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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 7, 2015 <br />TITLE: <br />REQUEST FOR PROPOSALS FOR A CITY <br />WIDE CREDIT RATING <br />{STRATEGIC PLAN NO. 4, 213} <br />CITY MANAGE <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />FTT1J*T;T*7i5rN1 <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1 " Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For_,_, <br />CONTINUED TO <br />FILE NUMBER <br />Authorize Release for an Assessment and Proposals for a citywide credit rating. <br />DISCUSSION <br />The City continues to be on track in terms of its revenue streams and management of General <br />Fund expenditures. The City is on target to exceed total General Fund revenues projections by <br />approximately $3.9 million or 3 %. This reflects the strong growth in various economic segments <br />such as restaurants /dining and the sale of new automobiles. In addition, Santa Ana continues to <br />experience positive growth in property values and Business License Tax. <br />In terms of expenditures, City Departments continue to implement elements of innovation and <br />efficiency which has allowed them to evaluate their respective operations in order to streamline <br />existing processes through the use of technology resulting in projected lower expenditures of <br />approximately $3.3 million or 2.2 %. The combination of these positive revenue and expenditure <br />trends indicate the City is on target to achieve a projected year -end surplus totaling approximately <br />$10 - $12 million. <br />Given the City's current positive financial position that reflect 20% reserves of approximately $45 <br />million, the city's success in refinancing two bond issuances, a low five percent unemployment <br />rate, and continued overall positive economic growth, the City is seeking an assessment and <br />proposals to attain a citywide credit rating from one of the three credit rating agencies — Moody's, <br />Fitch, or Standard & Poors. The City will seek proposals from the four financial advisory firms <br />approved by the City Council on January 21, 2014, for a two year period. These firms are Public <br />Financial Management Group (PFM), Fieldman Rolapp & Associates, First Southwest, and Urban <br />Futures, (UFI). <br />2913-1 <br />