Common Council

City of Portage Common Council Special Meeting December 21, 2021 The Common Council of the City of Portage met on Tuesday, December 21, 2021 at 6:30 p.m. at Woodland Park, Sycamore Hall, 2100 Willowcreek Road, Portage, Indiana. Mayor Lynch called the meeting to called to order with the Pledge of Allegiance at 6:30 PM. Members present were Councilpersons Ferdinand Alvarez, Debbie Podgorski, Gina Giese-Hurst, Pat Clem, Scott Williams, Brian Gulley, Collin Czilli, and Mayor Sue Lynch. Also present was Clerk-Treasurer Nina Rivas and Attorney Dan Whitten. Mayor Lynch asked for a moment of silence to remember City employee Courtney Castle. A Celebration of Life will be held December 29th at Woodland Park, Sycamore Room from 4-7pm. New Business ARP Fund – Additional Appropriation ARP Fund ARP Fund 176-000-420 Personal Services $500,000.00 ARP Fund 176-000-420 Supplies $50,000.00 ARP Fund 176-000-430 Other Services & Charges $25,869.98 ARP Fund 176-000-440 Capital Outlay $980,000.0 $1,555,869.98 Taxpayers appearing at such meeting shall have a right to be heard thereon. The additional appropriations as finally made will be referred to the Department of Local Government Finance (DLGF). Where applicable, the DLGF will make a written determination as to the sufficiency of funds to support the appropriations made within fifteen (15) days of receipt of a Certified Copy of the action taken. Notice is hereby given the taxpayers of the City of Portage, Porter County, Indiana that the proper legal officers will meet at Woodland Park, Sycamore Hall, 2100 Willowcreek Road, Portage, Indiana 46368 on December 7, 2021 at 6:30 p.m. to consider the following additional appropriations in excess of the budget for the current year: Collin Czilli Common Council President Published December – 2021 Councilperson Czilli, I wanted to give context as to why we’re doing this again. This COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 2 originally scheduled for the December 7th and we have since learned that there is no indication that this was noticed, so upon Attorney Whitten’s recommendation we need to redo this public hearing. Nina, we asked at the meeting if this was noticed and you had said that yes, it was noticed. The papers have no record of it. Clerk-Treasurer Rivas, I sent them the email. Why they do not have it, I have no idea. Do you really wanted to get into this? Councilperson Czilli, We asked for that email and that you didn’t provide it. Clerk-Treasurer Rivas, You did not ask me for the email… Councilperson Czilli, We asked for the email. Clerk-Treasurer Rivas, I do not work for you… Councilperson Czilli, You worked for us when you’re the secretary of the council. Clerk-Treasurer Rivas, Sure – not that way. You’re not going to berate me like this. Councilperson Czilli, I’m just asking a question. You were asked at the meeting if it had been noticed and you said yes. There was no indication and we’ve asked for documentation of this, the papers have no record of this… Attorney Whitten, So if I could just jump – so, has indicated that she emailed it to the papers, I mean, I think that’s as far – Councilperson Czilli, We’ve asked for proof of that. Clerk-Treasurer Rivas, I shouldn’t have to, it’s ridiculous. Councilperson Czilli, We need to ensure with federal dollars that this is done correctly. Clerk-Treasurer Rivas, No kidding, it a good thing you checked. I would have questioned it when I never received an invoice for the claim. Councilperson Czilli, There is no record of the email coming through. Clerk-Treasurer Rivas, I don’t know what to tell you. Councilperson Czilli, When I noticed this meeting, I immediately received a confirmation email. Clerk-Treasurer Rivas, Great, that’s wonderful you have time to keep track of that… Councilperson Czilli, It showed up as soon as I sent the email. I hit send and it showed COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 3 up in my inbox. My question is, why after we’ve asked you to provide confirmation that this meeting was noticed on December 7th, was it not provided to us? It was a public hearing that should have been noticed. Clerk-Treasurer Rivas, No kidding, and I told you I sent the damn email – enough is enough. I’m not a child, ok. Councilperson Czilli, Well, we’ve asked for proof of that and it wasn’t provided. Mayor Lynch, (gavel) Ok, we’ve, uh, it’s duly noted guys. Attorney Whitten, So Madam Chairman, I would suggest that you firmly open the public hearing on the ARP additional appropriation. Public Hearing Mayor Lynch, I’d like to open the public hearing on the ARP Fund. Is anyone here to speak for, is anyone here to speak for the additional appropriation. Is anyone here to speak for, is anyone here to speak for the additional appropriation. Is anyone here to speak for, is anyone here to speak against the additional appropriation. Is anyone here to speak for, is anyone here to speak against the additional appropriation. Is anyone here to speak for, is anyone here to speak against the additional appropriation. If not, the public hearing is closed. Councilperson Czilli, Alright, I will – Dan, do we need to read this now, or… Councilperson Podgorski, Again. Attorney Whitten, So - what’s your question? I’m sorry. Councilperson Czilli, We passed the resolution already, do we need to re-vote on that? Attorney Whitten, We certainly do. Councilperson Czilli, Okay. So, Debbie can you go and… Councilperson Podgorski, So we need to re-read? Councilperson Czilli, Yes. Attorney Whitten, You could do it by title only. Councilperson Czilli, It’s been read into the record so we’re good? Attorney Whitten, Yeah. Councilperson Czilli, Ok. Councilperson Podgorski, So this is the additional appropriation Resolution 21-20. Let COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 4 the record reflect, this has been read already in its entirety. Councilperson Williams, Motion to adopt. Councilperson Czilli, Second. Mayor Lynch, We have a motion and a second to adopt. Is there any discussion. If not, Nina please call the roll. Motion carried on the following roll call vote: Councilperson Alvarez – Yes Councilperson Podgorski – Yes Councilperson Giese-Hurst – Yes Councilperson Clem – Yes Councilperson Williams – Yes Councilperson Gulley – Yes Councilperson Czilli – Yes RES #21-20 7-0 Introduction of Ordinances Mayor Lynch, Ok, we have the introduction of ordinances – Salary Ordinance Amendment 2021. First Reading Ordinance #20-14, 2021 Salary Ordinance Amendment Councilperson Czilli, Ok, I will go ahead and take that. ORDINANCE 20-14 AN ORDINANCE AMENDING THE 2021 SALARY ORDINANCE BE IT, AND IT HEREBY IS ORDAINED, by the Common Council of the City of Portage, Indiana (”hereafter the Council”) as follows: WHEREAS, the Common Council passed Resolution 21-17 in September 2021 and adopted the State and Local Fiscal Recovery Fund Plan in November 2021 and; COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 5 WHEREAS, the Mayor of Portage has deemed employees of the City of Portage “essential” as defined in the American Rescue Plan. SECTION ONE. That the 2021 Salary Ordinance shall be amended to include the following new section: Section 4. 