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az PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY 25, 1994
<br /> .0 ; NEW ISSUE—BOOK-ENTRY ONLY
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<br /> $105,000,000*
<br /> A3 R a Santa Ana Financing Authority
<br /> ......... Police Administration and Holding Facility Lease Revenue Bonds, Series 1994A
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<br /> E� c-.- The Bonds will be issued in book-entry form,initially registered in the name of Cede&Co.,New York,New York,as nominee of The Depository Trust Company,New
<br /> o c a�i York,New York.Interest on the Current Interest Bonds will be payable on January 1 and July 1 of each year,commencing January 1,1995.Interest on the Capital
<br /> a,C.,a�'., w Appreciation Bonds maturing will be payable on the maturity dates thereof as a portion of the accreted value thereof.Purchasers will not receive certificates
<br /> .oU' representing their interest in the Bonds.Individual purchases of Current Interest Bonds will be in principal amounts of$5,000 or in any integral
<br /> 0 0, multiples of$5,000 and individual purchases of Capital Appreciation Bonds will be in denominations such that the accreted value of each
<br /> ,,,,,ccr.— Capital Appreciation Bond on the maturity thereof will be$5,000 or any integral multiple thereof.Payments of principal and interest
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<br /> gc of Current Interest Certificates and the accreted value of Capital Appreciation Bonds will be paid by the Trustee to DTC for
<br /> subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds.
<br /> 0 1°v The Bonds are being issued pursuant to an Indenture between the Santa Ana Financing Authority and Meridian Trust Company of California, San
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<br /> s c'ao Francisco,California,as trustee,and will be secured as described herein.The Bonds are being issued to provide funds for the construction and equipping of a
<br /> pc_ E.R police administration and holding facility,to fund a reserve account and to pay certain costs of issuance.
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<br /> EE `o All or a portion of the Current Interest Bonds may be issued as fixed rate bonds,and,either in addition to or as a replacement for the fixed rate
<br /> a; 2 bonds,the Authority may issue a portion of the Current Interest Bonds as Auction Rate Series(ARS)s"'or Inverse Rate Securities(IRS)s°', as more
<br /> tea,+0 ea fully described herein under"DESCRIPTION OF THE BONDS—Possible Derivative Structures."
<br /> .7;•`73- R , The Bonds are payable from Revenues of the Authority,consisting principally of Base Rental payments by the City of Santa Ana pursuant to a Lease
<br /> go g.-Ebetween the City and the Authority.The City will agree in the Lease to make all Base Rental payments provided for therein,to include all such payments
<br /> Z', u, in its annual budgets, and to make the necessary annual appropriations for such rental payments, which are calculated to be sufficient to permit the
<br /> TA" c-o Authority to pay principal of and interest on the Current Interest Bonds and the accreted value of the Capital Appreciation Bonds when due and payable.
<br /> cco•E 0 The obligation of the City to make Base Rental payments is not a debt of the City and is payable only from funds legally available therefor,including
<br /> w.y amounts on deposit in the general fund of the City.The City's obligation to make Base Rental payments is subject to abatement in the event of damage to,
<br /> EEt `u destruction or condemnation of,or title defects relating to,the Leased Property described herein.
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<br /> dCO c e� Payments of the principal of and interest on the Bonds when due will be insured by a municipal bond insurance policy to be issued simultaneously
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<br /> • a with the delivery of the Bonds by:
<br /> 413 C)• ~- ML31/a
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<br /> ng« H = The Current Interest Bonds are subject to optional and mandatory redemption prior to maturity.The Capital Appreciation Bonds are not subject
<br /> E m r to redemption prior to maturity.
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<br /> E.�_ THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM AND SECURED SOLELY BY THE
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<br /> 0 0 g ea REVENUES PLEDGED THEREFOR IN THE INDENTURE.THE BONDS ARE NOT A DEBT OF THE CITY,THE STATE OF CALIFORNIA
<br /> .r c U w OR ANY OF ITS POLITICAL SUBDIVISIONS (OTHER THAN THE AUTHORITY)AND NEITHER THE FAITH AND CREDIT OF THE
<br /> a) u.2 CITY,THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS ARE PLEDGED TO THE PAYMENT OF THE BONDS,
<br /> ,�3„=3 THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE THEREFOR. NEITHER THE BONDSN NEITHER
<br /> NOR THE
<br /> 1.12 .E 0 OBLIGATION OF THE CITY TO MAKE BASE RENTAL PAYMENTS CONSTITUTES AN INDEBTEDNESS OF THE CITY,THE STATE OR
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<br /> o c E ANY POLITICAL SUBDIVISION THEREOF IN CONTRAVENTION OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION
<br /> 'CZ is 43 a OR RESTRICTION.
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<br /> c•CU _= In the opinion of Orrick,Herrington&Sutcliffe,Bond Counsel,based on existing laws,regulations,rulings,and court decisions and assuming,among other matters,
<br /> c-0'CD a E compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes and is exempt from State of
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<br /> 3� California personal income taxes.In the opinion of Bond Counsel,interest on the Bonds is not a specific preference item for purposes of the federal
<br /> g. .E."-. individual or corporate alternative minimum taxes, although Bond Counsel observes that it is included in adjusted current earnings in
<br /> EH 3 calculating corporate alternative minimum taxable income. Bond Counsel express no opinion regarding other federal income tax
<br /> m c consequences relating to the accrual or receipt of interest on the Bonds. See "CERTAIN TAX MATTERS" herein.
<br /> o E.2 ii THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR REFERENCE ONLY,IT IS NOT A SUMMARY OF THE ISSUE,
<br /> E' INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF
<br /> s_5 o•0 AN INFORMED INVESTMENT DECISION.
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<br /> ac1:1•" VI The Bonds are offered when, as and if delivered and received by the Underwriters, subject to the approval as to their legality by Orrick,Herrington&
<br /> co O R Sutcliffe,Los Angeles, California,Bond Counsel,and certain other conditions. Certain legal matters will be passed upon for the Underwriters by
<br /> vE d L their counsel,Brown& Wood,Los Angeles, California,for Meridian Trust Company of California, as Trustee,by its counsel,for the City
<br /> E d H and the Authority by Edward J. Cooper, Esq., City Attorney,Santa Ana, California and for the Insurer by its counsel. Kelling,
<br /> .. a c Northcross&Nobriga, Oakland, California is serving as Financial Advisor to the Authority in connection with the issuance
<br /> s_ R of the Bonds.It is anticipated that the Bonds,in book-entry*-;a form, will be available for delivery through the facilities
<br /> Cy c of The Depository Trust Company in New York New York on or about March 23, 1994.
<br /> o Smith Barney Shearson Inc.
<br /> Prudential Securities Incorporated Rauscher Pierce
<br /> Refsnes Inc.
<br /> co co a`) E Dated:March 1994
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<br />~'.o 0 H *Preliminary,subject to change.
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