Item 26 - Council Consideration of Resolution to Establish Public Financing Authority

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Finance and Management Services www.santa-ana.org/finance/ Item # 26 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 7, 2024 TOPIC: Council Consideration of Resolution to Establish Public Financing Authority AGENDA TITLE Council Consideration of Resolution Establishing the City of Santa Ana Public Financing Authority RECOMMENDED ACTION Adopt a Resolution establishing the City of Santa Ana Public Financing Authority (Agreement No. A-2024-XXX). RESOLUTION NO. 2024-XXX entitled 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 GOVERNMENT CODE §84308 APPLIES: No 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. In order to issue water revenue refunding bonds, staff recommends the City and the City of Santa Ana Housing Authority (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 water revenue refunding 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