55B - RESO - WARNER ASSESSMENT DISTRICT

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Resolution to Issue Bonds related to the Warner Industrial Community Assessment District June 21, 2016 Page 3 Analysis Adopting the Resolution for Issuance (Exhibit 2) approves the following actions: • Issuance of the Bonds in an aggregate principal amount of the unpaid assessments. • Execution of Bond documents: • Fiscal Agent Agreement by and between the City and U.S. Bank National Association, as fiscal agent, to establish the terms and conditions pertaining to the issuance (Exhibit 3). • Preliminary Official Statement containing information regarding the AD, the Bonds, including the terms and conditions thereof, the security therefor, and the risks of investment related thereto (Exhibit 4). • Bond Purchase Agreement by and between the City and the underwriter for the Bonds to establish the terms and conditions pursuant to which the City will sell the Bonds to the underwriter and the underwriter will purchase such Bonds from the City (Exhibit 5). • Continuing Disclosure Agreement (CDA) whereby the City will agree to provide certain annual reports to the municipal bond market regarding the Bonds and the AD, and to provide reports regarding the occurrence of listed events specified in the CDA (Exhibit 6). • Establish the financial parameters to which the sale of the Bonds will be subject: • The principal amount of the Bonds will not exceed $ 2,173,500. • The principal amount will be reduced by assessment prepayments received prior to issuance of the bonds. • The interest rate on any maturity of the Bonds shall not exceed 6.50 percent. • The purchase price for the Bonds shall not be less than 98% of the aggregate principal amount of the Bonds. • The final maturity of the Bonds shall be no later than September 2, 2036. • Determination that the City will not obligate itself to advance funds from the City treasury to cure any deficiency in the redemption fund, (i.e., the fund used to pay debt service on the Bonds). Following the adoption of the resolution of issuance of the bonds, the steps below remain to complete the issuance of the Bonds and construction of the public street improvements: 55B -3