HomeMy WebLinkAboutOrdinance 6259 07/06/2010
ORDINANCE NO. 6259
AN ORDINANCE OF THE CITY OF SPRINGFIELD" LANE COUNTY,
OREGON, AUTHORIZING THE ISSUANCE OF SEWER REVENUE BONDS
FORA TOTAL OF NOT TO EXCEED $10,000,000.
WHEREAS, Oregon Revised Statutes ("ORS") Section 287 A.I50 and related provisions of ORS
Chapter 287 A (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 finds it financially feasible and in the best interests of the City to
authorize the issuance of sewer revenue bonds to finance capital improvements to the City's
wastewater and storm water system, including but not limited to, providing new storm water
management facilities and modernizing and rehabilitating existing storm water management
facilities (the "Projects"); and,
WHEREAS, the City has issued sewer revenue bonds that are secured by a first lien on the net
revenues of the wastewater and storm water system (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 Ten Million Dollars
($10,000,000) 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 Ten Million Dollars ($10,000,000) in aggregate principal amount of revenue
bonds (the "2010 Revenue Bonds") under the Statutes. The proceeds of the 2010 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 finance other costs related to issuing
the 2010 Revenue Bonds. The 2010 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 a:uthorization nor the issuance of the 2010 Revenue Bonds
described in Section 1 of this ordinance shall authorize the City to levy any additional taxes.
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6259
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Revenue Bond Sale
Section 3. Procedure. The 2010 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 is referred, the City may not sell the 2010 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 final the
preliminary and final official statements and any other disclosure documents for
the 2010 Revenue Bonds.
2) Establish the final principal amount, maturity schedule, interest payment dates, ,
interest rates, denominations and all other terms for the 2010 Revenue Bonds.
3) Sell and issue the 2010 Revenue Bonds in one or more series.
4) Solicit competitive bids for any of the 2010 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 2010 Revenue Bonds to those underwriters or lenders.
5) Undertake to provide continuing disclosure for the 2010 Revenue Bonds in
accordance with Rule 15c2-12 of the United States Securities and Exchange
Commission.
6) Apply for ratings for the 2010 Revenue Bonds.
7) Apply for and purchase municipal bond insurance, reserve sureties or other forms
of credit enhancements for the 2010 Revenue Bonds, and enter into related
agreements.
8) 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.
9) Appoint and enter into agreements with paying agents and other professionals and
service providers.
10) Issue the 2010 Revenue Bonds as taxable "Build America Bonds" or other types
of bonds that were authorized by the American Recovery and Reinvestment Tax
Act of 2009 which are eligible for federal interest subsidies or tax credits.
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Revenue Bond Sale
11) Enter into covenants to maintain the tax status of the 2010 Revenue Bonds under
the Internal Revenue Code of 1986, as amended (the "Code").
12) Designate any series of the 2010 Revenue Bonds as qualified tax-exempt
obligations pursuant to Section 265(b )(3) of the Code, if applicable.
13) Execute and deliver a declaration supplementing the Master Declaration which
memorializes the terms and administrative provisions under which the 2010
Revenue Bonds are issued. The declaration may reserve to the City the right to
make subsequent changes to the Master Declaration that the City Official
determines may benefit the City.
14) Execute and deliver any agreements or certificates and take any other action in
connection with the 2010 Revenue Bonds that a City Official finds will be
advantageous to the City.
Adopted by the Common Council of the City of Springfield this 6th day of July, 2010, by
a vote of ~ in favor and ~ against.
Approved by the Mayor of the City of Springfield this 6th day of July, 2010.
ATTEST
CitY~~
REVIEWED & APPROVED
AS\TO FORM
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DATE' ~ '<.0 0
OFFICE OF CITY ATTORNEY
Ordinance No.
6259
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Revenue Bond Sale