Item 2D-Res.for Long-Term Finan - Laserfiche WebLink

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assessment contracts. This will be much more cost effective than a bond sale in the credit markets for small assessment projects. For larger projects, such as the upcoming West University Alley Project, the City will compare the costs of a long-term bank loan with a bond sale in the public credit markets and choose the most cost-effective method of finance. The security for the credit facility and any long-term bonds is primarily the proceeds from improvement bonds and foreclosures on properties that have been assessed. In addition, the City pledges its full faith and credit to repayment of the credit facility. City staff selected a provider for an interim credit facility through an RFP process in 1994. As a result of that process, the City selected Bank of America to provide a line of credit. That credit facility has been renewed under the terms of the resolution since that time. The City's contract with Bank of America expires as of November 1, 2004. Staff is in the process of conducting an RFP process to choose a provider for both the interim and long-term financing requirements of the assessment program. Bids are due on September 15. A provider is expected to be chosen by late September and a credit facility will be signed by November 1, when the current facility expires. RELATED CITY POLICIES As of June 30, 2004, the City had $430,000 of outstanding limited tax assessment bonds. Issuance of limited tax assessment bonds in the next few years is expected to be relatively small, with the West University Alley Project (estimated at about $1.6 million) being the largest. Assessment bonds are excluded from the City's calculation of net direct debt, so they do not have an impact on debt capacity. CO[INCIL OPTIONS The council can either adopt the resolution or not adopt the resolution. If the resolution is not adopted, the City will have to incur additional legal expenses to re-write the credit facility documents that were included in the RFP process, and may have to start the RFP process over again to choose an assessment program financing provider consistent with the existing authority. CITY MANAGER'S RECOMMENDATION The City Manager's recommendation is to approve the proposed resolution. S[IGGESTED MOTION Move to approve Resolution 4807 authorizing interim and long term financing for local improvement projects and terminating the authority under Resolution No. 4602. ATTACHMENTS A. Resolution FOR MORE INFORMATION Staff Contact: Sue Cutsogeorge Telephone: 682-5589 Staff E-Mail: sue.l.cutsogeorge~ci.eugene.or.us L:\CMO\2004 Council Agendas\M040913\S0409132D.doc