HomeMy WebLinkAbout1978-12 CRA
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RESOLUTION NO.
78-12
RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA APPROVING
THE OFFICIAL STATEMENT TO BE USED IN CONNEC-
TION WITH THE ISSUANCE AND SALE OF THE CITY
OF SANTA ANA REDEVELOPMENT PROJECT AREA,
1978 TAX ALLOCATION BONDS OF SAID AGENCY
8
The Community Redevelopment Agency of the City
of Santa Ana DOES HEREBY RESOLVE, DETERMINE AND ORDER as
follows:
Section 1.
This Agency hereby approves the
Official Statement to be used in connection with the issuance
and sale of
the Agency's City of Santa Ana Redevelopment
Project Area, 1978 Tax Allocation Bonds (the "Bonds"), in
substantially the form presented on this date and attached
hereto as Exhibit "A", and authorizes its distribution to
the prospective purchasers of the Bonds.
The document re-
.
ferred to herein is on file in the office of the Secretary.
ADOPTED, SIGNED AND APPROVED this 28th day of
February, 1978.
~ß~C~r1,^~ c-=
Cha1rman of t Commun1ty Redevelop-
ment Agency of the City of Santa Ana
ATTEST"
-
f~~
Secretary of the Community
ment Agency of the City of
Redevelop-
Santa Ana
?iç{:¿¿
City Attorney
(SEAL)
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Proof of Fob'.., J 16. 1978
GALLEY 1-
OFFICIAL STATEMENT
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
Community Redevelopment
Agency of the
City of Santa Ana
Orange County, California
$13,500,000
City of Santa Ana
Redevelopment Project Area
1978 Tax Allocation Bonds
Bids 10 be received by a represenlallve ollhe Redevelopmenl
Agency allhe Ofllcaa 01 O'Melveny " Myers,
36th Floo, Conlerence Room, 611 Weal Slxlh Streel,
L.otI Angeles, Celllornia 90017, a111:00 A.M., on
Tlieaday, March 21, 1978.
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5B
EXHIBit A
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Prool 01 Fob..." 21, 1978
SANTA ANA-7923
Bownø of San Francisco, Inc., 981-7882
GALLEY 2-
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
Orange County, California
CITY COUNCIL AND MEMBERS OF THE AGENCY
Vernon S. Evans, Mayor
James E. Ward, Vice-Mayor
David L. Brandt, Chairman of the Agency
Gordon Bricken David F. Ortiz
John Garthe Harry K. Yamamoto
COMMUNITY REDEVELOPMENT COMMISSION
Alexander NaIle, Chairman
James err, Vice-Chairman
John Coil
John W. Hill
Ted Jessee
Roberl Newcomb
Hector Godinez
Richard E. Goblirsch, Executive Director of the Agency
Bruce C. Spragg, City Manager
Keith L. Gow, City Attorney
Florence I. Malone, City Clerk
Lawrence Shaffer, Director of Finance
SPECIAL SERVICES
O'Melveny & Myers, Los Angeles
Bond Counsel
Eugene B. Jacobs, Los Angeles
Agency Counsel
Stone & Youngberg Municipal Financing Consultants, Inc., San Francisco
Financing Consultants
United California Bank, Los Angeles
Fiscal and Paying Agent
Manufaclurers Hanover Trust Company, New York City
Northern Trust Company, C/úcago
Paying Agents
THE DATE OF THIS OFFICIAL STATEMENT IS FEBRUARY 28, 1978
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Proof 01 February 21, 1976
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-788>:
GALLEY 3--
(LETTERHEAD TO COME)
February 28, 1978
TO WHOM IT MAY CONCERN:
The purpose of this Official Statement is to supply information to prospective bidders on and buyers of
$13,500,000 City of Santa Ana Redevelopment Project Area, 1978 Tax Allocation Bonds (the "Bonds").
authorized and issued for the purpose of assisting in the financing of said Project, paying of expenses in
connection with issuance, and providing reserve funds as additional security for said Bonds.
The material contained in this Official Statement was prepared by Stone & Youngberg Municipal
Financing Consultants, Inc., in the capacity of financing consultant to the Community Redevelopment Agency
of the City of Santa Ana with regard to the City of Santa Ana Redevelopment Project Area, 1978
Tax Allocation Bonds. (Such firm will receive compensation from the Agency contingent upon the sale
and delivery of the Bonds.) Summaries herein presented of the Resolution of Issuance, the Community
Redevelopment Law, the Redevelopment Plan for said Project (as amended), financial and economic data
do not purport to be complete, and reference is made to the documents on file in the office of the Executive
Director of the Agency for further information. Statements which involve estimates or opinions, whether
or not expressly so described herein, are intended solely as such and are not to be construed as factual reports"
The Official Statement does not constitute a contract with buyers or holders, from time to time, of the
Bonds. The Resolution of Issuance, which does constitute such a contract, accompanies the Official Statement
as originally distributed and is available to any prospective bidder on request from said Executive Director or
the Agency's financing consultant.
The legal opinion, approving the validity of the Bonds, will be furnished by O'Melveny & Myers,
Los Angeles, California, Bond Counsel (see "Legal Opinion"). Bond Counsel's participation in the revie\\
of this Official Statement has been limited to reviewing the statements of law and legal conclusions as set
forth hereinafter under the caption "The Bonds."
No dealer, broker, salesman or other person has been authorized by the Agency 10 give any information
or to make any representations other than those contained herein and, if given or made, such other infor-
mation or representation must not be relied upon as having been authorized by any of the foregoing. This
Official Statement does not constitute an offer 10 sell or the solicitation of any offer to buy nor shall there
be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such offer, solicitation or sale.
The execution and dislribution of this Official Statement have been duly authorized by the Agency.
Community Redevelopment Agency of the
City of Santa Ana
Isl
DAVID L. BRANDT
Chairman
Isl
RICHARD E. GOBLIRSCH
Executive Director
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~: INTRODUCTION
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Proof of Fobr.ary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
The Constitution and laws of the State of Cali-
fornia recognize the vital need for the elimination
and rehabilitation of deteriorating urban areas in
the state through conservation and redevelopment
efforts, and provide an effective means of accom-
plishing these objectives. Under the provisions of
the Community Redevelopment Law (California
Health & Safety Code, Sections 33000 et seq.),
communities containing areas subject to economic
and social deterioration may remedy these condi-
tions by activatmg a redevelopment agency, which
has the power to designate specific areas for rede-
velopment, prepare plans for redevelopment of the
designated areas, and carry out the approved plans.
Financing of redevelopment projects in California
may be provided through the issuance of tax alloca-
tion bonds or notes by the agency. These types of
obligations are payable from property taxes collected
from within a project area upon the increase in
assessed valuation which has resulted from redevel-
opment, as more fully described in this official state-
ment. The local community may also advance funds
to the redevelopment agency to help meet project
costs, in which event, the advances may be repaid
from such increased taxes"
In January 1973, the Santa Ana City Council
determined that there was a need for redevelop-
ment of portions of the city, and by ordinance
activated the Community Redevelopment Agency of
the City of Santa Ana which is a public entity sepa-
rate and apart from the city" The City Council serves
as the Agency"
The City of Santa Ana Redevelopment Project
Area, (the "Project") the Agency's first and to date,
only project, was approved by a city ordinance
adopted July 2, 1973. The Project redevelopment
plan was amended in June 1975, adding about 190
acres to the ,Project. The amended Project consists
of about 694 acres, and includes residential, com-
mercial, industrial and public areas.
The $13,500,000 principal amount of 1978 Tax
Allocation Bonds currently offered for sale on behalf
of the Project will be used to finance acquisition of
land by the Agency for resale for private develop-
ment, site clearance, relocation expenses, construc-
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Proof of Fobr.ary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 5-
tion of public improvements, to repay city advances
to the Project, to establish a bond reserve and to pay
Gosts of Bond issuance.
Payment of interest and principal on the 1978
Tax Allocation Bonds described herein is secured
by a first and irrevocable pledge of all property
taxes received from increased assessed valuations of
the Project over such valuations recorded prior to
adoption of the Redevelopment Plan and the
amendment thereto for this Project (defined herein
as the Tax Revenues), and all moneys set aside as
a debt service reserve, subject, however, to permitted
payments of "Surplus" Tax Revenues under the
terms and conditions described herein and in the
Resolution of the Agency providing for the issuance
of these bonds.
Since adoption of the Redevelopment Plan for
the original Project area in July 1973, and for the
amended Project area in July 1975, assessed valua-
tions on all property in the Project have increased by
$13,239,616 over the base year valuations. AI the
tax rates applicable in 1977/78 to taxable property
in the Project ($8,2870 per $100 assessed valuation
on all property plus a minimum of $"3845 per $100
assessed valuation on land and improvements only),
the Project will generate about $1,167,000 of Tax
Revenues in the current 1977/78 fiscal year.
As discussed on pages" " through.. of this offi-
cial statement, it is anticipated that Project incremen-
tal assessed valuation on all property will increase at
least $3,861,272 by 1980/81 due to new develop-
ment recently completed or in progress. This will
result in an estimated minimum total incremental
assessed valuation of $17,100,888 by 1980/81 and
in each subsequent fiscal year" At this level, and
assuming continuation of the 1977/78 tax rates
discussed above, the Tax Revenues of $1,476,000
generated will cover estimated maximum annual
interest and principal requirements on the 1978
Bonds by about 1.33 times. It is anticipated by the
Agency that additional development will occur in the
Project in future years but no projections of such
development or resulting incremental assessed valu-
ation have been made for the above computations,
nor have increases in valuations of existing develop-
ment been projected. (See Proposed Property Tax
Limitation, Constitutional Amendment on page. ..)
Tms Introduction does not purport to present the
complete provisions of the bonds now being offered,
their terms of sale, documents authorizing their issu-
ance and other relevant data. Reference is hereby
made to the Official Statement, Notice Inviting Bids,
and Resolution No. "......".".. of the City of
Santa Ana Community Redevelopment Agency for a
complete recitation of such provisions and informa-
tion. Tms Introduction is part of the Ofjicial State-
menJ and should be read in confunction therewith.
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Proof of Februa" 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY ~
THE BONDS
The statements herein concerning the Bonds and
the Resolution are summaries of certain provisiallS
thereof. They make use of definitions, do not purport
to be complete, and are qualified in their entirety by
reference to the Resolution, a copy of which accom-
panies this official statement.
Authority for Issuance
The $13,500,000 City of Santa Ana Redevelop-
ment Project Area, 1978 Tax Allocation Bonds
(hereinafter sometimes referred to as the Bonds"),
currently being offered, were authorized pursuant to
a resolution of the Community Redevelopment
Agency of the City of Santa Ana adopted February
28, 1978 (the "Resolution"). The City Council ap-
proved the issuance of the Bonds on the same date.
The Bonds will be issued under the provisions of and
in full conformity with the Constitution and laws of
the State of California, including the Community
Redevelopment Law (commencing with Section
33000 of the California Health and Safety Code-
the "Law"), and acts amending or supplementing
Ihat Law. A copy of the Resolution accompanies
this official stalement as originally distributed.
Sale of Bonds
Bids for the purchase of the Bonds will be re-
ceived on behalf of the Community Redevelopment
Agency of the Cily of Santa Ana until II :00 A.M.,
TueSday, March 21, 1978 at the offices of O'Melveny
& Myers, Bond Counsel, 36th Floor Conference
Room, 611 West Sixth Street, Los Angeles, Cali-
fornia 900 I 7. Delails as to the terms of sale are in-
cluded with the Notice Inviting Bids, adopted Feb.
ruary 28, 1978, a copy of which is included with
this official slatement as originally distribuled.
Description of Bonds
The $13,500,000 principal amount of City of
Santa' Ana Redevelopment Project Area, 1978 Tax
Allocation Bonds will be dated as of April I, 1978
and be issued either in coupon form in denomina-
tions of $5,000 each, numbered 1 through 2700, or
in fully registered form in the denomination of
$5,000 or any multiple thereof, maturing on April
I in the years and in the amounts shown below in
the schedule of maturities. Interest on the Bonds is
payable semiannually on each April 1 and October
I commencing October I, 1978. The Bonds, the in-
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Proof 01 Fobr.ary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 7-
terest thereon, and any premiums upon the redemp-
tion thereof prior to maturity are payable at the Los
Angeles, California, principal office of the Fiscal
Agent, United California Bank (Trust Division);
or, at the option of the holder, at Manufacturers
Hanover Trust Company, New York City; or North-
ern Trust Company, Chicago, Illinois.
SCHEDULE OF MATURITIES
Maturity Maturity Principal
Dale Principal Dale
April 1 Amount April 1 Amounl
1979 ." $ 225,000 1992 ". $ 520,000
1980 .. 240,000 1993 ". 555,000
1981 .. 260,000 1994 .. 590,000
1982 .. 275,000 1995 " 625,000
1983 " 295,000 1996 ". 670,000
1984 .. 315,000 1997 ". 715,000
1985 ." 335,000 1998 ". 760,000
1986 .. 355,000 1999 ". 810,000
1987 .. 380,000 2000 .. 860,000
1988 .. 405,000 2001 ". 915,000
1989 .. 430,000 2002 .. 980,000
1990 .. 455,000 2003 .. 1,045,000
1991 " 485,000
Registration
The Bonds will be issued as coupon bonds ex-
changeable for fully registered bonds, at the holders'
option, with the privilege of exchange as set forth
in the Resolution.
Redemption Provisions
Bonds maturing on or prior to April I, 1989, a
total principal amount of $3,515,000, are not subject
to call or redemption prior to their respective matur-
ity dates. Bonds maturing on or after April I, 1990,
a total principal amount of $9,985,000, are subject
to call and redemption as a whole or in part in
inverse order of maturity and by lot within a single
maturity at the option of the Agency, from any avail-
able source of funds, on April 1, 1989 or on any
interest payment date thereafter, upon payment of
accrued interest to the date of redemption and a
premium equal to one-quarter of one percent for
each year or portion of a year from the redemption
date to the maturity date, said premium not to ex-
ceed three percent (3%). Notice of redemption
shall be given as provided in the Resolution.
Legal Opinion
The opinion of O'Melveny & Myers, Los Angeles,
California, Bond Counsel, attesting to the validity of
the Bonds, will be supplied free of charge to the
original purchaser of the Bonds. A copy of the legal
opinion, certified by the official in whose office the
original is filed, will be printed on each Bond without
charge to the purchaser.
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Proof of Fobr.ary 16. 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 8--
The statements of law and legal conclusions set
forth in this official statement under the heading
"The Bonds" have been reviewed by Bond Counsel.
Bond Counsel's employment is limited to a review
of the legal proceedings required for the authoriza-
tion of the Bonds and to rendering an opinion as to
the validity of the Bonds and the exemption of inter-
est on the Bonds from income taxation (see section
hereof entitled "Tax Exempt Status"). The opinion
of Bond Counsel will not consider or extend to any
documents, agreements, representations, offering cir-
culars or other material of any kind concerning the
Bonds, including this official statement, not men-
tioned in this paragraph"
Tax Exempt Status
In the opinion of Bond Counsel, interest on the
Bonds is exempt from present federal income taxes
and from State of California personal income taxes
under existing statutes, regulations and court deci-
sions.
Legality for Investment in California
The California Community Redevelopment Law
provides that bonds authorized and issued in the
same manner and for the same purposes as the
City of Santa Ana Community Redevelopment Proj-
ect Area, 1978 Tax Allocation Bonds shall be legal
investments for all banks, including trust companies,
and various other financial institutions, as well as for
trust funds and other public bodies. The Community
Redevelopment Law also provides that such bonds
are authorized security for public deposits.
