Public Finance Authority
AGENDA REPORT
Date: January 28, 2026
To: Honorable Chairman and Board of Directors
From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Director of Finance
Subject: Presentation of the 2025 Annual Report for the Public Finance Authority
BACKGROUND
The Public Finance Authority (PFA) was established pursuant to a Joint Exercise of Powers Agreement dated November 4, 1998, by and between the City of Camarillo (the “City”) and the Camarillo Sanitary District (the “District”) in accordance with the provisions of the Joint Exercise of Powers Act, consisting of Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Joint Powers Act”). The members of the City Council comprise the PFA’s Board of Directors. The PFA has no independent staff and consequently is dependent upon the City’s officers and employees to administer the day-to-day activities on its behalf. The PFA’s original purpose was to issue lease revenue bonds in order to combine and refund three existing bonds to take advantage of favorable interest rates. The PFA has subsequently been used as a bond issuer in other bond issues, most recently in 2019, for the Water Revenue Bonds, Series 2019.
In 2003, the PFA issued $8,930,000 in Lease Revenue Bonds to pay the matching costs of a new library. The City received a grant of $15.6 million from the State of California which required a certain match. The library opened on March 31, 2007. The City leased the City Hall property to the PFA to facilitate the lease transaction and the repayment of the bonds. The 2003 Bonds have since been refunded and defeased with the funds from the issuance of the 2012 Lease Revenue Bonds described below.
On April 26, 2012, the PFA issued $7,630,000 in Lease Revenue Bonds to provide the funds to refund and repay the 2003 Lease Revenue Bonds and realize a net present value savings of approximately $876,000, with annual debt service savings ranging from $49,000 - $55,000 per year. The 2003 Bonds were repaid on May 2, 2012. The lease for the 2012 Bonds is on the City Hall property, with the ability to transfer the lease to another property in the future. Payment of principal and interest on the 2012 Bonds is made with
Presentation of the 2025 Annual Report
January 28, 2026
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the revenues generated by the lease, with the debt service for the bonds appropriated each year by the City of Camarillo based on the debt service schedule. These bonds were rated “AA+” by Standard and Poor’s (S & P) when the bonds were issued, with an underlying rating of “AA+” as well. To date, the ratings remain the same.
In November 2005, the PFA issued $23,000,000 in Wastewater Revenue Bonds to finance improvements to the Camarillo Sanitary District’s wastewater treatment system.
The 2005 Bonds were then refunded and defeased with the funds from the issuance of the 2015 Wastewater Refunding Bonds described below.
On July 21, 2015, the Camarillo Sanitary District issued, through the PFA, $18,900,000 in refunded revenue bonds, bearing interest rates ranging between 2% and 5% and maturing on June 1, 2036. The proceeds of the 2015 Bonds were used to redeem the 2005 Bonds and pay the cost of issuance relating to the 2015 Bonds. This advance refunding resulted in lowered interest rate with an economic gain (difference between the present value of the old and new debt service payments) of $2.0 million, as well as cash flow savings of approximately $2.8 million. Average annual debt service savings are $132,090 over the remaining life of the bonds. Payment of principal and interest on the 2015 Bonds is paid by the net revenues of the wastewater enterprise, derived primarily from charges for services earned by the District, with the debt service for the bonds appropriated each year by the Camarillo Sanitary District based on the debt service schedule.
In August 2019, the PFA issued $11,800,000 in Water Revenue Bonds to fund $12.7 million in costs to construct the North Pleasant Valley Desalter Facility. The Water Revenue Bonds have a proposed term of 20 years generating net proceeds of approximately $12,695,000. The Bonds were callable (which means the issuer has the option to redeem them from the investor prior to its maturity) after eight years without penalty. The annual debt service for the bonds is appropriated each year by the City of Camarillo based on the debt service schedule and debt service is paid by the net revenues of the water enterprise. These bonds were rated “AA+” by Standard and Poor’s (S & P) when the bonds were issued.
On August 7, 2023, the Water Revenue Bonds were defeased in order to allow the City to consider lower annual water rate increases by eliminating the requirement in the 2019 Bonds that the City maintain water rates sufficient to provide 125% debt service coverage in each fiscal year. There were no penalties for early repayment of the bonds and there are no further annual reporting requirements. The funds are held with the bond trustee in an escrow account and will be called on June 1, 2027 which is the first bond redemption date.
The day-to-day administration for all of the PFA bonds is accomplished through a trustee and City staff. U.S. Bank serves as Trustee for all of the PFA issues. Special District Financing and Administration (SDFA), along with City staff, prepare the required annual bond disclosure reports for all the PFA bond issues. The annual bond disclosure reports Presentation of the 2025 Annual Report
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are required to be filed by February 1 (2012 Lease Revenue Bonds and 2015 Wastewater Revenue Bonds) of each year with Electronic Municipal Market Access (“EMMA”), making the information available to the investment community. Although the annual disclosure reports are required to be filed with “EMMA”, as an additional disclosure option, the City contracts with Digital Assurance Corporation (DAC), who also places the annual disclosure reports on the DAC website at dacbond.com. This option makes the disclosure information more accessible to the investment community. It also allows the City to place its Annual Comprehensive Financial Report (ACFR) on the DAC site for investors to review.
DISCUSSION
Debt service payments for all issues have been made on schedule to date and no issues of note are being reported for the calendar year ended December 31, 2025. As of December 31, 2025, there was a total of $3,330,000 principal outstanding on the 2012 Lease Revenue (Library) Bonds and $11,760,000 principal outstanding for the 2015 Wastewater Refunding Bonds. The 2012 Lease Revenue (Library) Bonds are scheduled to be paid in full in December 2033 and the 2015 Wastewater Refunding Bonds are scheduled to be paid in full in June 2036.
This represents the annual report for the Camarillo Public Finance Authority (PFA) for calendar year 2025.
FISCAL IMPACT
There is no budget impact as a result of this action.
RECOMMENDATION
Receive and file.
ATTACHMENTS
None
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None