Item PFA-3 - Water Revenue Bonds

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EXHIBIT 7 PRELIMINARY OFFICIAL STATEMENT DATED JUNE 2024 NEW ISSUE - FULL BOOK ENTRY ONLY RATING: S&P Global Ratings: " " (See "RATING" herein) In the opinion of Best Best & Krieger LLP, Irvine, California, Bond Counsel, subject to certain qualifications described herein, under existing statutes, regulations, rules and court decisions, and assuming certain representations and compliance with certain covenants and requirements described herein, the interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; however, for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial stated income of certain corporations for purposes of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATTERS" herein. Dated: Date of Delivery SANTA ANA PUBLIC FINANCING AUTHORITY WATER REVENUE BONDS, SERIES 2024 Due: September 1, as shown on inside cover The Santa Ana Public Financing Authority Water Revenue Bonds, Series 2024 (the `Bonds") are being issued pursuant to an Indenture of Trust, dated as of June 1, 2024 (the "Indenture") between the Santa Ana Public Financing Authority (the "Authority") and U.S. Bank Trust Company, National Association, Los Angeles, California (the "Trustee"), and will be secured as described in this Official Statement. The Bonds are being issued (i) to refund certain outstanding obligations of the City's Water System,(ii) to finance a portion of the design, acquisition and construction of certain improvements (the "Project") to the water system (the "Water System") of the City of Santa Ana (the "City"), and (iii) to pay certain costs of issuing the Bonds. See "THE PROJECT," "THE FINANCING PLAN" and "ESTIMATED SOURCES AND USES OF FUNDS." The Bonds will be issued in book -entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of The Depository Trust Company ("DTC"), New York, New York. Interest on the Bonds will be payable on March 1 and September 1 of each year, commencing September 1, 20 . Purchasers will not receive certificates representing their interest in the Bonds. Individual purchases will be in integral multiples of $5,000. Payments of principal and interest will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds. The Bonds are payable from Revenues of the Authority, consisting principally of Installment Payments by the City pursuant to a Master Installment Purchase Agreement, dated as of June 1, 2024, as supplemented by that First Supplement to the Master Installment Purchase Agreement, dated as of June 1, 2024 (collectively, the "Installment Purchase Agreement") between the City and the Authority. The Authority has assigned, among other things, its right to receive Installment Payments to the Trustee. The Installment Payments are a special limited obligation of the City, payable from and secured by a pledge of and first lien on all Net System Revenues, subject to the parity lien, if any, of outstanding Parity Obligations and any additional Parity Obligations as provided for in the Installment Purchase Agreement, in the Payment Fund held by the City in trust under the Installment Purchase Agreement. The Bonds are subject to redemption prior to maturity as set forth herein. (See "THE BONDS -- Redemption of the Bonds.") THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM AND SECURED SOLELY BY THE REVENUES PLEDGED UNDER THE INDENTURE AND ARE NOT SECURED BY A LEGAL OR EQUITABLE PLEDGE OF, OR CHARGE OR LIEN UPON ANY PROPERTY OF THE AUTHORITY OR THE CITY, OR ANY OF THE AUTHORITY'S INCOME OR RECEIPTS, EXCEPT THE REVENUES. THE BONDS ARE NOT A DEBT, OBLIGATION OR LIABILITY OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS AND NEITHER THE FULL FAITH AND CREDIT OF THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS ARE PLEDGED TO THE PAYMENT OF THE BONDS, AND NEITHER THE AUTHORITY NOR THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION THEREFOR, AND NEITHER THE CITY, THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE THEREFOR, NOR IN ANY EVENT SHALL THE BONDS OR ANY INTEREST OR REDEMPTION PREMIUM BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN THOSE OF THE AUTHORITY AS SET FORTH IN THE INDENTURE. NEITHER THE BONDS NOR THE OBLIGATION TO MAKE INSTALLMENT PAYMENTS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY POLITICAL SUBDIVISION WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. This cover page contains information for general reference only. It is not a summary of the security or terms of this issue. Investors must read the entire Official Statement, including the section entitled "RISK FACTORS," for a discussion of special factors which should be considered, in addition to the other matters set forth herein, in considering the investment quality of the Bonds. The Bonds are offered when, as and if issued by the Authority, and accepted by the Underwriter, subject to the approval of Best Best & Krieger LLP, Irvine, California, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, A Professional Corporation, Newport Beach, California, and for the Authority and the City by Best Best & Krieger LLP, Irvine, California. It is anticipated that the Bonds in book -entry form will be available for delivery in New York, New York on [June 27, 2024]. Dated: June, 2024 Preliminary, subject to change.