The Superintendent of Banks of the State of Cali-
fornia has previously ruled that bonds of a redevel-
opment agency are, by said statute, legal investments
in California for savings banks. As such, the Bonds
would also be legal investments for all trust funds,
and for the funds of all insurance companies, com-
mercial banks, trust companies, and any public or
private funds which may be invesled in county,
municipal, or school district bonds. The Bonds may
be deposited as security for the performance of any
act whenever the bonds of any county or munici-
pality may be so deposited, and may also be used as
security for the deposit of public moneys in banks
in the state. A separate ruling from the Superintend-
ent of Banks has not been requested for these Bonds"
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Proof of Fobr.ary 16, 1976
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 9 -
Purpose and Disposition of
Bond Proceeds
Proceeds of the Bonds are to be used to finance
acquisition of land for resale for redevelopment, re-
location and site clearance, repay city advances to
the Project, establish a bond reserve and related
expenses of Bond issuance, as more fully described
in the section of this official statement entitled "City
of Santa Ana Redevelopment Project Area,"
Under the provisions of the Resolution, the Fiscal
Agent will receive the proceeds from the sale of the
Bonds and will apply them as follows:
(I) An amount equal to the accrued interest
and premium, if any, on the Bonds will be de-
posited in the Interest Account of the City of
Santa Ana Redevelopment Project Area Special
Fund,
(2) A sum equal to maximum annual debt
service on the Bonds will be deposited in the Re-
serve Account of the City of Santa Ana Redevel-
opment Project Area Special Fund,
(3) The balance of the proceeds will be de-
posited in the City of Santa Ana Redevelopment
Project Area Redevelopment Fund, to be ex-
pended for the purposes for which the Bonds
were issued"
The estimated amount of Bond proceeds to be
used for each of the specified purposes is as pre-
sented in the tabulation below,
CITY OF SANTA ANA REDEVELOPMENT
PROJECT AREA
Disposition of Bond Proceeds
Land acquisition/relocation/demoli-
tion """""""""""""""'"
Public improvements""""",,,"
Project administration and repayment
of city advances "'""""'""""'
Reserve Account (maximum annual
bond service) "'"'"""""""'""""
Provision for Bond discounl (5%
maximum) '""""""'"'"'""
Costs of issuance (legal, financing,
prinling,etc,) "'"'""'""'""""'
Principal Amount of Bonds" "' , " "
$ 7,284,650
3,077,350
1,200,000
1,113.000
675,000
150,000
$13,500,000
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Proof of Fobrua" 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 10-
Security
The Bonds are payable from any available funds
of the Agency and are secured by a first and exclu-
sive pledge of all Tax Revenues (as defined below)
and all moneys in the Reserve Account (to be estab-
lished with the Fiscal Agenl) " The Tax Revenues
are irrevocably pledged in their entirety to the pay-
menl of the Bonds, so long as any of the Bonds re-
main outstanding or unprovided for. However, Ihe
Resolution provides for discretionary disbursement of
a portion of the Tax Revenues to the Agency after
certain coverage requirements and other conditions
precedent have been met (see section below entitled
"Creation of Funds and Accounts"-"Surplus"),
Under the provisions of the Community Redevel-
opment Law and the Redevelopment Plan for the
City of Santa Ana Redevelopment Project Area,
taxes on property in the Project levied by any tax-
ing agency will be allocated in the following manner
commencing April!, 1978, the date of the Bonds:
(\) Taxes levied at the total prevailing rates
each year against an amount equivalent to the
recorded 1972/73 assessed valuation of property
within the original Project and the 1974/75 as-
sessed valuation of the property added to the Proj-
ect in 1975 (as determined by the Orange County
Auditor-Controller, collectively the "frozen
base"), will continue to be paid into the funds of
the respective taxing agencies,
(2) Taxes derived from increases in the as-
sessed valuation of properly within the Project
above the frozen base occurring for any reason
(the "Tax Revenues") will be deposited in the
Special Fund of the Agency, held and admin-
istered by the Fiscal Agent for payment of the
Bonds.
TIíe Bonds are special obligations of the Commu-
nity Redevelopment Agency of the City of Santa
Ana and as such are not a debt of the City of Santa
Ana, the State of California, or any of ils political
subdivisions, Neither the city, the state, nor any of its
political subdivisions are liable for their payment,
These Bonds do not constitute an indebtedness within
the meaning of any constitutional or slatutory debt
limitation or restriction,
The validity of the Bonds is not dependent upon
the complelion of the Project or upon the perform-
ance by anyone or his obligation relative to the
Project.
Properly Tax Rate Limitations
and Exemptions
The California Legislature has enacted legislation
intended to limit future increases in ad valorem
property tax rates" The legislation generally limits
all future general purpose tax rates to that imposed
during either the 1971/72 or 1972/73 fiscal year,
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Proof of Fobrua" 16. 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 11 -
or the rates set by the enabling statute of the par-
ticular taxing entity" Tax rate limits may be raised
by any amount which is approved by a majority
vote of the electorate" Tax rates may also be in-
creased under an inflation or "cost-of-living" for-
mula incorporated in the legislation, This legislation
does not restrict tax rates levied for certain limited
purposes, e,g" general obligation bonds or for voter
approved pension plans,
Certain exemptions from property taxes have been
granted to specific classes of property located in Cal-
ifornia, Revenues lost by local taxing agencies from
two of these exemptions (the homeowners' property
tax exemption and the business inventories exemp-
tion, which are discussed under the section "City
Financial Data" in this official statement) are reim-
bursed by the State and are allocated to eligible
redevelopment agencies in the same manner as lo-
cally collected taxes" Revenues lost as a result of
other types of exemptions are not reimbursed, but
assessed valuations of such exempt property are not
reflected in either the frozen base roll or subsequent
years' rolls, There is no assurance that additional
tax rate limitations or exemptions will not be ap-
proved, nor is there any assurance that revenues
lost will continue to be reimbursed to local taxing
agencies or allocated to redevelopment agencies. To
the extent that such limitations or exemptions are
approved, and reimbursement and allocation of lost
revenues are not made, the security of the Bonds
could be adversely affected,
Redevelopment agencies in California do not have
the power to levy or collect property taxes, but must
rely upon the taxes levied on property within a
project by other taxing agencies for the production
of Tax Revenues, The 1977178 aggregate tax rate
for all purposes currently applicable to all property.
located within the Project is at least $8.2870 per
$100 assessed valuation" In addition a tax rate of at
least $.3845/$100 A,V, on land and improvements
only is applicable to the Project. This rate is in
addition to the aforementioned $8"2870 on all prop-
erty, For the purposes of this official statement,
projections of Tax Revenues to be received in or
for 1977/78 and subsequent years are based upon
these 1977/78 tax rates.
The present California system of levying taxes
and applying funds for public school purposes has
been held unconstitutional under provisions of the
California Constitution by the California Supreme
Court in Ihe case entitled Serrano v, Priest, 18 Cal.
3d 728 (1976)" The decision requires that a new
system for financing California primary and second-
ary schools must be implemented by September 3,
1980.
The Superior Court judgment as affirmed by the
California Supreme Court contains a statement that
the existing public school financing system shall con-
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Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
tinue to operate until an appropriate system, not in
violation of the California Constitution, can be
placed into effect.
Legislation has been enacted by the California
legislature in response to Serrano v, Priest, This leg-
islation significantly increases the amount of state
money supplied to public school districts having a
low local property tax basis, and provides for some
equalization of tax moneys by redistributing some
tax revenues of school districts having a high per-
pupil property tax basis to school districts having a
low per-pupil property tax basis"
It is likely that further litigation will result to
determine whether the enacted legislation satisfies
the constitutional requirement pronounced in Ser-
rano v, Priest, To the extent this decision and any
future legislative or judicial action required to im-
plement or enforce such decision may limit the
ab;lity of schools to continue to levy ad valorem
property taxes for the support of education, Tax
Revenues may be reduced, adversely affecting the
security of the Bonds, The total 1977/78 tax rate for
public elementary and high schools within the Proj-
ect subject to such decision is $3.5490 per $100
assessed vaJuation, of which an undetermined por-
tion would be subject to such decision,
Proposed Property Tax Limitation,
Constitutional Amendment
The Agency has been made aware of a proposed
initiative measure entitled "Property Tax Limita-
tion, Initiative, ConstitutionaJ Amendment", com-
monly known as the "Jarvis Initiative," which has
qualified for a place on the ballot at the June 6,1978
statewide election,
The office of the Attorney General has provided
the following summary of the measure:
PROPERTY TAX LIMITATION, INITIATIVE,
CONSTITUTIONAL AMENDMENT, Limits ad
valorem taxes on real property to I % of value
except to pay indebtedness previously approved
by voters. Establishes 1975/76 assessed valuation
as base value of property for tax purposes" Limits
annual increases in value, Provides for reassess-
ment after saJe, transfer, or construction" Requires
~ vote of Legislature to enact any change in state
taxes designed to increase revenues. Prohibits im-
position by state of new ad valorem, sales, or
transaction taxes on reaJ property, Authorizes
specified local entities to impose special taxes
except ad valorem, sales and transaction taxes on
real property, FinanciaJ Impact: Would result in
the loss of local property tax revenues of $7 bil-
lion to $8 billion annually and a reduction in state
costs of about $700 million in 1978179 and $800
million annuaJly thereafter"
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Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 13 -
The Agency can neither predict whether or not
the Initiative will be approved by the voters nor
whether or not the validity of the initiative will, if
thereafter challenged, be upheld, in whole or in part,
by the courts. However, if approved by the voters
and upheld by the courts, the measure could have
a substantial adverse impact on the security of the
Bonds in that the present tax rate of the various
public entities which levy taxes in the Project area
would almost certainly be substantially reduced and
future increases in assessed valuation could be sub-
stantially limited, thereby reducing the amount of
Tax Revenues to be received by the Agency,
Pending Litigation
On August 22, 1977, a lawsuit (McNutt v, City
of Los Angeles) was filed in the Superior Court of
California for the County of Los Angeles against
fifteen named cities in Los Angeles County and their
redevelopment agencies and the Los Angeles County
Auditor-Controller, Being located in Orange County,
neither the City of Santa Ana nor the Community
Redevelopment Agency of the City of Santa Ana are
named in the lawsuit.
The complaint alleges that the provisions of the
Community Redevelopment Law authorizing the allo-
cation of that portion of the property taxes derived
from a redevelopment project area representing tax
increment funds is invalid under the Constitutions of
California and the United States" The complaint seeks
a declaration that the statutory basis for tax incre-
ment financing is unconstitutional and an injunction
preventing any payment of tax-increment funds to
defendant agencies,
The complaint does not set forth specific facts
involving each of the defendants. The Community
Rodevelopment Law has been upheld by the Cali-
fornia Supreme Court. However, as the case develops,
it may be that no California court has dealt with the
precise legal questions that may be involved, There-
fore, the outcome of this litigation and any resulting
effect upon the allocation of tax increment funds
derived from a redevelopment project area for the
payment of debt service on tax allocation bonds
outstanding at the time of the final decision are not
determinable at this time" However, to the extent that
any future decision in this case may limit or prohibit
the current method of allocation of such tax incre-
ment funds, this security for the bonds may be
adversely affected or substantially eliminated,
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Proof of Fobrua" J 21, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 14-
Creation of Funds and Accounts
The Resolution provides for the establishment of
funds and accounts to be held by the Fiscal Agent
for the administration and control of the proceeds
obtained from sale of the Bonds, any other funds
allocable to the Project, and from the pledged Tax
Revenues, Specific aspects of these funds and ac-
counts are described as follows.
The Redevelopment Fund-Moneys deposited in
the City of Sanla Ana Redevelopment Project Area
Redevelopment Fund from Bond proceeds and any
other sources shall be used for the purpose of aiding
in financing the Project. 'ÄIl moneys in excess of those
required to complete the Project may be transferred
from the Redevelopment Fund to the Special Fund,
or be held in the Redevelopment Fund to assist in
financing subsequenl phases of the Project, if any,
as determined by the Agency,
The Special Fund-Under the provisions of the
Resolution, the Agency authorizes and directs the
payment of Tax Revenues directly to the Fiscal Agent
for deposit in the City of Santa Ana Redevelopment
Projeci Area Special Fund,
So . long as any of the Bonds are outstanding,
moneys in the Special Fund shall be set aside in Ihe
folloWing special accounts and be used in the fol-
lowing order of priority:
(1) Interest Account. On or before the last
day of September 1978, and on the last days of
each March and September thereafter, the Fiscal
Agent shall set aside from the Special Fund in the
Interest Account an amount sufficient, together
With any funds then on hand, to pay the aggre-
gate inlerest on all of the oulstanding Bonds on
the next succeeding interest payment date. Any
funds so set aside shall be applied solely to the
payment of interest on Ihe Bonds when due (in-
cluding accrued interest on any Bonds purchased
or redeemed prior to maturity),
(2) Principal Account. On or before the last
day of Mat'ch 1979 and on the last day of each
March thereafter, the Fiscal Agenl shall set aside
from the Special Fund in the Principal Accounl
an amount sufficienl to pay the aggregate princi-
pal becoming due and payable on the outstand-
ing Bonds on the nexlprincipal payment dale,
All funds in the Principal Account shall be ap-
plied solely for the payment of principal of the
Bonds when due and payable,
(3) The Reserve Account, After making the
foregoing deposits, the Fiscal Agent shall set aside
in the Reserve Account an amount sufficient to
maintain the Minimum Reserve (as defined be-
low) in said Reserve Account.
Moneys in the Reserve Account (initially equal
to the maximum annual debt service requirements
on the Bonds) shall be withdrawn and used by
the Fiscal Agenl solely for the purpose of paying
the interest on and principal of the Bonds, or for
the purpose of retiring all of the Bonds al the time
outstanding,
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Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
At all times, a Minimum Reserve (an amount
equal to the maximum annual debt service due on
the Bonds) shall be maintained in the Reserve
Account. Should the amount in the Reserve Ac-
count be less than the required Minimum Reserve,
the Fiscal Agent shall restore the balance by
transfer of the first available moneys in the Special
Fund.
Surplus. The Fiscal Agent on or before Decem-
ber 31 of each year, commencing December 31,
1978, shall ascertain the amount of Tax Revenues
received or to be received during the then current
fiscal year by the Agency based upon the most
recent assessed valuation of taxable property in the
Project (as reported by the Auditor-Controller of
Orange County), and shall estimate that portion of
said Tax Revenues which will be in excess of 125%
of the amount of principal and interest which is then
due or to become due on the next April I and Octo-
ber I on the Bonds (and any additional bonds) then
outstanding, and shall promptly notify the Agency
of the excess portion so determined, The Agency
may, by written notice to the Fiscal Agent within 30
days after receipt of such notification, direct that an
amount not exceeding said excess portion be paid
to the Agency, which amount may: (a) be used
for the purchase and/or call and redemption of
outstanding Bonds; or (b) be paid to the Agency,
which amount may be used by the Agency for any
purpose authorized in the Law, provided thai with
respect to subparagraph (b) above the following con-
ditions have been met: (i) The deposits required by
the foregoing paragraphs (I), (2) and (3) have
been made so that the reqnired amounts are in the
above mentioned accounts and fund as shown by a
notification of the Fiscal Agent; (ii) the Agency shall
have filed with the Fiscal Agent a certification to the
effect that the Agency has actually incurred an obli-
gation on behalf of the Project (other than the
obligation created under the Resolution), and has
no later than the next preceding October 1, filed such
supporting documentation attesting thereto as the
Auditor-Controller of Orange County shall deem
necessary; and (iii) tbe Fiscal Agenl shall have cer-
tified that the Agency is not in default under the
terms of the Resolution or the Bonds,
Upon receipt of the Tax Revenues, the Fiscal
Agent shall make such payment or payments, as
directed by the Agency,
The annual amounts retained in the Special Fund
shall be accumulated and applied by the Fiscal
Agent to the purchase or call of outstanding Bonds
in accordance with the terms of the Resolution,
unless needed to make any deposits required to the
Interest, Principal and Reserve Accounts, not other-
wise provided for.
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Proof 01 Fobrua/y 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 16-
Issuance of Additional Bonds
The Agency may, by supplemental resolution,
issue Additional Bonds to pay the costs of the Proj-
ect (including subsequent phases of the Project, if
any) provided:
a" The Agency must be in compliance with all
covenants set forth in the Resolution,
b, The Reserve Account must be increased, if
necessary, by an amount sufficient to maintain a
balance in the Reserve Account equal to maxi-
mum annual debt service on the Bonds and any
Additional Bonds,
c, The Additional Bonds must mature on April
I, and interest thereon is to be payable October I
and April I of each year, except the first year's
interest may be payable at the end of that year,
d" Tax Revenues produced or to be produced
from the most recent equalized assessed valuation
of taxable property located in the Project (in-
cluding an allowance for estimated Tax Revenues
to be derived from construction in progress to be
completed within three years of the date of such
Additional Bonds) are at least equal to L25 times
the assumed average annual debt service on all
series of the outstanding Bonds and the Additional
Bonds proposed to be issued, as evidenced by a
report of an independent financial consultant em-
ployed by the Agency (Ihe computation of as-
sumed average annual debt service is to be made
on the basis of approximately equal annual pay-
ments of principal plus interest over the entire
term of the Bonds and the Additional Bonds pro-
posed to be issued)" For purposes of this compu-
tation, taxable property shall include assessed val-
uations of property exempt from local property
taxation by reason of the homeowners' and
business inventories exemptions, and any other
exemptions subsequently enacted by the State leg-
islature or mandated by judicial decision to the
extent that in-lieu payments for such exemptions
are made to the Agency"
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Proof of Fobruary 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 17-
e. The Agency must have received all required
approvals of any governmental authority having
jurisdiction over the Additional Bonds or their
terms.
