City Council

12. PUBLIC HEARING AND APPROVAL BY THE TUSTIN FINANCING AUTHORITY AND THE CITY OF TUSTIN AS THE LEGISLATIVE BODY FOR THE COMMUNITY FACILITIES DISTRICTS OF THE ISSUANCE OF SPECIAL TAX REVENUE REFUNDING BONDS IN AN AMOUNT NOT TO EXCEED $63 MILLION TO REFUND THE COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC) 2015 SPECIAL TAX BONDS, SERIES 2015A AND COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES) SPECIAL TAX REFUNDING BONDS, SERIES 2015A AND SERIES 2015B On April 1, 2025, the City of Tustin ("City") authorized the initiation of proceedings to issue bonds (the "2025 Refunding Bonds") to refund its 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 Village) Special Tax Refunding Bonds, Series 2015A; and the City of Tustin Community Facilities District No. 06-1 (Tustin Legacy/Columbus Villages) 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 FY 2025-2026. To maximize savings, the 2025 Refunding Bonds will be issued and publicly sold by the Tustin Financing Authority ("Authority"), by pooling the underlying refunding bonds of each community facilities district. Recommendation: It is recommended that the City Council: 1. CONDUCT A PUBLIC HEARING TO CONSIDER THE ISSUANCE BY THE TUSTIN FINANCING AUTHORITY OF ITS SPECIAL TAX REVENUE REFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $63 MILLION TO POOL AND ISSUE DEBT TO FACILITATE THE REFUNDING OF THE 2015 CFD BONDS; 2. ADOPT RESOLUTION 25-37, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 06-1 (TUSTIN LEGACY/COLUMBUS VILLAGES), AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX REFUNDING BONDS, SERIES 2025 IN A PRINCIPAL AMOUNT NOT TO EXCEED $38 MILLION AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH; AND 3. ADOPT RESOLUTION 25-38, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF CITY OF TUSTIN COMMUNITY FACILITIES DISTRICT NO. 2014-1 (TUSTIN LEGACY/STANDARD PACIFIC), AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX REFUNDING BONDS, SERIES 2025 IN A PRINCIPAL AMOUNT NOT TO EXCEED $25 MILLION AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. It is recommended that the Board of Directors of the Tustin Financing Authority: 1. ADOPT RESOLUTION NO. 25-01 AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX REVENUE REFUNDING BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $63 MILLION AND APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Fiscal Impact: The 2025 Refunding Bonds will have no financial impact on the City's General Fund, as all payments of principal and interest on the 2025 Refunding Bonds will be paid solely from the special tax revenues levied and collected from properties located in the affected community facilities districts. All bond issuance costs will be paid from the proceeds of the Bonds. It is estimated that the refunding of the 2015 CFD Bonds will reduce annual debt service payments by approximately $485,000 per year, totaling over $3.6 million in net present value saving over the remaining term of the 2015 CFD Bonds based on market conditions as of April 30, 2025.