HomeMy WebLinkAbout2003-OR-06ORDINANCE NO. 2003- OR- 6
AN ORDINANCE AUTHORIZING A TAX ANTICH~ATION
WARRANT FOR THE TAX INCREMENT FINANCING 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 e~dsts for the borrowing of money wi~h which to meet
the expenses of said' City that will be incurred in 2003 to be paid from the Tax Increment
Financing (TI]?) Fund of said City, which ~xpenses must be met prior ro 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 TI]F Fund in the amounts and
subject to the terms hereinafter set forth:
NOW, THEREFORE, BE IT AND IT IS I:I~REBY RESOLVED by the Common
Council of the City of Jeffefsonville, Indiana that a temporary loan made for and on
behalf of the TIF Fund of said City in the amount of $878,000, the proceeds of each loan
shall be placed in the TIF Fund of said City. The loan for the TIF 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% 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
TEF $878,000
December 31, 2003
Interest shall be calculated on a 365 day basis. The warrant shall be subject to multiple
draws and repayments of principal prior to maturity. A sufficient amount of the revenues
of the City to be derived from the TIF 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 TIF 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 pringipal
amount of the T1F Fund warrant of the tax revenues of each fund and the interest on the
warrants from the TIF Fund upon the presentation thereof at or at~er maturity. The
warrant~ will be delivered on or about ~ '- , 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, onthe face thereof, indicate that it is issued for the T~ Fund and payable
out of the TII~ 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 JEFFERSONVlLLE, 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 Eight hundred seventy eight thousand dollars
($878,000) with interest thereon, st the rate of __.% per annum, computed from the date
hereof, calculated on a 365 day basis.
This warrant evidences a temporary loan aggregating Dollars ($___)
authorized by Ordinance passed and adopted by the Common Council of Jeffersonville on
,2003, and in accordance with Indiana Code, Article 38, Title 4, Chapter 6, and
all other acts amendatory thereof, or supplemental thereto, for the purpose of procuring a
temporary loan for the TIF Fund of said City.
This warrant is issued in anticipation of the tax levy made for the TIF 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 TIF Fund levy has been and is hereby appropriated and pledged.
This temporary loan warrant has been designated as a qualified obligation pursuant to
Section 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
TIF 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 TIF 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
Attest:
Clerk Treasurer Peggy Wilder
City of Jeffersonville, Indiana
By:
Mayor Thomas R. Galligan
City of Jeffersonville, Indiana
***End of Form of Warrant***
The Clerk Treasurer of the City is hereby authorized and diiected 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 there fi.om 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 ,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 fi.om the date of said warrants to the
date of delivery.
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
represents, 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 oth~r 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'~ lease;
a management or incentive payment contract or to any other type or arrangement
.~i .,~-.,,: ~ ~ ~..~ 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 o loan
of the warrant proceeds.
c. The City will, to the extent necessmy 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.
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 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·
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 aiter August 7, 1986.
This ordinance shall be in full force and effect upon its adoption.
SO ORDAINED on this day of
CITY OF IE~'I~'£RSONVILLE, INDIANA
By:
Thomas R, Galligan, Presiding Officer
ATTEST:
Peggy Wilder, Clerk-Treasurer
Presented by Peggy Wilder, Clerk and Treasurer to the Mayor of said City of
Jeffersonville on this .day of ~
Peggy Wilder, Clerk and Treasurer
This Ordinance approved and signed by me this .day of
Thomas R. Galligan Mayor
ATTEST:
Peggy Wilder, Clerk-Treasurer