HomeMy WebLinkAboutAuthorizing the Issurance and Sale of Bonds Various PurposesORDINANCE NO. 6465 -81
Passed by the Common Council of the City of South Bend, Indiana
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IRENE K. GAMMON
City Clerk
of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
IRENE K. GAMMON
Approved and signed by me a G �9 8/
Clerk
ORDINANCE NO. (, Q ( ' ^ S' j
AN ORDINANCE OF THE CITY OF SOUTH BEND,
INDIANA, AMENDING ORDINANCE NO. 6881 -81
AUTHORIZING THE ISSUANCE AND SALE OF
BONDS OF SAID CITY IN ORDER TO PROVIDE
FUNDS FOR VARIOUS PURPOSES
WHEREAS, the Common Council of the City of South Bend,
Indiana, on January 12, 1981 passed Ordinance No. 6881 -81 which
authorized the issuance and sale of bonds in order to provide
funds for various purposes,
WHEREAS, said Ordinance provided that the City shall make a
loan in the amount of Five Million Nine Hundred Fifteen Thousand
Dollars ($5,915,000.00) for the purpose of providing funds with
which to pay the cost of the projects included 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 April 13, 1981, passed Ordinance No. 5908 -81 which
appropriated the sum of Five Million Nine Hundred Fifteen
Thousand Dollars ($5,915,000.00) to be applied on the cost of
various purchases, construction, remodeling and public
improvements by 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
April 6, 1981 and a hearing was had on said petition before the
Local Government Tax Control Board on April 16, 1981,
WHEREAS, the State Board of Tax Commissioners on April 20,
1981, held a hearing on the matter of the additional
appropriation as provided for in Ordinance No. 5908 -81 adopted
by the Common Council of the City of South Bend on April 13,
1981,
WHEREAS, the State Board of Tax Commissioners issued an
Order on August 5, 1981, approving the issuance of bonds by the
City of South Bend in the amount of Three Million Two Hundred
Fifteen Thousand Five Hundred Dollars ($3,215,500.00),
WHEREAS, the State Board of Tax Commissioners on August 6,
1981, issued an Order approving an additional appropriation in
the amount of Three Million Two Hundred Fifteen Thousand Five
Hundred Dollars ($3,215,500.00),
WHEREAS, it is necessary to amend Ordinance No. 6881 -81
authorizing the issuance and sale of bonds of said City in
accord with the orders of the State Board of Tax Commissioners,
NOW, THEREFORE, BE IT ORDAINED, by the Common Council of
South Bend, Indiana as follows:
SECTION I: Section 2 of Ordinance No. 6881 -81 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 cost of said projects and the incidental expenses
necessary to be incurred in connection therewith, the City shall
make a loan in the amount of Five - Million -N}ne- Hundred - Fifteen
Tke�sand- De�las- {5,915,999,99 Three Million Two Hundred and
Fifteen Thousand Dollars ($3,215,000.00). In order to procure
said loan, the City Controller is hereby authorized and directed
to have prepared and to issue and sell the negotiable general
obligation bonds of the City, to be designated as "Municipal
Bonds of 1981 ", in the aggregate principal amount of Five
M111ien- Nlne- Hnnd�ed -F} €teen- The�eand- De11a�s ($5,915;898 :99)
Three Million Two Hundred and Fifteen Thousand Dollars
3,215,000.00 , which bonds shall be issued in the denomination
of Five Thousand Dollars ($5,000.00), shall be numbered con-
secutively from one (1) upwards, shall be dated as of the first
day of the month in which said bonds are sold, and shall bear
interest at a rate not exceeding ten - per -eent (19 %) fifteen per
cent (15 %) per annum (the exact rate to be determined by
b1ddin_g7_, which interest shall be payable on July 15, 1982, and
semi - annually thereafter on January 15 and July 15 each year and
shall be evidenced by coupons attached to said bonds. Both
bonds and interest coupons shall be payable at the First Bank
and Trust Company of South Bend, in the City of South Bend,
Indiana. The bonds shall mature serially semi - annually in the
amounts as follows:
DATE AMOUNT
July 15,
1982
$2657909709
January
15, 1983
$6997099709
July 15,
1983
$6507999799
January
15, 1984
$659,-806:99
July 15,
1984
$7667606786
January
15, 1985
$766,-868:66
July 15,
1985
$750,-666766
January
15, 1986
$7597000700
July 15,
1986
$856, - 666. -68
$145,000.00
$325,000.00
$350,000.00
$350,000.00
$380,000.00
$380,000.00
$405,000.00
$405,000.00
$475,000.00
Said bonds shall be executed in the name of the City of
South Bend, Indiana by the Mayor, countersigned by the City
Controller, and attested by the City Clerk who shall affix the
seal of the City to each of said bonds. The interest coupons
attached to said bonds shall be executed with the facsimile
signature of the City Controller and said official, by the
countersigning of said bonds, shall adopt as and for his own
proper signature his facsimile signature appearing on said
coupons. 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.
