Agenda Packet_2024-06-04 - Laserfiche WebLink

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TABLE OF CONTENTS -i- INTRODUCTION ....................................................................1 General ............................................................................1 The Authority and the City ..............................................1 Purpose ............................................................................1 Security for the Bonds .....................................................2 Parity Obligations ............................................................2 Limited Obligations .........................................................2 Forward-Looking Statements ..........................................3 Summaries Not Definitive ...............................................3 THE FINANCING PLAN .........................................................3 Refunding of Prior Obligations ........................................3 The Project ......................................................................4 Environmental Compliance .............................................4 ESTIMATED SOURCES AND USES OF FUNDS .................5 DEBT SERVICE.......................................................................6 THE BONDS ............................................................................7 Description of the Bonds .................................................7 Redemption of the Bonds ................................................7 Parity Obligations ............................................................9 Subordinate Obligations ................................................ 10 Book-Entry Only System ............................................... 10 Transfer and Exchange of Certificates ........................... 10 SECURITY FOR THE BONDS ............................................. 10 General .......................................................................... 10 Net System Revenues .................................................... 11 Obligations of City Under Installment Purchase Agreement ............................................................... 12 Rate Covenant ............................................................... 12 Pledge Under the Indenture ........................................... 13 Application of System Revenues ................................... 13 Application of Revenues................................................ 14 THE AUTHORITY ................................................................. 16 THE CITY .............................................................................. 16 THE WATER SYSTEM ......................................................... 16 General; Service Area .................................................... 16 Organization and Staff ................................................... 17 Water Sales .................................................................... 18 Land Use........................................................................ 18 The Project; Future Water System Improvements .......................................................... 19 Storage Capacity ............................................................ 19 Water Sources and Supply; Water Purchases ................ 19 MWD Supplies .............................................................. 24 Water Demand, Deliveries and Sales Revenues ............ 24 Water System Rates and Charges .................................. 25 Collection Procedures .................................................... 27 Outstanding Water System Indebtedness ....................... 28 Largest Customers ......................................................... 28 Historic Operating Results and Debt Service Coverage ................................................................. 29 RISK FACTORS..................................................................... 29 Water System Demand and Growth .............................. 29 Water System Expenses ................................................. 30 Parity Obligations .......................................................... 30 Proposition 218 .............................................................. 30 Constitutional Limit on Appropriations, Fees and Charges ............................................................. 31 Limited Recourse on Default ......................................... 31 No Debt Service Reserve Account ................................ 31 Limitations on Remedies Available; Bankruptcy ............................................................. 31 No Obligation or Ability to Tax .................................... 32 Change in Law .............................................................. 32 Geologic and Topographic ............................................ 32 Cybersecurity ................................................................ 32 Drought Measures ......................................................... 33 Climate Change ............................................................ 34 Environmental Regulation ............................................ 35 Risks Associated with OCWD and MWD .................... 35 Impact of State Budget ................................................. 35 Secondary Market for Bonds ........................................ 35 Federal Tax-Exempt Status of the Bonds ...................... 36 IRS Audit of Tax-Exempt Issues .................................. 36 Taxpayer Protection and Government Accountability Act Initiative .................................. 36 Global Health Emergencies and Considerations; Infectious Disease Outbreak ................................................................. 36 TAX MATTERS .................................................................... 37 CONTINUING DISCLOSURE ............................................. 38 NO LITIGATION .................................................................. 39 RATING 39 FINANCIAL ADVISOR ........................................................ 39 PROFESSIONAL FEES ........................................................ 39 APPROVAL OF LEGALITY ................................................ 39 UNDERWRITING ................................................................. 39 ADDITIONAL INFORMATION .......................................... 40 APPENDIX A – CITY OF SANTA ANA GENERAL DEMOGRAPHIC INFORMATION .......................... A-1 APPENDIX B – SUMMARY OF CERTAIN DEFINED TERMS AND PRINCIPAL LEGAL DOCUMENTS ........................................................... B-1 APPENDIX C – FORM OF FINAL OPINION OF BOND COUNSEL ..................................................... C-1 APPENDIX D – FORM OF CONTINUING DISCLOSURE AGREEMENT .................................. D-1 APPENDIX E – BOOK ENTRY PROVISIONS ................ E-1 APPENDIX F - COMPREHENSIVE AUDITED FINANCIAL REPORT ............................................... F-1 City Council 38 – 157 6/4/2024