Resolution No. 4686 - Laserfiche WebLink

Home Browse Search

F. The City and EWEB anticipate incurring expenditures ("Expenditures") for Power Supply Cost Contingencies and wish to declare their official intent to reimburse themselves for the Expenditures from the proceeds of the revenue bonds. To the extent that the Expenditures and the use of proceeds of revenue bonds for Power Supply Cost Contingencies may qualify under federal tax law and regulations, the City and EWEB anticipate that the interest on the revenue bonds will be excludable from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: SECTION 1: REVENUE BONDS AUTHORIZED 1. The Council hereby authorizes EWEB to issue the City's revenue bonds payable from EWEB's revenues in one or more series in an aggregate principal amount not to exceed $60,000,000, for the purpose of providing funds for Power Supply Cost Contingencies, and to fund any required reserves and costs of issuance, and to sell such bonds from time to time in such manner and by such method as shall be specified pursuant to subsequent resolutions of the Council which shall be adopted as a precondition to each such sale. Prior to selling each series of bonds, and in addition to seeking the prior approval of the Council of the manner and method of each such sale, EWEB shall cause to be prepared a plan showing that EWEB's estimated Electric Utility System revenues are sufficient to pay the estimated debt service under such series of bonds and shall adopt an authorizing resolution and provide to the City Manager a copy of such resolution. Pursuant to ORS 288.825(4)(a) and ORS 288.520(4), EWEB or any individual designated by EWEB may determine the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a variable or adjustable interest rate, denominations and other terms and conditions of the bonds because the same cannot be determined by the Council at this time; provided, however, without the approval of the Council, the effective rate of interest on each series of bonds shall not exceed 9 percent per annum, each series of bonds shall mature not later than seven years from the date of issuance of such series of bonds, and the discount or premium on the bonds may not exceed 5 percent of the aggregate principal amount thereof. 2. Upon completion of the actions stated in Section 2 below pursuant to ORS 288.815, EWEB or any individual designated by EWEB is authorized to prepare and distribute a preliminary official statement or other disclosure document for the bonds; to obtain bond insurance or other credit enhancement, if required; to obtain a rating of the bonds from Moody's Investors Service, Inc., Standard & Poor's Credit Markets Services and/or Pitch IBCA, Duff & Phelps, Inc., if required; to select a Trustee, Registrar or Paying Agent for the bonds; and to determine any other terms, conditions or covenants regarding the bonds,