Resolution No. 4119
1 STATE OF CALIFORNIA ) RESOLUTION NO. 4119
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY OF SAN JACINTO, CALIFORNIA,
AUTHORIZING THE ISSUANCE OF BONDS OF CITY OF SAN JACINTO COMMUNITY FACILITIES DISTRICT NO. 2002-1 (RANCHO SAN
JACINTO, PHASE 2) DESIGNATED 2026 SPECIAL TAX REFUNDING
BONDS FOR THE PURPOSE OF DEFEASING AND REFUNDING THE
OUTSTANDING BONDS OF SAID DISTRICT, APPOINTING FISCAL
AGENT, APPROVING THE FORM OF A FISCAL AGENT AGREEMENT
AND AN ESCROW DEPOSIT AND TRUST AGREEMENT AND
AUTHORIZING NEGOTIATION OF TERMS OF THE SALE OF SAID
BONDS, APPROVING A PRELIMINARY OFFICIAL STATEMENT,
AUTHORIZING PREPARATION OF A FINAL OFFICIAL STATEMENT
AND APPROVING OTHER RELATED DOCUMENTS AND ACTIONS
WHEREAS, bonds were previously issued for the City of San Jacinto Community Facilities District No. 2002-1 (Rancho San Jacinto, Phase 2), County of Riverside, State of California (the “District”) which were designated as the City of San Jacinto Community Facilities District No. 2002-1 (Rancho San Jacinto, Phase 2), 2016 Special Tax Refunding Bonds and are outstanding in the aggregate principal amount of $11,455,000 (the “Prior Special Tax Refunding Bonds”); and
WHEREAS, the City Council (the “City Council”) of the City of San Jacinto (the “City”) has been advised that it may be possible to issue bonds of the District for purpose of refunding the Prior Special Refunding Tax Bonds, at interest rates that will result in a net present value savings of 3% or more from the interest rates on the currently outstanding Prior Special Refunding Tax Bonds and to thereby provide savings to the property owners in the District through reduced special taxes that will be levied on parcels of taxable property in the District to pay the principal of and interest on the refunding bonds (the “Refunding Bonds”); and
WHEREAS, the Refunding Bonds of the District shall be designated “City of San Jacinto Community Facilities District No. 2002-1 (Rancho San Jacinto, Phase 2) 2026 Special Tax Refunding Bonds;” and
WHEREAS, payment of the principal of and interest on the Prior Special Tax Refunding Bonds are secured by special taxes that are levied on parcels of taxable property in the District (the “Special Taxes”); and
WHEREAS, payment of the principal of and interest on the Refunding Bonds that may be issued by the District will be secured by such Special Taxes; and WHEREAS, pursuant to Section 53345.8 of the California Government Code, the City Council, as the legislative body of the District, may sell bonds of the District only if it determines prior to the award of the sale of such bonds that the value of the real property Resolution No. 4119
2 that would be subject to the Special Tax to pay debt service on the bonds will be at least three (3) times the principal amount of the bonds to be sold and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the MelloRoos Community Facilities Act of 1982 (Section 53311, et seq., of the California Government Code) or a special assessment levied on property within the District; and WHEREAS, NBS Government Finance Group, the special tax consultant to the City, has determined, based on a review of the Riverside County Assessor’s Assessment Roll for fiscal year 2025-26, that the total assessed value of taxable property in the District is $327,658,982 including all taxable property within the District; and WHEREAS, upon the issuance of the Refunding Bonds of the District and the deposit of the appropriate portion of the proceeds of the sale of such Refunding Bonds in the redemption fund, such outstanding Prior Special Tax Refunding Bonds will be defeased and the property in the District will no longer be subject to the levy of special taxes to pay debt service on such outstanding Prior Special Tax Refunding Bonds, but will instead be subject to the levy of special taxes to pay debt service on the Refunding Bonds; and
WHEREAS, if the Refunding Bonds of the District are issued and sold in an aggregate principal amount that does not exceed $11,455,000, the value of the parcels of real property within the District that will be subject to the levy of the Special Taxes will be more than three (3) times the principal amount of such Refunding Bonds and any other parity bonds of the District; and
