Item 2E: Resolution Authorizing EWEB Borrowing (water system)

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principal amount of $12,455,000 (the “Series 1998A Taxable Bonds”), which Series 1998A Taxable Bonds will be outstanding in the principal amount of $8,295,000 as of August 1, 2011. F. The City Council adopted Resolution No. 4690 authorizing the issuance of electric revenue bonds in an amount not to exceed $40,000,000. Pursuant to that authorization, the City, acting by and through EWEB, issued the City of Eugene, Oregon Electric Utility System Revenue Bonds, Series 2001B in the principal amount of $39,385,000 (the “Series 2001B Bonds”), which Series 2001B Bonds will be outstanding in the principal amount of $33,385,000 as of August 1, 2011. G. EWEB has determined that substantial present value savings may be achieved by issuing refunding bonds for the purpose of refunding (i) the outstanding Series 1998A Taxable Bonds which may be called and redeemed as of on any date on or after August 1, 2008, without premium, and (ii) the Series 2001B Bonds maturing on or after August 1, 2012, which may be called on and after August 1, 2011, without premium (collectively the “Refunded Bonds”). H. EWEB has requested by resolution that the City Council adopt this Resolution in part to set the terms for and authorize the issuance of not to exceed $46,800,000 electric utility system revenue refunding bonds (the “Refunding Bonds”) for the purpose of refunding the Refunded Bonds, to fund necessary reserves and to pay costs of issuance of the Refunding Bonds. The New Money Bonds collectively with the Refunding Bonds are referred to as the “Bonds”. I. The Bonds will not be general obligations of the City, nor a charge upon its tax revenues, but will be payable solely from revenues of the Electric Utility System which EWEB pledges to the payment of such Bonds pursuant to ORS Sections 287A.310 and 287A.325 and the resolution to be adopted by EWEB pursuant to this Resolution. J. 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 the Bonds authorized by this Resolution. K. The City and EWEB anticipate incurring expenditures (“Expenditures”) to finance the costs of the New Money Project and wish to declare their official intent to reimburse themselves for the Expenditures made on the New Money Project from the proceeds of the New Money Bonds. To the extent that the expenditures and the use of proceeds of the New Money Bonds 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”). L. EWEB has requested by resolution that the City Council adopt this Resolution in part to authorize the publication of the Notice of Revenue Bond Authorization relating to the New Money Bonds, such notice being in substantially the form attached to this Resolution as Exhibit “A” (the “Notice”). The Notice shall specify the last date on which - 2 -