HomeMy WebLinkAboutAuthorizing a temporary loan of monies from the Rainy Day Fund #102, the loass recovery fund #227, the County Option Income Tax Fund #404, the Airport TIF fnd #324, and the Health Insurance fund #711 to the general #101, the Parks and Recreation Fund #201RESOLUTION
3933-08
Passed by the Common Council of the City of South Bend, Indiana
December 29, 08
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Attest:
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Presented by me to the Mayor of the City of South Bend, Indiana
December 29, 20 08
Approved and signed by me
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City Clerk
President of Common Council
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RESOLUTION NO. 3 R 3 3 "~~
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, AUTHORIZING A TEMPORARY LOAN OF MONIES FROM THE RAINY
DAY FUND (#102), THE LOSS RECOVERY FUND (#227), THE COUNTY OPTION
INCOME TAX FUND (# 404), THE AIRPORT TIF FUND (# 324), AND THE HEALTH
INSURANCE FUND (#711) TO THE GENERAL FUND.(#101), THE PARKS AND
RECREATION FUND (#201), AND HALL OF FAME BOND FUND (# 313) FOR THE
PURPOSE OF MEETING OPERATIONAL NEEDS OF THE CITY
WHEREAS, the City expected that by December 30, 2008 it would have received property
tax revenues for 2008 levied in 2007; however, it is unlikely the City will receive sufficient
property tax revenues prior to December 30, 2008 to meet the current operating expenses of
various funds of the City; and
WHEREAS, because the City of South Bend has not yet received its 2008 distribution of
property tax revenue, an emergency exists requiring a loan from various funds within the City to
other funds in order to meet payroll and other regular operating expenses of the City; and
WHEREAS, this emergency justifies an extension of the deadline for repayment of the
interfund loans, that is, to June 30, 2009; and
WHEREAS, all Funds from which loans are to be made have sufficient monies on deposit
to make the temporary loans specified in this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA, as follows:
Section I. The aggregate sum of Fourteen Million Nine Hundred Fifty Thousand Dollars
($14,950,000) shall be temporarily borrowed from certain City funds and loaned to other City
funds as follows:
Borrowed From:
Rainy Day Fund (#102) $4,500,000
Loss Recovery Fund (#227) $4,460,000
County Option Income Tax Fund (#404) $2,480,000
Airport TIF Fund (#324) $2,810,000
Health Insurance Fund (#711) $700,000
Total $14,950,000
Loan To:
General Fund (#101) $12,000,000
Parks and Recreation Fund (#201) $2,500,000
Hall of Fame Bond Fund (#313) $450,000
Total $14,950,000
Section II. Because an emergency exists due to the City's non-receipt of its 2008
distribution of property taxes, the above listed loans shall be repaid from the borrowing Fund to
the lending Fund promptly upon and from the City's receipt of tax revenues levied in 2007
payable in 2008, or by June 30, 2009, whichever is earlier, pursuant to I.C. 36-1-8-4 (b).
Section III. This Resolution shall be in full force and effect on December 30, 2008.
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CAUNTY-CTI'Y BUILDING
227 W. JEFFERSON BLVD.
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
PHONE 574/235-9216
Fnx 574/235-9928
TDD 574/ 235-5567
DEPARTMENT OF ADMINISTRATION AND FINANCE
M. CATHERINE FANELLO
CONTROLLER
December 16, 2008
Mr. Timothy Rouse
President, South Bend Common Council
4`" Floor, County-City Building
South Bend, IN 46601
Re: Resolution Loaning Monies From Various Funds to Various Funds to Meet
Ongoing Operating Expenses of the City
Dear President Rouse:
Attached for filing with the Common Council is a Resolution along with two related
Resolutions which address the unusual current financial circumstances of the City. These
circumstances were caused by non-receipt as yet of City tax revenues levied in 2007, payable in
2008.
The captioned Resolution authorizes an aggregate temporary loan of Fourteen Million
Nine Hundred Fifty Thousand Dollars ($14,950,000.00) in monies from the Rainy Day Fund
(No. 102), the newly created Loss Recovery Fund (No. 227), the County Option Income Tax
Fund (No. 404), the Airport TIF Fund (No. 324), and the Health Insurance Fund (#711) to the
General Fund (No. 101), the Parks and Recreation Fund (No. 201), and Hall of Fame Bond Fund
(No. 313). These loans from various Funds are for the purpose of meeting the City's daily and
ongoing expenses pending receipt of 2008 property tax revenues. This will eliminate the need
and expense of issuing Temporary Tax Anticipation Time Warrants to cover the delay in receipt
of tax revenues.
I will present this and the related Resolutions to the Council at its special meeting
scheduled for December 29, 2008. Thank you for considering this Resolution, and special
thanks to the Council for making time to schedule this meeting during the holiday season.
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Sincerely,
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M. Catherine Fanello
Controller
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ASSISTANT CONTROLLER DIRECTOR
INFORMATION TECHNOLOGY