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SECTION II: Section 3 of Ordinance No. 6881 -81 is amended
by additions and deletions and shall read in its entirety as
follows:
SECTION 3. The form and tenor of said bonds and the
interest coupons to be attached thereto shall be substantially
as follows (all blanks to be property completed prior to the
printing of the bonds);
No.
UNITED STATES OF AMERICA
State of Indiana County of St. Joseph
$5,000.00
CITY OF SOUTH BEND
MUNICIPAL BONDS OF 1981
The City of South Bend, in St. Joseph County,
Indiana, for value received, hereby acknowledges itself
indebted and promises to pay to the bearer hereof the
principal amount of
FIVE THOUSAND DOLLARS
on , 19 , and to pay interest
thereon from the date hereof until the principal is
paid, at the rate of per cent ( %) per
annum, payable on July 15, 1982, and semi - annually
thereafter on January 15 and July 15 in each year, upon
presentation and surrender of the annexed coupons as
they severally become due.
Both principal and interest of this bond are
payable in lawful money of the United States of America,
at the option of the holder, at the First Bank and Trust
Company of South Bend, in the City of South Bend,
Indiana.
This bond is one of an authorized issue of one
heusa�d -ewe- hundred- and - eighty =three (17183) six
hundred and forty -three (643) bonds of the City of South
Bend, of like date, denomination, tenor and effect,
except as to dates of maturity, aggregating Five_XillioR
Nilae- Huiadred- Fifteen - Thousand- Dol.l.ars
Three Million Two Hundred and Fifteen Thousand Dollars
3,215,000.00 numbered consecutively from 1 to 1,183
643 inclusive, issued pursuant to an ordinance adopted by
the Common Council of said City on
1981, 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 various
purposes and amended pursuant to an ordinance adopted
by the Common Council of said City on ,
1981.
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 pre-
scribed by the constitution and laws of the State
of Indiana, and that the full faith and credit of the
City of South Bend, together with all of its taxable
property, both real and personal, are hereby
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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, in
St. Joseph County, Indiana, by ordinance of its Common
Council, has caused this bond to be executed in its
corporate name by the facsimile signature of the
Mayor, countersigned by the facsimile signature of
its City Controller, its corporate seal to be here-
unto affixed and attested by the manual signature
of its City Clerk, and the interest coupons hereto
attached to be executed by placing thereon the
facsimile signatures of said Mayor and City Controller
as of the day of , 1981.
CITY
W4
SOUTH BEND
Countersigned:
acsimile)
B facsimile)
City Contro er
Attest:
ity 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 published
once each week for two (2) weeks in the South Bend Tribune and
the Tri- County News, newspapers of general circulation published
in the City of South Bend, and said notice shall also be posted
in three (3) public places in the City, as provided by I.C.
6- 1.1 -20 -5. Said bonds shall not be advertised for sale prior
to the expiration of the period during which taxpayers may file
objecting petitions to the issuance of said bonds. 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
approving the issuance of said bonds.
SECTION IV: This ordinance shall be in full force
and effect immediately upon its passage and signing by the
Mayor.
r o
1st READING CP - / `-f - SS (
PUBLIC [-FEARING Ct _ Q g
2nd REA[3NNG _ c _�
NOT APPROVED
REFERRED
PASSED
4
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11 E 10
Irene Gammon
CITY CLERK, SOUTH BEND, IND.
Joseph E. Kernan
Director, Administration and
Finance
CITY of SOUTH BEND
ROGER O. PARENT, Mayor
COUNTY -CITY BUILDING SOUTH .BEND, INDIANA 46601
September 8, 1981
South Bend Common Council
4th Floor County -City Building
South Bend, Indiana 46601
Dear Members of the Council:
219/284 -9742
This bill would amend Ordinance 6881 -81 which authorized the
issuance and sale of the general obligation bond.
The amendments reflect the decrease in the bond to $3,215,000.00,
and the attendant decreases in payment amounts over the proposed
schedule. The maximum allowable interest rate has been amended
to 15% because of the changes in the bond market since original
passage of the ordinance, but the actual interest rate will be
determined by competitive bid.
We are now working on preparing information for our bond rating
hearing, and with successful passage of these amendments we hope
to be in a position to be able to sell the bonds toward the end
of October.
If there are questions or further information is needed, please
contact me or Rich Hill.
Your favorable consideration is requested.
Sincerely,
Joseph E. Kernan
City Controller
JEK :des
Attachment
Torn ittrr Heir#
010 #lit Gammon (IIonnrtl of i4r Tug of oor# Bra:
Your Committee OF THE WHOLE
to whom was referred
89 -81 A BILL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE
NO. 6881 -81 AUTHORIZING THE ISSUANCE AND SALE OF BONDS OF SAID
CITY IN ORDER TO PROVIDE FUNDS FOR VARIOUS PURPOSES.
Respectfully report that they have examined the matter and that in their opinion THIS BILL SHOULD BE REC-
OMMENDED TO THE COUNCIL AS FAVORABLE.
JOHN VOORDE
Chairman
FREE PRESS PUBLISHING CO.