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HomeMy WebLinkAbout1990-47 Issuance & Sale of GO Bonds RESOLUT ION NO. 90 - '-f 1 A RESOLUTION OF THE CITY OF ASHLAND, OREGON PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS TO FINANCE CERTAIN PUBLIC IMPROVEMENTS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $665,000 AND DECLARING AN EMERGENCY WHEREAS, the City of Ashland, Oregon (the "City") has caused certain improvements in the City to be constructed, each at the expense of the abutting property owners, and has duly assessed the costs of such improvements upon the lots, blocks and parts thereof, and parcels of real property being directly benefited by these local improvements in accordance with the provisions of law; and WHEREAS, applications to pay the assessments in installments, as provided by Oregon Revised Statutes 223.205 to and including 223.295, have been duly filed by the owners of the benefited properties with additional applications expected to be filed prior to the issuance of any bonds (such applications already filed and those additional applications filed prior to the issuance of any bonds are collectively referred to herein as "the Applications"); and WHEREAS, each of the Applications shall be for improvements in the sum of $ 2 5.00 or more, and the amoun t remain ing unpa id upon each assessment for which Applications are filed, together with the unpaid balance of any previous assessments for improvements against the same property, shall not exceed twice the assessed value of the benefited real property as shown by the last county tax roll; and WHEREAS, each Application provides that the property owner agrees to pay the assessment in equal semi-annual installments over a term of 10 years, together with interest at the rate prescribed by law, and each Application has stated that the applicant and property owner does waive all irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the improvements to be constructed for which the assessment is levied and in apportionment of the cost thereof; and RESOLUTION - Page 1. WHEREAS, the City now wishes to issue bonds pursuant to Oregon Revised Statutes 223.235 to and including 223.260, to finance the unpaid assessments. NOW, THEREFORE, BE IT RESOLVED: Section 1. Authorization of Issuance. The City, a municipal corporation of the State of Oregon, does hereby authorize the issuance and sale of its negotiable general obligation improvement bonds in the aggregate principal amount not to exceed Six Hundred Sixty Five Thousand Dollars ($665,000) for the purpose of funding costs incurred or to be incurred by the City in the making of local improvements (as defined in Oregon Revised Statutes 223.387) within the City. Assessments against the benefited properties for the costs of the improvements have been duly levied upon the real property directly benefited thereby and such assessments have been duly docketed in the lien docket of the City and are liens against the several pieces of benefited property and the owners of several parcels of benefited property affected by such assessments have heretofore filed, or will file prior to the issuance of any bonds, in writing their Application to pay the assessments in installments as provided by law, all as more fully set forth in Section 2 of this Resolution. Section 2. Projects Being Financed. That the particular improvements to which the Appl ications apply and the date of the ordinance assessing the same are as follows, to-wit: Project Ord inance Da te Current Balance Mistletoe Road September 12, 1990 $137, ,UO. 40 Alley-Lincoln Street September 12, 1990 908. 97 Terrace Street September 12, 1990 190,257.48 Orchard & Sunnyview Streets September 12, 1990 58,195.27 Ashland Mine Road September 12, 1990 65,925.37 Hersey North Main & Hersey Water September 12, 1990 86,113.99 Nevada September 12, 1990 29,751.00 Wightman September 12, 1990 93, :21 7.86 $661, l310. 34 Section 3. Maximum Interest Rate. The Bonds shall be negotiable general obligation improvement bonds of the City shall bear a maximum true effective rate of interest of not exceed nine percent (9%) per annum, payable semi-annually. Bonds shall be payable in any coin or currency which at the and to The time RESOLUTION - Page 2. of payment is legal tender for the payment of public and private debts within the United States of America. Section 4. Terms of Bonds. The Bonds shall be entitled "City of Ashland, Jackson County, Oregon General Obligation Improvement Bonds, Series 1990" (the "Bonds") and shall bear the manual or facsimile signature of the Mayor of the City and the manual or facsimile signature of the Ci ty Recorder of the Ci ty. In addition, the City does hereby request and authorize the Bond Registrar to execute the Certificate of Authentication as of the date of delivery of the Bonds. The Bonds shall be