However, the Agency does not, at the present
time, anticipate issuing any Additional Bonds for the
City of Santa Ana Redevelopment Project area within
the next year,
Refunding Bonds
Existing State Law provides that refunding bonds
secured by Tax Revenues derived from the City of
Santa Ana Redevelopment Project Area may be
issued for the purpose of refunding all or any series
of the Bonds then outstanding,
Certain Covenants of the Agency
Certain covenanls of the Agency under the Reso-
lution are summarized in the following paragraphs,
I. The Agency will punctually pay, or cause to
be paid, the principal of and inlerest on the Bonds
as they become due.
2. The Agency will not encumber, pledge, or
place any charge or lien upon any of the Tax Reve-
nues superior 10 or on a parity with the pledge and
lien created in the Resolution except as provided in
the Resolulion.
3. The Agency will deposit and use the Bond
proceeds as provided in the Resolution, and will
manage and operate all properties owned by the
Agency and comprising any part of the Projeci in a
sound and businesslike manner and will keep such
properties insured at all times in conformity with
sound business practice,
4. The Agency will pay and discharge, or cause
to be paid and discharged, any governmental charges
imposed, and all lawful claims for labor, materials
or supplies which, if unpaid, might become a lien
or charge which might impair the security of the
Bonds, The Agency does not, however, covenant to
make any such payment so long as the Agency in
good faith shall contest the validity of said claims,
5. The Agency will keep proper books of ac-
counts and will cause to be prepared within 120 days
after the close of each fiscal year complete financial
statements, in reasonable detail, on the Project, the
Tax Revenues and other funds and accounts as pro-
vided in the Resolution, all as certified by an inde-
pendent certified public accountant. The Agency will
furnish a copy of such statements to any Bondholder
upon written request. Said books and accounts will
be maintained separate and apart from those of the
City of Santa Ana,
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Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 18-
6. The Agency will carry out to completion with
all practical dispatch the Project, and the Project
will be accomplished am! completed in a sound and
economical manner and in conformity with the
Redevelopment Plan, and the Community Redevel-
opment Law, The Redevelopment Plan may be
amended as provided in the Law, but no such amend-
ment may be made which would substantially impaír
the security of the Bonds or the rights of Ihe Bond-
holders,
7, If all or any part of the Project owned by the
Agency shall be taken by eminent domain proceed-
ings, the net proceeds realized by the Agency there-
from shall be deposited with the Fiscal Agent in the
Special Fund for the purpose of paying principal
of and interest on the Bonds subject to the terms,
conditions and requirements contained in the Reso-
lution,
8, Whenever any property in the Project has
been redeveloped and thereafter is leased by the
Agency to any person or persons (other than the
City of Santa Ana) or whenever the Agency leases
real property in the Project to any person or persons
(other than the City of Santa Ana) for redevelop-
ment, the property shall be assessed and taxed in
the same manner as privately owned property; as
reqnired by Section 33673 of the Health and Safety
Code of the State of California"
9. The Agency will not dispose of more than
10% of the land area in the Project (other than
property shown by the Redevelopment Plan in effect
as of the date of the Resolution as planned for public
use, or for such other limited public uses as specified
in the Resolution) to public bodies or other persons
or entities whose property is tax exempt if as a result
of such disposition the security of the Bonds or the
rights of the Bondholders will be substantially
impaired,
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Proof 01 Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 19-
10, The Agency will not invest or cause to be
invested proceeds of the Bonds in a manner which
would resull in the Bonds becoming taxable arbitrage
bonds within the meaning of Section 103 (c) of the
Internal Revenue Code, as amended, and applicable
regulations adopted thereunder.
Deposit and Investment of
Moneys In Funds
Subject to the provisions of the Resolution all
moneys held by the Fiscal Agent in the Special Fund
or any account thereof and in the Redevelopment
Fund, except such moneys which are at the time
invested, shall be held in time or demand deposits
in any bank or trust company authorized to accept
deposits or public funds (including the banking de-
partment of the Fiscal Agent) and shall be secured
at all times by bonds or other obligations which are
authorized by law as security for public deposits, of
a markel value at least equal to the amount required
by law.
Moneys in the Redevelopment Fund and the Spe-
cial Fund may, and upon written request of the
Agency shall, be invested by the Fiscal Agent in cer-
tain Federal securities as described in the Resolu-
tion,
Obligations purchased as an investmenl of moneys
in any of said funds or accounts thereof shall be
deemed at all times to be a part of such fund or ac-
count and any gain realized from such investment
shall be credited to such fund or account and any
loss resulting from any such authorized investment
shall be charged to such fund or account without
liability to the Agency or the members and officers
thereof or to the Fiscal Agent. Investment income
from moneys m the Reserve Account may, at the re-
quest of the Agency, be transferred to the Redevel-
opment Fund, and investment income from moneys
in the Redevelopment Fund may be so transferred
to the Reserve Account.
For the purpose of determining at any given time
the balance in such fund or account, any investmenl
constituting a part of such fund or account shall be
valued at the estimated market value of such invest-
ment.
Events of Default-Remedies
The Resolution declares each of the following
events to be an event of defaull:
(I) Failure to pay the principal on the Bonds
when due and payable;
(2) Failure to pay interest on the Bonds when
due and payable;
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Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 20-
(3) Default by the Agency in the performance
or observance of any of the covenants, agree-
ments or conditions in the Bonds or in the Reso-
lution if such default continues for sixty (60)
days after written notice thereof has been given
to the Agency by the Fiscal Agent or by the
holders of not less than 25% in aggregate prin-
cipal amount of the Bonds then outstanding;
(4) The assumption by any court of competent
jurisdiction, under the provisions of any law for
the relief or aid of debtors, of custody or control
of the Agen~ or the whole or any substantial part
of its property if such custody or control shall
not be terminated or stayed within sixty (60)
days from the date of assumption of such custody
or controL
In the case of an event of default, the Fiscal Agent
may, and upon written request of the holders of not
less than a majority in aggregate principal amount
of the Bonds at the time outstanding must, declare
the principal of all the Bonds then outstanding and
the interest thereon to be due and payable imme-
diately.
In addition, in the case of an event of default,
the Fiscal Agent may, and upon written request of
the holders of not less than a majority in principal
amount of the Bonds then outstanding must, pro-
ceed to protect or enforce the rights of the Bond-
holders by appropriate judicial proceedings or pro-
ceedings,
In the event that the Fiscal Agent, upon the occur-
rence of an event of default, shall have taken some
action, it shall have the full power, in the exercise
of its discretion, to continue, discontinue, withdraw,
compromise, settle or otherwise dispose of such ac-
tion unless, if the event of default is still in existence,
and if at the time there has been filed with them the
written request signed by the holders of at least a
majority in principal amount of the Bonds outstand-
ing opposing such continuance, discontinuance, with-
drawal, settlement or other disposal of such litiga-
tion, then the Fiscal Agent may not discontinue,
withdraw, compromise, settle or otherwise dispose of
any litigation pending at law or in equity,
The Resolution provides that no remedy conferred
therein upon the Fiscal Agent or the Bondholders
shall be exclusive of any other remedy, and that each
and every remedy shall be cumulative and shall be
in addition to every other remedy given under the
Resolution or thereafter conferred upon the Fiscal
Agent or Bondholders, However, the effect of any
such remedies may be limited by the laws of the
State of California affecting such remedies and may
also be limited by laws governing bankruptcy, insol-
vency or other matters affecting enforcement of
creditors' rights,
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Proof of Fobrua" 16, 1870
SANTA ANA~7!)~
!3owne of San Francisco, Inc" 981-7882
GALLEY 21~
Amendment of the Resolution
The Resolution may be modified or amended only
with the consent of the holders of 60% of all Bonds
then outstanding (exclusive of Bonds owned by the
Agency or the city) unless the modification or
amendment is for the purpose of curing ambiguities
or defects in the Resolution; or grants or confers
upon the Bondholders additional rights, remedies,
powers, authority or security, or to add additional
covenants or to provide for the issuance of additional
bonds in conformity with the Resolution, in which
case no Bondholder's consent is required. No modi-
fication or amendment of the Resolution shall, with-
out the express consent of the Bondholder, reduce
the principal amount of any Bond, reduce the inler-
est rate payable thereon, advance the earliest re-
demption date, reduce the premium payable upon
redemption thereof, extend the maturity of the Bonds
or the time for paying interest thereon, change the
monetary medium in which principal and interest is
payable or reduce the percentage of consent required
for amendment or modification of the Resolution,
Closing Documents
Each proposal will be understood to be condi-
tioned upon the Agency furnishing to the Purchaser,
without charge, concurrently with payment for and
delivery of the Bonds, the following closing docu-
ments, each dated the date of delivery:
(a) Legal opinion-The opinion of O'Melveny
& Myers of Los Angeles, California, Bond Coun-
sel, approving the validity of the Bonds and stat-
ing that interest on the Bonds is exempt from
income taxes of the United States of America
under present federal income tax laws, and that
such interest is also exempt from personal income
taxes of the State of California under present state
income tax laws,
A copy of the opinion of O'Melveny & Myers,
certified by an officer of the Agency by facsimile
signature, will be printed on the back of each
Bond, No charge will be made to the Purchaser
for such printing or certification,
(b) Non-Arbitrage Certi{icate-A certificate of
Ihe Treasurer of the Agency that on Ihe basis of
the facts, estimales and circumstances in exisl-
ence on the date of issue, it is not expected that
the proceeds of the Bonds will be used in a man-
ner Ihat would cause the Bonds to be arbitrage
bonds.
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'I
Proof of February 16, 1918
SANTA ANA-7923
Bowne of San Francisco, Inc" 981.7882
(c) No-Litigation Certifk:ate-A certificate
signed by an officer of the Agency that there is
no litigation threatened or pending affecting the
validity of the Bonds,
(d) Signature Certificate-A certificate of the
officers and representatives of the Agency, show-
ing that they have signed the Bonds, whether by
facsimile or manual signature, and that they were
respectively duly authorized to execute the same.
(e) Receipt-The receipt of the Agency show-
ing that the purchase price of the Bonds, including
interest accrued to the date of delivery thereof,
has been received by the Agency,
(f) Certifk:ate Re Official Statement-A cer-
tificate of an officer of the Agency, acting in his
official and not his personal capacity, to the effect
that at the time of sale of the Bonds and at all
times subsequent thereto up to and including the
time of delivery of the Bonds, the official state-
ment did not contain any untrue statement of a
material fact or omit to state a material fact neces-
sary to make the statements therein, in light of
the circumstances under which they were made,
not misleading,
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75
Proof of Fobruary 16, 107'
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 23---
COMMUNITY
REDEVELOPMENT
AGENCY OF THE
CITY OF SANTA ANA
The Redevelopment Agency
In 1973, the Santa Ana City Council took action
that formally recognized the need for redevelopment
of portions of the city, The Agency was created
under the provisions of the Community Redevelop-
ment Law by Ordinance No, 1149, approved and
adopted by the City Council on January 2, 1973,
The City Council declared itself to be Ihe Agency.
The Agency appoints an Executive Director to im-
plement Agency policies and administer redevelop-
ment activilies,
There is also a Community Redevelopment Com-
mission appointed by the City Council to make
recommendations to the Agency and to assist in
implementation of particular development activities,
In addition, the Agency has created a Project Area
Committee which also acts in an advisory capacity
to the Agency,
The Agency is organized as a city department and
the nine full-time Agency employees are city em-
ployees, As such, these employees are under the
State retirement system,
City staff provides technical services connected
with the redevelopment projects, including fiscal
services, engineering, planning, legal assistance and
other functions necessary for project implemenlation,
Powers
All powers of the Agency are vested in its seven
members. Under the Community Redevelopment
Law, the Agency is a separate public body and
exercises governmental functions in executing duly
adopted redevelopment projects. As such, the
Agency has the authority to acquire, develop, ad-
minister, and sell or lease property, including the
right of eminent domain, Ihe right to accept finan-
cial assistance from any source, and to issue bonds,
noles or other evidences of indebtedness, and expend
their proceeds, The Agency itself does not have the
power to levy taxes,
The Agency may also clear buildings or other
improvements, develop as a building site any real
property owned or acquired, and in connection with
such development, may provide for the installation
of streets, utilities, sidewalks, and other necessary
public improvements" With the exception of publicly
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.
Proof of Februa" 18, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 24-
owned structures and facilities benefiting the Project
and low and moderate income housing, the Agency
itself cannot construct any buildings contemplated
under the Redevelopment Plan but must convey
property in the Project by sale or lease for private
redevelopment in strict conformity with the Plan.
The Agency may specify a period of time within
which such development must begin, If the Agency
constructs low income housing, it cannot operate it
beyond a reasonable period of time needed to sell or
lease the housing development.
Tax Allocation Financing
The Community Redevelopment Law authorizes
a method of financing redevelopment projects based
upon a prescribed allocation of property taxes col-
lected within a project. The assessed valuation of
taxable property within the project is, in effect,
frozen at the level set forth in the assessment rolls
last equalized prior to the effeclive date of the Ordi-
nance adopting the redevelopment plan or any
amendments thereto and all overlapping taxing bodies
continue to receive the taxes derived by the levy of
the current tax rate against the assessed valuation
of the project up to an amount equivalent to Ihis
frozen base, All property taxes collected each year
after the adoption of the redevelopment plan or any
amendments thereto upon any increase in assessed
valuation above the established base levels may be
credited to a redevelopment agency and pledged to
the repayment of any indebtedness incurred in the
development of the project, The county also dis-
tributes to the Agency the incremental delinquent
taxes in the same manner when they are collected,
After all illdebtedness of the Agency for a given
project has been repaid, the total taxes produced
by the project Ihereafter accrue to the respective
taxing bodies in the usual manner. Thus, the tax
allocation procedure not only permits each taxing
agency to levy and coIlecl taxes on the level of
assessed valuation existing in a project prior to
redevelopment, but also provides that increases in
assessed valuation occurring as a result of such rede-
velopment may be used as a basis for the repayment
of costs or indebtedness incurred in behalf of the
project,
During the course of redevelopment, assessed
valuations may temporarily be less than the frozen
base, as a redevelopment agency acquires land and
improvemenls and the properties are removed from
the tax rolls by virtue of the transfer to public own-
ership, or as other land development activities result
in a short-term reduction in assessed valuation, While
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711
Proof 01 Fobrua¡y 21,1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEIT 25-
assessed valuations are less than the frozen base,
overlapping taxing entities receive only the taxes
derived from the current tax rate applied against the
actual assessed valuation. As an agency disposes of
land to private ownership for purposes of redevelop-
ment, it is returned to Ihe tax rolls with an assessed
valuation that usually reflects the higher level of
planned use prescribed in the redevelopment plan,
As previously stated, the Communily Redevelop-
ment Law and California State Constitution author-
ize the incurrence of indebtedness by a redevelop-
ment agency, and the payment of debt service costs
is permitted from anyone or a combination of stated
sources. The 1978 Tax Allocation Bonds now being
offered for sale are secured by a pledge of tax re-
ceipts produced from the incremental assessed valua-
tion of the Project (previously defined as the Tax
Revenues) which are to be paid directly into the
Agency's Special Fund established for the benefit of
the Bondholders, and held by the Fiscal Agent. As
discussed previously, Tax Revenues received each
year in excess of 125% of aggregate annual interesl
and principal requirements on the Bonds (and for
other required payments and dèposits, if any) may
be paid 10 the Agency by the Fiscal Agent. See sub-
sections entitled "Property Tax Rate Limitations
and Exemptions;" "Proposed Property Tax Limi-
tation, Constitutional Amendment;" and "Pending
Litigation" on pages", for a discussion of possible
limils on the receipt of Tax Revenues by the Agency,
Agency Financial Statements
The Communily Redevelopment Agency of the
City of Santa Ana is a public entity separale and
apart from the City of Santa Ana and is staffed by
employees of the city. AU accounling records of the
Agency operations are maintained by Ihe city's Fi-
nance Department separately from the accounting
records of the city,
Agency financial statements for the fiscal years
1975/76 and 1976/77 were audited by ,Price Water-
house & Co" independent certified public account-
ants, Separate audits will be prepared for subsequent
fisca~ years, and as required by the Resolution, will
be available to any Bondholder upon request within
120 days following the close of each fiscal year, The
1976/77 audit of the Agency is reproduced in its
entirety in Appendix A beginning on page A-I of
this official statement.
