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HomeMy WebLinkAbout2004-27 AFN BondsRESOLUTION NO. '2- OQ)~ ~' '~--1 A RESOLUTION OF CITY OF ASHLAND, JACKSON COUNTY, OREGON, AUTHORIZING THE SALE OF BONDS FOR THE ASHLAND FIBER NETWORK. BE IT RESOLVED by the City Council of the City of Ashland that: Section 1. Findings The City Council finds as follows: 1.1 The City Council enacted Ordinance No. 2909, authorizing the City of Ashland (the "City") to issue up to $16,000,000 of bonds under ORS 288.805 to 288.945. ,Ordinance No. 2909 authorizes the bonds to finance costs of the Ashland Fiber Network,. including costs of refinancing existing bank loans and interfund loans for the Ashland Fiber Network (the "Projects"), and costs of issuing the bonds. 1.2 No petitions were filed to refer Ordinance No. 2909 to the voters and the City is now authorized to issue the bonds described in that ordinance. 1.3 The City now desires to sell the bonds described in Ordinance No. 2909, and adopts this resolution to authorize the sale and delivery of those bonds. Section 2. Bonds Authorized; Security 2.1 The City hereby authorizes the sale and delivery of its Ashland Fiber Network Full Faith and Credit Bonds, Series 2004 (the "Series 2004 Bonds") in accordance with .City Ordinance No. 2909 and this resolution to finance the Projects. The aggregate principal amount of the Series 2004 Bonds shall not exceed Sixteen Million Dollars ($16,000,000). The Series 2004 Bond may pay interest which is includable in gross income under Section 103 of the Internal Revenue Code of 1986, as amended. 2.2 The Series 2004 Bonds shall be secured by the full faith and credit of City. Revenues of the Ashland Fiber Network System that remain after payment of costs and expenses of that system shall be used to pay the Series 2004 Bonds before other funds of the City are used to pay the Series 2004 Bonds. Section 3. Delegation 3.1 The Finance Director, the City Administrator, or the person designated by the Finance Director or the City Administrator to act on behalf of the City under this Resolution (any of whom is referred to in this resolution as a "City Official") may, on behalf of the City: (i) 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 Series 2004 Bonds. (ii) Establish the final principal amounts, maturity schedules, interest rates., sale prices, redemption terms, payment terms and dates, record dates and other tenrns for the Series 2004 Bonds, and either publish a notice of sale, receive bids and award the sale of that series to the bidder complying with the notice and offering the most favorable terms to the City, or select one or more underwriters and negotiate the sale of that series with those underwriters. (iii) Undertake to provide continuing disclosure for the Series 2004 Bonds in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission. (iv) Apply for and purchase municipal bond insurance, reserve sureties or other forms of credit enhancements for the Series 2004 Bonds, and enter into related agreements. (v) Finalize the terms of, execute and deliver a Series 2004 Bond Declaration, which describes the terms of the Series 2004 Bonds. (vi) Appoint and enter into agreements with paying agents other professionals and service providers. (vii) Execute any documents and take any other action in connection with tlae Series 2004 Bonds which the City Official finds will be advantageous to the City. Section 4. Effective Date This resolution shall take effect upon signing by the Mayor. This resolution was read by title only in accordance with Ashland Municipal Code {}2.04.090 duly PASSED and ADOPTED this 20th day of July, 2004. Barbara Christensen, City Recorder SIGNED and APPROVED this 20th day of July, 2004. Alan W. DeBoer, Mayor Page 2 of 2 ORI IS C SO. 7 qoq AN ORDINANCE OF THE CITY OF ASHLAND, JACKSON COUNTY, OREGON, AUTHORIZING THE ISSUANCE OF BONDS TO FINANCE THE ASHLAND FIBER NETWORK. The people of the City of Ashland do ordain as follows: Section 1. Findings. The City Council finds: A. The City is authorized to issue revenue bonds for any public purpose under Oregon's Uniform Revenue Bond Act (ORS 288.805 to 288.945 or the "Act"). Revenue bonds issued under the Act may be payable from all or any portion of the "revenues" of the City, as defined in the Act. The Act defines "revenues" to include all fees, tolls, taxes, and other income available to the City. B. The Act permits the City to authorize revenue bonds by enacting a nonemergency ordinance. The City may not sell those revenue bonds for thirty days after the nonemergency ordinance is enacted. If the nonemergency ordinance is referred to a vote during that thirty day period, the City may not sell the revenue bonds described in that ordinance unless the voters approve the ordinance. C. The City enacts this nonemergency ordinance to authorize the issuance of up to $16,000,000 of bonds to finance the Ashland Fiber Network. D. The City will cause a plan to be prepared showing that the estimated revenues that are pledged to pay the bonds will be sufficient to pay those bonds. Section 2. Revenue Bonds Authorized. The City hereby authorizes the issuance of not more than Sixteen Million Dollars ($16,000,000) in aggregate principal amount of revenue bonds under the Act to finance costs of the Ashland Fiber Network, including costs of refinancing existing bank loans and interfund loans for the Ashland Fiber Network, and costs of issuing the revenue bonds. The bonds shall be payable from the revenues of the Ashland Fiber Network, and the,, City ~,ay pledge~those re:,enues~nues of the City's electric' system, and any other revenues (as defined in the Act) to pay theBrmds authorized by this ordinance. Prior to selling the bonds the City Council shall adopt a resolution or ordinance establishing the terms and condition~ of the bonds pursuant to ORS 288.520, or delegating the authority to establish those terms and'conditions. Section 3. No Additional Taxes Authorized; Bonds Payable Solely from Revenues. Neither the authorization nor the issuance of the bonds described in Section 2 of this ordinance shall authorize the City to levy any additional taxes. Section 4. Procedure. The bonds described in Section 2 of this ordinance shall not be sold until the period of referral of this nonemergency ordinance has expired. If this ordinance is referred, the City may not sell the bonds described in Section 2 of this ordinance unless the voters approve this ordinance. The foregoing ordinance was first READ by title only in accordance with Article X, Section 2(C) of the City Charter on the 1 st day of June, 2004, and duly PASSED and ADOPTED this Barbara Christensen, City Recorder SIGNED and APPROVED this ///~ · · Re~ed to : Pau o e, tg~y tomey day of June, 2004. Alan W. DeBoer, Mayor