HomeMy WebLinkAboutAgenda Packet 2005/06/07 Jt. RDA/PFA
Notice is hereby given that the Chairman of the Public Financing Authority has called and will
convene a special meeting of the Public Financing Authority, Tuesday, June 7, 2005, at 4:00 p.m.,
immediately following the City Council meeting in the Council Chambers, loc in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California to c sider, derate nd act upon
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O~1E~y, JUNE 7, 2005
4:00 P.M.
(immediately following the City Council meeting)
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CI1Y OF
CHUlA VISTA
COUNCIL CHAMBERS
PUBLIC SERVICES BUILDING
SPECIAL MEETING OF THE
PUBLIC FINANCING AUTHORITY
MEETING .JOINTLY WITH THE
REDEVELOPMENT AGENCY I CITY COUNCIL
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council/Public Financing Authority Members Castaneda, Davis, McCann,
Rindone; Chair/Mayor Padilla
CONSENT CALENDAR or=;:fHE\cii"Y":C'OUNCfl
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted
by the Council, Agency and/or Authority by one motion without discussion unless an Council and/or Agency
member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to
speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to
the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Public
Hearing items. Items pulled by the public will be the first items of business.
1. ORDINANCE ADDING CHAPTER 2.55 TO THE CHULA VISTA MUNICIPAL
CODE ESTABLISHING THE CHULA VISTA REDEVELOPMENT
CORPORATION TO SUPPORT THE PLANNING AND REDEVELOPMENT
ACTIVITIES OF THE CITY AND THE CHULA VISTA REDEVELOPMENT
AGENCY WITHIN DESIGNATED AREAS OF THE CITY (SECOND READING)
STAFF RECOMMENDATION:
the May 24, 2005 meeting.
Council adopt the ordinance as amended at
.
2. ORDINANCE AMENDING SECTIONS 2.24.030, 2.32.100, AND 2.42.010
OF TITLE 2 AND SECTION 19.14.592 OF TITLE 19 OF THE CHULA VISTA
MUNICIPAL CODE (SECOND READING)
STAFF RECOMMENDATION:
Council adopt the ordinance.
ORAL COMMUNICATIONS OF THE REDEVELOPMENT AGENCY
This is an opportunity for the general public to address the Redevelopment Agency on any subject matter
within the Agency' 5 jurisdiction that is not an item on this agenda. (State law, however, generally prohibits
the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish
to address the Agency on such a subject, please complete the" Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action.
ACTION ITEMS OFTHE PUBLIC FINANCING AUTHORITY AND CITY COUNCIL
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Council/Authority, staff, or members of the general public. The items will be considered individually by the
Council/Authority and staff recommendation may in certain cases be presented in the alternative. Those who
wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk
prior to the meeting.
3. CONSIDERATION OF (1) REFUNDING CERTAIN ASSESSMENT DISTRICT
BONDS; (2) APPROVAL OF CERTAIN REASSESSMENT REPORTS AND
REASSESSMENTS WITHIN CERTAIN REASSESSMENT DISTRICTS (3)
ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR CERTAIN
REASSESSMENT DISTRICTS AND APPROVING AGREEMENTS AND OTHER
ACTIONS IN CONNECTION THEREWITH; (4) ACTING AS THE LEGISLATIVE
BODY OF CERTAIN COMMUNITY FACILITIES DISTRICTS; AND (5) ISSUING
REFUNDING REVENUE BONDS AND APPROVING AGREEMENTS AND
OTHER ACTIONS IN CONNECTION THEREWITH
On 4/5/05, Council approved a resolution making preliminary determinations
and declaring their intention to issue bonds to refund the outstanding
improvements bonds issued for certain existing Assessment Districts and
Community Facility Districts and orderings a report thereon. (Director of
Finance/Treasurer)
STAFF RECOMMENDATION:
3.1. That Council adopt the following resolutions:
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AUTHORIZING AND DIRECTING COMPLIANCE WITH
THE "REFUNDING ACTION OF 19B4 FOR 1915 IMPROVEMENT
ACT BONDS," AS MODIFIED, IN CONNECTION WITH THE
ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR
THE PURPOSE OF REFUNDING CERTAIN ASSESSMENT
DISTRICT BONDS
Redevelopment Agency, June 7, 2005
Page 2
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, APPROVING THE REASSESSMENT
REPORT AND CONFIRMING REASSESSMENTS WITHIN
REASSESSMENT DISTRICT NO. 2005-1
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, APPROVING THE REASSESSMENT
REPORT AND CONFIRMING REASSESSMENTS WITHIN
REASSESSMENT DISTRICT NO. 2005-2
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR
THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS
FOR REASSESSMENT DISTRICT NO. 2005-1, APPROVING THE
FORMS OF BOND INDENTURE, REFUNDING BONDS
PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND
ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS
IN CONNECTION THEREWITH
E. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR
THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS
FOR REASSESSMENT DISTRICT NO. 2005-2, APPROVING THE
FORMS OF BOND INDENTURE, REFUNDING BONDS
PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND
ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS
IN CONNECTION THEREWITH
F. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 97-3 (OTAY RANCH
MCMILLIN SPA ONE), COMMUNITY FACILITIES DISTRICT NO.
99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE ONE WEST), COMMUNITY
FACILITIES DISTRICT NO. 2000-1 (SUNBOW II - VILLAGES 5
THROUGH 10), COMMUNITY FACILITIES DISTRICT NO. 2001-
1 (SAN MIGUEL RANCH) AND COMMUNITY FACILITIES
DISTRICT NO. 06-1 (EASTLAKE - WOODS, VISTAS AND LAND
SWAP), AUTHORIZING AND PROVIDING FOR THE ISSUANCE
OF SEPARATE SERIES OF SPECIAL TAX REFUNDING BONDS
OF EACH SUCH COMMUNITY FACILITIES DISTRICTS,
APPROVING THE FORMS OF BOND INDENTURES FOR EACH
SUCH SERIES OF SUCH REFUNDING BONDS, A REFUNDING
BONDS PURCHASE AGREEMENT AND ESCROW AGREEMENTS
FOR EACH SERIES OF REFUNDED BONDS, AND AUTHORIZING
OTHER ACTIONS IN CONNECTION THEREWITH
Redevelopment Agency, June 7, 2005
Page 3
3.2. That the Public Financing Authority adopt the following resolution:
G. RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE
CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF
REFUNDING REVENUE BONDS, APPROVING THE FORMS OF
AN INDENTURE OF TRUST, BOND PURCHASE CONTRACT,
REFUNDING BONDS PURCHASE AGREEMENT, PRELIMINARY
OFFICIAL STATEMENT AND CONTINUING DISCLOSURE
AGREEMENT AND AUTHORIZING OTHER ACTIONS IN
CONNECTION THEREWITH
OTHER BUSINESS OI5THEREDEVELOPMENTAGENCY
4. DIRECTOR'S REPORT
5. CHAIR REPORT
6. AGENCY COMMENTS
ADJOURNMENT
The Special Meeting of the Public Financing Authority will adjourn until further
notice; the Redevelopment Agency will adjourn to a meeting on June 21, 2005, at
6:00 p.m., in the Council Chambers.
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complyin9 with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (619)
691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585.5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, June 7, 2005
Page 4
.~
ellY OF
CHUlA VISTA
TUESDAY, JUNE 7,2005
4:00 P.M.
(immediately following the City Council meeting)
COUNCIL CHAMBERS
PUBLIC SERVICES BUILDING
SPECIAL MEETING OF THE
PUBLIC FINANCING AUTHORITY
MEETING .JOINTLY WITH THE
REDEVELOPMENT AGENCY I CITY COUNCIL
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency/Council/Public Financing Authority Members Castaneda, Davis, McCann,
Rindone; Chair/Mayor Padilla
CONSENT CALENDAR
The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted
by the Council, Agency and/or Authority by one motion without discussion unless an Council and/or Agency
member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to
speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to
the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Public
Hearing items. Items pulled by the public will be the first items of business.
1. ORDINANCE ADDING CHAPTER 2.55 TO THE CHULA VISTA MUNICIPAL
CODE ESTABLISHING THE CHULA VISTA REDEVELOPMENT
CORPORATION TO SUPPORT THE PLANNING AND REDEVELOPMENT
ACTIVITIES OF THE CITY AND THE CHULA VISTA REDEVELOPMENT
AGENCY WITHIN DESIGNATED AREAS OF THE CITY (SECOND READING)
STAFF RECOMMENDATION:
the May 24, 2005 meeting.
Council adopt the ordinance as amended at
2. ORDINANCE AMENDING SECTIONS 2.24.030, 2.32.100, AND 2.42.010
OF TITLE 2 AND SECTION 19.14.592 OF TITLE 19 OF THE CHULA VISTA
MUNICIPAL CODE (SECOND READING)
STAFF RECOMMENDATION:
Council adopt the ordinance.
ORAL COMMUNICATIONS
This is an opportunity tor the general public to address the Redevelopment Agency on any subject matter
within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits
the Redevelopment Agency trom taking action on any issues not included on the posted agenda.) If you wish
to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications
Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to
the meeting. Those who wish to speak, please give your name and address for record purposes and follow up
action.
ACTION ITEMS
The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by
the Council/Authority, staff, or members of the general public. The items will be considered individually by the
Council/Authority and staff recommendation may in certain cases be presented in the alternative. Those who
wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the City Clerk
prior to the meeting.
3. CONSIDERATION OF (1) REFUNDING CERTAIN ASSESSMENT DISTRICT
BONDS; (2) APPROVAL OF CERTAIN REASSESSMENT REPORTS AND
REASSESSMENTS WITHIN CERTAIN REASSESSMENT DISTRICTS (3)
ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR CERTAIN
REASSESSMENT DISTRICTS AND APPROVING AGREEMENTS AND OTHER
ACTIONS IN CONNECTION THEREWITH; (4) ACTING AS THE LEGISLATIVE
BODY OF CERTAIN COMMUNITY FACILITIES DISTRICTS; AND (5) ISSUING
REFUNDING REVENUE BONDS AND APPROVING AGREEMENTS AND
OTHER ACTIONS IN CONNECTION THEREWITH
On 4/5/05, Council approved a resolution making preliminary determinations
and declaring their intention to issue bonds to refund the outstanding
improvements bonds issued for certain existing Assessment Districts and
Community Facility Districts and orderings a report thereon. (Director of
Finance/Treasurer)
STAFF RECOMMENDATION:
3.1. That Council adopt the following resolutions:
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA AUTHORIZING AND DIRECTING COMPLIANCE WITH
THE "REFUNDING ACTION OF 1984 FOR 1915 IMPROVEMENT
ACT BONDS," AS MODIFIED, IN CONNECTION WITH THE
ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS FOR
THE PURPOSE OF REFUNDING CERTAIN ASSESSMENT
DISTRICT BONDS
Redevelopment Agency, June 7, 2005
Page 2
._~- -
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, APPROVING THE REASSESSMENT
REPORT AND CONFIRMING REASSESSMENTS WITHIN
REASSESSMENT DISTRICT NO. 2005-1
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, APPROVING THE REASSESSMENT
REPORT AND CONFIRMING REASSESSMENTS WITHIN
REASSESSMENT DISTRICT NO. 2005-2
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR
THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS
FOR REASSESSMENT DISTRICT NO. 2005-1. APPROVING THE
FORMS OF BOND INDENTURE, REFUNDING BONDS
PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND
ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS
IN CONNECTION THEREWITH
E. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR
THE ISSUANCE OF LIMITED OBLIGATION REFUNDING BONDS
FOR REASSESSMENT DISTRICT NO. 2005-2. APPROVING THE
FORMS OF BOND INDENTURE, REFUNDING BONDS
PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND
ESCROW AGREEMENT AND AUTHORIZING OTHER ACTIONS
IN CONNECTION THEREWITH
F. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 97-3 (OTAY RANCH
MCMILLIN SPA ONE), COMMUNITY FACILITIES DISTRICT NO.