2021 COVID Essential Worker Hazard Pay All employees of the City of Portage actively employed on September 7, 2021 shall be entitled to hazard pay as part of the American Rescue Act. All full-time employees shall receive hazard pay equal to $1,000 gross. All part-time employees shall receive an amount equal to their full- time equivalency prorated from a maximum of $1,000 gross. This hazard pay shall be included in addition to the employees 2021 salary listed in Section 1 of this ordinance for their total salary in 2021. SECTION 2. Conflicting Ordinances. Any Ordinance or provision of any Ordinance of the City of Portage in conflict with this Ordinance is hereby repealed. SECTION 3. Severability. The invalidity of any section, clause, sentence or provision of this Ordinance shall not affect the validity of any other part of this Ordinance which can be given effect without such invalid part or parts. SECTION 4. Effective Date. This Ordinance shall be in full force and effect from and after its passage and approval by the Mayor of the City of Portage and publication as required by law. PASSED AND ADOPTED by the Common Council of the City of Portage, Porter County, Indiana on the _____ day of _________ 2021. ____________________________ Presiding Officer ATTEST: __________________________ Nina Rivas, Clerk Treasurer Presented by me to the Mayor of the City of Portage, Porter County, Indiana, this ______ day of ____________, 2021. COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 6 ____________________________________ Nina L. Rivas Clerk-Treasurer Approved by me, the Mayor of the City of Portage, Porter County, Indiana, this ______ day of _____________, 2021. ____________________________________ Sue I. Lynch, Mayor Councilperson Czilli, Motion to suspend. Councilperson Williams, Second. Mayor Lynch, We have a motion and a second to suspend. All in favor signify by saying aye. Motion carried on voice vote. Councilperson Czilli, Motion to adopt. Councilperson Williams, Second. Mayor Lynch, We have a motion and a second to adopt. Is there any further discussion? Councilperson Podgorski, I just have one question. So, because this is reflected of the 2021 Salary Ordinance, once we pass this, will that hazard pay be paid out within the 2021 year… Clerk-Treasurer Rivas, Yeah, it will be paid on the 31st… Councilperson Podgorski, So we don’t have to do it again for 2022 – ok, very good. Councilperson Clem, So I have a question… Councilperson Giese-Hurst, Thank you. Councilperson Clem, You said Salary Ordinance. So, is this going to be a separate check? Clerk-Treasurer Rivas, Yes. Councilperson Clem, And, is this going to be considered a bonus salary which is a different taxation or is this going to be under regular wages reduction? COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 7 Clerk-Treasurer Rivas, It has to be… Councilperson Czilli, Yeah, it’s I think $13 an hour is the maximum we can do on top of their pay. So, it’s considered wages under the law. Councilperson Clem, Okay, that’s what it reads under the act? Councilperson Czilli, Yep. Councilperson Clem, Okay. Clerk-Treasurer Rivas, So then we’ll have a pay – a separate pay register, payroll register and summary for the ARP Fund, so it’s good for state board. Councilperson Clem, Fantastic. Thank you, that’s my question. Mayor Lynch, Okay, we have a motion and a second. Is there any further discussion? If not, all in favor signify by saying aye. Motion carried on voice vote. ORD #20-14 7-0 Ordinance #21-25, Authorizing IBB Tax Anticipation Warrants Mayor Lynch, The 2022 Indiana Bond Bank Advance Funding Ordinance. Councilperson Czilli, Yes, Scott – could you take that for us? Councilperson Williams, Sure. Indiana Bond Bank’s 2022 Advance Funding Program ORDINANCE 21-25 AN ORDINANCE authorizing the City of Portage, Indiana, to make temporary loans to meet current running expenses for the use of the General Fund, Insurance Fund, Motor Vehicle Highway Fund, and Parks & Recreation Fund of the Issuer, in anticipation of and not in excess of current taxes levied in the year 2021, and collectable in the year 2022; authorizing the issuance of temporary loan tax anticipation warrants to evidence such loans and the sale of such warrants to the Indiana Bond Bank; and appropriating and pledging the taxes to be received in such funds to the punctual payment of such warrants including the interest thereon. COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 8 WHEREAS, the Common Council (the “Fiscal Body”) of the City of Portage, Indiana (the “Issuer”), has determined that there will be an insufficient amount of money in the General Fund, Insurance Fund, Motor Vehicle Highway Fund, and Parks & Recreation Fund of the Issuer (the “Fund(s)”) to meet the current running expenses of the Issuer payable from such Funds during COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 7 the fiscal year ending on the last day of December 2022, and prior to the respective June 2022 (that is, the first) and December 2022 (that is, the second and final) settlements and distribution of taxes levied for such Funds; and WHEREAS, the Fiscal Body now finds that an emergency exists for the borrowing of money to pay current running expenses and that temporary loans for the Funds for such purposes should be made and that temporary loan tax anticipation warrants evidencing such loans should be issued and sold, subject to the terms and conditions set forth herein and in accordance with the provisions of Indiana law; and WHEREAS, the Fiscal Body has determined to participate in the 2022 Advance Funding Program (the “Program”) established by the Indiana Bond Bank (the “Bond Bank”) whereby the Bond Bank will purchase the temporary loan tax anticipation warrants and/or temporary interim warrants of the Issuer; and WHEREAS, in order to participate in the Program, the Fiscal Body may be required to issue and sell its temporary loan tax anticipation warrants to the Bond Bank prior to the final certification of the annual budget levy and tax rates for such Funds for fiscal year 2022 