WHEREAS, there has also been made available to the City Council a form of Fiscal Agent Agreement (the “Fiscal Agent Agreement”) to be executed and delivered by the City and U.S. Bank Trust Company, National Association, as Fiscal Agent, with respect to the Refunding Bonds that will be issued by the District, whereby the Fiscal Agent will authenticate and deliver such Refunding Bonds and perform certain other duties; and WHEREAS, there has also been made available to the City Council a form of escrow agreement (the “Escrow Agreement”) to be executed and delivered by the City with respect to the defeasance and redemption of the outstanding Prior Special Tax Refunding Bonds, whereby the escrow agent thereunder will receive a portion of the proceeds of the sale of the Refunding Bonds and certain funds related to the outstanding Prior Special Tax Refunding Bonds that will be deposited in the redemption fund to provide for the defeasance and redemption of the Prior Special Tax Refunding Bonds and will perform certain other duties; and
WHEREAS, there has been made available to the City Council a form of Bond Purchase Agreement whereby Stifel, Nicolaus & Company, Incorporated, as underwriter (the “Underwriter”) will purchase the Refunding Bonds from the District (the “Bond Purchase Agreement”); and
Resolution No. 4119
3 WHEREAS, there has also been presented to the City Council a form of Preliminary Official Statement relating to the Refunding Bonds (the “Preliminary Official Statement”); and
WHEREAS, there has also been presented to the City Council a form of Continuing Disclosure Certificate appended to the Preliminary Official Statement to be executed and delivered by the City on behalf of the District and a dissemination agent to be appointed by the City (the “Continuing Disclosure Certificate”), for the benefit of the owners of the Refunding Bonds and in order to assist the Underwriter in complying with Rule 15c2- 12(b)(5) of the Securities and Exchange Commission (the “Rule”); and WHEREAS, the City Council has considered the forms of the Fiscal Agent Agreement, the Escrow Agreement, the Bond Purchase Agreement, the Continuing Disclosure Certificate and the Preliminary Official Statement and has determined that it is in the best interest of the owners of property in and the residents of the District, that the City Council authorize the issuance and sale of the Refunding Bonds and the execution and delivery of said agreements, subject to the conditions hereinafter contained; and WHEREAS, Section 5852.1 of the Government Code of the State of California (“Section 5852.1”) provides that the City Council obtain from an underwriter, financial advisor or private lender and disclose, in a meeting open to the public, prior to authorization of the issuance of the Bonds, good faith estimates of: (a) the true interest cost of the Bonds, (b) the finance charge of the Bonds, meaning the sum of all fees and charges paid to third parties, (c) the amount of proceeds of the Bonds received less the finance charge described above and any reserves or capitalized interest paid or funded with proceeds of the Bonds and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds; and
WHEREAS, in accordance with Section 5852.1, the City Council has obtained such good faith estimates from Urban Futures, Inc., the City’s municipal advisor (the “Municipal Advisor”), and such estimates are disclosed in Exhibit A attached hereto.
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the City Council of the City of San Jacinto, as follows:
SECTION 1. Findings. The City Council finds (a) that the preceding recitals are true and correct, (b) that the sale of the Refunding Bonds of the District at negotiated sale, without advertising for bids, will result in a lower overall cost to the District, and (c) that if the Refunding Bonds of the District are issued and sold in an aggregate principal amount not to exceed $11,455,000, the aggregate value of the parcels of real property within the District that will be subject to the levy of the Special Taxes to pay the principal of and interest on the Refunding Bonds of the District will be more than three (3) times the aggregate principal amount of such Refunding Bonds.
In furtherance of the issuance of the Refunding Bonds, the City Council hereby makes the following further findings and determinations that: (i) it is prudent in the Resolution No. 4119
4 management of the fiscal affairs of the City, the City Council and the District to issue the Refunding Bonds for the purpose, inter alia, of refunding the Prior Special Tax Refunding Bonds on an advance basis or a current basis, (ii) the total net interest cost to maturity on the Refunding Bonds being issued to refund the Prior Special Tax Refunding Bonds plus the principal amount of the Refunding Bonds being issued to refund the Prior Special Tax Refunding Bonds will not exceed the total net interest cost to maturity on the Prior Special Tax Refunding Bonds plus the principal amount of the Prior Special Tax Refunding Bonds, and (iii) the issuance of the Refunding Bonds is in compliance with the City’s Goals and Policies.