99-1 (OTAY RANCH SPA ONE - PORTIONS OF VILLAGE ONE,
VILLAGE FIVE AND VILLAGE ONE WEST), COMMUNITY
FACILITIES DISTRICT NO. 2000-1 (SUNBOW II - VILLAGES 5
THROUGH 10), COMMUNITY FACILITIES DISTRICT NO. 2001-
1 (SAN MIGUEL RANCH) AND COMMUNITY FACILITIES
DISTRICT NO. 06-1 (EASTLAKE - WOODS. VISTAS AND LAND
SWAP), AUTHORIZING AND PROVIDING FOR THE ISSUANCE
OF SEPARATE SERIES OF SPECIAL TAX REFUNDING BONDS
OF EACH SUCH COMMUNITY FACILITIES DISTRICTS,
APPROVING THE FORMS OF BOND INDENTURES FOR EACH
SUCH SERIES OF SUCH REFUNDING BONDS, A REFUNDING
BONDS PURCHASE AGREEMENT AND ESCROW AGREEMENTS
FOR EACH SERIES OF REFUNDED BONDS. AND AUTHORIZING
OTHER ACTIONS IN CONNECTION THEREWITH
Redevelopment Agency, June 7, 2005
Page 3
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3.2. That the Public Financing Authority adopt the following resolution:
G. RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE
CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF
REFUNDING REVENUE BONDS, APPROVING THE FORMS OF
AN INDENTURE OF TRUST, BOND PURCHASE CONTRACT,
REFUNDING BONDS PURCHASE AGREEMENT, PRELIMINARY
OFFICIAL STATEMENT AND CONTINUING DISCLOSURE
AGREEMENT AND AUTHORIZING OTHER ACTIONS IN
CONNECTION THEREWITH
OTHER BUSINESS
4. DIRECTOR'S REPORT
5. CHAIR REPORT
6. AGENCY COMMENTS
ADJOURNMENT
The Special Meeting of the Public Financing Authority will adjourn until further
notice; the Redevelopment Agency will adjourn to a meeting on June 21, 2005, at
6:00 p.m., in the Council Chambers.
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (61 g)
691-5047 or Telecommunications Devices for the Deaf (TOO) at (619) 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, June 7, 2005
Page 4
ORDINANCE NO.
AS REVISED AT THE MAY 24, 2005 M
SECOND REAOING AND ADOPTION
ETING
AN ORDINANCE ADDING CHAPTER 2.55 TO THE CHULA VISTA
MUNICIPAL CODE ESTABLISHING THE CHULA VISTA
REDEVELOPMENT CORPORATION TO SUPPORT THE PLANNING
AND REDEVELOPMENT ACTIVITIES OF THE CITY AND THE
CHULA VISTA REDEVELOPMENT AGENCY WITHIN
DESIGNATED AREAS OF THE CITY
WHEREAS, on February 3, 2004, the City Council and Redevelopment Agency
directed staff and consultants to prepare an analysis and discussion paper on the creation
of a non-profit corporation to assist the City in planning and redevelopment activities;
and
WHEREAS, two facilitated workshops were held on the formation of such a non-
profit corporation; and
WHEREAS, a report evaluating four corporate structural alternatives was
prepared and presented to the City Council and Redevelopment Agency; and
WHEREAS, on November 23, 2004, based upon a staff report presented to the
City Council which built upon the conclusions and recommendations from the
workshops, the City Council and Redevelopment Agency adopted a resolution: (i)
authorizing the formation of a non-profit public benefit corporation for the purposes of
conducting redevelopment and planning activities, (ii) directing staff to prepare the
necessary legal documents for the formation of such a corporation, and (iii) appropriating
an interim operating budget and compensation schedule for the corporation and its board
of directors; and
WHEREAS, it is in the best interest of the City to establish the purposes, powers,
composition and operating rules and regulations of such non-profit corporation in the
Chula Visa Municipal Code.
NOW, THEREFORE, the City Council of the City ofChula Vista hereby ordains
as follows:
SECTION 1: Chapter 2.55 is hereby added to Title 2 (Administration and
Personnel) of the Chula Vista Municipal Code, to read as follows:
Chapter 2.55 Chula Vista Redevelopment Corporation
2.55.010 Creation Authorized.
The creation and formation of the Chula Vista Redevelopment
Corporation is hereby authorized.
131!02392o..0001
583229.02 a04120/05
1-1
2.55.020
Purpose and Intent.
It is the purpose and intent of the city council in establishing the Chula
Vista Redevelopment Corporation to create a separate entity to serve as a resource
to, and to advise and make recommendations to, the city council and
redevelopment agency regarding planning and redevelopment of designated
territories and areas of the city. The corporation shall assume certain powers and
responsibilities with respect to planning and redevelopment that were previously
delegated or assigned to the Chula Vista Redevelopment Agency and the planning
and resource conservation commissions, and the design review committee, of the
city.
2.55.030
Territory Subject to Corporation Activities.
The corporation shall exercise its powers and functions over such
territories or geographic areas of the city as the city council may from time to
time designate by resolution or ordinance.
2.55.040
Functions and Duties.
The specific functions and duties of the corporation shall be as set forth in
Sections 2.55.050 through 2.55.080, and in the corporation's bylaws approved by
the city council, as such bylaws may from time to time be amended in accordance
with its procedures.
2.55.050
Previous Planning Commission Functions
A. Legislative Activities. In addition to the exercise by the Planning
Commission of advisory powers and functions with respect to legislative actions
within its subject matter jurisdiction, the corporation shall review and make
recommendations to the city council on all legislative planning items to the extent
that the items relate to those geographic areas of the City that the city council
designates as areas within which the corporation has the authority to exercise
planning and redevelopment functions and within the Urban Core Specific Plan
Area. These advisory powers and functions of the corporation shall be in addition
to, and not in lieu of, the advisory powers and functions of the planning
commission with respect to legislative planning matters.
B. Administrative Activities. The corporation shall assume the
functions of the planning commission with respect to administrative and quasi-
judicial items that relate to lands or uses within the geographic areas of the City
that the city council designates as areas within which the corporation has the
authority to exercise planning and redevelopment functions. Any action by the
corporation under this paragraph shall be subject to appeal to the City Council
pursuant to Chapter 19.12 or Chapter 19.14, as applicable, of the Municipal Code.
1311023920-O001
583229.02 a04120/0S
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1-2
2.55.060 Previous Redevelopment Agency Functions. Notwithstanding
any provisions of Chapter 2.24, the corporation shall have responsibility as
follows:
A. Recommendations. With respect to consideration of owner
participation agreements, disposition and development agreements, and other
approvals and agreements requiring expenditure of funds (other than solely the
funds of the corporation), regulations, and other legislative functions or activities
(such as eminent domain, issuance of bonds, and other financial transactions not
involving solely the funds of the corporation) relating to lands or uses within
those geographic areas of the City that the city council designates as areas within
which the corporation has the authority to exercise planning and redevelopment
functions, the corporation shall transmit a recommendation on such matters to the
redevelopment agency, or to the city council, as applicable.
B. Approvals. Notwithstanding the provisions of2.55.060(A), with
respect to consideration of exclusive negotiating agreements, replacement housing
plans, and other approvals and agreements requiring expenditure of only the funds
of the corporation, the corporation shall act on such items in accordance with the
applicable provisions of the bylaws. In addition, the corporation shall assume the
functions of the redevelopment agency with respect to administrative and quasi-
judicial items relating to lands or uses within the geographic areas of the City that
the city council designates as areas within which the corporation has the authority
to exercise planning and redevelopment functions. Any action by the corporation
pertaining to administrative and quasi-judicial items under this paragraph shall be
subject to appeal to the City Council pursuant to Chapter 19.12 or Chapter 19.14,
as applicable, of the Municipal Code.
2.55.070
Previous Resource Conservation Commission Functions
Notwithstanding any provision of Chapter 2.32, the Chula Vista
Redevelopment Corporation shall carry out the duties of the resource conservation
commission within those geographic areas of the City that the city council
designates as areas within which the Chula Vista Redevelopment Corporation has
the authority to exercise planning and redevelopment functions.
2.55.080
Previous Design Review Committee Functions
Notwithstanding any provision of Chapter 19.14, the Chula Vista
Redevelopment Corporation shall carry out the duties of the design review
committee within those geographic areas of the City that the city council
designates as areas within which the Chula Vista Redevelopment Corporation has
the authority to exercise planning and redevelopment functions.
131/023920-000 I
583229.02 a04/20/05
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1-3
2.55.090
Board of Directors' Membership.
A. Number of directors. The board of directors of the corporation
shall consist of nine (9) voting members, including five (5) "city directors" and
four (4) "independent directors."
B. City Directors. The five city directors shall be the five duly
elected or appointed and qualified members of the city council then in office.
C. Independent Directors.
I. The four independent directors shall consist of members of the
public appointed to the corporation board of directors by majority vote of
the city council for four (4) year staggered terms, based upon the criteria
and qualifications set forth in the corporation bylaws approved by the city
council, as such bylaws may be amended from time to time.
2. The initial terms of independent directors shall be for nominal
periods of two and four years, commencing upon appointment and
concluding for two independent directors on June 30th of the second year
of the term, and for the remaining two independent directors on June 30th
of the fourth year of the term, unless an independent director's office
becomes vacant prior to the end of such initial term. Thereafter, all
independent directors shall serve for a term of four years, concluding on
June 30th of the fourth year of the term, subject to removal or resignation
pursuant to the corporation's bylaws.
3. Appointment of the independent directors to their initial nominal
two-year and four-year terms shall be as determined by the Bylaws.
4. By majority vote, the city council shall have the power to remove
any independent director for any reason, to reappoint any independent
director to a succeeding four-year term witheet any limit 8ft the IHIffiBer sf
tOffilS served lly such indCfleftaoftt directsFas set forth in the corporation
bylaws approved by the city council, and to appoint any person meeting
the criteria and qualifications set forth in the corporation bylaws to a
vacant independent director office. Subject to the City Council's power to
remove an independent director, all directors of the corporation shall hold
office until a successor has been appointed and qualified.
2.55.100
Operation of the Corporation.
A. Time of meetings. The regular meetings of the corporation board
of directors shall be held on the second and fourth Thursdays of each month, at
6:00 P.M., and at such other dates and times as the board of directors may
designate as adjourned or special meetings of the board of directors of the
corporation.
131/023920-0001
583229.02 a04120/05
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1-4
B. Place of meetings. Unless the corporation shall otherwise
establish a meeting place in accordance with its bylaws, the meetings of the
corporation board of directors shall be held at 276 Fourth A venue, in the City of
Chula Vista.
C. Notice of meetings. The meetings of the corporation board of
directors, and notice thereof, shall be governed by the same rules and regulations
by which the City Council is bound in the conduct of public meetings.
D. Conduct of meetings. The conduct of meetings, including
requirements for quorum, the vote required for passage of any motion, the means
by which proposed actions are considered, and other matters, shall be undertaken
in accordance with the bylaws approved by the city council, as such bylaws may
be amended from time to time by the corporation board of directors.
E. Board Operating Budget. The corporation shall annually prepare
a proposed corporation board of directors operating budget, including but not
limited to board director stipends, training, travel, membership, and miscellaneous
expenses, and costs of audit. Upon approval by the corporation board of
directors, the proposed budget shall be forwarded to the city council for
consideration as part of the City's annual budget.
F. Gifts and grants. Subject to approval by the City Council, the
corporation may accept gifts and grants from any source to assist it in the
performance of its functions. In the event that private funds or funds from other
governmental agencies are made available for special projects, surveys,
educational programs, or general program support, the corporation is authorized
to enter into appropriate contracts for the utilization of such funds in furtherance
for the purpose and intent of, and the duties of functions of, the corporation,
subject to ratification of such contracts by the city council.
