HomeMy WebLinkAboutPOWERPOINT PRESENTATION - CFD NO. 2014-1 (ITEM #15)Agenda Item 15
City of Tustin Community
facilities District No. X014-1
(Tustin Legacy/Standard Pacific)
Resolution authorizing the Preparation and
Distribution of a Preliminary Official Statement
("POS") for the 2015 Special Tax Bonds
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Resolution Approving POS for CFD 2014-1
March 1, 2004 the City's Mello -Roos Goals &
Policies were adopted and staff were authorized to
form Community Facility Districts (CFDs) to develop
the former Marine Corps Air Station known as
Tustin Legacy
As of today, the City has formed five CFDs,
1 , 2006-1 , 2007-1 , 2013-1 and 2014-1
Tustin Legacy area that fund infrastructure
services
2004 -
in the
and/or
3
Resolution Approving POS for CFD 2014-1 continued:
The City's
Development
Disposition Agreement
("DDA") dated March 4,
2014 provides
for the
establishment of a CFD to provide for the
funding
of certain
facilities and
services for a
project
comprised
of 375 single-family
detached
units, a
focal
park,
and
other
neighborhood
amenities
Lev of special taxes that will cover backbone
faci ities and infrastructure and school district
facilities (Special Tax A) and services (Special Tax B)
such as maintenance of streets, sidewalks, parks
and public safety. Special Taxes A and B are based
on the newly constructed dwellings' square footage
and combined, do not exceed 2% of assessed value
0
Resolution Approving POS for CFD 2014-1 continued:
► Special Tax A is necessary to cover backbone facilities and
infrastructure and school district facilities within Tustin
Legacy
Special Tax B is necessary to cover services such as
maintenance of streets, sidewalks, parks and public safety
because the City only receives 3% of the I% basic property
tax levy within Tustin Legacy compared to an average of
10.5% collected citywide
The special tax levy commenced in Fiscal Year 2015-16
and each subsequent year following this fiscal year the tax
shall be increased by 2%
The proposed bonds include the financing of construction
of school district facilities for Tustin Unified School
District (TUSD) per Joint Community Facilities Agreement
1, 2015
5
Resolution Approving POS for CFD 2014-1 continued:
Prior City Council Actions related to CFD 2014-1
3/4/2014 - Council approves development agreement
5/6/2014 - Council adopted:
Resolution of Intention to Establish CFD 2014-1 and to levy
Special Taxes
Resolution of Intention to Incur Bonded Debt
6/17/2014 - Council:
Held Public Hearing on 5/6/2014 Resolutions
Adopted Resolutions to Establish CFD 2014-1, Declared
Necessity to Issue Debt Not to Exceed $29 million, and to
Conduct Special Election
Adopted Resolution declaring Results of Special Election and
Notice to Levy Special Taxes and adopted Special Tax
Ordinance
9/16/2014 - Council adopted Resolution of Issuance
M
Resolution Approving POS for CFD 2014-1 continued:
Staff recommends City Council:
Adopt Resolution 15-72 authorizing the preparation
and distribution of a POS and approving certain other
actions in connection therewith
The POS has been prepared by the City's Disclosure
Counsel, Quint and Thimmig and reviewed by City Staff
and the City's Finance Team. The Bonds are expected to
be offered to investors for sale pursuant to the POS
which contains specific information about CFD No.
