Resolution No. 4757 - Laserfiche WebLink

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P. ORS ~288.620 requires that the Oregon State Treasurer (the "State Treasurer") review and approve a refunding plan prior to the sale and issuance of advance refunding bonds. Q. The City, including EWEB, anticipates incurring expenditures to finance the costs of the Project for the New Project Bonds and desires to declare its official intent to reimburse itself for such expenditures from the proceeds of the New Project Bonds. R. To the extent that the expenditures and the use of proceeds of the bonds issued under this Resolution may qualify under federal tax law and regulations, the City, including EWEB, intends for the interest on the bonds to be excludable from gross income for federal income tax purposes under ~103 of the Internal Revenue Code of 1986 (the "Code"), as amended. NOW THEREFORE, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Authorization of Bonds; Purpose of Issue; Conditions of Issuance. Based on the above findings, the Council hereby authorizes EWEB, on behalf of the City, to issue and sell "City of Eugene, Oregon Electric Utility System Revenue Bonds" (the "Bonds") in one or more series in the aggregate principal amount of not to exceed $64,000,000 subject to the following terms and conditions prescribed by the City Council: (a) The Bonds of each series shall: (i) mature not later than twenty-five (25) years from the date of issuance of the series; (ii) be sold at par or with a net original issue discount/premium that does not exceed seven percent (7%) of the aggregate principal amount thereof; (iii) have an effective interest rate of not to exceed nine percent (9%) per annum; (b) The proceeds of the Bonds shall be used only for the following purposes: (i) An amount not to exceed $7,000,000 shall be issued under a single series and shall be used to finance the Project, to pay a pro-rata share of the costs of issuance of the series and to fund a reserve fund for the payment of Bonds issued to finance the Proj ect; (ii) An amount not to exceed $40,000,000 shall be used to currently refund all or a portion of the Series 1994 Bonds, including payment of a redemption price of 101 % of the principal amount of the Series 1994 Bonds, and all or a portion of the Series 1998B Bonds, provided that such refunding shall result in a net present value debt service savings of at least 2% for each series so refunded, and to pay a pro-rata share of the costs of issuance of the series of Bonds issued for such purpose; and (iii) An amount not to exceed $17,000,000 shall be used for the purpose of advance refunding all or a portion of the outstanding Series 1996 Bonds on August 1, 2006, provided that such refunding will result in a net present value debt service savings of at least 3% in accordance with Oregon Administrative Rule 170-062-0000, and to pay a pro-rata share ofthe costs of issuance of the series of Bonds issued for such purpose. Section 2. Delegation of Authority for Terms of Bonds; Provisions for Issuance. Pursuant to ORS ~288.825(4)(a), ORS ~288.520(4), ORS ~288.540 and ORS ~288.545, EWEB, or any individual designated by EWEB, is hereby authorized and directed to determine, with respect to the 3