30-25 City Hall Refinancing

 City of Elgin, Oregon Resolution 30 (2025)

A RESOLUTION OF THE CITY OF ELGIN, OREGON AUTHORIZING A FULL FAITH AND CREDIT REFINANCING.

WHEREAS, the City Council of the City of Elgin, Oregon (the “City”) is authorized by Oregon Revised Statutes (“ORS”) Section 271.390 to enter into financing agreements to refinance real or personal property which the City Council 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 refinanced; and

WHEREAS, the City is also authorized by ORS 287A.360 to refund outstanding borrowings; and

WHEREAS, in 2018, the City entered into a financing agreement and note with U.S. Bank National Association dated as of October 30, 2018 (the “2018 Financing”) to finance the acquisition of land for the City facilities (the “Project”) which financing matures on October 31, 2025; and 

WHEREAS, the 2018 Financing is currently outstanding in the approximate principal amount of $826,000; and 

WHEREAS, the City has determined it is in their best interest to refund all or any portion of the 2018 Financing;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ELGIN, OREGON HEREBY RESOLVES:

1. Determination of Need.  The City Council hereby determines that the Project is needed. 

2. Financing Agreements Authorized.  The City Council hereby authorizes one or more financing agreements (the “Financing Agreements”) to refinance all or any portion of the 2018 Financing pursuant to ORS 271.390, ORS 287A.360, and the other relevant provisions of ORS Chapter 287A.  The Financing Agreements may be issued in an amount that is sufficient to refund all or any portion of the 2018 Financing and to pay estimated costs related to issuing the Financing Agreements and refunding the 2018 Financing.  

3. Delegation.  The Mayor, the City Administrator, or a person designated by either of those individuals to act on behalf of the City pursuant to this Resolution (each of whom is referred to herein as a “City Official”) is hereby authorized, on behalf of the City and without further action by the City Council, to:

   1. Select all or a portion of the 2018 Financing to be refunded;

   2. Determine the final principal amount, interest rates, payment dates, prepayment rights and all other terms of the Financing Agreements;

   3. Negotiate the final terms of, and execute and deliver the Financing Agreements, and any related documents;

   4. Select commercial banks or other lenders to fund the Financing Agreements;

   5. Take actions to prepay all or a portion of the 2018 Financing;  

   6. Apply legally available revenues to prepay all or a portion of the 2018 Financing;

   7. Covenant for the benefit of the lenders to comply with all provisions of the Internal Revenue Code of 1986, as amended (the “Code”), that are required for the interest paid under the Financing Agreements to be excluded from gross income for federal income tax purposes; 

   8. Designate each of the Financings Agreements as a “qualified tax-exempt obligation” pursuant to Section 265(b)(3) of the Code, if applicable;

   9. Appoint and enter into agreements with bond counsel, placement agent and other service providers for the Financing Agreements; 

   10. Issue the Financings Agreements in the public markets, if desirable; and

   11. Execute and deliver any other certificates or documents and take any other actions that the City Official determines are desirable to carry out this Resolution.

4. Security.  Pursuant to ORS 287A.315, the City Official may pledge the City’s full faith and credit and taxing power within the limitations of Sections 11 and 11b of Article XI of the Oregon Constitution to pay the amounts due under the Financing Agreements.  The City is not authorized to levy additional taxes to pay the amounts due under the Financing Agreements.  

5. Effective Date.  This resolution is effective immediately upon adoption.  

PASSED AND ADOPTED this 14th day of October, 2025.