issued in fully registered form, shall be in denominations of Five Thousand Dollars ($5,000) each, or integral multiples thereof, except for a single bond which may be in an odd amount, shall be dated November 1, 1990, shall be numbered sequentially beginning with R-l, and shall mature in annual installments on the 1st day of November, approximately as follows: YEAR AMOUNT 1991 $ 95,000 1992 90,000 1993 60,000 1994 60,000 1995 60,000 1996 60,000 1997 60,000 1998 60,000 1999 60,000 2000 60,000 $665,000 The City Council hereby authorizes the City Administrator or the Director of Finance to modify the principal amount and maturities of the Bonds to account for any Applications filed during the period after the enactment of this Ordinance and the publishing of the Notice of Sale~ provided, however, that the maximum amount of Bonds that may be issued pursuant to this Ordinance may not exceed $665,000. Section 5. Payment of Bonds. The principal of thE~ Bonds shall be payable upon delivery of the Bonds at maturity at the principal corporate trust office of the Paying Agent in Portland, Oregon. Payment of each installment of inten~st due on November 1 and May 1, of each year commencing May 1, 1991 shall be made by check or draft of the Paying Agent mailed to the registered owner thereof whose name and address appears on the registration books of the City maintained by the Paying RESOLUTION - Page 3. Agent as of the close of business on the 15th day of the month next preceding the interest payment date. If such date is not a business day, then the business day immediately preceding such 15th day of the month shall be utilized as the record date. Section 6. Optional Redemption. The Bonds of this issue maturing after November 1, 1997 are redeemable at the option of the Ci ty on November 1, 1997 and on any interest payment date thereafter at par together with accrued interest to the date fixed for redemption. Such Bonds are redeemable, in whole or in part, in integral multiples of $5,000 in inverse order of maturity and by lot within a maturity. Notice of redemption shall be published as provided by law and shall be given by first class mail not less than thirty (30) days prior to the date fixed for redemption to the registered owners of each Bond to be redeemed at the address shown on the registration books of the City. Bonds are redeemable at the office of the Paying Agent. Section 7. Form of Bonds. The Bonds shall be issued substantially in the form set forth in Exhibit "A" attached hereto and incorporated herein by this reference. Section 8. Appointment of Paying Agent and Registrar. The City does appoint and designate United States National Bank of Or egan, Portl and, Or egan, as the Paying Agent and Reg istr ar of the Bonds. The Director of Finance is authorized to negotiate and execute on behalf of the City a Paying Agent and Registrar Agreement. The Agreement shall provide for compliance '-lith Oregon Administrative Rule 170-61-010. Section 9. Transfer of Bonds. The Bonds are transferable, or subject to exchange, for fully registered Bonds in the denomination of $5,000, or integral multiples thereof, by the registered owner thereof in person, or by the owner's attorney duly autho r ized in wr i ting, a t the 0 ff ice of the Bond Reg istr ar . The Paying Agent shall maintain a record of the names and addresses of the registered owners of the Bonds. The records of registered bond ownership are not public records within the meaning of Oregon Revised Statutes 192.410(4). All bonds issued upon transfer, or in exchange, for Bonds shall be valid general obligations of the City evidencing the same debt and entitled to the same benefits as the Bonds surrendered for such exchange or transfer. All fees, expenses and charges of the Paying Agent and Registrar shall be payable by the City. The Registrar shall not be required to transfer or exchange any Bond called or being called for redemption or after the close of business on the 15th day of the month next preceding any interest payment date. RESOLUTION - Page 4. Section 10. Printing of Bonds. The Director of Finance is authorized to contract for the printing of the Bonds. The Director of Finance may provide for the printing of, in addition to the original issue of Bonds, additional bonds to be printed in blank form as to registration and to be designated by appropr ia te number for the Reg istr ar fo r del iver y to the registered owner upon transfer or exchange of Bonds. The additional bonds shall be dated as of November 1, 1990, shall be signed by the facsimile signature of the present Mayor of the City and the present City Recorder of the City and the Registrar shall manually sign the Certificate of Authentication as of the date of the transfer of the Bonds. Section 11. Security for Bonds. The Bonds are secured in part by the payments received