2.55.200 Director Compensation and Reimbursement. The city council
may, by resolution, authorize and establish compensation to the board of directors
of the corporation, and authorize the corporation to reimburse directors, officers
and employees for actual, necessary and reasonable expenses, including mileage,
incurred in the performance of their duties authorized, directed or approved by the
corporation board of directors.
PASSED AND ADOPTED this _ day ofa
,2005.
131/023920-0001
583229.02 a04120!OS
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1-5
SECOND READING AND ADOPT/O
ORDINANCE NO.
AN ORDINANCE AMENDING SECTIONS 2.24.030, 2.32.100, AND 2.42.010
OF TITLE 2 AND SECTION 19.14.592 OF TITLE 19 OF THE CHULA VISTA
MUNICIPAL CODE
WHEREAS, on February 3, 2004, the City Council and Redevelopment Agency directed
staff and consultants to prepare an analysis and discussion paper on the creation of a nonprofit
corporation to assist the City in planning and redevelopment activities; and
WHEREAS, two facilitated workshops were held on the formation of such a nonprofit
corporation; and
WHEREAS, a report evaluating four corporate structural alternatives was prepared and
presented to the City Council and Redevelopment Agency; and
WHEREAS, on November 23,2004, based upon a staff report presented to the City
Council which built upon the conclusions and reco=endations from the workshops, the City
Council and Redevelopment Agency adopted a resolution: (i) authorizing the formation of a
nonprofit public benefit corporation for the purposes of conducting redevelopment and planning
activities, (ii) directing staff to prepare the necessary legal documents for the formation of such a
corporation, and (iii) appropriating an interim operating budget and compensation schedule for
the corporation and its board of directors; and
WHEREAS, it is in the best interest of the City to establish the purposes, powers,
composition and operating rules and regulations of such nonprofit corporation in the Chula Visa
Municipal Code and to ensure consistency with regard to the functions and operations of the
corporation throughout the Chula Vista Municipal Code.
NOW, THEREFORE, the City Council of the City ofChula Vista hereby ordains as
follows:
SECTION 1: Section 2.24.030 is hereby added to Title 2 (Administration and
Personnel) of the Chula Vista Municipal Code, to read as follows:
2.24.030 Implementation of Redevelopment Agency Functions in Designated Areas
by ChuJa Vista Redevelopment Corporation
In accordance with Chapter 2.55 of the Municipal Code, and notwithstanding any
provision of Chapter 2.24, the Chula Vista Redevelopment Corporation shall carry out
those duties of the redevelopment agency as set forth in Sections 2.55.050 and 2.55.060
within those geographic areas of the City that the city council designates as areas within
which the Chula Vista Redevelopment Corporation has the authority to exercise planning
and redevelopment functions.
SECTION 2: Section 2.32.100 is hereby added to Title 2 (Administration and
Personnel) of the Chula Vista Municipal Code, to read as follows:
2-1
2.32.100 Implementation of Resource Conservation Commission Functions in
Designated Areas by Chula Vista Redevelopment Corporation
In accordance with Chapter 2.55 of the Municipal Code, and notwithstanding any
provision of Chapter 2.32, the Chula Vista Redevelopment Corporation shall carry out
the duties of the resource conservation commission within those geographic areas of the
City that the city council designates as areas within which the Chula Vista .
Redevelopment Corporation has the authority to exercise plllIllling and redevelopment
functions.
SECTION 3: Section 2.42.010 of Title 2 (Administration and Personnel) of the Chula
Vista Municipal Code is hereby amended to read as follows:
2.42.010 Statutory provisions applicable.
Chapter 3, excepting only Article 4 thereof, and Chapter 4 of Title 7 of the
Gove=ent Code of the state, relating to conservation, plllIllling, and zoning, are hereby
adopted by and made applicable in and to the city, except in so far as the same may
conflict with the Charter or the provisions of Chapter 2.55 of Title 2 of the Municipal
Code, in which case the provisions of the Charter or such Chapter 2.55 shall be
controlling.
SECTION 4: Section 19.14.592 is hereby added to Title 19 (Zoning and Specific
Plans) of the Chula Vista Municipal Code, to read as follows:
19.14.592 Implementation of Design Review Committee Functions in Designated
Areas by Chula Vista Redevelopment Corporation
In accordance with Chapter 2.55 of the Municipal Code, and notwithstanding any
provision of Chapter 19.14, the Chula Vista Redevelopment Corporation shall carry out
the duties of the design review committee within those geographic areas of the City that
the city council designates as areas within which the Chula Vista Redevelopment
Corporation has the authority to exercise plllIllling and redevelopment functions.
PASSED AND ADOPTED this _ day of
,2005.
2-2
JOINT CITY COUNCIL / PUBLIC FINANCING AUTHORITY COUNCIL
AGENDA STATEMENT
Item No
Meeting Date
.3
6/07/2005
ITEM
TITLE:
A. Resolution of the City Council of the City of Chula Vista
Authorizing and Directing Compliance with the "Refunding Act
of 1984 for 1915 Improvement Act Bonds," as Modified, in
Connection with the Issuance of Limited Obligation Refunding
Bonds for the Purpose of Refunding Certain Assessment
District Bonds
B. Resolution of the City Council of the City of Chula
Vista, Approving the Reassessment Report and Confirming
Reassessments Within Reassessment District No. 2005-1
C. Resolution of the City Council of the City of Chula
Vista, Approving the Reassessment Report and Confirming
Reassessments with Reassessment District No. 2005-2
D. Resolution of the City Council of the City of Chula
Vista, Authorizing and Providing for the Issuance of Limited
Obligation Refunding Bonds for Reassessment District No.
2005-1, Approving the Forms of Bond Indenture, Refunding
Bonds Purchase Agreement, Bond Purchase Agreement and
Escrow Agreement and Authorizing Other Actions in
Connection Therewith
E. Resolution of the City Council of the City of Chula
Vista, Authorizing and Providing for the Issuance of Limited
Obligation Refunding Bonds for Reassessment District No.
2005-2, Approving the Forms of Bond Indenture, Refunding
Bonds Purchase Agreement, Bond Purchase Agreement and
Escrow Agreement and Authorizing Other Actions in
Connection Therewith
F. Resolution of the City Council of the City of Chula
Vista, Acting as the Legislative Body of Community Facilities
District No. 97-3 (Otay Ranch McMillin Spa One), Community
Facilities District No. 99-1 (Otay Ranch Spa One-Portions of
Village One, Village Five and Village One West), Community
Facilities District No. 2000-1 (Sunbow II -Villages 5 Through
10), Community Facilities District No. 2001-1 (San Miguel
Ranch) and Community Facilities District No. 06-1 (Eastlake-
Woods, Vistas and land Swap), Authorizing and Providing for
3-1
Page 2, Item 3
Meeting Date 6/07/2005
the Issuance of Separate Series of Special Tax Refunding
Bonds of Each Such Community Facilities District, Approving
the Forms of Bond Indentures for Each Such Series of Such
Refunding Bonds, A Refunding Bonds Purchase Agreement
and Escrow Agreements for Each Series of Refunded Bonds,
and Authorizing Other Actions in Connection Therewith.
G. Resolution of the Chula Vista Public Financing
Authority of the City of Chula Vista Authorizing the Issuance of
Refunding Revenue Bonds, Approving the Forms of an
Indenture of Trust, Bond Purchase Contract, Refunding Bonds
Purchase Agreement, Preliminary Official Statement and
Continuing Disclosure Agreement and Authorizing Other
Actions in Connection Therewith
REVIEWED BY:
,
Director of FinanCefTreasurerhL
City Manage~ (4/5ths Vote: Yes_ No _x_J
SUBMITTED BY:
SUMMARY:
On April 5, 2005, the City Council approved a resolution making preliminary
determinations and declaring its intention to issue bonds to refund the
outstanding improvement bonds issued for certain existing Assessment Districts
and Community Facilities Districts and ordering a report thereon.
The Council is now being asked to approve the reassessment reports, confirm
the reassessments, authorize the issuance and the sale of limited obligation
refunding bonds for each Reassessment District and special tax refunding bonds
for each Community Facilities District to the Authority, and approve other related
documents and actions. The Authority is being asked to authorize the sale of
bonds for the purpose of purchasing the limited obligation refunding bonds of the
City and the special tax refunding bonds of the Community Facilities Districts,
and to approve other related documents and actions. All of these actions are
recommended with the sole purpose of achieving savings in annual assessments
for property owners within the subject districts.
RECOMMENDATION: The City Council approve Resolutions A through F the
Chula Vista Public Financing Authority approve Resolution G.
BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable.
3-2
DISCUSSION:
Page 3, Item -3
Meeting Date 6/07/2005
On AprilS, 2005, the City Council approved Resolution 2005-112 making
preliminary determinations and declaring their intention to issue bonds to refund
the outstanding improvement bonds issued for an existing Assessment District
(AD), the outstanding limited obligation refunding improvement bonds for an
existing Reassessment District (RAD) and the outstanding special tax bonds for
the Community Facilities Districts (CFD) and ordering a report thereon. Upon
further review, it was determined that the following Assessment District,
Reassessment District and six Community Facilities Districts would benefit from
the refinancing:
RAD of 1995
AD97 -2
CFD97-3
CFD99-1 (1999)
CFD99-1 (2001)
CFD2000-1
CFD2001-1
CFD06-1
CFD2001-2
Includes former AD 87-1 (East H Street) and AD 88-2
(Otay Lakes Road)
Otay Ranch Village 1
Lomas Verdes
Otay Ranch SPA 1
Otay Ranch SPA 1
Sunbow II Villages 5 - 10
San Miguel Ranch, Improvement Area A
Eastlake-Woods, Vistas, Improvement Area A
McMillin-Otay Ranch Village 6
Due to lower interest rates, improved development status, and savings derived
from refinancing existing debt for these districts using a pooling concept, over
11,000 property owners will benefit from this refinancing. The criteria for the
refinancing was set at a minimum savings of 3%, and based on preliminary
analysis, the estimated savings varies by district, and ranges from 5.8% to 18%
based on the current interest rate environment. The projected aggregate annual
savings would be approximately $1 million, and the projected total savings over
the life of the existing debt would be close to $12 million. Also, AD87 -1, AD88-2
and AD97-2 property owners will realize additional savings by calling bonds.
This refinancing includes both ADs and CFDs in an effort to maximize the
benefits achieved through economies of scale thereby reducing the costs of
issuance for each district. But ADs and CFDs have different interest payment
and maturity dates (March 1 and September 1 for CFDs, and March 2 and
September 2 for ADs), and the refinancing must use a common interest payment
and maturity date. The Mello-Roos Act prohibits extending the term of special
tax bonds being refinanced, so it is necessary to modify the Assessment District
dates up to March 1 and September 1 to coincide with the Community Facilities
District dates. This is addressed in Resolution A.
As mentioned in the April agenda item, the requirements of the refunding process
include reassessing properties in RAD 2005-1 (to supersede and replace RAD of
1995) and RAD 2005-2 (to supersede and replace AD 97-2) in accordance with
the applicable reassessment report, the City issuing limited obligation refunding
3-3
Page 4, Item .3
Meeting Date 6/07/2005
bonds for RAD 2005-1 and RAD 2005-2, each of the CFDs issuing special tax
refunding bonds, the City and the CFDs selling such refunding bonds to the
Authority, and finally, the Authority issuing revenue bonds with the proceeds
used to purchase the refunding bonds from the City and the CFDs. This process
has been widely used for the same purpose by many entities over the years,
including Chula Vista in 1995 and 2001.
