ORDINANCE 2013-3 OF THE TOWN COUNCIL OF
AN ORDINANCE TO APPROVE A REFINANCING OF A PRIOR LOAN AND APPROVING A LOAN OF ADDITIONAL FUNDS TO FUND PUBLIC WORKS PROJECTS AND APPROPRIATING AND PLEDGING CEDIT DOLLARS FOR THE REPAYMENT OF SUCH LOAN
WHEREAS, the Town Council of the Town of Leo-Cedarville previously borrowed money from Grabill Bank for the purpose of completing certain road repairs and other public works projects; and
WHEREAS, the Town Council has determined that it is in the best interest of the Town to borrow additional funds needed to complete the Riverside Gardens Improvement Project;
WHEREAS, it is in the best financial interest of the Town to refinance the prior loan and borrow the additional funds as part of the new loan.
WHEREAS, I.C. 36-5-2-12 authorizes the Town to make a loan and issue a note for the purpose of refunding that loan in anticipation of revenues that are anticipated to be levied during the term of the note (not more than five (5) years); and
WHEREAS, the Town has negotiated with iAB Financial Bank (formerly Grabill Bank) regarding the terms of the new loan, which terms are agreeable to the Town Council; and
WHEREAS, the law requires that the ordinance authorizing the loan must appropriate and pledge to the payment of the loans a sufficient amount of the revenues in anticipation of which the loan is issued; and
WHEREAS, the law requires that the loan must be evidenced by a time warrant of the town.
NOW, THEREFORE, IT IS ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LEO-CEDARVILLE, ALLEN COUNTY, INDIANA:
1. The Town Executive is hereby authorized to enter into a loan with iAB Financial Bank under the following terms:
|a.||The principal of the loan shall be for no more than an amount sufficient to pay off the existing loan balance plus an additional Three Hundred and Thirty Thousand and no/100 Dollars ($330,000.00). (The total amount of the loan is estimated to be in the approximate amount of Seven Hundred Twenty Seven Thousand, Two Hundred Seventy Two and 47/100 Dollars ($727,272.47)).|
|b.||The term of the loan shall be for no more than five (5) years and repayable no more frequently than sixty (60) monthly installments.|
|c.||The loan documents shall specify that the loan is to be repaid out of the Town’s County Economic Development Income Tax Fund (“CEDIT”) over the next five (5) years.|
|d.||The interest rate shall be no greater than 2.7%.|
|e.||The loan documents shall specify that the principal loan balance and accrued interest may be repaid prior to the date of maturity of the note without penalty.|
|f.||The loan shall be evidenced by a Tax Warrant on a form approved by the Indiana State Board of Accounts and/or the Town Attorney.|
2. The Town Clerk-Treasurer is instructed to hold the loan proceeds in a fund called the Construction Fund for the Riverside Gardens Improvement Project, which shall be used only for payment of public works projects appropriate for payment out of the Town’s CEDIT funds related to the Riverside Gardens Improvement Project.
3. The Town Council hereby appropriates and pledges a sufficient amount of the Town’s CEDIT revenues for the repayment of the loan with interest over the next five yeas.
4. This Ordinance shall replace and repeal any prior ordinance inconsistent with its terms.
Passed and adopted by the Town Council of the Town of Leo-Cedarville, Indiana on this 25th day of June , 2013.
FOR THE TOWN OF LEO-CEDARVILLE:
| John Clendenen
R. Paul Steffens
|Attestation of Clerk-Treasurer|
I, John Eastes , the Clerk-Treasurer for the Town of Leo-Cedarville, Indiana, hereby attest that the ordinance set forth above was adopted by the legislative body of the Town of Leo-Cedarville on June 25, 2013 and signed by the Executive for the Town of Leo-Cedarville, and properly executed in my presence on June 25, 2013 .