SECTION 2. Authorization of the Issuance of the Refunding Bonds. The City Council authorizes the issuance and sale of the Refunding Bonds of the District in an aggregate principal amount that shall not exceed the aggregate principal amount of $11,455,000, and the Mayor, the City Manager, the Deputy City Manager and the Finance Director (each an “Authorized Representatives”) are authorized and directed to take all steps and actions which are necessary to accomplish the issuance, sale and delivery of the Refunding Bonds pursuant to the authorization given by and the conditions specified in this resolution. The Mayor and the City Clerk of the City Council, or any Authorized Representative if such persons are not available, are authorized to execute the Refunding Bonds for and on behalf of the City and the District by their manual or facsimile signatures.
The last maturity date of the Refunding Bonds of the District shall not be later than the last maturity date of the Prior Special Tax Refunding Bonds.
Pursuant to Section 53363.8 of the California Government Code, the City Council determines that the Designated Costs of Issuing the Refunding Bonds for the District shall include (i) all expenses incident to the calling, retiring, or paying of the Prior Special Tax Refunding Bonds, and incident to the issuance of the Refunding Bonds of the District, including the charges of any agent in connection with the issuance of the Refunding Bonds or in connection with the redemption or retirement of the Prior Special Tax Refunding Bonds, (ii) the interest on the outstanding bonds of the District to the date upon which each of such outstanding bonds will be paid pursuant to the fiscal agent agreement authorizing the issuance of such outstanding bonds, and (iii) any premium necessary in calling or retiring the Prior Special Tax Refunding Bonds.
SECTION 3. Approval of Fiscal Agent Agreement. The form of the Fiscal Agent Agreement which provides generally for (i) the authentication and delivery by the Fiscal Agent of the Refunding Bonds of the District, (ii) the establishment and administration by the Fiscal Agent of certain funds and accounts for the benefit of the City and the owners of the Refunding Bonds, (iii) the payment by the Fiscal Agent of the principal of and interest on the Refunding Bonds from the Special Tax Revenues (as defined therein), and (iv) the performance of other duties by the Fiscal Agent, is approved in the form on file with the City Clerk, and the Authorized Representatives are each individually authorized to execute and deliver, on behalf of the City, the Fiscal Agent Agreement with respect to the Refunding Bonds of the District.
SECTION 4. Approval of Escrow Agreement. The form of the Escrow Agreement which provides for (i) the defeasance and redemption of the Prior Special Tax Refunding Resolution No. 4119
5 Bonds, (ii) the creation and administration by the Escrow Agent of the Escrow Fund for the benefit of the owners of Prior Special Tax Refunding Bonds, and (iii) the performance of other duties by the Escrow Agent, is approved in the form on file with the City Clerk, and the Authorized Representatives are each individually authorized to execute and deliver, on behalf of the City, such Escrow Agreement with respect to the Prior Special Tax Refunding Bonds.
Notwithstanding the preceding provisions of this section, as required by Section 53363.9 of the California Government Code, the amount of the proceeds of the sale of the Refunding Bonds of the District and other amounts to be deposited in the Redemption Fund with respect to the Prior Special Tax Refunding Bonds, and earnings from the investment thereof, shall be in an amount sufficient to pay the principal of and interest on the Prior Special Tax Refunding Bonds on September 1, 2026, and to pay the principal and redemption premium due on such outstanding bonds on such date or such earlier date as may be negotiated with the owners of the Bonds, and the Designated Costs of Issuing the Refunding Bonds.
SECTION 5. Approval of Preliminary Official Statement; Preparation of Final Official Statement. The Preliminary Official Statement is approved, and each of the Authorized Representatives is authorized to consent to and assist in the preparation of such modifications thereto as may be specified by the City Manager, the Deputy City Manager or Finance Director of the City. Each of the Authorized Representatives is authorized to determine when the Preliminary Official Statement is to be deemed final within the meaning of the Rule and to deliver a certificate to that effect to the Underwriter.
The Underwriter is authorized to distribute the Preliminary Official Statement as approved hereby, or as modified with the consent of one of the Authorized Representatives, to prospective purchasers of the Bonds. The Authorized Representatives are authorized to participate in the preparation of the Final Official Statement, based on the Preliminary Official Statement, and such modifications thereto as may be agreed to by Disclosure Counsel and the Underwriter. An Authorized Representative is authorized to sign the Final Official Statement on behalf of the City and the District.
