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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 20 Attest: f Presented by me to the Mayor of the City of South Bend, Indiana December 29, 20 08 Approved and signed by me ~Q,ti,,,1oc~/ Z~ City Clerk President of Common Council ~..~}~~ 20 0~ City Clerk 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. c ' ~. Member of the mmon Council i'i~~J~~~'~ICD ~~ ~~ PIOT APPROVED ADOPTED ~ Z Z`1 '~B Fil~^I I;~ Cicr~'~ Qifiee DrC 1 c ~~;^~ 4 _,~ 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. p..l !`,.f~ ! .. ~0 f .. . i i ~EC~r f ...,._.._._...........,....Y...., {`~ ~, ~ DIRECTOR HUMAN RESOURCEs Sincerely, ~~ M. Catherine Fanello Controller """ JOHN MURPHY ROBERTALLEN ASSISTANT CONTROLLER DIRECTOR INFORMATION TECHNOLOGY