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<br />6.2C <br />. All costs of financing borne by the State of California. The District will not have toPage 3 <br />pay any interest cost or costs of issuance in connection with it participation. <br />. No obligation on Bonds. The District has no obligation with respect to the payment <br />of the bonds, nor any reporting, disclosure or other compliance obligations <br />associated with the bonds. <br /> <br />Proceeds of the Sale of the District's Proposition 1A Receivable <br />Upon delivery of the Prop 1 A Bonds, California Communities will make available to the <br />District its fixed purchase price, which will equal 1000/0 of the local agency's Prop 1A <br />Receivable. These funds may be used for any lawful purpose of the District and are not <br />restricted by the program. <br /> <br />Proposed Purchase and Sale Agreement <br />1. Provides for the sale of the Prop 1 A Receivable to California Communities. <br />2. Contains representations and warranties of the District to assure California <br />Communities that the Prop 1A Receivable has not been previously sold, is not <br />encumbered, that no litigation or other actions is pending or threatened to disrupt the <br />transaction and that this is an arm's length "true sale" of the Prop 1A Receivable. <br />3. Provides mechanics for payment of the Purchase Price. <br />4. Contains other miscellaneous provisions. <br /> <br />ALTERNATIVES <br />Should the Council elect not to participate in the Prop 1 A Securitization Program the <br />District will lose $52,000 in property taxes this year and absent any other Council action <br />will experience a concurrent reduction in the District's reserves. These funds will be <br />paid back by June 30, 2013 with interest (20/0 per year). <br /> <br />FISCAL IMPACT <br />Participating in the program will enable the District to completely offset the loss of the <br />$52,000 of property taxes that the State will be shifting from the District this year. <br /> <br />33;(~ <br /> <br />Brian Ponty <br />Director of Finance <br /> <br />Peter Ingra~ <br />City Manager <br /> <br />..,) <br /> <br />~ <br /> <br />ATTACHMENTS <br />1. Resolution approving the District's participation in the State's Proposition 1 A <br />Securitization Program <br />2. Proposition 1 A Sale and Purchase Agreement <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br />