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<br />
<br />ECC
<br /> UGENE ITY OUNCIL
<br />AIS
<br />GENDA TEM UMMARY
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<br />Action: Adoption of Resolution 5042 Authorizing the Sale of
<br />General Obligation Refunding Bonds
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<br />Meeting Date: September 26, 2011 Agenda Item Number: 2B
<br />Department: Central Services Staff Contact: Twylla Miller
<br />www.eugene-or.gov Contact Telephone Number: 541-682-8417
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<br />ISSUE STATEMENT
<br />The council is being asked to approve the issuance of general obligation bonds to refinance the General
<br />Obligation Fire Projects Bonds, Series 2002, the General Obligation Parks & Open Spaces Bonds,
<br />Series 2004, and the General Obligation Parks, Athletic Fields and Open Space Bonds, Series 2008 to
<br />achieve interest rate savings.
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<br />BACKGROUND
<br />On November 3, 1998, a majority of the electors authorized the City to issue general obligation bonds
<br />in an aggregate principal amount of $25,305,000 to finance the purchase of parkland, the building of
<br />parks and youth sports fields and replacement of Amazon Pool. On June 21, 1999, the council adopted
<br />Resolution 4595 authorizing issuance of the bonds and in August 1999, the City issued $19 million of
<br />the authorized amount. On March 8, 2004, the council adopted Resolution 4787 authorizing the sale of
<br />the unissued bonds, and in May 2004, the City issued the remaining $6,305,000 of bonds.
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<br />On March 11, 2002, the council adopted Resolution 4713 authorizing the issuance of general
<br />obligation bonds to finance fire facilities, contingent upon voter approval at the May 2002 election.
<br />On May 21, 2002, a majority of the electors authorized the City to issue general obligation bonds in an
<br />aggregate principal amount of $8,680,000 to finance fire facilities. In October 2002, the City issued
<br />the full amount of the fire facility bonds.
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<br />On November 7, 2006, a majority of the electors authorized the City to issue general obligation bonds
<br />in an aggregate principal amount of $27,490,000 to finance parks, athletic fields and preservation of
<br />open space. On January 8, 2007, the council adopted Resolution 4898 authorizing the issuance of
<br />bonds and/or lines of credit to provide financing for the projects. In May 2007, the City established a
<br />taxable general obligation bond and revolving credit facility and has issued $13,945,000 to-date
<br />through the line-of-credit. The line-of-credit currently has an outstanding balance of approximately
<br />$1.5 million. In October 2008, the City issued a 10-year, $5,600,000 general obligation bond to
<br />refinance the then-outstanding balance on the line-of-credit.
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<br />Current economic conditions have pushed bond yields to historically low levels, including lowered
<br />interest rates for municipal bonds. In addition to refinancing the three series of bonds described above,
<br />the balance on the 2006 General Obligation Taxable Bond and Revolving Credit Facility of approxi-
<br />mately $1.5 million may be refunded at the same time, if it is advantageous to do so. Resolution 4898,
<br />previously approved by the council, authorized that transaction.
<br /> S:\CMO\2011 Council Agendas\M110926\S1109262B.doc
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