Improvement Area 4
City of Stockton
Community Facilities District No. 2018 -2
(Westlake Villages II)
Special Tax Bonds Series 2025
August 12, 2025
Agenda Item 16.1
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 2,186 residential units - 1,240 units in Improvement Area 4 (Part A: 511 Units – Lennar owned, 378 permits, 140 built and sold, Part B: 729 units – Spanos owned, currently undeveloped)
Special Taxes (Improvement Area 4):
Single-family residential with FY 2025-26 Facilities tax rates ranging from $2,762 (<1,800 SF) to $3,822 (>3,000 SF) annually
2% escalation of facilities tax
City can recover administrative costs as part of the special taxes A services tax is also paid each year by the property owners Term of the Improvement Area 4 Facilities Tax: Fiscal year 2071/72 Bonds: Bonds approved up to $90.0 million for Improvement Area 4 2 CFD 2018-2 Boundary Map
3 IA4, Special Tax Bonds, Series 2025
Maximum amount of bonds authorized $90.0 million
Series 2025: Not-To-Exceed Issue Size: $30.0 million
Series 2025 Expected Issue Size: $26.285 million
Portion of Interest 3/1/25 and 9/1/25 paid by
capitalized interest
Debt service increases at 2.00% annually to September 1, 2055
1.10 times debt service coverage each year
Estimated fixed costs of issuance of $325,000 plus
underwriter’s compensation of $249,708 for “all-in” cost of $574,708
Issuance planned as non-rated Public Offering
4 5
Proposed Timeline
DATE(S) ITEM
August 12 City Council Consideration
Week of September 8 Print and Post Preliminary Official Statement Tuesday, September 16
Wednesday, September 17
Pre-Pricing and Pricing
Wednesday, October 1 Closing and Transfer of Funds
Financial Summary
There is no impact on the City’s General Fund or
any other unrestricted fund as a result of taking
the recommended action.
6 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. It also includes the covenants of the City concerning the levy of the special tax, foreclosure of delinquent parcels and related matters. Preliminary Official Statement (Including Continuing
Disclosure Certificate): This is the offering document
provided to investors that provides all material information related to the proposed bonds and Improvement Area 4
of the District. This document includes a Continuing
Disclosure Certificate, which is the document detailing what ongoing information will be provided to investors. Bond Purchase Agreement: This document details the
agreement related to the terms of the negotiated sale of the bonds to the underwriter and the conditions for closing the bond issue.
7 Staff Recommendation
Adopt Resolution authorizing the issuance of special tax bonds for and on behalf of Improvement Area 4 of the
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.
8 Questions ?
9