Bureau of Financial Services

Kenneth L. Rust, Director

1120 S.W. Fifth Avenue, Rm. 1250

Portland, Oregon 97204

(503) 823-5288

FAX (503) 823-5384

TDD 823-6868

CITY OF PORTLAND

OFFICE OF MANAGEMENT AND FINANCE

     Vera Katz, Mayor

Timothy Grewe, Chief Administrative Officer

MEMORANDUM

TO:  Mayor Vera Katz

   Commissioner Jim Francesconi

   Commissioner Randy Leonard

   Commissioner Dan Saltzman

   Commissioner Erik Sten

   City Auditor Gary Blackmer

FROM:  Tim Grewe

DATE:  December 26, 2003

SUBJECT:  Ordinance Authorizing Bonds to Refund Outstanding Series 1995 Water Revenue Bonds and Series 1993 General Obligation Water Refunding Bonds

Attached is an Ordinance for first reading by Council on January 7, 2004. The Ordinance authorizes the issuance of Water System Revenue Refunding Bonds (the “2004 Water Revenue Refunding Bonds”) and General Obligation Water Refunding Bonds (the “2004 General Obligation Water Refunding Bonds”).

Proceeds of the 2004 Water Revenue Refunding Bonds will be used to refund all or a portion of the City’s Water Revenue Bonds, Series 1995. Proceeds of the 2004 General Obligation Water Refunding Bonds will be used to refund all or a portion of the City’s General Obligation Water Refunding Bonds, Series 1993. Both proposed refundings are for the purpose of realizing debt service savings.

No proceeds from either the 2004 Water Revenue Refunding Bonds or 2004 General Obligation Water Refunding Bonds may be used to fund new capital projects of the water system.

The Ordinance delegates to the Debt Manager certain tasks including establishing the final principal amounts, maturity schedules, interest rates, and other terms related to the sale of the bonds; applying for and purchasing municipal bond insurance, reserve sureties, or other reserve equivalents; and executing documents.

Questions concerning this Ordinance may be addressed to Eric Johansen at 823-6851.