HomeMy WebLinkAboutLoaning Monies from various funds to other funds to pay off previously issued tax anticipation time warrantsRESOLUTION
3932-08
Passed by the Common Council of the City of South Bend, Indiana
December 29,
Attest:
City Clerk
President of Common Council
Presented by me to the Mayor of the City of South Bend, Indiana
December 29, 20 08
Approved and signed by me ~~«~'"~ L~ 20 ~~ .
City Clerk
08
20
~Y~'
RESOLUTION NO. ~~ ? 2' - ~~
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA,
LOANING MONIES FROM VARIOUS FUNDS TO OTHER FUNDS TO PAY OFF
PREVIOUSLY ISSUED TAX ANTICIPATION TIME WARRANTS
WHEREAS, on June 9, 2008 due to property tax reassessment and anticipated delays in the timing
of receipt of tax revenues by the City of South Bend, the Common Council enacted Ordinance No. 9846-
08 authorizing the Mayor and/or the Controller to make temporary loans to meet certain current operating
expenses out of various funds of the City in anticipation of and not in excess of current taxes levied in the
year 2007 and collectible in the year 2008. Ordinance No. 9846-08 further authorized the issuance of
temporary loan Tax Anticipation Time Warrants to evidence such loans and the sale of such warrants; and
WHEREAS, the City expected that by December 30, 2008 it would have received property tax
revenues; however, it is unlikely the City will receive sufficient property tax revenues prior to December
30, 2008 to (i) pay off the Tax Anticipation Time Warrants issued pursuant to Ordinance 9846-08 which
tax warrants mature and are payable in full with interest on December 30, 2008, and (ii) meet current
operating expenses of various funds of the City. This Ordinance authorizes the loan of monies from
various Funds within the City to pay off the Tax Anticipation Time Warrants issued pursuant to
Ordinance 9846-08; and
WHEREAS, the loan of funds under the City's present financial circumstances is an emergency
caused by the delay in receiving tax revenues levied in 2007 and payable in 2008 which have yet to be
paid to the City. Without such interfund loans, the City cannot meet its ongoing payroll and other
operating expense without incurring substantially greater debt. Therefore, due to emergency, the
repayment of temporarily transferred funds must be delayed as authorized by Ind. Code 36-1-8-4; 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:-,
Section I. The aggregate sum of Eight Million Eight Hundred Fifty One Thousand Dollars
($8,851,000) shall be temporarily borrowed from certain City funds and loaned to other City funds as
follows:
Borrowed From:
Health Insurance Fund (#711) $5,000,000
Liability Self Insurance Fund (#226) $2,651,000
Rainy Day Fund (#102) $1,200,000
Total $8,851,000
Loaned To:
General Fund (#101) $6,103,000
Parks and Recreation Fund (#201) $2,035,000
Hall of Fame Bond Fund (#313) $ 713,000
Total $8,851,000
Section II. An emergency exists which necessitates the borrowing of monies from Funds 711, 226,
and 102 and the loaning of those monies to Funds 101, 201, and 313, so that, pursuant to I.C. 36-1-8-4(b),
repayment of such loans by the borrowing Fund of these monies is extended until June 30, 2009.
Section III. This Resolution shall be in full force and effect as of December 30, 2008.
c
Member of the So h Bend Common Council
S:Li ~ ~ Z'~.'C~O
_....'? L Z-L~1-~d~
Filed !n Cler~C's Ofi#ice
DEC 1 6 2008
JOH~aV00flDE
CITYCLERiC, S0. BEND, IIV.
C.OUNTY-CITY BUILDING
227 W JEFFERSON BLVD.
SOUTH BEND, INDIANA 46601-1830
CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR
PIIONE574/235-9216
Fax 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`h Floor, County-City Building
South Bend, IN 46601
Re: Resolution Loaning Monies from Various Funds to Other Funds to Pay
Off Temporary Tax Anticipation Time Warrants
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 property tax revenues levied in 2007,
payable in 2008.
The captioned Resolution temporarily loans Five Million Dollars ($5,000,000.00) from
the Health Insurance Fund (No. 711), Two Million Six Hundred Eighty-One Dollars
($2,b81,000.00) from the Liability Self Insurance Fund (No. 226) and One Million Two Hundred
Thousand Dollars ($1,200,000.00) from the Rainy Day Fund (No. 102) to repay the Tax
Anticipation Time Warrants due December 30, 2008 under Ordinance 9846-08 from General
Fund (No. 101), Parks and Recreation Fund (No. 201) and Hall of Fame Bond Fund (No. 313).
These temporary loans in the aggregate total Eight Million Eight Hundred Fifty-One Thousand
Dollars ($8,851,000).
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.
~i1~~ lti G1~CR'S (~fifiCe
DEC 1 6 2008
,iQ;1N YaAR:3E
Cti'Y GL%~tK, 5A. BEhD, fN.
Sincerely,
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M. Catherine Fanello
Controller
JANICE L. HALL JOHN MuRrHY RosERTAuEN
DIRECTOR 1~SSISTANr CONTROLLER DIRECTOR
HUMAN RESOURCES INFORIvIa.TIONTECxNOLOGY