by the Indiana Department of Local Government Finance; and WHEREAS, the levy proposed for collection for the Funds in 2022 is estimated to produce in the aggregate, with respect to such Funds, an amount equal to or in excess of the principal of and interest on the temporary loans for such Funds; and WHEREAS, a necessity exists for the making of temporary loans evidenced by temporary loan tax anticipation warrants for the Funds in anticipation of the receipt of current tax revenues for such Funds levied for the year 2021 and in the course of collection in 2022 and the Fiscal Body desires to authorize the making of temporary loans to procure the amounts necessary, in combination with other available amounts, to meet such current running expenses for such Funds and to pay necessary costs incurred in connection with the issuance and sale of temporary loan tax anticipation warrants to evidence such temporary loans; and WHEREAS, unless otherwise disclosed in writing to the Bond Bank, the Issuer has not previously issued temporary loan tax anticipation warrants payable from 2022 tax revenue with respect to the Funds; and WHEREAS, the Fiscal Body desires to authorize the payment of interest on the temporary loan tax anticipation warrants from the Debt Service Fund of the Issuer as herein provided; and COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 9 WHEREAS, the Fiscal Body seeks to authorize the issuance of such temporary loan tax anticipation warrants and/or temporary interim warrants with respect to the Funds and the sale of such warrants to the Bond Bank pursuant to the provisions of Indiana Code 5-1.5, subject to and dependent upon the terms and conditions hereinafter set forth. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF PORTAGE, INDIANA, AS FOLLOWS: Section 1. It is hereby found and declared that an emergency exists for the borrowing of money and therefore the Issuer is hereby authorized to make temporary loans to meet current running expenses for the use and benefit of each of the Funds of the Issuer in anticipation of estimated current tax revenues levied for the year 2021 and in the course of collection for such Funds in 2022, which loans shall be evidenced by temporary loan tax anticipation warrants of the Issuer (the “Warrant(s)”) issued pursuant to the provisions of Indiana Code 36-4-6-20 as in effect on the date of their respective issuance. A separate Warrant or Warrants shall be issued for each Fund and each maturity date and all Warrants shall be dated as of the date of delivery thereof to the Bond Bank. Subject to the provisions of Indiana Code 36-4-6-20 as in effect on the date of their respective issuance, the Issuer is authorized to issue Warrants maturing and payable on or before December 30, 2022, in aggregate amounts not to exceed the following for the respective identified funds: General Fund: $15,796,673; Insurance Fund: $250,000; Motor Vehicle Highway Fund: $2,100,000; and Parks & Recreation Fund: $1,011,000. The Warrants shall bear interest prior to maturity at a rate or rates per annum not to exceed a maximum of four and one-half percent (4.5%). The exact rate or rates are to be determined under the terms of a warrant purchase agreement between the Bond Bank and the Issuer to be entered into prior to the sale of the Warrants to the Bond Bank (together with any supplements thereto, referred to as the “Warrant Purchase Agreement”), in accordance with the provisions of Indiana Code 5-1.5. Interest shall be calculated on the basis of a 360-day year comprised of twelve 30-day months. Interest on the Warrants may be payable from the Issuer’s Debt Service Fund up to an amount not exceeding $797,438.14. Notwithstanding any provision in this Ordinance (or in the Warrant Purchase Agreement available to the Issuer as of the date of the adoption of this Ordinance and incorporated by reference into this Ordinance), conforming changes may be made by the Issuer’s officers to the form of any Warrant and the Warrant Purchase Agreement prior to the issuance of Warrants to provide the due date of the Warrants, which may be June 30, 2022, December 30, 2022, or a COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE10 date fixed by reference to the Issuer’s receipt of its settlement of the funds in anticipation of which any Warrant is issued, or any combination thereof. The Issuer is authorized to make payments of principal of and interest on the Warrants by paying the amount due from funds that are available for immediate transfer or investment on or before 12:00 noon (Indianapolis time) on the due date to Bank of New York Mellon (or if Bank of New York Mellon is not selected or determined by the Bond Bank at the time of the issuance of the Indiana Bond Bank Advance Funding Program Notes, Series 2022, to serve as the Trustee, then to such other corporate trustee as may be specified as the Trustee in the Note Indenture), the Bond Bank’s Trustee (the “Trustee”) under the Note Indenture to be dated as of or about January 1, 2022. Subject to Section 11 hereof, the Warrants may not be prepaid prior to the Due Date (as defined in the Warrant Purchase Agreement and in each Warrant) without the express COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 9 written consent of the Bond Bank. In the event that the principal of and interest on the Warrants are not paid in full on the Due Date, the total amount due and owing on such Due Date (equal to the unpaid principal and accrued interest thereon to such Due Date) shall thereafter bear interest at the per annum rate equal to the Reinvestment Rate (as defined in the Warrant Purchase Agreement) until paid. In addition, the Issuer shall be responsible for payment to the Bond Bank of its allocable portion of all fees and expenses attributable to a request for payment under the Credit Facility Agreement (as defined in the Warrant Purchase Agreement) resulting from a failure by the Issuer to pay in full the principal of and interest on the Warrants on their Due Date. With the force and effect provided for in Indiana Code 5-1-5-9 and -10, the Qualified Entity (as defined in the Warrant Purchase Agreement) hereby irrevocably pledges and appropriates the proceeds of the Warrants, or other legally available monies as are required to provide for the payment of all outstanding warrants (including interest thereon) (including any temporary interim warrants issued pursuant to this Ordinance) with any maturity date on or before December 30, 2022, related to any Fund against which a Warrant is issued pursuant to this Ordinance, and covenants to so apply the proceeds thereof, on and as of