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HomeMy WebLinkAboutCouncil Resolution 1164RESOLUTION NO. A RESOLUTION AUTHORIZING ISSUANCE OF A LIMITED TAX IMPROVEMENT BONDS FOR A PORTION OF THE COSTS OF THE MEADOWS LOCAL IMPROVEMENT DISTRICT AND THE SNOWY BUTTE LOCAL IMPROVEMENT DISTRICT WHEREAS, the City of Central Point is authorized pursuant to the Constitution and laws of the State of Oregon, including Oregon Revised Statutes Chapter 288 and Sections 223.205 to 223.295 and the City Charter, to construct publicly owned and operated local improvements which specially benefit properties, to assess the specially benefited properties for the costs of local improvements, and to issue limited tax bonds to finance the costs of those improvements; and, WHEREAS, Article XI, Section l lb of the Oregon Constitution states that assessments for local improvements will not be "taxes" which are subject to that section's limitations if the local improvement is a capital construction project undertaken by the City: (a) which provides a special benefit only to specific properties or rectifies a problem caused by specific properties; (b) the costs of which are assessed against those properties in a single assessment upon the completion of the project; (e) for which the payment of the assessment plus appropriate interest may be spread over a period of at least ten years; and, (d) for which the total of all assessments do not exceed the actual costs incurred by the City in designing, constructing and financing the project; and, WHEREAS, the City has completed construction of the Meadows Local Improvement District ("Meadows LID") improvement project, and has assessed its costs against benefited properties in compliance with Article XI, Section l lb of the Oregon Constitution, so that the assessments for the Meadows LID improvement project are not "taxes" which are subject to that section's limitations; and, WHEREAS, the City has completed construction of the Snowy Butte Local Improvement District ("Snowy Butte LID" and together with Meadows LID, the "LID") improvement project, and has assessed its costs against benefited properties in compliance with Article XI, Section l lb of the Oregon Constitution, so that the assessments for the Snowy Butte LID improvement project are not "taxes" which are subject to that section's limitations; and, WHEREAS, the City now desires to obtain long term financing for the costs of the LID improvement projects by issuing a limited tax improvement bond; and, WHEREAS, Oregon Revised Statutes Section 223.235(2) limits the principal amount of limited tax improvement bonds to the unpaid balance of all final assessments for the LID, plus the amount necessary to fund any reserves and pay financing costs; and, Page 1 -Resolution WHEREAS, the unpaid balance of all final assessments for the LID improvement project is not expected to exceed $490,000; and, WHEREAS, the City adopts this Resolution to establish the terms under which it will issue its Limited Tax Improvement Bonds pursuant to Oregon Revised Statutes Chapter 288 and Sections 223.205 to 223.295 to provide long term financing for costs of the LID improvement projects; NOW, THEREFORE, THE CITY OF CENTRAL POINT RESOLVES AS FOLLOWS: Section 1. Definitions. Unless the context clearly requires otherwise, the following capitalized terms shall have the following meanings: "Assessment Payments" means all amounts required to be paid to the City under all contracts for installment payment of final assessments for the Project, and the net proceeds of foreclosing any such assessments. "Bonds" means the City's Limited Tax Improvement Bonds which are authorized by this Resolution. "Code" means the Internal Revenue Code of 1986, as amended. "Director" means the City Administrator or the City Finance Director, or the person designated by the City Administrator or the City Finance Director to take action under this Resolution. "Project" means that portion of the Snowy Butte LID and Meadows LID for which applications to pay assessments in installments have been received prior to adoption of this Resolution. "Resolution" means this Resolution as it maybe amended from time to time. Section 2. Bonds Authorized. In order to finance the Project, the City may issue its Bonds in a principal amount of no more than Five Hundred Thousand Dollars ($500,000). Proceeds of the Bonds shall be used to finance the Project, and to pay costs of issuing the Bonds in compliance with the limitations in ORS Chapter 223. Section 3. Security for