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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 /��- /u'�� 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. 2 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 3 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 n (.bun c i 1 pit ps 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.