Chula Vista Municipal
Financing Authority
(CVMFA)
Item 7.1: Local
Agency Revenue
Refunding Bonds,
Series 2024
SARAH SCHOEN
CITY OF CHULA VISTA
DIRECTOR OF FINANCE
SUZANNE HARRELL
HARRELL & COMPANY
ADVISORS
FINANCIAL ADVISOR
LAWRENCE CHAN
STRADLING YOCCA CARLSON &
RAUTH
BOND COUNSEL
SHANE SPICER
SPICER CONSULTING GROUP
SPECIAL TAX CONSULTANT
JOSE VERA
RAYMOND JAMES
UNDERWRITER
Financing Team
In accordance with the City’s Debt Policy,
staff reviews and considers the refunding
(refinancing) of debt anytime potential
savings greater than 5% (NPV) can be
achieved.
Based on current market conditions it is
anticipated that four Community Facilities
Districts (CFD’s) would benefit from a
refunding at this time.
City’s Debt Policy Overview
NPV = Net Present Value
• The CVMFA Revenue Refunding Special Tax Bonds, 2013 Series (“The 2013 Authority Bonds”) currently qualifies for refunding. • NPV Savings are estimated at an average of 11.7 to 12.7% Refunding Opportunity
Refunding Opportunity
Authority Bonds were issued in 2013 to Purchase the following 5 CFD Bonds:
• 2013 CFD 06-I Improvement Area A Special Tax Bonds
• 2013 CFD 06-I Improvement Area B Special Tax Bonds
• 2013 CFD 07-I Special Tax Bonds
• 2013 CFD 08-I Special Tax Bonds
• 2013 CFD 2001-2 Special tax Bonds
2013 Bonds History
CFD Bonds Financed Various Public Improvements
Financing Overview
The City will
Issue 5 CFD
Special Tax
Refunding Bonds
The CVMFA will
Issue the Local
Agency Revenue
Refunding Bonds to
Purchase the 5 CFD
Bonds
The Local Agency
Revenue Refunding
Bonds will Refinance
the CVMFA Special Tax
Revenue Refunding
Bonds, Series 2013
Financing Overview (Continued)
CFD No. 06-I
IA A
CFD No. 06-I
IA B CFD No. 07-I CFD No. 08-I
CFD No.
2001-2 Total
2013 Bonds Escrow $13,469,000 $3,455,000 $12,786,000 $10,265,000 $4,646,000 $44,621,000 Costs of Issuance 133,000 30,000 126,000 83,000 47,000 419,000 2013 DS Reserve Fund (1,733,000) (428,000) (1,582,000) (1,328,000) (602,000) (5,673,000) Special Tax Available (955,000) (275,000) (708,000) (1,809,000) (344,000) (4,091,000) Net Requirement 10,914,000 2,782,000 10,622,000 7,211,000 3,747,000 35,276,000 Original Issue Premium (1,029,000) (287,000) (1,097,000) (666,000) (352,000) (3,431,000) Par Amount Issued* $9,885,000 $2,495,000 $9,525,000 $6,545,000 $3,395,000 $31,845,000 * Preliminary, subject to change
2013 Bonds 2024 Bonds*
Average Interest Rate: 5.20% Average Interest Rate: 2.75% Total Bonds outstanding: $44,425,000 Par amount of Bonds Issued: $31,845,000 Maturity Date: 09/01/2034 Maturity Date: 09/01/2033
Estimated NPV Savings: $8.5 Million Estimated NPV Savings: $5.37 Million *The numbers provide are estimates subject to change. Will be finalized at closing.
Refunding Analysis
District Name/Improvement Area Estimated
Net Present
Value Savings
Average
Annual
Savings Per
Property
Owner -
Attached
No. of
Property
Owners -
Attached
Average Annual
Savings Per
Property Owner
- Detached
No. of
Property
Owners -
Detached
CFD No. 06-I, IA-A (Eastlake – Woods, Vistas and Land Swap) 11.7% $80 598 $190 1,607 CFD No. 06-I, IA-B (Eastlake – Woods, Vistas and Land Swap) 12.7% $120 408 $160 191 CFD No. 07-I (Otay Ranch Village Eleven) 12.7% $125 617 $155 1,351 CFD No. 08-I (Otay Ranch Village Six) 11.8% $245 1,093 $315 444 CFD No. 2001-2 (McMillin – Otay Ranch – Village Six) 11.7% $130 213 $190 481 Totals: 12.12% $140 2,929 $202 4,074
Proposed Savings by District/Improvement Area
With this action, we are:
• Recommending that the City Council adopt resolutions authorizing the Issuance of 5 CFD Special Tax Refunding Bonds with a not-to- exceed combined total of $40,000,000.
• Recommending that the Board of Directors of the Chula Vista Municipal Financing Authority adopt a resolution authorizing the Issuance of its Local Agency Revenue Refunding Bonds, Series 2024, in a principal amount not-to-exceed $40,000,000.
Recommended Actions
Our Financing Team is in attendance and available to answer any questions that you may have.
Questions?