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Home My WebLink About07 IMPROVMENT BONDS 08-16-99DATE: August 16, 1999 Inter-Com NO. 7 8-16-99 TO: FROM: SUBJECT: William A. Huston, City Manager Ronald A. Nault, Finance Director CITY OF TUSTIN LIMITED OBLIGATION IMPROVEMENT BONDS REASSESSMENT DISTRICT NO. 95-2 SUMMARY: In February of 1996 the City Council approved the formation of the Tustin Public 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 variabie 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 residential 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. This will be the third conversion to fixed rate under this Agreement. RECOMMENDATION: Adopt Resolution No. 99-65 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, therefore approving the Third Supplemental Reassessment Report. FISCAL IMPACT: None. DISCUSSION: The City of Tustin Reassessment District 95-2 is supported by variable rate debt, with assessment 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 $5 million be converted to fixed rate and transferred to Assessment District 95-1. The adoption of Resolution No. 99-65 will allow us to meet the County of Orange deadline to place assessments on the 1999/2000 tax roll. We will return to the City Council in October/November for adoption of bond conversion documents on schedule for a bond closing late November. The assessment we will apply at this time will be $600,000, the estimated first year debt service on the proposed $5 million bond conversion. This is the third conversion from variable to fixed rate in the Reassessment District. Net of this conversion, there will be approximately $28.6 million outstanding Reassessment District 95-2 Bonds with maturities in 2011 and 2013. Ronald A. Nault Finance Director RAN:ts Attachment RAN :ReassessmentDistnctAugust 1999StaffP, eP°r~.d oc 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 99-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN PROVIDING FOR THE INCLUSION ON THE TAX ROLL OF CERTAIN REASSESSMENTS IN THE CITY OF TUSTIN REASSESSMENT DISTRICT NO. 95-2 (TUSTIN RANCH) WHEREAS, the City Council (the "City Council") of the City of Tustin (the "City"), pursuant to the Municipal Improvement Act of 1913 (Division 12 of the California Streets and Highways Code) (the "Act"), by Resolution No. 86-81 adopted on June 16, 19S6. resolved its intention to form City of Tustin Assessment District No. 85-1 (,District 85-1") and to issue bonds to represent unpaid assessments therein; WHEREAS, the City Council, by Resolution No. 86-81. adopted on June 16, 1986, confirmed said assessments; WHEREAS, the City Council, pursuant to the Act, by Resolution No. 88-61, adopted on june 13, 1988, resolved its intention to form City of Tustin Assessment District No. 86-2 ("District 86-2") and to issue bonds to represent unpaid assessments therein; WHEREAS, the City Council, by Resolution No. 88-81. adopted on July 18, 1988, confirmed said assessments; WHEREAS, the City Council, by Resolution No. 95-118, adopted on November 20, 1995, conducted reassessment and refunding proceedings under the Refunding Act of 1984 for 1915 Improvement Act Bonds (Division 11.5 of the California Streets and Highways Code) for the City's Reassessment District 95-2 (Tustin Ranch) (the "Reassessment District"); WHEREAS, the City Council, pursuant to Resolution No. 96-10, adopted on January 15, 1996~ adopted and approved the reassessment report for the Reassessment District, dated January 15, 1996, and levied on the property within the Reassessment District the reassessments (the "Reassessments") as specified therein; WHEREAS, pursuant to a Fiscal Agent Agreement, dated as of February 1, 1996 (the "Original Fiscal Agent Agreement"), by .and between the City and State Street Bank and Trust Company of California, N.A. (the "Fiscal Agent"), the City issued its Limited Obligation Improvement Bonds, Reassessment District No. 95-2 (Tustin Ranch), Series A (the "Series A Bonds") in the aggregate principal amount of $41,500,000; WHEREAS, the Original Fiscal Agent Agreement was amended and supplemented pursuant to a First Supplemental Fiscal Agent Agreement, dated as of September 1, 1996, by and between the City and the Fiscal Agent, a Second Supplemental Fiscal Agent Agreement, dated as of November 1, 1997, by and between the City and the Fiscal Agent and a Th/rd Supplemental Fiscal Agent Agreement, dated as of November 1, 1998, by and bem;een the Ci~: and the Fiscal Agent (as so amended and supplemented, the "Fiscal Agent Agreement") (all capitalized terms used herein shall have the meanings ascribed thereto in the Fiscal Agent Agreement); DOCSLA 1:315591.1 5-5-GH 1-08/11/99 1 WHEREAS, the Series A Bonds were originally issued as Adjustable Rate Bonds; 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, portion of the Series to Fixed Rate Bonds; in accordance with the provisions of the Fiscal Agent Agreement, all or a A Bonds may be, and in certain circumstances are required to be, converted WHEREAS, certain of the Series A Bonds have previously been converted to Fixed Rate Bonds and, in accordance with the provisions of the Fiscal Agent Agreement, the City has received a notice of conversion that has the effect of requiring that an additional portion of the Series A Bonds be converted to Fixed Rate Bonds; WHEREAS, in accordance with the provisions of the Fiscal Agent Agreement, the Reassessments on all parcels of real property represented by Adjustable Rate Bonds, and interest thereon, are to be collected by direct billing of the owners of such parcels; WHEREAS, in accordance with the provisions of the Fiscal Agent Agreement, the Reassessments on parcels of real property designated by the City, pursuant to the Fiscal Agent Agreement, to represent Fixed Rate Bonds and Related Additional Bonds, if any, and interest thereon, are to be payable and collected in the same manner at the same time and in the same installments as the general taxes on real property are payabie; WHEREAS, the Fiscal Agent Agreement provides that the Treasurer shall, before the final date on which the Auditor will accept the transmission of the Reassessments for the parcels of real property designated by the City, pursuant to the Fiscal Agent Agreement, to represent Fixed Rate Bonds and Related Additional Bonds, if any, for inclusion on the next tax roll, prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the installments of such Reassessments, together with interest thereon, and the Continuing Costs of the Fixed Rate Bonds on the next secured tax roll of the County; and WHEREAS, there has been prepared and submitted to this meeting a report (the "Report") containing such data with respect to the Reassessments (the "Fixed Rate Reassessments") on parcels of real property designated or to be designated by the City, pursuant to the Fiscal Agent Agreement, to represent Fixed Rate Bonds and Related Additional Bonds, if any, and interest thereon; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN, as follows: Section 1. The Report is hereby approved and adopted. The Treasurer shall transmit to the Auditor the Report and such other data as the Auditor may require to include the installments of the Fixed Rate Reassessments, together with interest thereon, and the Continuing Costs of the Fixed Rate Bonds, as reflected in the Report, on the next secured tax roll of the County. Section 2. The officers and employees of the City are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper to accomplish the purposes of this Resolution. DOCSLA1:315591.1 5-5-GH1-08/11/99 -2- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Section 3. All actions heretofore taken by the officers and employees of the City in connection with or related to the actions contemplated by this Resolution, are hereby approved, confirmed and ratified. Section 4. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Tustin on August 16, 1999. Tracy Wills Worley Mayor ATTEST: Pamela Stoker City Clerk DOCSLA1:315591.1 5-5-GH1-08/11/99 -3-