Item 2F: Resolution Authorizing EWEB Borrowing (electric system)

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 5027 Authorizing the Issuance and Sale of Water Utility System Revenue Bonds for the Purpose of Financing Improvements to the Water Utility System in the Aggregate Principal Amount of Not to Exceed Twenty-Five Million Five Hundred Thousand Dollars ($25,500,000); and Providing for Related Matters Meeting Date: March 14, 2011 Agenda Item Number: 2F Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT The Eugene Water & Electric Board (EWEB) is requesting authority to proceed with the issuance of Water Utility System Revenue Bonds in the amount of $25,500,000, for the purposes described below. BACKGROUND A new authorization for $25,500,000 of Water Utility System Revenue Bonds is being requested under the provisions of the Uniform Revenue Bond Act. The bonds are issued pursuant to this authorization will provide funds for design and construction work associated with water utility capital improvements such as pump stations, reservoirs and transmission and distribution mains. Rates are expected to increase 3.5 percent and 2.75 percent over the next two years to cover the additional borrowing costs for the capital improvements. RELATED CITY POLICIES There are no City policies related to this item. COUNCIL OPTIONS The council can approve or not approve this resolution. If the council does not approve the resolutions, EWEB would not be able to issue new revenue bonds to complete its water system improvements. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the resolution. SUGGESTED MOTION Move to adopt Resolution 5027, a resolution authorizing the issuance and sale of Water Utility System Revenue Bonds for the purpose of financing improvements to the Water Utility System in the aggregate \\Cesrv500\cc support\CMO\2011 Council Agendas\M110314\S1103142F.doc