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HomeMy Public PortalAbout1991-18ORDINANCE NO. 1991 -18 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF ® GREENCASTLE, INDIANA CONCERNING THE CONSTRUCTION OF A SWIMMING POOL IN ROBE -ANN PARR BY THE GREENCASTLE BOARD OF PARR COMMISSIONERS THROUGH THE ISSUANCE AND SALE OF BONDS 5 $. Lt WHEREAS, the City of Greencastle, Indiana ( "City ") is authorized by IC 36- 10- 4 -35(h) to approve the issuance of bonds by the City's Board of Park Commissioners on behalf of the City ( "Board "); WHEREAS, the boundaries of the City's Park and Recreation District ( "District ") are coterminous with the boundaries of the City; WHEREAS, a swimming pool constitutes a park improvement under IC 36 -10 -4 and a park improvement under IC 36 -1 -10; WHEREAS, the Board has determined to issue bonds on behalf of the City in an amount not to exceed $1,645,000 to finance the construction of a swimming pool in Robe -Ann Park together with necessary appurtenances, related improvements and equipment as further described in Resolution No. 1991 -2 of the Board adopted on May 15, 1991 ( "Project ") as confirmed by Resolution No. 1991 -3 on June 3, 1991; WHEREAS, the Project as proposed will be of benefit to the health, safety and general welfare of the citizens of the District and its environs; NOW, THEREFORE, BE IT ORDAINED, by the Common Council of the City of Greencastle, Indiana that: 1. The Common Council finds and confirms that the Project as proposed is desirable to preserve the health, safety and general welfare of the citizens of the City and the District and that it is in the public interest that the City take this action to construct the improvement. 2. The Common Council further finds and confirms that the issuance and sale of bonds by the Board on behalf of the City in an amount not to exceed $1,645,000 to finance the cost of the Project, and to pay the incidental expenses to be incurred in connection therewith and with the issuance and sale of the bonds will best serve the purposes referred to above. 3. The Common Council does now approve the sale of the Park District Bonds of 1991 in an amount not to exceed $1,645,000 all in accordance with the preliminary bond resolution of the Board adopted on June 29, 1991; provided that such issuance and sale shall not occur until all of the statutory procedures and approvals required for the issuance of bonds have been complied with and obtained. 1. 4. The City represents that: ® (i) The City of Greencastle Park District Bonds of 1991 in a principal amount not to exceed $1,645,000 issued to finance the Project will not be private activity bonds as defined in Section 141 of the Internal Revenue Code of 1986 ( "Code "); (ii) The Park District is a subordinate entity of the City and the City hereby approves the Park District's designation of the Bonds as qualified tax - exempt obligations for purposes of Section 265(b) of the Code; (iii) The reasonably anticipated amount of qualified tax - exempt obligations (including tax - exempt lease and qualified 501(c) (3) obligations but excluding other private activity bonds) which will be issued by the City, all units subordinate to the City and all entities which may issue bonds on behalf of the City during 1991 does not exceed $10,000,000; and (iv) The City and its subordinate entities have designated no more than $10,000,000 of qualified tax - exempt obligations for the year 1991. Therefore, the Bonds qualify for the exception in the Code from the disallowance of 100% of the deduction by financial institutions of interest expense allocable to tax - exempt obligations. 5. The City reasonably expects that tax - exempt obligations ® issued by or on behalf of the City, including the Bonds as well as bonds, tax - exempt leases and temporary loan warrants of the City (excluding private activity bonds), will not exceed $5,000,000 in the calendar year 1991. Pursuant to the Internal Revenue Code of 1986 as amended, Section 148 (f) (4) (D) , the City hereby irrevocably allocates to the Park District up to $1,645,000 of its $5,000,000 limit for purposes of qualifying for the small governmental exception to the rebate requirement. Adopted by the Common Council of the City of Greencastle, Indiana this 27th day of August, 1991. CITY OF GREENCASTLE, INDIANA COMMON COUNCIL B Z z Z, Y: Michael M. Harmless, Mayor Attest: (Jiydith A. erry, Jerk- Treasurer 2. Presented by me to the Mayor of the City of Greencastle this 27th day of August, 1991, at .5:.50 M. J ith Berry. Clerk easurer Signed and approved by me at the Mayor of the City of Greencastle this 27th day of August, 1991 at S / � b m. 4 Z��' Michael M. Harmless, Mayor 11 C A 3.