Laserfiche WebLink
<br />repay these bonds will first be on the tax bills in November of 2014 (FY15), upon expiration of the <br />2008 Street Bonds tax levy. <br /> <br />According to the bond measure language, the City Manager will contract with an outside auditor to <br />prepare written reports on the use of the bond proceeds. In addition, the Street Repair Review <br />Panel will continue its work and prepare a report concerning the use of the bond proceeds. <br /> <br /> <br />RELATED CITY POLICIES <br />The Eugene Budget Committee approved a set of debt issuance guidelines in February 2004. <br />Those guidelines limit the amount of net direct debt outstanding to one percent of the City’s real <br />market value. After issuance of these bonds for $43,000,000, the City will remain in compliance <br />with this policy, as there is sufficient room remaining under the debt limit. <br /> <br />The debt issuance guidelines state that voter-approved General Obligation bonds will be sold by <br />competitive bid. Those guidelines were adopted under the assumption that General Obligation <br />bonds would always be sold as long-term debt and did not anticipate a situation such as the <br />current one where a short-term, line-of-credit type debt instrument might be preferable. A line of <br />credit cannot be sold by competitive bid. Therefore, approval of the attached resolution would <br />mean that the council is approving an exception to the guidelines of requiring a competitive bid <br />for these General Obligation Bonds. If a line-of-credit type debt instrument is used in the debt <br />issuance plan, staff will use a competitive process to choose a bank to provide the debt instrument <br />to the City, as was the case with the 2008 Street Bonds. <br /> <br /> <br />COUNCIL OPTIONS <br />The council may adopt the authorization as presented or request changes in the authorization. If <br />changes are requested in the authorization, staff would need to return to the council at a later date <br />with the bond sale resolution, after consultation with bond counsel. <br /> <br /> <br />CITY MANAGER’S RECOMMENDATION <br />The City Manager recommends adoption of the resolution as presented. <br /> <br /> <br />SUGGESTED MOTION <br />Move to adopt Resolution 5077 authorizing the sale of General Obligation Bonds to fix streets and <br />fund bicycle and pedestrian projects. <br /> <br /> <br />ATTACHMENTS <br />A.Proposed Resolution <br /> <br /> <br /> <br /> S:\CMO\2013 Council Agendas\M130114\S1301144D.doc <br />