the date of issuance of the Warrants, to their payment unless the Bond Bank has consented in writing to such warrants remaining outstanding after the issuance of the Warrants. Only with the written consent of the Bond Bank may the Qualified Entity (as defined in the Warrant Purchase Agreement) hereafter issue warrants on a parity with those Warrants to be issued pursuant to this Ordinance. Section 2. With respect to each Fund and each maturity, the officers of the Issuer are authorized to deliver a principal amount of the Warrants up to or less than the maximum amount established for any such Fund and maturity date in Section 1 hereof in order to comply with all applicable laws and any requirements of the Bond Bank. The Warrants will be delivered on or about January 27, 2022, or otherwise as appropriate and in accordance with the terms of the Warrant Purchase Agreement. In the event that the Issuer anticipates incurring cash flow deficits after the issuance and sale of the Warrants to the Bond Bank, the Issuer is hereby authorized to issue and sell additional warrants to the Bond Bank as appropriate and in accordance with the terms of the Warrant Purchase Agreement (as supplemented from time to time) and consistent with the two (2) preceding sentences. COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 11 In the event that the Issuer anticipates incurring cash flow deficits prior to the issuance and sale of the Warrants to the Bond Bank, the Issuer is hereby authorized to issue and sell temporary interim warrants to the Bond Bank. The issuance and sale of the temporary interim warrants shall be on substantially the same terms as the issuance and sale of the Warrants to the Bond Bank, all as set forth in the Warrant Purchase Agreement. In the event that temporary interim warrants are issued, all or a portion of the proceeds of the Warrants may be used to repay the temporary interim warrants. Provisions of this Ordinance relating to the issuance of Warrants shall also relate to the issuance of temporary interim warrants to the extent applicable. The aggregate amount of any such temporary interim warrants shall not count against the amount limitation recited in Section 1 hereof and applicable to the Warrants. Section 3. The principal of and interest on the Warrants shall be payable from tax revenues to be received in the respective Fund upon which such Warrant is issued. Interest on the Warrants may also be payable from amounts, if any, available for that purpose in the Debt Service Fund up to an amount not exceeding $797,438.14. There is hereby appropriated and pledged to the COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 10 payment of the Warrants issued with respect to each Fund, including interest and all necessary costs incurred in connection with the issuance and sale of the Warrants, a sufficient amount of the taxes, levied for 2021, and payable in 2022, for such Fund and in anticipation of which the Warrants are issued, for the punctual payment of the principal of and interest on the Warrants evidencing such temporary loans, together with such issuance costs, if any; provided, that the Issuer reserves the right to pay interest on any Warrant from amounts, if any, available for that purpose in the Debt Service Fund up to an amount not exceeding $797,438.14. The principal amount of all Warrants maturing on any date shall be based on the 2022 annual budget levy for the Fund as estimated or certified by the Indiana Department of Local Government Finance in anticipation of which the Warrants are issued. For purposes of this Ordinance, fifty percent (50%) of the annual budget levy shall be deemed to equal the amount of taxes estimated by the County Auditor to be collected for and distributed to such Fund at each of the June 2022 (that is, the first) and December 2022 (that is, the second and final) settlement and distribution of such revenues. Section 4. The Warrants issued hereunder with respect to the Funds shall be executed in the name of the Issuer by the manual or facsimile signature of the Mayor of the City of Portage, Indiana, and attested by the Clerk-Treasurer of the City of Portage, Indiana, or such other officers of the Issuer as may be permitted by law, provided at least one (1) of such signatures is manually affixed. In case any officer whose signature or facsimile signature appears on the Warrants shall cease to be such officer before the delivery of the Warrants, the signature of such officer shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. All Warrants shall be payable in lawful money of the United States of America at the principal corporate trust office of the Trustee. Further, the Warrants shall not be delivered and no payment shall be made therefor prior to the first day of January 2022. Section 5. The Warrants with respect to each Fund shall be issued in substantially the following form (with all blanks, changes, additions and deletions, including the appropriate COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 12 amounts, dates and other information to be properly completed prior to the execution and delivery thereof, with bracketed language set out below recognized to be alternative language depending upon any circumstances that vary due the applicable maturity, fund, or other similar facts, all as conclusively evidenced by the signatures of the officers of the Issuer affixed thereon): [Form of Warrant] UNITED STATES OF AMERICA STATE OF INDIANA COUNTY OF PORTER CITY OF PORTAGE, INDIANA TEMPORARY LOAN TAX ANTICIPATION WARRANT Warrant Fund: Fund Dated Date: , 2022 Due Date: [June 30, 2022, provided that, if the First Semi-Annual Settlement occurs after June 30, 2022, then on the First Settlement Payment Due Date (as defined in the below referenced Agreement)][December 30, 2022] Principal Sum: $ Interest Rate: ___ percent per annum FOR VALUE RECEIVED, on or before the Due Date set forth above (the “Due Date”), the City of Portage, Indiana (the “Issuer”), shall pay to the Indiana Bond Bank (the “Bond Bank”) the Principal Sum set forth above pursuant to a certain Warrant Purchase Agreement between the Bond Bank and the Issuer, dated as of December 1, 2021 (the “Agreement”). [This Warrant is issued in anticipation of the First Semi-Annual Settlement (as defined in the Agreement).] In addition, the Issuer on the Due Date hereof shall pay to the Bond Bank interest at the per annum Interest Rate set forth above pursuant to the Agreement, with such interest to be computed on the basis of a 360-day year comprised of twelve 30-day months. In the event that the principal of and interest on this Warrant are