1997-23700-Resolution No. 97-096 Recorded 6/30/199706/27/97 FRI 10:23 FAX 5032489085 Preston Gates &Ellis LLP la 002
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97-23"1 00 I MAI ,r(H�NSEL
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY,
OREGON
A Resolution. Authorizing the Issuance )
And Sale of Tax Anticipation Notes, A ��
Series 1997, in an Amount not to ) C1.
Exceed
Exceed $5,000,000. )
RESOLUTION NO_ GI%OGI6�
WHEREAS, the Board of County Commissioners of Deschutes County;' Pteggr
(tbe "County") currently expects that its maximum cash flow deficit during the 1997-19P$ floral
year, as defined by federal law, will be at least $5,000,000; and
WHEREAS, federal law permits the County to issue tax-exempt tax anticipation
notes if the total principal amount of the notes does not exceed the County's maximum cash flow
deficit, with certain adjustments permitted or required by federal, law during the 1997-1998 fiscal
year; and
WHEREAS, on or before June 30, 1997, the County will have adopted a budget
Cor the 1997-1998 fiscal year, and commencing July 1, 1997, the County will have ad valorem
taxes (its "Taxes") certified for levy for Fiscal year 1997-1998 within the limitations imposed by
Article XI of the Oregon Constitution; and
WHEREAS, it is in the best interests of the County to borrow not more than
80% of its anticipated Taxes for the 1997-1998 fiscal year, by issuing tax and revenue
anticipation notes of the County in an amount of not more than the anticipated maximum cash
flow deficit; now, therefore,
The Board of County Commissioners of Deschutes County, Oregon resolves.
1. Notes Authorized.
The County shall issue an aggregate principal amount of not More than Five
Million Dollars ($5,000,000) Tax Notes, Series 1997 (the "Notes") pursuant to ORS 288.165 for
the purpose of meeting current expenses. The aggregate principal amount of the Notes shall not
exceed the limitations imposed by Section 148 of the internal Revenue Code of 1986, as
amended (the "Code"). The Notes shall be dated with the date specified by the Finance Director,
or his designee, shall mature on or before June 30, 1998, and shall bear interest payable at
maturity at a rate to be established by the Finance Director, which shall xlot exceed a net effective
rate of 5% (five percent) per annum. The Notes shall be in denominations as specified in
consultation with the purcbaser of the Notes.gyp ,- -,
101E IX591
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IV
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2. Special Account.
The County may establish a Special Account for the Notes if required by the
lender. If a special account is established, the County covenants for the benefit of the owners of
the Notes that commencing after the date of its cumulative cash flow deficit, it will deposit its
Taxes received not including any payments received in respect of delinquent Taxes from levies
for prior years to the Special Account on or by a date mutually selected with the purchaser of the
Notes. The County shall make deposits into the Special. Account until the Special Account holds
an amount sufficient to pay principal of and interest on the Notes at maturity. In determining
whether sufficient amounts have been deposited into the Special Account, the County may
include interest to be earned on investments which have been made with Special Account
moneys. Moneys in the Special Account shall not be invested in instruments which mature after
the maturity date of the Notes_ Additional Notes cannot be issued which will have any claim.
upon the moneys in the Special Account. Moneys in the Special .Account shall be used solely to
pay principal of and interest on the Notes. The Special Account must be fully funded prior to
establishing and financing any other special account which is fundable from the, 1997-1998
Taxes.
3. Full Faith and Credit.
The County's Taxes budgeted to be received in fiscal year 1997-1998 and the full
faith and credit of the County are hereby irrevocably pledged to the punctual payment of
principal of and interest on the Notes.
4. Note Insurance.
The Finance Director may purchase insurance for the Notes if the Finance
Director determines that such a purchase will be advantageous for the County.
5. Note Purchase Contract.
The Finance Director is hereby authorized to sell the Notes at public or private
sale on behalf of the County- The Finance Director is hereby authorized to negotiate the terms of
a purchase contract for the Notes. The terms of any such purchase contract shall be binding upon
the County upon execution by the Finance Director.
6. Form of Notes.
The Notes may be issued in such form as determined by the Finance Director and
may be printed or typewritten, and may be issued as one or more temporary Notes, which shall
be exchangeable for definitive Notes when definitive Notes are available. The Notes may be
issued in book -entry only form and the Finance Director may execute such agreements,
documents and certificates as required for such issuance.
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7. Execution.
The Notes shall be executed on behalf of the County with the manual or facsimile
signature of the Finance Director.
8. Tax -Exempt Status.
The County covenants not to take any action or ornit any action if the taking or
omission would cause interest paid on the Notes to be includable in gross income of the
Noteowners for federal income M purposes (except for certain. taxes on corporations) under
present federal tax laws. The County covenants that it will not use the proceeds of the Notes in a
fashion which would cause the Notes to be "private activity bonds" under Section 141 of the
Code or "arbitrage bonds" under Section 148 of the Code. The Finance Director may enter into
covenants on behalf of the County to protect the tax-exempt status of the Notes.
9. Bank Qualified.
The County (rind all subordinate entities, if any) reasonably anticipates that it will
not issue more than $10,000,000 of tax-exempt obligations during calendar year 1997. The
County hereby designates the Notes as "qualified tax-exempt obligations" pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code").
10. Rebate Exemption.
The County has general, taxing powers. No portion of the Note proceeds will be
used to finance property which is used in the trade or business of nongovernments, or is loaned to
nongovernments. None of the Notes are "private activity bonds" within the meaning of
Section 141 of the Code. At least ninety-five percent of the net proceeds of the Notes will be
used for local governmental activities of the County. The County (and all, subordinate entities
thereof, if any) does not reasonably expect to issue tax-exempt obligations in calendar year 1997
which have an aggregate face amount of more than $5,000,000. Accordingly, under
Section 148(f)(4)(c) of the Code, no rebate to the United States is required to be paid in
connection with the Notes_
11. Authority of Finance Director.
The Finance Director is hereby authorized to enter into any agreements and to
execute any agreements, documents or certificates which may be required to issue, sell and
deliver the Notes in accordance with this Resolution.
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ADOPTED by the County Board of Commissioners of Deschutes County, Oregon
on this—3oday o 1997.
Attest:
Recording Secretary
Page 4 -- Resolution
BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, QREGON
Nancy pope mangn, 4 -maty / 1
Ro ert L. Nipper, Comm ner
Linda L. Swearingen, Commissioner
] VtDANDS9cHum.mcrNERAURk ,SZ DOC