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<br />REQUEST FOR <br />FINANCING <br />AUTHORITY ACTION <br /> <br />~ <br />~ <br /> <br />FINANCING AUTHORITY MEETING DATE: <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />DECEMBER 20, 2004 <br />TITLE: <br /> <br />APPROVED <br />D As Recommended <br />D As Amended <br />D Ordinance on 1 sl Reading <br />D Ordinance on 2nd Reading <br />D Implementing Resolution <br />D Set Public Hearing For <br /> <br />PURCHASE OF DEBT SERVICE <br />SURETY BOND FOR POLICE <br />ADMINISTRATION AND HOLDING <br />FACILITIES LEASE REVENUE <br /> <br /> <br />:ONDS, S¡¿;¿~a <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />1. Authorize the execution of documents and related actions necessary <br />for the purchase of a debt service surety bond to be used as a <br />replacement for one half of the cash funded debt service reserve of <br />the Police Administration and Holding Facility Lease Revenue Bonds, <br />Series 1994A. <br /> <br />2. Approve a. financing team composed of financial advisor Northcross, <br />Hill & Ach, and bond counsel Orrick, Herrington & Sutcliffe LLP. <br /> <br />DISCUSSION <br /> <br />On February 22, 1994, the City Council and the Santa Ana Financing <br />Authority (the "Authority") adopted resolutions approving a ground lease, <br />Lease and Purchase Contract, as well as other actions in connection with <br />the financing for the Police Administration and Holding Facility. On <br />March 23, 1994, the Authority issued Police Administration and Holding <br />Facility Lease Revenue Bonds, Series 1994A in the amount of $107,399,439 <br />to fund the construction and equipping of this facility. The lease- <br />financing mechanism proposed for the debt issuance of the bonds required <br />that the Authority issue bonds, with the City covenanting to make annual <br />lease paYments from the general fund equal to the debt service on the <br />bonds. On February 26, 2004, as a result of favorable interest rates, the <br />Authority refinanced $38,845,000 of these bonds, resulting in a one-time <br />advance savings to the City of $3,250,000. <br /> <br />3-1 <br />