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8.A. - Page 3 the bond structure that could require the issuance of more debt. A preliminary sources and uses of funds and savings report is attached to this report. The following is a list of the agreements that will be executed by the City Manager or Finance Director in connection with the sale of these bonds: 1. Fiscal agent agreement 2. Escrow agreement 3. Continuing disclosure agreement 4. Bond purchase contract This proposed refunding conforms with the City's Debt Management Policy (Administrative Policy No. 38). FUTURE ACTIONS No future action is required by the City Council. The bond sale is expected to take place January 18, the closing January 31 and the 2000 Bonds to be redeemed on March 1. ALTERNATIVES The Council is under no obligation to adopt the resolution before it tonight. If the Council declines to adopt the resolution the 2000 Bonds will remain outstanding and no savings will be realized. If refunding bonds are not sold, a deposit previously made with surplus special tax proceeds will pay for all non-contingent costs incurred in connection with structuring the refunding. FISCAL IMPACT If refunding bonds are sold, as it does currently, the City will incur periodic bond trustee fees, County tax collection fees, annual rebate calculation fees, audit expenses and direct and indirect City administrative costs associated with classifying properties within the District, calculating the annual special tax levies for taxable parcels within the District, and preparing and transmitting to the County a list of special tax levies to be placed on the secured tax roll. These costs will be recovered from the property owners from the proceeds of special taxes collected by the County. Based on its prior experience administering this District, the City has established an annual administrative expense budget of $25,000 (to increase at 2% annually) that will be funded from special taxes prior to the payment of debt service on the refunding bonds. The City is authorized to bill the District annually for expenses that exceed this budget after annual debt service on the refunding bonds has been satisfied. It is expected that there will be sufficient special tax proceeds to pay all annual administrative expenses.