75A - PH - TAX-EXEMPT OBLIGATIONS

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Public Hearing- TEFRA January 19, 2016 Page 2 members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project. A public notice was published on January 4th, 2016 (Exhibit 2). California Public Finance Authority The CaIPFA was created in May 2015 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development throughout California. Its purpose is to assist local governments, non - profit organizations and businesses with the issuance of taxable and tax - exempt bonds aimed at improving the standard of living in California. The CaiPFA'S representatives have considerable experience in bond financings. To date, over seven municipalities have become members of CalPFA. The Bonds to be issued by the CaIPFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California, but are to be paid for solely from funds provided by the Borrower. There are no costs associated with membership in the CaIPFA and the City will in no way become exposed to any financial liability by reason of its membership in the CalPFA. In addition, participation by the City in the CaIPFA will not impact the City's appropriations limits and will not constitute any type of indebtedness by the City. Outside of holding the TEFRA hearing and adopting the required resolution (Exhibit 3), no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 Sustainability), Objective 3 (Facilitate diverse housing and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT (Community Health, Livability, Engagement & opportunities and support efforts to preserve Through its conduit issuance activities, the CalPFA shares 10 % of its annual administration fee it receives for the life of the bond with its member communities. It is anticipated that the 10% share of the fees will be deposited into the City's General Fund Miscellaneous Receipts account (no. 01102002 - 57991) upon receipt from CalPFA. 75A -2