City of Stockton
Community Facilities District 2018-2
(Westlake Villages II-Improvement Area 2)
Special Tax Bonds Series 2022
City Council Meeting
June 14, 2022
Item 15.3
Westlake Villages: Improvement Area 2
District: Westlake Villages II was formed in June 2018 with original size of 580 Gross Acres
Location: North Stockton, South of Eight Mile Road and West of Highway 5
Improvement Area 2: Includes 292 homes approved for
construction and as of May, 2022:
93 Permits pulled
63 homes under construction
45 homes sold
Debt Issuance: Improvement Area 2 was approved for an original debt capacity of up to $60 million, but with earlier revisions to create Improvement Areas 3 and 4, lien will be closed off and no further debt will be issued
Use of Proceeds: The debt proceeds will be used to
finance/acquire the public infrastructure in Improvement Area 2 2
Westlake Villages II – Boundary Map
3 Debt Issuance- CFD 2018-2 (Imp. Area 2)
Competitively selected vendor pool: Underwriter, Municipal Advisors, Bond Council
This will be the only issuance to occur in this Improvement Area Tax assessments:
The 93 lots, that have pulled final permits to construct homes, will be assessed in FY 2022-23
The remainder of the first year debt service will be financed through Capitalized Interest
All parcels in improvement areas will taxed starting in FY 2023-24 Maximum costs of issuance of $385,000 (“All-In”)
Issuance planned as Public Offering
4 Financing Comparison
5 “Not-To-Exceed” Parameters:
Maximum Issue Size: $12,500,000
Maximum True Interest Cost: 7.00%
Staff Report Estimate (1)
Estimated Par Amount of Bonds $10,625,000
Estimated Proceeds Available for
Construction
$8,650,000
True Interest Cost(2) 5.52%
Reserve Fund 125% of Avg. Annual
Estimated Costs of Issuance (2) $374,228
Estimated Average Annual Debt Service $763,000
Debt Service Coverage 1.10x
(1) Assumes estimated interest rate as of May 17, 2022 (plus .30%) (2) True Interest Cost - includes all costs in the listed rate 6 Proposed Timeline
Timeline Item
June 14, 2022 City Council Consideration
June 16, 2022 Print and Post Preliminary Official Statement June 28-29, 2022 Pre-Pricing and Pricing
July 7, 2022 Print Post Final Official Statement
Finalize all Documents
July 13, 2022 Close the Transaction
Documents for Consideration
Fiscal Agent Agreement: This agreement governs the terms and conditions of the bonds and the role and responsibilities of the Fiscal Agent.
Official Statement: (Including Continuing Disclosure Agreement):
Will be distributed as the primary marketing document to prospective bond purchasers. The agenda packet includes the Preliminary Official Statement deemed to be essentially final. A final version of this document, called the Final Official Statement, is estimated to be made available shortly after the bonds are sold and will reflect all the bond sale information.
Bond Purchase Agreement: Is a contract between the City and the Underwriter that provides the terms and conditions under which the underwriter will purchase the Series 2022 Bonds. 7 Staff Recommendation
Adopt Resolution authorizing the issuance of special tax bonds for and on behalf of Community Facilities District No. 2018-2 (Westlake Villages II), approving and directing the execution of a fiscal agent agreement, approving the form of Preliminary Official Statement, approving sale of such bonds, and approving other related documents and actions.
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