City Council

12. PUBLIC HEARING AND APPROVAL BY THE TUSTIN FINANCING\nAUTHORITY AND THE CITY OF TUSTIN AS THE LEGISLATIVE BODY\nFOR THE COMMUNITY FACILITIES DISTRICTS OF THE ISSUANCE\nOF SPECIAL TAX REVENUE REFUNDING BONDS IN AN AMOUNT\nNOT TO EXCEED $63 MILLION TO REFUND THE COMMUNITY\nFACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD\nPACIFIC) 2015 SPECIAL TAX BONDS, SERIES 2015A AND\nCOMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN\nLEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS,\nSERIES 2015A AND SERIES 2015B On April 1, 2025, the City of Tustin\n("City") authorized the initiation of proceedings to issue bonds (the "2025\nRefunding Bonds") to refund its outstanding City of Tustin Community\nFacilities District No. 2014-1 (Tustin Legacy/Standard Pacific) Special Tax\nBonds, Series 2015A, City of Tustin Community Facilities District No. 06-1\n(Tustin Legacy/Columbus Village) Special Tax Refunding Bonds, Series\n2015A; and the City of Tustin Community Facilities District No. 06-1\n(Tustin Legacy/Columbus Villages) Special Tax Bonds Series 2015B\n(collectively, the "2015 CFD Bonds") to take advantage of lower interest\nrates to reduce the annual debt service payments and lower property\nowners’ special tax payments starting in FY 2025-2026. To maximize\nsavings, the 2025 Refunding Bonds will be issued and publicly sold by the\nTustin Financing Authority ("Authority"), by pooling the underlying\nrefunding bonds of each community facilities district.\nRecommendation: It is recommended that the City Council: 1. CONDUCT\nA PUBLIC HEARING TO CONSIDER THE ISSUANCE BY THE TUSTIN\nFINANCING AUTHORITY OF ITS SPECIAL TAX REVENUE\nREFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT\nTO EXCEED $63 MILLION TO POOL AND ISSUE DEBT TO FACILITATE\nTHE REFUNDING OF THE 2015 CFD BONDS; 2. ADOPT RESOLUTION\n25-37, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF\nTUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY\nOF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN\nLEGACY/COLUMBUS VILLAGES), AUTHORIZING THE ISSUANCE OF\nITS SPECIAL TAX REFUNDING BONDS, SERIES 2025 IN A PRINCIPAL\nAMOUNT NOT TO EXCEED $38 MILLION AND APPROVING CERTAIN\nDOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN\nCONNECTION THEREWITH; AND 3. ADOPT RESOLUTION 25-38, A\nRESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN,\nCALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF\nTUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN\nLEGACY/STANDARD PACIFIC), AUTHORIZING THE ISSUANCE OF ITS\nSPECIAL TAX REFUNDING BONDS, SERIES 2025 IN A PRINCIPAL\nAMOUNT NOT TO EXCEED $25 MILLION AND APPROVING CERTAIN\nDOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN\nCONNECTION THEREWITH. It is recommended that the Board of\nDirectors of the Tustin Financing Authority: 1. ADOPT RESOLUTION NO.\n25-01 AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX REVENUE\nREFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT\nTO EXCEED $63 MILLION AND APPROVING CERTAIN DOCUMENTS\nAND TAKING CERTAIN OTHER ACTIONS IN CONNECTION\nTHEREWITH Fiscal Impact: The 2025 Refunding Bonds will have no\nfinancial impact on the City's General Fund, as all payments of principal\nand interest on the 2025 Refunding Bonds will be paid solely from the\nspecial tax revenues levied and collected from properties located in the\naffected community facilities districts. All bond issuance costs will be paid\nfrom the proceeds of the Bonds. It is estimated that the refunding of the\n2015 CFD Bonds will reduce annual debt service payments by\napproximately $485,000 per year, totaling over $3.6 million in net present\nvalue saving over the remaining term of the 2015 CFD Bonds based on\nmarket conditions as of April 30, 2025.