Other Agency Debt Obligations
In addition to the Bonds currently offered for sale,
the Agency and the city entered into an agreement
providing for reimbursement of city funds advanced
to the Agency or used to finance improvements
within the Projecl"
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'I
Proal of Fobrua" 18, 1978
SANTA ANA-7923
Bowne of San Franc!soo, Inc" 981-7882
GALLEY 26-
The agreement, dated March 12, 1973, provides
for repayment of funds advanced by the city for
general administrative costs of the Agency. The
Agency also has certain amounts due to the city to
repay advances to finance certain land acquisitions
and construction of public improvements, principally
a portion of Civic Center Drive, The total amount
due the city as of June 30, 1977 was $2,916,854, as
reported in the Agency's 1976/77 Report and Finan-
cial Statements,
THE CITY OF
SA NT A ANA
REDEVELOPMENT
PROJECT AREA
Background
The Redevelopment Plan (the "Plan") for the
City of Santa Ana Redevelopment Project Area
("the Project") was adopted by the City Council
pursuant to Ordinance No. 1173 on July 2, 1973,
The Plan was amended to add the north retail
center to the Project by Ordinance No, 1258 on
June 2, 1975,
Conditions within the Project prior to the adoption
of the Redevelopment Plan and amendment thereto
met the statutory tests for blight, with findings of
substandard public facilities, commercial and resi-
dential structures, lack of adequate open space, poor
access, traffic circulation and parking and other con-
ditions detrimental to the public safety and welfare.
However, since the Project encompasses a portion
of the civic center complex, central business district
and northern retail center, the area is believed to
have potential for strengthening and revitalizing the
city's economic base and improving environmental
conditions within the area,
Project Description
The Project consists of approxitnately 694 acres
in the central and northern parts of the city, It
includes three major sub-areas as described briefly
below,
The first sub-area is the downtown business core,
approximately 89 blocks, bounded by Washington
and Fourth Streets on the north, Bush and Mortimer
Streets on the east, First Street on the south and
Olive, Flower and Baker Streets on the west. This
area also contains the civic center complex,
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7S
Proof of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
CALLEY 27-
The second sub-area is the 40-block Broadway
to Bush Street corridor that links the downtown and
northern retail areas,
The third sub-area includes the northern retail
area center, about 190 acres, bounded by the north
city boundary, Santiago Street on the east, Santiago
Creek on the south and the Santa Ana River and
Santa Ana Freeway on the west,
Overall, the Project area consists of a mixture of
older residential and commercial buildings, inter-
spersed with new commercial buildings, and the
Civic Center, which includes major federal, state,
county and city office complexes, The amended Plan
provides for utilization of the Project area approxi-
mately as follows:
Land Use
Acres
Commercial retail "'"""'""""""""""'"
Streets ,"..".."..".."..""....""....,..,
Governmental","""",..",..".."..,",
Residential".."""","""",",",,,",""
Office","""""""",",",""""",,,, ,
Total",""""",""",",""," "
208
194
132
97
63
694
The Plan calls for acquisition and resale of land
by the Agency, relocation where necessary and con-
struction of public improvements, Public improve-
ments consist principally of street improvements,
water and sewer line relocation where needed, land-
scaping, lighting and related improvements in the
Project area, However, private developers will be
encouraged to acquire sites for redevelopment with-
out Agency assistance, Under current Agency policy,
only in instances where property acquisition cannot
be readily accomplished by private developers under
reasonable terms and conditions will the Agency
acquire sites for resale.
All real property in the Project area is subject
to the conlrols and restrictions of the Plan, The
Plan itself is in accordance with standards incor-
porated in the City General Plan, The Plan requires
that all new construction shall meet or exceed the
standards sel forth in the city's building, electrical,
plumbing, mechanical and other applicable construc-
tion codes, The Plan further provides that no new
improvements shall be constructed and that no exist-
ing improvements shall be substantially modified,
altered, repaired, or rehabilitated except in accord-
ance with site plans submitted and approved by the
City Planning Commission,
The Plan allows for commercial, office, residential,
governmental and public uses within the Project area
but specifies the particular land use area in which
each such use is permitted, The Agency may permit
an existing but nonconforming use to remain so long
as the existing building is in good condition and is
generally compatible with other surrounding develop-
ments and uses,
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'I
Proof 01 Fobrua" 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 28-
The heights of buildings, architectural controls,
and other developments and design controls neces-
sary for proper development within the Project area
are established by the Plan and the City Zoning
Ordinance,
Project Development and Status
Since adoption of the Plan in 1973, a number of
major improvements have already taken place in the
Project area, The Project's assessed valuation has
increased $13,239,616 over the base year valuations
due to increased assessment of existing property and
from new development completed by private devel-
opers since the adoption of the Plan and the amend-
ment thereto, The base year valuation for the original
Project area is 1972/73; the base year valuation for
the amended area is 1974/75, The combined valua-
tions for the entire Project as amended first appeared
on the Orange County Assessor's rolls in 1976/77.
The following paragraphs summarize the principal
developments that have occurred within the Project
since adoption of the Plan,
The Pacific Telephone Company in 1977 com-
pleted remodeling and construction of additions to its
central office exchange facility at Fifth and Bush
Streets in the downtown area, These improve-
ments have an estimated market value in excess of
$7,000,000"
Santa Ana Towers, 200 units of housing for
senior citizens supported by a newly constructed sen-
ior citizen center, was completed in 1977, The de-
veloper, National Housing Consultants, Inc" received
a Section 23 commitment from the U, S" Department
of Housing and Urban Development (HUD), It has
a building permit value in excess of $3,000,000,
This development, along with Rosswood Villa, an-
other 200 units of senior citizen housing cur-
rently under construction, will provide an estimated
$1,572,252 in Project incremental assessed valua-
tion by 1979/80,
A nine-story, $24 million, privately owned Federal
building was completed in 1975 as part of the overall
Civic Center complex" It is leased by the owners
of the Federal Government and appears on the
Project unsecured property tax roll as a leasehold
interest.
A branch of Home Federal Savings of San Diego
is nearing completion at Seventeenth and Main
Streets. Building permit valuation is $400,000. Ad-
jacent to this development is a recently completed
Norm's restaurant.
Santa Ana Townhouses, a condominium project,
is currently in final plan check with the site being
graded at the location of Broadway and Santa Clara
Avenue, The 63-unit project has a bIDding permit
value of $3 million and is scheduled for completion
in December 1978.
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'I
Proot of Fobrua" 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 29--
In addition, there have occurred a number of
smaller developments, including new office buildings
and retail stores and rehabilitation of existing struc-
tures. Major rehabilitation of an entire city block in
the central business district was completed in 1977
by First American Title Company. Remodeling costs
exceeded $2,000,000,
These developments provide the principal portion
of the 1977/78 incremental assessed valuation of
$13,239,616 in the Project.
Table I below presents a history of Project as-
sessed valuation since adoption of the Plan and a
summary of the 1977/78 incremental assessed valu-
ation by assessment roll and class of property.
Table 1
CITY OF SANTA ANA
REDEVELOPMENT PROJECT AREA
History of Project Assessed Valuations-
1972/73 to 1977/78
Fiscal
Year
Assessed Valuation<D
BaseYear@ CurrenlYear
Increase
1974/75 .. $21,498,890 $28,605,115 $ 7,106,225
1975/76 . , 21.342,823 26,434,465 5,091,642
1976/77 , , 40,988,134 48.000,580 7,012,446
1977/78 ,. 40,930,684 54,170,300 13,239,616
1972/73-1977/78 Assessed Valuation
by Assessment Roll
Roll
1972/73
(BaseYear)@
Increase
1977/78
Secured .. $28,661,828 $32,384,730 $ 3,722,902
Utility .. .. 5,968,780 8,755,370 2,786,590
Unsecured, 6,300,076 13,030,200 6,730,124
Total $40,930,684 $54,170,300 $13,239,616
1972/73-1977/78 AssBssed Valuation
by Class of Property
Property 1972/73
Class (BaseYear)@ 1977/78 Increase
Land.. .., $11,762,510 $13,382,060 $ 1,619,550
Improve-
ments "" 21,632,100 32,303,010 10,670,910
Personal
Property , 5,505,331 6,880,610 1,375,279
Business In-
venlory " 2,774,120 3,625,960 851,840
Less: ex-
emptions , (743,377) (2,021,340) (1,277,963)
Total .. $40,930,684 $54,170,300 $13,239,616
<D All rolls"
@ 1972/73 Base year for original area: 1975/76 Base
year for amondod area" Values first combi"ed to include
entire Project aroa in 1976/77"
Source: Ora"ge County Auditor-Controller"
11
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6
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13
14
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16
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19
20
21
I~:
24
25
28
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
.44
45
46
47
48
49
50
51
52
63
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57
58
59
60
61
62
63
864
65
86
67
68
" 68
70
71
72
73
74
Proof of February 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 30-
In addition to the above, there are a number of
developments within the Projeci area which have
been recently completed or are in progress, These are
outlined in Table 2 on page, , and further described
in the following subsection entilled "Project Expendi-
ture Program," commencing on page, .. Table 2
presenls a summary of projected incremental assessed
valuation estimated to be generated from these de-
velopments,
Table 2
CITY OF SANTA ANA REDEVELOPMENT PROJECT AREA
Project DevBlopment SchBdule and Estimated AsS8SBed Valuations
Developer
Estimated
Completion
Dale
Aclual or
Eslimaled
Incremenlal
Eslimaled Assessed
Full Value Valuatlon(j)
$52,958,464 $13,239,616<1)
$52,958,464 $13,239,616
$ 3,028,160@ 757,040
53,656@ 13,414
52,320@ 13,080
300.000@ 75,000
125,OOO@ 31,250
4oo,Ooo@ 100,000
$ 3,959,136 989,784
225,104@ 56,276
3,OOO,ooO@ 750,000
3,260,848@ 815,212
$ 6,485,952 $ 1,621,488
$ 5,000,000@ $ 1,250,000
$ 5,000,000 $ 1,250,000
$68,403,552 $17,100,888
On 1977/78 Tax Rolls ""","""""""",,,.,,.,
1977/78 Sublolal """""""""""",,",",,,,
On 1978/79 Tax Rolls:
Sanla Ana Towers """""",",""""","",,
Law office building """"""""""""",,
Relall slore ....""".."........",............
Orange Counly Employees Credit Union, , , , " " " " , ,
Goodyear Tire store """"",,,,",,"""""'"
Home Federal Savings of San Diego branch, , , , , ,
1978/79 Sublotal """,""""","""",,,
On 1979/80 Tax Rolls:
Spurgeon apartments ..,...."""...."....,....,
Santa Ana Townhouses """"""""""",,,,,
Rosswood Villa......" .. .. .. .. .. " .. .. .. .. .. ..
1979/80 Subtotal"""""""","""""",,,,,
On 1980/81 Tax Rolls:
Santa Ana InlownHousing """"""'"""""',"
1980/81Subtolal"","""""""""",,,,,
GrandTotal"""","",""""""",
Compleled
Completed
Completed
Completed
2/78
2/78
6/78
12/78
11/78
1/80
o(j) AI assessment ratio of 25% of full value" Does not retlect partial assessme"~ if any. of conslruction in progress"
@ As reported by Orange Cou"ty Audilor-Controller,
@ Building permit value as reported by City of Santa Ana" Excludes site, fixtures, personal property, and inventory
valuations, .
@ Developer estimate of apartment values to be conslructed pursuanl to Disposition and Developmenl Agreement,
:1
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8
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
123
24
25
28
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
.44
45
48
47
48
49
50
51
52
53
54
55
86
57
58
59
60
61
62
63
.=
66
67
68
69
70
71
72
73
74
7"
Prool of Fobrua'J 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 3]-
Project Expenditure Program
Net proceeds from the sale of the 1978 Bonds
currently offered will be used to acquire and clear
land for resale for private development, construct
public improvements, project administration, repay
city advances to the Project and pay relocation costs.
Table 3 below summarizes Agency estimates of
expenditures of net 1978 Bond proceeds,
Tabfe 3
CITY OF SANTA ANA
RED~VELOPMENT PROJECT AREA
Estimated Bond Expenditures
Property acquisilion for redevelopmenl
Reloèalion ......................
Site clearance """"""""'"
Public improvements """""'"
Projeci administration and repayment
of cily advances.. .. .. .. .. .. .. ,
1978 Bond proceeds (nel) "",'.
$ 6,252,150
710,000
322,500
3,077,350
1.200,000
$ll,562,OOO
The following paragraphs outline the current de-
velopmenl program in the Projecl, The Agency antici-
pates using the 1978 Bond proceeds (as summarized
in Table 3) in connection wilh the development pro-
gram and any fulure development that may occur
in the Project.
Santa Ana Plaza. A 75,000 square foot office
commercial complex to be developed by the Fore-
strong Development Corporation of San Francisco,
this development, with an eslimated market value of
$5 million, will be located in the civic cenler area
between Santa Ana Boulevard, Birch and Fifth
Streets. Construction is anticipaled to begin in 1979
wilh completion by mid-198O. Acqnisition of prop-
erty for this project has already begun by the Agency
using exisling lax incremenl funds.
Sunset. A commercial office complex by M,
David Paul Inc, is located at Civic Cenler Drive and
Broadway, It will comprise a 45,000 square-fool
commercial building and an 85,000 square-foot,
seven-story office building, The commercial build-
ing, valued at an estimated $2,25 million, is anlici-
pated to be compleled by mid-198O. At thai time,
construction would begin on the office bnilding,
estimated at $4.25 million, and be compleled by
mid-1982.
Second Street Revival. Through Bissell and Au-
gust, consulting architects and planners, the Agency
has analyzed the feasibility of rehabilitation for a
study area between Fourth and Second Streets, Van
Ness Avenue to Main Street in the downtown Project
area, This project concentrates on the Second Street
area between Broadway and Sycamore Street, First
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48
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63
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58
80
61
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63
64
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66
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68
68
70
71
72
73
74
I
Proof of Februa" 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 32-
and Third Streets, Rehabilitation of the Second
Street area combines public improvements financed
by the Agency with private investment already un-
dertaken, such as the restoration of the Santora
Building, The improvements financed by the Agency
will include paving of sidewalks and streets, gutters,
street trees, street lighlS, and benches, These improve-
ments will be directed toward implementing an over-
all theme for the area, Funds of $16,000 have been
set aside for inslallation of planter boxes along Fourth
Street, This project includes the acquisition of the
"Mission" building, located at Sycamore and Second
Streets, and the relocation of its tenants,
The Agency has already acquired and demolished
one building on this block wilh the land to be con-
verted into private parking, The owners of the major
structure on the block, the Santora Building, have
begun major renovation of this architecturally noted
1920 structure for its use as an office and specialty
store complex, The developer/owner of a building
occupying one entire city block to the south of the
Santora Building is formulating restoration plans and
has lease commitments from several specialty shops
and restaurants. This development is currently in
progress and is anlicipated to be completed by mid-
1979,
Santa Ana [mown Housing, To attract additional
people into Ihe downtown area, the Agency has
embarked upon a multi-phased housing program,
Already completed are 200 units of senior citizen
housing (Santa Ana Towers), Santa Ana Intown
Housing consists of another 200 unils of senior citi-
zen housing currently under construction (Rosswood
Villa), An additional 300 units will be constructed
in two phases under an executed Disposition and
Development Agreement belween the Agency and
Shapell Government Housing/Goldrich & Kest Asso-
ciation. The site is presently being cleared and con-
struction of Phase One (150 units) is scheduled
for completion in January 1980, This project is cur-
rently being partially funded by a combination of
city community development funds and tax incre-
ment revenue on hand. The Agency will acquire
land for resale to the developer arid construct cer-
tain street improvements"
FaShion Square. Fashion Square is located in
the northern portion of the Projeci at the inlersection
of three major freeways (Santa Ana, Orange and
Garden Grove). The center was buill in the 1950's
with one major departmenl store, Bullocks, plus
smaller retail stores, To strengthen Santa Ana's
economic base and to retain Ward's Department
Store within the city limits, the Agency has entered
into a development program with the owners of
Fashion Square, The expansion program for Fash-
ion Square consists of three phases, as summarized
below,
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68
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7S
I
'"
Proof of Fobrua:y 21, 1978
SANTA ANA-7923
Bowne of San Francisco, IDc" 981-7882
GALLEY 33-
Phase I-Construction of a 1,400-space parking
structure, This is currently under construction,
financed by a Federal grant. The Agency will utilize
Bond proceeds to finance needed peripheral street
improvements,
Phase II-Private development and construction
of one additional department store and additional
specialty shops,
Phase III-Private development of a third de-
partment store,
The Agency is currently negotiating an Owner
Participation Agreement with the present owner of
the existing Fashion Square shopping center to effect
Phases II-III,
Bond proceeds will be used to finance land acqui-
sition and construction of various public improve-
ments, The three phases would result in construction
of a'137,500 square-foot Ward's department store,
a 135,000 square-foot department store (tenant to be
named), 114,000 additional square feet of specialty
shops, a 16,000 square-foot office and restaurant
complex and the aforementioned 1,40O-space park-
ing facility, Private new investment in the center will
be an estimated $25.4 million, which includes con-
slruction, lease acquisition and equity capital.
