City Council

7. RESOLUTION AUTHORIZING THE COMMENCEMENT OF\nPROCEEDINGS IN CONNECTION WITH THE PROPOSED\nREFUNDING OF THE OUTSTANDING CITY OF TUSTIN COMMUNITY\nFACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD\nPACIFIC) SPECIAL TAX BONDS, SERIES 2015A; CITY OF TUSTIN\nCOMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN\nLEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS,\nSERIES 2015A; AND CITY OF TUSTIN COMMUNITY FACILITIES\nDISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES)\nSPECIAL TAX BONDS, SERIES 2015B, CONFIRMING THE\nAPPOINTMENT OF PROFESSIONAL SERVICES AND AUTHORIZING\nCERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Staff is\nseeking City Council approval to authorize the initiation of proceedings to\nissue bonds (the “2025 Refunding Bonds”) to refund the outstanding City\nof Tustin Community Facilities District No. 2014-1 (Tustin\nLegacy/Standard Pacific) Special Tax Bonds, Series 2015A; City of Tustin\nCommunity Facilities District No. 06-1 (Tustin Legacy/Columbus Villages)\nSpecial Tax Refunding Bonds, Series 2015A; and City of Tustin\nCommunity Facilities District No. 06-1 (Tustin Legacy/Columbus Village)\nSpecial Tax Bonds, Series 2015B (collectively, the “2015 CFD Bonds”), to\ntake advantage of lower interest rates to reduce the annual debt service\npayments and lower property owners’ special tax payments starting in\nFiscal Year 2025-2026.\nRecommendation: It is recommended that: THE CITY COUNCIL ADOPT\nCITY COUNCIL RESOLUTION 25-17 ENTITLED: RESOLUTION\nAUTHORIZING THE COMMENCEMENT OF PROCEEDINGS IN\nCONNECTION WITH THE PROPOSED REFUNDING OF THE\nOUTSTANDING CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT\nNO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC) SPECIAL TAX\nBONDS, SERIES 2015A; CITY OF TUSTIN COMMUNITY FACILITIES\nDISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES)\nSPECIAL TAX REFUNDING BONDS, SERIES 2015A; AND CITY OF\nTUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN\nLEGACY/COLUMBUS VILLAGES) SPECIAL TAX BONDS, SERIES\n2015B, CONFIRMING THE APPOINTMENT OF PROFESSIONAL\nSERVICES AND AUTHORIZING CERTAIN OTHER ACTIONS IN\nCONNECTION THEREWITH Fiscal Impact: The issuance of the 2025\nRefunding Bonds to refinance the 2015 CFD Bonds will have no financial\nimpact on the City, as all payments of principal and interest on the Bonds\nwill be paid solely from special tax assessments levied and collected from\nproperties located in the affected community facilities districts. The debt\nservice savings generated by the refinancing will benefit the districts’\nproperty owners. It is estimated that the refinancing of the 2015 CFD\nBonds will reduce annual debt service payments by approximately\n$575,000 per year, totaling over $5.1 million in net present value saving\nover the remaining term of the Bonds based on market conditions as of\nMarch 14, 2025.