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Agenda Item
ASR
Control 23-000183 |
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MEETING
DATE: |
03/28/23 |
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legal entity taking action: |
Community
Facilities District No. 2004-1 |
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board of supervisors district(s): |
5 |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
Louis
McClure (714) 834-5999 |
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Kim
Engelby (714) 834-3530 |
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Subject: Approval of Ladera Ranch Community
Facilities District 2004-1 Refunding
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ceo CONCUR |
County Counsel Review |
Clerk of the Board |
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Concur |
Approved
Resolution to Form |
Discussion |
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4/5
Vote |
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Budgeted: No |
Current Year
Cost: See Financial
Impact Section |
Annual Cost: See Financial Impact Section |
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Staffing Impact: |
No |
# of Positions: |
Sole Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 10/4/2022 #14, 1/14/2014 #16,
12/21/2004 #71 |
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RECOMMENDED
ACTION(S):
The Board of Supervisors, acting as
the legislative body of Community Facilities District No. 2004-1:
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1. |
Adopt the
attached resolution of the Board of Supervisors of the County of Orange,
acting as the legislative body of Community Facilities District No. 2004-1 of
the County of Orange (Ladera Ranch), authorizing the issuance of its 2023
Special Tax Refunding Bonds in a principal amount not to exceed $38,000,000
and approving certain documents and taking certain other actions in
connection therewith. |
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2. |
Direct the
Orange County Auditor-Controller to increase appropriations and revenues,
pursuant to Government Code Section 29130 as follows: (Requires 4/5 vote) |
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Fund |
Budget
Ctrl. |
Unit |
Object |
Description |
Amount |
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530 |
530 |
5300 |
1900 |
Cost of Issuance |
334,200 |
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530 |
530 |
5300 |
4700 |
Payment to
Refunding |
36,390,800 |
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530 |
530 |
5300 |
7820 |
Premium on Bonds |
4,100,000 |
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530 |
530 |
5300 |
7840 |
Bond Proceeds |
32,625,000 |
SUMMARY:
Approval of the recommended actions
will allow the County Executive Office to refund the bonds within Community
Facilities District No. 2004-1 to generate savings in debt service and special
taxes that will benefit the property owners within the district.
BACKGROUND
INFORMATION:
Community Facilities District No.
2004-1 (CFD 2004-1) is the sixth and final phase of Ladera Ranch, a planned
community located in the unincorporated southeast portion of the County. CFD
2004-1 is comprised of 774 single-family homes and 229 custom home lots on
approximately 640 acres. CFD 2004-1 is
substantially built out with 999 out of 1,003 parcels individually owned. On December 21, 2004, the Board of
Supervisors (Board) approved the issuance of Special Tax Bonds for CFD 2004-1,
in the amount of $75.6 million. The
Special Tax Bonds were issued to pay the costs of constructing and acquiring
public facilities. Due to favorable
market conditions, On January 14, 2014, the Board approved the issuance of
refunding bonds for debt service savings.
Two series of refunding bonds were issued, the Series A bonds (2014
Series A Bonds) in an outstanding amount of $36.5 million and the Series B
bonds in the outstanding amount of $14.2 million. The Series A Bonds will be callable with no
premium on or after August 15, 2023.
The proposed 2023 bonds (Series
2023 Bonds) will be used to refund the 2014 Series A Bonds for a reduction in
debt service which reduces the special taxes paid by the property owners within
CFD 2004-1. The Series B bonds are not
callable and will remain outstanding and on parity with the Series 2023
Bonds. The estimated net present value
savings from the refunding is approximately 11.5 percent or $4.2 million. This translates to an estimated average
annual per parcel savings of $560 for taxpayers.
The Series 2023 Bonds are expected
to be publicly offered in the estimated amount of $32.6 million and will be
secured solely from the special taxes levied against property in CFD
2004-1. The estimated true interest cost
is 3.27 percent. The not to exceed
amount in the recommended action provides flexibility should market conditions
change. The final maturity of the
bonds is August 15, 2034. The assessed
value-to-lien including the Series 2023 Bonds and overlapping debt is 27 to
1. As of February 2023, delinquencies
were 3 percent based on first installment delinquencies only. Delinquencies are expected to decrease by the
time the second installment is due. In
addition, CFD 2004-1 participates in the County’s Teeter Plan and receives 100
percent of the property tax due in exchange for the penalty revenue.
The County made a credit
presentation to S&P Global Ratings on March 15, 2023 and expects to receive
a rating prior to the pricing of the Series 2023 Bonds in April.
The Public Financing Advisory
Committee (PFAC) and the Board approved this refunding in concept at their
September 15, 2022 and October 4, 2022 meetings respectively. PFAC approved recommendation of this
financing at its meeting of March 9, 2023.
FINANCIAL
IMPACT:
The reduction in debt service from
the refunding will save property owners within CFD 2004-1 an estimated average
annual savings per parcel of $560. The
recommended action will provide appropriations for this transaction in Budget
Control 530.
STAFFING
IMPACT:
N/A
ATTACHMENT(S):
Attachment
A - Resolution Authorizing Issuance
Attachment B - Preliminary Official Statement
Attachment C - Bond Purchase Agreement
Attachment D - Continuing Disclosure Certificate
Attachment E - Escrow Agreement
Attachment F - Paying Agent Agreement
Attachment G - Cost of Issuance Agreement
Attachment H- Government Code Section 29130