HomeMy WebLinkAbout75C - PH TEFRA ISSUANCE BONDSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
JULY 7, 2008
TITLE:
TEFRA ON ISSUANCE OF TAX EXEMPT
BONDS FOR CHARTER PUBLIC SCHOOL
FACILITY ANDS RESOLUTION EXECUTING
JOINT POWERS AGREEMENT AND
APPROVING THE ISSUANCE OF BONDS
CITY MANAGER
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 151 Reading
^ Ordinance on 2"d Reading
^ Implementing Resolution
^ Set Public Hearing For_
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
1) Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing
in consideration of the issuance of tax exempt bond financing by the
California Municipal Finance Authority on behalf of the Orange County
Educational Arts Academy, a public charter school, for the purpose of
the acquisition, construction, and improvement of property located at
825 North Broadway, Santa Ana.
2) Adopt a resolution authorizing the execution of a joint powers
agreement with the California Municipal Finance Authority (Authority)
and approve the issuance of revenue bonds by the Authority in an
amount not to exceed $11,500,000 for the purpose of acquisition,
construction, and improvement of property located at 825 North
Broadway, Santa Ana.
DISCUSSION
The Orange County Educational Arts Academy (OCEAA), a public charter
school, is seeking to purchase the building they currently occupy at 825
North Broadway, Santa Ana. The public school facility is 43,400 sq.ft
building with 24 classrooms, kitchen, and cafeteria. It provides
instruction to approximately 500 students from kindergarten thru eighth
grade.
In order to purchase and gain favorable tax exempt financing, OCEAA has
requested the assistance of the California Municipal Finance Authority
(Authority). The Authority, which was established in 2004, was formed to
assist local governments and non-profit organizations and businesses with
the issuance of taxable and tax exempt bonds with the goal to promote
economic, cultural, and community development. To date over 75
municipalities are members of the Authority.
However, in order for the Authority to have the authorization to serve as
the issuer of the bonds, the City of Santa Ana must become a member of
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the Authority, since the subject facility resides within the boundaries
of the city, and approve the issuance of the bonds. In addition, a public
hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) must
be conducted by the local jurisdiction. The hearing provides an
opportunity for the public to support or protest such action to be taken.
The bonds to be issued by the Authority are the sole responsibility of
the borrower. The City has no financial or legal liability for the
project or repayment of the bonds and does not constitute any type of
indebtedness for the City. In addition, there are no costs to the City
for membership to the Authority.
FISCAL IMPACT
There is no fiscal impact to the City.
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
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jwf 6/20/2008
RESOLUTION NO. 2008-
RESOLUTION APPROVING, AUTHORIZING, AND DIRECTING
EXECUTION OF A JOINT EXERCISE OF POWERS AGREEMENT
RELATING TO THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
AND APPROVING THE ISSUANCE OF REVENUE BONDS BY THE
AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION,
CONSTRUCTION AND IMPROVEMENT OF CERTAIN FACILITIES FOR
THE BENEFIT OF ORANGE COUNTY EDUCATIONAL ARTS
ACADEMY.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. Pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "Act"), certain public agencies (the "Members")
have entered into a Joint Exercise of Powers Agreement Relating to the
California Municipal Finance Authority, effective as of January 1, 2004 (the
"Agreement") in order to form the California Municipal Finance Authority
(the "Authority"), for the purpose of promoting economic, cultural and
community development, and in order to exercise any powers common to
the Members, including the issuance of bonds, notes or other evidences of
indebtedness; and,
B. The City of Santa Ana (the "City"), has determined that it is in the public
interest and for the public benefit that the City become a Member of the
Authority in order to facilitate the promotion of economic, cultural and
community development activities in the City, including the financing of
projects therefor by the Authority; and,
C. There is now before this City Council (the "City Council") the form of the
Agreement; and,
D. The Agreement has been filed with the City, and the members of the City
Council, with the assistance of its staff, have reviewed said document;
and,
E. The Authority is authorized to issue and sell revenue bonds for the
purpose, among others, of financing or refinancing the construction of
capital projects; and,
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