Preliminary Official Statement (1996)

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Investment Policy Santa Ana annually adopts an investment policy which is intended to outline the policies for prudent investment of idle City funds by providing guidelines for suitable investments while maximizing the efficiency of the City's Cash Management Program. Under the direction of the Executive Director, Finance and Management Services Agency, the responsibility for the day to day investment of the City's funds is delegated to the Treasury Manager only. The investment policy applies to all financial assets of the city and are pooled in an actively managed portfolio. The City's Cash Management Program is designed to accurately monitor and forecast expenditures and revenues, thus enabling the investment of funds to the fullest extent possible. Maturities are matched as close as possible to coincide with cash requirements. Length of maturities is based on consideration of the yield curve and estimate of future interest rate movement. The investment policies and practices of the City of Santa Ana are based upon Federal, State and Local law and prudent money management. The primary goals of these policies are: 1. To assure compliance with all Federal, State and Local laws governing the investment of monies. 2. To protect the principal monies of the City. 3. To generate the maximum amount of investment income within the parameters of this Statement of Investment Policy and the Investment Portfolio Guidelines. The statement of investment policy is available at the Treasury Division of Santa Ana's Financial and Management Services Agency. Description of Leased Premises The following real property and improvements constitute the Leased Premises under Santa Ana's Site Lease and Lease Agreement: The Leased Premises for Santa Ana consist of the Carl Thorton Park located at 1801 West Segerstrom Avenue and Bomo Koral Park located at 900 West MacArthur Boulevard, both in the City of Santa Ana. Carl Thorton Park is approximately 32.6 acres in size and Bomo Koral Park is approximately 11.0 acres. Based on an appraisal dated May 13, 1996, conducted by Goeppner and Associates, Inc. of Huntington Beach, California, the parks were valued at $4,875,000 for Karl Thorton Park and $1,750,000 for Bomo Koral Park. The City of Santa Ana's Site Lease and Lease Agreement will support the City's share of the Bonds which is $6,585,000*. Pursuant to the provisions of the Indenture, the City has covenanted to replace the parks with other assets of the City acceptable to the Insurer as soon as additional assets become available. The City expects that several assets will become available in early 1997 to meet the City's covenant. The City currently anticipates using a set of four or five fire stations as replacement assets. *Preliminary, subject to change. B-73