ORDINANCE No. 177129

Authorize revenue bonds to finance various projects (Ordinance)

The City of Portland Ordains:

Section 1.  The Council finds:

1.  It is financially feasible and in the best interests of the City to authorize the issuance of bonds under the Uniform Revenue Bond Act to finance facilities improvements, property acquisition and other public purposes (the “Projects”).

2.  The City is authorized to issue revenue bonds for any public purpose under Oregon's Uniform Revenue Bond Act (ORS 288.805 to 288.945 or the “Act”). Revenue bonds issued under the Act may be payable from all or any portion of the “revenues” of the City, as defined in the Act. The Act defines “revenues” to include all fees, tolls, taxes, and other income available to the City (the “Revenues”).

3.  It is desirable to obtain $200,000,000 of bonding authority to finance the Projects.

4.  The City will cause a plan to be prepared showing that the City's estimated Revenues which are pledged to pay each series of bonds authorized by this ordinance will be sufficient to pay that series.

NOW, THEREFORE, the Council directs:

(a)  Revenue Bonds Authorized. The City hereby authorizes the issuance of not more than Two Hundred Million Dollars ($200,000,000) in aggregate principal amount of revenue bonds to finance the Projects and pay related costs. The bonds shall be issued and sold in accordance with the Act, and shall be payable solely from the Revenues which the City pledges to pay the bonds. Prior to selling the bonds the City Council shall establish by ordinance:

(ii)  Whether each series of the bonds shall be sold at public, competitive bid sale or private, negotiated sale;

(iii)  The maximum discount to be allowed upon sale of each series of the bonds;

(iv)  The schedule for repayment of the principal of each series of bonds;

(v)  The terms under which additional bonds may be issued;

(vi)  The terms by which bonds may be redeemed prior to maturity;

(vii)  The amount of any reserves to be established for each series of the bonds and the manner in which the reserves shall be funded;

(viii)  Whether all or only a portion of the Revenues shall be pledged to payment of each series of the bonds;

(ix)  Whether the pledged Revenues shall be held by a trustee, and if they are so held, the trustee's duties;

(x)  Any other terms, conditions or covenants regarding each series of the bonds, the Projects or the Revenues which are necessary or desirable to sell and deliver each series of the bonds authorized by this ordinance.

(b)  Notice; Procedure.

(i)  No bonds may be sold, and no purchase agreement for any series of the bonds may be executed, until at least sixty (60) days after publication of the Notice of Revenue Bond Authorization, which is attached to this ordinance as Exhibit ”A” (the “Notice”). The Notice shall specify the last date on which petitions may be submitted, and shall be published in at least one newspaper of general circulation in the City in the same manner as are other public notices of the City.

(ii)  If petitions for an election, containing valid signatures of not less than five percent (5%) of the City's electors, are received by the date indicated in the Notice: the question of issuing the bonds shall be placed on the ballot at the next legally available election date; and, no bonds may be sold under this ordinance until the question of issuing those bonds is approved by a majority of the electors of the City who vote on that question.

(c)  Bonds Payable Solely from Revenues. No series of the bonds shall be general obligations of the City, and neither the authorization nor issuance of any series of the bonds shall authorize the City to levy any additional taxes. Each series of the bonds shall be payable solely from the portion of the Revenues which the City pledges to payment of that series of the bonds pursuant to ORS 288.825(1) and the ordinance to be adopted by the City pursuant to Section 1(a) of this ordinance.

(d)  Termination of Authority. The City shall not issue bonds pursuant to the authority of this ordinance after January 1, 2006.

Section 2.  The Council declares that an emergency exists because the City the City requires the bonding authority described in this ordinance to conduct its future financial planning. Therefore, this ordinance shall be in force and effect from and after its passage by the Council.

BACKING SHEET INFORMATION

AGENDA NO. 1477-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177129