Item 3C: Resolution Authorizing the Sale of GO Bonds to Fix Streets

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According to the bond measure language, the City Manager will contract with an outside auditor to prepare written reports on the use of the bond proceeds. In addition, staff will provide periodic status reports on the implementation of the street repair bonds. The City Manager also intends to create a street repair review panel, which will prepare its own report to council and the public concerning the use of the bond proceeds. RELATED CITY POLICIES The Eugene Budget Committee approved a set of debt issuance guidelines in February 2004. Those guidelines limit the amount of net direct debt outstanding to 1% of the City’s real market value. After issuance of these bonds for $35,900,000, the City will remain in compliance with this policy, as there is sufficient room remaining under the debt limit. The debt issuance guidelines state that voter-approved General Obligation bonds will be sold by com- petitive bid. Those guidelines were adopted under the assumption that General Obligation bonds would always be sold as long-term debt and did not anticipate a situation such as the current one where a short- term, line-of-credit type debt instrument might be preferable. A line of credit cannot be sold by competi- tive bid. Therefore, approval of the attached resolution would mean that the council is approving an exception to the guidelines of requiring a competitive bid for these General Obligation Bonds. If a line- of-credit type debt instrument is used in the debt issuance plan, staff will use a competitive process to choose a bank to provide the debt instrument to the City, as was the case with the Parks, Athletic Fields and Open Space Bonds. COUNCIL OPTIONS The council may approve the authorization as presented or request changes in the authorization. If changes are requested in the authorization, staff would need to return to the council at a later date with the bond sale resolution, after consultation with bond counsel. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the resolution as presented. SUGGESTED MOTION Move to approve Resolution 4958 authorizing the sale of General Obligation Bonds to fix streets and off- street paths. ATTACHMENTS A. Proposed Resolution FOR MORE INFORMATION Staff Contact: Sue Cutsogeorge, Financial Analysis Manager Telephone: 682-5589 Staff E-Mail: Sue.L.Cutsogeorge@ci.eugene.or.us Z:\CMO\2008 Council Agendas\M081208\S0812083C.doc