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HomeMy WebLinkAbout2007-OR-62 ORDINANCE NO. 2-o0'rt--Oe.- 0.?? WHEREAS, the Common Council of the City of Jeffersonville ("City") hereby finds that an emergency existed for the borrowing of money with which to meet the expenses of said City that will be incurred in 2007 to be paid from the City General, Park, Sanitation, Police Pension and Fire Pension Funds of said City, which expenses must be met prior to the receipt of the final settlement and distribution of taxes for the year 2006, collectible in the year 2007 and thereafter, and WHEREAS, the Clerk-Treasurer has presented to the Common Council a recommendation that the City issue a temporary loan in the amount of $3,006,000 for the City General Fund, $505,000 for the Pak Fund, $282,000 for the Sanitation Fund, $168,000 for the Police Pension Fund and $375,000 for the Fire Pension Fund, subject to the terms hereinafter set forth: NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Common Council of the City of Jeffersonville, Indiana ("City"), that the City issue a temporary loan for and on behalf of the City in the aggregate amount of $4,336,000. The loans shall be used for meeting expenses of the City included in the regular budget and appropriations adopted for the year 2007, which expenses must be met prior to the receipt of the final settlement and distribution of taxes for the year 2007. Such temporary loan shall be evidenced by warrants of the City dated as of the date of delivery thereof, bearing interest at a rate not to exceed 6% per annum (the exact rate to be determined by negotiation conducted by the Clerk-Treasurer), which interest shall be payable at the time of the final payment of the principal of said warrants and said warrants shall mature and be payable as follows: FUND TOTAL MATURING General $3,006,000 December 31, 2007 Park $ 505,000 December 31, 2007 Sanitation $ 282,000 December 31, 2007 Police Pension $ 168,000 December 31, 2007 Fire Pension $ 375,000 December 31, 2007 Interest shall be calculated on a 366 day basis. A sufficient amount of the revenues of the City to be derived from the City General, Park, Sanitation, Police Pension and Fire Pension Fund levies is hereby appropriated and pledged for the payment of the principal amount of said warrants to be issued at maturity on account of the taxes for the year 2006, collectible in the year 2007 and thereafter, and a sufficient amount of the revenues of the City to be derived from such Funds is hereby appropriated and pledged for the payment of interest on said warrants at maturity. The Clerk-Treasurer of said City is hereby authorized and directed to pay the principal amount of the warrant of the tax revenues of each fund and the interest on the warrants from the designated Fund upon the presentation thereof at or after maturity. The warrants will be delivered on or about October 17,2007. Said warrants shall be signed by the Mayor and the seal of the City shall be affixed thereto and attested by the signature of the Clerk-Treasurer ofthe City. Said warrants shall be payable at the office of Clerk-Treasurer of the City. Said warrants shall, on the face thereof, indicate that it is issued for the City General, Park, Sanitation, Police Pension and Fire Pension Funds and payable out of the respective Fund's revenues. Said warrants shall be issued in substantially the following form, all blanks to be properly filled in prior to delivery, to-wit: No. UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF CLARK CITY OF JEFFERSONVILLE, INDIANA TEMPORARY LOAN WARRANT FUND FOR V ALUE RECEIVED, The City of Jeffersonville, Indiana, will pay to at the office of the Clerk-Treasurer, Clark County, Indiana, on December 31, 2007, to the extent drawn hereunder the maximum sum of Dollars ($ ) with interest thereon, at the rate of _ % per annum, computed from the date of each draw to the date of repayment, calculated on a 365-day basis. Draws upon this warrant shall be made upon five days' written notice and shall be noted upon this warrant. Multiple draws and repayments may be made under this warrant provided that the outstanding principal balance may at no time exceed $ This warrant evidences a temporary loan aggregating Dollars ($ ) authorized by Ordinance passed and adopted by the Common Council of Jeffersonville, Indiana on October 1, 2007, and in accordance with Indiana Code, Title 36, Article 4, Chapter 6, and all other acts amendatory thereof or supplemental thereto, for the purpose of procuring a temporary loan for the Fund of said City. This warrant is issued in anticipation of the tax levy made for the Fund in the year 2006, collectible in the year 2007 and thereafter, which tax levy is now in the course of collection and to the payment of the principal amount and the interest thereon, of the revenues to be derived from the Fund levy, a sufficient amount of the revenues