not paid in full to the Bond Bank at the principal corporate trust office of the Trustee (as defined in the Agreement) in immediately available funds on or before 12:00 noon (Indianapolis time) on the Due Date, the total amount due and owing on the Due Date (the unpaid principal and accrued interest to the Due Date) shall thereafter bear interest at the per annum rate equal to the Reinvestment Rate (as defined in the Agreement) until paid. In addition, the Issuer shall pay to the Bond Bank its allocable portion of all fees and expenses attributable to a request for payment under the Credit Facility Agreement (as defined in the Agreement) resulting from a failure by the Issuer to pay in full the principal of and interest on this Warrant on the Due Date. All payments of principal and interest to be made by the Issuer to the Bond Bank shall be made by paying the amount due in funds that are available for immediate transfer or investment COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 13 on or before 12:00 noon (Indianapolis time) on the Due Date to the Trustee in Indianapolis, Indiana (or to such other place of payment as may be specified in notice given by the Trustee or Bond Bank). This Warrant may not be prepaid prior to the Due Date except as permitted by the Agreement. This Warrant evidences a temporary loan to provide funds to meet current expenses of the Warrant Fund set forth above (the “Fund”) and has been authorized by an ordinance adopted and approved by the Common Council of the City of Portage, Indiana, in accordance with Indiana Code 36-4-6-20 and all other acts amendatory thereof or supplemental thereto. This Warrant is issued in anticipation of the tax levy which has been made for the Fund in the year 2021, which tax levy is now in the course of collection. There has been irrevocably appropriated and pledged to the payment in full of the principal of and interest on this Warrant a sufficient amount of the revenues to be derived from the Fund tax levy. The principal amount of all Warrants maturing on the Due Date and payable from the Fund does not exceed forty percent (40%) of the 2022 annual budget levy for the Fund as estimated or certified by the Indiana Department of Local Government Finance. It is further hereby certified, recited, and declared that all acts, conditions, and things required by law precedent to the issuance and execution of this Warrant have been properly done, have happened, and have been performed in the manner required by the constitution and statutes of the State of Indiana relating thereto; that the Fund tax levy from which (together with other COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 12 amounts in the Fund) this Warrant is payable is a valid and legal levy; and that the Issuer will reserve a sufficient amount of the proceeds of the Fund tax levy currently in the course of collection for the timely payment of the principal of and interest on this Warrant in accordance with its terms. IN WITNESS WHEREOF, the City of Portage, Indiana, has caused this Warrant to be executed in its corporate name by the Mayor of the City of Portage, Indiana, and attested by the Clerk-Treasurer of the City of Portage, Indiana, all as of the Dated Date set forth above. CITY OF PORTAGE, INDIANA By: Its Mayor ATTEST: Its Clerk-Treasurer COUNCIL MEETING DECEMER 21, 2021 PAGE 14 [End of Form of Warrant] Section 6. The fiscal officer of the Issuer (the “Fiscal Officer”) is hereby authorized and directed to have the Warrants prepared, and each of the executive officers of the Issuer, or such other officers as may be permitted by law, are hereby authorized and directed to execute the Warrants in the manner and substantially the form provided in this Ordinance, as conclusively evidenced by their execution thereof. Section 7. The Fiscal Officer, on behalf of the Issuer, is authorized to sell to the Bond Bank the Warrants. The Warrant Purchase Agreement shall set forth the definitive terms and conditions for such sale. Warrants sold to the Bond Bank shall be accompanied by all documentation required by the Bond Bank pursuant to the provisions of Indiana Code 5-1.5 and the Warrant Purchase Agreement, including without limitation, an approving opinion of Bose McKinney & Evans LLP, specially designated qualified obligation bond counsel for the Warrants under the terms set forth in such firm’s letter to the Issuer; certification and guarantee of signatures (or if permitted by the Bond Bank, such other evidence of the authenticity of signatures); and certification as to no litigation pending as of the date of delivery of the Warrants to the Bond Bank challenging the validity or issuance of the Warrants. The entry by the Issuer into the Warrant Purchase Agreement and the execution of the Warrant Purchase Agreement, on behalf of the Issuer by any of the executive officers of the Issuer, or such other officers as may be permitted by law, in accordance with this Ordinance, are hereby authorized and approved. In case any officer whose signature or facsimile signature appears on the Warrant Purchase Agreement shall cease to be such officer before the delivery of the Warrants, the signature of such officer shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 13 Section 8. The proper officers of the Issuer are hereby authorized to deliver the Warrants to the Bond Bank, upon receipt from the Bond Bank of the payment or otherwise as appropriate and in accordance with the terms of the Warrant Purchase Agreement. Section 9. Each of the executive officers of the Issuer (including, without limitation, any Authorized Official as defined in the Warrant Purchase Agreement), or such other officers as may be permitted by law are hereby authorized and directed to make such filings and requests, deliver such certifications, execute and deliver such documents and instruments, and otherwise take such actions as are necessary or appropriate to carry out the terms and conditions of this Ordinance and the actions authorized hereby and thereby. In case any officer whose signature or facsimile signature appears on any documents or certificates executed pursuant to this Section 9 shall cease to be such officer before the delivery of the Warrants, the signature of such officer shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 10. The Issuer hereby covenants that the Issuer and its officers shall not take any action or fail to take any action with respect to the proceeds of any of the Warrants or any investment earnings thereon which would result in constituting any of the Warrants as “arbitrage bonds” under the Internal COUNCIL MEETING