Bonds. The Bonds may be secured by a pledge of: a. the Assessment Payments; and b. the City's full faith and credit and taxing power within the limitations of Article XI, Section 11 and l lb of the Oregon Constitution. Page 2 -Resolution Section 4. Delegation. The Director may, on behalf of the City and without further action by the City Council: a. issue the Bonds in one or more series; b. circulate requests for proposals, obtain competitive bids, or select banks or underwriters for each series of Bonds, and enter into agreements to sell the Bonds; c. establish the principal amounts, interest rates, security and all other terms of, and execute and deliver Bonds, subject only to the limitations in this Resolution; d. provide that the Bonds shall bear interest which is includable or excludable in gross income under the Code. If the Bonds are excludable from gross income under the Code, enter covenants to protect that excludability; e. designate the Bonds as "qualified tax-exempt obligations" under Section 265 of the Code, if applicable; f. execute and deliver the Bonds; and g. execute any documents and take any actions in connection with the Project or the Bonds which the Director reasonably determines are desirable to carry out this Resolution, or to obtain and sell Bonds in accordance with this Resolution. Section 5. Form of Bonds. The Bonds shall be in substantially the form attached to this Resolution as Exhibit A, with such changes as may be approved by the Director. The Bonds may be printed or typewritten. The Bonds shall be executed on behalf of the City with the manual or facsimile signatures of the Mayor or the Director. Page 3 -Resolution Section 6. Effective Date. This Resolution shall take effect immediately. Passed by the Council and signed by me in authentication of its passage this 6th day of December, 2007. City of Central Point Jackson County, Oregon .-~ ~fT/liyl//°' V mow- ©~r-- Mayor Hank Williams Approved by me this 6th day of December, 2007. w Mayor Hank Williams Page 4 -Resolution EXHIBIT A (Form of Bonds) United States of America State of Oregon City of Central Point Limited Tax Improvement Bonds The City of Central Point, Oregon (the "City"), for value received, acknowledges itself indebted and hereby promises to pay (the "Bank"), the principal amount of $ in the following installments on the following dates, together with interest at the rate of ,calculated on a day basis, in the following amounts: [insert amortization schedule] The Bonds are subject to redemption as provided in the Bond Purchase Agreement dated between the City and the Bank. The Bonds are the City's Limited Tax Improvement Bonds. The Bonds are issued to finance a portion of the costs of the City's Meadows Local Improvement District improvement project and Snowy Butte Local Improvement District improvement project. The Bonds are issued under and pursuant to Resolution No. _ of the City adopted December 6, 2007 (the "Resolution") and in full and strict accordance and compliance with all of the provisions of the Constitution and Statutes of the State of Oregon and the Charter of the City. This Bonds are valid and legally binding obligations of the City. The City has granted a pledge of the Assessment Payments (as defined in the Resolution) to pay the Bonds. The full faith and credit and taxing power of the City within the limitations of Article XI, Section 11 and l lb of the Oregon Constitution are also pledged for the punctual payment of the principal of and interest on the Bonds to the extent that the Assessment Payments are not sufficient. The Bonds do not constitute a debt or indebtedness of Jackson County, the State of Oregon, or any political subdivision thereof other than the City. IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all conditions, acts, and things required to exist, to happen, and to be performed precedent to and in the issuance of the Bonds have existed, have happened, and have been performed in due time, form, and manner as required by the Constitution and Statutes of the State of Oregon and the Charter of the City; and that the issue of which the Bonds is a part, and all other obligations of the City, are within every debt limitation and other limit prescribed by such Constitution and Statutes and City Charter. IN WITNESS WHEREOF, the City Council of the City of Central Point, Oregon, by Resolution duly passed, has caused the Bonds to be signed by its Director, as defined in the Resolution. City of Central Point, Oregon Director Exhibit A, Page 1 (Form of Bond)