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HomeMy WebLinkAbout2004-OR-51 ORDINANCE NO.2004-OR-51 WHEREAS, the Common Council of the ity 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 2004 to be paid from the C~ty General Fund of said City, which expenses must be met prior to the receipt of the final settlement and distribution of taxes for the year 2003, collectible in the year 2004 and thereafter, and WHEREAS, the Clerk-Treasurer has~ presented to the Common Council a recommendation that the City issue a temporary ~oan in the amount of $4,000,000 for the City General Fund in the amounts and subject to the reruns hereinafter set for~: NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the Common Council of the City of Jeffersonville, Indiana ("City"), that the City ~ssue a temporary loan for and on behalf of the City General Fund in the aggregate amount of ~;4,000,000. The loans shall be used for meeting expenses of the City included in the regular budget and appropriations adopted for the year 2004, which expenses must b~ met prior to the receipt of the final settlement and distribution of taxes for the year 2004. Such temporary loan shall be evidenced l~y 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 stiid warrants and said warrants shall mature and be payable as follows: TOTAL MATURING FUND General $4,000,000 December 31, 2004 Interest shall be calculated on a 366 day basi~. A ~ufficient amount of the revenues of the City to be derived from the City General Fund levy is he.~eby 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 2003, collectible in the year 2004 and thereafter, and a sufficient amount of the revenues of the City to be derived from such 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 warfare 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 6r ab0. ut August 31, 2004. Said warrants shall be signed by the M~tyor and the seal of the City shall be affixed thereto and attested by the signature of the Clerk-Treasurer of the City. Said warrants shall be payable at the offic~ of Clerk-Treasurer of the City. Said warrants shall, on the face thereof, indicate that it is issued for the City General Fund and payable out of the respective Fund's revenues. Said warrants shall be issued in substantial!y the following filled in prior to delivery, to-wit: UNITED STA~-ES BF AMERICA STATE OF INDIANA C,T¥ OF JEFFEdSO LE, TEMPOP R LOXN WAPX*NT GENERAI~FUND form, all blanks to be properly No. COUNTY OF CLARK FOR VALUE RECEIVED, The 'City~ of Jeffersonville, Indiana, will pay to at the office of the Clerk-Treasurer, Clark County, Indmna, on December 3 , 2004, to the extent drawn hereunder the m~xim~ sum of Four Million Dollars ($4,000,000) with interest thereon, at the rate of __% l~er annum, computed from the date of each draw to the date of repayment, calculated on a 366-day l~asis. Draws upon this warrant shall be made upon five days' written notice and shall ~e nOied upon this warrant. Multiple draws and repayments may be made under this warrant provi~led that the outstanding principal balance may at no time exceed $4,000,000. This warrant evidences a temporary !oan/tggregating Four Million Dollars ($4,000,000) authorized by Ordinance passed and adopted by the Common Council of Jeffersonville, Indiana on August 16, 2004, and in accordance with ilndiaha Code, Article 36, Title 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 2003, cOllectible in the year 2004 andl thereafter, which tax levy is now in the course of collection and to the payment of the principal am6unt and the interest thereon, of the revenues to be derived from the General Fund levy, a sfiffici~nt amount of the revenues to be derived from the General Fund levy has been and is hereby applopriated and pledged. It is hereby certified that in the !exechtion 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 wlth other revenues in that Fund, are valid and legal levies; and that said City will reserve a sufficient iamount in the General Fund for the payment of the principal of and interest on these warrant~. 1N WITNESS WHEREOF, the City o~ Je~erSonville, 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 August, 2004. ! Mayor / ~! City of Jeffersonville, In-- -- ' -' ' ctiana Attest: Clerk-Treasurer City of Jeffersonville, Indiana Date Amount Drawn~ or R~paid Outstanding Balance *** End of~ormr~f Warrant*** The Clerk-Treasurer of the City is h6reby~authorized and directed to have said warrants prepared in the form herein provided and the Clerk-Treasurer ts hereby directed to negotiate the delivery of the warrant extension and expansion. 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 marinei the ~lerk-Treasurer determines. The warrants may be sold as either a taxable series or a tax-e~emp~t 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 ~eiiver said warrants when so executed on or about August 31, 2004, to the respective purchaser or purchasers thereof, upon payment by Said purchaser or purchasers of the purchase price for §uch warrants, together with the interest, if any, accruing from the date of said warrants to the date of delivery. In order to preserve the exclusion of interest on any tax exempt series of warrants from gross income for Federal income tax purb°se~! and as an inducement to purchasers of the warrants, the City represents, covenants and &gre% that: a. No person or entity, other th the~City or another governmental unit, will use proceeds of the warrants or property finan6ed by the warrant proceeds other than the City or another governmental unit will own property finahced 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 that differentiates that person's or entity's use of such property from the use by the public at large', i ~ b. No warrant proceeds will be loane~ to tiny entity or person. No warrant proceeds wall be transferred, directly or indirectly, ~r deemed tr,hnsferred to a nongovernmental person in any manner that would in substance consti!ute a l~an oF the warrant proceeds; c. The City will, to the exten_~ neceslary t;; preserve the exclusi°n °f interest °n the tax- exempt warrants from gross income for federal inC~Ome tax purposes, rebate all required arbitrage profits on warrant proceeds or other mofiies ~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 bb held b~ th~XClerk-Treasurer in trust for such purpose.. d. The City will file an information repo~ with the Internal Revenue Service as required by Section 149 of the Internal Revenue Code of 19~86. 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 p"lursuant to Section 103 of the Internal Revenue Code of 1986, as existing on the date of issuanc~ of the warrants, no~ will the City act in any other manner which would adversely affect such exclusion. *** End of Or'~linance *** CITY OF JEFFERSONVILLE, INDIANA Passed in open Council this 16th day of August, 2004. Attest: City-ofi~3~f-l'er s o nville, By: , Clerk-Treasurer Indiana Presi3ent City Council Presented by me to the Mayor this ..-~ day of A~ugust, 2004. By ~. .... -~ ~ Approved by me, the Mayor, this - day ifA~y By. !Ma{~r/ ./ , Clerk-Treasurer