DECEMER 21, 2021 PAGE 15 Revenue Code of 1986, as amended, and any and all final or proposed regulations or rulings applicable thereto, or which would otherwise cause the interest on any of the Warrants to cease to be excludable from gross income for purposes of federal income taxation; and the Fiscal Officer and all other appropriate officers are hereby authorized and directed to take any and all COMMON actions and to make and deliver any and all reports, filings, and certifications as may be necessary or appropriate to evidence, establish, or ensure such continuing exclusion of the interest on the Warrants. Section 11. Notwithstanding any other provision of this Ordinance to the contrary, the Issuer may prepay all or a portion of the principal of and interest on the Warrants in the manner and at the times set forth in the Warrants and Section 3.6 of the Warrant Purchase Agreement. Notwithstanding any other provision of this Ordinance or any Warrant, in the event any determination has been made by any court of proper jurisdiction whereby a finding or ruling is made to the effect that, absent application of this provision, the aggregate amount of any Warrant (whether as to its principal or interest amounts or both) exceeds the maximum amount that is permitted by law to be issued and outstanding for the maturity date stated therein (such excess over any such limitation referred to as the “Excess Amount”) and such would otherwise cause a Warrant to be invalid, then the form of the Warrant that was issued shall be deemed to be modified from that stated on its face in such a manner to first deem the Excess Amount to be a separate additional Warrant identical in terms to the original except that it shall have as its “due date” June 30, 2022, and its “principal sum” an amount equal to the maximum remaining permitted amount for all warrants with such a due date (a “Replacement Warrant”), provided, however, if an Excess Amount exceeds the principal amount of such a Replacement Warrant, such remaining balance should be treated as a fee charged by the Bond Bank pursuant to Section 5.10 of its Warrant Purchase Agreement with the Qualified Entity and not treated as part of the principal sum of any Warrant or Replacement Warrant. Section 12. This Ordinance shall be in full force and effect from and after the time it has been adopted and approved by the Fiscal Body. All resolutions and ordinances in conflict herewith are, to the extent of such conflict, hereby repealed. For the benefit of the Bond Bank, the Fiscal Body hereby finds and determines that the adoption and approval of this Ordinance is intended to be, and for all purposes shall be deemed to be, an ordinance authorizing the sale of obligations within the meaning of Indiana Code 36-4-6-20(c), and accordingly no action to contest the validity of any Warrants authorized herein, and hereafter issued, may be brought more than fifteen (15) days after the date set forth below. [Remainder of Page Left Intentionally Blank] COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 16 ADOPTED AND APPROVED BY the Common Council of the City of Portage, Indiana, this _____ day of ____________, 2021. Presiding Officer Common Council ATTEST: Clerk-Treasurer PRESENTED BY ME, the undersigned Clerk-Treasurer of the City of Portage, Indiana, to the Mayor, for approval and signature, this ______ day of ______________, 2021. Clerk-Treasurer City of Portage, Indiana APPROVED AND SIGNED BY ME, the undersigned Mayor of the City of Portage, Indiana, this ______ day of ______________, 2021. Mayor City of Portage, Indiana Councilperson Williams, Let the records reflect this ordinance has been read in its entirety. Councilperson Czilli, Motion to suspend. Councilperson Williams, Second. Mayor Lynch, We have a motion and a second to suspend. All in favor signify by saying aye. Motion carried on voice vote. 7-0 COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 17 Reception of Petitions, Remonstrances and Public Input Mayor Lynch, We have petitions, remonstrance, and public input. James, would you like to say anything? (laughter) Mayor Lynch, Is there any other matters to come before this Council? If not, I will entertain a motion to adjourn. Clerk-Treasurer Rivas I have a transfer resolution that I was able to get compiled today to clean up November appropriations. I will tell you that originally – because of the 27-pay issue, the original thought was to process the hourly payroll on the 31st, like – like normal. However, the budgets don’t have the funds – they don’t have the appropriations or the funds to make it until January. So that payroll will post on the 1st along with the salary employees that – in order to offset any financial hardship or problems with any staff, the ARP Premium paid – that’s why that will post on the 31st because that is when the normal paycheck would have hit. And the rest of December’s will have to get cleaned up at the January meeting. Because we just had payroll Friday. And, after posting it…it’s terrible. I – I said we didn’t have the funds when we – when you adopted those contracts, but no one listened. Councilperson Podgorski, So I – I, I just have one quick question on things. You brought up th the 27 pay. Did the staff get notified? Clerk-Treasurer Rivas, No. They will. They will now. I wanted to let you guys know first. Councilperson Podgorski, Which you sent an email out, that was what, a few weeks ago about it… Clerk-Treasurer Rivas, Right. And then after I’m doing – cleaning up the appropriations, I’m like, my God. There’s no way I - we can’t. We can’t do a payroll on the 31st for the hourly. Councilperson Podgorski, Okay, but… Clerk-Treasurer Rivas, It has to be posted on the 1st when we have new appropriations. Councilperson Podgorski, I understand the – the logistics. But, don’t you think it would have been a good idea, beings we were talking about this for months, to at least let them know if was coming, as opposed to here it is the 21st? Clerk Treasurer Rivas, Yes… in a perfect world. There’s been a lot of thought in to it and different scenarios. Collin, I know you want and championed for the 15th and last day or 1st and 15th. That doesn’t work for hourly employees. I mean… Councilperson Czilli, This has nothing to do with.. Clerk-Treasurer Rivas, Yes, that’s what I’m saying. Different – different scenarios have played out. We met with the new payroll vendor; it was discussed with them. We thought of different scenarios that would work best… Councilperson Czilli, But we’ve known for a while there was a 27 pay. Clerk-Treasurer Rivas, I have once person in my office that does