OCTD Park and Ride Facility, The Orange
County Transit District (OCTO) has budgeted $4.3
million to finance construction in 1980 of a 700-
space park and ride facility being built in conjunction
with a Multi-Modal Transportation Terminal to be
located adjacent to the civic center and in the center
of the older downtown, The $9,2 million Multi-
Modal Terminal itself will serve inter- and intrastate
Lus carriers, in addition to the Orange County
Transit District routes, A multi-phased project, this
center is planned to become the hub of a high
speed transil syslem between Los Angeles and Orange
County. The first portion of the right of way to de-
velop this high speed system is currently being ac-
qnired by OCTD and will link Santa Ana with the
City of Stanlon, Adjacent to the terminal, the city,
OCTD and the Agency are jointly developing the
park' and ride facility localed between Fifth Street
and Santa Ana Boulevard, Broadway and Birch
Street" OCTD will finance construction costs esti-
mated at $4.3 million dollars, with the Agency
making a $160,000 contribution towards acquisition
and project improvements, The site for this facility is
presently being acquired by the Agency under a letter
of credit agreement with OCTD, Final design is un-
derway and construction is scheduled to begin no
later than January 1979,
Heritage Square, Heritage Square is a plaza area
located on Civic Center Drive and Sycamore Street,
directly across from the aforementioned proposed
Sunset development. The plaza will provide a park
environment for the adjacent County Courthouse and
historic Presbyterian Church, as well as adding to
the recently restored Howe-Waffle House,
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38
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42
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53
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55
56
57
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69
60
61
62
63
864
65
66
67
68
68
70
71
72
73
74
'"
Proof of FobrualY 21.1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 34-
Rehabilitation, Many existing structures in the
older portion of the downtown area are being suc-
cessfully rehabilitated with existing private and
Agency funds, The Agency intends to accelerate
its refurbishing program by assisting the property
owners with architecturai planning, real estate acqui-
sition to provide parking and removal of buildings
which are blighting adjacent properties slated for
refurbishing, Project improvements will consist of
sidewalks, street improvements, mini-malls, street
trees, street lighting and benches, all constructed in
conjunction with private developers,
Downtown Parking Facility, The Agency re-
cently had a major traffic and parking study con-
ducted for the central core area, To implement the
consulÚmt's recommendations, the Agency proposes
to acquire one-half block bounded by Main Street
to Broadway, Third to Fourth Streets, as a site for
a proposed 3-level 18O-space parking structure,
Heritage Development, The Agency is currently
entering into an owner participation agreement
with Heritage Development Company, who presently
own approximately one-half of Ihe block immedi-
ately south of the Civic Center, bounded by Third
and Fourth Streets, Van Ness Avenue and Parton
Streets, The Agency will acquire the remaining one-
half of the block and sell il to Heritage Development
Company who will then construct an office building
of approximately 80,000 square feet thereon, along
with 20,000 square feet of commercial space consist-
ing of a bank, restaurants and specialty shops. The
development will also provide a 35O-space parking
facility, It is anticipated that the owner participation
agreement will be executed by April, 1978; acquisi-
tion would begin immediately and construction is
estimated 10 start by January, 1979, with completion
appr\,ximately 15 months later,
Street Improvements. The Agency, by means of
a Federal grant, recenlly funded the aforementioned
parking facility in conjunction with the proposed ex-
pansion of Fashion Square, Bond proceeds will be
used ,to finance street access from Main Streel into
the parking facility, Bond proceeds will also be used
10 install underground drainage at key intersections
to eliminate surface channels in order to improve
traffic flow from the central core area to Ihe free-
ways,
The Agency will contribute a portion of the cost
towards computerizing all of the central city's traffic
signals for the purpose of expediting traffic move-
ment in and out of the central core area,
The Agency is currently funding a major upgrad-
ing of street lights in the downtown area and Bond
proceeds will also be used for that purpose,
" '"
11
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6
7
8
9
10
11
12
13
14
15
16
17
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25
2&
27
28
29
30
31
32
33
34
35
36
37
38
38
40
41
42
43
8:
46
47
48
49
50
81
52
63
54
55
58
57
58
89
60
61
62
63
.64
65
66
67
68
88
70
71
72
73
74
Proof of Fobruary 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 35-
The recent development of 400 units of senior
citizens housing adjacent to an existing park in the
downtown area makes it necessary to upgrade the
facilities in the park and to expand the park east-
ward into the downtown area where it will connect
with the Second Street Mall,
Other Project Development
The Agency anticipates other private develop-
ments will occur within the Project as land is acquired
and cleared for resale for development, utilizing pro-
ceeds from the Bonds currently offered, However,
other than recent developments discussed above and
included in the projections in Table 2, no projected
developments have been utilized in the calculations
of Tax Revenues presented in the following section
of this official statement.
However, as an indication of development activity
within the Project, the following paragraphs sum-
marize certain proposed developments that planning
and/or negotiation between the Agency and devel-
opers are currently underway, Again, it must be
noted that none of these developments have been
utilized in the calculations of projected Tax Reve-
nuesand estimated Bond retiremenl presented in this
official statement.
The Agency is currently enlering into negotiations
with a major office developer for a two block site
located al the corner of Flower and Civic Cenler
Drive.
Negotiations are also proceeding with an owner
of a vacant l8-acre parcel at the intersection of the
Santa Ana/Garden Grove and Orange freeways, An
extremely desirable location, this would be developed
as a complex of office buildings, commercial usage
and perhaps a major motor holel. Immediately to the
~outh of the above site, preliminary negotiations have
begun with the owner of an existing older motel to
remove Ihe existing motel and construct a lOO-unit
motor hotel.
As part of its downtown renovation, the Agency
assisted the owners of the World Travel Bureau to
remodel and renovate Ihe exlerior of its 4,200
square-foot building, located on Main Street and
Civic Center Drive, The Agency is currently working
with the owners of the Corday Hotel, a 72-room
hotel located at North Spurgeon and East Third
Streets. The owners are in the process of a $200,000
renovation" The Spurgeon office building, a major
historic landmark, located at Fourth and Main
Streels, is also scheduled for major renovation this
year .and the Agency is assisting owners to provide
additional parking, Mentioned above have been the
Agency's efforts in conjunction with the refurbishing
of the Santora Bnilding and the building to the south.
A number of other refurbishing efforts are in various
stages and, in tolal, the Agency is currently involved
with twelve property owners in the refurbishing of
their buildings,
l
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41
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864
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74
711
Proo' 01 FobrulfJ 16, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 36-
The Agency recently completed a $70,000 feasi-
bility Sludy to detennine the potential for develop-
ment of a Performing Arts Complex to be located
in either the Civic Center area or the Fashion Square
area of the Project. This would be a county-wide
facility consisting of a 3,500 seat theatre for the
Performing Arts, with a large multi-purpose area
and a 500 seat concert hall.
Public Improvements
While not on the tax rolls, numerous public im-
provements, most notably the Orange County/Santa
Ana Civic Center complex, have been constructed
within the Project area, providing employmenl for
6,000 and acting as a catalysl for commercial activ-
ity and development.
The center of the Projeci is occupied by a 40-acre
governmenlal complex containing Federal, State,
County and City facilities, The center is still expand-
ing, most recently by the construction of the $12
million County Hall of Administration, as well as
expansion of the County Courts and Ihe Sheriff's
department.
The City of Santa Ana has embarked on a major
streel improvement program to improve traffic flow
from the Santa Ana and Garden Grove freeways
into the civic center and central core area. Recently
completed is a $1.4 million extension of Civic Cen-
ter Drive. Under construction is a widening of
Flower Street to link the civic center with Seven-
teenth Street, a major access road to the Santa Ana
Freeway, Undergoing final alignment review is the
$10 million Broadway Overpass, which will improve
north-south traffic flow,
Other streel improvements, traffic signal com-
puterization and stonn drain improvements are un-
derway within the Project to provide improved access
to the civic center, central business core and the
north retail center.
Environmental Considerations
The Santa Ana Community Redevelopment Proj-
ect Area is subject to Ihe provisions of the California
Environmenlal Quality Act (Public Resources Code,
Section 21000 et seq,), and as such an Environ-
mental Impact Report on the Redevelopment Proj-
ect, as amended, was prepared, a public hearing was
held in the City of Santa Ana, and the final report
was adopted by the City Council and a Notice of
Determination was filed with the Orange County
Clerk.
i
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7S
'"
Proof ot Fobruarr 21, 1978
SANTA ANA-7923
Bowne of San Francisco, Ine., 981-7882
GALLEY 37-
ESTIMATED TAX
REVENUES AND BOND
RETIREMENT
SCHEDULE
Estimated Tax Revenues
An Tax Revenues (as previously defined) derived
from the levy and collection of taxes on any increase
in the assessed valuation of land, improvements,
public utility and all other taxable property in Ihe
Project over and above the 1972/73 frozen base roll
for Ihe original area . and the 1974/75 frozen base
roll for the added area established by the county
for such property are to be deposited in the City of
Santa Ana Redevelopment Project Area Special
Fund on and after April I, 1978, and applied by
the Fiscal Agent to Ihe payment of interest and
principal on the Bonds, If on each succeeding De-
cember 31 the balance on deposit in the Special Fund
(excluding any retention from prior years' deposits)
exceeds 125% of Bond interest and principal pay-
ments coming due on the next April I and October
1, the Fiscal Agent may transfer such excess to the
Agency under the conditions specified in the Reso-
lulion and set forth in "The Bonds" section of Ihis
official statement.
"Each annual levy of property taxes is made at the
then applicable rate, bul for the purpose of esti-
mating future tax receipts and calculating an esti-
mated Bond retirement schedule, the projection of
Tax Revenues available for payment of Bond inler-
est and principal is based on the 1977/78 tax rates
applicable to the Project (at least $8,2870 per $100
assessed valuation on all taxable property plus a
minimum of $,3845 per $100 assessed valuation on
land and improvements only), As discussed in the
preceding seclion of Ihis official statement, the incre-
mental assessed valuation in 1977/78 is $13,239,616
($54,170,300 valuation for 1977/78, less base year
valuation of $40,930,684, both as reported by the
Orange County Auditor-Controller) , By applica-
tion of the above tax rates to the incremental as-
sessed valuation, the Project will generate approxi-
mately $1,167,000 of Tax Revenues in the current
1977/78 fiscal year,
"As disc' us sed in the preceding section of this
official statement, (see Table 2) it is anticipated that
Project incremental assessed valuation will increase
by ~t least $3,861,272 by 1980/81 due" to recent
completion of new developments or development in
progress within the Projecl, resulting in a total incre-
mental assessed valuation of $17,100,888 by 1980/
81 and in each subsequent fiscal year. At this level,
and assuming continuation of the 1977/78 tax rates
I¡
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7.
.,
. "
Proof of Februa:y 21,1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
applicable to the Project area, annual Tax Revenues
of about $1,476,000 will be generated by 1980/81
and will cover estimated maximum annual debt serv-
ice on the Bonds ($1,113,000, computed on the
basis of relatively equal annual bond service pay-
ments to maturity) by about 1.33 times, It is antici-
pated by the Agency that additional development will
occur in the "Project in future years but no projections
0' such development or resulting incremental assessed
valuation have been made for the above computa-
tions, nor have increases in valuations of existing
development been projected,
There is no assurance, however, that tax rates
will continue to be levied at the 1977/78 level as
discussed previously on pages"" of this official
statement.
Table 4 below presents a history of Project as-
sessed valuations and Tax Revenues and projections
through 1980/81 based on the foregoing.
TablB 4
CITY OF SANTA ANA
REDEVELOPMENT PROJECT AREA
Assessed Valuations and Tax RBvenues
Fiscal
Vaar
Assessed
ValuallonCD
Excess Ovar
Frozen Basa
Tax
Ravanues(j)
1972173 $14,392,665 $ - $
1973174 . .
1974175 " 21,498,890 7,106,225 194,917
1975176 , , 18,962.200 5,091,642 645,508
1976/77 " 48,000,580 7,012,446 630,729
1977178 " 54,170,300 13,239,616 1,167,000
1978179 " 55,160,084 14,229,400 1,228,000
1979/80 " 56.781.572 15,850,888 1,368,000
1980/81 .. 58,031,572 17,100,888 1,476,000
Thereafter, 58,031,572 17,100,888 1,476,000
CD 1972/73-1977/78 actual, as reported by Orange County
Audilor Controllor; 1978/79 thoreafter projocted"(see Table
2)" 1973/74 not roportod in accordance with State law,
¡ncroase in 1976/77 duo principally to addition of north
retail center to Project.
@ 1974/75-1977/78 actual, as reported by Orange County
Auditor-Controller; 1978/79-Thereafter estimatod based on
1977/78 tax rates discussed abovo,
Orange County currently assesses taxable prop-
erty wilhin the Project at an average ratio of 25,1
percent of full value (except public utility property
which is assessed by the State Board of Equalization
at 25 percent of full value)" In accordance with
state statutory provisions any new construction (in-
cluding utility property) must be assessed at 25 per-
cent of full value" Property carried on the local
secured, unsecured and utility rolls is assessed to the
owner of record as of each March I preceding the
fiscal year commencing the next following July 1.
Unsecured property taxes are due on Ihe lien date
and are payable by the next following August 31,
while local secured and utility property taxes are
.due, one-half, on November I and February I of
1
2
8
4
5
&
7
8
8
10
11
12
13
14
15
18
17
18
19
20
21
I::
24
25
28
27
28
28
30
31
32
33
34
35
38
37
38
38
40
41
42
43
844
45
48
47
48
49
50
51
52
53
54
55
56
57
58
58
60
61
62
63
884
85
&&
67
88
59
70
71
72
73
74
-I
Proal 0' ,.b..." 18, 1178
SANTA ANA-7923
GALLEY 39-
each fiscal year and become delinquenl on Decem-
ber 10 and April 10, respectively. Tax Revenues
are currently allocaled to redevelopment agencies
in the county in the following manner: One-half of
the local secured and ulility tax allocations are made
by each January 31 and June 30 of each fiscal year;
unsecured tax allocations are made by March 1, of
each fiscal year, and the allocation of delinquent
taxes is made by September 1 of the fiscal year neJ!:t
following the year of levy. The estimated Bond
retirement schedule presented in Table 5 in this
section is based upon the foregoing schedule of tax
allocations to the Agency.
estimated Bond Retirement
Under the provisions of the Resolution, the Bonds
will mature serially each April 1 in the years 1979
through and including 2003 in the amounts specified
in "The Bonds" section of this official statement.
As stated above and elsewhere herein, the Resolu-
tion permits withdrawal by the Agency of certain
excess Tax Revenues from the Special Fund, subject
to specified condilions precedent. The provisions of
the Resolution require that the Fiscal Agent shall
accumulate each year in the Special Fund an amount
equal to 125 percent of Bond inlerest and principal
coming due on the nexl April I and Oclober 1 before
any disbursements may be made to Ihe Agency. No
disbursements of surplus funds may be made to the
Agency unless the required deposits have been made
to tbe Interesl, Principal and Reserve Accounts (see
Creation of Funds and Aœounts--Surplus, on page
.. ).
