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<br /> January 27, 2020, Meeting - Item 2D <br /> <br /> two series with the second issuance occurring in 2021. The $33,795,000 of bonds issued in 2017 are projected to be spent by the end of 2020. EWEB expects to issue the remaining bonds authorized by City of Eugene Resolution No 5201 simultaneously with the refunding bonds to take advantage of the current favorable market conditions and the financial benefit of spreading the costs of issuance over both the refunding and revenue bond series. Consistent with the authorization granted by council in Resolution No. 5201, the primary intended use of funds will be for major relicensing projects on EWEB’s largest owned generation facility, Carmen-Smith. As of December 31, 2019, Electric Utility System outstanding bonds totaled $175 million, down from $298 million in 2012. Water Utility System A new authorization for $21,000,000 of Water Utility System Revenue Bonds is being requested under the provisions of the Uniform Revenue Bond Act. Bonds issued pursuant to this authorization will provide funds intended primarily for the design, construction, installation, and equipping of certain capital improvements including water system storage and transmission improvements. In 2016, EWEB issued approximately $16 million in Water Utility System Revenue Bonds for capital improvements. Those bond proceeds were spent by the end of 2019 on projects that included upgrades to the Hayden Bridge filtration plant, and other projects designed to provide safe and reliable water to the community. The City, acting by and through EWEB, previously issued $17,300,000 Series 2011 Water Utility System Bonds. As of December 31, 2019, $14,725,000 remains outstanding which, if refunded, would achieve approximately $1.9 million in savings under current market conditions. As of December 31, 2019, the Water Utility had $49 million of outstanding bonds. Impact on Rates Through a combination of debt restructuring and other saving initiatives, EWEB has not raised residential electric rates for five out of the last six years or water rates for the last three years. The issuance of the electric refunding bonds requested in this authorization would achieve approximately $2 million dollars in net present value savings, which has a negligible impact on electric rates over the 10-year horizon. For the Water Utility, when combined with the refunding, there is an overall decrease of two percent in the 10-year rate trajectory, when compared to not borrowing, as the cost of construction is spread over the life of the bonds. Interest rates fluctuate, and the actual savings could be more or less than anticipated, depending on market conditions at the time of the sale. The impact on debt service costs for each utility system are shown in the attached graphs. <br />PREVIOUS COUNCIL DIRECTION June 26, 2017, City Council Meeting on Resolution 5201