HomeMy Public PortalAbout093-1992- STRICKEN - APPROPRIATION ORDINANCE AUTHORIZING THE CIORDINANCE NO. 93-1992
AN APPROPRIATION ORDINANCE authorizing the City of Richmond,
Indiana, to make temporary loans to meet current running expenses for the
use of the General Fund of the Issuer, in anticipation of and not in excess of
current taxes Ievied in the year 1992, and collectable in the year 1993;
authorizing the issuance of temporary loan tax anticipation time warrants to
evidence such loans and the sale of such warrants to the Indiana Bond Bank;
and appropriating and pledging the taxes to be received in such funds to the
punctual payment of such warrants including the interest thereon.
WHEREAS, the City Controller (the "City Controller") of
the City of Richmond, Indiana (the "Issuer"), has represented and
the Common Council of the Issuer (the "Common Council") now finds
that there will be insufficient amounts of moneys in the General
Fund of the Issuer (the. "Fund") to meet the current running
expenses of the Issuer payable from such Fund during the fiscal
year ending December 31, 1993, and prior to the respective June and
December settlement and distribution of taxes levied for such Fund;
and
WHEREAS, the Common Council now finds that temporary
loans for the Fund for such purposes should be made and that
temporary loan tax anticipation time warrants evidencing such loan
should be issued and sold, subject to the terms and conditions set
forth herein and in accordance with the provisions of Indiana law;
and
WHEREAS, the Common Council hereby determines to
participate in the 1993 Composite Advance Funding Program (the
"Program") established by the Indiana Bond Bank (the "Bond Bank")
whereby the Bond Bank will purchase the temporary loan tax
anticipation time warrants of the Issuer; and
WHEREAS, in order to participate in the Program the
Common Council may be required to issue and sell its temporary loan
tax anticipation time warrants to the Bond Bank prior to the final
certification of the annual budget levies and tax rates for the
Fund for fiscal year 1993 by the Indiana State Board of Tax
Commissioners; and
WHEREAS, the levy proposed for collection for the Fund
in 1993 is estimated to produce in the aggregate, with respect to
such Fund, an amount equal to or in excess of the principal and
interest cost of making temporary loans for such Fund; and
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WHEREAS, a necessity exists for the making of temporary
loans evidenced by temporary loan tax anticipation time warrants
for the Fund in anticipation of the receipt of current revenues
for such Fund levied for the year 1992 and in the course of
collection for the year 1993 and the Common Council hereby
authorizes the making of temporary loans to procure the amounts
necessary, in combination with other available amounts, to meet
such current running expenses for the Fund and to pay necessary
costs incurred in connection with the issuance and sale of
temporary loan tax anticipation time warrants to evidence such
temporary loan; and
WHEREAS, the Issuer has not previously issued temporary
loan tax anticipation time warrants payable from 1993 tax revenues
with respect to the Fund: and
. . WHEREAS, the Common Council seeks to authorize the
issuance of such temporary loan tax. anticipation time warrants with
respect to the Fund and the sale of such warrants to the Bond Bank
pursuant to the provisions of Indiana Code 5-1.5, subject to and
dependent upon the terms and conditions hereinafter set forth.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
THE CITY OF RICHMOND, INDIANA:
Section 1. It is hereby found and declared that an
emergency exists for the borrowing of money and therefore the
Issuer is hereby authorized to make a temporary loan to meet
current running expenses pursuant to the provisions of Indiana Code
36-4-6 for the use and benefit of the Fund of the Issuer in
anticipation of estimated current tax revenues actually levied for
the year 1992 and in the course of collection for the Fund in 1993,
which loan shall be evidenced by temporary loan tax anticipation
time warrants of the Issuer (the "Warrants"). A separate Warrant
or Warrants shall be issued with respect to the Fund for each
maturity date and all Warrants shall be dated as of the date of
delivery thereof to the Bond Bank. The Issuer is authorized to
issue Warrants maturing and payable on June 30, 1993, and
December 31, 1993, in amounts not to exceed the following:
Principal Amount Principal Amount
Maturing 6/30/93 Maturing 12/31/93
Fund to Exceed: Not to Exceed:
General Fund $1,568,400 $1,568,400
The Warrants shall bear interest prior to maturity at a
rate or rates per annum not to exceed a maximum of six and one-
half percent (6.500). The exact rate or rates of interest are to
be determined under the terms of a warrant purchase agreement
between the Bond Bank and the Issuer to be entered into prior to
the sale of the Warrants to the Bond Bank (the "Warrant Purchase
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Agreement"), in accordance with the provisions of Indiana Code
5-1.5. Interest shall be calculated on the basis of a 360-day year
comprised of twelve 30-day months.
