Item Number: 12
City Council / Commissioners
Written Communications
Meeting of: October 7, 2025
Submitted By:
Keith C. Metzler, City Manager / Executive Director
Jenele Davidson, Deputy City Manager
Tony Camargo, Deputy City Manager
Carmen Cun, Director of Finance / City Treasurer
Subject:
Consideration of the Preliminary Official Statement and Continuing Disclosure Certificate for the Southern California Logistics Airport Authority 2025 Tax Allocation Refunding Bonds and Other Related Actions
Recommendation:
That the Honorable Southern California Logistic Airport Authority (“SCLAA”) Commission adopt Resolution No. SCLAA 25-013 approving the form of the Preliminary Official Statement and the Continuing Disclosure Certificate relating to the 2025 Tax Allocation Refunding Bonds and authorizing certain other actions in connection therewith.
Fiscal Impact:
Based on market conditions as of October 1, 2025, it is estimated that issuance of the 2025 Tax Allocation Refunding (“2025 Bonds”) in the approximate par amount of $78.7 million (with a final maturity of 2043), to refund five series of Prior Tax Allocation Bonds, will result in approximately $35.4 million in cash flow savings and $7.0 million in net present values savings, or 7.0% of refunded par. Estimated annual savings will become available after the payment of enforceable obligations as approved on the Recognized Obligation Payment Schedule (“ROPS”) and will be distributed among various taxing entities. The City’s General Fund residual share of the total estimated debt service savings is estimated at approximately $4.0 million through 2043. Final savings achieved will not be determined until the sale of the 2025 Bonds and will depend upon market conditions at the time of sale.
Strategic Plan Goal:
The City of Victorville Strategic Plan 2023-2026 identifies multi-year strategic goals and various strategies to work toward achieving these goals. Goal A, Financial Sustainability, 4 3
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aims to foster fiscal health through disciplined long-term planning, cost control, increased revenues, and cost recovery. The 2025 Bonds are expected to yield significant debt service savings which is anticipated to result in higher future property tax distributions to the taxing entities, including the City.
Background:
On February 4, 2025, the SCLAA Commission adopted a resolution approving the issuance and sale of the 2025 Bonds, the execution and delivery of the Indenture and other documents and agreements in connection with the issuance of the 2025 Bonds, the Reserve Policy Substitution, and various matters in connection therewith. On February 4, 2025, the City Council of the City of Victorville held a duly noticed public hearing regarding the issuance of the 2025 Bonds by the SCLAA and adopted a resolution that approved the issuance of the 2025 Bonds, made a finding of significant public benefit, and irrevocably pledged to the 2025 Bonds, on a subordinate basis to the Senior Bonds, its share of property tax increment revenues.
On February 13, 2025, the successor agency to VVEDA adopted a resolution approving the issuance of the 2025 Bonds; approving the execution and delivery by the SCLAA of the Indenture of Trust between the SCLAA and the Trustee (The Bank of New York Mellon Trust Company, N.A.) which sets forth the material terms and provisions relating to the 2025 Bonds and whereby the Trustee agrees to certain rights and duties related to the 2025 Bonds; and authorizing and directing the SCLAA to execute and deliver any and all documents necessary to provide for and accomplish the Reserve Policy Substitution.
On March 6, 2025, the San Bernardino Countywide Oversight Board adopted a resolution approving the execution and delivery of an Indenture of Trust between the SCLAA and The Bank of New York Trust Company, N.A., as Trustee, and the issuance of Tax Allocation Refunding Bonds by the SCLAA and authorizing other actions related thereto.
On May 2, 2025, the State Department of Finance (“DOF”) provided a letter to VVEDA stating that, based on the DOF’s review and application of the law, the Oversight Board Action approving the 2025 Bonds is approved by the DOF.
Discussion:
The 2025 Bonds are expected to be priced and sold in October 2025 with the bond closing occurring in November 2025. The final approval required to move forward with the bond sale is the SCLAA Commission’s approval of the form of a Preliminary Official Statement and Continuing Disclosure Certificate related to the 2025 Bonds.
The proposed Resolution of the SCLAA (Attachment A) approves the form of a Preliminary Official Statement and Continuing Disclosure Certificate in connection with the 2025 Bonds (Attachment B) and authorizes certain other actions with respect thereto.
The Preliminary Official Statement has been reviewed by the Disclosure Committee of the City of Victorville and other appropriate staff of the SCLAA, as required by the City and SCLAA’s Debt Management Policy.
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Preliminary Official Statement: Stradling Yocca Carlson & Rauth, the SCLAA’s Bond Counsel and Disclosure Counsel, has prepared the form of a Preliminary Official Statement (the “POS”) to be used in marketing the 2025 Bonds.
The POS was prepared based on information provided by and in coordination with Urban Futures, Inc. (Municipal Advisor), Harris & Associates (Fiscal Consultant), Raymond James (Underwriter), and City/SCLAA staff. The POS is the “offering document” for the Bonds. The SCLAA Commission has an obligation to ensure that the POS includes all information that would be material to a prospective investor’s decision whether to purchase the Bonds. While the SCLAA’s legal counsel, consultants, and the Underwriter have participated in preparing the POS, the SCLAA Commission and staff are ultimately responsible for ensuring that the POS is accurate, contains no misleading information and does not omit any information necessary to make the POS not misleading to investors. Continuing Disclosure Certificate: The Continuing Disclosure Certificate will be delivered by the SCLAA for the benefit of owners of the 2025 Bonds and in order to assist the Underwriter in complying with Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission. This document describes various annual and certain event reporting and disclosure obligations of the SCLAA, as required by federal securities laws (see Appendix I to the Preliminary Official Statement in Attachment B).
Staff recommends that the SCLAA Commission adopt Resolution No. SCLAA 25-013 to approve the form of the Preliminary Official Statement and the Continuing Disclosure Certificate for the 2025 Bonds and authorize certain other actions in connection therewith.
Staff and the project team are available for any questions the Commission may have.
Attachments: A. Resolution No. SCLAA 25-013
B. Form of Preliminary Official Statement