Improvement Area 3
City of Stockton
Community Facilities District No. 2018-2
(Westlake Villages II)
Special Tax Bonds Series 2024
City Council Meeting
March 19, 2024
Agenda Item 15.2
History of the District
District Formation: June 2018
Location: North Stockton, South of Eight Mile Road
and West of Highway 5
Original Size: 580 Gross Acres
Split off from CFD 2006-2 in 2018
Original formation included Improvement Area 1
Amended in February 2020 to split off a portion of
Improvement Area 1 into Improvement Area 2
Amended in December 2021 to split off a portion of
Improvement Area 2 into Improvement Area 3 and
Improvement Area 4
CFD 2018-2 planned for 2,163 residential units (277 units in Imp. Area 3), with a portion reserved for a 55+
retirement community
2 Improvement Area 3
Special Taxes:
Single-family residential with FY 2024-25 facilities tax rates ranging from $2,708 (<1,800 SF) to $3,747 (>3,000 SF)
annually.
2% escalation of facilities tax
City is able to recover administrative costs as part of the special taxes
A services tax is also paid each year by property owners Term of the Improvement Area 3 Facilities Tax:
Fiscal year 2071/72
Bonds: Bonds approved up to $18.5 million for
Improvement Area 3
3 CFD 2018-2 Boundary Map
4 Special Tax Bonds, Series 2024
(Improvement Area 3)
Maximum amount of bonds authorized $18.5 million
Series 2024 Expected Issue Size: $13.96 million
Series 2024: Not-To-Exceed Issue Size: $15.5 million
Interest only on 9/1/24, 3/1/25 and 9/1/25
Interest on 9/1/24 paid by capitalized interest
Interest on 3/1/25 and 9/1/25 partially paid by capitalized interest 2026 debt service begins at $738k and increases at 2.00% annually to September 1, 2054
1.10 times debt service coverage each year
Estimated fixed costs of issuance of $275,000 plus underwriter’s compensation of $132,620 for “all-in” cost of $407,620
Issuance planned as non-rated Public Offering
5 6Proposed Timeline
Timeline Item
March 19, 2024 City Council Consideration
Friday, March 22, 2024 Print and Post Preliminary Official Statement April 2 and April 3, 2024 Pre-Pricing and Pricing
April 17, 2024 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.
Preliminary Official Statement (Including Continuing
Disclosure Certificate): 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.
The continuing disclosure certificate is part of the official statement and governs the terms and conditions of the City’s responsibility to disclose information to bondholders.
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 2024 Bonds.
7 Staff Recommendation
Adopt a Resolution authorizing
1) the issuance of special tax bonds for and on behalf
of Improvement Area 3 of the Community Facilities
District No. 2018-2 (Westlake Villages II),
2) approving and directing the execution of a fiscal
agent agreement,
3) approving the form of Preliminary Official
Statement,
4) approving sale of such bonds, and
5) approving other related documents and actions.
8