In Resolutions Band C, the Council is being asked to adopt the Reassessment
Reports prepared by the firm of MuniFinancial, copies of which are available in
the City Clerk's office, and to confirm and order the reassessment of properties
within RAD 2005-1 (formerly RAD of 1995) and RAD 2005-2 (formerly AD 97-2)
pursuant to summary actions. This action is available to Council without public
hearing under Section 9525 of the California Streets and Highways Code as long
as: (1) each annual assessment is reduced as a result; (2) the maturity of the
bonds is not extended; and (3) the principal amount of the new reassessments is
less than the unpaid principal amount of the original assessment. All three tests
are met in the proposed transaction for both RAD 2005-1 and RAD 2005-2.
hi Resolutions D and E, the Council is being asked to authorize the issuance of
the limited obligation refunding bonds for RAD 2005-1 and RAD 2005-2 in an
amount not to exceed the amount of the reassessments, authorize the sale of
these bonds to the Authority, and approve related documents and actions, copies
of which are available in the City Clerk's office.
In Resolution F, the Council, acting in its authority as the legislative body of the
CFDs, is being asked to authorize the issuance of separate series of special tax
refunding bonds for each Community Facilities District, authorize the sale of
these bonds to the Authority, and approve the related documents and actions,
copies of which are available in the City Clerk's office.
In Resolution G, the Public Financing Authority is being asked to authorize the
sale of bonds to the underwriter in an amount sufficient to provide funds to
purchase the refunding bonds to be issued by the City and the CFDs, subject to
the underwriter's discount being no more than 0.85% and the interest rate being
less than 5.5%. The projected net interest cost to the Authority's bonds is 4.50%,
with coupons ranging from 2.5% to 4.75%. In addition, the Authority is being
asked to approve related legal documents, copies of which are available in the
City Clerk's office, and to authorize the Director of Finance to take all necessary
steps to complete the transaction.
FISCAL IMPACT:
This refinancing will result in an estimated net present value savings to the
property owners of $12 million, or an average of $1,082 for each of the 11,091
parcels. The annual average savings per parcel is estimated to be $92.
3-4
Page 5, Item ..3
Meeting Date 6/07/2005
Costs of issuance, such as the fees for Bond Counsel ($164,000), Financial
Advisor ($115,000), Underwriter (not to exceed 0.85% of the bond size) and
reassessment report ($40,000) are estimates and will be based on the actual
bond size. All costs associated with the refinancing, including City staff time
reimbursement, will be paid from the bond proceeds and are factored into the
reduced annual assessments and special taxes.
3-5
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING AND DIRECTING COMPLIANCE WITH THE "REFUNDING
ACT OF 1984 FOR 1915 IMPROVEMENT ACT BONDS," AS MODIFIED, IN
CONNECTION WITH THE ISSUANCE OF LIMITED OBLIGATION
REFUNDING BONDS FOR THE PURPOSE OF REFUNDING CERTAIN
ASSESSMENT DISTRICT BONDS
WHEREAS, the City of Chula Vista (the "City") is a municipal corporation and
charter city duly organized and existing under a freeholder's charter pursuant to which the
City has the right and power to make and enforce all laws and regulations with respect to
municipal affairs and certain other matters in accordance with and as more particularly
provided in Sections 3, 5 and 7 of Article XI of the Constitution of the State of California
(the "Constitution") and the Charter of the City of Chula Vista (the "Charter"); and
WHEREAS, as a charter city, the City is duly authorized and empowered to
adopt regulations as they relate to municipal affairs of the City, including bond matters;
and
WHEREAS, the City has formed assessment districts pursuant to the Municipal
Improvement Act of 1913 (California Streets and Highways Code S10000, et seq.) (the
"Improvement Act"), levied assessments within such assessment districts pursuant to the
Improvement Act and issued bonds ("Limited Obligation Improvement Bonds") pursuant
to the Improvement Bond Act of 1915 (California Streets and Highways Code S8500, et
seq.) (the "Assessment District Bond Act") for the purpose of financing the acquisition or
construction of public improvements to specially benefit and serve the properties within
such assessment districts; and
WHEREAS, the City has formed reassessment districts pursuant to the
Refunding Bond Act of 1984 for 1915 Improvement Act Bonds (the "Refunding Act")
for the purpose of financing the refunding of prior Limited Obligation Improvement
Bonds from the proceeds of limited obligation refunding bonds ("Limited Obligation
Refunding Bonds") issued pursuant to the Refunding Act; and
WHEREAS, the City has also formed community facilities districts pursuant to
the Mello-Roos Community Facilities Act of 1982 (California Government Code S53311,
et seq.) (the "Mello-Roos Act") and authorized such community facilities districts to levy
special taxes therein and to issue bonds ("Special Tax Bonds") secured by such special
taxes for the purpose of financing the acquisition or construction of public improvements
benefiting new development within such community facilities districts; and
WHEREAS, as a result of a combination of favorable interest rate conditions in
the municipal bond market, and the level of development, diversity of ownership and
increase in property values within certain assessment districts and community facilities
Resolution ~ 1984 Refunding Act! (revised)
I
3-6
districts previously established by the City, the City desires to issue certain Limited
Obligation Refunding Bonds identified in Exhibit A to this Resolution (the "2005
Limited Obligation Refunding Bonds") to refund certain previously issued Limited
Obligation Improvement Bonds (the "Prior Limited Obligation Improvement Bonds")
and certain Limited Obligation Refunding Bonds (the "Prior Limited Obligation
Refunding Bonds") identified in Exhibit B to this Resolution and certain special tax
refunding bonds (the "2005 Special Tax Refunding Bonds") identified in Exhibit C to
this resolution to refund certain previously issued Special Tax Bonds (the "Prior Special
Tax Bonds") identified in Exhibit D to this Resolution to reduce the assessments,
reassessments and special taxes, respectively, which must be paid by the property owners
within the affected assessment districts, reassessment district and community facilities
districts; and
WHEREAS, the City believes that combining the issuance of 2005 Limited
Obligation Refunding Bonds and the 2005 Special Tax Refunding Bonds (collectively,
the "2005 Refunding Bonds") will enhance the savings to the property owners within the
affected assessment districts, reassessment district and community facilities districts; and
WHEREAS, the interest payment dates and maturity dates for the Prior Special
Tax Bonds are March 1 and September 1, respectively, throughout the term of such
bonds; and
WHEREAS, the Mello-Roos Act provides that the term of each series of the
2005 Special Tax Refunding Bonds may not exceed the term of the series of the Prior
Special Tax Bonds to be redeemed from the proceeds of such series of 2005 Special Tax
Refunding Bonds; and
WHEREAS, the interest payment dates and maturity dates for the Prior Limited
Obligation Improvement Bonds and 2005 Limited Obligation Refunding Bonds are
established by the Assessment District Bond Act and the Refunding Act of 1984,
respectively, as March 2 and September 2 of each year; and
WHEREAS, the issuance of 2005 Limited Obligation Refunding Bonds and 2005
Special Tax Refunding Bonds with common interest payment dates and maturity dates
will facilitate the ability to combine such refundings to achieve enhanced savings for the
affected property owners; and
WHEREAS, the maturity dates for the 2005 Special Tax Refunding Bonds may
not be extended to September 2 without extending the term of the 2005 Special Tax
Refunding Bonds in violation ofthe Mello-Roos Act; and
WHEREAS, in order to provide for the issuance of the 2005 Refunding Bonds
with common interest payment dates and maturity dates it will be necessary to change the
interest payment dates and maturity dates of the 2005 Limited Obligation Refunding
Bonds to March 1 and September 1; and
Resolution - 1984 Refunding Act - Final
2
3-7
WHEREAS, the City is not required to, but desires to, follow the refunding
procedures set forth in the Refunding Act of 1984, with respect to the issuance of the
2005 Limited Obligation Refunding Bonds for the purpose of refunding the Prior Limited
Obligation Improvement Bonds and the Prior Limited Obligation Refunding Bonds; and
WHEREAS, the City Council desires to modify the procedures contained in the
Refunding Act of 1984, as applied to issuance of the 2005 Limited Obligation Refunding
Bonds, in order to allow the 2005 Limited Obligation Refunding Bonds to be issued with
interest payment dates and maturity dates of March 1 and September 1.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND
ORDERED by the City Council of the City ofChula Vista as follows:
Section 1. Reference To Laws. The City of Chula Vista shall follow the
provisions of the Refunding Act of 1984 for 1915 Improvement Act Bonds (California
Streets and Highways Code 99500, et seq.) (the "Refunding Act of 1984"), as modified
by this Resolution, in connection with the issuance of the 2005 Limited Obligation
Refunding Bonds for the purpose of refunding of the Prior Limited Obligation
Improvement Bonds and the Prior Limited Obligation Refunding Bonds.
Section 2. Modifications To Procedures Set Forth In The Refunding Act Of
1984.
The City will follow the procedures set forth in the Refunding Act of 1984, in
connection with issuance of the 2005 Limited Obligation Refunding Bonds, with the
following modifications (modifications are in bold, italicized text):
(a) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds Bonds, Subsection (a)(2) of Section 9600 of the Streets and Highways Code shall
be modified to read as follows:
"(2) Interest upon the refunding bonds from the September 1 or
the September 2, as determined by resolution of the City Council, next
preceding the date of sale thereof to not later than the September 1 or
September 2, as applicable, next succeeding two years from the date."
(b) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds, Section 9605 of the Streets and Highways Code shall be modified to read as
follows:
"All of the refunding bonds shall mature on September 1 or September 2
as determined by resolution of the City Council."
(c) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds, Section 9606 of the Streets and Highways Code shall be modified to read as
follows:
Resolution - 1984 Refunding Act! (revised)
3
3-8
"In no event shall the first maturity date of any refunding bonds be earlier
than the first day of September or the second day of September, as
determined by resolution of the City Council, next succeeding 12 months
after the date of the bonds."
(d) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds, Section 9607 of the Streets and Highways Code shall be modified to read as
follows:
"The last maturity of any refunding bonds shall not exceed 39
years from the first or second day of September, as determined by
resolution of the City Council, next succeeding 12 months after the date of
the bonds."
(e) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds, Section 9609 of the Streets and Highways Code shall be modified to read as
follows:
"The interest on refunding bonds shall be payable on March 1 or
March 2 and September 1 or September 2, respectively, of each year, as
determined by resolution of the City Council."
(f) As applied to the issuance of the 2005 Limited Obligation Refunding
Bonds, Section 9610 of the Streets and Highways Code shall be modified to read as
follows:
"The first interest payment on the bonds shall be March 1 or
March 2, as determined by resolution of the City Council, proceeding the
first or second day of September, as applicable, next succeeding 12
months after the date of the bonds, except that, if nay portion of the
interest is funded, the legislative body may specify that the first payment
of interest shall become due on an earlier interest payment date following
the date of the bonds."
Section 3. Official Actions. The Mayor, the City Manager, the Finance Director,
the City Attorney, the City Clerk and any and all other officers of the City are hereby
authorized and directed, for and in the name of and on behalf of the City, to do any and
all things and take any and all actions, and to execute and deliver all certificates and other
documents, which they, or any of them, may deem necessary or advisable in order to
consummate the refunding, issuance and delivery of the 2005 Limited Obligation
Refunding Bonds.
Section 4. Effective Date. This Resolution shall take effect from and after the
date of its passage and adoption.
Resolution - 1984 Refunding Act! (revised)
4
3-9
Presented by
Maria Kachadoorian
Director of Finance
Resolution -1984 Refunding Act! (revised)
5
3-10
Approved as to form by
~ff~
~ ~~m
EXHIBIT A
2005 LIMITED OBLIGATION REFUNDING BONDS
1. City of Chula Vista Reassessment District No. 2005-1 2005 Limited Obligation
Refunding Bonds to be issued in a principal amount not to exceed $8,000,000;
2, City of Chula Vista Reassessment District No 2005-2 2005 Limited Obligations
Refunding Bonds to be issued in a principal amount not to exceed $11,000,000
Resolution - 1984 Refunding Act - Final
6
3-11
EXHIBIT B
PRIOR LIMITED OBLIGATION IMPROVEMENT BONDS
AND
PRIOR LIMITED OBLIGATION REFUNDING BONDS
I. The outstanding principal amount of the City of Chula Vista Assessment District
No. 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds
issued in the original principal amount of $12,430,000.