SECTION 6. Purchase and Sale of Bonds. The City Council approves and authorizes the issuance and sale of the Bonds by negotiation with the Underwriter and the City pursuant to the Bond Purchase Agreement between the City and the Underwriter in the form on file with the City Clerk, together with any changes therein or additions thereto which are deemed advisable by the City Manager, Deputy City Manager or the Finance Director, upon consultation with Bond Counsel. An Authorized Representative is authorized and directed to execute and deliver the final form of the Bond Purchase Agreement on behalf of the City and the District upon the submission of an offer by the Underwriter to purchase the Bonds, which offer is acceptable to the City Manager or the Finance Director and is consistent with the requirements of this resolution; provided that the true interest cost shall not exceed 4.50%; the Underwriter’s discount for the purchase of the Bonds shall exceed 1.0% of the aggregate principal amount of the Bonds; and the last maturity date of the Bonds shall not be later than the last maturity date of the Prior Special Tax Refunding Bonds. When the City Manager, Deputy City Manager or the Finance Director has negotiated the Bond Purchase Agreement with the Underwriter Resolution No. 4119
6 within the parameters specified above and when the other terms and conditions are satisfactory to the City Manager, Deputy City Manager or the Finance Director and Bond Counsel, an Authorized Representative is authorized to execute and deliver the Bond Purchase Agreement to the Underwriter on behalf of the City and the District.
No Authorized Representative shall execute and deliver the Bond Purchase Agreement, however, unless the total net interest cost to maturity of the Refunding Bonds plus the principal amount of the Refunding Bonds will be less than the total net interest cost to maturity with respect to the Prior Special Tax Refunding Bonds, plus the principal amounts of the Prior Special Tax Refunding Bonds, and before executing and delivering the Bond Purchase Agreement, the Authorized Representative shall receive verbal verification from Urban Futures, Incorporated, as the Municipal Advisor to the City and the District, that such a total net interest cost and principal amount with respect to the Refunding Bonds will be achieved.
SECTION 7. Municipal Bond Insurance and Surety Bonds. The Authorized Representatives, each acting alone, are hereby authorized and directed to take all actions necessary to obtain a municipal bond insurance policy for the Refunding Bonds and reserve account surety bonds for the Refunding Bonds from a municipal bond insurance company if it is determined, upon consultation with the Municipal Advisor and the Underwriter, that such municipal bond insurance policy and/or surety bonds will reduce the true interest cost or increase cash flow savings with respect to the Refunding Bonds.
SECTION 8. Appointment of Professionals. The City Council hereby authorizes and approves the following professionals to provide services in connection with the issuance of the Bonds:
(a) Fiscal Agent. U.S. Bank Trust Company, National Association is appointed as Fiscal Agent pursuant to the Fiscal Agent Agreement and as Escrow Agent pursuant to the Escrow Agreement to take any and all action provided therein to be taken by the Fiscal Agent and Escrow Agent; (b) Underwriter. Stifel, Nicolaus & Company, Incorporated is hereby appointed to serve as the Underwriter;
(c) Municipal Advisor. Urban Futures, Incorporated is hereby appointed to provide municipal advisory services;
(d) Bond Counsel. Best Best & Krieger LLP is hereby appointed as bond counsel in connection with the issuance of the Refunding Bonds; and (e) Disclosure Counsel. Best Best & Krieger LLP is hereby appointed as disclosure counsel in connection with the issuance of the Refunding Bonds.
SECTION 9. Reserve Fund and Other Funds Related to the Outstanding Bonds.
The Authorized Representatives are each authorized to direct the fiscal agent for the outstanding bonds of the District, and said Fiscal Agent is authorized, to transfer the amount on deposit in the reserve fund and amounts on deposit in any other funds or Resolution No. 4119
7 accounts, which the Fiscal Agent holds under the Fiscal Agent Agreement with respect to the Prior Special Tax Refunding Bonds, to the Fiscal Agent for deposit in the Redemption Fund to be used to defease and redeem the Prior Special Tax Refunding Bonds or to the Reserve Fund for the Refunding Bonds of the District, whichever the Authorized Representatives determine is most appropriate.
