AgdaPkt 2009-10-19 - Laserfiche WebLink

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7A that the State will be shifting property tax from local agencies). The purchase price paidPage 2 to the local agencies will equal 100% of the amount of the property tax reduction. All transaction costs of issuance and interest will be paid by the State of Califomia. Participating local agencies will have no obligation on the bonds and no credit exposure to the State. If the City sells its Prop 1A Receivable under the Prop 1A Securitization Program, California Communities will pledge the City's Prop 1A Receivable to secure the repayment of a corresponding amount of the Prop 1A Bonds. The City's sale of its Prop 1 A Receivable will be irrevocable. Bondholders will have no recourse to the City if the State does not make the Prop 1A Repayment. The Resolution authorizing the sale of the Prop 1 A Receivable along with the other signature documents and legal opinions must be submitted to California Communities no later than November 6,2009. Proposition 1 A Program Sponsor California Statewide Communities Development Authority (California Communities) is a joint powers authority sponsored by the Califomia State Association of Counties and the League of California Cities. The member agencies of California Communities include approximately 230 cities and 54 counties throughout California. Benefits of Participation In the Proposition 1 A Securitization Program . Immediate cash relief - the sale of the City's Prop 1A Receivable will provide the City with 100% of its Prop 1A Receivable in two equal installments, on January 15, 2010 and May 3,2010. . Mitigates impact of 8% property tax withholding in January and May. Per ABX4 14 and ABX4 15 and the proposed clean-up legislation SB 67, the State will withhold 80/0 of property tax receivables due to cities, counties, and special districts under Prop 1 A. Bond proceeds are intended to be distributed to participating agencies to coincide with the dates that the State will be shifting property tax from local agencies. . All costs of financing borne by the State of California. The City will not have to pay any interest cost or costs of issuance in connection with it participation. . No obligation on Bonds. The City has no obligation with respect to the payment of the bonds, nor any reporting, disclosure or other compliance obligations associated with the bonds. Proceeds of the Sale of the City's Proposition 1A Receivable Upon delivery of the Prop 1A Bonds, Califomia Communities will make available to the City its fixed purchase price, which will equal 100% of the local agency's Prop 1A Receivable. These funds may be used for any lawful purpose of the City and are not restricted by the program. Proposed Purchase and Sale Agreement 1. Provides for the sale of the Prop 1 A Receivable to California Communities. 2. Contains representations and warranties of the City to assure California Communities that the Prop 1 A Receivable has not been previously sold, is not encumbered, that no litigation or other actions is pending or threatened to disrupt the transaction and that this is an armis length I~rue sale" of the Prop 1A Receivable. 3. Provides mechanics for payment of the Purchase Price.