2. A portion of the outstanding principal amount of the Limited Obligation
Refunding Bonds, City of Chula Vista Reassessment District of 1995 issued in the
original principal amount of $19,255,000.
Resolution -1984 Refunding Act - Final
7
3-12
EXHIBIT C
2005 SPECIAL TAX REFUNDING BONDS
1. City of Chula Vista Community Facilities District No. 97-3 (Otay Ranch
McMillin Spa One) 2005 Special Tax Refunding Bonds to be issued in a principal
amount not to exceed $12,500,000.
2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One
_ Portions of Village One, Village Five and Village One West) 2005 Special Tax
Refunding Bonds to be issued in a principal amount not to exceed $47,500,000.
3. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II -
Villages 5 through 10) 2005 Special Tax Refunding Bonds to be issued in a principal
amount not to exceed $8,000,000.
4. City of Chula Vista Community Facilities District No. 2001-1 (San Miguel
Ranch) 2005 Improvement Area A Special Tax Refunding Bonds to be issued in a
principal amount not to exceed $16,000,000.
5. City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods,
Vistas and Land Swap) 2005 Improvement Area A Special Tax Refunding Bonds to
issued in a principal amount not to exceed $47,000,000.
Resolution -1984 Refunding Act - Final
8
3-13
EXHIBITD
PRIOR SPECIAL TAX BONDS
1. City of Chula Vista Community Facilities District No. 97-3 (Otay Ranch
McMillin Spa One) Special Tax Bonds issued in the original principal amount of
$11,825,000.
2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One
- Portions of Village One, Village Five and Village One West) 1999 Special Tax Bonds
issued in the original principal amount of $23,000,000.
3. City ofChula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One
- Portions of Village One, Village Five and Village One West) 2001 Special Tax Bonds
issued in the original principal amount of $19,000,000,
4. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II -
Villages 5 through 10) 2000 Special Tax Bonds issued in the original principal amount of
$7,385,000,
5. City of Chula Vista Community Facilities District No. 2001-1 (San Miguel
Ranch) 2002 Improvement Area A Special Tax Bonds issued in the original principal
amount of$14,425,000.
6. City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods,
Vistas and Land Swap) 2002 Improvement Area A Special Tax Bonds issued in the
original principal amount of$39,000,000,
Resolution - 1984 Refunding Act ~ Final
9
3-14
RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, APPROVING THE REASSESSMENT REPORT AND
CONFIRMING REASSESSMENTS WITHIN REASSESSMENT DISTRICT
NO. 2005-1
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did
previously undertake proceedings and confirmed reassessments in an assessment district
pursuant to the terms and provisions of the "Refunding Act of 1984 for 1915 Improvement Act
Bonds", being Division 11.5 of the Streets and Highways Code of the State of California (the
"Refunding Act"), said reassessment district known and designated as Reassessment District of
1995 (the "1995 Reassessment District"); and,
WHEREAS, limited obligation refunding improvement bonds representing the unpaid
reassessments within the Reassessment District (the "1995 Limited Obligation Refunding
Improvement Bonds") were issued and sold in the manner provided in the Refunding Act to
refund limited obligation improvement bonds previously issued by the City for Assessment
District No. 85-2 (EastLake) ("AD No. 85-2"), Assessment District No. 86-1 (EastLake) ("AD
No. 86-1"), Assessment District No. 87-1 (East "H" Street) ("AD No. 87-1") and Assessment
District No. 88-2 (Otay Lakes Road) ("AD No. 88-2"); and,
WHEREAS, the term of the reassessments levied for 1995 Reassessment District on the
parcels within AD No. 85-2 and AD No. 86-1 will terminate on September 2,2006 and the debt
service on the principal amount of the 1995 Limited Obligation Refunding Improvement Bonds
equal to such remaining unpaid principal amount of such reassessments and the interest thereon
will be paid from moneys on deposit in the reserve fund established for certain bonds issued by
the Chula Vista Public Financing Authority to acquire the 1995 Limited Obligation Refunding
Bonds; and,
WHEREAS, at this time, as a result of favorable interest rate conditions within the
municipal bond market, this legislative body has initiated proceedings to reassess the parcels
located within the remaining portion of the 1995 Reassessment District that were originally
located in AD No, 87-1 and AD No. 88-2 (the "1995 Reassessment District Remainder"), to
include such parcels in a new reassessment district to be designated as City of Chula Vista
Reassessment District No. 2005-1 ("Reassessment District No. 2005-1") and to refund that
principal amount of all outstanding 1995 Limited Obligation Refunding Improvement Bonds
equal to the remaining unpaid reassessment liens levied on such parcels for the 1995
Reassessment District from the proceeds of refunding bonds (the "2005 Limited Obligation
Refunding Bonds") to be issued pursuant to the Refunding Act as modified by that certain
resolution of the City Council adopted on June 7, 2005 and entitled "A Resolution of the City
Council of the City of Chula Vista Authorizing and Directing Compliance with the 'Refunding
Act of 1984 for 1915 Improvement Act Bonds,' as Modified in this Resolution, in Connection
with the Issuance of Limited Obligation Refunding Bonds for the Purpose of Refunding Certain
Assessment District Bonds" (the "Refunding Act Resolution"); and,
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WHEREAS, this legislative body has previously ordered the preparation of a
Reassessment Report pursuant to the Refunding Act, said Report to generally contain the
following:
A. A schedule setting forth the unpaid principal and interest on the 1995 Limited Obligation
Refunding Improvement Bonds of the 1995 Reassessment District to be refunded and the
total amounts thereof;
B. The total estimated principal amount of the reassessment within Reassessment District
No, 2005-1 and of the 2005 Limited Obligation Refunding Bonds and the maximum
interest rate thereon, together with an estimate of costs of the reassessment and of issuing
the 2005 Limited Obligation Refunding Bonds;
C. The Auditor's Record showing the schedule of the principal installments and interest on
all unpaid original reassessments for the 1995 Reassessment District Remainder and the
total amounts thereof;
D. The estimated amount of each reassessment, identified by reassessment number
corresponding to the reassessment number on the reassessment diagram prepared for
Reassessment District No. 2005-1, together with a proposed Auditor's Record for such
reassessment;
E. A reassessment diagram showing Reassessment District No. 2005-1 and the boundaries
and dimensions of the subdivisions ofland within Reassessment District No. 2005-1; and,
WHEREAS, this legislative body has now received and considered the Reassessment
Report and is ready to proceed to make certain findings and approve the Reassessment Report.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION I. The above recitals are all true and correct.
SECTION 2. The Reassessment Report as presented to this City Council is hereby
approved, and it is hereby determined by this City Council that if the 2005 Limited Obligation
Refunding Bonds proposed to be issued for Reassessment District No. 2005-1 are issued and
sold with a purchase price and at interest rates not to exceed those set forth in the Reassessment
Report, the following conditions will be satisfied:
A. Each estimated annual installment of principal and interest on the reassessment
for Reassessment District No. 2005-1 will be less than the corresponding annual
installment of principal and interest on the portion of the original reassessment
being superseded and supplanted by the same percentage for all subdivisions of
land within the 1995 Reassessment District Remainder being reassessed;
B. The number of years to maturity of all 2005 Limited Obligation Refunding Bonds
will be no more than the number of years to the last maturity of the 1995 Limited
Obligation Refunding Improvement Bonds;
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C. The principal amount of the reassessment on each subdivision of land within
Reassessment District No. 2005-1 will be less than the corresponding unpaid
principal amount of the portion of the original reassessment being superseded and
supplanted by the same percentage for each subdivision of land within the 1995
Reassessment District Remainder being reassessed; and
D. The reassessments, as set forth in the Reassessment Report, shall not be deemed
to be an assessment within the meaning of, and may be ordered without
compliance with the procedural requirements of, Article XIIID of the Constitution
of the State of California.
Based upon the foregoing determinations, this City Council hereby approves and confirms the
reassessments for the 2005 Limited Obligation Refunding Bonds and the contributions from the
existing funds of the 1995 Reassessment District, all as set forth in the Reassessment Report, and
a copy of this Resolution shall be entered upon the minutes of this meeting of the legislative
body. The reassessments and the Reassessment Report may be adjusted and finalized upon the
establishment of the fmal pricing for the sale of the 2005 Limited Obligation Refunding Bonds
provided that such principal amount of the reassessment on each subdivision of land within
Reassessment District No. 2005-1 will be less than the corresponding unpaid principal amount of
the portion of the original reassessment being superseded and supplanted by the same percentage
for each subdivision ofland within the 1995 Reassessment District Remainder being reassessed.
SECTION 3. This City Council hereby authorizes the issuance and sale of the 2005
Limited Obligation Refunding Bonds to represent all unpaid reassessments within Reassessment
District No. 2005-1 and said refunding bonds shall bear interest at a rate or rates not to exceed
the interest rates set forth in the Reassessment Report for such refunding bonds, and shall be
issued in the manner as provided by the Refunding Act as modified by the Refunding Act
Resolution. The last maturity of said refunding bonds shall not exceed the number of years to
the last maturity of the 1995 Limited Obligation Refunding hnprovement Bonds.
SECTION 4. The final reassessment within Reassessment District No. 2005-1, together
with the reassessment diagram, as shall be set forth in the final Reassessment Report, shall be
recorded in the Office of the Superintendent of Streets upon (a) the running of the limitations
period specified in Section 9707 of the Refunding Act without the filing of an action to challenge
the validity of the reassessment and refunding proceedings and/or the issuance of the 2005
Limited Obligation Refunding Bonds and (b) the execution of a bond purchase agreement with a
purchase price and at interest rates not to exceed those set forth in the Reassessment Report.
Immediately thereafter a copy of the reassessment diagram shall be filed in the Office of the
County Recorder and a Notice of Reassessment, referencing said diagram, shall be recorded in
the Office of the County Recorder, all pursuant to the provisions of Division 4.5 of the Streets
and Highways Code of the State of California, and specifically Section 3114. Upon the
recordation, the reassessments shall become liens upon the various parcels of property and land
assessed as shown on the reassessment diagram.
From and after the date of such recordation and filing, the reassessments originally levied
for the 1995 Reassessment District Remainder shall be superseded and supplanted. The lien of
the original reassessments is not superseded and supplanted as to any unpaid installments of the
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reassessments originally levied which are now delinquent and the penalties and interest, if any,
thereon. Amounts, if any, received from the payment of delinquent reassessments and the
penalties and interest thereon, excluding attorney's fees and costs and post-judgment interest, if
any, shall be deposited into the redemption fund for the 2005 Limited Obligation Refunding
Bonds.
SECTION 5. This City Council hereby determines and declares that the City will not
obligate itself to advance available funds from the City treasury to cure any deficiency which
may occur in the bond redemption fund for the 2005 Limited Obligation Refunding Bonds.
SECTION 6. A copy of this Resolution confirming the reassessments within
Reassessment District No. 2005-1, which reassessments shall constitute the security for the 2005
Limited Obligation Refunding Bonds, shall be filed in the Office of the Treasurer, and the
Treasurer shall keep the record showing the several installments of principal and interest on the
reassessments which are to be collected each year during the term of said refunding bonds. An
annual portion of each reassessment, together with annual interest on said reassessment, shall be
payable in the same manner and at the same time and in the same installment as the general
property taxes of the County and shall be payable and become delinquent at the same time and in
the same proportionate amount. Each year the annual installments shall be submitted to the
County Auditor for purposes of collection, and the County Auditor shall, at the close of the tax
collecting season, promptly render to the Treasurer a detailed report showing the amount of such
installments, interest, penalties and percentages so collected.
SECTION 7. This Resolution shall become effective upon its adoption.
