City Council

7. RESOLUTION AUTHORIZING THE COMMENCEMENT OF PROCEEDINGS IN CONNECTION WITH THE PROPOSED REFUNDING OF THE OUTSTANDING CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC) SPECIAL TAX BONDS, SERIES 2015A; CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS, SERIES 2015A; AND CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SPECIAL TAX BONDS, SERIES 2015B, CONFIRMING THE APPOINTMENT OF PROFESSIONAL SERVICES AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Staff is seeking City Council approval to authorize the initiation of proceedings to issue bonds (the “2025 Refunding Bonds”) to refund the outstanding City of Tustin Community Facilities District No. 2014-1 (Tustin Legacy/Standard Pacific) Special Tax Bonds, Series 2015A; City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) Special Tax Refunding Bonds, Series 2015A; and City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Village) Special Tax Bonds, Series 2015B (collectively, the “2015 CFD Bonds”), to take advantage of lower interest rates to reduce the annual debt service payments and lower property owners’ special tax payments starting in Fiscal Year 2025-2026. Recommendation: It is recommended that: THE CITY COUNCIL ADOPT CITY COUNCIL RESOLUTION 25-17 ENTITLED: RESOLUTION AUTHORIZING THE COMMENCEMENT OF PROCEEDINGS IN CONNECTION WITH THE PROPOSED REFUNDING OF THE OUTSTANDING CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC) SPECIAL TAX BONDS, SERIES 2015A; CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS, SERIES 2015A; AND CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SPECIAL TAX BONDS, SERIES 2015B, CONFIRMING THE APPOINTMENT OF PROFESSIONAL SERVICES AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Fiscal Impact: The issuance of the 2025 Refunding Bonds to refinance the 2015 CFD Bonds will have no financial impact on the City, as all payments of principal and interest on the Bonds will be paid solely from special tax assessments levied and collected from properties located in the affected community facilities districts. The debt service savings generated by the refinancing will benefit the districts’ property owners. It is estimated that the refinancing of the 2015 CFD Bonds will reduce annual debt service payments by approximately $575,000 per year, totaling over $5.1 million in net present value saving over the remaining term of the Bonds based on market conditions as of March 14, 2025.