payroll and everything else for the entire city. COMMON COUNCIL MEETING DECEMBER 21, 2021 PAGE 18 Clerk-Treasurer Rivas, That’s kinda high… Councilperson Czilli, Secondly – okay. Secondly, the pay is going to post on January 3rd. The 1 is a holiday, the 2nd is a Sunday. People are expecting a paycheck. st Clerk-Treasurer Rivas, There is nothing else I can do. Councilperson Czilli, I understand that Nina. But we’ve known about this since October. We had a conversation at a budget hearing… Clerk-Treasurer Rivas, Do you really think it would have made a difference? Councilperson Czilli, Yes. Mayor Lynch, (gavel) One person at a time speaking. Councilperson Czilli, Nina – we knew this was coming and staff need to be informed. Clerk-Treasurer Rivas, I’m pretty sure staff knows. Councilperson Czilli, Okay, Nina – not all staff knows, for one. We have the responsibility to notify them that this was happening. We cannot just move their pay without telling them. It is now nine days from when this will happen – Nina, please let me finish. They are expecting a paycheck on December 31st. People have loans that come out of paychecks, they have made payroll deposits to their deferred compensation… Clerk-Treasurer Rivas, Okay, Collin - Collin, I’m not… Councilperson Czilli, Nina – let me finish. They have payroll deposits that need to be changed, they have deferred comp, they have payments that they may be making on December 31st and expecting a paycheck. Clerk-Treasurer Rivas, Where do you think the deferred comp comes from? Councilperson Czilli, Nina – they may have adjusted their deferred comp earlier in February because this is a 27 paycheck year, which will result in them over contributing or under contributing. There are a variety of issues with not informing staff in an adequate amount of time. What if they have a mortgage that gets paid on December 31st. What if their mortgage comes out? They are expecting a payroll on December 31st. Clerk-Treasurer Rivas, With the holiday on December 31st, I’m gonna doubt that. Councilperson Czilli, You don’t know that. Clerk-Treasurer Rivas, Well, that’s fine. We could go over this all frickin’ night long… Councilperson Czilli, You’ve know about this since October 8th, when I brought this to you there would be… Clerk-Treasurer Rivas, What does it matter? Councilperson Czilli, It does matter. Clerk-Treasurer Rivas, Do you know how much work I have to freaking do in a day, Collin? COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 19 Clerk-Treasurer Rivas, Collin, the whole PD knows… Councilperson Czilli, Yes, I understand that - that doesn’t mean every staff member knows. Clerk-Treasurer Rivas, There has been discussion with individual employees. Just because there hasn’t been a mass email… Councilperson Czilli, Nina – employees have a right to know that their pay is being moved. It is now nine days when this is gonna happen. You informed us via email, I think last Monday, December 6th what was happening… Clerk-Treasurer Rivas, Yeah, and then you started throwing a fit because it wasn’t the way you wanted it to go. Councilperson Czilli, Nina – switching the bi-weekly pay has nothing to do with moving their paycheck. That has nothing to do with it. Clerk-Treasurer Rivas, What? Councilperson Czilli, You could have informed staff that this… Clerk-Treasurer Rivas, Why wouldn’t I have sorted out, entirely… Councilperson Czilli, You could have informed staff that this was coming, that they would not be receiving a paycheck on December 31st. Clerk-Treasurer Rivas, People wouldn’t be happy about it… Mayor Lynch, (gavel) Okay… Councilperson Czilli, It isn’t’ about people being… Mayor Lynch, Order…Order Councilperson Czilli, So, staff should have been informed of this weeks, if not months ago when we discussed this at a budget meeting what we were going to do. We knew we were going to move this payroll. Clerk-Treasurer Rivas, Collin – we, we knew? Councilperson Czilli, Yes, we knew. We talked about this at a budget hearing… Clerk-Treasurer Rivas, It was not a hearing… Councilperson Czilli, Budget meeting. For five of us… Clerk-Treasurer Rivas, Collin, it was still being worked out and how it was going to be done. Councilperson Czilli, We knew there would be a 27 paycheck. Mayor Lynch, (gavel) Okay, we made out point. Does anybody else have anything to say? Councilperson Williams, Will there be an email sent out tomorrow informing our employees of the current payroll situation? COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 20 we’ve known it was going to be a holiday for weeks. We knew that we were going to move their payroll from December 31st to the 1st and that it would be on a holiday. And then there would be a Sunday and then they would get their check on the 3rd. They need to know that. Clerk-Treasurer Rivas, For salaried employees too. Councilperson Czilli, I understand that… Clerk-Treasurer Rivas, It changes the dynamic with the hourly. Before I miscommunicate something, I want to make sure everybody’s on the same page. Councilperson Czilli, You would have updated and said, now this is going to affect hourly employees, but you could have notified the staff we knew this was going to affect. Clerk-Treasurer Rivas, Do you understand – what that kind of – what that kind of communication.. So I send that kind of communication, that kind of communication goes out, then Carrie’s phone and email blows up constantly. Do you understand her workload too? Councilperson Czilli, I understand that Nina. Clerk-Treasurer Rivas, No, I don’t think you do. Councilperson Czilli, I do understand, but… Mayor Lynch, (gavel) Okay…Okay. We’ve made the point here, so. Um – sorry, this is kind of after the fact, but Nina, I did speak to someone who’s salary is going to be affected and they knew nothing about it. And this was just a couple of days ago. So, I do feel that employees should have known, because we have known this was going to happen. Clerk-Treasurer Rivas, Right, I mean… Mayor Lynch, I feel like it’s really unfair to our employees that they were not informed. Attorney Whitten, (inaudible) Mayor Lynch, In a simple email, this is the days of technology. Just a simple email just briefly saying what a 27 pay is, and that’s what happens, it won’t happen again for another eleven years. But I do feel, that our employees – because, now my concern is kind of like Collins. If I have a house payment that’s due on the 31st and it rolls over to the third, it’s going to roll into another year as well. Councilperson Czilli, You may not have the funds in your account, it’s auto deducted… Mayor Lynch, Yeah…some of us are lucky enough to