PFA Item 02 - Board Consideration of Resolutions to Approve and Adopt City of Santa Ana Public

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Board Consideration of Resolutions to approve and adopt City of Santa Ana Public Financing Authority Bylaws and to declare its intent to issue Lease Revenue Bonds May 7, 2024 Page 2 4 2 4 2 DISCUSSION Introduction Staff has been working with Urban Futures, Inc. (UFI) municipal advisors and Best Best and Krieger LLP (BB&K) bond counsel to consider alternatives to pay for water system capital improvement projects and refund the existing City of Santa Ana Financing Authority Water Revenue Refunding Bonds, Series 2014. The City may use water system revenues to finance projects through the issuance of water revenue refunding bonds structured as lease revenue bonds. In order to issue bonds, staff recommends the City and the Housing Authority of the City of Santa Ana (Housing Authority) form a joint powers authority and enter into a joint exercise of powers agreement. The joint powers authority is proposed to be called the City of Santa Ana Public Financing Authority (Financing Authority) and the Financing Authority will issue the bonds. Background The Joint Exercise of Powers Act, Government Code section 6500 et seq. (Act), permits public agencies to enter into a joint exercise of powers agreement (JEPA) to form a separate governmental entity to jointly exercise powers common to the member agencies (Government Code Section 6502). The parties to the JEPA may create a separate legal entity (i.e. joint powers authority) under the JEPA to administer the agreement. Additionally, joint powers authorities have the power of issuing bonds secured by local revenues, such as the City’s water system revenues. This is a commonly utilized financing mechanism for cities throughout the State of California. Discussion In consultation with BB&K, if the City desires to utilize water system revenue financings in the future, then the Financing Authority will be a necessary component of such financings. The governing body of the Financing Authority will be the Mayor and members of the City Council. Any regular meeting of the Financing Authority’s Board of Directors shall be held at the same time and same location as regular meetings of the City Council and noticed in the same manner. The Board of Directors of the Financing Authority will conduct a regular meeting at least once each calendar year on the first Tuesday of December. The Financing Authority Board meetings will have separate agendas from the City Council meetings and will comply with Brown Act requirements. For City Council consideration: •Resolution No. 2024-XXX Resolution of the City Council of the City of Santa Ana Authorizing the Creation of the City of Santa Ana Public Financing Authority and Certain Other Matters Pertaining Thereto.