PREPARED BY:
APPROVED AS TO FORM:
(::iaJ~
y Attorney
Maria Kachadoorian
Director of Finance
4
3-18
RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, APPROVING THE REASSESSMENT REPORT AND
CONFIRMING REASSESSMENTS WITHIN REASSESSMENT DISTRICT
NO. 2005-2
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did
previously undertake proceedings and confirmed assessments in an assessment district pursuant
to the terms and provisions of the "Municipal hnprovement Act of 1913", being Division 12 of
the Streets and Highways Code of the State of California, said special assessment district known
and designated as Assessment District No. 97-2 (Otay Ranch, Village One) (the "Assessment
District"); and,
WHEREAS, improvement bonds representing the unpaid assessments within the
Assessment District (the "Limited Obligation hnprovement Bonds") were issued and sold in the
manner provided in the "hnprovement Bond Act of 1915", being Division 10 of the Streets and
Highways Code of the State of California; and,
WHEREAS, at this time, as a result of favorable interest rate conditions within the
municipal bond market, this legislative body has initiated proceedings to reassess the parcels
within the Assessment District and to refund all outstanding Improvement Bonds from the
proceeds of refunding bonds to be issued pursuant to the "Refunding Act of 1984 for 1915
Improvement Act Bonds", being Division 11.5 of the Streets and Highways Code of the State of
California (the "Refunding Act"), said reassessment district to be designated as City of Chula
Vista Reassessment District No. 2005-2 (the "Reassessment District"); and,
WHEREAS, this legislative body has previously ordered the preparation of a
Reassessment Report pursuant to the Refunding Act, said Report to generally contain the
following:
A. A schedule setting forth the unpaid principal and interest on the Limited Obligation
hnprovement Bonds of the Assessment District to be refunded and the total amounts
thereof;
B. The total estimated principal amount of the reassessment and of the refunding bonds and
the maximum interest rate thereon, together with an estimate of costs of the reassessment
and of issuing the refunding bonds, including all costs of issuing the refunding bonds;
C. The Auditor's Record showing the schedule of the principal installments and interest on
all unpaid original assessments for the Assessment District and the total amounts thereof;
D. The estimated amount of each reassessment, identified by reassessment number
corresponding to the reassessment number on the reassessment diagram prepared for the
Reassessment District, together with a proposed Auditor's Record for the reassessment;
E. A reassessment diagram showing the Reassessment District and the boundaries and
dimensions of the subdivisions ofland within the Reassessment District; and,
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WHEREAS, this legislative body has now received and considered the Reassessment
Report and is ready to proceed to make certain findings and approve the Reassessment Report.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Reassessment Report as presented to this City Council is hereby
approved, and it is hereby determined by this City Council that if the refunding bonds proposed
to be issued for the Reassessment District are issued and sold with a purchase price and at
interest rates not to exceed those set forth in the Reassessment Report, the following conditions
will be satisfied:
A. Each estimated annual installment of principal and interest on the reassessment
will be less than the corresponding annual installment of principal and interest on
the portion of the original assessment being superseded and supplanted by the
same percentage for all subdivisions of land within the Assessment District;
B. The number of years to maturity of all refunding bonds will be no more than the
number of years to the last maturity ofthe hnprovement Bonds;
C. The principal amount of the reassessment on each subdivision of land within the
Reassessment District will be less than the corresponding unpaid principal amount
of the portion of the original assessment being superseded and supplanted by the
same percentage for each subdivision ofland within the Assessment District; and
D. The reassessments, as set forth in the Reassessment Report, shall not be deemed
to be an assessment within the meaning of, and may be ordered without
compliance with the procedural requirements of, Article XIIID ofthe Constitution
of the State of California.
Based upon the foregoing determinations, this City Council hereby approves and confirms the
reassessments for the refunding bonds and the contributions from the existing funds of the
Assessment District, all as set forth in the Reassessment Report, and a copy of this Resolution
shall be entered upon the minutes of this meeting of the legislative body. The reassessments and
the Reassessment Report may be adjusted and finalized upon the establishment of the final
pricing for the sale of the refunding bonds provided that such principal amount of the
reassessment on each subdivision of land within the Reassessment District will be less than the
corresponding unpaid principal amount of the portion of the original assessment being
superseded and supplanted by the same percentage for each subdivision of land within the
Assessment District.
SECTION 3. This City Council hereby authorizes the issuance and sale of refunding
bonds to represent all unpaid reassessments and said refunding bonds shall bear interest at a rate
or rates not to exceed the interest rates set forth in the Reassessment Report for such refunding
bonds, and shall be issued in the manner as provided by the Refunding Act. The last maturity of
said refunding bonds shall not exceed the number of years to the last maturity of the Limited
Obligation hnprovement Bonds.
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SECTION 4. The final reassessment, together with the reassessment diagram, as shall
be set forth in the final Reassessment Report, shall be recorded in the Office of the
Superintendent of Streets upon (a) the running of the limitations period specified in Section 9707
of the Refunding Act without the filing of an action to challenge the validity of the reassessment
and refunding proceedings and/or the issuance of the refunding bonds and (b) the execution of a
bond purchase agreement with a purchase price and at interest rates not to exceed those set forth
in the Reassessment Report. Immediately thereafter a copy of the reassessment diagram shall be
filed in the Office of the County Recorder and a Notice of Reassessment, referencing said
diagram, shall be recorded in the Office of the County Recorder, all pursuant to the provisions of
Division 4.5 of the Streets and Highways Code of the State of California, and specifically
Section 3114. Upon the recordation, the reassessments shall become liens upon the various
parcels of property and land assessed as shown on the reassessment diagram.
From and after the date of such recordation and filing, the assessments originally levied
shall be superseded and supplanted. The lien of the original assessments is not superseded and
supplanted as to any unpaid installments of the assessments originally levied which are now
delinquent and the penalties and interest, if any, thereon. Amounts, if any, received from the
payment of delinquent assessments and the penalties and interest thereon, excluding attorney's
fees and costs and post-judgment interest, if any, shall be deposited into the redemption fund for
the refunding bonds.
SECTION 5. This City Council hereby determines and declares that the City will not
obligate itself to advance available funds from the City treasury to cure any deficiency which
may occur in the bond redemption fund for the refunding bonds.
SECTION 6. A copy of this Resolution confirming the reassessments, which
reassessments shall constitute the security for the refunding bonds, shall be filed in the Office of
the Treasurer, and the Treasurer shall keep the record showing the several installments of
principal and interest on the reassessments which are to be collected each year during the-term of
said refunding bonds. An annual portion of each reassessment, together with annual interest on
said reassessment, shall be payable in the same manner and at the same time and in the same
installment as the general property taxes of the County and shall be payable and become
delinquent at the same time and in the same proportionate amount. Each year the annual
installments shall be submitted to the County Auditor for purposes of collection, and the County
Auditor shall, at the close of the tax collecting season, promptly render to the Treasurer a
detailed report showing the amount of such installments, interest, penalties and percentages so
collected.
SECTION 7. This Resolution shall become effective upon its adoption.
PREPARED BY:
APPROVED AS TO FORM:
~/,flt.d
Maria Kachadoorian
Director of Finance
3
3-21
RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED
OBLIGATION REFUNDING BONDS FOR REASSESSMENT DISTRICT NO. 2005-1,
APPROVING THE FORMS OF BOND INDENTURE, REFUNDING BONDS
PURCHASE AGREEMENT, BOND PURCHASE AGREEMENT AND ESCROW
AGREEMENT AND AUTHORIZING OTHER ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has undertaken
proceedings pursuant to the "Refunding Act of 1984 for 1915 hnprovement Act Bonds" (the "Refunding
Act"), being Division 11.5 of the Streets and Highways Code of the State of California, and has previousl
adopted a resolution approving a report prepared and submitted pursuant to the provisions of the Refunding
Act (the "Reassessment Report") and conditionally confirming reassessments upon lands within a
reassessment district known and designated as Reassessment District No. 2005-1 (the "Reassessment
District"); and,
WHEREAS, such proceedings provide for the issuance of Limited Obligation Refunding Bonds
(defined below) pursuant to the Refunding Act to represent the unpaid reassessments within such
Reassessment District; and,
WHEREAS, at this time, but subj ect to the fmal confirmation of the reassessments to be incorporated
in a final Assessment Engineer's Report and the recordation of the reassessment diagram and notice 0
reassessment, this legislative body desires to set forth all formal terms and conditions relating to the issuance
and sale of such Limited Obligation Refunding Bonds pursuant to the Act as modified by that certain
resolution ofthe City Council adopted on June 7, 2005 and entitled "A Resolution ofthe City Council of the
City of Chula Vista Authorizing and Directing Compliance with the 'Refunding Act of 1984 for 1915
Improvement Act Bonds,' as Modified in this Resolution, in Connection with the Issuance of Limited
Obligation Refunding Bonds for the Purpose of Refunding Certain Assessment District Bonds" (the
"Refunding Act Resolution"); and,
WHEREAS, a portion of the proceeds of the Limited Obligation Refunding Bonds shall be used to
retire, in advance of their scheduled maturities, that portion of the Limited Obligation Refunding Bonds, City
of Chula Vista Reassessment District of 1995 (the "Prior Limited Obligation Refunding Bonds") equal to the
remaining unpaid reassessments levied for the Reassessment District of 1995 within Assessment District No.
87-1 (East "H" Street) and Assessment District No. 88-2 (Otay Lakes Road) the bonds of which were
refunded from the proceeds ofthe Prior Limited Obligation Refunding Bonds; and
WHEREAS, in order to provide the most cost effective refunding of the Prior Limited Obligation
Refunding Bonds, the City Council desires and requests that the Chula Vista Public Financing Authority (the
"Authority") issue, sell and deliver its Refunding Revenue Bonds, Series 2005A in an aggregate principal
amount not to exceed $150,000,000 (the "Authority Bonds") to provide funds to purchase, among other
refunding bonds to be issued by the City or by certain community facilities districts established by the City
(collectively, the "Community Facilities Districts"), the Limited Obligation Refunding Bonds;
1
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WHEREAS, for the purposes of the sale and delivery of the Limited Obligation Refunding Bonds
there are now on file with the City Clerk copies of the forms of the Bond Indenture by and between the Ci
and U.S. Bank National Association, as fiscal agent, establishing the terms and conditions pertaining to th
issuance ofthe Limited Obligation Refunding Bonds (the "Bond Indenture''); the Refunding Bonds Purchas
Agreement by and between the Authority, the City and the Community Facilities Districts related to, amon
other things, the sale of the Limited Obligation Refunding Bonds to the Authority (the "Refunding Bond
Purchase Agreement"); the Escrow Agreement by and between the City and U.S. Bank National Association
as escrow agent (the "Escrow Agreement") and the Bond Purchase Agreement among the Authority, th
City, the Community Facilities Districts and Stone & Youngberg LLC, as underwriter, related to the sale 0
the Authority Bonds (the "Bond Purchase Agreement"); and reference is hereby made thereto for furthe
particulars;
WHEREAS, this City Council has reviewed and considered such Bond Indenture, Refunding Bond
Purchase Agreement, the Escrow Agreement and the Bond Purchase Agreement and finds those document
suitable for approval, subj ect to the conditions set forth in this resolution; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have bee
performed precedent to and in the issuance of the Limited Obligation Refunding Bonds and the levy ofth
reassessments as contemplated by this resolution and the documents referred to herein exist, have happene
and have been performed or have been ordered to have been preformed in due time, form and manner a
required by the laws of the State of California, including the Refunding Act and the Refunding Ac
Resolution.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Refunding Act as modified by the Refunding Ac
Resolution, this Resolution and the Bond Indenture, limited obligation refunding bonds of the City for th
Reassessment District designated as "City of Chula Vista Reassessment District No. 2005-1 Limite
Obligation Refunding Bonds" (the "Limited Obligation Refunding Bonds") in an aggregate principal amoun
not to exceed the unpaid reassessments levied with the Reassessment District are hereby authorized to b
issued. The date, manner of payment, interest rate or rates, denominations, form, registration privileges
manner of execution, place of payment, terms of redemption and other terms, covenants and conditions 0
the Limited Obligation Refunding Bonds shall be as provided in the Bond Indenture as finally executed. Th
interest payment dates for such Limited Obligation Refunding Bonds shall, pursuant to the Refunding Ac
Resolution, be March 1 and September 1 and such bonds shall mature on September 1 as specified in th
Bond Indenture.
