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HomeMy WebLinkAbout2003-OR-11 ORDINANCE NO. 2003- OR - 11 AN ORDINANCE AUTHORIZING A TAX ANTICIPATION WARRANT FOR THE GENERAL FUND OF THE CITY OF JEFFERSONVILLE WHEREAS, the Clerk Treasurer and the Common Council of the City of Jeffersonville (City) now find that an emergency exists for the borrowing of money with which to meet the expenses of said City that will be incurred in 2003 to be paid fi.om the General Fund of said City, which expenses must be met prior to the receipt of the December settlement and distribution of taxes for the year 2003, and WHEREAS, the Clerk Treasurer has presented to the Common Council a recommendation that a temporary loan be made for the General Fund in the amounts and 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 that a temporary loan made for and on behalf of the General Fund of said City in the amount of $9,200,000, the proceeds of each loan shall be placed in the General Fund of said City. The loan for the General Fund shall be used for meeting expenses of the City included in the regular budget and appropriations adopted for the year 2003, which expenses must be met prior to the receipt of the December settlement and distribution of taxes for the year 2003. Such temporary loan shall be evidenced by warrants of the City dated as to the date of delivery thereof, bearing interest at a rate not to exceed 8°4 annum (the exact rate to be determined by bidding), 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 $9,200,000 December 31, 2003 Interest shall be calculated on a 365day basis. The warrant shall be subject to multiple draws and repayments of principal prior to maturity. The Clerk Treasurer is authorized to make draws under the warrant. A suffident amount of the revenues of the City to be derived fi.om the General Fund levy is hereby appropriated and pledged for the payment of the principal amount of said warrants to be issued for the respective Funds at maturity on account of the taxes for the year 2002, collectible in the year 2003, and a sufficient amount of the revenues of the City to be derived from the General Fund is hereby appropriated and pledged for the payment of interest on said warrants at maturity. The Clerk Treasurer of said City is hereby authorized and directed to pay the principal amount of the General Fund warrant of the tax revenues of each fund and the interest on the warrants fi.om the General Fund upon the presentation thereof at or after maturity. The warrants will be delivered on or about April 15, 2003. Said warrants shall be signed by the Mayor and the seal of the City shall be affixed thereto and attested by the signature of the Clerk Treasurer of the City of Jeffersonville. Said warrants shall be payable at the office of the Clerk Treasurer of the City. Said warrants, shall, on the face thereof, indicate that it is issued for the General Fund and payable out of the General Fund revenues. Said warrants shall be issued in substantially the following form, all blanks to be properly filled in prior to delivery, to-wit: NO. UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF CLARK CITY OF JEFFERSONVILLE, INDIANA TEMPORARY LOAN WARRANT GENERAL FUND FOR VALUE RECEIVED, the City of Jeffersonville, Indiana, will pay to at the office of the Clerk Treasurer, Clark County, Indiana, on December 31, 2003, to the extent drawn hereunder the maximum sum of dollars ($.__)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. This warrant is subject to multiple draws and repayments. This warrant evidences a temporary loan aggregating dollars ($.__) authorized by Ordinance passed and adopted by the Common Council of Jeffersonville on ,2003, and in accordance with Indiana Code, Article 36, T~le 4, Chapter 6, and all other acts amendatory thereof, or supplemental thereto, for the purpose of procuring a temporary loan for the General Fund of said City. This warrant is issued in anticipation of the tax levy made for the General Fund in the year 2002, collectible in the year 2003, 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 General Fund levy has been and is hereby appropriated and pledged. This temporary loan warrant has been designated as a qualified obligation pursuant to Sec'don 265(b)(3) of the Internal Revenue Code. 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 General 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 General 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 ,2003. CITY OF JEFFERSONVILLE, INDIANA By: Mayor Thomas R. Galligan City of Jeffersonville, Indiana Attest: Clerk Treasurer Peggy Wilder City of Jeffersonville, Indiana ***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 give notice of the letting of said loan by advertising said letting once each week for two consecutive weeks in two newspapers of general circulation, published in the City and requiring that sealed bids be submitted at a meeting of the bid committee designated by this Common Council, with said bids to stipulate the rate of interest to be charged by such bidder. The bid committee shall consist of the Clerk Treasurer of the City and the attorney for this Common Council. Upon the letting of the loan by the City to the bidder or bidders submitting the lowest net rate of interest after deducting therefrom the premium bid, if any, the Mayor and the Clerk Treasurer are hereby authorized and directed to execute said warrants for the General Fund in the form herein provided, and the Clerk Treasurer is hereby authorized and directed to deliver said warrants when so executed on or about April 15, 2003, to the perspective purchaser or purchasers thereof, upon payment by said purchaser or purchasers of the purchase price of such warrants, together with the interest, if any, accruing from the date of said warrants to the date of delivezy. In order to preserve the exclusion of interest on the warrants from gross income for Federal income tax purposes and as an inducement to purchasers of the warrants, the City represems, covenants and agrees that: a. No person or entity, other than the City or another governmental unit, will use proceeds of the warrant 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. 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 o loan of the warrant proceeds. The City will, to the extent neeessary to preserve the exclusion of interest on the 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 1996, and will set aside such monies in a Rebate Account to be held by the Clerk Treasurer in Trust for such purpose. The City will file an information report with the Imernal Revenue Service as required by Section 149 of the Internal Revenue Code of 1986. 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 warrants pursuant to Section 103 of the Internal Revenue Code of 1986, as existing on the date of issuance of the warrants, nor wilt the City act in any other manner which would adversely affect such exclusion. The City represents that tax-exempt obligations issued by or on behalf of it and any entity subordinate to it in the calendar year 2003 will not exceed $10,000,000 and that there are no entities to which it is subordinate. The City will designate the warrants as qualified obligations for purposes of Section 256(b)(3) of the Internal Revenue Code of 1986, relating to the disallowance of 100% of the deduction for interest expense allocable to tax exempt obligations acquired after August 7, 1986. This ordinance shall be in full force and effect upon its adoption. SO ORDAINED on this 17 day of March, 2003. CITY OF JEF~RSONVILLE, INDIANA T~o~s R. Galligan, Pr~si~i~l~ Officer ATTEST: Peggy Wh~,, Clerk-Treasurer Presented by Peggy Wilder, Clerk and Treasurer to the Mayor of said City of Jeffersonville on this c~O day of Pe~g~Wit~e~, ~21erk and Treasurer This Ordinance approved and signed by me thisc~ D day of ATTEST: Pe-gg~ WI'~I~"~, Clerk-Treasu er