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<br />RESOLUTION NO. 4704 <br /> <br />A RESOLUTION OF THE CITY OF EUGENE, OREGON <br />AUTHORIZING LIMITED TAX PENSION BONDS. <br /> <br />The City Council of the City of Eugene, Oregon, finds as follows: <br /> <br />A. The City is authorized by Chapter 945 of Oregon Laws 2001 (Senate Bill 134 of the <br />2001 Regular Session of the Oregon Legislative Assembly or the "Act") to issue limited tax <br />bonds as defined in ORS 288.150 to finance its pension liability. <br /> <br />B. The Act and ORS 288.150 permit the City to pledge its full faith and credit and taxing <br />power within the limitations of Sections 11 and 11 b of Article XI of the Oregon Constitution to <br />pay those bonds. <br /> <br />C. The City has an unfunded pension liability to the Oregon Public Employees <br />Retirement System ("OPERS") which was estimated to be $63.3 million as of December 31, <br />2000. <br /> <br />D. OPERS requires the City to pay interest on this unfunded liability at a minimum rate <br />of eight percent per annum. <br /> <br />E. Current interest rates in the bond market are below eight percent, creating the <br />opportunity for the City to refinance its unfunded pension liability and reduce its costs. <br /> <br />F. Section 25 of the Act provides that governmental units may enter into <br />intergovernmental agreements for the collective issuance, administration or payment of bonds <br />authorized under the Act. <br /> <br />G. Seattle-Northwest Securities Corporation has developed a pension bond program (the <br />"Program") for the collective administration and payment of the obligations issued under the Act <br />by governmental units who agree to enter into the Program which may reduce costs for <br />participating governments. <br /> <br />H. The provisions for participation in the Program do not require the City to pay any <br />portion of another government's pension bonds or liabilities to OPERS. <br /> <br />NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eugene, <br />a municipal corporation of the State of Oregon, as follows: <br /> <br />Section 1. Definitions. <br /> <br />Unless the context clearly requires otherwise, the following terms shall have the following meanings: <br /> <br />"Available General Funds" means: (i) all the City's ad valorem property tax revenues received <br />from levies under its permanent rate limit; and, (ii) all other unrestricted taxes, fees, charges, <br /> <br />Resolution, Page 1 of 5 <br />