The Resolution also provides thai the annual
amounts retained in the Special Fund after paymenl
of Bond interesl and principal (25 percent of annual
debt service payments) shall be aœumulaled by the
F'lscal Agenl and applied to the purchase of out-
standing 1978 Bonds at any time, and must be
applied to the redemption of such Bonds on any
inlerest paymenl date commencing April 1, 1989.
Based on the proposed development and tax rates
applicable to the Project discussed previously, it is
estimated that the entire issue of 1978 Bonds may
be retired by 1996, as delailed in the Estimated Bond
Retirement Schedule presented in Table 5 on page
, ., or seven years prior to their final malurity date
of 2003, In view of the tax rate limitations discussed
previously on pages, , " of this official statement,
Ihere is no assurance the Bonds will be retired by
1996. However, it should be noted that the Reserve
Aœounl, equal to maximum annual debt service on
the Bonds and established from Bond proceeds, pro-
vides a one-year margin of safety pending the out-
come of any litigalion or legislation to protect the
security of outstanding bonds which mighl be im-
paired by such lax rate limitations,
Should the Agency issue any additional series of
authorized Bonds, there is no assurance thai the
1978 Bonds will, in fact, be retired by 1996. How-
ever, the conditions under which such Additional
Bonds may be issued are designed and intended to
prevent the dilution of the security afforded the
holder of any of the then outstanding Bonds, and to
assure payment by the established maturity date.
Bowne oj San Francisco, Ine., 981-788.2
'I:
4
5
.
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
I::
24
25
2&
27
28
29
30
31
32
33
34
35
38
37
38
38
40
41
42
.=
4S
46
47
48
49
50
51
52
53
54
55
56
57
58
58
eo
81
62
63
.=
88
87
88
68
70
71
72
73
74
_711.
Proof of February 18, 1178
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 40-
Table S does not reflect the initial deposit into the
Reserve Account (equal to maximum annual debt
service on the Bonds), since this amounl is to be re-
tained therein and, unless needed to cover any unan-
ticipated deficiency in the Tax Revenues, will not be
used unlil applied to the last payment of interest and
principal on the 1978 Bonds (or Additional Bonds),
The estimates presented in Table S do not take
into account interest earnings on the Special Fund
which in praclice will be invested in accordance with
Ihe provisions of the Resolution. To the extent that
such investment income is available, the retirement
of principal through purchase or call may be acceler-
ated over the retirement schednle presented in
Table S.
Table 5
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA
City of Santa Ana RedevBlopment Project Area, 1978 Tax Allocation Bonds
Estimated Bond Retirement and Cash Flow Schedule
Cumulative
Year Esllmaled Bonds Inleresl Redempllon Premium Tolal Balance
Ending Tax Outsland- Estlmaled Principal Bond In Spacial
April 1 Revenues<D Ing@ @8'k% Retlred@ Percenl Amounl Service Fund@
1979 ".., $1,228.000 $13,500.000 877,500 225,000 $ 1,102,500 $ 125,500
1980 .."" 1,368,000 13.275,000 862,875 240,000 1,102,875 390,625
1981 .."" 1,476,000 13,035,000 847,275 260,000 1,107,275 667,443
1982 """" 1,476,000 12,775,000 830.375 275,000 1,105,375 943.786
1983 .... 1,476,000 12,500.000 812,500 295,000 1,107,500 1,220,661
1984 .... 1,476,000 12,205,000 793,325 315,000 1,108,325 1,497.742
1985 .... 1,476,000 11.890,000 772,850 335,000 1,107,850 1,774,704
1986.." " 1,476,000 11,555,000 751,075 355,000 1,106.075 2,051,223
1987 .."" 1,476,000 11,200,000 728,000 380,000 1,108.000 2,328,223
1988 """" 1,476,000 10,820,000 703.300 405.000 1,108,300 2,605,298
1989 ""., 1,476,000 10.415,000 676,975 3,305,000 3 % $ 99,150 4,081,125 173
199°"" .. 1.476.000 7,110,000 462,150 980,000 3 29,400 1,471,550 4,623
1991 "."" 1.476,000 6,130,000 398,450 1,050,000 3 31.500 1,479.950 673
1992 ".." 1,476,000 5,080,000 330,200 1,115,000 H. 30.663 1,475,863 810
1993 .."" 1,476,000 3,965,000 257,725 1,185,000 2\;2 29.625 1,472.350 3,650
1994 """" 1,476,000 2,780,000 180,700 1,270,000 2\<4 28,575 1,479,275 375
1995 .,"" 1,476,000 1,510.000 98,150 1,350,000 2 27,000 1,475,150 1,225
1996 .."" 1,476,000 160,000 10.400 160,000 no 2,800 173,200 1,304,O25@
TOlals " $10,393.825 $13,500,000 $278,713 $24,172,538
<D B"ased on Tax Revenues currently being generated by the Project ($1,167.000) plus anticipated increases by 1980/81
resultin8 from new development completed since March I, 1977 or currently in progress,
@ Prior to retirement of principal in each yoar.
@ Provides for redemption of callable Bonds on earliest call date (April I, 1989) and each principal paymenl elate there-
after, 10 the extont Tax Revenues and retained funds are available"
@ Represents annual retention and accumulation from Tax Revenues in yearly amounts up 10 25 percenl of annual debl
service, Assumos application of total Tax Revenues to Bond redemption on and after April I. 1989. Does not reftect permitted
application of Reserve Account halance 10 final payments of principal and/or interesl, Excludes interest earnings on retained
funds,
@Available for dislribution 10 othor taxing agencies or for payment of Additional Bonds, if any,
11
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
I~
25
28
27
28
29
30
31
32
33
34
35
38
37
38
38
40
41
42
43
8:
48
47
48
49
50
51
52
53
54
55
58
57
58
58
60
61
62
63
884
65
..
67
88
88
70
71
72
73
74
Prool of Februa" 16, 1871
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 41-
CITY
FINANCIAL DATA
The Bonds are not a debt of the City of Santa Ana
and the following city financial data are included
only for the purposes of providing general infor-
mation.
Assessed Valuations
The City of Santa Ana uses the facilities of Orange
County for the assessment and collection of taxes
for city purposes, City taxes are collected at the
same time and on the same tax rolls as are county,
school district, and special district taxes, Assessed
valuations of properties are the same for both city
and county taxing purposes, The California State
Board of Equalization reports that 1977/78 Orange
County valuations average 25,1 percent of full value
except for public utility property, which is reported
to be assessed at 25 percent of full cash value by the
state.
The California State Legislature adopled two types
of slale-reimbursed exemptions beginning in the tax
year 1969/70, The first currently exempts 50 per-
cent of the assessed valuation of business inventories
from taxation. The second exemption currently pro-
vides a credit of $1,750 of the assessed valuation of
an owner-occupied dwelling for which application
has been made to the county assessor,
Revenue estimated to be lost to local taxing agen-
cies due to the above exemptions is reimbursed from
state sources, Reimbursement is based upon total
taxes due upon such exempt values and therefore is
not reduced by any amount for estimated or actual
delinquencies, The summary below presents the city's
1977/78 assessed valuation before and after giving
effect to such state-reimbursed exemptions, The sec-
ond following tabulation presents a ten-year history
of the city's assessed valuations,
1
I
I
4
5
.
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
I~
2S
26
27
28
28
30
31
32
33
34
35
38
37
38
39
40
41
42
43
844
45
46
47
48
49
50
51
52
53
54
55
56
57
58
58
60
61
62
63
864
65
66
67
68
68
70
71
72
73
74
711
-I
Proof of Fobru"'J 18, 1978
SANTA ANA-7923
Bowne of San Francisco, Jnc" 981-7882
<";ALLEY 42-
CITY OF SANTA ANA
1977/78 Assessed ValuatIon
Roll
Nel
Assessed
Valuation
Assessed
Slal.- Valualion
Reimbursed for Revenue
Exempllons Purposes
Secured" $611,692,520 $55,754,310 $667,446,830
Ulility . , , ,34,460,685 3,205 34,463,890
Unsecured, 104,700,861 30,031,229 134,732,090
Tolal , $750,854,066 $85,788.744 $836,642,810'
'Indudos an aggregato incremental assessed valuation of
$13,239,616 fnr the Community Redovelopment Agency's
redevelopment project. tbe property taxes on which are nol
available to the city or other taxing enlities,
Source: Orango County Auditor-Controller,
CITY OF SANTA ANA
AssessBd Valuations
Fiscal
Year
Assessed
Valualion'
1968/69
1969170
1970171
1971172
1972173
1973174
1974175
1975176
1976177
1977178
""""..,..""....
$314,811,280
337,139,899
395,225,984
410,290,809
459,687,757
500,977,524
558,980,480
628,124,725
711,432,573
836,642,810
"""""""""""
"""""""""""
, , . , , , , , , , , , , , " . , , , " ,
"."..,...,..,",..,.
,"..".,..,'..','...,
"....."..,....,.",
""""""""""""
"""""'"""'""'"
..,.."..,'..'.."...
'Bogi"ning in 1969170, values shown are before deduc-
tion of Stalo-reimbursed exemplions"
Source: Orange County Auditor-Controller"
Tax Rates
The City of Santa Ana is divided into two taxing
areas, the Basic Area (comprising 55,2% of the
total city assessed valuation) and an area annexed
in 1957-58 (comprising 44,8% of the tolal city
assessed valuation), The 1977/78 city tax rate for
both areas is $1.44 per $100 assessed valuation" Fol-
lowing are the components of the city's 1977/78 tax
rate,
:," .
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
,:
24
2S
26
27
28
28
30
31
32
33
34
35
36
37
38
39
40
41
42
43
. 44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
.64
65
66
67
68
68
70
71
72
73
74
I
Proof of FobrualY 21, 1978
CALLEY 43-
SANTA ANA-7923
CITY OF SANTA ANA
1977/78 Tax Rates Per $100 Assessed Valuation
General..""""""..,",,,"""..,,""",
Public safely,"""""",""""""","",,""","
Library """,""""""",,..,","",,,""
Recreation and parks, , .. " , , , , " " , .. , , , ,
Capital improvements ,"""""","","
Retiremenl ..",..",""""""..",,","
Total","""""",",,,,",,, ,
Source: 1977/78 City Budget.
$ .520
"200
,150
,060
,140
.370
$1.440
Under state statutory tax rate limitations, the
cily's 1977/78 tax rate limit for general purposes
is $1.92 per $100 assessed valuation,
A total of 65 tax rate areas have been established
within the City of Santa Ana for the 1977/78 fiscal
year. The largest, Tax Rate Area 11-003, has an
assessed valuation of $259,299,620, or about 31 per-
cent of the city's tolal assessed valuation, A five-year
summary of tax rates applying within this area are
shown in the summary below, Tax rates applicable to
the Redevelopmenl Projeci described in this official
statement are discussed elsewhere herein,
Bowne of San Francisco, Inc" 981-7882
CITY OF SANTA ANA
Tax Code Area 11-003
Tax RatB8 Per $100 A.V.
1973/74
1974/75
1975/76
1976/77
1977/78
County, , , , , , " " " , " " " " " , " " " , , , " , , " , " ,
City ",.."""",""""""""",,",,
Schools """",..","","""""","",,
Other ",""",""..".."""""""",,,,,
Total, All Property,,","""""""",
Land and Improvements onlyCD
Total,AIlRates"""""","",,"
$1.6800
1.3500
5,7395
"6374
$9.4069
.4581
$9,8650
$1.6050
1.3500
5,2214
,6007
$8,7771
.4371
$9,2142
CD Rates for county sanitation district and coonty water district,
Source: Orange County Auditor-Controller,
$1.6300
1.6100
5,0635
.5144
$8"8179
.4339
$9"2518
$1.4300
1.5900
5,1214
.5622
$8"7036
,4301
$9,1337
$1.3300
1.4400
4,9907
.5263
$8,2870
,3845
$8,6715
'I:
4
5
6
7
8
8
10
11
12
13
14
15
16
17
18
19
20
21
122
23
24
25
26
27
28
28
30
31
32
33
34
35
36
37
38
38
40
41
42
.=
45
46
47
48
48
50
51
52
53
54
55
56
57
58
59
60
61
62
63
.64
65
66
67
68
..
70
71
72
73
74
PrÐol of Februa" 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Ine" 981-7882
GALLEY 44-
Tax Levies and Delinquencies
Taxes on the secured rolls are payable in two
installments on November I and February 1 of each
fiscal year, and become delinquenl on December 10
and April 10, respectively, Taxes on unsecured prop-
erty are assessed and payable on March I and
become delinquent the following August 31 in the
next fiscal year.
The tabulation below shows the amount of secured
taxes levied by the City of Santa Ana since
1969/70, together with the amount and percent of
current taxes delinquent on June 30 of each year.
Over the eight-year period, the city's average annual
rate of secured tax delinquency was 1.45 percent.
CITY OF SANTA ANA
Secured Tax Levies and DBlinquencles
City Percenl
Fiscal Secured Delinquent Dellnquenl
Year Levy June 30 June 30
1969/70 .'" $3,773,496 $ 59,877 1.59
1970/71 .... 4,261,126 51,882 1.22
1971/72 .'.' 4,481,786 56,339 1.26
1972/73 .... 5,070,447 66,067 1.30
1973/74 "" 5,000,664 83,344 1.67
1974/75 "" 5,754,147 97,248 1.69
1975/76 .... 7,409,326 96,710 1.31
1976/77 "" 8,457,674 134,024 1.58
Source: Orange County Auditor-Controllor,
Principal Taxpayers
The Orange County Tax Collector does not com-
pile lists of the principal laxpayers within a particu-
lar taxing entity,
Retirement System
Permanent cily employees, including those of the
Redevelopment Agency, are covered under the Pub-
lic Employees' Retirement System (PERS) of the
State of California, The city contributes an amount
equal to 9,426% of miscellaneous employee wages
and 23.445% of safety employee wages, Employee
contributions equal 7% of wages for general em-
ployees and 9% of wages for safety employees.
PERS was originally established in 1931. The
System is governed by an eleven member Board of
Administration, Administration functions are carried
oul under the direction of an Executive Officer with
a current staff of approximately 475. As of June 30,
11
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
I~:
25
28
27
28
29
30
31
32
33
34
35
36
37
38
38
40
41
42
43
8:
46
47
48
49
50
51
52
53
54
55
56
57
58
58
80
61
62
63
64
8:
67
88
88
70
71
72
73
74
Proof of FobruarJ 16, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 45-
1976, there were 543,436 members of which approx-
imately 9% were classified as "safety" members
(principally fire and police employees) and the bal-
ance were classified as "miscellaneous" members
(management, administrative, staff, operational and
clerical employees),
Approximately 33% of Ihe members are state
personnel and the balance (67%) are public agency
personnel. As of June 30, 1976, the System provided
retirement, death and survivor benefits under 944
contracts for about 1,950 public agency employers
(cities, counties, and other public agencies) with
364,116 members, The System's funding is by em-
ployer and employee contributions together with
investment income, Contributions fluctuate yearly
depending on the number of members and their re-
spective salary schedules, The annual contribution
by the State of California for the 1974 and 1975
fiscal years, as reported by the State Controller, was
$162,649,578 and $231,057,854, respectively, The
System's financial statements are prepared on an
accrual basis of accounting and the System's auditor
is Coopers & Lybrand, Sacramento, California, Citi-
corp Investment Management, Inc" San Francisco,
provides investment advisory services, The System's
actuarial activities are conducted internally on a
continuous basis, with an experience analysis being
conducted no less than every four years,
Total assets of the System at June 30, 1976 were
$7,896,318,894, according to the Annual Report of
the State Controller, Of this amount, reserves of
$7,862,480,565 were available for benefits, Compar-
able figures for June 30, 1975 were $7,010,807,246
and $6,966,356,482, respectively, The unfunded
obligation of the System was delermined to be
$6,131,556,655 at June 30, 1975 by the independent
auditors. The total unfunded obligation does not
take into account the provisions of Chapter 187,
Statutes of 1975, which prescribed a new increased
contribution rate by the state with respect to state
miscellaneous members, Additional information is
available from State of California Public Employees'
Retirement System, 1416 Ninth Street, Sacramento,
California 95814,
The amount of the respective unfunded liabillies
will vary from time to time depending upon the
actuarial assumptions utilized, rates of return and
salary scales, The present System policy is designed
to satisfy the unfunded obligation by the year 2000,
According to the City of Santa Ana audited finan-
cial report for fiscal 1976/77, the total pension
expense for that year was $3,857,159, of which
approximately $282,000 was for past service costs
which are being amortized through July I, 1979.
