HomeMy WebLinkAbout10 OBLIGATION IMPROVEMENT BONDS 09-02-97 /;, j(� 1 N0. 10
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Inter-C o m ?'G' ' ;
DATE: August 27, 1997 S'C
ADOPTED RESOLUTION NO.
TO: William A. Huston, City Manager 97- 7/
FROM: Ronald A. Nault, Finance Director 97 t9 /' S
SUBJECT: CITY OF TUSTIN LIMITED OBLIGATION IMPROVEMENT BONDS ;L/U
REASSESSMENT DISTRICT NO. 95-1
SUMMARY: In February of 1996 the City! Council approved the
formation of the Tustin Financing ;'Authority to facilitate the
reorganization of Assessment Districts 85-1 and 86-2, and the
concurrent refinancing of the outstanding debt of the two
Districts into Reassessment District 95-1, made up of owner
occupied residential property; with fixed rate bond assessments, ;
and Reassessment District 95-2, made up of commercial and vacant !
parcels with variable rate assessments In keeping with the City!,
Council 's policy as stated in the East Tustin Development !
Agreement, as vacant parcels are developed as owner occupied
property, the variable rate debt is converted to
fixed rate debt for the remaining life of the original issue and
the parcels become part! of Reassessment District 95-1.
RECOMMENDATION:
1. Adopt Resolution No. 97-71 making changes in the amounts of
certain assessments in the City of Tustin Reassessment District
No. 95-2 (Tustin Ranch) and modifying the Reassessment Report
approving the 1997 Supplemental Report.
2 . Adopt Resolution No. 97-89 authorizing the issuance of not to
exceed $3, 700, 000 aggregate principal amount of City of Tustin
Limited Obligation Improvement Bonds, Reassessment District No.
95-1 (Tustin Ranch) , Fixed Rate Bonds, Group One, approving the
execution and delivery of a Second Supplemental Fiscal Agent
Agreement, a Bond Purchase Agreement and a Continuing Disclosure
Agreement (Series B) , and the preparation of an Official
Statement and other matters related thereto, approving forms of
the enclosed Second Supplemental Fiscal Agent Agreement; Bond
Purchase Agreement; Continuing Disclosure Agreement and
Preliminary Official Statement.
• .
3 . Adjourn the City Council meeting and reconvene as the Tustin
Public Financing Authority.
FISCAL IMPACT:
None.
DISCUSSION:
The City of Tustin Reassessment District 95-2 is supported by
variable rate debt, with liens applied to vacant and commercial
parcels within the District. The City Council 's policy as stated in
the East Tustin Development Agreement requires that as parcels are
developed as owner occupied residential property, the Developer will
convert the outstanding variable rate for said parcels in Assessment
District 95-2 to fixed rate debt and the parcels are transferred to
Assessment District 95-1. The Developer, The Irvine Company, has
requested that certain parcels with variable rate liens totalling
approximately $3 .7 million be converted to fixed rate and transferred
to Assessment District 95-1.
This is the first conversion from variable to fixed rate in the
Reassessment District. We have completed ten conversions prior to
the formation of the Reassessment Districts. After this conversion,
there will be approximately $37.8 million outstanding Reassessment
District 95-2 Bonds with maturities in 2011 and 2013 .
Ronal A. Nault
Finance Director
RAN:ts
Attachments
RAN6:COT Bords.Aug