HomeMy WebLinkAbout29B - RFP - CITY WIDE CREDIT RATINGREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JULY 7, 2015
TITLE:
REQUEST FOR PROPOSALS FOR A CITY
WIDE CREDIT RATING
{STRATEGIC PLAN NO. 4, 213}
CITY MANAGE
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
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❑ As Recommended
❑ As Amended
❑ Ordinance on 1 " Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For_,_,
CONTINUED TO
FILE NUMBER
Authorize Release for an Assessment and Proposals for a citywide credit rating.
DISCUSSION
The City continues to be on track in terms of its revenue streams and management of General
Fund expenditures. The City is on target to exceed total General Fund revenues projections by
approximately $3.9 million or 3 %. This reflects the strong growth in various economic segments
such as restaurants /dining and the sale of new automobiles. In addition, Santa Ana continues to
experience positive growth in property values and Business License Tax.
In terms of expenditures, City Departments continue to implement elements of innovation and
efficiency which has allowed them to evaluate their respective operations in order to streamline
existing processes through the use of technology resulting in projected lower expenditures of
approximately $3.3 million or 2.2 %. The combination of these positive revenue and expenditure
trends indicate the City is on target to achieve a projected year -end surplus totaling approximately
$10 - $12 million.
Given the City's current positive financial position that reflect 20% reserves of approximately $45
million, the city's success in refinancing two bond issuances, a low five percent unemployment
rate, and continued overall positive economic growth, the City is seeking an assessment and
proposals to attain a citywide credit rating from one of the three credit rating agencies — Moody's,
Fitch, or Standard & Poors. The City will seek proposals from the four financial advisory firms
approved by the City Council on January 21, 2014, for a two year period. These firms are Public
Financial Management Group (PFM), Fieldman Rolapp & Associates, First Southwest, and Urban
Futures, (UFI).
2913-1
Request for Proposals for a
Citywide Credit Rating
July 7, 2015
Page 2
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #4, City Financial Stability, Objective
#2 (Provide a reliable five -year financial forecast that ensures financial stability in accordance
with the strategic plan), Strategy B (Provide quarterly updates on the City's financial forecast to
ensure revenues and expenditures reflect the most up -to -date information and analysis).
FISCAL IMPACT
There is no fiscal impact associated with this item.
29B -2