SECTION 10. Notice of Redemption. The Authorized Representatives are each authorized and directed to provide for the mailing and publication, and the Fiscal Agent, in its capacity as fiscal agent for the Prior Special Tax Refunding Bonds, is authorized to mail and publish, notice of the redemption of the outstanding bonds of the District to the registered owners thereof as required by Section 53365 of the California Government Code and the fiscal agent agreement for the Prior Special Tax Refunding Bonds.
SECTION 11. Further Action. The Authorized Representatives are authorized to take any and all action with respect to the execution and delivery of the Fiscal Agent Agreement, the Escrow Agreement, the Bond Purchase Agreement and the issuance, sale and delivery of the Refunding Bonds, which in the opinion of Bond Counsel is necessary in order for the authorization and direction provided in this resolution to be carried out.
SECTION 12. Conditions of Approval. The approvals, authorization and direction given by this resolution are conditioned upon the satisfaction of the requirements of Section 6 hereof with respect to the issuance and sale of the Refunding Bonds. The officers of the City designated above shall not take any action with respect to the execution and delivery of the Fiscal Agent Agreement, the Escrow Agreement and the Bond Purchase Agreement or the issuance, sale and delivery of the Refunding Bonds unless and until such conditions are satisfied; provided, however, that upon satisfaction of such conditions, this resolution shall be fully effective and shall be carried out by such officers without further approval or action of the City Council. The approvals, authorization and direction provided by this resolution shall continue, subject to the satisfaction of such conditions, until [December 31], 20[26], and the Refunding Bonds may be sold, and the Refunding Bonds, the Fiscal Agent Agreement, the Escrow Agreement and the Bond Purchase Agreement may be dated, entered into, executed and delivered or distributed, as appropriate, on any date selected by the Authorized Representatives and the Purchaser prior to said date.
SECTION 13. Effect. This resolution shall take effect immediately upon its passage.
PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council on this 5
th day of May, 2026 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Resolution No. 4119
8 CITY OF SAN JACINTO
________________________________
Crystal Ruiz, Mayor
ATTEST:
Jill Theriot, Deputy City Clerk
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
_____________________________________
Craig Hayes, City Attorney
Resolution No. 4119
9 STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF SAN JACINTO)
CERTIFICATION
I, Jill Theriot, duly appointed Deputy City Clerk of the City of San Jacinto, do hereby certify that the foregoing Resolution No. 4119 was duly passed, approved, and adopted at a regular meeting of the City Council of the City of San Jacinto on the 5 th day of May
2026, by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
WITNESS MY HAND AND OFFICIAL SEAL this 5
th day of May, 2026.
_________________________
Jill Theriot, Deputy City Clerk
City of San Jacinto
Resolution No. 4119
10 EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Refunding Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the District by the Municipal Advisor in consultation with the Underwriter.
Principal Amount. The Municipal Advisor has informed the District that, based on the financing plan and current market conditions, it’s good faith estimate of the aggregate principal amount of the Refunding Bonds to be sold is $8,255,000 (the “Estimated Principal Amount”), which excludes approximately $684,538 of net premium estimated to be generated based on current market conditions. Net premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for such bonds is higher than the face value of the bonds.
True Interest Cost of the Refunding Bonds. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Refunding Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Refunding Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Refunding Bonds, is
3.36%.
Finance Charge of the Refunding Bonds. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Refunding Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Refunding Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Refunding Bonds), is $355,012.
Amount of Proceeds to be Received. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Refunding Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the District, on behalf of the City, for the sale of the Refunding Bonds, less the finance charge of the Refunding Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Refunding Bonds, is $8,584,364.
Total Payment Amount. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the Refunding Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the District will make to pay debt service on the Refunding Bonds, plus the finance charge for the Refunding Bonds, as described above, not paid with the proceeds of the Refunding Resolution No. 4119
11 Bonds, calculated to the final maturity of the Refunding Bonds, is $10,160,894 (excluding any offsets from reserves or capitalized interest).
The foregoing estimates constitute good faith estimates only. The actual principal amount of the Refunding Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Refunding Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Refunding Bonds sold being different from the Estimated Principal Amount, (c) the actual amortization of the Refunding Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Refunding Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the financing plan or finance charges, or a combination of such factors. The actual date of sale of the Refunding Bonds and the actual principal amount of Refunding Bonds sold will be determined by the District, on behalf of the City, based on the timing of the need for proceeds of the Refunding Bonds and other factors. The actual interest rates borne by the Refunding Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Refunding Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the District.