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Res 1489 - Wtr/WWTP Fin Prog Fi COUNCIL BILL NO. 1897 RESOLUTION NO. 1489 A RESOLUTION ENTERING INTO A WATER/WASTEWATER FINANCING PROGRAM FINANCIAL ASSISTANCE AWARD CONTRACT AND LOAN AGREEMENT WITH THE STATE OF OREGON, ECONOMIC DEVELOPMENT DEPARTMENT AND AUTHORIZING THE MAYOR TO SIGN THE CONTRACT AND AGREEMENT. WHEREAS, The City of Woodburn is a "municipality" within the meaning of Oregon Revised Statutes 2858.410(1), and WHEREAS, Oregon Revised Statutes 285B.560 through 285B.569 and 285B.572 through 2858.599 (the "Act") authorizes any municipality to file an application with the Oregon Economic Development Department ("the Department") to obtain financial assistance from the Water Fund, and WHEREAS, The City of Woodburn has filed an application with the Department to obtain financial assistance for a "water project" within the meaning of the Act; and WHEREAS, The Department has approved the City of Woodburn's application for financial assistance from the Water Fund pursuant to the Act; and WHEREAS, The City of Woodburn is required, as a prerequisite to the receipt of financial assistance the Department to enter into a Financial Assistance Award Contract and a Loan Agreement with the Department; and WHEREAS, The project described in Exhibit "A" to the Loan Agreement (the "Project") is a "water project" within the meaning of the Act which is needed by and is in the public interest of the City of Woodburn; and WHEREAS, Notice relating to the City of Woodburn's consideration of the adoption of this Resolution was published at least once in a newspaper of general circulation in the City of Woodburn and such notice was published at least 14 days in advance of the adoption of this Resolution; NOW, THEREFORE, THE CITY OF WOODBURN RESOLVES AS FOLLOWS: Section 1. That the City of Woodburn enter into a Financial Assistance Award Contract, Loan Agreement and Promissory Note (the "Financing Documents") which are affixed hereto as Attachment "A" and by this reference incorporated herein and such other documents as may be required to obtain financial assistance including a loan from the Department on the condition that the principal amount of the loan from the Department to the City of Woodburn is not in excess of $515,000 and the interest rate on such loan is Page 1 - COUNCIL BILL NO. 1897 RESOLUTION NO. 1489 r.'^'.^_...."..^^...._-~ T' , ~"'..'l not to exceed 6 percent. The proceeds of the loan from the Department shall be applied solely to the "Cost of the Project" as such term is defined in the Loan Agreement. Section 2. That amounts payable by the City of Woodburn shall be payable from sources described in Section 2.07 of the Loan Agreement and Oregon Revised Statues 2858.581 which include: a. any sources of funds that are legally available to the City of Woodburn, b. the revenues, if any, of the Project, including special assessment revenues, if any, and c. the City of Woodburn's general fund including the general revenues of the city, other funds which may be available for such purpose and the cit\,'s taxing power within the restrictions of Article XI, Section 11 and 11 b of the Constitution of the State of Oregon. The obligation of the City to make payments pursuant to the Loan Agreement is a full faith and credit obligation of the city that is not subject to annual appropriation. Section 3. That the City of Woodburn covenants not to take any action or omit to take any action if the taking or omission would cause interest paid by the City pursuant to the Loan Agreement not to qualify for the exclusion from gross income provided by Section 103(a) of the Internal Revenue Code of 1986, as amended. The Mayor of the City may enter into covenants on behalf of the City to protect the tax-exempt status of the interest paid by the City pursuant to the Loan Agreement and may execute any Tax Certificate, Internal Revenue Service forms or other documents as shall be required by the Department or their bond counsel to protect the tax-exempt status of such interest. Section 4. That the City of Woodburn may reimburse expenditures for the Project with amounts received from the Department pursuant to the Financing Documents. Additionally, the City understands that the Department may fund or reimburse itself for the funding of amounts paid to the City pursuant to the Financing Documents with the proceeds of bonds issued by the State of Oregon pursuant to the Act. This Resolution shall constitute "official intent" within the meaning of Section 1.150-2 of the Income Tax Regulations promulgated by the United States Department of the Treasury with respect to the funding or the reimbursement for the funding of the costs of the Project by the City or the State with the proceeds of the City's loan pursuant to the Financing Documents and with the proceeds of any bonds issued by the State of Oregon pursuant to the Act. Section 5. That the Mayor is authorized to execute said contract, Agreement and Note and any related documents or certificates which may be required to obtain financial assistance pursuant to the said contract, agreement or note on behalf of the City. Section 6. That the City Attorney, in the course and scope of his employment is directed to render an Opinion of Municipality Counsel once the appropriate statutory form Page 2 - COUNCIL BILL NO. 1897 RESOLUTION NO. 1489 r- ----.",'.. ,,_...._~,.. . W" r""""""T is provided to the City by the Oregon Economic Development Department. Approved as to formc:f).~~ ~ Lf -'I ~ City Attorney Date APPROVED: 0;:~J;oV ~ Nancy A. Ki sey, Mayor ) Passed by the Council Submitted to the Mayor Approved by the Mayor Filed in the Office of the Recorder ATTEST: ~~..d- Ma T ant, Recorder City of Woodburn, Oregon June 8, 1998 June 9, 1998 June 9, 1998 June 9, 1998 Page 3 - COUNCIL BILL NO. 1897 RESOLUTION NO. 1489 T'"-- -.--,.---yo-'--'----'--' "