to be derived from the Fund levy has been and is hereby appropriated and pledged. It is hereby certified that in the execution of this warrant, all prOVISIOns of the Constitution and the Statutes of the State of Indiana relating thereto have been complied with, that the Fund tax levy from the proceeds from which the principal amount of and interest thereon this warrant is payable, together with other revenues in that Fund, are valid and legal levies; and that said City will reserve a sufficient amount in the Fund for the payment of the principal of and interest on these warrants. IN WITNESS WHEREOF, the City of Jeffersonville, Indiana, has caused this warrant to be signed in its name by the Mayor and attested by the Clerk-Treasurer as of the _ day of October, 2007. CITY OF JEFFERSONVILLE, INDIANA By: Mayor City of Jeffersonville, Indiana Attest: Clerk- Treasurer City of Jeffersonville, Indiana Date Amount Drawn or Repaid Outstanding Balance *** End of Form of Warrant * ** The Clerk-Treasurer of the City is hereby authorized and directed to have said warrants prepared in the form herein provided and the Clerk-Treasurer is hereby directed to negotiate the delivery of the warrants. The Clerk-Treasurer is hereby authorized and directed to negotiate the sale and the delivery of the warrants with a financial institution pursuant to the terms of this ordinance in the manner the Clerk-Treasurer determines. The warrants may be sold as either a taxable series or a tax-exempt series as determined by the Clerk-Treasurer. Upon the letting of the loan by the Clerk-Treasurer, the Mayor and Clerk-Treasurer are hereby authorized and directed to execute said warrants in the form herein provided, and the Clerk-Treasurer is hereby authorized and directed to deliver said warrants when so executed on or about October 17,2007, to the respective purchaser or purchasers thereof, upon payment by said purchaser or purchasers of the purchase price for such warrants, together with the interest, if any, accruing from the date of said warrants to the date of delivery. In the event that the property tax distributions from which these warrants are payable are not received in a timely manner for the repayment of the warrants, the Clerk-Treasurer is authorized to negotiate an extension of the maturity of the warrants to a date not later than the earlier of June 30, 2008, or a date which is five business days after the receipt of the property tax distributions allocable to 2007. In order to preserve the exclusion of interest on any tax exempt series of warrants from gross income for Federal income tax purposes and as an inducement to purchasers of the warrants, the City represents, covenants and agrees that: a. No person or entity, other than the City or another governmental unit, will use proceeds of the warrants or property financed by the warrant proceeds other than the City or another governmental unit will own property financed by warrant proceeds or will have actual or beneficial use of such property pursuant to a lease, a management or incentive payment contract or to any other type or arrangement that differentiates that person's or entity's use of such property from the use by the public at large. b. No warrant proceeds will be loaned to any entity or person. No warrant proceeds will be transferred, directly or indirectly, or deemed transferred to a nongovernmental person in any manner that would in substance constitute a loan of the warrant proceeds. c. The City will, to the extent necessary to preserve the exclusion of interest on the tax- exempt warrants from gross income for federal income tax purposes, rebate all required arbitrage profits on warrant proceeds or other monies treated as warrant proceeds to the federal government as provided in Section 148 of the Internal Revenue Code of 1986, and will set aside such monies in a Rebate Account to be held by the Clerk-Treasurer in trust for such purpose. d. The City will file an information report with the Internal Revenue Service as required by Section 149 of the Internal Revenue Code of 1986. e. The City will not take any action nor fail to take any action with respect to the warrants that would result in the loss of the exclusion from gross income for federal income tax purposes of interest on the tax-exempt warrants pursuant to Section 103 of the Internal Revenue Code of 1986, as existing on the date of issuance of the warrants, nor will the City act in any other manner which would adversely affect such exclusion. * * * End of Ordinance * * * CITY OF JEFFERSONVILLE, INDIANA Introduced by: , Councilmember Passed in open Council this I By: Attest: ~ L~j)MJ , Clerk-Treasurer City f1 J ffersonvllle, Indiana Presented by me to the Mayor this d I~ day of October, 2007. By: President City Council ,,/' "If-) I 1/' 'ft; I Approved by me, the Mayor, this ~ day of 0 'tober, 20 / /' By: J AtteWn~V-~ , Clerk-Treasurer 1/2016921.1