Res. 2129 - Full Faith and Credit BorrowingCOUNCIL BILL NO. 3090
RESOLUTION NO. 2129
A RESOLUTION AUTHORIZING A FULL FAITH AND CREDIT BORROWING
AND RELATED MATTERS
WHEREAS, the City of Woodburn, Marion County, Oregon (the "City") is
authorized by Oregon Revised Statutes Section 271.390 to enter into financing
agreements to finance real or personal property which the City Council
determines is needed so long as the estimated weighted average life of the
financing agreement does not exceed the estimated dollar weighted average
life of the property that is financed; and
WHEREAS, the City has identified a need to improve the City Hall
(collectively, the "Project"); and
WHEREAS, the City Council hereby determines that the Project is needed,
and that it is desirable to finance the Project pursuant to ORS 271.390; and
WHEREAS, because the financing is permitted by State law, the financing
would not be subject to the debt limit in Section 38 of the City Charter which
permits indebtedness "permitted by State Law"; and
WHEREAS, the City may make expenditures on the Project (the
"Expenditures") before the City borrows to finance the Project, 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 it borrows, in
order for the City to reimburse itself for those Expenditures from the proceeds of
a tax-exempt borrowing; NOW, THEREFORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section 1. Financing Agreement Authorized. The City is hereby authorized
to enter into a financing agreement (the "Financing Agreement") pursuant to
ORS 271.390 in an aggregate principal amount that is sufficient to provide no
more than $2,000,000 to finance the Project, plus additional amounts estimated
to be sufficient to pay costs associated with the Financing Agreement.
Proceeds of the Financing Agreement shall be used to pay costs of the Project
and costs associated with the Financing Agreement. The City Administrator or
the City Finance Director, or the person designated by the City Administrator or
City Finance Director (each of whom is referred to herein as a "City Official") are
Page 1 - Council Bill No. 3090
Resolution No.2129
hereby authorized, on behalf of the City and without further action by the City
Council, to:
A. Determine the final principal amount, interest rates, payment dates,
prepayment rights and all other terms of the financing;
B. Negotiate the final terms of, and execute and deliver the Financing
Agreement and any related documents;
C. Select a commercial bank or another lender to provide the
financing authorized by this resolution;
D. Covenant for the benefit of the lender 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 Financing Agreement to be excluded
from gross income for federal income tax purposes;
E. Designate the borrowing as a "qualified tax-exempt obligation"
pursuant to Section 265(b) (3) of the Code, if applicable;
F. Appoint and enter into agreements with Hawkins Delafield & Wood
LLP as bond counsel, and other service providers for the Financing Agreement;
and
G. 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. Security. Pursuant to ORS 287A.315, the City is authorized to
pledge its full faith and credit and taxing power within the limitations of Sections
11 and 11 b of Article XI of the Oregon Constitution to pay the amounts due
under the Financing Agreement. The City is not authorized to levy additional
taxes to pay the amounts due under the Financing Agreement.
Section 3. Declaration of Intent to Reimburse. The City hereby declares its
official intent pursuant to Section 1.150-2 of the Treasury Regulations to reimburse
itself with the proceeds of the Financing Agreement for any Expenditures paid
before the Financing Agreement is issued.
Section 4. Effective Date. This resolution is effective immediately upon
adoption.
Page 2 - Council Bill No. 3090
Resolution No.2129
Approved and adopted by the City Council at a regular meeting held on
the olff day of February, 2019.
Approved as to Form
City
Attorney
02290 -mm
Passed by the Council:
Submitted to the Mayor:
Approved by the Mayor:
Filed in the Office of the Recorder:
ATTEST:
Heather Pierson, City Recorder
City of Woodburn, Oregon
Page 3 - Council Bill No. 3090
Resolution No.2129
..... .. .......
D to
Eric Swenson, Mayor