Item 2C: EWEB Short-Term Borrowing

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the public body. Oregon Revised Statues 287A.150 authorizes a public body to issue revenue bonds for the purpose of financing capital projects to be undertaken by the public body. On February 17, 1993, the City Council adopted Resolution No. 4360 to authorize the City, acing though EWEB, to issue revenue bonds for the purpose of financing improvements to the City’s electric utility system and setting forth other terms and conditions, including the requirement for approval by the City’s electors at an election to be held on May 18, 1993. On May 18, 1993, the City’s electors approved the issuance of such revenue bonds. G. EWEB has by resolution undertaken to cause to be prepared a plan showing that EWEB’s estimated Electric Utility System revenues are sufficient to pay the estimated debt service on obligations issued to refund the Harvest Wind Project Interim Financing authorized by this Resolution. H. To the extent that the expenditures and the use of proceeds of the Harvest Wind Project Interim Financing may qualify under federal tax law and regulations, the City, including EWEB, intends for the interest on such bonds to be excludable from gross income for federal income tax purposes under §103 of the Internal Revenue Code of 1986, as amended (the “Code”). I. The City and EWEB anticipate incurring expenditures (“Expenditures”) to finance the costs of the Project and wish to declare their official intent to reimburse themselves for the Expenditures made on the Project from the proceeds of the Harvest Wind Project Interim Financing. J. EWEB expects that the Harvest Wind Project Interim Financing will be repaid either from the proceeds of the sale of the Project to a private investor, or from the proceeds of Electric Utility System Refunding Revenue Bonds previously authorized by the voters. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a municipal corporation of the State of Oregon, as follows: Section 1. Authorization of Harvest Wind Project Interim Financing; Purpose of Issue. Based on the above findings, the City Council hereby authorizes EWEB, on behalf of the City, to enter into the Harvest Wind Project Interim Financing, in the aggregate principal amount of not to exceed $46,355,000, on a tax-exempt or taxable basis, as parity or subordinate lien Bonds, for the purpose of financing and refinancing the Project, whether through an output prepayment contract, acquisition of an undivided interest in the Project or otherwise, to fund necessary reserves, and to pay the costs of issuance of the Harvest Wind Project Interim Financing. Section 2. Conditions of Issuance and Sale. The City Council hereby prescribes that: (a)The Harvest Wind Project Interim Financing shall (i) mature not later than one (1) year from its dated date; (ii) have an interest rate per year equal to (1) the BBA LIBOR Daily Floating Rate (as defined in the Harvest Wind Project Interim Financing) plus 1.20% (sub- ject to a floor of 1.95%), or (2) the LIBOR Fixed Rate (as defined in the Harvest Wind Project 2