Item 4: Resolution on MWMC Borrowing Authority

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weather related wastewater overflows, thereby ensuring continued protection of public health and the environment consistent with the following City resolutions: ? Resolution #4615, adopted in April 2000, which states “The City will work proactively to the best of its ability, through regulatory compliance, restoration projects, community outreach and involvement, and otherwise, to support the recovery of spring Chinook salmon populations.” ? Resolution #4618, adopted by the City Council in February 2000, which is a statement of intent regarding the application of sustainability principles to the City of Eugene. These principles include protection of the quality of the air, water, land, and other natural resources; conservation of native vegetation, fish, wildlife habitat, and other ecosystems. The resolution further states that the “City is committed to protecting and restoring the natural environment as growth management and economic development decisions are made.” ? Resolution #4554, adopted in February 1998, which includes Growth Management Policy #17, “Protect and improve air and water quality and protect natural areas of good habitat value through a variety of means such as better enforcement of existing regulations, new or revised regulations, or other practices.” COUNCIL OPTIONS Options available to the council on this issue include: 1. Approve the request to increase the MWMC’s borrowing authority by an additional $100 million. This decision will allow the commission to issue revenue bonds in a timely fashion to support the completion of the 2004 Facilities Plan. The increase in borrowing authority will not affect the City of Eugene’s budget or local wastewater rates, as the debt service will be managed through the regional wastewater rates. 2. Approve the request for additional borrowing authority at an amount other than $100 million. 3. Take no action. This would limit the MWMC to its existing borrowing authority of $100 million, which has already been fully utilized. In order to generate the revenue necessary to complete the mandated projects in the 2004 Facilities Plan, the Commission would need to raise user rates and Systems Development Charges. The necessary increases would be substantial. CITY MANAGER’S RECOMMENDATION The City Manager’s recommendation is to approve the request by the MWMC to extend its borrowing authority by an additional $100 million. SUGGESTED MOTION Move to adopt Resolution No 4971 to increase borrowing authority of the MWMC by $100 million for a total borrowing authority of the MWMC to $200 million. ATTACHMENTS A. Resolution No. 4971 Z:\CMO\2009 Council Agendas\M090427\S0904274.doc