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HomeMy WebLinkAboutResolution No. 4937 -=~=- COUNCIL RESOLUTION NO. 4937 A RESOLUTION AUTHORIZING INTERIM AND LONG TERM FINANCING FOR LOCAL IMPROVEMENT PROJECTS AND TERMINATING THE AUTHORITY UNDER RESOLUTION NO. 4807. PASSED: 7:0 REJECTED: OPPOSED: ABSENT: Poling RECUSED: CONSIDERED: April 14, 2008 RESOLUTION NO. 4937 A RESOLUTION AUTHORIZING INTERIM AND LONG TERM FINANCING FOR LOCAL IMPROVEMENT PROJECTS AND TERMINATING THE AUTHORITY UNDER RESOLUTION NO. 4807. The City Council of the City of Eugene, Oregon (the "City") finds as follows: A. The City is authorized under ORS 287 A.I80 (the "Act") to obtain lines of credit and issue obligations to provide interim financing for capital projects. The Act permits the City to pledge all or part of the revenues of the public body that may lawfully be used to secure payment of the interim financing to pay obligations issued under the Act. B. The City adopted Resolution No. 4807 on September 13, 2004. It authorized borrowings for interim and long term financing for local improvements projects. Resolution No. 4807 limited the authority to issue interim financing for local improvement projects to not more than Four Million Dollars ($4,000,000) outstanding at any time. C. The City finds it will be advantageous to adopt this resolution, authorizing the City to obtain and maintain interim financing for local improvement projects located inside and outside the City in a maximum outstanding principal amount of not more than Five Million Dollars ($5,000,000), and with a maximum term of five years, as provided herein. D. ORS Chapter 223 authorizes the City to issue bonds to provide permanent financing for local improvement projects. E. The City also finds it will be advantageous to authorize the issuance of bonds under ORS Chapter 223 to provide permanent financing for local improvement projects that receive interim financing under the authority of this Resolution or the City's previous resolution authorizing interim financing for local improvement proj ects. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Authorization and Limitation on Interim Financin2. The City is hereby authorized to obtain and maintain one or more interim financings (the "Interim Financings") pursuant to this Resolution and the Act for the costs of local improvement projects, including street paving, sidewalks and storm sewers (the "Projects"), subject to the following limitations: 1.1. The maximum principal amount of Interim Financings that may be outstanding at any time shall not exceed Five Million Dollars ($5,000,000); 1.2. Each Interim Financing shall have a term of not more than five years, and shall comply with the limitations of the Act. Resolution - 1 Section 2. Security for Interim Financines. Interim Financings may be secured by a pledge of: 2.1. All or any portion of the assessment payments for Proj ects, and any amounts the City receives from foreclosing assessment liens; 2.2. The proceeds of any Bonds or other permanent financing for the Projects; and, 2.3. The City's full faith and credit and taxing power within the limitations of Article XI, Sections 11 and 11 b of the Oregon Constitution. Section 3. Authorization and Limitation on Bonds. The City is hereby authorized to issue one or more series of bonds pursuant to this Resolution and ORS Chapter 223 (the "Bonds") to provide permanent financing for Projects, subject to the following limitations: 3.1. The principal amount of each series of Bonds shall not exceed the unpaid balance of all final assessments for the Projects that are refinanced by the series, plus the amount of any debt service reserves for the series, plus the costs of issuing the series; and 3.2. Each series of Bonds shall mature no later than one year after the final scheduled assessment payment for the Projects that are refinanced by the series, and shall comply with the limitations of ORS Chapter 223. Section 4. Security for Bonds. Bonds may be secured by a pledge of: 4.1. All or any portion of the assessment payments for the refinanced Projects and any amounts the City receives from foreclosing assessment liens for the refinanced Proj ects; and, 4.2. The City's full faith and credit and taxing power within the limitations of Article XI, Sections 11 and 11 b of the Oregon Constitution. Section 5. Deleeation. The City Manager or the person designated in writing by the City Manager to act under this Resolution (the "City Official") may, on behalf of the City and without further action by the Council: 5.1. Circulate requests for proposals, obtain competitive bids, or select banks or underwriters for each series of Interim Financings and Bonds, and enter into agreements to sell Interim Financings or Bonds; 5.2. Establish the principal amounts, interest rates, security and all other terms of, and execute and deliver, one or more series of Interim Financings and Bonds, subject only to the limitations in this Resolution; 5.3. Renew, extend or replace any Interim Financings obtained under the authority of this Resolution, and issue Bonds to refund any Bonds issued under this Resolution; 5.4. Obtain bond insurance or other credit enhancements for Interim Financings or Bonds, and enter into agreements with credit enhancers; 5.5. Prepare and circulate any disclosure documents that are desirable to facilitate the sale of Interim Financings or Bonds; Resolution - 2 5.6. Provide that Interim Financings or Bonds shall bear interest which is includable in gross income under the United States Internal Revenue Code; 5.7. Provide that Interim Financings or Bonds shall bear interest which is excludable from gross income under the United States Internal Revenue Code, and enter into covenants to protect that excludability; 5.8. Execute and deliver Interim Financings and Bonds and payor prepay Interim Financings and Bonds; and 5.9. Execute any documents and take any actions which the City Official reasonably determines are desirable to carry out this Resolution, or to obtain Interim Financings and sell Bonds in accordance with this Resolution and the Act. Section 6. Termination of Authoritv Granted bv Resolution No. 4807. The City shall not issue any additional obligations under Resolution No. 4807 after the City obtains Interim Financing under the authority of this Resolution. Section 7. Effective Date. This Resolution shall take effect on the date of its adoption. The foregoing Resolution adopted this 14th day of April, 2008. _~fA~ City Recorder Resolution - 3