bidder shall be the one who offers the lowest net interest cost to the City, computing the total interest on the bonds from their date to their maturity and deducting therefrom the premium bid, if any. No bid for less than the par value of said bonds, including accrued interest at the rate named to the date of delivery, shall be considered. The Controller shall have the full right to reject any and all bids. In the event no acceptable bid is received at the time fixed in said notice for the sale of said bonds, the Controller shall be authorized to continue to receive bids from day to day thereafter for a period not to exceed thirty (30) days, without readvertisement, but during said continuation no bid shall be accepted which is lower than the highest bid received at the time fixed for such sale in the bond sale notice. Prior to the delivery of said bonds, the City Controller shall be authorized to obtain a legal opinion as to the validity of said bonds from Borge and Pitt, Bond Counsel of Chicago, Illinois, and to furnish such opinion to the purchaser of said bonds. The cost of said opinion shall be paid out of the proceeds of said bonds. SECTION 7. The City Controller is hereby authorized and directed to have said bonds prepared and the Mayor, City Clerk, and City Controller are hereby authorized and directed to execute said bonds in the manner herein provided. After said bonds have been properly executed, the City Controller shall deliver the same in the manner required by I. C. 36- 4 -6 -19. SECTION 8. The bonds shall be the general obligations of the City tor which its full faith, credit and resources shall be irrevocably pledged, and a direct tax shall be levied on all taxable property in the City without limitation as to rate or amount in order to provide funds to pay principal of and interest on the bonds. If funds on hand from such levy are insufficient to pay principal and interest on the bonds, payments shall be made from current funds of the City, which shall be reimbursed as the taxes provided for herein are collected. SECTION 9. This Ordinance shall be in full force and effect immediately upon its passage and signing by the Mayor. COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA ber of t e Xommon Counc I signed only to provide an opportunity for public discussion Awncil acct :L= oA the issue,._ FILED III CLECTS OFFICE 1st READING i - PUBLIC HEARING �%.- �__�y3 JUL 2 v 1983 2nd READING NOT APPROVED �+ 3 REFERRED Irene Gammon PASSED - 4 - CITY CLERK, SOUTH BEND, IND. CITY ®f SOUTH BEND ROGER O. PARENT, Mayor COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 Joseph E. Kernan p 219/284 -9742 Director, Administration and Finance July 18, 19$3 South Bend Common Council 4th Floor, County -City Building South Bend, Indiana 46601 Dear Members of the Council: The attached bill would authorize the issuance and sale of a Judgment Funding Bond in the amount of $155,000.00 for the purpose of paying two judgments previously rendered against the City. The City has no other funds available to pay these judgments and I am, therefore, requesting your favorable consideration of this bill. Should you have any questions about this bill or the process required to issue these bonds, please feel free to contact City Attorney Richard L. Hill with any questions you may have. Sincerely, o!� oseph E. Kernan City Controller JEK:elc Attachment Ontundurr Irvurt coo #4t (Inutmon Monurd of #kr Tity of Pout# stub: Your Committee OF THE WHOLE to whom was referred 81 -83 A BILL OF THE CITY OF SOUTH BEND, INDIANA, 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. RAY ZIELINSKI Chairman FREW PRESS PUBLISHING CO.