That the Utility Authority approve and adopt RESOLUTION NO. UA 2024-__ ENTITLED:  A RESOLUTION OF THE LA HABRA UTILITY AUTHORITY APPROVING THE INITIATION OF PROCEEDINGS TO REFINANCE THE OUTSTANDING LA HABRA UTILITY AUTHORITY WATER REVENUE BONDS, SERIES 2013A AND TO ENGAGE PROFESSIONAL SERVICES.

In October 2013, the La Habra Utility Authority issued $20,210,000 in Water Revenue Bonds, Series 2013A (the "Series 2013A Bonds"), to finance certain water system improvements and to refinance both the Authority's Series 2003 Bonds and a loan used for acquiring water rights. Currently, $14,500,000 of the principal amount of the Series 2013A Bonds remains outstanding.

Staff has consulted with the City's municipal advisor, Fieldman, Rolapp & Associates, Inc., and has determined that current bond market conditions are favorable for the issuance of refunding bonds to refund the outstanding Series 2013 Bonds. The proposed Refunding Plan includes refunding the remaining Series 2013A Bonds on a tax-exempt, current refunding basis, without extending the original final maturity date of November 1, 2043. Based on current market conditions, the estimated savings from this proposed refunding is approximately $1,535,327 over the remaining term of the bonds, equating to an average annual debt service savings during that time of approximately $80,719 per year. These estimated debt service savings will provide additional financial flexibility to the City's Water Fund.

Refunding Process and Next Steps:
It is anticipated that the refunding will take approximately three months to complete. The key milestones to complete the refunding are identified below, some of which will require Utility Authority review and approval at a future meeting as the refunding process moves forward.

Based on current market conditions, refunding the outstanding Series 2013A Bonds is expected to generate total savings of approximately $1,535,327 over the remaining life of the indebtedness. This equates to an estimated average annual savings of $80,719. These savings are calculated net of all refunding costs, which will be incorporated into the issuance expenses of the refunding bonds. The issuance costs will be covered using proceeds from the refunding bonds. The term of the refunding bonds will match the original maturity date of November 1, 2043, with no extension to the current repayment schedule.