HomeMy WebLinkAboutOrd.228.04-25-1985 /� j1 �
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?3ILL N0. 85-42 ORDINANCE NO. �-�1�� ;���
AN ORDINANCE APPROPRIATING FUNDS FROM THE
GENERAL FUND FOR PAYMENT OF A PORTION OF THE
INTEREST DUE ON THE GENERAL OBLIGATION
PUBLIC BUILDING BONDS SERIES 1984
WHEREAS, the City Coucil has passed Ordinance 190 which
authorized the issuance of $5, 000 , 000 General Obligation Public
Building Bonds , Series 1984 ; and
wHEREAS, the General Obligation Public Building Bonds ,
Series 1984 have been sold and the first interest payment on
the bonds is due on May 1, 1985 ; and
WHEREAS, Ordinance 190 has been declared unconstitutional ,
illegal and unenforceable by the Circuit Court of Cape
Girardeau County in the case of Cape Motor Lodge , Inc . , et al .
v. City of Cape Girardeau , et al . , Cause No . CV684-2116CC; and
WHEREAS, the City Council has previously authorized and
directed that an appeal be taken from the Circuit Court
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judgment ; and
WHEREAS, the judgment of the Court, as amended, allows the
City to use the interest earned on the proceeds of the bond
sale to make interest payments due the bondholders under
Ordinance 190 pending appeal and does not prohibit the City
from using money from the general fund for this purpose ; and
WHEREAS, the interest earned and paid on the proceeds of
the bond sale ($177, 673. 07) is insufficient to pay the total
interest payment due under Ordinance 190 ($258 , 630 . 00) ;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY
OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS:
SECTION 1 . The City Council hereby appropriates from the
general fund the sum of $80, 956 . 93 for the purpose of making
the first interest payment on the General Obligation Public
Building Bonds , Series 1984 , issued under authority of
Ordinance No . 190 .
SECTION 2. It is hereby found and declared that if the
City defaults on the interest payment due May 1, 1985 its
reputation in the national financial community will be rui►Zed
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�•�,, and its ability to issue bonds of any kind in the future will
be substantially impaired . It is further found and declared
that the appropriation of funds from the General Fund to avoid
defaulting on the bonds serves a valid public purpose in
preserving the financial reputation of the City of Cape
Girardeau , Missouri .
SECTION 3. It is hereby declared an emergency exists as
provided for in Section 3. 15 of the City Charter for the City
of Cape Girardeau , Missouri in that funds to make the bond
payment due on May l , 1985 must be received by the paying agent
no later than noon , April 26, 1985. It is hereby further found
and declared that an appropriation for payment of principal or
interest on the public debt is an emergency measure as provided
for in Section 3. 15(b ) of the City Charter for the City of Cape
Girardeau, Missouri .
SECTION 3. This ordinance shall be in full force and
effect from and after its passage and approval .
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PASSED AND APPROVED THIS ���\�-�<<'' DAY OF �� ! ,.i,�., , 1985 .
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Howard C. Tooke, Mayor
ATTEST
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Evelyn, G. LeGrand
Deputy City Clerk
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