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WHEREAS, there is approximately $5,831,788.68 of unspent proceeds of the Series 2011 Bonds which will be applied subject to Section 34191.4(c)(2) of the Health and Safety Code of the State of California and as approved by the Department of Finance, and depending on the determination of the Department of Finance, the balance of unspent proceeds of the Series 2011 Bonds will be applied to the defeasance of the Series 2011 Bonds; WHEREAS, Health & Safety Code Section 34177.5(a)(1) authorizes successor agencies to refund outstanding bonds provided that (i) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (ii) the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance; WHEREAS, Senate Bill 1029 (Chapter 307 of the 2015-2016 Session of the California Legislature) ("SB 1029") amended Government Code Section 8855 to require a debt policy to be adopted by local agency issuers of public debt for any financings completed on or after January 21, 2017 and the City Council, acting as Successor Agency, wishes to specify debt management policies to guide the Successor Agency, its officers and staff regarding the issuance of Successor Agency debt; WHEREAS, on February 8, 2018, the City Council adopted a Debt Management Policy for the City, the Santa Ana Financing Authority and the Successor Agency (the "Debt Management Policy"), in the form presented at this meeting, that complies with Government Code Section 8855(1), and the Successor Agency wishes to adopt the terms of the Debt Management Policy as its local debt policies, and the Successor Agency's sale and issuance of the Refunding Bonds as contemplated by this Resolution is in compliance with the Debt Management Policy; WHEREAS, the Successor Agency has solicited a report of an independent financial advisor entitled Bond Refunding Savings Analysis (a copy of which is presented at this meeting) and employed such advisor in developing financing proposals for consideration by the Successor Agency and it is understood that such report, as it may be further revised, may be made available to the Department of Finance at its request; WHEREAS, the Successor Agency has determined to issue not to exceed $80,000,000 aggregate principal amount of its Successor Agency to the Community Redevelopment Agency of the City of Santa Ana, Tax Allocation Refunding Bonds (Merged Project Area), Series 2018 in two series, one federally tax exempt and one federally taxable, and with such other name and series designatinn as is rleemimd appropriate (the "Refunding Bonds"), for the purpose of (i) refinancing certain redevelopment activities of the Former RDA through the refunding of the Refunded Bonds, (ii) paying the costs of issuing the Refunding Bonds, (iii) funding a Reserve Account as may be required for the Refunding Bonds and (iv) if advisable, paying for the cost of municipal bond insurance and/or a surety to fund the Reserve Account for the Refunding Bonds; Resolution No. 2018-001 Page 3 of 10