HomeMy WebLinkAboutItem 18- General Obligation Bond Authorization AGENDA ITEM SUMMARY Meeting Date: 7/1/2024
Meeting Type: Regular Meeting
Staff Contact/Dept.: Nathan Bell / Finance
Staff Phone No: 541-726-2364
Estimated Time: 5 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE:
GENERAL OBLIGATION BOND AUTHORIZATION
ACTION
REQUESTED:
Adopt/Not Adopt A RESOLUTION OF THE CITY OF SPRINGFIELD, OREGON
AUTHORIZING THE SALE OF GENERAL OBLIGATION BONDS.
ISSUE
STATEMENT:
On May 21, 2024, the voters of the City of Springfield approved Measure 20-351,
authorizing the City to issue a maximum of $20,000,000 of general obligation
bonds to fix City streets. Staff is now seeking authorization to take those steps
necessary for the issuance of the general obligation bonds approved by the voters.
ATTACHMENTS: 1 – Resolution Authorizing the Sale of General Obligation Bonds
DISCUSSION/
FINANCIAL
IMPACT:
On February 5, 2024, the Council authorized the referral to voters a ballot measure
authorizing the issuance of a maximum of $20,000,000 of general obligation bonds
to fund projects to fix City streets. On May 21, 2024, the measure was approved by
voters.
Staff is currently working with the City’s financial advisors to discuss the best way
to structure the bond issuance. At this time, given the size of the issuance and the
projected timeframe of project expenditures, staff is considering a public bond sale
of both tax-exempt and taxable bonds to maximize the funds available for projects
while minimizing the cost to the taxpayer.
Staff will work with the City’s financial advisors over the coming months to
prepare for a bond issuance anticipated for late summer.
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY OF SPRINGFIELD, OREGON AUTHORIZING THE SALE OF
GENERAL OBLIGATION BONDS.
WHEREAS, the voters of the City of Springfield, Oregon (the “City”) approved Measure 20-351 at the
May 21, 2024 general election, authorizing the City to issue a maximum of $20,000,000 of general
obligation bonds (the “Bonds”) to fix City streets, as described in that measure (the “Projects”); and
WHEREAS, it is now desirable to authorize the sale of the general obligation bonds that were
approved by the City’s voters on May 21, 2024; and
WHEREAS, ORS 287A.050 limits the amount of general obligation bonds for street improvements and
certain other types of general obligation bonds to three percent of the real market value of taxable
property in the City, and issuing the Bonds will not cause the City to exceed this limit;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD:
Section 1. Bonds Authorized. The City hereby authorizes the issuance of a maximum of
$20,000,000 (Twenty Million Dollars) in aggregate principal amount of Bonds to finance the Projects,
including paying costs related to the Bonds.
Section 2. Delegation. The City Manager, the City Finance Director or the person designated by the
City Manager or the City Finance Director to act on behalf of the City pursuant to this Resolution (each
a “City Official”) may, on behalf of the City and without further action by the Common Council:
(1) Sell and issue all or any portion of the Bonds in one or more series, which may be sold at
different times.
(2) Structure each series of the Bonds as draw down borrowings or borrowings fully funded at
closing.
(3) Participate in the preparation of, authorize the distribution of, and deem final any official
statement or other disclosure documents relating to each series of the Bonds.
(4) Establish the structure, principal amount, interest rates, payment schedule and other terms for
each series of the Bonds.
(5) Execute and deliver a bond declaration and/or bond purchase agreement for each series of the
Bonds specifying the terms under which each series of the Bonds are issued and making
covenants for the benefit of Bond owners and any providers of credit enhancement for the
Bonds.
(6) Publish a notice of sale, receive bids and award the sale of each series of the Bonds to the
bidder complying with the notice and offering the most favorable terms to the City, or select
one or more underwriters, commercial banks or other lenders and negotiate the sale of any
series with those underwriters, commercial banks or lenders.
Attachment 1
Page 1 of 2
(7) Undertake to provide continuing disclosure for each series of the Bonds and to comply with Rule
15c2-12 and any other applicable requirements of the United States Securities and Exchange
Commission and any other federal agencies.
(8) Apply for ratings for each series of the Bonds, determine whether to purchase municipal bond
insurance or obtain other forms of credit enhancements for each series of the Bonds, enter into
agreements with the providers of credit enhancement, and execute and deliver related
documents.
(9) Engage the services of paying agents and any other professionals whose services are desirable
for the Bonds and negotiate the terms of and execute any agreement with such professionals.
(10) Determine whether each series of the Bonds will bear interest that is excludable from gross
income under the Internal Revenue Code of 1986, as amended (the “Code”), or is includable in
gross income under the Code. If a series bears interest that is excludable from gross income
under the Code, the City Official may enter into covenants to maintain the excludability of
interest on that series of the Bonds from gross income.
(11) Designate any series of the Bonds as “qualified tax-exempt obligations” under Section 265(b)(3)
of the Code, if applicable.
(12) Execute and deliver each series of the Bonds to their purchaser.
(13) Execute and deliver any agreements or certificates and take any other action in connection with
each series of the Bonds which the City Official finds is desirable to permit the sale and issuance
of that series of the Bonds in accordance with this Resolution.
Section 3. Security for Bonds. The Bonds shall be general obligations of the City. Pursuant to ORS
287A.315, the City hereby pledges its full faith and credit to pay the Bonds, and the City covenants for
the benefit of the Bond owners that the City shall levy annually, as provided by law, in addition to its
other ad valorem property taxes and outside the limitations of Sections 11 and 11b of Article XI of the
Oregon Constitution, a direct ad valorem tax upon all of the taxable property within the City in
sufficient amount, after considering discounts taken and delinquencies that may occur in the payment
of such taxes, to pay the Bonds promptly as they mature.
Section 4. Effective Date. This Resolution shall take effect immediately upon its adoption.
ADOPTED by the Common Council of the City of Springfield on this 1st day of July, 2024, by a vote of
____ for and ____ against.
Attest:
___________________________________
City Recorder
Attachment 1
Page 2 of 2