TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
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Community Facilities District No. 06-1 Del Rio Public Improvements 2026 Special Tax Refunding Bonds
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2. SUMMARY
The District proposes to issue 2026 Special Tax Refunding Bonds to refund its outstanding 2015 Special Tax Refunding Bonds (the "2015 Bonds"). Staff recommends adoption of the attached Resolution authorizing the issuance of the 2026 Bonds and approving related financing documents. The refunding will only proceed if it achieves a minimum net present value savings of 3%, with all savings used to reduce annual special taxes for property owners within the District. Pursuant to the Resolution, the principal amount of the 2026 Bonds will not exceed $20,000,000.
3. RECOMMENDED ACTION
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Adopt Resolution No. 11701. A Resolution of the City Council of the City of Orange, acting as the Legislative Body of City of Orange Community Facilities District No. 06-1 (Del Rio Public Improvements), authorizing the issuance of its 2026 Special Tax Refunding Bonds and approving certain documents and taking certain other actions in connection therewith.
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4. FISCAL IMPACT
The issuance and sale of the 2026 Bonds to refinance the outstanding 2015 Bonds is not a direct obligation of the City. Neither the faith and credit nor the taxing power of the City, the State of California, or any political subdivision thereof other than the District is pledged to the payment of the 2026 Bonds. The 2026 Bonds are payable solely from Special Taxes levied on properties within the District. The refinancing will only proceed if it generates a minimum net present value savings of 3%. Any savings achieved through the refinancing will be passed through to property owners within the District through a reduction in the annual Special Tax levy. All issuance costs will be paid from bond proceeds.
5. STRATEGIC PLAN GOALS
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