Ordinance No. 10-19 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 10- /G
AN ORDINANCE OF THE CITY OF TIGARD, WASHINGl"ON COUNTY, OREGON,
AUTHORIZING THE ISSUANCE OF WATER REVENUE BONDS FOR A TOTAL OF
NOT TO EXCEED $160,000,000
WHEREAS, Oregon Revised Statutes ("ORS") Section 287A.150 and related provisions of ORS Chapter
287A (collectively,the "Statutes") permit the City of Tigard,Washington County, Oregon (the "City") to
authorize revenue bonds for any public purpose, and to secure those bonds with any revenues or other
property of the City;and,
WHEREAS, the Statutes permit the City to authorize revenue bonds by enacting a nonemergency
ordinance, but prohibit the sale of those revenue bonds until the ordinance takes effect, thus allowing
citizens to gather signatures to refer the ordinance to the voters, should they desire; and,
WHEREAS, the City now finds it financially feasible and in the best interests of the City to authorize the
issuance of water revenue bonds to finance capital improvements to the City's water system, including but
not limited to,water facilities included in the Water Rate Study adopted by Council on November 9, 2010 in
Resolution No. 10-58, to repay interim financings that the City may issue to finance capital improvements to
the water system,and to repay a currently outstanding water revenue bond anticipation borrowing (the
"Interim Financing") entered into on June 17, 2009 with Bank of America, N.A.(collectively, the
"Projects"); and,
WHEREAS, the City adopts this ordinance to authorize the issuance and sale of up to One Hundred Sixty
Million Dollars ($160,000,000) of water revenue bonds;
NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: Revenue Bonds Authorized. The City hereby authorizes the issuance of not more than
One Hundred Sixty Million Dollars ($160,000,000) in aggregate principal amount of
revenue bonds (the"Revenue Bonds") under the Statutes. The proceeds of the Revenue
Bonds may be used to finance costs of the Projects,to fund a debt service reserve,and to
finance other costs related to issuing the Revenue Bonds. The Revenue Bonds shall be
special obligations of the City that are payable solely from the net revenues of the Water
System and related amounts that the City pledges to pay the Revenue Bonds.
SECTION 2: No Additional Taxes Authorized;Bonds Payable Solely from Water System Revenues.
Neither the authorization nor the issuance of the Revenue Bonds described in Section 1 of
this ordinance shall authorize the City to levy any additional taxes.
SECTION 3: Procedure. The Revenue Bonds shall not be sold until the period for referral of this
nonemergency ordinance has expired and this ordinance takes effect. If this ordinance is
referred, the City may not sell dhe Revenue Bonds unless the voters approve this ordinance.
SECTION 4: Bond Sale Authorized. When and if this ordinance takes effect the City Manager or the
Finance and Information Services Director,or the designee of the City Manager or the
Finance and Information Services Director(each of whom is referred to herein as a "City
ORDINANCE No. 10- 4q
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Official") are hereby authorized,on behalf of the City and without further action by the
City Council, to:
1) Issue the Revenue Bonds in one or more series and at different times.
2) Pledge all or any portion of the net revenues of the City's water system to pay each
series of Revenue Bonds,and determine the lien status of each pledge.
3) Seek the consent of the Oregon Business Development Department ("OBDD")
and comply with the provisions of the loan outstanding with the OBDD so that the
Revenue Bonds may be issued with alien on net revenues that is equal or superior
to the lien that secures the OBDD loan.
4) Repay amounts due under interim financings that the City may issue to finance
capital iimprovements to the water system and the Interim Financing and,if
necessary,extend the maturity date of the Interim Financing until Revenue Bond
proceeds are available to repay amounts due under the Interim Financing.
5) Participate in the preparation of,authorize the distribution of,and deem final the
preliminary and final official statements and any other disclosure documents for any
series of Revenue Bonds.
6) Establish the final principal amount,maturity schedule,interest payment dates,
interest rates,denominations and all other terms for each series of Revenue Bonds.
7) Solicit competitive bids for any series of the Revenue Bonds and award their sale to
the bidder the City Official determines offers the most favorable terms to the City,
or select one or more underwriters or lenders and negotiate the sale of that series of
Revenue Bonds to those underwriters or lenders.
8) Undertake to provide continuing disclosure for any series of Revenue Bonds in
accordance with Rule 15c2-12 of the United States Securities and Exchange
Commission.
9) Apply for ratings for any series of Revenue Bonds.
10) Apply for and purchase municipal bond insurance,reserve sureties or other forms
of credit enhancements for any series of Revenue Bonds,and enter into related
agreements.
11) Draft and approve the terms of,and execute and deliver,one or more bond
declarations which pledge the revenues of the City's water system to particular
series of Revenue Bonds,contain covenants regarding the operation of the water
system and the levels of water system fees and charges that the City must impose,
describe the terms of the Revenue Bonds that are issued under that bond
declaration,and describe the terms under which future obligations may be issued
on a parity with those Revenue Bonds.
12) Appoint and enter into agreements with paying agents and other professionals and
service providers.
13) Issue any series of Revenue Bonds as taxable bonds that are eligible for federal
interest subsidies or tax credits.
14) Issue any series of Revenue Bonds as tax-exempt bonds and enter into covenants to
maintain the tax status of that series under the Internal Revenue Code of 1986,as
amended (the"Code").
15) Designate any series of tax-exempt Revenue Bonds as qualified tax-exempt
obligations pursuant to Section 265(b)(3) of the Code.
16) Execute and deliver any agreements or certificates and take any other action in
connection with the Revenue Bonds that a City Official finds will be advantageous
to sell and issue the Revenue Bonds and carry out this ordinance.
SECTION 5: This ordinance shall be effective 30 days after its enactment by the City Council pursuant to
Section 36 of the City Charter unless it is successfully referred.
ORDINANCE No. 10- 1 C/
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PASSED: By IfY AS+ .vote of all Council members present after being read by number
and title only,this 28th day of December,2010.
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Catherine Wheatley,City Recorder
APPROVED: By Tigard City Council this 28th day of December,2010.
. 4�f. , 4— Z d'
Craig Dirksen,Mayor
Approved as to form:
iry Attorney
errs
Date
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