2021-307-Resolution No. 2021-0056 Recorded 7/16/2021Recorded in Deschutes County
Nancy Blankenship, County Clerk CJ2021-307
Commissioners' Journal 07/16/2021 4:49:01 PM
REVIEWED
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For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Authorizing the County's
Refinancing of its Series 2012 Full Faith * RESOLUTION NO. 2021-056
and Credit Obligations
WHEREAS, Deschutes County, Oregon (the "County") is authorized by Oregon Revised
Statutes ("ORS") Sections 271.390 and 287A.360 to enter into financing agreements to finance
or refinance real or personal property that the Board of County Commissioners (the "Board")
determines is needed so long as the estimated weighted average life of the financing agreement
does not exceed the estimated dollar weighted average life of the property that is financed; and
WHEREAS, the County is authorized by ORS 287A.105 to incur bonded indebtedness
within the meaning of Section 10, Article XI of the Oregon Constitution in an amount not to
exceed one percent of the real market value of the taxable property in the County, in the form of
a financing agreement, and to commit the County's full faith and credit and taxing power
pursuant to ORS 287A.315 to pay the amounts due under the financing agreement; and
WHEREAS, the County previously refinanced the construction of the County/State
Government Center, the La Pine County Service Center, a new County warehouse, storage
buildings for the fair/expo center, sewer system improvements for the La Pine Sewer District,
various property acquisition, remodeling and infrastructure projects and other projects associated
with the construction projects (collectively, the "Refunded Projects") pursuant to a Financing
Agreement (the "2012 Financing Agreement") and an Escrow Agreement (the "2012 Escrow
Agreement"), each dated as of March 29, 2012; and
WHEREAS, the 2012 Escrow Agreement authorized the issuance of Full Faith and
Credit Obligations, Series 2012 in the original aggregate principal amount of $26,345,000 (the
"2012 Obligations"); and
WHEREAS, the County may be able to reduce its debt service costs by refinancing all or
a portion of its obligations under the 2012 Financing Agreement and the 2012 Escrow
Agreement; and
WHEREAS, the Board hereby determines that the Refunded Projects were needed at the
time the 2012 Obligations were issued and remain needed, and that it is desirable to refinance all
or a portion of the Refunded Projects pursuant to ORS 271.390 and ORS 287A.360; and
Resolution No. 2021-056 Page 1 of 4
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON, as follows:
Section 1. Authorization.
The County Treasurer and Chief Financial Officer, the County Administrator, or the
County Treasurer and Chief Financial Officer's designee (each of whom is referred to herein as a
"County Official") are hereby authorized on behalf of the County and without further action by
the Board, to:
1.1. Negotiate, execute and deliver one or more financing agreements, loan
agreements, credit facilities, or other financing documents (the "Financing Agreements") in an
aggregate principal amount that provides net proceeds sufficient to refinance all or a portion of
the County's obligations under the 2012 Financing Agreement and the 2012 Escrow Agreement
and to pay estimated costs of the refinancing. Subject to the limitations of this Resolution, the
Financing Agreements may be in such form and contain such terms as the County Official may
approve.
1.2. Negotiate, execute and deliver one or more escrow agreements or similar
documents (the "Escrow Agreements") which provide for the issuance of one or more series of
"certificates of participation" or "full faith and credit obligations" (the "Obligations") which
represent ownership interests in the financing payments due from the County under the
Financing Agreements. Subject to the limitations of this Resolution, the Escrow Agreements and
each series of Obligations may be in such form and contain such terms as the County Official
may approve.
1.3. Deem final and authorize the distribution of a preliminary official statement for
each series of Obligations, authorize the preparation and distribution of a final official statement
or other disclosure document for each series of Obligations, and enter into agreements to provide
continuing disclosure for owners of each series of Obligations.
1.4. Engage the services of escrow agents, escrow deposit agents, trustees or
verification agents, and any other professionals whose services are desirable for the Financing
Agreements, and enter into agreements with those service providers.
1.5. Select the maturities of any obligations to be refunded and cause notice of call and
redemption to be given.
1.6. Determine the final principal amount of each Financing Agreement, the interest
rate or rates which each series of financing payments shall bear, the County's prepayment rights
and other terms of each Financing Agreement and each series of Obligations.
1.7. Solicit competitive bids for the purchase of each series of the Obligations and
award their sale to the bidder offering the most favorable terms to the County; or select one or
more underwriters, negotiate with those underwriters the terms of the sale of each series of
Obligations, and sell that series to those underwriters; or place any Financing Agreement directly
with a commercial bank or other lender.
