HomeMy WebLinkAboutOrdinance 6235 02/17/2009
ORDINANCE NO. 6235
AN ORDINANCE OF THE CITY OF SPRINGFIELD, LANE COUNTY,
OREGON, AUTHORIZING THE lSSUANCE OF SEWER REVENUE BONDS
FOR A TOTAL OF NOT TO EXCEED $24,000,000.
WHEREAS, Oregon Revised Statutes ("ORS") Section 287 A.150 and related provisions of ORS
Chapter 287A (collectively, the "Statutes") permit the City of Springfield, Lane County, Oregon
(the "City") to authorize revenue bonds for any public purpose, and to secure those bonds with
any revenues or other property of the City; and,
WHEREAS, the Statutes permit the City to authorize revenue bonds by enacting a
nonemergency ordinance, but prohibit the sale of those revenue bonds until the ordinance takes
effect, thus allowing citizens to prevent the sale of the bonds by referring the ordinance and
voting against its enactment; and,
WHEREAS, the City now fmds it financially feasible and in the best interests of the City to
authorize the issuance of sewer revenue bonds to fmance capital improvements (the "Projects")
to the City's wastewater and storm water system (the "Sewer System"); and,
WHEREAS, the City has issued sewer revenue bonds that are secured by a first lien on the net
revenues of the Sewer System pursuant to the Master Sewer System Bond Declaration that the
City executed on May 13, 2005 (the "Master Declaration"); and,
WHEREAS, the City adopts this ordinance to authorize the issuance of up to Twenty-Four
Million Dollars ($24,000,000) of additional sewer revenue bonds; and to authorize the sale of
those revenue bonds with a first lien on the net revenues of the Sewer System in accordance with
the Master Declaration;
NOW, THEREFORE, the Common Council of the City of Springfield does ordain as
follows:
Section 1. Revenue Bonds Authorized. The City hereby authorizes the issuance of
not more than Twenty-Four Million Dollars ($24,000,000) in aggregate principal amount of
revenue bonds (the "2009 Revenue Bonds") under the Statutes. The proceeds of the 2009
Revenue Bonds may be used to finance costs of the Projects, to fund a deposit to the Bond
Reserve Account in accordance with the Master Declaration, and to fmance other costs related to
issuing the 2009 Revenue Bonds. The 2009 Revenue Bonds shall be special obligations of the
City that are payable solely from the net revenues of the Sewer System and related amounts as
provided in the Master Declaration.
Section 2. No Additional Taxes Authorized: Bonds Payable Solely from Sewer
System Revenues. Neither the authori:?:ation nor the issuance of the 2009 Revenue Bonds
described in Section 1 of this ordinance shall authorize the City to levy any additional taxes.
Section 3. Procedure. The 2009 Revenue Bonds shall not be sold until the period
for referral of this nonemergency ordinance has expired and this ordinance takes effect. If this
Ordinance No. 6235
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Attachment 1- Revenue Bond Sale
ordinance is referred, the City may not sell the 2009 Revenue Bonds described in Section 1 of
this ordinance unless the voters approve this ordinance.
Section 4. Bond Sale Authorized. When and if this ordinance takes effect the City
Manager or the Finance Director of the City, or the designee of the City Manager or the Finance
Director of the City (each of whom is referred to herein as a "City Official") are hereby
authorized, on behalf of the City and without further action by the Common Council, to:
1) Participate in the preparation of, authorize the distribution of, and deem fmal the
preliminary and final official statements and any other disclosure documents for
the 2009 Revenue Bonds.
2) Establish the final principal amount, maturity schedule, interest payment dates,
interest rates, denominations and all other terms for the 2009 Revenue Bonds.
3) Sell and issue the 2009 Revenue Bonds in one or more series.
4) Solicit competitive bids for any of the 2009 Revenue Bonds and award the sale to
the bidder the City Official determines offers the most favorable terms to the City,
or select one or more underwriters or lenders and negotiate the sale of the any of
the 2009 Revenue Bonds to those underwriters or lenders.
5) Undertake to provide continuing disclosure for the 2009 Revenue Bonds in
accordance with Rule 15c2-12 of the United States Securities and Exchange
Commission.
6) Apply for and purchase municipal bond insurance, reserve sureties or other forms
of credit enhancements for the 2009 Revenue Bonds, and enter into related
agreements.
7) Enter into additional covenants regarding the operation of the wastewater and
storm sewer systems and the imposition and collection of charges for those
systems, if a City Official determines that the additional covenants will result in
more favorable sale terms, and will not unduly burden the City or the wastewater
or storm sewer systems.
8) . Appoint and enter into agreements with escrow agents, paying agents, verification
agents and otherprofessi~mals and service providers.
9) Enter into covenants to maintain the excludability of Series 2009 Bond interest
from gross income under the Internal Revenue Code of 1986, as amended (the
"Code").
10) Designate any series of the 2009 Revenue Bonds as qualified tax-exempt
obligations pursuant to Section 265(b )(3) of the Code, if applicable.
11) Execute a declaration supplementing the Master Declaration which memorializes
the terms under which the 2009 Revenue Bonds. are issued and any other
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Attachment 1- Revenue Bond Sale
documents, and take any other action in connection with the 2009 Revenue
Bonds, that a City Official finds will be advantageous to the City.
Adopted by the Common Council of the City of Springfield this 17th day of
February ,2009, by a vote of --2..- in favor and ~ against. (1 Absent - Wylie)
Approved by the Mayor of the City of Springfield this
February ,2009.
17th day of
ATTEST
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City Recor r
Ordinance No. 6235
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Attachment 1- Revenue Bond Sale