SECTION 3. Authorization and Conditions. The City Manager or the Director of Finance and eac
of their specified designees (the "Authorized Officers"), acting for and on behalf of the City, are, and each 0
them is, hereby authorized and directed to execute and deliver the various documents and instrument
described in this Resolution with such changes, insertions and omissions as the Authorized Officer executin
the same may require or approve as being in the best interests of the City subject to any limiting condition
contained herein and further subject to the approval thereof as to form by the City Attorney or her specifie
designee and Best Best & Krieger LLP, the City's bond counsel. The approval of such additions or change
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shall be conclusively evidenced by the execution and delivery of such documents or instruments by th
Authorized Officer.
SECTION 4. Bond Indenture. The form of Bond Indenture with respect to the Limited Obligatio
Refunding Bonds on file in the City Clerk's office is hereby approved.
SECTION 5. Sale of Limited Obligation Refunding Bonds. This City Council hereby authorize
and approves the sale ofthe Limited Obligation Refunding Bonds by negotiation to the Authority. The fo
of the Refunding Bonds Purchase Agreement on file in the City Clerk's office is hereby approved
Notwithstanding the foregoing, the authorization to execute the Refunding Bonds Purchase Agreement i
subject to the satisfaction of the following conditions precedent: (a) that the aggregate principal amount 0
the Limited Obligation Refunding Bonds is equal to or less than the aggregate amount of the unpai
reassessments within the Reassessment District, (b) that the final maturity of the Limited Obligatio
Refunding Bonds shall not exceed the final maturity of the Prior Limited Obligation Refunding Bonds, (c
that the maximum annual interest rate to be paid on the Limited Obligation Refunding Bonds shall no
exceed five and one half percent (5.5%) per annum with the actual rate or rates to be set forth in the Bon
Indenture as executed, and (e) that either (i) the net present value savings resulting from the defeasance an
refunding of the Prior Limited Obligation Refunding Bonds shall be at least four percent (4.00%) ofth
principal amount ofthe Prior Limited Obligation Refunding Bonds or (ii) if such minimum level of pres en
value of savings is not achieved, the City Manger has determined, in his professional judgment followin
consideration of the recommendation of the Director of Finance, that such refunding will result in such
level of annual savings that such refunding will nevertheless be in the best interests ofthe property owner
within the Reassessment District.
SECTION 6. Escrow Agreement. The form of the Escrow Agreement on file in the City Clerk'
office is hereby approved.
SECTION 7. Bond Purchase Agreement. The form ofthe Bond Purchase Agreement on file in th
City Clerk's office is hereby approved.
SECTION 8. Costs ofIssuance. "Designated costs of issuing the refunding bonds" for purposes 0
Subsection 9600(b) and Section 9614 ofthe Refunding Act are the items specified in paragraphs (1) throu
and including (5) of subsection (a) of Section 9600 of the Refunding Act, and "Costs ofIssuance" as suc
phrase is used in the Bond Indenture shall mean such designated costs of issuing the Limited Obligatio
Refunding Bonds.
SECTION 9. Bonds Prepared and Delivered. Upon the execution ofthe Refunding Bonds Purchas
Agreement, the Limited Obligation Refunding Bonds shall be prepared, authenticated and delivered, all i
accordance with the applicable terms of the Refunding Act and the Bond Indenture, and the Authorize
Officers, and each of them, and other responsible City officials are hereby authorized and directed to tak
such actions as are required under the Refunding Bonds Purchase Agreement and the Bond Indenture t
complete all actions required to evidence the delivery of the Limited Obligation Refunding Bonds upon th
receipt ofthe purchase price thereof from the Authority.
SECTION 10. Annual Reassessment Installments. A copy of the resolution confirming th
reassessments and the reassessments, which reassessments shall constitute the security for the Limite
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Obligation Refunding Bonds, shall be delivered to the Treasurer and the Treasurer shall keep or cause to b
kept the record showing the several installments of principal and interest on the reassessments which are t
be collected each year during the term of the Limited Obligation Refunding Bonds. An annual portion 0
each reassessment, together with annual interest on said reassessment, shall be payable in the same manne
and at the same time and in the same installment as the general property taxes of the County of San Dieg
and shall be payable and become delinquent at the same time and in the same proportionate amount. Eac
year the annual installments shall be submitted to the County Auditor for purposes of collection.
SECTION 11. Actions. All actions heretofore taken by the officers and agents of the City wi
respect to the establishment of the Reassessment District and the sale and issuance of the Limited Obligatio
Refunding Bonds are hereby approved, confirmed and ratified, and the proper officers of the City are hereb
authorized and directed to do any and all things and take any and all actions and execute any and al
certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary 0
advisable in order to consummate the lawful issuance and delivery of the Limited Obligation Refundin
Bonds in accordance with the Refunding Act, this Resolution, the Bond Indenture, the Refunding Bond
Purchase Agreement, the Escrow Agreement and the Bond Purchase Agreement and any certificate
agreement, contract, and other document described in the documents herein approved.
SECTION 12. Effective Date. This resolution shall take effect from and after its adoption.
PREPARED BY:
APPROVED AS TO FORM:
Maria Kachadoorian, Director of Finance
~~
~ ore, ty Attorney
4
3-25
RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF
LIMITED OBLIGATION REFUNDING BONDS FOR REASSESSMENT
DISTRICT NO. 2005-2, APPROVING THE FORMS OF BOND INDENTURE,
REFUNDING BONDS PURCHASE AGREEMENT, BOND PURCHASE
AGREEMENT AND ESCROW AGREEMENT AND AUTHORIZING OTHER
ACTIONS IN CONNECTION THEREWITH
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has
undertaken proceedings pursuant to the "Refunding Act of 1984 for 1915 hnprovement Act Bonds"
(the "Refunding Act"), being Division 11.5 of the Streets and Highways Code of the State of
California, and has previously adopted a resolution approving a report prepared and submitted
pursuant to the provisions of the Refunding Act (the "Reassessment Report") and conditionally
confirming reassessments upon lands within a reassessment district known and designated as
Reassessment District No. 2005-2 (the "Reassessment District"); and,
WHEREAS, such proceedings provide for the issuance of Limited Obligation Refunding
Bonds (defined below) pursuant to the Refunding Act to represent the unpaid reassessments within
such Reassessment District; and,
WHEREAS, at this time, but subject to the final confirmation of the reassessments to be
incorporated in a final Assessment Engineer's Report and the recordation of the reassessment
diagram and notice of reassessment, this legislative body desires to set forth all formal terms and
conditions relating to the issuance and sale of such Limited Obligation Refunding Bonds pursuant to
the Act as modified by that certain resolution of the City Council adopted on June 7, 2005 and
entitled "A Resolution of the City Council of the City of Chula Vista Authorizing and Directing
Compliance with the 'Refunding Act of 1984 for 1915 Improvement Act Bonds,' as Modified in this
Resolution, in Connection with the Issuance of Limited Obligation Refunding Bonds for the Purpose
of Refunding Certain Assessment District Bonds" (the "Refunding Act Resolution"); and,
WHEREAS, a portion of the proceeds of the Limited Obligation Refunding Bonds shall be
used to retire, in advance of their scheduled maturities, the City of Chula Vista Assessment District
No. 97-2 (Otay Ranch, Village One) Limited Obligation hnprovement Bonds (the "Prior Limited
Obligation Improvement Bonds"); and
WHEREAS, in order to provide the most cost effective refunding of the Prior Limited
Obligation hnprovement Bonds, the City Council desires and requests that the Chula Vista Public
Financing Authority (the "Authority") issue, sell and deliver its Refunding Revenue Bonds, Series
2005A in an aggregate principal amount not to exceed $150,000,000 (the "Authority Bonds") to
provide funds to purchase, among other refunding bonds to be issued by the City or by certain
community facilities districts established by the City (collectively, the "Community Facilities
Districts"), the Limited Obligation Refunding Bonds;
3-261
WHEREAS, for the purposes of the sale and delivery of the Limited Obligation Refunding
Bonds, there are now on file with the City Clerk copies of the forms of the Bond Indenture by and
between the City and U.S. Bank National Association, as fiscal agent, establishing the terms and
conditions pertaining to the issuance of the Limited Obligation Refunding Bonds (the "Bond
Indenture"); the Refunding Bonds Purchase Agreement by and between the Authority, the City and
the Community Facilities Districts, related to, among other things, the sale of the Limited Obligation
Refunding Bonds to the Authority (the "Refunding Bonds Purchase Agreement"); the Escrow
Agreement by and between the City and U.S. Bank National Association, as escrow agent (the
"Escrow Agreement") and the Bond Purchase Agreement among the Authority, the City, the
Community Facilities Districts and Stone & Youngberg LLC, as underwriter, related to the sale of
the Authority Bonds (the "Bond Purchase Agreement"); and reference is hereby made thereto for
further particulars;
WHEREAS, this City Council has reviewed and considered such Bond Indenture, Refunding
Bonds Purchase Agreement, the Escrow Agreement and the Bond Purchase Agreement and finds
those documents suitable for approval, subject to the conditions set forth in this resolution; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have
been performed precedent to and in the issuance ofthe Limited Obligation Refunding Bonds and the
levy of the reassessments as contemplated by this resolution and the documents referred to herein
exist, have happened and have been performed or have been ordered to have been preformed in due
time, form and manner as required by the laws of the State of California, including the Refunding
Act and the Refunding Act Resolution.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Refunding Act as modified by the
Refunding Act Resolution, this Resolution and the Bond Indenture, limited obligation refunding
bonds of the City for the Reassessment District designated as "City of Chula Vista Reassessment
District No. 2005-2 Limited Obligation Refunding Bonds" (the "Limited Obligation Refunding
Bonds") in an aggregate principal amount not to exceed the unpaid reassessments levied with the
Reassessment District are hereby authorized to be issued. The date, manner of payment, interest rate
or rates, denominations, form, registration privileges, manner of execution, place of payment, terms
of redemption and other terms, covenants and conditions of the Limited Obligation Refunding Bonds
shall be as provided in the Bond Indenture as finally executed. The interest payment dates for such
Limited Obligation Refunding Bonds shall, pursuant to the Refunding Act Resolution, be March 1
and September 1 and such bonds shall mature on September 1 as specified in the Bond Indenture.
SECTION 3. Authorization and Conditions. The City Manager or the Director of Finance
and each of their specified designees (the "Authorized Officers"), acting for and on behalf of the
City, are, and each of them is, hereby authorized and directed to execute and deliver the various
documents and instruments described in this Resolution with such changes, insertions and omissions
as the Authorized Officer executing the same may require or approve as being in the best interests of
the City subject to any limiting conditions contained herein and further subject to the approval
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thereof as to form by the City Attomey or her specified designee and Best Best & Krieger LLP, the
City's bond counsel. The approval of such additions or changes shall be conclusively evidenced by
the execution and delivery of such documents or instruments by the Authorized Officer.
SECTION 4. Bond Indenture. The form of Bond Indenture with respect to the Limited
Obligation Refunding Bonds on file in the City Clerk's office is hereby approved.