Pension costs are funded by monthly contributions
to PERS, The excess, if any, of the actuarially com-
puted value of vested benefits over the amounts
available in the pension fund was not detennined
as of June 30, 1977,
'I~
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
8~
25
28
27
28
28
30
31
32
33
34
35
38
37
38
38
40
41
42
.=
4S
46
47
48
49
50
51
52
53
54
55
56
57
58
58
60
81
82
63
.:
66
67
68
89
70
71
72
73
74
Proof of Pebruary 16, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 46-
Revenues and Expenditures
Table 6 presents a summary of the revenues, ex-
penditures and capital outlays, exclusive of water
utility operalions, of the City of Santa Ana for the
past five fiscal years, as reported to the State Con-
troller in accordance with State law,
Fund Balances
The city's audited unappropriated fund balances
as of June 30,1976 and 1977 were as shown below.
CITY OF SANTA ANA
Unappropriated Fund Balances as of June 30
Fund 1976 1977
General Fund $ 529,038 $1,096,769
Special Revenue Funds, . 166,327 1,065,086
Capital Projeci Funds" , , 397,139 485,687
Olher Funds .......... 463
Tolal """"",, $1,092,967 $2,647,542
Soureo: Cily audit reports.
Direct and Overlapping Bonded Debt
The Oty of Santa Ana has no outstanding general
obligation bonds, A statement of the city's estimated
overlapping general obligation bonded debt is pre-
sented in Table 7 on page, .,
Lease Obligation
The city also has a $464,300 annual lease obliga-
tion to the Orange County Civic Center Authority
for rental of the Santa Ana City Hall, The lease
payments are used by the Aulhority to retire bonds
issued to finance the facility, The final rent payment
is payable in 1996/97, Upon payment and expira-
tion of the lease, ownership of the city hall will vest
in the city,
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7
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823
24
25
26
27
28
28
30
31
32
33
34
35
36
37
38
39
40
41
42
43
844
45
46
47
48
48
50
51
52
53
54
55
58
57
58
58
80
61
62
63
64
865
66
67
68
89
70
71
72
73
74
7S
'I
Proof of Fobraa" 18, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 47-
Table 6
CITY OF SANTA ANA
Revenues and Expenditures
1972/73 1973/74 1974/75 1975/76 1976/77
REVENUES
Property taxes "........""""" $ 5,794,774 $ 5,818,460 $ 6,449,481 $ 8,396,180 $ 9,828,295
Sales taxes.. .. .. " .. .. .. " " .. 5,891,993 6,827,507 7,112,836 8,015,281 9,776,811
Other taxes ..,........ " " " " " " 964,148 1,073,661 1,166,921 2,346,742 3,554,181
Licenses and permits, , " , " , , , , 492,826 510,335 438.418 715,386 938,275
Fines and penalties, , , , " , , , , " 747,400 788,238 878,348 871,210 1,084,857
Use of money and property, , , , 381,694 819,605 1,113,964 696,774 746,449
Subventions and grants, . " , " , , 6,891,733 8,198,860 9,810,074 14,300,467 16,458,256
Service charges, " .. , " .. " , , .. , 1,330,020 1,660,255 1,694,049 2,139,165 2,754,021
Other revenues" .. " .. .. " .. .. , 1,010,538 597,536 626,193 673,203 739,355
Total Revenues" " , , " " , , $23.505,126 $26,294,457 $29,290,284 $38,154,408 $45,880,500
EXPENDITURES
General government"", " " " , $ 3,616,429 $ 4,615,823 $ 7.849,626 $10,363,154 $11,704,797
Public safety, " , .. , " , , , .. , .." 7,713,115 9,246,600 10,577,448" 13,156,447 15,747,652
Public works""","",,,,",. 2,684,895 3,104,022 3,651,488 4,081,808 4,498,707
Libraries" .. .. .. .. .. .. " .. .. " 696,543 775,313 850,417 864,593 921,901
Parks and recreation, , , , , , " , , 1,597,424 1,842,780 2,070,465 2,091,276 2,232,182
Total Expenditures, " " , , $16,308,406 $19,584,538 $24,999,444 $30,557,278 $35,105,239
CAPITAL OUTLAYS"",","," $ 3,461,030 $ 5,567,626 $ 7.467,537 $ 5,243,911 $ 6,493,497
Source: City Finance Oopartment as reported to Stale Controller,
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19
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24
25
26
27
28
29
30
31
32
33
34
35
38
37
38
39
40
41
42
43
844
45
46
47
48
48
50
51
52
53
54
55
58
57
58
59
60
61
82
63
.84
65
66
67
68
68
70
71
72
73
74
Proof 01 Fobrua" 18, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
~ALLEY 48-
Table 7
CITY OF SANTA ANA
EstlmatBd Overlapping Debt
~~~"""'"""""'"'""""'""""""'"""",.
1977/78 Assessed Valuation "'""""",""""""."".,
Estimaled Market Value """"'""""""""""""'"
182,OOO<D
$ 836,642,810
$3,346,S7I,OOO@
Enllty
Percenl
Appllcable@
Debl Applicable
March 21,
1978@
Orange County ',....."..,""..""",..",""""'..",..,,,..,..,..,
Orange County Flood Control District '"""""""""""""""'"
Metropolitan Waler Dislrict "'""""'""'"""""""""""""""
Sanla Ana Community College District """""'""""""""""'"
Santa Ana Unified School District "','"","",..""".,....""..,
Olher school districts.......... " .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ,
Orange County Sanitation District No" I '"""""""""""""'"
Orange County Sanitation District No" 2 """"""""""'""""""""
Orange County Sanitation Districi No" 3 """""'"""'""'""""'"'
OrangeCountySanilation District No, 7 "'"'""'""""""""""""
Other special dislricts ..,',.."..",""..",",","""".."",",",",,"
TOTAL OVERLAPPING BONDED DEBT, , " , , , " , , , " , , , " , ,
%
$
1977/78
Assessed
Valuation
Reliola
Eslimaled
Markel
Value
Per
Capila
1977/78 Assessed Valuation """"""""""'"'"
DireclDebt '"..,.."..","..",..".."""..,"",,
TotalDebl""""""","""""""""",,.,,,.
100" %
-0--
@ %
-0--
$4,597
-0--
<D Source: State Department of Financo as of January], ]977,
@ Based on assessmonl ratios discussed on page, " of this official statemenl,
@ Excludes share of county lease-revenue bond obligations ($" " " " " ""), city lease-revenue bond obligations ($" , , , , ..),
and Redevelopment Agency Tax Allocation Bonds now being offered for salo" Excludes salos and repayments, if any, botween
"""""""","""andMarch21,]978"
NoTE-City share of authorizod but unissued bonds,
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39
40
41
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43
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45
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60
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865
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"I
ProD' 0' Februa" 18, 1978
SANTA ANA-7f j!3
»OWl1t1 pf Sa!! Fra!!ci~!!O, I!!e., 81-788~
GALLEY 49-
THE CITY
Geography
The City of Santa Ana, county seat of Orange
County and one of the oldest communities in South-
ern California, is located 33 miles southeast of Los
Angeles, 20 miles east of the Ports of Los Angeles
and Long Beach, ten miles inland from the Pacific
Ocean along the Santa Ana River, and 90 miles
north of San Diego, It encompasses an area of ap-
proximately 27 square miles and lies on generally
level land at an elevation of 135 feet above sea level,
The City of Santa Ana was established by William
H, Spurgeon on 76 acres of land in 1869, It was
incorporated on June I, 1886 and reorganized under
a city charter in 1888, In 1952, the voters approved
a charter which established a council-manager form
of government. The seven-member city council is
elected at large and the mayor is elected by the coun-
cil from among their membership, The city has
served as the county seat since the formation of
Orange County in 1889,
Numerous government offices have taken advan-
tage of the city's central location and position as
county seat. City, county, state, and federal offices
are conveniently located in the new city-county civic
center in the heart of the city,
Santa Ana has a relatively mild climate induced
by the mixing of cool breezes from the ocean and
drier winds from the desert over the coastal plain,
The mean July temperature is 72° and the mean
January reading 53°"
Population
Santa Ana has shown a slower rate of population
growth than Orange County as a whole, indicating
its stability as an established community, The 1970
census reported the population of the city to be
156,601, a 56,1 percent increase over the 1960
population. Orange County, according to the 1970
census, had an estimated population of 1,420,386,
a lOl.8 percent increase over the same period.
The State Department of Finance estimated the
January 1977 population of Santa Ana at 182,000,
an increase of over 25,000 from the 1970 census,
Growth in population since 1940 is shown in the
following tabulation, The county's January 1977
population is estimated at 1,768,000, ranking it sev-
enth in the nation.
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26
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32
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38
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40
41
42
843
44
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48
49
50
51
52
83
54
55
58
57
58
59
60
61
62
63
.::
86
67
68
88
70
71
72
73
74
ProOI 01 Plbrua" 18, 1178
SANTA ANA-7913
Bowne of San Francisco, Inc., 981-78B~
GALLEY 50-
CITY OF SANTA ANA
Population
Year
Populallon
Percanl
Increase
19400
19500
19600
19700
1977@
31,921
45,533
100,350
156,601
182.000
42,6
120.4
56.1
16.2
............",
.........."..,
....,..........
..............'
..........,,"..
0 U,S. Census,
@ Stale Departmenl of Finance.
The 1970 Census of Housing reporled 50,059
dwelling units in the city. Approximately two-thirds
of all occupied dwelling units were single-family
structures. Median home value was $22,300,and
median monthly rental $122. These values have more
than doubled in the years since the 1970 Census.
The 1977 Survey of Buying Power published by
Sales & Marketing Management, reports the median
household effective buying income in the city to be
$13,347, as compared to Ihe Siale-wide median of
$14,299,
Employment
All of Orange County is considered a single labor
market area for employment reporting purposes be.
cause of the highly developed freeway network,
Slate employment bulletins for November 1977 re-
ported county-wide civilian employment of 668,700,
an increase of 41,400 over the November 1976
total. Principal sources of employment throughout
the county are manufacturing, trade, services, and
government, Of the 169,700 Orange County workers
in manufacturing jobs, 126,100 are in durable goods
industries, according to the most recent data. The
labulation below presents a summary of employment
in the Orange County Labor Market for November
1976 and 1977,
ORANGE COUNTY LABOR MARKET
Civilian Employment by Industry
Induslry
November
1976
November
1977
Manufacluring ...."..... 161,600 169,700
Construction ,.."........ 35,500 41,800
Transportalion, Communica-
tions, Ulililies ,"""", 19,000 20,100
Trade ....,.,...,..,.." 150,500 161,800
Finance, Insurance, Real Es-
tale ....,...",..".., 33,900 37,300
Services ....,..,.."","" 115,900 122,300
Governmenl ..........,.. 99,700 104,200
Agriculture ........"...., 9,400 9,300
Mining "..,.."..",.., 1,800 2,200
Total .........., 627,300 668,700
Seasonally adjusted unem-
ploymenl rate .......... 5.5% 4,0%
Source: California Employment Development DepartmonL
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27
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35
3&
37
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38
40
41
42
43
844
45
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48
50
51
52
53
54
55
68
57
58
58
60
61
62
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64
865
66
87
68
68
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73
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'I
Prool 01 February 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
GALLEY 51-
As shown above, manufacturing trade and serv-
ices are the three major categories of employment,
comprising 70 percent of all jobs, Governmental em-
ployment is also a major factor in the Orange County
labor market.
A list of the largest industrial employers in thc
Santa Ana area appears in Table 8 on page, .. The
leading nonmanufacturing employers in the city are
the State of California, U, S, Government, Orange
County, Allstate Insurance Company, Farmers In-
surance Group, and the City of Santa Ana. Shopping
centers also provide employment for many in the
city,
Table 8
MAJOR INDUSTRIAL EMPLOYERS IN THE CITY OF SANTA ANA AND VICINITY
Firm
Producl/Servlce
1,000 or more employees:
AMF Voit, Inc,
lIT Cannon Electric
Rubber sporting goods
Electrical connectors
500-1,000 employees:
Allergan Pharmaceuticals
Associated Concrele Producls, Inc"
Bertea Corp,
L. M, Cox Mfg" Co" Inc,
Electronic Engineering Co" of CaJifornia
Energy Products Division
ICN Pharmaceuticals
Irvine Company
McGaw Laboratories
Parker-Hannafin Corp,
The Register
Royal Industries, Energy Products Division
SPS Western
Stresskin Products Co" Div" of Tool Research Eng, Corp"
Townsend Co" BoOls Aircraft Nut Division
Townsend Co" Cherry Rivel Division
Varian Data Machines, Inc,
Pharmaceuticals
Underground vaults
Aircraft components
Toys and accessories
Data processing, electrical equipment
Aircraft parts
Pharmaceulicals
Industrial development
Hospital supplies
Industrial products
Publishing
Nuclear, aerospace products
Sleel furniture
Honeycomb metal products
Aircraft components
Aerospace and commercial products
Digital compulers
300-500 employees:
Adohr Milk Products
Aluminum Forge Co,. Division of AIlamil
Astech Division
Bentley Laboralories
Borg-Warner Controls
Califoam Div" Mobay Chemical Co,
Conolon Corporation
Control Componenls, Inc"
Control Data Corporation
Edwards Laboratories
Emerson Electric Industries
Gardner Denver Co,
John B" p, Furniture Mfg" Co.
Kerr Glass Corp,
Lear Sigler Inc"
Microdata Corp"
Tool Research & Engineering
Vanier Graphics Corp,
Xerox Corp"
Dairy products
Forgings
Aeropsace comporu:nts
Medical devices
Frequency changers
Polyurethane foam
Fishing rods
Valves
Computers
Medical devices
Eleclronics
Industrial machinery
Furniture
Containers
Bearings
Minicomputers
Airplane parts
Business forms
Copying machines
Source: Santa Ana Chamber of Commerce, January 1977"
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5
8
7
8
9
10
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12
13
14
15
16
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18
19
20
21
8:
25
28
27
28
28
30
31
32
33
34
35
36
37
38
38
40
41
42
43
8:
46
47
48
49
50
51
52
63
54
65
56
57
58
59
80
81
62
63
64
865
56
67
68
88
70
71
72
73
74
Prool 01 Fobrua" 16, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
GALLEY 52-
Industry
There are over 3,000 acres in the city limits zoned
for industry. More than 400 manufacturing plants
are located within the city with employment ranging
from 25 to over 1,000. Leading classes of industry
include electrical and electronic equipment, fabri-
cated metal products, sporting goods, office equip-
ment, and aircraft and space vehicle components,
Principal manufacturing firms include lIT Cannon
Electric, with 2,000 employees, engaged in the man-
ufacture of electrical connectors; and AMF Voit
(over 1,000 employees), manufacturer of sporting
goods.
Other major employers manufacture principally
precision metal parts, aerospace components, com-
puters, pharmaceutical and medical supplies and
sports and leisure products.
Established industrial areas in the city include
Industrial Park, Industrial Village, Industrial Mart,
Industrial Plaza, and Segerstrom Industrial District.
The $50 million Orange County Industrial Center,
opened in late 1973, comprises 137 acres in Santa
Ana and 83 acres in adjacent Costa Mesa, and is
being developed to attract firms in light manufactur-
ing, dislribution, and research and development.
Commerce
Retail merchandising is a major factor in the city's
economy, The city serves as a major commercial and
marketing center for a large portion of Orange
County.
In addition to the downtown business district,
Santa Ana has six major shopping areas, including
such stores as Buffum's, Bullock's, Wards, Sears,
and I. Magnin, The Fashion Square and Honer
Plaza shopping centers offer more than 50 specialty
stores,
The 44-acre Bristol Town and Country Center
opened in December 1973, The master plan for this
development includes 65 specialty stores, two medi-
cal-dental buildings, a children's clinic, and a four-
story professional building, South Coast Village, an
85-store, 16-acre shopping complex, is located in the
southern part of the city,
The following tabulations summarize the grow1h
in taxable transactions since 1972 and present a
detailed breakdown of the 1976 activities, as re-
ported by the State Board of Equalization,
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.
