09-27-04 Council Meeting Minutes

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REGULAR MEETING SEPTEMBER 27,2004 THE INTERESTS OF THE OWNERS OF SAID BONDS, AND OTHER MATTERS CONNECTED THEREWITH Councilmember Coleman, Vice-Chairperson,Utilities Committee, reported that this committee held a Public Hearing on this bill this afternoon and due to a lack of a quorum, sends this bill to the Council with no recommendation. Rick 011ett, City Controller, 14th Floor, County-City Building, South Bend, Indiana, made the presentation for this bill. Mr. 011ett advised that the Council has previously authorized the issuance of bonds, which remain outstanding, for capital improvements to the South Bend Sewage Works. Specifically, Indiana Sewage Works Revenue Bonds were issued in the original amount of$24,095,000 dated December 30, 1998 (the 1998 Bonds)pursuant to Ordinance 8919- 98. South Bend Sewage Works Refunding Revenue Bonds of 2001 (the 2001 Bonds) were issued in the original amount of$5,240,000 per Ordinance 9270-01. Most recently, Indiana Sewage Works Revenue Bonds have been issued in 2004 in the original amount of$11,425,000 per Ordinance 9523-04 (the 2004 Bonds). All outstanding bonds and their corresponding Bond Ordinances require the establishment of a Debt Service Reserve Account in the Sewage Works Sinking Fund and the funding of a Debt Service Reserve Requirement in order to provide payment in the event such monies in the Bond and Interest Account are insufficient to pay the principal and interest on the Outstanding Bonds when due. As an alternative to cash funding of the Debt Service Reserve Account, a Debt Service Reserve Account insurance policy can be procured to pay the principal and interest on the Outstanding Bonds when due. Both the 2001 Bond Ordinance and the 2004 Bond Ordinance include a provision authorizing a Debt Service Reserve Account insurance policy in lieu of the Debt Service Reserve Account in cash funds. The City's Finance Department has determined that a Debt Reserve Account insurance policy is fiscally beneficial to the City. This ordinance amends the 1998 Bond Ordinance (8919- 98) to permit the City to substitute one or more insurance policy(s) to provide funds for the Debt Service Reserve Account. This proposed Ordinance has been reviewed and approved by the Indiana Bond Bank, holder of the 1998 bonds, as well as by the State of Indiana. This being the time heretofore set for the Public Hearing on the above bill, proponents and opponents were given an opportunity to be heard. There being no one present wishing to speak to the Council either in favor of or in opposition to this bill, Councilmember Varner made a motion for favorable recommendation to full Council concerning this bill. Councilmember Dieter seconded the motion which carried by a voice vote of eight (8) ayes. BILL NO. 60-04 PUBLIC HEARING ON A BILL OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, APPROPRIATING$397,640 OF UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ECONOMIC DEVELOPMENT INITIATIVE GRANT FUNDS WITHIN FUND 209 FOR THE PURPOSE OF REDEVELOPMENT OF THE STUDEBAKER-OLIVER PROJECT AREA Councilmember Kelly, Chairperson, Community and Economic Development Committee, reported that this committee held a Public Hearing on this bill this afternoon and voted to send it to the full Council with a favorable recommendation. Mr. Andy Laurent, Economic Development Specialist,Division of Community and Economic Development, 1200 County-City Building, South Bend, Indiana, made the presentation for this bill. 7