Authorize permanent bonded lien interest rates for installment payment contracts financed by the Limited Tax Improvement Bonds, 2022 Series B

The City of Portland ordains: Section 1. The Council finds: On September 29, 2021, the Council adopted Ordinance 190567 authorizing the issuance of long-term bonds to finance installment payment contracts resulting from local improvement and sidewalk repair projects, system development charges and for payment of issue costs. On January 25, 2022, the City of Portland issued $9,505,000 in limited tax improvement bonds through a competitive bond sale. Section 17.12.140(f) of Portland City Code directs the Auditor to change interest rates on installment payment contracts to reflect the interest costs of the bond sale plus an allowance for insurance and other debt service reserves. The City Debt Manager certifies that the blended actual interest rates on the bonds are calculated at 1.89% for 5-year loans, 2.17% for 10-year loans, 2.70% for 20-year monthly loans and 2.66% for 20-year semi-annual loans. The City Debt Manager certifies that the bond sale interest rates must be increased by 25 basis points to provide the necessary installment payment income to cover all bonded debt service plus an allowance for debt service reserves. The necessary adjustments result in installment payment contract interest rates of 2.14% for 5-year loans, 2.42% for 10-year loans, 2.95% for 20-year monthly loans and 2.91% for 20-year semi-annual loans. NOW, THEREFORE, the Council directs: The Revenue Division to change the interest rates charged on installment payment contracts included in the Limited Tax Improvement Bonds, 2022 Series B Bonds to 2.14% for 5-year loans, 2.42% for 10-year loans, 2.95% for 20-year monthly loans and 2.91% for 20-year semi-annual loans.