Item 2D: Res./EWEB Refund.Bnd - Laserfiche WebLink

Home Browse Search

Based on the current status of the water rights negotiations, EWEB does not believe that it will need to spend the additional bond proceeds for the originally intended purpose. Therefore, EWEB proposes using $8 million ofunexpended bond proceeds to reduce the amount of debt outstanding. The combination of a refunding at lower interest rates plus applying unexpended bond proceeds to reduce the amount of debt outstanding is expected to save approximately $600,000 annually in debt service or about 1% of the retail water rates. One of the requirements for issuance of advance refunding bonds is that the City Council approve a plan of refunding. EWEB has prepared such a plan and it is included as Attachment B. RELATED CITY POLICIES None. COUNCIL OPTIONS The council may approve or deny the request to authorize refunding of these bonds. CITY MANAGER'S RECOMMENDATION The City Manager recommends approval of the proposed resolution authorizing the refunding of EWEB Water System Revenue Bonds in an amount not to exceed $22,500,000. Note that the amount included in the bond resolution reflects the application of $8 million ofunexpended bond proceeds to reduce the amount of debt outstanding. SUGGESTED MOTION Move to approve Resolution 4844 authorizing the issuance and sale of Water Utility System Revenue Bonds in the aggregate principal amount of not to exceed twenty-two million five hundred thousand dollars ($22,500,000) for the purpose of advance refunding or defeasing certain outstanding Water Utility System Revenue Bonds; and providing for certain details and related matters. ATTACHMENTS A. Proposed Resolution B. Plan of Refunding FOR MORE INFORMATION Staff Contact: Dee Ann Hardt, Finance Director Telephone: 682-5041 Staff E-Mail: Deeann. Hardt~ci. eugene, or.us EWEB Contact: Jim Origliosso, Treasurer EWEB Telephone: 484-3753 EWEB E-Mail: Jim. Origliosso~eweb.eugene.or.us L:\CMO\2005 Council Agendas\M050627\S0506272D.doc