HomeMy WebLinkAboutD-1739-04 Utility Loan RepaymentORDINANCE NO. D-1739-04
Sponsor: Councilor Kirby
AN ORDINANCE OF THE COMMON COUNCIL OF
THE CITY OF CARMEL~ INDIANA APPROVING THE
BORROWING OF FUNDS FROM THE CITY'S
MUNICIPALLY OWNED SEWER UTILITY TO FINANCE
ACQUISITION OF PROPERTY FOR UTILITY USE
PURSUANT TO IND. CODE § 8-1.5-3-12
WHEREAS, the City of Carmel, Indiana presently owns its own sewer utility pursuant to
Indiana law applicable to cities of the third class;
WHEREAS, the City desired to acquire certain real estate in 2003;
WHEREAS, the City's municipally owned sewer utility acquired the real estate on behalf
of the City of Carmel and recognized the expense of the acquisition as a loan to the City of
Carmel due on or before December 1, 2003 (the "2003 Loan"); and
WHEREAS, the City of Carmel extended the due date for the loan until June 1, 2004; and
WHEREAS THE City of Carmel did not repay the 2003 Loan by June 1, 2004; and
WHEREAS, the City of Carmel wishes to replace the 2003 Loan with a new loan to be
repaid on or before January 30, 2006; and
WHEREAS, the loan does not exceed a sum in excess of fifty percent (50%) of the
amount estimated to be collected from anticipated taxes during the year of 2005.
NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of
Carmel, Indiana, as follows:
Section I. The City of Cannel, Indiana hereby replaces the 2003 Loan with a new loan in
the sum of $ 422,357.97 from its municipally-owned sewer utility.
Section II. Valid enactment of this Ordinance shall constitute evidence of the City of
Carmel, Indiana's obligation to repay the sum of $422,357.97 to its municipally-owed sewer
utility from taxes to be levied and collected during the current or subsequent year.
Section III. The City of Carmel, Indiana shall repay the sum of $422,357.97 it is
borrowing from its municipally-owned utility plus interest accrued annually from the date the
2003 Loan was initiated by January 30, 2006.
Section IV. The City of Carmel will pay interest on the sum borrowed from its
municipally owned utility at an annual rate of 3.5% provided that in no event shall the amount of
interest due exceed $52,000.
PASSED AND ADOPTED by the Common Council of the City of Carmel, this ~ /-k.. day
of~,~.cc¥~xl~;e\ ,2004, byavoteof r~ _ayesand ~ gays.
COMMON COUNCIL OF THE CITY OF . INDIANA
E. Carter
Mm:k Ra~'~rmann
ATTE~ . ,
Diana L. Cordray, IAMC, Clerk-Tr~surer
Presented to the Mayor of the City of Carmel this/~__~?&day of ~5 ct ~*-(,~ ~ , 2004, at ct gl t>.M.
Diana L. Cordray, IAMC, Clerk~asurer
Approved by me/.Mayor of the City of Carmel, Indiana, this ~, day of
2004, atCt 0.8 /~' .M.
rainard, Mayor
ATTE$~I':
Diana L. Cordray, Clerk-Tr~hrer of th
City of Carmel, Indiana
Prepared by:
INDS01 PJS 711057vl
p, Jason Stephenson
Barnes & Thomburg LLP
11 South Meridian Street
Indianapolis, Indiana 46204