HomeMy WebLinkAbout2015-28 Financing for Garfield Park Improvements
RESOLUTION NO. 2015- ;~8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND,
OREGON, AUTHORIZING FINANCING FOR GARFIELD PARK
IMPROVEMENTS
RECITALS:
The City Council finds as follows:
A. The City wishes to finance improvements to the park system, including Garfield Park
(the "Project") at the request and direction of the Ashland Parks & Recreation Commission.
B. The City is authorized by ORS 271.390 to enter into financing agreements in order to
finance the cost of any real or personal property that the City determines is needed.
C. The financing is expected to bear "tax-exempt" interest (interest that is excluded from
gross income under Section 103 of the Internal Revenue Code of 1986, as amended) and the
rules of the United States Internal Revenue Service require the City to declare its official intent
to reimburse itself for amounts that the City will spend before the tax-exempt financing is issued.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
Section 1. Borrowing Authorized. Pursuant to ORS 271.390, the City is authorized to enter into a
borrowing in an aggregate principal amount of not more than $900,000 (the "Financing").
Proceeds of the Financing shall be used to finance the Project and related expenses and pay costs
associated with the Financing. The Finance Director, the City Administrator or the designee of
the Finance Director or the City Administrator (each of whom is referred to herein as a "City
Official"), on behalf of the City and without further action by the City Council, may:
(1) Issue the Financing from time to time in one or more series.
(2) Select one or more other purchasers and negotiate the sale of each Financing with those
purchasers. Subject to the limitations in this resolution, each Financing may be in such form and
contain such terms as the City Official may approve.
(3) Determine the final principal amount, interest rates, payment dates, prepayment rights
and all other terms for each Financing.
(4) Negotiate, execute and deliver a note to evidence amounts due under each Financing.
(5) Execute and deliver one or more financing agreements, credit facilities or other
documents that describe the terms and administrative provisions relating to each Financing. The
amounts due under each Financing may also be represented by a note.
(6) Enter into additional covenants for the benefit of the purchaser of each Financing that the
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City Official determines are desirable to obtain favorable terms of each series of the Financing.
(7) Covenant for the benefit of the owners of the Financings to comply with all provisions of
the Internal Revenue Code of 1986, as amended (the "Code") which are required for the interest
paid under the Financings to be excluded from gross income for federal income tax purposes.
(8) Designate the Financings as "qualified tax-exempt obligations" pursuant to Section
265(b)(3) of the Code, if applicable.
(9) Execute and deliver any other certificates or documents and take any other actions which
the City Official determines are desirable to carry out this resolution.
Section 2. Finding of Need. Pursuant to ORS 271.390, the City Council determines the Project is
needed to provided services to the City and its citizens. The Project will consist of real or
personal property.
Section 2. Security. Pursuant to Oregon Revised Statutes Section 287A.315, the City Official
may pledge the City's full faith and credit and taxing power within the limitations of Sections 11
and l lb of Article XI of the Oregon Constitution to pay the amounts due under the Financing.
The City is not authorized to levy additional taxes to pay the amounts due under the Financings.
The City's intent is to use Food & Beverage Tax proceeds as the primary revenue source to pay
debt service, however, those amounts are not pledged to pay the Financing.
Section 7. Reimbursement Declaration. The City hereby declares its official intent to reimburse
itself with the proceeds of the Financing for any amounts the City spends on the Project before
the Financing is issued.
Section 4. Effective Date. This resolution takes effect upon signing by the Mayor.
This res lution was read by title only in accordance with Ashland Municipal Code §2.04.090
duly P SSED and ADOP ED this _ day of 2015.
Barbara Christensen, City Recorder
SIGNED and APPROVED this day of , 2015.
r
J hn Str4aberg, Mayor C
Revi wed as to for
a id Lohman, City Attorney
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