RESOLUTION NO. 2017-15
A RESOLUTION OF THE CITY OF HOOD RIVER, OREGON AUTHORIZING
FULL FAITH AND CREDIT BORROWINGS TO REFINANCE
OUTSTANDING OBLIGATIONS OF THE CITY
WHEREAS, on March 24, 2011 the City issued its Revenue Installment Water Bond No. 1 outstanding on the date of this resolution in the approximate principal amount of $2,923,435.47 and held by the United States Department of Agriculture (the “USDA Water Bond No. 1”) that financed water system improvements (the “Projects”); and
WHEREAS, ORS 271.390 authorizes Oregon governments to refund outstanding borrowings that financed projects that the City Council determines are needed, as long as the estimated weighted average life of the borrowing does not exceed the estimated dollar weighted average life of the real or personal property that is refinanced with the borrowing; and
WHEREAS, ORS Sections 287A.360 through 287A.375 authorize Oregon cities to refund outstanding bonds, such as the USDA Water Bond No. 1; and
WHEREAS, current interest rates may be lower than the interest rates that are payable on the USDA Water Bond No. 1 and the City may be able to reduce debt service costs by refunding all or a portion of the USDA Water Bond No. 1;
WHEREAS, the City has received a proposal from Columbia State Bank to provide financing, which is attached to this resolution as Exhibit A (the “Columbia Bank Term Sheet”).
NOW, THEREFORE, THE CITY OF HOOD RIVER RESOLVES AS FOLLOWS:
Section 1. Determination of Need. The City Council hereby determines that the Projects were needed at the time they were financed and that they remain needed.
Section 2. Financing Authorized. The City is hereby authorized to enter into a financing agreement (the “Financing Agreement”) with Columbia State Bank pursuant to terms and conditions outlined in the Columbia Bank Term Sheet to refinance all or any portion of the Projects pursuant to ORS Section 271.390 and the relevant provisions of ORS Chapter 287A. The Financing Agreement may be issued in an amount that is sufficient to refund all or any portion of the USDA Water Bond No. 1 and to pay estimated costs related to issuing the Financing Agreement and refunding the USDA Water Bond No. 1.
Section 3. Delegation. The Finance Director, the City Manager, or the person designated by either the Finance Director or the City Manager to act on behalf of the City under this resolution (each of whom is referred to in this resolution as a “City Official”) may, on behalf of the City and without further action by the City Council, subject to limitations of this Resolution and the terms and conditions described in the Columbia Bank Term Sheet:
a. Determine the final principal amount, payment dates and other terms of the Financing Agreement and negotiate, execute and deliver the Financing Agreement and a promissory note to evidence amounts due under the Financing Agreement;
b. Covenant to comply with all provisions of the Internal Revenue Code of 1986, as amended (the “Code”), that are required for the interest paid under the Financing Agreement to be excluded from gross income for federal income tax purposes;
c. Designate the Financing Agreement as a “qualified tax-exempt obligation” pursuant to Section 265(b)(3) of the Code, if applicable;
d. Execute and deliver any other certificates or documents and take any other actions that the City Official determines are desirable to carry out this Resolution.
Section 4. Security. The Financing Agreement may constitute unconditional obligations of the City, which are payable from all legally available funds of the City. Pursuant to ORS 287A.315 the City Official may pledge the City’s full faith and credit and taxing power within the limitations of Sections 11 and 11b of Article XI of the Oregon Constitution to pay amounts due under the Financing Agreement.
Section 5. Effective Date. This resolution is effective upon its adoption.
Adopted by the City Council this 23rd day of October, 2017.
Approved as to form: