55A - RESO - GAS TAX BONDS - Laserfiche WebLink

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Resolution of the City of Santa Ana Authorizing the issuance and Sale of Gas Tax Revenue Refunding Bonds November 5, 2019 Page 3 the Bonds and the City (with certain permitted exceptions to be completed in the final Official Statement) and must not omit any such material facts. • Bond Purchase Agreement - This document contains the obligation of the underwriter to accept and pay for the Bonds, provided that all of the covenants and representations of the City are met and certain other conditions excusing performance by the underwriter do not exist. • Continuing Disclosure Agreement - This document outlines the City's requirements to provide certain annual reports to investors in order to allow the underwriter to comply with federal securities laws. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal $4 — City Financial Stability, Objective #2, Strategy D (Conduct an assessment of the City's debt and refinancing options to achieve savings). FISCAL IMPACT All costs associated with this transaction will be paid at closing with proceeds from the refunding 2019 Bonds. The proposed 2019 Bonds will generate an estimated cash flow savings of approximately $18.4 million or 20% NPV savings over the life of the bond, net of all costs related to the issuance of this debt, and the term of the Bonds will not exceed the term of the 2007 COP being refunded. The source of repayment for the Bonds is the City's Gas Tax revenue from the State's Highway Users Tax Account. Additionally, upon Council authorization, staff will transfer the 2007 COPS reserve account to the trustee for this transaction (US Bank National Association) and place it into the respective fund for the 2019 Bonds. The balance at September 30, 2019 is $4,335,179 (general ledger account 02917002-15115); however, the actual amount to transfer will be the amount available as of the closing transaction date (late November 2019). Annual payment of Debt Service for FY 2019-20 through FY 2039-40 will be budgeted and paid from 02917021-67300 (principal) and 02917021-67310 (interest). 55A-3