The Issuer is authorized to make payments of principal
and interest on the Warrants by paying the amount due from funds
that are available for immediate transfer or investment on or
before 12:00 noon (Indianapolis time) on the due date to INB
National Bank, Indianapolis, Indiana, the Bond Bank's Trustee under
the Note Indenture dated as of January 1, 1993 (the "Trustee").
The Warrants may not be prepaid prior to the due date. In the
event that the principal of and interest on the Warrants are not
paid in full on the due date, the total amount due and owing on
such due date (the unpaid principal and accrued interest thereon
to such due date) shall thereafter bear interest at the per annum
rate equal to the "Reinvestment Rate" (as defined in the Warrant
Purchase Agreement).'until paid. In addition, the Issuer shall be
responsible for payment to the Bond Bank of its allocable portion
of all fees and expenses attributable to a request for payment
under the Credit Facility Agreement (as defined in the Warrant
Purchase Agreement) resulting from a failure by the Issuer to pay
in full the principal of and interest on the Warrants on the due
date.
Section 2. With respect to the Fund and each maturity
date, the officers of the Issuer are authorized to deliver a
principal amount of Warrants up to or less than the maximum amount
established for such Fund or maturity date in Section 1 hereof in
order to comply with all applicable laws and any requirements of
the Bond Bank. All Warrants will be delivered on or about
January 20, 1993, or otherwise as appropriate and in accordance
with the terms of the Warrant Purchase Agreement. In the event
that the Issuer anticipates incurring cash flow deficits prior to
the issuance and sale of the Warrants to the Bond Bank, the Issuer
is hereby authorized to issue and sell temporary interim warrants
to the Bond Bank on substantially the same terms as the issuance
and sale of the.Warrants to the Bond Bank, and in such event, all
or a portion of the proceeds of the Warrants may be used to repay
the temporary interim warrants.
Section 3. There is hereby appropriated and pledged to
the payment of all Warrants issued with respect to the Fund,
including interest and all necessary costs incurred in connection
with the issuance and sale of the Warrants, a sufficient amount of
the tax revenues, levied for 1992, and payable in 1993, for such
Fund and in anticipation of which the Warrants have been issued,
for the punctual payment of the principal of and interest on the
Warrants evidencing such temporary loan, together with such
issuance costs, if any.
Section 4. The Warrants issued hereunder with respect
to the Fund shall be executed in the name of the Issuer by the
manual or facsimile signature of the Mayor of the City of Richmond,
:XC
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Indiana (the "Mayor"), countersigned by the manual or facsimile
signature of the City Controller, and the corporate seal of the
Issuer affixed thereto, and attested by the manual or facsimile
signature of the Clerk of the City of Richmond, Indiana (the
"Clerk"), or such other officers of the Issuer as may be permitted
by law, provided, however, that at least one such signature on the
Warrants shall be manual. All Warrants shall be payable in lawful
money of the United States of America at the principal corporate
trust office of the Trustee. Further, -the Warrants shall not be
delivered and no payment shall be made therefor prior to January 1,
1993.