2014-1 to enable potential investors to make an
informed decision about purchasing the Bonds
The POS was prepared pursuant to the City's adopted
Continuing Disclosure Procedures approved by the City
Council on December 16, 2014
Resolution Approving POs for CFD 2014-1 continued:
The POS details the current development status of
CFD No. 2014-1 and provides potential investors
with information related to Standard Pacific and
Brookfield Homes, the two builders constructing
homes within CFD No. 2014-1
To date 123 homes are under constructions by the two
builders in addition to the 12 models
112 homes are subject to contract with escrow closings
scheduled to begin in November
The POS provides the current appraised value of
the property located in CFD No. 2014-1 and
estimated absorption schedule to build out the
project
• The
Appraised
Value of the Project is $178,215,000
• The
estimated
Absorption of the Project
is less than 3 years
-N
Sample FY 15/16 Tax Bill
City of Tustin
Community Facilities District 2014-1
Tustin Legacy (Standard Pacific)
Fiscal Year 2015-16 Estimated Sample Tax Bill for a Developed Property
I. Home Prices and Combined Tax Rates:
Median Plan Size for each Product Type
Range of Home Sizes in Square Feet per RMA
Estimated Home Size (Info from Market Absorption Study 9-21-15)
Estimated Home Price (Info From Market Absorption Study 9-21-15)
Less Homeowner's Exemption
General Obligation Debt (1)
Ad -Valorem Tax Rate (1.00%)
TUSD 2012-1 Bond Series A (0.01406%)
TUSD 2008-1 Bond Series A (0.01079%)
TUSD 2008-1 Bond Series B (0.01006%)
TUSD 2008-1 Bond Series C (0.00952%)
TUSD 2002-1 Bond Series C (0.01127%)
TUSD 2002-1 Bond 2002 Series D (0.01046%)
TUSD 2002 Bond Series 20066 (0.00338%)
TUSD 2002 Bond Series 2003A (0.00001%)
Irvine Ranch Water District #213 (0.03800%) (2)
Irvine Ranch Water District #113 (0.03000%) (2)
Metropolitan Water District GO Bonds (0.00350%)
Subtotal GO Bond Debt
Special Assessments and Taxes
City of Tustin Services CFD
City of Tustin Proposed CFD 2014-1 Facilities Tax
Subtotal Special Assessments and Taxes
Total Annual Property Taxes (3)
Tustin Legacy (Standard Pacific)
Sheldon Huntley Crawford Stafford
Less than
2,570 to
3,210to
3,530 to
2,250
2,889
3,529
or Greater
2,171
2,807
3,412
3,831
$819,900
$948,000
$1,162,900
$1,214,553
$0
$0
$0
$0
$819,900
$948,000
$1,162,900
$1,214,553
$8,199.00
$9,480.00
$11,629.00
$12,145.53
$115.28
$133.29
$163.50
$170.77
$88.47
$102.29
$125.48
$131.05
$82.48
$95.37
$116.99
$122.18
$78.05
$90.25
$110.71
$115.63
$92.40
$106.84
$131.06
$136.88
$85.76
$99.16
$121.64
$127.04
$27.71
$32.04
$39.31
$41.05
$0.08
$0.09
$0.12
$0.12
$109.05
$126.08
$154.67
$161.54
$86.09
$99.54
$122.10
$127.53
$28.70
$33.18
$40.70
$42.51
$8,993.07
$10,398.13
$12,755.28
$13,321.83
$860.00
$1,164.00
$1,425.00
$1,522.00
$2,819.00
$3,822.00
$4,675.00
$4,997.00
$3,679.00
$4,986.00
$6,100.00
$6,519.00
$12,672.07
$15,384.13
$18,855.28
$19,840.83
1.546%1
1.623%
1.621%1
1.634%
6
Estimated Sources And Uses based
on current bond market conditions
Sources:
Bond Proceeds $ 27,045,000.00
Premium $ 676,963.40
$ 27, 721, 963.40
Uses:
Improvement Fund $ 24,683,014.20
Debt Service Reserve Fund $ 2,353,044.20
Cost of Issuance $ 380,000.00
Underwriter's Discount $ 275,905.00
Deposit to Administrative Expenses Fund $ 30,000.00
$ 27, 721, 963.40
Based on bond market conditions as of September 179 2015 for a non -rated CFD
partially developed located in Orange County. Estimated True Interest Cost is 4.88%
��, with final maturity in 2045. Market subject to change.
lul
Resolution Approving POS for CFD 2014-1 continued:
Following the Council approval, the proposed
bond issuance schedule is as follows:
October 15, 2015 - Bond Sale
November 5, 2015 - Bond Closing; Proceeds available