06/12/1985 Meeting - Laserfiche WebLink

Home Browse Search

-. e RESOLUTION NO. A RESOLUTION AUTHORIZING THE ISSUANCE OF TAX ANTICIPATION NOTES. The City Council of the City of EUgene finds that: A. On June 26. 1985. the City will adop~ a budget ior the 1985-86 fiscal year, and commencing July 1, 1985 the City will have ad valorem taxes levied and in the process of collection within the lim~tation imposed by Article XI. Section 11 of the Oregon Constitution in an amount not less than ~27,371.315.00. B. 7he City will experience a cumulative cash ilow deficit during the 1385-86 fiscal year of $5.000.000.00. C. It 1S in the nest interes~s of the City to borrow in anticipation of the taxes levied and in the process of collection ior the 1985-86 fiscal year by issuing Tex Anticipation Notes oi the City in an amount no~ more ~han t~e antlcipated ~~ximum cash ilow deficit. ~lus one month's expendltures. r-esulting in the cumulative cash flow deficit stated above. now. therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon. as follows: e Section 1. ~otes Authorized. 7~e ,.;ity shall issue a principal amount oi not grea~er than s5.000.000 of iax Anticip~tion Notes. Series 1985 (the "~iotes") pursuant to ORS 287.442 ior the purpose 0: :'.leet.ing current. ~y.penses. :~e Notes shall be dated with ~he date speciiied jy the City Manager, shall mature on June 20. 1'386, ~ryd shall bear interest ?ayaole at maturity a~ ~ rate to be established by the City Manager, which shall not exceed a net effective rat.e of 5.725%, computed on a 365-day bas~s. . Secti.on 2. Sinkinq Fund. The City shall establish a Sinking Fund for the Notes. The City covenants ior ~he benefit oi the holders of the Notes to deposit into the Sini~ing Fund all monies received by the City from its ad valorem property ~ax levy for fiscal 1'385-86. no!. including ~ny payments received in respect of delinquent taxes irom levies tor pr~or ye~rs. 110nies in :he SinKing fund shall be used solely to ~ay ?rinClOal and interest on the Notes. The Gi ty shall comtlnue to .moxe j~posits into the Sinking Funa until the Sinking rund holds an amount suii2cient ~o ~ay principal and interest on the ~otes at maturity. In determ~ning whether sufficien~ amounts have ceen deposited into the Sink.ng Fund, :.he City ~ay inc~ude interest to be earned on investments which have been made ~ith Sinking Fund monies. nonies 1n the Sinking Fund shall not be invested in instruments which mature after the maturity date oi the Notes. :\dditionai ~otes cannot be issued which w~ll have ~nv claim upon the monies in thls e' .. - . ,his Sinking Fund must ~e fully funded prior :'0 est.acl~shing ..J...nKlng :una. - ind ii~anc1ng any other slnking iuna whic~ 13 iundable from the 1985-86 .:10 valorem tax levy.