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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 Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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 -2 - Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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 Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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. -4- Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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 —5— Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) (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. Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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 —%— Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com) 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: Create PDF files without this message by purchasing novaPDF printer (ht .//www.novapdf.com)