Resolution No. 08-57 CITY OF TIGARD, OREGON
RESOLUTION NO. 08-,5-c)_
A RESOLUTION AUTHORIZING A BORROWING TO PROVIDE INTERIM FINANCING
FOR THE CITY'S WATER CAPITAL IMPROVEMENT PROJECTS AND WATER SUPPLY
AGREEMENT WITH LAKE OSWEGO
WHEREAS,the City of Tigard (the"City") is authorized by ORS 287A.180 to borrow to provide
interim financing for capital projects to be undertaken by the City Council; and
WHEREAS, such borrowings must mature not later than five years after they are issued; and
WHEREAS,the City seeks to finance various capital projects for the City's water system,including
the acquisition of an equitable interest in the water supply facilities that will be managed by the City
of Lake Oswego, as described in Resolution No. 08-39 and the intergovernmental agreement
between the City and Lake Oswego regarding the joint ownership and operation of a water supply
facility(collectively,the"Projects"); and
WHEREAS,the City desires to borrow up to $22,000,000 to provide interim financing for the
Projects.
NOW,THEREFORE, BE IT RESOLVED by the Tigard City Council that:
SECTION 1. The City hereby authorizes a borrowing under ORS 287A.180 (the"Loan") in a
principal amount of not more than$22,000,000. The Loan shall be a special obligation of the
City and shall be payable solely by the net revenues of the water system and other amounts
pledged pursuant to Section 2(d) of this Resolution. The Loan may be in the form of a loan
agreement or line of credit. Proceeds of the Loan shall be used to pay costs of the Projects and
costs related to the Loan.
SECTION 2. The Financial and Information Services Director, City Manager or the Assistant to
the City Manager, of the City(each a"City Official")may, on behalf of the City and without
further action by the City Council:
(a) Issue the Loan from time to time in one more series;
(b) Select one or more purchasers and negotiate the sale of each series of the Loan with those
purchasers;
(c) Establish the final principal amount, maturity schedule, interest rates, sale price,
redemption provisions, covenants, administrative provisions and other terms for each
series of the Loan, subject to the limitations of this Resolution;
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(d) Execute and deliver one or more loan agreements, credit facilities, declarations, or other
documents which pledge the net revenues of the City's water system, contain covenants
approved by a City Official to protect the security for each series of the Loan, and
describe the terms and administrative provisions relating to each series of the Loan;
(e) Execute a note representing the City's obligations under each series of the Loan;
(f) Enter into covenants to maintain the excludability of interest on each series of the Loan
from gross income under the Internal Revenue Code of 1986, as amended(the"Code"),
and designate each series as a"qualified tax-exempt obligation"under Section 265(b) of
the Code;
(g) Execute and deliver the Loan documents and take any other actions which a City Official
determines are reasonably required to carry out this Resolution.
SECTION 3. This resolution is effective immediately upon passage.
PASSED: This 23rd day of September 2008.
Mayo -City of Tigard
ATTEST:
City Recorder- City of Tigard
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