Item 2E: Resolution Approving Issue of EWEB Bonds

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4864 Authorizing the Issuance and Sale of Electric Utility System Revenue and Refunding Bonds in the Aggregate Principal Amount of Not to Exceed Twenty-Six Million Three Hundred Fifty-Four Thousand Two Hundred Eighty Dollars ($26,354,280) for the Purposes of Financing and Refinancing Capital Improvements to the Electric Utility System and Providing for Related Matters Meeting Date: April 10, 2006 Agenda Item Number: 2E Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT The Eugene Water & Electric Board (EWEB) is requesting authority to proceed with the issuance of Electric Utility System Revenue Bonds in the amount of $26,354,280, for several purposes described in detail below. BACKGROUND On June 25, 2001, the council adopted Resolution No. 4677 authorizing the issuance and sale of Electric System Revenue Bonds in the aggregate amount not to exceed $50 million for capital improvements to the electric system. Of this amount, $47,070,719.21 has been issued to date. This resolution sets the terms and conditions by which the council would authorize the issuance of $2,929,280.79 remaining under this authorization. The bonds will be used to reimburse the Electric Utility general account for funds expended to complete the application process for the Carmen Smith Hydroelectric license. On December 6, 2004, the council adopted Resolution #4817 authorizing the issuance of $10 million of electric system revenue bonds for the purpose of financing the design, construction, installation, and equipping of certain capital improvements to the electric system. Of this amount, $8,075,000 has been issued to date. This resolution sets the terms and conditions by which council would authorize the issuance of the $1,925,000 remaining under this authorization. Of this amount, $1,050,081 will be used to complete the purchase of property in West Eugene for a new Operations Center and the remaining $874,919 is to be used to complete the application process for the Carmen Smith Hydroelectric license. The City, acting by and through EWEB, has previously issued $19,890,000 of Electric System Revenue Bonds, Series 1996, of which $12,420,000 of principal remains outstanding. Those bonds are currently callable. EWEB is proposing to refinance these bonds to achieve approximately $913,644 of interest rate savings over the life of the bonds. L:\CMO\2006 Council Agendas\M060410\S0604102E.doc