ORDINANCE No. 178143

Authorize bonds to refund outstanding Series 1995 water revenue bonds and Series 1993 general obligation water refunding bonds (Ordinance)

The City of Portland ordains:

Section 1. The Council finds:

1.  The City is authorized by ORS 288.592 to issue bonds to refund outstanding water revenue bonds and general obligation bonds.

2.  Current market rates are lower than the rate the City pays on its outstanding Water System Revenue Bonds, Series 1995 and its outstanding General Obligation Water Refunding Bonds, Series 1993. The City adopts this ordinance to authorize the refunding of those outstanding bonds to achieve debt service savings.

NOW, THEREFORE, the Council directs:

A.  Authorization of Refunding Revenue Bonds. Pursuant to ORS 288.592, the Council hereby authorizes the issuance of one or more series of Water System Revenue Refunding Bonds (the “2004 Water Revenue Refunding Bonds”). The 2004 Water Revenue Refunding Bonds shall be “Bonds” and “Parity Obligations” as defined in the City’s Master Water Revenue Bond Ordinance (Ordinance No. 174241, as it may be amended from time to time). The 2004 Water Revenue Refunding Bonds shall be special obligations of the City and shall be secured solely by the net revenues of the water system and other amounts specifically pledged to the payment of “Bonds” as defined in the City’s Master Water Revenue Bond Ordinance. The 2004 Water Revenue Refunding Bonds shall not be issued in a principal amount that exceeds the sum of the amounts required to refund the City’s Water System Revenue Bonds, Series 1995, and to pay estimated costs of obtaining credit enhancement, funding reserves, issuing of the 2004 Water Revenue Refunding Bonds and carrying out this Ordinance.

B.  Authorization of General Obligation Water Refunding Bonds. The City is hereby authorized to issue its general obligation water refunding bonds (the “2004 General Obligation Water Refunding Bonds”) to refund all or any portion of the City’s outstanding General Obligation Water Refunding Bonds, Series 1993 pursuant to ORS 288.592. The 2004 General Obligation Water Refunding Bonds shall not be issued in an amount that exceeds the amount required to pay the general obligation water bonds that are refunded, and to pay related costs, including costs of issuing the 2004 General Obligation Water Refunding Bonds. The 2004 General Obligation Water Refunding Bonds shall be issued as general obligations of the City, and the City hereby pledges its full faith and credit to pay the 2004 General Obligation Water Refunding Bonds. The City covenants that the City shall levy annually, as provided by law, in addition to its other ad valorem property taxes and outside the limitations of Sections 11 and 11b of Article IX of the Oregon Constitution, a direct ad valorem tax upon all of the taxable property within the City in sufficient amount, after considering available water revenues, discounts taken and delinquencies that may occur in the payment of such taxes, to pay the 2004 General Obligation Water Refunding Bonds promptly as they mature.

C.  Delegation. The Debt Manager of the City, the Chief Financial Officer of the Bureau of Financial Services, the Chief Administrative Officer of the Office of Management and Finance, or the person designated by the Chief Administrative Officer of the Office of Management and Finance to act as Debt Manager under this Ordinance (any of whom is referred to in this Ordinance as a “Debt Manager”) may, on behalf of the City:

1.  Provide that the 2004 Water Revenue Refunding Bonds and the 2004 General Obligation Water Refunding Bonds (collectively, the “2004 Water Refunding Bonds”) may be issued in one or more series, which may be sold at different times, and may also be combined with other series of City bonds.

2.  Participate in the preparation of, authorize the distribution of, and deem final the preliminary and final official statements and any other disclosure documents for each series of the 2004 Water Refunding Bonds.

3.  Establish the final principal amounts, maturity schedules, interest rates, sale prices, redemption terms, payment terms and dates, record dates and other terms for each series of the 2004 Water Refunding Bonds, and either publish a notice of sale, receive bids and award the sale of each series to the bidder complying with the notice and offering the most favorable terms to the City, or select one or more underwriters and negotiate the sale of any series with those underwriters.

4.  Undertake to provide continuing disclosure for each series of the 2004 Water Refunding Bonds in accordance with Rule 15c2-12 of the United States Securities and Exchange Commission.

5.  Apply for and purchase municipal bond insurance, reserve sureties or other forms of credit enhancements for each series of the 2004 Water Refunding Bonds, and enter into related agreements.

6.  Finalize the terms of, execute and deliver bond declarations that describe the terms of each series of the 2004 Water Refunding Bonds.

7.  Appoint and enter into agreements with escrow agents, paying agents, verification agents and other professionals and service providers.

8.  Take any action desirable to call, redeem and pay any bonds that are refunded with the 2004 Water Refunding Bonds.

9.  Enter into covenants to maintain the excludability of 2004 Water Refunding Bond interest from gross income under the Internal Revenue Code of 1986, as amended.

10.  Refund, call and defease any bonds that are refunded with by the 2004 Water Refunding Bonds.

11.  Execute any documents and take any other action in connection with the 2004 Water Refunding Bonds which the Debt Manager finds will be advantageous to the City.

BACKING SHEET INFORMATION

AGENDA NO. 20 36-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 178143

ACTION TAKEN: JANUARY 08, 2004 PASSED TO SECOND READING JANUARY 14, 2004 9:30AM