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RESOLUTION NO. 4971 <br />A RESOLUTION APPROVING THE ISSUANCE OF ADDITIONAL <br />REVENUE BONDS BY THE METROPOLITAN WASTEWATER <br />MANAGEMENT COMMISSION; AND PROVIDING AN EFFECTIVE <br />DATE. <br />The City Council of the City of Eugene finds that: <br />A. <br /> Pursuant to ORS Chapter 190, the City of Springfield, Oregon, the City of <br />Eugene, Oregon and Lane County, Oregon (the Governing Bodies) entered into an <br />Intergovernmental Agreement (the Agreement) on February 9, 1977, establishing the <br />Metropolitan Wastewater Management Commission (the Commission) to construct, <br />operate, and maintain regional sewerage facilities to serve the Eugene-Springfield <br />Metropolitan area (the Metro Area). <br />B. <br /> The original regional sewerage facilities were constructed in the early <br />1980s with a planned design capacity to serve the Metro Area through 2004. <br />C. <br /> The Commission and the Governing Bodies have approved the 2004 <br />Metropolitan Wastewater Management Commission Facilities Plan and 20-Year Project <br />List, which includes capital projects with an estimated cost of $144,000,000 (in 2004 <br />dollars) necessary to meet the sewage treatment needs of the Metro Area through the <br />year 2025. <br />D. <br /> After a public hearing, and based on the recommendations of the <br />Commission and its financial advisor, in 2005 the City Council authorized the <br />Commission to issue up to $100,000,000 of revenue bonds to finance regional <br />sewerage facilities pursuant to ORS 190.080(1)(a) and ORS 288.805 to 288.945 (now <br />ORS Chapter 287A). <br />E. <br /> Due to various factors, including the escalation of construction costs since <br />2004, the cost of capital projects on the Commission’s 20-Year Project List is now <br />expected to exceed $196,000,000. <br />F. <br /> In 2005, the Commission and its financial advisor determined that revenue <br />bonds were the best available financing tool and recommended that approximately <br />$100,000,000 in revenue bonds be issued to fund the capital projects on the <br />Commission’s 20-Year Project List. The recommendation was based on the original <br />projected cost of $144,000,000. <br />G. <br /> The Commission and its investment advisor continue to believe that <br />revenue bonds are likely to be the best available financing tool. <br />H. <br /> The Commission and its financial advisor recommend that approximately <br />$20 million in additional revenue bonds be issued to fund the projected increased cost <br />of the capital projects on the Commission’s 20-Year Project List. <br />Resolution - Page 1 of 2 <br />