HomeMy WebLinkAbout3079 Full Faith & Credit Bonds
ORDINANCE NO. Q'-) 01
AN ORDINANCE AUTHORIZING FULL FAITH AND CREDIT
BONDS FOR MULTIPLE PURPOSES
WHEREAS, the City is authorized to issue revenue bonds for a public purpose by ORS
287A.150 (the "Act"), which states that those bonds may be payable from all or any portion of
the "revenue" of the City, as defined in ORS 287A.00I(16); and,
WHEREAS, ORS 287A.001(16) defines "revenue" to mean all fees, tolls, excise taxes,
assessments, property taxes and other taxes, rates, charges, rentals and other income or receipts
derived by a public body or to which a public body is entitled; and,
WHEREAS, the City may authorize revenue bonds under the Act by nonemergency.Ordinance,
but may not sell the revenue bonds under the Act until the period for referral of the
nonemergency ordinance authorizing the revenue bonds has expired; and,
WHEREAS, if a nonemergency ordinance authorizing the revenue bonds is referred, the City
may not sell the revenue bonds unless the voters approve the revenue bonds; and,
WHEREAS, the City desires to issue revenue bonds under the Act that are secured by all
lawfully available funds of the City and a pledge of the City's full faith and credit and taxing
power, as permitted by ORS 287A.315, to finance street, water, wastewater, storm drainage and
parks projects and to refinance a portion of the City's outstanding 2003 Water Revenue Bonds;
and,
WHEREAS, the City is also authorized to issue full faith and credit revenue bonds to refund full
faith and credit revenue bonds pursuant to ORS 287A.360 to 287A.375; and,
WHEREAS, the City may be able to obtain debt service savings by issuing full faith and credit
bonds under ORS 287A.360 to 287A.375 to refinance the City's outstanding Ashland Fiber
Network Full Faith and Credit Bonds, Series 2004; now, therefore,
THE PEOPLE OF THE CITY ASHLAND DO ORDAIN AS FOLLOWS:
Section 1. Revenue Bonds Authorized under the Act. The City hereby authorizes the
issuance of revenue bonds pursuant to the Act in amounts sufficient to provide up to the
following amounts for each of the following purposes, plus additional amounts sufficient to pay
capitalized interest and estimated costs related to those revenue bonds:
Purpose Amount
Financing for street, water, wastewater, storm $4.95 million
drainage and parks projects
Refinancing of a portion of the City's $1.8 million
outstanding 2003 water revenue bonds
Ordinance No. Page 1 of 3
A. The estimated principal amount of revenue bonds to be sold pursuant to this Section 1
does not exceed $7.0 million.
B. The revenue bonds authorized by this Section 1 shall be payable from all lawfully
available funds of the City and shall be secured by the City's full faith and credit and taxing
power within the limitations of Article XI, Sections 11 and 11 b of the Oregon Constitution.
i
C. No bonds authorized by this Section 1 may be sold and no purchase agreement for any of
those bonds may be executed until the period of referral of this nonemergency ordinance has
expired and this ordinance takes effect. If this ordinance is referred, the City may not sell the
bonds authorized by this Section 1 unless the voters approve this ordinance.
Section 2. Refunding Bonds. The City hereby authorizes the issuance of revenue bonds
pursuant to ORS 287A.360 to 287A.375 to refund the City's outstanding Ashland Fiber Network
Full Faith and Credit Bonds, Series 2004 (the "AFN Bonds").
A. The refunding bonds authorized by this Section 2 may be issued in an amount sufficient
to refund all or any portion of the AFN Bonds and to pay estimated costs related to those
refunding bonds.
B. The refunding bonds authorized by this Section 2 shall be payable from all lawfully
available funds of the City and shall be secured by the City's full faith and credit and taxing
power within the limitations of Article XI, Sections 11 and 11 b, of the Oregon Constitution.
Section 3. Delegation. After this ordinance takes effect the City Manager, the Finance
Director or the person designated by the City Manager or the Council to act on behalf of the City
under this ordinance (each of whom is referred to in this ordinance as a "City Official") may, on
behalf of the City and without further action by the Council:
A. Issue the revenue bonds authorized by Section 1 or Section 2 of this ordinance
(collectively, the "Bonds") in one or more series, which may be sold at different times.
B. Participate in the preparation of, authorize the distribution of, and deem final preliminary
and final official statements or other disclosure documents for each series of the Bonds.
C. Subject to the limits in this ordinance, establish the final principal amounts, maturity
schedules, interest rates, sale prices, redemption terms, payment terms and dates, record dates
and other terms for each series of the Bonds, and either publish a notice of sale, receive bids and
award the sale of each series to the bidder complying with the notice and offering the most
favorable terns to the City, or select one or more underwriters or lenders and negotiate the sale
of any series with those underwriters or lenders.
D. Undertake to provide continuing disclosure for any series of the Bonds in accordance
with Rule 15c2-12 of the United States Securities and Exchange Commission.
Ordinance No. Page 2 of 3
E. Finalize the terms of, execute, and deliver bond declarations or other documents that
describe the terms of each series of the Bonds. The bond declarations or other documents may
also contain covenants for the benefit of the owners.
F. Appoint and enter into agreements with service providers for the Bonds, including
verification agents and escrow agents to accomplish the refunding.
G. Apply for ratings for each series of Bonds, determine whether to purchase municipal
bond insurance or obtain other forms of credit enhancements for each series of Bonds, enter into
agreements with the providers of credit enhancement, and execute and deliver related documents.
H. Issue any qualifying series of Bonds as "tax-exempt bonds" bearing interest that is
excludable from gross income under the Internal Revenue Code of 1986, as amended, (the
"Code") and enter into covenants for the benefit of the owners of those series to maintain the
excludability of interest on those series from gross income under the Code.
1. Issue any qualifying series of Bonds as "federal subsidy bonds" that are eligible for
federal interest rate subsidies but bear interest that is includable in gross income under the Code
and take any actions that are required to qualify for those federal interest rate subsidies.
J. Issue any series of Bonds as "taxable bonds" bearing interest that is includable in gross
income under the Code.
K. Designate any series of Bonds as a qualified tax-exempt obligation pursuant to
Section 265(b)(3) of the Code, if applicable.
L. Execute any documents and take any other action in connection with the Bonds that the
City Official finds will be advantageous to the City.
The foregoing ordinance was first read by t' le only in accordanc with Article X,
Section 2(C) of the City Charter on the day of 2012,
and d y PASSED and ADOPTED this day of 2012.
0~ A,;~
Barbara M. Christensen, City Recorder
SIGNED and APPROVED this/4Kday o~)~a[l~s1 2012.
J hn Str mberg, Mayor
Revie as to form:
Di H. Lo n, City Attorney
Ordinance No. Page 3 of 3