RESOLUTION NO. 2011-06
A RESOLUTION OF THE CITY OF HOOD RIVER, HOOD RIVER COUNTY, OREGON, AUTHORIZING A BORROWING FOR THE CITY’S WATER SYSTEM IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,099,000.
WHEREAS, the City of Hood River (the “City”) is authorized by ORS 287A.180 to borrow to provide interim financing for capital projects to be undertaken by the City Council;
WHEREAS, such borrowings must mature not later than five years after they are issued;
WHEREAS, the City seeks to finance improvements to the City’s water system including engineering, construction and administrative costs of the City’s Phase II water system improvement project (the “Project”);
WHEREAS, the City desires to borrow up to $13,099,000 to provide interim financing for the Project;
NOW, THEREFORE, the City Council of the City of Hood River, Hood River County, Oregon, resolves as follows:
Section 1. Authorization. The City hereby authorizes a borrowing under ORS 287A.180 (the “Loan”) in a principal amount of not more than $13,099,000. The Loan shall be a special obligation of the City and shall be payable solely by the net revenues of the water system, the proceeds of any long term financing for the Project, and other amounts pledged pursuant to Section 2(4) of this Resolution. The Loan may be in the form of a loan agreement or line of credit. Proceeds of the Loan shall be used to pay costs of the Project and costs related to the Loan.
Section 2. Delegation. The Mayor, City Manager, City Finance Director, or a person designated by the Mayor, City Manager or City Finance Director to act on behalf of the City pursuant to this resolution (each of whom is referred to in this resolution as the “City Official”) may, on behalf of the City and without further action by the City Council:
(1) Issue the Loan from time to time in one more series;
(2) Select one or more purchasers and negotiate the sale of each series of the Loan with those purchasers;
(3) Establish the final principal amount, maturity schedule, interest rates, sale price, redemption provisions, covenants, administrative provisions and other terms for each series of the Loan, subject to the limitations of this Resolution;
(4) Execute and deliver one or more loan agreements, credit facilities, declarations, or other documents which pledge the net revenues of the City’s water system, proceeds of any long term financing for the Project, any other amounts the City Official deems desirable, contain covenants approved by a City Official to protect the security for each series of the Loan, and describe the terms and administrative provisions relating to each series of the Loan;
(5) Execute a note representing the City’s obligations under each series of the Loan;
(6) Enter into covenants to maintain the excludability of interest on each series of the Loan from gross income under the Internal Revenue Code of 1986, as amended (the “Code”), and designate each series as a “qualified tax-exempt obligation” under Section 265(b) of the Code;
(7) Execute and deliver the Loan documents and take any other actions which a City Official determines are reasonably required to carry out this Resolution.
Section 3. Effective Date. This resolution is effective upon its adoption.
ADOPTED by the City Council of the City of Hood River, Hood River County, Oregon this 7th day of February, 2011.
CITY OF HOOD RIVER
HOOD RIVER COUNTY, OREGON
Arthur Babitz, Mayor
Jennifer Gray, City Recorder