ORDINANCE No. 176622

*  Authorize financing of housing preservation (Ordinance)

The City of Portland Ordains:

Section 1. The Council finds:

1.  The City is authorized under ORS 288.165 to enter into credit agreements and issue notes to provide interim financing for capital assets.

2.  The Act permits the City to pledge its anticipated taxes, grants, other revenues, the proceeds of any bonds or other permanent financing, or any combination of the foregoing to pay obligations issued under ORS 288.165.

3.  It will be beneficial to use interim financing for the City’s housing preservation program.

NOW, THEREFORE, the Council directs:

A.  Definitions.

Unless the context clearly requires otherwise, the following terms shall have the following meanings:

“Available General Funds” means all revenues and other funds of the City which are legally available to pay the Obligations, including property tax revenues.

“Debt Manager” means the Debt Manager of the City, the Director of the Bureau of Financial Management, the Chief Financial Officer, the Chief Administrative Officer, or the person designated by the Chief Administrative Officer to act as Debt Manager under this ordinance.

“Housing Revenues” means any revenues which are available to the City to finance housing activities.

“Lines” means revolving lines of credit or other agreements which are secured by the Notes and specify the terms under which Note proceeds will be advanced to the City.

“Notes” means the City’s full faith and credit notes which are authorized by ORS 288.165 and this ordinance, and which evidence the City’s obligation to pay the amounts due under the Lines.

“Obligations” means the Lines and the Notes.

B.  Obligations Authorized. The City is hereby authorized to issue the Notes and enter into the Lines. Proceeds of the Obligations shall be used to finance and refinance the capital costs of City’s housing preservation program, and to pay costs of obtaining the financing. The principal amount of the Notes which are outstanding at any time shall not exceed Ten Million Five Hundred Thousand Dollars ($10,500,000).

C.  Security for Notes. The Obligations shall be payable from the Available General Funds of the City, and shall be secured by a pledge of the City’s full faith and credit. In addition, the Debt Manager may pledge all or any portion of the Housing Revenues to pay the Obligations.

D.  Delegation. The Debt Manager may, on behalf of the City and without further action by the Council:

(1)  Select one or more commercial banks to provide the Lines and purchase the Notes;

(2)  Negotiate the terms of, and execute and deliver, the Lines, which may contain additional covenants to secure the Notes;

(3)  Establish the final principal amounts, maturity schedules, interest rates, sale prices, redemption terms, payment terms and dates, and other terms of the Obligations;

(4)  Issue, sell and deliver the Notes; and,

(5)  Execute any documents and take any other action in connection with the Obligations which the Debt Manager finds is desirable to carry out this ordinance.

Section 2. The Council declares that an emergency exists because there is an immediate need for refinancing for the housing preservation program; therefore, this ordinance shall be in force and effect from and after its passage by the Council.

Passed by the Council, JUL 03 2002     GARY BLACKMER

             Auditor of the City of Portland

               By /S/ Susan Parsons

                   Deputy

BACKING SHEET INFORMATION

AGENDA NO. 748-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 176622