Section 5. The'Warrants with respect to the Fund shall
be issued in substantially the following form (all blanks,
including the appropriate amounts, dates,.and other information to
be properly completed. prior to the execution and delivery thereof):
[Form of Warrant]
UNITED STATES OF AHERICA
STATE OF INDIANA
Due Date: [June 30, 1993, or
December 31, 19931
CITY OF RICHMOND, INDIANA
TEMPORARY LOAN TAX ANTICIPATION TIME WARRANT
(GENERAL FUND)
FOR VALUE RECEIVED, on or before [June
1993], the City of Richmond, Indiana (the "Issuer"),
Bond Bank (the "Bond Bank") the amount of $
Warrant Purchase Agreement between the Bond Bank an
, 1992 (the "Agreement").
COUNTY OF WAYNE
P
30, 1993, or December 31,
shall pay to the Indiana
pursuant to a certain
d the Issuer, dated as of
In addition, the Issuer on the Due Date hereof shall pay to the Bond
Bank interest at the rate of % per annum, with such interest to be
calculated on the basis of a 360-day year comprised of twelve 30-day months.
Under the Note Indenture dated as of January 1, 1993, INB National Bank,
Indianapolis, Indiana, is serving as the Bond Bank's Trustee (the "Trustee").
In the event that the principal of and interest on this Warrant are not paid in
full to the Bond Bank at the principal corporate trust office of the Trustee in
immediately available funds on or before 12:00 noon (Indianapolis time) on the
Due Date, the total amount due and owing on the Due Date (the unpaid principal
and accrued interest to the Due Date) shall thereafter bear interest at the per
annum rate equal to the Reinvestment Rate (as defined in the Agreement), until
paid. In addition, the Issuer shall pay to the Bond Bank its allocable portion
of all fees and expenses attributable to a request for payment under the Credit
Facility Agreement (as defined in the Agreement) resulting from a failure by the
Issuer to pay in full the principal of and interest on this Warrant on the Due
Date.
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All payments of principal and interest to be made by the Issuer to
the Bond Bank shall be made by paying the amount due in funds that are available
for immediate transfer or investment on or before 12:00 noon (Indianapolis time)
on the payment date to the Trustee in Indianapolis, Indiana. This Warrant may
not be prepaid prior to the Due Date.
This Warrant evidences a temporary loan to provide funds to meet
current expenses of the General Fund, and has been authorized by an ordinance
passed and adopted by the Common Council of the City of Richmond, Indiana, on
1992, in accordance with Indiana Code, Title 36, Article 4,
Chapter 6, and all other acts amendatory thereof or supplemental thereto.
This Warrant is issued in anticipation of the tax levy which has
been made for the General Fund in the year 1993, which tax levy is now in the
course of collection. There has been irrevocably appropriated and pledged to
the payment in full of the principal of and interest on this Warrant a
sufficient.ameunt of the revenues to be derived from the General' Fund tax levy.
It is further hereby certified, recited, and declared that all acts,
conditions, and things required by law precedent to the issuance and execution
of this Warrant have been properly done, have happened, and have been performed
in the manner required by the constitution and statutes of the State of Indiana
relating thereto; that the General Fund tax levy from which (together with other
amounts in the General Fund) this Warrant is payable, is a valid and legal levy;
and that the Issuer will reserve a sufficient amount of the proceeds of the
Fund tax levy currently in the course of collection for the
timely payment of the principal of and interest on this Warrant in accordance
with its terms.
IN WITNESS WHEREOF, the City of Richmond, in the County of Wayne,
State of Indiana, has caused this Warrant to be executed in its corporate name
by the Mayor of the City of Richmond, Indiana, countersigned by the City
Controller of the City of Richmond. Indiana, and its corporate seal to be
hereunto affixed and attested by the City Clerk of the City of Richmond,
Indiana, all as of the day of January, 1993.
CITY OF RICHMOND, INDIANA
By:
Mayor, City of Richmond, Indiana
COUNTERSIGNED:
City Controller, City of Richmond, Indiana
(SEAL)
ATTEST:
City Clerk, City of Richmond, Indiana
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(End of Form of Warrant)
Section 6. The City Controller is hereby authorized and
directed to have the Warrants prepared, and the Mayor, the City
Controller, and the City Clerk, or such other officers as may be
permitted by law, are hereby authorized and directed to execute all
Warrants in the manner and substantially the form provided in this
Ordinance.
Section 7. The City Controller, on behalf of the Issuer,
is authorized to sell to the Bond Bank the Warrants. The Warrant
Purchase Agreement shall set forth the definitive terms and
conditions for such sale.' Warrants sold to the Bond Bank shall be
accompanied by all documentation required by the Bond Bank pursuant
to the provisions of Indiana Code 5-1.5 and the Warrant Purchase
Agreement, including without limitation an approving opinion of
Baker & Daniels, specially designated bond counsel for the
Warrants; certification and guarantee of signatures; and
certification as to no litigation pending as of the date of
delivery of the Warrants to the Bond Bank challenging the validity
orissuance of the Warrants. The entry by the Issuer into the
Warrant Purchase Agreement and the execution of the Warrant
Purchase Agreement, on behalf of the Issuer by the City Controller
and the City Clerk, in accordance with this Ordinance, are hereby
authorized and approved.
Section 8. The proper officers of the Issuer are hereby
authorized to deliver the Warrants to the Bond Bank, upon receipt
from the Bond Bank of payment in accordance with the terms of the
Warrant Purchase Agreement.
Section 9. The City Controller and other appropriate
officers of the Issuer are hereby authorized and directed to make
such filings and requests, deliver such certifications, execute
and deliver such documents and instruments, and otherwise take such
actions as are necessary or appropriate to carry out the terms and
conditions of this Ordinance and the actions authorized hereby and
thereby.
Section 10. The Issuer hereby covenants that the Issuer
and its officers shall not take any action or fail to take any
action with respect to the proceeds of any of the Warrants or any
investment earnings thereon which would result in constituting any
of the Warrants as "arbitrage bonds" under the Internal Revenue
Code of 1986, as amended, and any and all final or proposed
regulations or rulings applicable thereto, or which would otherwise
cause the interest on any of the Warrants to cease to be excludable
from gross income for purposes of federal income taxation; and the
City Controller and all other appropriate officers are hereby
authorized and directed to take any and all actions and to make and
deliver any and all reports, filings, and certifications as may be
necessary or appropriate to evidence, establish, or ensure such
continuing exclusion of the interest on the Warrants.
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Section 11. This Ordinance shall be in full force and
effect from and after the time it has been adopted by the Common
Council, approved by the Mayor, and otherwise executed and
delivered in accordance with any and all laws pertaining thereto.
Section 12. All resolutions and ordinances in conflict
herewith are, to extent of such conflict, hereby repealed.
Adopted and approved by the Common Council of the City
of Richmond, Indiana, this day of , 1992.
Presiding Officer, Common Council
City of Richmond, Indiana
ATTEST:
City Clerk, City of Richmond, Indiana
PRESENTED BY ME, the undersigned City Clerk of the City
of Richmond, Indiana, to the Mayor of the City of Richmond,
Indiana, for his approval and signature this day of
, 1992.
City Clerk, City of Richmond, Indiana
APPROVED AND SIGNED BY ME, the undersigned Mayor of the
City of Richmond, Indiana, this day of ,
1992.
Mayor, City of Richmond, Indiana
restarkeXbonds wpp\1993.alrichmand.ctp\ordinanc.e;mjb;11/23/92
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DISPOSITION OF ORDINANCE NO. �� -199 �"
RESOLUTION NO. -199_
by Common Council
Ordinance No.,,- 3
Resolution No. Elstro Lundy Brookbank Donat McBride Parker Dickman Allen Hutton
Date�1
Susp. rules Ist read
Title only
-
Seconded
Move to 2nd read
Seconded I i
Engrossment ----- ---A---- -------- ---- - -- ---- ------ ._.---------
Seconded
Susp rules 3rd real.
Seconded
?gf- Jj
--o - ✓ -- v ---- _'�--�-- v- - --- --^Y---- - -- - � --
Rejection
6T(�IC K!E All
Date Ras"d—
COMMITTEE ASSIGNMENTS:
Committee Date
Commttee Hearing Date
Reassigned to Council Agenda
PUBLICATION DATES:
AMENDMENTS:
COMMENTS:
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