05/20/1981 Meeting - Laserfiche WebLink

Home Browse Search

e CB 2301--An ordinance ~opting a supplemental budget; making appropriations for the City of Eugene for the fiscal year beginning July 1, 1980, and ending June 30, 1981. Ms. Smith moved, seconded by Mr. Hamel, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Motion carried unanimously. CB 2301 was read the second time by council bill number only. Ms. Smith moved, seconded by Mr. Hamel, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed and numbered 18975. v. PURCHASE OFFER FOR CERTIFICATES OF PARTICIPATION TO FINANCE COMMUNITY CONFERENCE CENTER Mr. Gleason introduced Jeff Tashman of the Department of Housing and Community Conservation. Mr. Tashman referred to discussion of this item at the council's May 13 meeting, and reminded councilors that at that time they had agreed to postpone seeking bids for certificates of participation for the conference center due to adverse and volatile market conditions. Mr. Tashman was pleased to inform the council that a more favorable bid had been received. He noted that Jim Gibbs from E. F. Hutton, Rebecca Marshall from First National Bank of Oregon, and Howard Rankin, Bond Counsel, were present to answer any financial or 4It legal questions the council might have. Mr. Tashman indicated that the total amount of the certificates of participation was $6,920,000. $5,790,000 will be in term bonds due in the year 2006. The remaining amount will be in serial bonds due from 1983 to 1992. Last week staff had indicated that the rate on the term bonds, if sold at that time, would effectively have been 12 percent. Today, Hutton proposed to purchase the term bonds with an effective yield of 11.81 percent, slightly over the 11.75 percent which had been mentioned last week as the hoped-for goal. Mr. Tashman said that the debt service for the certificates, which will be reimbursed by the Renewal Agency, ranges between $770,000 and $780,000 per year, or about $15,000 per year over previous estimates. He said that staff had consulted with Ms. Marshall as an independent analyst, and that she had reviewed the proposal and found it to be a reasonable bid. Staff therefore recommended that the council approve Resolution No. 3511, thereby accepting E. F. Hutton's bid. Mr. Lindberg asked if the bulk of the certificates had been marketed prior to the recent increase in the prime rate to 20 percent and whether there was a connection between the two rates. Mr. Tashman said that the bonds had been marketed before the increase in the prime rate, but that it was his under- standing that there was no direct link between the two rates. .e MINUTES--Eugene City Council May 20, 1981 Page 10