2004-1463-Resolution No. 2004-138 Recorded 12/29/2004VIE D
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DESCHUTES COUNTY OFFICIAL RECORDS
NANCY BLANKENSHIP,
COMMISSIONERS' JOURNALNTY CLERK CJ 1004.14fi3
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For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the Financing of Local
Improvement Projects in an amount not to exceed * RESOLUTION NO. 2004-138
$500,000.
WHEREAS, the County is authorized by Oregon Revised Statutes Section 271.390 to
enter into loan or financing agreements to finance real or personal property which the Board of County
Commissioners determines is needed; and,
WHEREAS, the County is authorized by ORS 287.053 to make these agreements
"limited tax bonded indebtedness" which the County is unconditionally obligated to pay; and,
WHEREAS, the County is undertaking improvements to a number of local
improvement districts ("LIDs"), including four LIDS (Oasis Drive, Kiowa Drive, Bandley, Road Bull
Bat Lane) that have been completed and signed assessment contracts pending (collectively, the "LID
Projects"); and,
WHEREAS, the Board has determined that the LID Projects are needed, and that it is
desirable to obtain financing for such LID Projects in the aggregate principal amount of not more than
$500,000 pursuant to ORS 271.390 and ORS 287.053.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF DESCHUTES COUNTY, OREGON, as follows:
Section 1. Authorization.
The Finance Director or the Finance Director's designee (the "Finance Director") is
hereby authorized on behalf of the County and without further action by the Board, to:
1.1. Finance the LID Projects, plus any amounts required to pay costs of the financing,
in an aggregate principal amount of not more than Five Hundred Thousand Dollars ($500,000).
1.2. Negotiate, execute and deliver one or more loan agreements, credit facilities or
other financing documents, which may be secured by notes or other obligations (the "Obligations") for
the financing of the LID Projects which obligates the County to repay the principal amounts of the
Obligations with interest.
PAGE 1 OF 3 — RESOLUTION NO. 2004-138
1.3. Select one or more commercial banks, negotiate the terms of the Obligations,
including the final principal amount, the interest rate or rates which payments shall bear, the County's
prepayment rights and other terms of the Obligations.
1.4. Renew, extend or refund the Obligations.
1.5. Designate the Obligations as "qualified tax-exempt obligations" pursuant to
Section 265(b)(3) of the Internal Revenue Code or 1986, as amended (the "Code").
1.6. Take any other action and sign any other documents, certificates, and undertakings
required in connection with the execution of the Obligations which the Finance Director finds will be
advantageous to the County.
Section 2. Security.
The Obligations shall constitute a limited tax bonded indebtedness as defined in ORS
287.053 and the obligation of the County to make payments under the Obligations is unconditional.
The Finance Director may pledge the County's full faith and credit and taxing power within the
limitations of Section 11 and 1 lb of Article XI of the Oregon Constitution, and any and all of the
County's legally available funds, including the proceeds of the Obligations, to make the payments due
under the Obligations.
Section 3. Maintenance of Tax -Exempt Status.
3.1. The County covenants to comply with all provisions of the Code which are required
for interest paid on the Obligations to be excluded from gross income for federal income tax purposes.
The County makes the following specific covenants with respect to the Code:
3.1.1. The County shall not take any action or omit any action, if it would cause
the Obligations to become "arbitrage bonds" under Section 148 of the Code and shall
pay any rebates or penalties to the United States which are required by Section 148(f) of
the Code.
3.1.2. The County shall operate the facilities financed or refinanced with the
Obligations so that the Obligations are not "private activity bonds" within the meaning
of Section 141 of the Code.
3.2. The covenants contained in this Section 3 and any covenants in the closing
documents for the Obligations shall constitute contracts with the lenders, and shall be
enforceable by them.
PAGE 2 of 3 -RESOLUTION NO. 2004-138
The foregoing Resolution adopted this 29th day of December, 2004.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
Record of Adoption Vote
Commissioner Yes No Abstained Excused
Michael M. Daly L
Tom DeWolf t/
Dennis R. Luke
ATTEST:
Recording Secretary
PAGE 3 of 3 — RESOLUTION NO. 2004-138