1.8. Undertake to provide continuing disclosure for each series of Obligations in
accordance with Rule 15c2-12 of the United States Securities and Exchange Commission.
Resolution No. 2021-056 Page 2 of 4
1.9. Apply for ratings for each series of Obligations, determine whether to purchase
municipal bond insurance or obtain other forms of credit enhancement for each series of
Obligations, enter into agreements with the those providers of credit enhancement.
1.10. Issue any qualifying Financing Agreement as a "tax-exempt bond" bearing
interest that is excludable from gross income under the Internal Revenue Code of 1986, as
amended (the "Code") and enter into covenants to maintain the excludability of interest on those
Financing Agreements from gross income under the Code.
1.11. Issue any Financing Agreement as a "taxable bond" bearing interest that is
includable in gross income under the Code.
1.12. Designate any qualifying Financing Agreement as a "qualified tax-exempt
obligation" pursuant to Section 265(b)(3) of the Code, if applicable.
1.13. Execute and deliver any other certificates or documents and take any other actions
which the County Official determines are desirable to issue, sell and deliver the Financing
Agreements in accordance with this Resolution.
Section 2. Security.
The Financing Agreements shall constitute "limited tax bonded indebtedness" as defined
in ORS 287A.105 and the obligation of the County to make financing payments under the
Financing Agreements is unconditional. Pursuant to ORS 287A.315, the County Official 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 Financing Agreements, to make the payments due
under the Financing Agreements.
Section 3. Appointment of Special Counsel and Municipal Advisor.
The law firm of Hawkins Delafield & Wood LLP is appointed as special counsel to the
County, and PFM Financial Advisors LLC is appointed as municipal advisor to the County, with
respect to the Obligations.
Section 4. Effective Date.
This Resolution shall take effect immediately upon its adoption.
Resolution No. 2021-056 Page 3 of 4
DATED this / day of , 2021.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
Ali HONY DEBONE, CHAIR
PHIL CHANG, VICE CHAIR
PATTI ADAlk, b6MMISSIONER
ATTEST:
Recording S cretary
Resolution No. 2021-056 Page 4 of 4
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{BOARD OF
COMMISSIONERS
MEETING DATE: July 14, 2021
SUBJECT: Series 2012 Full Faith and Credit Obligation Refunding Proposal
RECOMMENDED MOTION:
Move approval of Resolution No. 2021-056 authorizing the County's refinancing of its Series
2012 Full Faith and Credit Obligations.
BACKGROUND AND POLICY IMPLICATIONS:
The County has a number of outstanding bond issues at various rates of interest. When
bonds are issued, the terms of the issue include a date at which time the bonds can be paid
off early or refinanced. This is referred to as the "call date".
In 2012, the County issued its Series 2012 Full Faith and Credit Refunding Obligations.
These bonds are callable on December 1, 2021. The County can refund the bonds with tax-
exempt debt beginning on September 2, 2021 which is 90 days from the call date.
The 2012 bonds were issued to refund the County's Series 2003 Full Faith and Credit
Obligations which were issued to finance the construction of the Deschutes Services
Building, the La Pine Service Center, the County warehouse, storage buildings for the Fair &
Expo Center, sewer system improvements for the La Pine Sewer District, Solid Waste
facilities, improvements to the County Sheriff radio system and various property
acquisition, remodeling and infrastructure projects.
There are approximately 12 years remaining on the term of the 2012 bonds. In the current
interest rate environment, the County can refinance the bonds to achieve debt service
savings. The preliminary savings estimate of refunding the debt for the remaining term is
approximately $1.4 million.
N $2.0
$1.6
$1.4
$1.2
$0-3
$0.6
$0.4
$0.2
Estimated Savings
2022 2023 2024 2025 2026 2027 2028 2020 2030 2031 2032 2033
Fiscal Year
fflRefUnding Debt Service Savings Unrefunded Debt Service
The County solicited proposals from 25 commercial banks to provide financing terms in
connection with the considered refinance. Proposals are due July 7, 2021 and will be
evaluated shortly thereafter.
If approved, this resolution gives the County Administrator or the County Treasurer and
Chief Financial Officer the authority to make all necessary decisions to proceed with
refunding the Series 2012 bonds.
BUDGET IMPACTS:
Refunding the Series 2012 bonds will save the County an estimated $1.4 million in debt
interest expense over the remaining twelve years of the bond term.
ATTENDANCE:
Greg Munn, County Treasurer and Chief Financial Officer
