HomeMy WebLinkAboutCC-08-30-00-01 Carmel Utility$1m LoanRESOLUTION NO. CC o8-3o-o0-01
RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA,
REGARDING TEMPORARY TRANSFER OF FUNDS
WHEREAS, the Common Council (the "Council") of the City of Cannel, Indiana (the "City") has
determined that a need exists for the acquisition of property and the construction of a facility for the
housing and maintenance of vehicles used to maintain and repair streets in the City (the "Project"); and
WHEREAS, the Project, at an estimated cost of $5,000,000, will be financed by the issuance of
lease rental revenue bonds (the "Bonds") to be issued by the City of Carmel Redevelopment Authority,
such Bonds to be supported by a pledge of the City' s distributive share of the County Option Income Tax
CCOIT"), and amortized over a period of approximately twenty (20) years, with COIT lease rental
payments commencing in the year 2002; and
WHEREAS, in order to provide immediate funds for the acquisition of the site for the Project and
for preliminary design, architectural and/or engineering costs, the Council has determined to authorize a
temporary transfer of funds from the operating funds of the water and sewer utilities of the City, pursuant
to Indiana Code 36-1-8-4, such transfer to be repaid from the proceeds of the Bonds prior to the end of
budget year 2000;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF
CARMEL, INDIANA, AS FOLLOWS:
Pursuant to Indiana Code 36-1-8-4, the Council hereby authorizes the temporary transfer
of One Million Dollars ($1,000,000) from the operaling fund of the water utility of the City
to a special fund hereby created and designated as "City of Carmel 2000 Street
Maintenance Facility Project Fund" (the "Project Fund"), and the temporary transfer of
One Million Dollars ($1,000,000) from the operating fund of the sewer utility of the City
to the Project Fund (such transfers heroinafter collectively referred to as the "Utility
Loans"). Such transfers shall be effective until the earlier of(a) the date the Bonds are
issued, and (b) December 29, 2000, at which time the Utility Loans shall be repaid in full,
with simple interest calculated at the rate of six percent (6%) per annum, by the transfer
of funds in the Project Fund to the respective operaling funds of the City' s water and sewer
utilities.
In support of the authorization of the Utility Loans, the Council hereby makes the
following findings:
(a)
It is necessary for the City to borrow money to enhance the Project Fund, which
is in need of money for cash flow purposes to provide for the acquisition of the
site for the Project and the payment of preliminary design, architectural and/or
engineering costs;
(b)
There is sufliciant money on deposit to the credit of the respective operaling funds
of the City's water and sewer utilities that can be temporarily transferred to make
the Utility Loans;
CommonCouneilResolutionNo. CC-08-30-00-~/ Pagel of Pages
,
(c)
The moneys in the operating funds of the City's water and sewer utilities being
transferred herein were derived from the operations of the City.
The Council hereby calls for a public hearing on the appropriation of the proceeds of the
Utility Loans in accordance with Indiana Code 6-1.1 - 18 -5, such hearing to be held at the
regular Council meeting to be held on September 18, 2000. The appropriate officers of
the City are hereby authorized and directed to provide the required legal notices of such
hearing by publication and posting.
The Coun(~ hereby authorizes the Mayor to negotiate and enter into an agreement for the
purchase by the City of the Project site, such agreement to be condifioned upon completion
of all necessary actions, proceedings and approvals required by law for the City to acquire
real property, and upon the closing of the Utility Loans and appropriation of the proceeds
thereof for such purpose.
The Mayor and other appropriate officers of the City are hereby authorized to take such
further actions and execute such documents as may be necessary or appropriate to
effectuate the Utility Loans and real estate purchase authorized herein.
This Resolution shall take effect upon its passage by the Council and signing by the Mayor
as required by law.
Common Council RcsolutionNo. CC-08-30-00- C,[ Page 2 of Pages
COMMON COUNCIL FOR THE CITY OF CARMEL, INDIANA
Offi N.L. Rundie, President
'rby John R. Koven
Luci Snyder ~
Wayne A. Wilson
ATT~ ~L/~~ .
Diana L. Cordray, IAMC, Clerk-Treas~
Common Council Resolution No. CC-08-30-00- O / Pagc 3 of Pages
2000.
Diana L. Cordray, IAM , -
Approved by me, the Mayor of the City of Carmel, Indiana, this ~/day of/~T'~, 2000.
rainard, M~or/'i't .\
Diana L. Cordray, IAMC, er
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