APFA2004/04/20ANAHEIM, CALIFORNIA- ANAHEIM PUBLIC FINANCING AUTHORITY
SPECIAL MEETING
APRIL 20, 2004
The Anaheim Public Financing Authority met in special session on April 20, 2004.
Present: Chairman Curt Pringle and Board Members: Tom Tait, Shirley McCracken, Richard
Chavez and Bob Hernandez.
Staff Present: City Manager David Morgan, City Attorney Jack White, Secretary Sheryll
Schroeder.
A copy of the agenda for the meeting of the Anaheim Public Financing Authority was posted on
April 16, 2004 at the outside City Hall bulletin board.
Chairman Pringle called the meeting of the Anaheim Public Financing Authority to order at 5:23
P.M. in the Council Chambers of the Anaheim City Hall, 200 South Anaheim Boulevard.
ADDITIONS/DELETIONS TO THE AGENDA: Staff requested Items 1 and 2 be removed from
the consent calendar and acted upon separately.
PUBLIC COMMENTS: None.
CONSENT CALENDAR ITEMS 1-3:
Items 1 and 2 were removed from Consent Calendar at the request of staff and would be acted
upon separately.
3. Approve minutes of the Financing Authority special meeting held March 30, 2004.
Board Member Hernandez moved to approve the Consent Calendar, seconded by Board
Member McCracken. Roll Call Vote: Ayes - 5; Chairman Pringle, Board Members: McCracken,
Tait, Hernandez and Chavez. Noes- 0. Motion Carried.
END OF CONSENT CALENDAR:
RESOLUTION NO. APFA 2004-2 RESOLUTION OF THE BOARD OF
DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY (I) authorizing the
issuance of not to exceed $15,000,000 aggregate principal amount of Water Revenue
Refunding Bonds of said Authority; (11) approving the forms and authorizing the
execution and delivery of an Indenture of Trust, an Installment Purchase Agreement,
sale documents and other related documents; (111) approving the execution and delivery
of an official statement; and (IV) approving certain actions in connection therewith.
City Manager David Morgan indicated Items 1 and 2 were to refinance bonds due to favorable
Iow interest rates and would affect some savings for the City.
Bill Sweeney, Finance Director, stated the overall net present value of savings would take into
account fees associated with the refinancing of the bonds. He reported in the case of the water
utility, the net value of savings would be roughly $912,000 and that figure reflected the fees and
the Iow interest rate over the remaining term of the bonds. Mr. Sweeney confirmed the decision
to take this action was based upon savings to be received with the lower interest rate.
ANAHEIM PUBLIC FINANCING AUTHORITY MINUTES
April 20, 2004
PAGE 2
Board Member Hernandez asked if the call dates for the two issues were being extended. Mr.
Sweeney noted in the case of the water bonds, the call date had already passed and the bonds
would be refunded at the next interest payment and no change would occur to the maturity
schedule. The bonds for the community facilities districts were not callable until September 1
stated Mr. Sweeney, and pursuant to IRS regulations, that date could be moved up 90 days to
close the transaction. There were 10 years remaining in the current bonds and under the new
bonds, there would be 10 years. Mr. Sweeney affirmed this action was strictly to take
advantage of the lower interest rates.
Board Member Hernandez inquired how the savings in water bonds would be applied. Mark
Mazak, Utility Finance & Administration Division, stated the savings would reduce the total
operation expense for the water by approximately $600,000 - $800,000 depending on the
interest rates in effect on the date of sale. Those funds, he remarked, would be used to
mitigate and help Anaheim rate users not to have water rate increases in the future.
Board Member Chavez moved to approve Resolution No. APFA 2004-2, authorizing the
issuance of not to exceed $15,000,000 Water Revenue Refunding Bonds, seconded by Board
Member McCracken. Roll Call Vote: Ayes - 5; Chairman Pringle, Board Members: McCracken,
Tait, Hernandez and Chavez. Noes - 0. Motion Carried
RESOLUTION NO. APFA 2004-3 RESOLUTION OF THE BOARD OF
DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY authorizing the
issuance of Anaheim Public Financing Authority Revenue Bonds (2004 Community
Facilities Districts Refinancing), Series A, in an aggregate principal amount of not to
exceed $21,200,000 authorizing the execution and delivery of an indenture, certain
refunding and bond purchase agreements, a Bond Purchase Agreement, a Continuing
Disclosure Agreement and an Escrow Agreement, authorizing the distribution of an
official statement in connection therewith and authorizing the execution of necessary
documents and certificates and related actions.
Board Member Tait indicated he lived in one of the Mello Roos districts identified in Item 2 and
would abstain from the vote due to a potential conflict of interest. Jack White, City Attorney,
commented that on the companion item for City Council agenda, there were three separate
resolutions and Board Member Tait would only be required to abstain on the resolution for the
Highlands community. Chairman Pringle requested the City Attorney research whether in the
future, the Financing Authority could separate resolutions for the community facilities districts as
was done for the City Council, especially since one of the board members taking action on such
matters lived in one of the districts and would be required to abstain. Mr. White concurred and
would research the matter.
Board Member Hernandez requested and received clarification on conflict of interest rules.
Motion by Board Member McCracken to approve Resolution No. APFA 2004-3, authorizing the
issuance of Anaheim Public Financing Authority Revenue Bonds (2004 Community Facilities
Districts Refinancing), Series A, in an aggregate principal amount of not to exceed $21,200,000,
seconded by Board Member Chavez. Roll Call vote: Ayes - 4; Chairman Pringle, Board
Members: Chavez, Hernandez, and McCracken. Noes - 0. Abstention - 1; Board Member
Tait. Motion Carried.
ANAHEIM PUBLIC FINANCING AUTHORITY MINUTES
April 20, 2004
PAGE 3
ADJOURNMENT:
There being no further business, Chairman Pringle adjourned the special meeting of Anaheim
Public Financing Authority at 5:34 P.M.
Sheryll Schroeder, MMC
Secretary, Anaheim Public Financing Authority