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HomeMy WebLinkAboutAmending Ordinance No. 10346-15 Park BondORDINANCE No. 10349 -15 Passed by the Common Council of the City of South Bend, Indiana Attest: March 9 20 15 Presented by me to the Mayor of the City of South Bend, Indiana March 10, 20 15 WZilnAl City Clerk President of Common Council a- City Clerk Approved and signed by me /19i e y 3 i l 20 IS Ordinance No. AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AMENDING ORDINANCE NO. 10346 -15 IN ACCORDANCE WITH SECTION 11 THEREOF AND OTHER MATTERS CONNECTED THEREWITH AND REPEALING ORDINANCES INCONSISTENT HEREWITH WHEREAS, South Bend, Indiana (the "City "), is a governmental unit and political subdivision of the State of Indiana (the "State "), whose legislative and fiscal body is the Common Council (the "Council'); and, WHEREAS, on January 26, 2015, the Council adopted Ordinance No. 10346 -15 (the "Original Ordinance ") authorizing the issuance of the City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 (the "Bonds ") in an amount not to exceed $5,680,000; WHEREAS, following adoption of the Original Ordinance, the City and Crowe Horwath (its Financial Advisor) had conversations with a national rating agency regarding rating on the Bonds, and now the City desires to make certain changes to the Original Ordinance; and, WHEREAS, the Council now finds that all conditions precedent to the adoption of an amendatory ordinance have been complied with in accordance with the provisions of the Act; NOW THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana: SECTION 1. Amendment to Section 7(b)(i) of the Original Ordinance. Section 7(b)(i) of the Original Ordinance shall be amended and restated and shall hereafter read as follows: Bond Principal and Interest Account. As soon as possible upon the monthly receipt of EDIT Revenues by the City, the City shall deposit 1/6 of the interest and 1/6 of the principal due on the EDIT Bonds (as defined in Section 10 hereof) on the next interest and principal payment date into the Bond Principal and Interest Account to be used to pay principal of and interest on the EDIT Bonds when due. SECTION 2. Amendment to Section 10(c) of the Original Ordinance. Section 10(c) of the Original Ordinance shall be amended and restated and shall hereafter read as follows: (c) In the case of a proposed issue of Additional Bonds, the City shall have received a certificate prepared by an independent certified public accountant or an independent financial consultant (the "Certifier "), certifying that the EDIT Revenues to be received by the City (according to the most recent certified distributions for the City reported by the Department of Local Government Finance of the State or similar entity) and combined with other available revenues (as defined below) estimated to be received, is at least equal to 150% of the principal and interest requirements on all outstanding EDIT Bonds, including the proposed issue of Additional Bonds, for each respective year during the term of such outstanding EDIT Bonds. In determining the other available revenues to be received in any future year, the Certifier shall base his calculation on estimates, believed by the Certifier to be reasonable, including without limitation estimates of investment earnings. For purposes of this paragraph, "Other Available Revenues" shall mean, to the extent such amounts have been set aside and designated for such purpose, amounts held in any debt service reserve accounts for outstanding EDIT Bonds, other than the proposed Additional Bonds. SECTION 3. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 4. Original Ordinance Otherwise Unaffected. All other provisions of Original Ordinance No. 10346 -15 not affected by the Amendments set forth in Sections I and 2 of this ordinance shall remain in full force and effect. SECTION 5. Interpretation. Unless the context or law clearly requires otherwise, references herein to statutes or other laws include the same as modified, supplemented or superseded from time to time. SECTION 6. Effectiveness. This Ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. Member, South Bend Common Council ATTEST: John Voorde, City Clerk Presented by me to the Mayor of the City of South Bend, Indiana this day of iftk-evQ–� 2015, at l '�15— M. –� City Clerk Approved by me, Mayor of the City of South Bend, Indiana, this _,�M day of /VlarG h , 2015 �Q/ °M. , at S tst READING2,3 —Ir PUBLIC HEARING 3 A— 1 i 3 rd READING NOT APPROVED REFERRED PASSED € filed - d �s TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 08 -15 A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING ORDINANCE NO. 10346 -15 IN ACCORDANCE WITH SECTION 11 THEREOF AND OTHER MATTERS CONNECTED THEREWITH AND REPEALING ORDINANCES INCONSISTENT HEREWITH Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with a favorable recommendation. This bill was heard by the Community Investment Committee. Karen L. White Chairperson, Committee of the Whole 120ON CouNTrr -CErr Bcm.DING 227 W. JEFFERSON BLVD. SouTH BEND, INDIANA 46601 -1830 QTY OF SOUTH BEND PETE BiTTTIG1EG, MAYOR PHoNE5741235 -9216 FAX 574/235 -9928 DEPARTMENT OF ADMINISTRATION AND FINANCE February 17, 2015 Mr. Tim Scott President City of South Bend Common Council 227 W. Jefferson Boulevard, 4 "' Floor South Bend, Indiana 46601 RE: City of South Bend, Indiana Economic Development Income Tax Bonds of 2015 Dear Mr. Scott: Enclosed you will find an Amendatory Ordinance that amends portions of Bond Ordinance No. 10346 -15 adopted by the Council on January 26, 2015 (the "Original Ordinance "). We are requesting that this Amendatory Ordinance be submitted to the Common Council for first reading at its February 23, 2015 meeting. The Original Ordinance authorized the issuance of Economic Development Revenue Bonds to pay for various park improvements. Following adoption of the Original Ordinance, staff initiated conversations with Standard & Poor's rating agency ( "S &P ") to provide a mating on the Bonds before sale. Based on those discussions with S &P, the City now desires to make certain amendments to the Original Ordinance, specifically and solely to Sections 7(b)(i) and 10(c) of the Original Ordinance per S & P recommendations. For your information, I am also enclosing a copy of the original language of Sections 7(b) (i) and 10(c) of Ordinance 10346 -15 showing the changes that have been made in the new ordinance. This bill will be presented for first reading on February 23, 2015 and second reading, public hearing and third reading on March 9, 2015. I will present the Amendatory Ordinance. Sincerely, \�. TK J H. Murphy City Controller Enclosures ' iicce