HomeMy WebLinkAboutC04 Subordinate Debt CertQuint & Thimmig LLP
$4,125,000
TUSTIN PUBLIC FINANCING AUTHORITY
Water Revenue Bonds, Series 2024
(Subordinate Lien)
RTIFICATE REGARDING SUBORDINATE OBLIGATIONS
2/7/24
C4
I. the undersigned Finance Director/Treasurer of the City of Tustin, California (the
"City"), being one of the officers of the City duly charged (by resolution of the City Council of
the City), with others, with the responsibility for the execution and delivery of an installment sale
agreement, dated as of February 1, 2024 (the "Installment Sale Agreement"), by and between the
Tustin Public Financing Authority (the "Authority") and the City, supporting the payment of the
Authority's $4,125,000 Water Revenue Bonds, Series 2024 (Subordinate Lien) (the "Bonds"), dated
as of the date hereof, hereby certify as follows:
(i) I have read Section 6.08(c) of that certain Indenture of Trust, dated as of February
1, 2020, as amended, by and between the City and The Bank of New York Mellon Trust Company,
N.A., as trustee (the "2020 Indenture"), which provides that the City may issue Subordinate
Obligations so long as:
Net Revenues, calculated on sound accounting principles, as shown by the books
of the City for the latest Fiscal Year or any more recent twelve (12) month period selected
by the City ending not more than sixty (60) days prior to the adoption of the resolution
pursuant to which instrument such Subordinate Obligations are issued or incurred, as
shown by the books of the City shall, after deducting all amounts required for the payment
of the Bonds and any Parity Obligations, have amounted to at least 1.0 times the sum of
the maximum annual debt service on all Subordinate Obligations outstanding
immediately subsequent to the incurring of such additional obligations. An allowance for
earnings arising from any increase in the charges made for service from the Enterprise
which has become effective prior to the incurring of such additional obligations but which,
during all or any part of such Fiscal Year, was not in effect, may be added in an amount
equal to 100% of the amount by which the Net Revenues would have been increased if
such increase in charges had been in effect during the whole of such Fiscal Year and any
period prior to the incurring of such additional obligations, as shown by the certificate or
opinion of a qualified independent consultant employed by the City.
(ii) Attached hereto as Exhibit A is a computation that evidences compliance with said
Section 6.08(c).
(iii) Capitalized terms used, but not otherwise defined, herein shall have the meanings
ascribed thereto in the 2020 Indenture.
Dated: February 14, 2024 CITY OF TUSTIN
i
By
ennifer King,
Finance Director/Treasurer
EXHIBIT A
SATISFACTION OF TEST TO ISSUE SUBORDINATE OBLIGATIONS
FY 2023-24
Gross Revenues
Fixed Charges
Consumption Charges
Fire Line Charges
Total Rate Revenues
Operating Revenues
Non -Operating Revenues
Total Revenues
Total Expenses
Net Revenues
Outstanding Bonds (Maximum Annual Debt Service)
Senior Bonds (Series 2016 and 2020)
Subordinate Bonds (Series 2024)
Coverage
Exhibit A
7,788,100
13,676,800
31,700
$21,496,600
500,000
551,000
$22,547,600
19,536,602
$3,010,998
$2,432,024
330,183
$2,762,207
1.09x