4 - RESO - POLICE FACILITY BONDS

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REQUEST FOR SANTA ANA FINANCING AUTHORITY ACTION CITY COUNCIL MEETING DATE: AUGUST 5, 2014 TITLE: RESOLUTION AUTHORIZING A SUPPLEMENTAL INDENTURE RELATING TO POLICE ADMINISTRATION AND HOLDING FACILITY REVENUE BONDS SERIES 1994A RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: _a"•.• __y ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt a resolution authorizing a supplemental indenture relating to the Police Administration and Holding Facility Lease Revenue Bonds 1994A. DISCUSSION On June 3, 2014, the City Council unanimously approved resolutions executing agreements and financing documents related to the defeasance of a portion of the Police Administration and Holding Facility Lease Revenue Bonds, Series 1994A, the defeasance and refunding of the outstanding City of Santa Ana Certificates of Participation (1998 City Hall Expansion Project), and • decrease in the lease rates for the City Hall parking structure. The issuance was provided under • private placement strategy and will generate annual savings in the amount of $280,000 for the first ten years. However, during the issuance it was discovered that since the structure required that only 50% of 1994 Bonds be defeased, the denomination at which the bonds are sold ($5,000) did not hold for bonds maturing on July 1, 2016 and on July 1, 2018. As such, the approved indenture needs to be amended so that authorized denominations for bonds maturing on the aforementioned dates include the $5,000 and any integral multiple of $2,500. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's effort to meet Goal #4 City Financial Stability, Objective #2 (provide a reliable five -year financial forecast that ensures financial stability in accordance with the strategic plan), Strategy D (conduct an assessment of the City's debt and refinancing options to achieve savings). 4 -1