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January 27, 2020, Meeting - Item 2D EUGENE CITY COUNCIL AGENDA ITEM SUMMARY A Resolution Authorizing the Issuance and Sale of Electric Utility Revenue Refunding Bonds and Providing for Related Matters. A Resolution Authorizing the Issuance and Sale of Water Utility System Revenue Bonds and Revenue Refunding Bonds and Providing for Related Matters. Meeting Date: January 27, 2020 Agenda Item Number: 2D Department: Central Services Staff Contact: Twylla Miller www.eugene-or.gov Contact Telephone Number: 541-682-8417 ISSUE STATEMENT Eugene Water & Electric Board (EWEB) is requesting authority to proceed with the issuance of Electric Utility Revenue Refunding Bonds in the amount of $36,880,000 for refunding certain outstanding issuances to achieve interest savings. EWEB is also requesting authority to proceed with the issuance of Water Utility Bonds in the amount of $36,860,000; $15,860,000 for refunding certain outstanding issuances to achieve interest savings, and $21,000,000 of new money authorization for capital improvements. BACKGROUND EWEB has taken steps for the benefit of its customer-owners to improve the financial condition of each utility (Electric and Water). Market conditions are currently favorable for refinancing bonds and undertaking new issuances. The proposed refinancing would achieve approximately $1,900,000 in interest savings for each utility, which will help mitigate future rate pressure. The EWEB Board of Commissioners unanimously approved resolutions requesting the City to authorize the sale of these bonds at their January 7, 2020, meeting. Electric Utility System The City, acting by and through EWEB, previously issued $71,230,000 of Series 2012 Electric Utility System Bonds. As of December 31, 2019, $33,150,000 remains outstanding. Current market conditions indicate that by refunding a portion of the outstanding bonds totaling approximately $15 million, $1.9 million of interest savings could be achieved. The issuance authority requested is to refinance all of the outstanding bonds, should market conditions at the time of issuance prove financially beneficial. City Council approved Resolution No. 5201 on June 26, 2017, authorizing the issuance of $80,000,000 Electric Utility System bonds primarily for capital improvements related to the relicensing of the Carmen-Smith Hydroelectric Project, as well as other projects described in the Electric Utility Capital Improvement Plan. At that time, EWEB indicated its intent to issue bonds in