have additional funds in our account, but not everyone is like that. So, I think in fairness to our employees we should have given them a heads up. Clerk-Treasurer Rivas, I understand that, but it took me, I mean it took time to even get our, the payroll clerk to understand the 27 pay. It – not everybody knows it or understands it. She never has had to deal with it and I don’t – I don’t want her to get attacked either. Mayor Lynch, Well, I get that, but the thing is, and that’s what I think we’ve been talking about this for a long time and we’ve got to stop waiting till the last minute to do things. We should have jumped on this a few weeks back and let people know and we, and we just didn’t. I mean, we got to stop doing that. Is there any other discussion? COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 21 agenda, not you, needed to be… Clerk-Treasurer Rivas, I understand that, but you don’t have to dribble the ball. Councilperson Czilli, Nina – they needed to be to the council by Friday at 5 p.m. Clerk-Treasurer Rivas, Collin, payroll wasn’t done till Friday. How am I going to be able to help clean stuff up? Councilperson Czilli, Nina – I said this needed to be to the Council by Friday at 5 p.m. Clerk-Treasurer Rivas, Then don’t do it, I don’t care. It will be in the minutes. I presented it. Councilperson Czilli, the Council can vote to add it to the agenda, but this wasn’t on the agenda. Clerk-Treasurer Rivas, Okay, you… Councilperson Czilli, I sent the agenda at 5 pm. on Friday… Clerk-Treasurer Rivas, You just don’t understand how things work. I couldn’t have it done. How could I have it done on Friday? Councilperson Czilli, Nina – you had asked for this meeting on the 21st. So, you knew that we were going to need to do a different, additional things. Clerk-Treasurer Rivas, Sure, yeah, transfers. Councilperson Czilli, You asked to move the meeting… Clerk-Treasurer Rivas, Collin, you think I can just whip it up and I can have the answer right away… Mayor Lynch, (gavel) Can we have transfers, Council – Collin can we have the Council… Councilperson Czilli, It is not on the agenda. Mayor Lynch, Can you approach your Council if they want to vote on it, please do. Councilperson Czilli, I’ll make a motion to add it to the agenda. Clerk-Treasurer Rivas, Why can’t it just be under other business? Councilperson Czilli, Because it’s not on the agenda, Nina. Clerk-Treasurer Rivas, Why can’t it be introduced under other business? Mayor Lynch, It’s irrelevant. Collin is bringing it up… Councilperson Czilli, The Council President has the prerogative to add things to the agenda. This was not provided to us; it was given to us an hour before the meeting. I am not adding it to the agenda. If the Council wants to add it to the agenda, I’ve made a motion to do so. Four members can vote to add it to the agenda. Mayor Lynch, So we will need a second to Collin’s motion. Do we have a second to Collin’s motion? To add the transfers on to the agenda. COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 22 Councilperson Williams, I just want to know, um, since this affects so many departments, Nina, have the Department Heads been informed of these changes? Clerk-Treasurer Rivas, They never pay – they, never.. No. It’s already been done. They don’t request – they don’t request it. It’s just like, always been cleaned up after. I’m not saying that’s the way it should be, but that’s the way it’s been historically. It’s how it’s been ran. And then, the Clerk-Treasurer would come to the Council after the fact. It’s…I’m trying to stay ahead of it. Councilperson Williams, Well, I think part of staying ahead of it is… Clerk-Treasurer Rivas, And the Department Heads, they can’t – they have to look. They have to know they can’t just keep spending if they don’t have the money in their budget. Councilperson Williams, Excuse me. I guess that’s my point. Are the Department Heads expecting money to be using that money to clean up any expenses for the end of the year. Clerk-Treasurer Rivas, Ultimately, it falls on me to make sure it gets cleans up, because no appropriations should never go negative into a month. And, the way that things have been ran previously, it hasn’t mattered. And, people just spend without checking to make sure they have the appropriations for it. Councilperson Williams, So your answer to the question is that the Department Heads are not aware of these changes. Councilperson Czilli, I mean, a perfect example I think of this is Motor Vehicle Highway Fund. We are moving $145,000 to Personal Services. Does Randy know this is coming out of Other Services and Charges? He may have a planned expenditure there. He may think he has an appropriation there. Clerk-Treasurer Rivas, No, well.. people could just not get paid. That went to hourly. I had to back out health insurance and pay it out of another fund in order to free up appropriations in order to make a transfer. Councilperson Czilli, Here’s my point of receiving this… Clerk-Treasurer Rivas, I’ve warned about Randy’s budget, MVH Budget since January of this year. Councilperson Czilli, Right. Clerk-Treasurer Rivas, Since January. Councilperson Czilli, This is my point about receiving this before the meeting. An hour before the meeting. We have not had a chance to ask any questions about why these are the way they are, what’s being done. We haven’t been able to check this with this department before… Clerk-Treasurer Rivas, I know. Have you asked before? No, I really have to wonder if you guys, if you ever asked the former Clerk-Treasurer questions… Councilperson Czilli, We have asked for information plenty of times, yes. Why things weren’t added to the agenda. Clerk-Treasurer Rivas, And he’d make stuff up and you believed it. Mayor Lynch, Okay, let’s not get petty here. We’re deliberating on, um, whether we’re going to allow the transfers. So, we have a motion and a second, um, please call the roll. COMMON COUNCIL MEETING DECEMER 21, 2021 PAGE 22 Councilperson Gulley, I’ll second the motion to adopt. Mayor Lynch, We have a motion and a second to adopt. Please call the role. Motion carried on the following roll call vote: Councilperson Alvarez – Yes Councilperson Podgorski – Yes Councilperson Giese-Hurst – Yes Councilperson Clem – No Councilperson Williams – No Councilperson Gulley – Yes Councilperson Czilli – No RES #21-19 4-3 Adjournment Councilperson Czilli, I’ll make a motion to adjourn. Councilperson Gulley, Second. Motion carried on voice vote. 7-0 Mayor Lynch adjourned the meeting at 6:56 p.m. ATTEST: ____________________________ ____________________________ Nina Rivas Sue Lynch Clerk-Treasurer Mayor