HomeMy WebLinkAboutResolution No. 4601
RESOLUTION NO. f'~/
A RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE BY THE CITY OF EUGENE, OREGON, ACTING BY
AND THROUGH THE EUGENE WATER & ELECTRIC
BOARD, OF WATER REVENUE BONDS IN ONE OR MORE
SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT
TO EXCEED $36,000,000, DECLARING OFFICIAL INTENT
TO REIMBURSE EXPENDITURES, PROVIDING FOR
PUBLICATION OF NOTICE, AND RELATED MATTERS.
The City Council of the City of Eugene finds that:
A. It is in the best interest of the City, acting by and through the Eugene Water &
Electric Board ("EWEB"), to provide funds for the acquisition of real and personal property, to
develop, construct, equip and improve EWEB's water system, and all equipment and appurtenances
necessary, useful or convenient thereto (collectively "the Project") pursuant to EWEB's Water
System Capital Plan;
B. The City is authorized, acting by and through EWEB, to finance the Project by
issuing revenue bonds pursuant to the authority of ORS 288.805 to 288.945, commonly known as
the Uniform Revenue Bond Act;
C. The cost of the Proj ect, including bond issuance costs and debt service reserves, is
estimated not to exceed $36,000,000;
D. The City estimates that bonds will be issued in an aggregate principal amount not to
exceed $36,000,000. The bonds will not be general obligations of the City, nor a charge upon its
tax revenues, but will be payable solely from the revenues which EWEB pledges to payment of the
bonds;
E. EWEB has prepared a Water System Capital Plan showing that EWEB's estimated
net revenues of the water system are sufficient to pay the estimated debt service under the revenue
bond issue authorized by this Resolution; and
F. The City and EWEB anticipate incurring expenditures ("Expenditures") to finance
the costs of the Project and wish to declare their official intent to reimburse themselves for the
Expenditures made on the Project from the proceeds of the revenue bonds. The interest on the bonds
will be excludable from gross income under Section 103 of the Internal Revenue Code of 1986, as
amended.
Resolution - 1
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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. Revenue Bonds Authorized
1. The Council hereby authorizes EWEB to issue the City's revenue bonds in one or
more series in an aggregate principal amount not to exceed $36,000,000. Prior to selling the bonds,
EWEB shall adopt a bond resolution and provide to the City Manager a copy of such bond
resolution. Pursuant to ORS 288.825(4)(a) and ORS 288.520(4), EWEB's Treasurer or designee
may determine the maturity dates, principal amounts, redemption provisions, interest rates or the
method for determining a variable or adjustable interest rate, denominations and other terms and
conditions of the bonds because the same cannot be determined by the Council at this time.
However, without the approval of the Council, the effective rate of interest on the bonds shall not
exceed 14 percent per annum, the bonds shall mature not later than 30 years from the date of
issuance of such bonds, and the discount or premium on the bonds may not exceed 5 percent of the
aggregate principal amount thereof.
2. Upon completion of the actions stated in Section 2 below pursuant to ORS 288.815,
EWEB's Treasurer or designee is authorized to prepare and distribute a preliminary and final official
statement or other disclosure document for the bonds; obtain bond insurance or other credit
enhancement, if required; obtain a rating on the bonds from Moody's Investors Service, Inc.,
Standard & Poor's Ratings Services and/or Fitch IBCA, if required; select a Trustee, Registrar or
Paying Agent for the bonds; and determine any other terms, conditions or covenants regarding the
bonds, or the Project which are necessary or desirable to effect the sale of the bonds.
Section 2. Notice, Procedure
1. No bonds of the $36,000,000 issue may be sold, and no purchase agreement for such
amount of bonds may be executed or delivered, for at least 60 days following publication of the
Notice of Revenue Bond Authorization, such notice being in substantially the form attached to this
Resolution as Exhibit A ("the Notice"). The Notice shall specify the last date on which petitions
may be submitted, and the City, acting by and through EWEB, shall cause the Notice to be published
in The Register-Guard, Eugene, Oregon, a newspaper of general circulation within the boundaries
of the City, in the same manner as are other public notices of the City.
2. If petitions for an election, containing valid signatures of not less than 5 percent of
the City's qualified electors, are received within the time indicated in the Notice, the question of
issuing such bonds in an amount not to exceed $36,000,000 shall be placed on the ballot at the next
legally available election date. If such petitions are received, no such amount of bonds may be sold
until the question of whether to issue such Bonds is approved by a majority of the electors living
within the boundaries of the City who vote on that question. Any such petitions will be subject to
ORS 288.815 and Sections 2.970-2.992 of the Eugene Code, 1971.
Resolution - 2
Section 3. Declaring Intent to Reimburse. The City hereby declares its official intent to
reimburse itself or EWEB with bond proceeds for any of the Expenditures incurred by it or EWEB
prior to the issuance of the bonds.
Section 4. Bonds Payable Solely From Revenues. The bonds shall not be general
obligations of the City, nor a charge upon its tax revenues, but shall be payable solely from the
revenues which EWEB pledges to payment of the bonds pursuant to ORS 288.825(1) and the bond
resolution to be adopted by EWEB pursuant to Section 1 of this resolution.
The foregoing Resolution adopted on the jJ ~ day o~ 1999.
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City Recorder
Resolution - 3
EXHIBIT A
NOTICE OF REVENUE BOND AUTHORIZATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Eugene, Oregon ("the
City"), adopted Resolution No.!/.JJ1 onS""iJl"eAlJerl*j, 1999, authorizing the issuance of the City's
revenue bonds acting by and through the Eugene Water & Electric Board ("EWEB"). The bonds
will be issued in one or more series to finance the acquisition of real and personal property, to
develop, construct, equip and improve EWEB's water system, and all equipment and appurtenances
necessary, useful or convenient thereto (collectively "the Project") and to fund any necessary
reserves and costs of issuance.
Subject to certain parameters, EWEB may establish all terms, conditions and covenants
regarding the bonds and the revenues which are necessary or desirable to effect the sale of the bonds.
The City estimates that the bonds will be issued in an aggregate principal amount not to
exceed $36,000,000. Bond principal and interest are expected to be paid from EWEB's water system
revenues. The bonds will not be general obligations of the City, nor a charge upon its tax revenues,
but will be payable solely from the revenues which EWEB pledges to the payment of the bonds.
If written petitions, signed by not less than 5 percent of the City's qualified electors, are filed
at the Office of the City Recorder on or before , 1999 (the 61 st day after the date of
publication of the notice), the question of issuing $36,000,000 of the revenue bonds shall be placed
on the ballot at the next legally available election date. Any such petition shall be subject to ORS
288.815 and Sections 2.970-2.992 of the Eugene Code, 1971.
The Office of the City Recorder is located at 777 Pearl St., Room 105, Eugene, OR 97401.
Information on procedures for filing petitions may also be obtained at such address or by telephone
at (541) 682-5683.
The Resolution authorizing the bonds is available for inspection at the Office of the City
Recorder.
The bonds will be issued and sold under the Uniform Revenue Bond Act (ORS 288.805 to
288.945). This Notice is published pursuant to ORS 288.815(6).
BY ORDER OF THE COUNCIL: 0 ' , 1999.
CITY RECORDER
Exhibit A - Notice of Revenue Bond Authorization