July 16, 2024
2024 Special Tax Refunding Bonds CFD No. 2 (Amerige Heights)
Background – 2014 Bonds
In 2014, the City of Fullerton issued the $7,570,000 Community Facility District No. 2 (Amerige Heights) 2014 Special Tax Refunding Bonds (“2014 Bonds”) Secured by special tax revenues of CFD No. 2
$6,920,000 currently outstanding
Interest rates of 4.00% to 5.00%
Debt payments escalate at 2%
Final maturity of September 1, 2044
Can be redeemed without premium on any date
2 Recommended Refunding*
Issue the 2024 Bonds to refund the prior 2014 Bonds to achieve debt service savings 2024 Bonds:
Secured by special tax revenues of the CFD
Net present value savings of approximately $265,009 or 3.83% of principal amount of the 2014 Bonds Level Annual Payments (Remove Escalator)
Savings Increase Over Time
$0 (2025) to $1,700 (2044) per parcel1
Avg. annual per parcel savings of $7221
1 Based on 113 taxable residential parcels.
*Preliminary; subject to change. Savings summary reflects market conditions as of June 24, 2024. 3 RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF SPECIAL TAX REFUNDING BONDS AND APPROVING RELATED DOCUMENTS AND ACTIONS Authorize Issuance of 2024 Bonds; Appoint and Retain the Financing Team; Approve Financing Documents in Substantial Form; and Authorize Certain Other Actions in Connection Therewith Financing Documents:
Fiscal Agent Agreement
Escrow Agreement
Purchase Agreement
Preliminary Official Statement, including Continuing Disclosure Statement 4 Recommendation
Direct staff to refinance with a level debt structure; and Adopt Resolution No. 2024-XXX:
RESOLUTION NO. 2024-XXX – A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF SPECIAL TAX REFUNDING BONDS AND APPROVING RELATED DOCUMENTS AND ACTIONS 5