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<br />REGULAR MEETING JANUARY 13, 1975
<br />IREGULAR MEETING - RECONVENED (CONTINUED)
<br />No. 469 -75
<br />WHEREAS, there are certain idle funds of the Civil City of South Bend, Indiana,
<br />which may be invested for periods of time without affecting the operations of the
<br />various departments of the city; and
<br />WHEREAS, Chapter 9 of the 1945 Acts of the General Assembly of the State of
<br />Indiana, as amended, enables the Controller to invest such idle funds with the approval
<br />of the Common Council;
<br />NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend,
<br />Indiana:
<br />SECTION I. That during the calendar year 1975, the Controller invest certain
<br />idle funds of the City of South Bend for such periods of time that he determines are
<br />not needed for the normal operations of the various departments of the city.
<br />SECTION II. This resolution shall be in full force and effect from and after
<br />its passage by the Common Council, and its approval by the Mayor.
<br />s/ Roger 0. Parent
<br />Member of the Common Council
<br />Councilman Horvath made a motion to suspend the rules and combine the public hearings on both
<br />resolutions, seconded by Councilman Newburn, and the motion carried by a roll call vote of nine
<br />ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and
<br />Nemeth). Mr. Walter Lantz, Chief Deputy Controller, explained that the resolution to allow
<br />temporary transfers of funds was necessary in order to cover the city's normal operating expenses
<br />in 1975. He stated that all the funds are tax - supported, and the only alternative to making the
<br />transfers would be to negotiate bank loans at an interest rate of possibly three percent or
<br />greater, which would have to be repaid from the tax revenues. He indicated that the second
<br />resolution would authorize the controller to continue the city's investment program which has been
<br />in practice for the past three years. Councilman Nemeth asked about the amount of interest to be
<br />paid if borrowed from a private institution. Mr. Lantz indicated that the interest rate would be
<br />three percent. Councilman Nemeth wondered about the interest drawn on the idle funds. Mr. Lantz
<br />indicated that that ranged from 9% to 9;2-0. He stated that state law requires that any interest
<br />from investments must be receipted back to the fund from which it was invested. In effect, the
<br />city would be paying 5% interest on loans out of the operating monies and the interest the city
<br />would be earning could only go for capital improvement. Councilman Nemeth questioned the proce-
<br />dure used and other possible solutions for investment. Mr. James Barcome, City Controller,
<br />(stated that close to $1 million has been earned by investing funds in the last few years. He
<br />indicated that every day the market was checked for the highest interest rates, etc. He stated
<br />that the resolution allowed for the best solution, in his opinion. Mr. Lantz indicated that,
<br />also, the city would have to advertise for bids on interest rates, etc., if another route was
<br />taken because it was a requirement of the State Board of Accounts.
<br />Councilman Miller made a motion to adopt the resolution transferring idle funds, seconded by
<br />Councilman Taylor. The resolution was adopted by a roll call vote of nine ayes (Councilmen Serge,
<br />Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath, Newburn and Nemeth).
<br />Councilman Miller then made a motion to adopt the resolution authorizing the controller to make
<br />investments of idle funds, seconded by Councilman Serge. The resolution was adopted by a roll
<br />call vote of nine ayes (Councilmen Serge, Szymkowiak, Miller, Parent, Taylor, Kopczynski, Horvath,
<br />Newburn and Nemeth).
<br />ORDINANCES, FIRST READING
<br />ORDINANCE AN ORDINANCE APPROPRIATING $50,000.00
<br />FROM THE FEDERAL ASSISTANCE GRANT COMMONLY
<br />REFERRED TO AS GENERAL REVENUE SHARING,
<br />FOR VARIOUS HUMAN RESOURCE PROGRAMS, TO
<br />BE ADMINISTERED BY THE CITY OF SOUTH
<br />BEND THROUGH ITS DEPARTMENT OF HUMAN
<br />RESOURCES.
<br />This ordinance had first reading. Councilman Newburn made a motion to set the ordinance for publi�
<br />hearing and second reading on January 27, 1975, seconded by Councilman Taylor. The motion carried
<br />INANCE AN ORDINANCE FOR AN ADDITIONAL APPRO-
<br />PRIATION IN THE AMOUNT OF $6,000.00
<br />FROM THE CUMULATIVE CAPITAL IMPROVEMENT
<br />FUND, IN OBLIGATED SURPLUS, TO ACCOUNT
<br />NO. 0610.0, "INTEREST ON BONDS AND
<br />NOTES ", AN ACCOUNT WITHIN THE
<br />CUMULATIVE CAPITAL IMPROVEMENT
<br />BUDGET OF THE CIVIL CITY OF SOUTH
<br />BEND, INDIANA.
<br />This ordinance had first reading. Councilman Horvath made a motion to set the ordinance for publi
<br />hearing and second reading on January 27, 1975, seconded by Councilman Taylor. The motion carried
<br />ORDINANCE AN ORDINANCE APPROPRIATING THE SUM OF
<br />$172,000.00 FROM THE FEDERAL ASSISTANCE
<br />GRANT FUND TO ACCOUNT NO. 260.1,
<br />"ARCHITECT AND CONSTRUCTION MANAGEMENT
<br />FEES AND EXPENSES ", AN ACCOUNT WITHIN
<br />THE NEW FEDERAL ASSISTANCE PROGRAM
<br />F.A. 75, "CIVIC CENTER CONSTRUCTION ",
<br />TO BE ADMINISTERED BY THE DEPARTMENT
<br />OF PUBLIC WORKS OF THE CITY OF SOUTH
<br />BEND, INDIANA.
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