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<br />Financing Related <br />February 7, 2005 <br />Page 2 <br /> <br />to Vehicle License Fees <br /> <br />The California Statewide Communities Development Authority (CSCDA) has <br />developed a program whereby the Authority issues bonds in order to <br />purchase VLF receivables from cities and counties. The CSCDA program <br />enables local governments to sell their VLF receivable for a minimum sale <br />price of 90.86 of its value. Currently, 137 cities and counties in <br />California have expressed an interest in participating in this program. <br /> <br />For the City of Santa Ana, the maximum cost of issuance, including <br />capitalized interest costs, credit enhancement and fees, will be $539,830 <br />which will result in a minimum return of $5.36 million. If at the time of <br />sale the market permits a higher sale price, the city will receive a <br />higher amount. In order to participate in this program, the City must <br />join CSCDA by adopting the subject resolution for a Joint Exercise of <br />Powers Agreement and the resolution for the purchase and sale agreement. <br /> <br />FISCAL IMPACT <br /> <br />As the maximum cost of issuance for the City of Santa Ana's participation <br />in this program is $539,830, approval of the recommended actions will <br />generate an estimated $5.36 million in revenues that will be dedicated to <br />addressing the projected budget deficit in the 2005-2006 year. Funds from <br />this transaction will be deposited in general fund revenue account <br />(account no. 011-01-5321-02). <br /> <br />~~~~~) ~Á~ <br /> <br />Francisco Gutierrez <br />Executive Director <br />Finance & Management Services Agency <br /> <br />GS/RC <br /> <br />55A-2 <br />