Laserfiche WebLink
<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Adoption of Resolution 4936 Authorizing the Issuance and Sale of Electric Utility <br />System Revenue Refunding Bonds in the Aggregate Principal Amount of not to Exceed <br />Forty-Six Million Dollars ($46,000,000) for the Purposes of Refinancing Improvements <br />to the Electric Utility System and Providing for Related Matters <br /> <br /> <br />Meeting Date: April 14, 2008 Agenda Item Number: 3D <br />Department: Central Services Staff Contact: Sue Cutsogeorge <br />www.eugene-or.gov Contact Telephone Number: 682-5589 <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />The Eugene Water & Electric Board (EWEB) is requesting authority to proceed with the issuance of <br />Electric Utility System Revenue Bonds in the amount of $46,000,000 for the purpose of refinancing to <br />achieve interest rate savings. <br /> <br /> <br />BACKGROUND <br /> <br />The City, acting by and through EWEB, issued a total of $46,060,000 of Electric System Revenue <br />Bonds, for Series 1998 and Series 1998A bonds. As of August 1, 2008, a balance of $41,775,000 will <br />remain outstanding for these bonds. <br /> <br />There are two series of 1998 bonds to be refinanced. The Series 1998 bonds were issued to advance <br />refund the Series 1994C bonds which were issued originally to finance the acquisition of a hydroelectric <br />generation project on the Clackamas River approximately 45 miles southeast of Portland. The Series <br />1998A bonds were originally issued to finance the acquisition of an undivided ownership interest in a <br />wind power generation facility located in the Foote Creek Rim area in Carbon County, Wyoming. <br /> <br />Both series of bonds are currently callable. EWEB is proposing to refinance these bonds to achieve <br />approximately $1.7 million of interest savings over the life of the bonds. The savings from these bonds <br />will help reduce future electric rates to EWEB customers. <br /> <br /> <br />RELATED CITY POLICIES <br />There are no City policies related to this item. <br /> <br /> <br />COUNCIL OPTIONS <br /> <br />The council can approve or not approve this resolution. If the council does not approve the resolution, <br />EWEB would not be able to proceed with the refinancing of the Series 1998 and 1998A bonds to <br />achieve interest rate savings. <br /> F:\CMO\2008 Council Agendas\M080414\S0804143D.doc <br /> <br />