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5
6
7
8 GALLEY 53-
9
10
11
12
13 Taxable Transactions
14
15
16
17
18
19
20
21
22
23
24
25
28
27
28
28
30
31
32
33
34
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37
38
38
40
41
42
43
. 44
45
48
47
48
49
50
51
52
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54 Finance
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69
60
61
62
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64
. 65
68
67
66
68
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71
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"
8
Proof of Fobrua" 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
CITY OF SANTA ANA
Year
OUll91s
July 1
Taxable
Transaclions
]972 """"""
]973 """"""
]974"..,..",,"
]975"..,.."",
]976 """""',
]977 (6 mos,) ,'.,
3,726
3,979
4,269
4,69]
5,]40
5,380
Source: State Board of Equalization,
$5]7,03],000
60],060,000
644,998,000
684,956,000
837,445,000
474.364,000
CITY OF SANTA ANA
1976 Taxable Transactions
Type
Oullels Taxable
July 1 Transactions
Apparel slores """"""'"
Genera] merchandise stores, , "
Food stores<D .. .. .. " .. .. .. ..
Packaged liquor stores" , , " " , ,
Eating and drinking places, , , ,
Drugslores<D"",..""""
Home furnishings and appliance
slores """"""""'"
Building malerial and farm im-
plement stores.. , .. .. .. .. ,
Motor vehicle dealers and auto
supplies.. .. .. .. .. .. .. .. "
Serviceslations@ """"""
Otherreiailstores """"""
Tolal retail stores" " ,
All other outlets.. .. .. .. .. ..
Total all outlets, , , , ,
]34
]6]
470
],694
3,446
5.]40
96 $ 20,43],000
37 65,994,000
]54 54,95],000
39 ]2,]77,000
381 62,3]2,000
35 15,066,000
133
36,737.000
54
48,337,000
]24,472,000
57,951,000
10],373,000
$599,80],000
237,644,000
$837,445,000
<D Certain items not taxable"
@Gasoline for highway use became taxable July I, ]973,
Source: State Board of Equalization"
The city serves as the financial and insurance cen-
ter for Orange County, According to the Federal
Reserve Bank of San Francisco, as of June 30, 1977,
commercial bank debits in Santa Ana totalled more
than $2.66 billion, over one-fourth the total for the
county, Bank deposits in the city as of the same dat~
were reported to be in excess of $320 million, .
There are 13 commercial banks with a total of 31
branch offices within the city, as well as 10 savings
and loan associations. Included among these are a
number of the nation's major banks and savings and
loan institutions,
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40 Growth Indicators
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.=
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48
48
50
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52
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57 Transportation
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864
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88
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71
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74
Proof of Februa" 16, 1878
SANTA ANA-7923
Bowne of San Francisco, Inc., 981-7882
Construction Activity
Building pennits issued by the City Building De-
partment over the past five years are valued at more
than $390 million. A summary by individual years
is presented below.
In recent years, permit valuations for new com-
mercial and industrial buildings has risen markedly,
Major industrial and commercial projects at Orange
County Industrial Center, Bristol Town and Country
Center, and South Coast Village account for much
of the recent high rate of nonresidential permit valu-
ation.
CITY OF SANTA ANA
Building Permit Valuations
Number of Housing Valualion
Year Permits UnitsCD ($000)
1973 """ 3,694 1,304 $ 65,209
1974 3,247 1,366 61,125
1975 3,440 561 46,490
1976 4,235 847 109,888
1977 4,266 884 107,520
CD Includes single-family homes and apartment units"
Source: City of Santa Ana Building Department,
The statistics below were compiled by the First
National Bank of Orange County to demonstrate
the growth pattern in the City of Santa Ana,
Economic Indicator 1970 1977
Residential units occupied" " 48.883 63,808
Electricmelers '""'"""'" 52,085 66,561
Water meters """"'"" 32,926 38,248
Gas meters.. .. " .. .. .. .. , 42,555 49,034
Telephones(!) """"'"'" 208,948 424,829
School enrollment (K-12) " 27.963 27,150
CD Includes City of Tustin"
Source: First National Bank of Orange County"
Santa Ana is located within the hub of the inter-
section of four major freeways, The Santa Ana Free-
way (Interstate 5) provides direct acçess to down-
town Los Angeles and connects with the San Diego
Freeway (Interstate 405) southeast of the city, The
Garden Grove Freeway provides east-west circulation
along the northern city limits, linking the San Diego
Santa Ana, and Newport Freeways, The Newport
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40 Utilities
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50 Education
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52
53
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57
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110
61
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864
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....
Prool of Fobruary 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
Freeway skirts the eastern city limits, providing
access to the Newport Beach area,
Rail freight service is provided by the Santa Fe
Railway and the Southern Pacific Company, Amtrak
provides passenger service to San Diego to the south
and Los Angeles and all other points to the north
and east. Overland bus service is provided by Con-
tinental Trailways Bus System and Greyhound Bus
Lines, The Southern Calilornia Rapid Transit Dis-
trict offers bus transportation throughout the four-
county Southern California Metropolitan area. The
Orange County Transit District provides bus service
between Santa Ana and other Orange County cities,
Most major lruck lines serve the city,
The Orange County Airport is located two miles
south of the city, Regularly-scheduled service to San
Francisco, Oakland, San Jose, Sacramento, Palm
Springs, Lake Tahoe and San Diego is provided by
Air California, Hughes Airwest flies to major cities
throughout the West. Golden West Airlines provides
scheduled commuter aircraft service to Los Angeles
International Airport.
The city is within 20 miles of the Ports of Los
Angeles and Long Beach, both readily accessible via
freeways,
Utility services are provided by the following:
Electricity: Southern California Edison
Company
Natural gas: Southern California Gas Company
Telephone: Pacific Telephone Company
Water: City of Santa Ana
Sewer: Orange County Sanitation Districts
Santa Ana is served by various school districts,
Most of the city is in the Santa Ana Unified School
District or the Garden Grove Unified School Dis-
trict. Portions are also located in the Orange Unified
School District, Tustin Elementary, and Tustin High
School Districts, There are 24 public elementary
schools, four intermediate and junior high schools,
four high schools, and a special school for the handi-
capped, with an aggregate enrollment of approxi-
mately 28,000. The city has 15 private schools, in-
cluding eight parochial elementary schools and a
parochial high schoo\.
Santa Ana College, established in the city in 1915,
offers two-year academic programs leading to the
Associate of Arts degree and a variety of technical
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SANTA ANA-7923
Proof of Fobruary 18, 1878
Bowne of San Francisco, Inc., 981-7882
training programs. Enrollment is about 15,000 stu-
dents, Also located in Santa Ana is the Pepperdine
Graduale Center, an affiliate of Pepperdine Univer-
sity of Los Angeles.
The University of California at Irvine was opened
in 1965 on a 1,500-acre site a short distance south
of Santa Ana. It is the principal higher education
facility in Orange County, offering undergraduate
and graduate programs in a variety of fields includ-
ing studies toward a Ph,D, Enrollment has grown
to over 12,000 students,
Other institutions of higher learning in Orange
County are California State University at Fullerton;
Chapman College in Orange; Pacific Christian Col-
lege, Fullerton; Southern California College, Costa
Mesa; West Coast University, Orange; and Western
State University College of Law in Fullerton, plus
the following 2-year community colleges: Cypress
Community College; Fullerton Community College;
Golden West College; Orange Coast College, and
Saddleback College,
Orange County offers a broad spectrum of recrea-
tional opportunities which are enhanced by its mild
climate.
Along the county's Pacific Coast shoreline are five
state beaches and parks, five municipal beaches and
five county beaches, There are two small craft facil-
ities in Newport Harbor, which is reported to be the
largest pleasure craft harbor in Ihe world. A third
small craft facility is located at Sunset Harbor in
Huntington Beach. A fourth opened at Dana Point
in 1971.
Nearby recreational facilities include the world-
famous Disneyland, Knott's Berry Fann, and Mis-
sion San Juan Capistrano, Lion Country Safari
opened in June 1970 at a 5OO-acre site south of
Santa Ana, It contains a variety of African animals
and birds which visitors may observe on a drive
through the facility,
In Sanla Ana, there are three golf courses and 27
parks, including a municipal zoo and museum. Ana-
heim Stadium, home of the California Angels base-
ball team, is six miles north of the city"
Camping facilities are available in the Cleveland
National Forest and at the county's O'Neill and
Featherly Parks, all close to Santa Ana,
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Proof of FobruaIY 16, 1978
SANTA ANA-7923
Bowne of San Francisco, Inc" 981-7882
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Community Facilities
Santa Ana has four general hospitals with a total
of 561 beds. The newest is the 306-bed Santa Ana"
Tustin Community Hospital which opened in 1975.
The city is served by over 250 physicians and sur-
geons and 100 dentists,
The city operates a main public library with one
branch and a bookmobile service, A second branch
library is planned for early construction on a site
already acquired by the city, Orange County main-
tains a law library in Santa Ana.
The Santa Ana Register is a daily morning and
evening newspaper serving all of Orange County,
Seven other daily newspapers and several weekly and
semi-weekly papers are published in other parts of
the counly. The Los Angeles Times publishes an
Orange County Edition.
One AM radio station and two FM stations are
located in Santa Ana, Residents of the city receive
radio and television broadcasting serving the Metro-
politan Los Angeles area,
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Proof or FobrualJ 16, 1978
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SANTA ANA-7953
Bowne of San Francisco, Inc., 981-7882
THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA
REPORT AND FINANCIAL STATEMENTS
June 30, 1977 and 1976
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660 NEWPORT CENTER DRIVE
--. -~._---- NEWPORT BEACH,CALIFORNIA 92660
714"640"9200
November 2, 1977
To the Community Redevelopment
Agency of the City of Santa Ana
In our opinion, the accompanying balance sheet and the
related statement of revenue, expenditures and changes in
fund deficit present fairly the financial position of the
Community Redevelopment Agency of the City of Santa Ana at
June 30,1977 and 1976, and the results of its operations
for the years then ended, in conformity with generally
accepted accounting principles consistently applied. Our
examinations of these statements were made in accordance
with genèrally accepted auditing standards and accordingly
included such tests of the accounting records and such other
auditing procedures as we considered necessary in the
circumstances.
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THE" COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA
BAIANCE SHEET
June 30
1977
1976
ASSETS
Cash and investments
Due from other governments
Property taxes receivable
Land held for resale
Equipment and furniture
$
$465,836
11,564
5,294
455,655
5,939
$944.288
760,480
26,544
6,568
1,067,885
6,335
$1.867.812
LIABILITIES AND FUND DEFICIT
Accounts payable
Amounts due to the City of
Santa Ana (Note 2)
Advances
Interest on advances
Deposits (Note 3)
Total liabilities
$ 46,727 $ 28,488
2,541,526 1,985,266
375,328 209,257
385,012
3,348,593 2,223,011
(1,480,781) (1,278,723)
$1.867 .812 $ 944.288
Fund defid t
See accompanying Notes to Financial Statements,
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THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND DEFICIT
Year ended June 30
Revenue:
Property taxes
Grant from federal
(Note 4)
Interest income
Rental income
1977 1976
$ 638,271 $ 460,884
54,813
27,323 14,421
12,583
732.990 475.305
government
Expenditures:
Project costs and contractual
services
Loss on sale of land
Administrative (Note 2)
Interest (Note 2)
Other
444,708 335,255
188,031 101,421
128,131
166,071 121,870
8.107 8.015
935,048 566.561
(202,058) (91,256)
(1,278,723) n,187,467)
($1,480.781) ($1.278.723)
Excess of expenditures over
revenue
Fund deficit at beginning of year
Fund deficit at end of year
See accompanying Notes to Financial Statements.
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THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF SANTA ANA
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - NATURE OF THE AGENCY AND
SIGNIFICANT ACCOUNTING POLICIES:
The Community Redevelopment Agency of the City of Santa Ana
(the Agency) is a separate governmental entity established pursuant
to the State of California Health and Safety Code, Section 33000
entitled "Community Redevelopment Law". Its purpose is to prepare
and carry out plans for the improvement, rehabilitation and re-
development of blighted areas within the territorial limits of the
City of Santa Ana (the City). The State Health and Safety Code pro-
vides that upon the approval of a redevelopment plan, future in-
cremental increases in the tax base within the designated project
area will be paid to the redevelopment agency until all indebted-
ness incurred to finance the project has been paid. The Agency is
currently administering one redevelopment project established in
1973. The area of the City defined by this project includes prin-
cipally commercial properties.
The City Council has declared itself to be the Agency pursuant
to the Community Redevelopment Law and functions as the Agency's
Board of Directors. The Council established a seven member
Community Redevelopment Commission to assist in the implementation
of projects approved by the Agency. The Agency has no employees;
all Agency duties and functions are performed by employees of the
City. The City is reimbursed for the cost of these and other
services (Note 2).
Significant accounting policies
Basis of accounting
The accrual basis of accounting is followed by the Agency.
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Fund accounts
The redevelopment project is a trust fund. When the project
is completed and all indebtedness is paid, the Agency will abolish
the fund and transfer any remaining assets to the City.
Cash and investments
Cash and investments are maintained in the City's treasury and
administered on behalf of the Agency by the Director of Finance of
the City. Investments are stated at cost, which approximates market
value.
Land held for resale
Property acquired by the Agency which is to be held for resale
is recorded at cost.
NOTE 2 - TRANSACTIONS WITH THE
CITY OF SANTA ANA:
The Agency has entered into an agreement with the City for
financial assistance and services, facilities and personnel support.
The City advances funds to the Agency from time to time as needed.
Interest on these advances accrues at 7% per annum. Under the terms
of the agreement office space and equipment are rented to the Agency
at the rates charged City departments. The City council chamber and
various other meeting rooms of the City are made available to the
Agency at no cost. The Agency reimburses the City for an amount
equal to the gross salary plus employee fringe benefits for all full-
time City employees utilized by the Agency. Incidental expenses and
the cost of part-time employees utilized by the Agency are reimbursed
based on actual direct and indirect cost rates. During the years
ended June 30,1977 and 1976 such costs and expenses amounted to
the following:
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Interest
Office space
Equipment usage
Salaries and fringe benefits
Other costs
1977
$166,071
4,680
483
106,381
16,863
$294.478
.!lli
$121,870
4,680
260
82,311
14,895
$224.016
In addition, the Agency purchases land from the City from time
to time to facilitate certain redevelopment plans. During 1977,
land purchased from the City amounted to $56,975. No land was pur-
chased from the City during 1976.
The agreement between the Agency and the City is currently
undergoing revision to more clearly define the Agency and City
responsibilities and obligations to each other. It is anticipated
that the revised agreement will contain the provision that no
interest will be charged to the Agency on government or private
source funds advanced to the Agency unless specifically designated
to be interest bearing by resolution of the Agency and the City
Council. If approved as anticipated, interest on certain City
advances would be retroactively eliminated. The effect would be
to reduce the excess of expenditures over revenue in fiscal year
1977 and 1976 by approximately $56,100 and $23,700, respectively,
and the fund deficit at June 30,1977 would have been $85,000
less.
NOTE 3 - DEPOSITS:
The Agency has entered an agreement for the sale of certain
land to a private redeveloper for the amount of $1,368,500.
Deposits represent amounts advanced by the redeveloper pursuant
to the contract. A portion of the subject land has not yet been
acquired by the Agency. If the Agency is unable to acquire the
land, the redeveloper has the right to cancel the contract and
obtain a refund of the amounts advanced. When the land has been
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acquired and conveyed to the redeveloper, the deposit will be
recognized as revenue. The cost of the land to the Agency could
significantly exceed the above indicated purchase price.
NOTE 4 - GRANT AWARD:
Effective June l, 1976 the Agency was awarded a technical as-
sistance grant of $60,000 under Title III, Section 30l(a) of the
Public Works and Economic Development Act of 1965, as amended, for
a feasibility analysis of a proposed urban improvement program.
At June 30, 1977 revenue earned under the terms of the grant
amounted to $54,813 leaving a balance of unearned grant funds of
$5,187. In addition, under the terms of the grant, the Agency was
obligated to incur in-kind expenditures of $20,000 related to the
feasibility analysis.
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