by the Ci ty from the owners of the benefi ted property who have filed appl ications to pay the amount of the assessments in installments, by the lien of the assessment upon the real property directly benefited as docketed in the records of the City and by the obligation of the City to levy unlimited ad valorem taxes upon all taxable property within the City in the event insufficient revenues from other legally available revenues are insufficient to pay the Bonds. ~rhe City each year shall levy a direct property tax in such amount as will be sufficient to pay in full the principal of and the interest upon the Bonds at the respective due dates thereof after first taking into consideration other sources and revenues legally available for the payment thereof. Section 12. Designation as Qualified Tax-Exempt Obligation. The City hereby designates the Bonds for purposes of paragraph (3) of Section 265(b) of the Internal Revenue Code of 1986, as amended, (the "Code") as "qual ified tax-exempt obligations" and covenants that the Bonds do not constitute private activity bonds as defined in Section 141 of the Code, and that not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable under Section 103(a) of the Code from gross income for federal income tax purposes (excluding, however, private activity bonds other than qualified SOl(c) (3) bonds) including the Bonds, have been or shall be issued by the City, including all subordinate entities of the City, if any, during the calendar year 1990. Section 13. Covenant as to Arbitrage. The proceeds of the Bonds shall be used and invested in such manner that the Bonds shall not become "arbitrage bonds" within the meaning of Section 148 of the Code and the regulations issued thereunder. The City covenants that, within its lawful powers, it will not do, and will refrain from doing, anything in the issuance of the Bonds and in the investment and expenditure of the proceeds thereof which would resul t in the interest on the Bonds becomin9 taxable for federal income tax purposes. RESOLUTION - Page 5. Section 14. Exception for Small Governmental Units. The City finds and determines that the Bonds comply with thE~ statutory requirements of Section 148(f) (4)(C) of the Code in that the City is a governmental unit having general taxing powers, the Bonds are not being issued for a private activity purpose, more than 95% of the net proceeds of the Bonds will be used for local governmental activities of the City, and the aggregate face amount of all tax-exempt obligations which will be issued by the City during the calendar year 1990 is not reasonably expected to exceed $5,000,000. Section 15. Sale of Bonds. The Director of Finance is authorized to establish a date of sale and to advertise the Bonds for public sale at a price not less than 98% of par value thereof and accrued interest to date of delivery. The Notice of Sale shall be published as provided by law. The Notice of Sale shall specify that the City reserves the right to reject any and all bids, and in other respects the Notice shall comply with the provisions of Chapter 287 of Oregon Revised Statutes, as amended. All rates bid must be in integral multiples of one one-thousandth of one percent (.001%). All Bonds of the same maturity must bear a single rate of interest from the date of issue to maturity. The interest rate for any single maturity may not exceed nine percent (9%). Section 16. Appointment of Bond Counsel. Messrs. Rankin Mersereau and Shannon of Portland, Oregon are hereby appointed Bond Counsel for the issuance of the Bonds. See tion 17. Appo in tmen t of Finane ial Adv iso r. Moore, Breithaupt & Associates is hereby appointed financial advisor to the City for the issuance of the Bonds. Section 18. Preliminary and Final Official Statement. The City shall prepare a preliminary official statement for the Bonds, which shall be available for distribution to prospective bidders not later than the date on which the notice of bond sale is first published. When advised by staff that the final official statement does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained in the official statement not misleading in the light of the circumstances under which they are made, the Director of Finance is authorized to certify the accuracy of the official statement on behalf of the City. Section 19. Execution of Documents. The Director of Finance is authorized to execute the Certificate as to Arbitrage and any and all additional documents which may be reasonably required to issue, sell and deliver the Bonds. RESOLUTION - Page 6. Passed by the City Council of the City of Ashland this 16th day of October, 1990. AYES & NAYS 0 ABSTAIN 0 Signed and approved by the Mayor of the City of Ashland this ~ day of October, 1990. ~),-"~~ ayo r ~ ~ ATTEST: ~ ;Lp~~ C i Y Record er (A-c-T~/Jtfi) RESOLUTION - Page 7.