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<br />RESOLUTION 4677 <br /> <br />A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE BY THE <br />CITY OF EUGENE, OREGON, ACTING BY AND THROUGH THE <br />EUGENE WATER & ELECTRIC BOARD, OF REVENUE BONDS IN AN <br />AMOUNT NOT TO EXCEED $50,000,000, DECLARING OFFICIAL INTENT <br />TO REIMBURSE EXPENDITURES, PROVIDING FOR PUBLICATION OF <br />NOTICE, AND RELATED MATTERS. <br /> <br />The City Council (the "Council") of the City of Eugene, a municipal corporation of the State <br />of Oregon (the "City"), finds: <br /> <br />A. That it is in the best interest of the City, acting by and through the Eugene Water & EI~ctric <br />Board ("EWEB "), to provide funds for the design, construction, installation and equipping of certain <br />capital improvements (herein referred to as the "Facilities") to the Electric Utility System operated <br />by EWEB, including structural and environmental enhancement facilities and facilities to increase <br />the generation, transmission and distribution capacities of the Electric Utility System; <br /> <br />B. (1) ORS 288.805 to 288.945, commonly known as the Uniform Revenue Bond Act, authorizes <br />the City to issue bonds payable solely from revenues generated by facilities, projects, utilities or <br />systems owned or operated by the City; and (2) the City, acting by and through EWEB, owns and <br />operates an electric utility and related facilities and systems; <br /> <br />C. The cost of the Facilities, including bond issuance costs and debt service reserves, is estimated <br />not to exceed $50,000,000; <br /> <br />D. The City estimates that bonds will be issued in one or more series in an aggregate principal <br />amount not to exceed $50,000,000. The bonds will not be general obligations of the City, nor a <br />charge upon its tax revenues, but will be payable solely from revenues of the Electric Utility System <br />which EWEB pledges to the payment of the bonds; <br /> <br />E. EWEB shall cause to be prepared a plan showing that EWEB' s estimated Electric Utility System <br />revenues are sufficient to pay the estimated debt service under the revenue bond issue authorized by <br />this resolution; and <br /> <br />F. The City and EWEB anticipate incurring expenditures ("Expenditures") to finance the costs of <br />the Facilities and wish to declare their official intent to reimburse themselves for the Expenditures <br />made on the Facilities from the proceeds of the revenue bonds. To the extent that the Expenditures <br />and the use of proceeds of revenue bonds in the improvement of the Facilities may qualify under <br />federal tax law and regulations, the City and EWEB anticipate that the interest on the revenue bonds <br />will be excludable from gross income for federal income tax purposes under Section 103 of the <br />Internal Revenue Code of 1986, as amended. <br />