TO: Dr. Steven Stephanoff FROM: Paul G. Gabriel DATE: SUBJECT: 2010 Indiana Bond Bank Documents For calendar year 2010 Center Grove will again participate in the Indiana Bond Bank Advance Funding Program for issuance of temporary loans in anticipation of property tax revenues. Since property taxes are normally distributed in June and December, cash flow deficits are typically experienced in April, May, October, and November. For 2010 we anticipate the need to borrow amounts in the following funds: Debt Service Fund $744,262 CPF $3,195,380 Pension Debt Service $526,935 Transportation Fund $954,197 Total $5,420,774 These amounts will be paid when property tax revenues are received. If 2010 tax revenues are delayed as they were in 2009, we will need to borrow additional money in the middle of 2010. You will note that there is no borrowing needed for the General Fund, since all General Fund revenue comes directly from the state. It is supposed to come in 12 equal payments. A Resolution and a Warrant Purchase Agreement have been prepared by Bingham McHale, the Bond Counsel for the Indiana Bond Bank. These documents are the first in a series of two sets of documents that will need to be signed by the Board to allow participation in the 2010 program. This Resolution sets the maximum amount that can be borrowed for each fund, which is the total property tax levy for the year for that fund. documents are in the same form as we have used in prior years. (The resolution is attached). The complete set has not been provided to Board members because they are rather lengthy. Evelyn has the originals if Board members have questions or would like to review them. Board action is needed at this time to approve the Resolution and Warrant Purchase Agreement and authorize the current President and Secretary of the Board to sign and execute these documents. In January 2010, there will be additional documents to be signed by the new Board officers. A history of amounts borrowed from the Indiana Bond Bank is shown in the following chart. A History of Bond Bank Borrowing
TO: Dr. Steven Stephanoff FROM: Paul G. Gabriel DATE: SUBJECT: 2010 Indiana Bond Bank Documents For calendar year 2010 Center Grove will again participate in the Indiana Bond Bank Advance Funding Program for issuance of temporary loans in anticipation of property tax revenues. Since property taxes are normally distributed in June and December, cash flow deficits are typically experienced in April, May, October, and November. For 2010 we anticipate the need to borrow amounts in the following funds: Debt Service Fund $744,262 CPF $3,195,380 Pension Debt Service $526,935 Transportation Fund $954,197 Total $5,420,774 These amounts will be paid when property tax revenues are received. If 2010 tax revenues are delayed as they were in 2009, we will need to borrow additional money in the middle of 2010. You will note that there is no borrowing needed for the General Fund, since all General Fund revenue comes directly from the state. It is supposed to come in 12 equal payments. A Resolution and a Warrant Purchase Agreement have been prepared by Bingham McHale, the Bond Counsel for the Indiana Bond Bank. These documents are the first in a series of two sets of documents that will need to be signed by the Board to allow participation in the 2010 program. This Resolution sets the maximum amount that can be borrowed for each fund, which is the total property tax levy for the year for that fund. documents are in the same form as we have used in prior years. (The resolution is attached). The complete set has not been provided to Board members because they are rather lengthy. Evelyn has the originals if Board members have questions or would like to review them. Board action is needed at this time to approve the Resolution and Warrant Purchase Agreement and authorize the current President and Secretary of the Board to sign and execute these documents. In January 2010, there will be additional documents to be signed by the new Board officers. A history of amounts borrowed from the Indiana Bond Bank is shown in the following chart. A History of Bond Bank Borrowing