HomeMy WebLinkAboutPOWERPOINT PRESENTATION - COMMUNITY FACILITIES DISTRICT NO. 06-1 BONDS (ITEM #5)City of Tustin Community Facilities
District Na. 06-1 (Tustin
Legacy/Columbus Villages)
Resolution Authorizing the Issuance of Bonds
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HISTORY
Zone 1- Columbus Square
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November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 06-1
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
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CFD 06-1 continued:
CFD 06-1 was formed in 2007 pursuant to the
provisions of the Mello -Roos Act and was authorized to
issue up to $65 million principal amount of bonds to
finance the acquisition of public improvements within
Zone 1 (Columbus Square) and Zone 2 (Columbus
Grove) of the District
On September 6, 2007, the District issued $53.570
million City of Tustin Community Facilities District No.
06-1 (Tustin Legacy/Columbus Villages) Special Tax
Bonds, Series 2007A (the "2007 Bonds )
On November 179 2010, the District issued $1.675
million City of Tustin Community Facilities District No.
06-1 (Tustin Legacy/Columbus Villages) Special Tax
Bonds, Series 2010 (the "2010 Bonds")
November 3, 2015
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Resolution Authorizing the Issuance of Bonds for CF® 06-1 continued:
To date the District has issued $55.245 million
out of the authorized $65 million, thus having
additional bonding authority of $9.755 million
Due to favorable interest rates, the District
wants to issue a series of special tax bonds to
refund the Series 2007A and the Series 2010
Bonds as well as another series of special tax
bonds in order to provide financing for
approved facilities not yet completed
November 3, 2015 6
Resolution Authorizing the Issuance of Bonds for CFD 06-1 continued:
All of the 1,301 residential units in the District have been
built and sold and 3 residential units have prepaid their
special taxes used to pay debt service on the bonds being
refunded
The proposed Bonds will mature in 2039 (same final
maturity as the refunded bonds) and are expected to have
an initial principal amount of $ 54.240 million and net $2.5
million for facilities.
November 3, 2015 7
Resolution Authorizing the Issuance of Bonds for CFD 06-1 continued:
Prior City Council Actions and Activities related to CFD 06-1
8/18/2015 - Council approved amendment to
fiscal agent agreement
9/15/2015 -Council authorized commencement of
proceedings for the issuance of special tax
refunding bonds and appointed the finance team
10/28/2015 -Standard & Poor'
rating with a stable outlook to
Bonds; District solicited bond
reserve fund surety bids
s assigned BBB+
the Series 2015
insurance and
November 3, 2015
-N
Resolution Authorizing the Issuance of Bonds for CFD 06-1 continued:
Staff recommends City Council:
Adopt Resolution 15-75 authorizing the issuance of
Bonds and approving a Fiscal Agent Agreement, Escrow
Agreement and POS and certain other actions in
connection with the issuance of the bonds
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. 06-1
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
November 3, 2015
9
Resolution Authorizing the Issuance of Bonds for CFD 06-1 continued:
The POS details
of CFD No.
investors with
zones within th
assessed value
06-1
the current development status
06-1 and provides potential
information related to the two
e District as well as the current
of the property located in CFD
Following the Council approval, the proposed
bond issuance schedule is as follows:
November 179 2015 -Bond Sale
December 15, 2015 -Bond Closing
November 3, 2015 10