SECTION 5. Sale of Limited Obligation Refunding Bonds. This City Council hereby
authorizes and approves the sale of the Limited Obligation Refunding Bonds by negotiation to the
Authority. The form of the Refunding Bonds Purchase Agreement on file in the City Clerk's office
is hereby approved. Notwithstanding the foregoing, the authorization to execute the Refunding
Bonds Purchase Agreement is subj.ect to the satisfaction of the following conditions precedent: (a)
that the aggregate principal amount of the Limited Obligation Refunding Bonds is equal to or less
than the aggregate amount of the unpaid reassessments within the Reassessment District, (b) that the
final maturity of the Limited Obligation Refunding Bonds shall not exceed the final maturity of the
Prior Limited Obligation Improvement Bonds, (c) that the maximum annual interest rate to be paid
on the Limited Obligation Refunding Bonds shall not exceed five and one half percent (5.5%) per
annum with the actual rate or rates to be set forth in the Bond Indenture as executed, and (e) that
either (i) the net present value savings resulting from the defeasance and refunding of the Prior
Limited Obligation Improvement Bonds shall be at least four percent (4.00%) of the principal
amount of the Prior Limited Obligation Improvement Bonds or (ii) or (ii) if such minimum level of
present value of savings is not achieved, the City Manger has determined, in his professional
judgment following consideration of the recommendation of the Director of Finance, that such
refunding will result in such a level of annual savings that such refunding will nevertheless be in the
best interests of the property owners within the Reassessment District.
SECTION 6. Escrow Agreement. The form of the Escrow Agreement on file in the City
Clerk's office is hereby approved.
SECTION 7. Bond Purchase Agreement. The form of the Bond Purchase Agreement on file
in the City Clerk's office is hereby approved.
SECTION 8. Costs of Issuance. "Designated costs of issuing the refunding bonds" for
purposes of Subsection 9600(b) and Section 9614 of the Refunding Act are the items specified in
paragraphs (1) through and including (5) of subsection (a) of Section 9600 of the Refunding Act, and
"Costs ofIssuance" as such phrase is used in the Bond Indenture shall mean such designated costs of
issuing the Limited Obligation Refunding Bonds.
SECTION 9. Bonds Prepared and Delivered. Upon the execution of the Refunding Bonds
Purchase Agreement, the Limited Obligation Refunding Bonds shall be prepared, authenticated and
delivered, all in accordance with the applicable terms of the Refunding Act and the Bond Indenture,
and the Authorized Officers, and each of them, and other responsible City officials are hereby
authorized and directed to take such actions as are required under the Refunding Bonds Purchase
Agreement and the Bond Indenture to complete all actions required to evidence the delivery of the
Limited Obligation Refunding Bonds upon the receipt of the purchase price thereof from the
Authority.
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SECTION 10. Annual Reassessment Installments. A copy of the resolution confirming the
reassessments and the reassessments, which reassessments shall constitute the security for the
Limited Obligation Refunding Bonds, shall be delivered to the Treasurer and the Treasurer shall keep
or cause to be kept the record showing the several installments of principal and interest on the
reassessments which are to be collected each year during the term of the Limited Obligation
Refunding Bonds. An annual portion of each reassessment, together with annual interest on said
reassessment, shall be payable in the same manner and at the same time and in the same installment
as the general property taxes of the County of San Diego and shall be payable and become delinquent
at the same time and in the same proportionate amount. Each year the annual installments shall be
submitted to the County Auditor for purposes of collection.
SECTION 11. Actions. All actions heretofore taken by the officers and agents of the City
with respect to the establishment of the Reassessment District and the sale and issuance of the
Limited Obligation Refunding Bonds are hereby approved, confirmed and ratified, and the proper
officers of the City are hereby authorized and directed to do any and all things and take any and all
actions and execute any and all certificates, agreements, contracts, and other documents, which they,
or any of them, may deem necessary or advisable in order to consummate the lawful issuance and
delivery of the Limited Obligation Refunding Bonds in accordance with the Refunding Act, this
Resolution, the Bond Indenture, the Refunding Bonds Purchase Agreement, the Escrow Agreement
and the Bond Purchase Agreement and any certificate, agreement, contract, and other document
described in the documents herein approved.
SECTION 12. Effective Date. This resolution shall take effect from and after its adoption.
PREPARED BY:
APPROVED AS TO FORM:
Maria Kachadoorian, Director of Finance
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RESOLUTION NO. 2005-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 97-3 (OTAY RANCH MCMILLIN SPA ONE),
COMMUNITY FACILITIES DISTRICT NO. 99-1 (OT A Y RANCH SPA ONE -
PORTIONS OF VILLAGE ONE, VILLAGE FIVE AND VILLAGE ONE WEST),
COMMUNITY FACILITIES DISTRICT NO. 2000-1 (SUNBOW II - VILLAGES 5
THROUGH 10), COMMUNITY FACILITIES DISTRICT NO. 2001-1 (SAN
MIGUEL RANCH) AND COMMUNITY FACILITIES DISTRICT NO. 06-1
(EASTLAKE - WOODS, VISTAS AND LAND SWAP), AUTHORIZING AND
PROVIDING FOR THE ISSUANCE OF SEPARATE SERIES OF SPECIAL TAX
REFUNDING BONDS OF EACH SUCH COMMUNITY FACILITIES DISTRICTS,
APPROVING THE FORMS OF BOND INDENTURES FOR EACH SUCH SERIES
OF SUCH REFUNDING BONDS, A REFUNDING BONDS PURCHASE
AGREEMENT AND ESCROW AGREEMENTS FOR EACH SERIES OF
REFUNDED BONDS, AND AUTHORIZING OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, this City Council has conducted proceedings under and pursuant to the Mello-
Roos Community Facilities Act of 1982, being Chapter 2.5 of Part 1 of Division 2 of Title 5,
commencing with Section 53311, of the California Govemment Code (the "Act"), to form
Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One) ("CFD No. 97-3"),
Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village
Five and Village One West) ("CFD No. 99-1 "), Community Facilities District No. 2000-1 (Sunbow
II - Villages 5 through 10) ("CFD No. 2000-1"), Community Facilities District No. 2001-1 (San
Miguel Ranch) and Improvement Area A therein ("CFD No. 2001-1") and Community Facilities
District No. 06-1 (EastLake - Woods, Vistas and Land Swap) and hnprovement Area A therein
("CFD No. 06-1" and, together with CFD No. 97-3, CFD No. 99-1, CFD No. 2000-1 and CFD No.
2001-1, the "Districts" or each, a "District"), to authorize the levy of special taxes upon the land
within each such District, and to issue bonds for each such District secured by the special taxes
authorized to be levied therein for the purpose of financing the acquisition or construction of
authorized public facilities; and
WHEREAS, the Districts have each previously issued special tax bonds identified in Exhibit
A attached hereto and incorporated herein by this reference (collectively, the "Prior Special Tax
Bonds"); and
WHEREAS, as a result of a combination of favorable conditions in the municipal bond
market and the level of development, diversity of ownership and increase in value of the properties
within each of the Districts for which the Prior Special Tax Bonds were issued and sold, this City
Council, acting as the legislative body of each of the Districts, desires to issue a separate series
special tax refunding bonds (collectively, the "Special Tax Refunding Bonds" or the "Bonds") for the
purpose of defeasing and redeeming the series of Prior Special Tax Bonds issued by each such
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District prior to their scheduled maturity m order to reduce the borrowing costs on such
indebtedness; and
WHEREAS, the reduction in such borrowing costs will, in turn, result in a reduction in the
rate of special taxes necessary to be levied within each of the Districts thereby resulting in savings to
the owners ofthe properties subject to the levy of such special taxes; and
WHEREAS, the City Council proposes to sell each series of the Special Tax Refunding
Bonds to the Chula Vista Public Facilities Authority (the "Authority"); and
WHEREAS, for the purposes of the issuance, sale and delivery of each series ofthe Special
Tax Refunding Bonds, there are now on file with the City Clerk copies of the forms of:
A. a separate Bond Indenture by and between the applicable District and U.S. Bank
National Association, as fiscal agent (the "Fiscal Agent"), establishing the terms and
conditions pertaining to the issuance of each series of the Special Tax Refunding
Bonds (each, a "Bond Indenture" and, collectively, the "Bond Indentures");
B. the Refunding Bonds Purchase Agreement by and between the Authority and each of
the Districts and the City related to the sale ofthe Special Tax Refunding Bonds and
certain limited obligation refunding bonds to be issued by the City for certain
assessment districts within the City (the "Refunding Bonds Purchase Agreement");
C. an Escrow Agreement by and between the applicable District and U.S. Bank National
Association, as escrow agent, for each series of the Prior Special Tax Bonds to
provide for the defeasance and redemption of each series of the Prior Special Tax
Bonds (each, an "Escrow Agreement" and, collectively, the "Escrow Agreements");
and
D. the Bond Purchase Agreement by and among the Authority, the City, the Districts
and Stone & Youngberg LLC (the "Underwriter") relating to the purchase by the
Underwriter of the Authority's Revenue Refunding Bonds, Series 2005A (the
"Authority Bonds") (the "Bond Purchase Agreement").
WHEREAS, this City Council has reviewed and considered the Bond Indentures, the
Refunding Bonds Purchase Agreement, the Bond Purchase Agreement and the Escrow Agreements
and finds those documents suitable for approval, subject to the conditions set forth in this resolution;
and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have
been performed precedent to and in the issuance of the Special Tax Refunding Bonds as
contemplated by this resolution and the documents referred to herein exist, have happened and have
been performed or have been ordered to have been preformed in due time, form and manner as
required by the laws of the State of California, including the Act.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
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SECTION 1.
Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Act, this Resolution and the Bond
Indentures, the Special Tax Refunding Bonds are hereby authorized to be issued. The date, manner
of payment, interest rate or rates, interest payment dates, denominations, form, registration
privileges, manner of execution, place of payment, terms of redemption and other terms, covenants
and conditions of each series of the Special Tax Refunding Bonds shall be as provided in each
respective Bond Indenture as finally executed.
In furtherance of the issuance of the Special Tax Refunding Bonds, the City Council hereby
makes the following findings and determinations: (a) it is prudent in the management ofthe fiscal
affairs of the City and each of the Districts to issue the Special Tax Refunding Bonds for the
purpose, inter alia, of defeasing and redeeming the Prior Special Tax Bonds, (b) the total net interest
cost to maturity ofthe each series of the Special Tax Refunding Bonds plus the principal amount of
each series of such Special Tax Refunding Bonds will not exceed the total net interest cost to
maturity ofthe series of the Prior Special Tax Bonds plus the principal amount ofthe series of the
Prior Special Tax Bonds being defeased and refunded from the proceeds of such series of Special
Tax Refunding Bonds, and (c) the issuance of each series ofthe Special Tax Refunding Bonds is in
compliance with the City's Goals and Policies for Community Facilities Districts. The principal
amount of the each series of Special Tax Refunding Bonds will be less than one fourth of the value
of the property within the applicable District, as applicable, subject to the levy of the special taxes
authorized under the Act securing such series of Special Tax Refunding Bonds, as confirmed by the
aggregate assessed value of taxable parcels in such District.
For purposes of Section 53363.2 of the Act, the City Council hereby further finds and
determines that: (a) it is expected that the purchase of each series of the Special Tax Refunding
Bonds will occur on the Closing Date (as such term is defined in each of the Bond Indentures), (b)
the date, denomination, maturity dates, places of payment and form of each series of the Special Tax
Refunding Bonds shall be as set forth in the applicable Bond Indenture, as executed, (c) the
maximum annual interest rate to be paid on each series of Special Tax Refunding Bonds shall be five
and one half percent (5.5%) per annum with the actual rate or rates to be set forth in each Bond
Indenture as executed, (d) that either (i) the net present value savings resulting from the defeasance
and refunding of each series of the Prior Special Tax Bonds shall be at least four percent (4.00%) of
the principal amount of such series of the Prior Special Tax Bonds or (ii) for any series of the Prior
Special Tax Bonds where such minimum level of present value of savings is not achieved, the City
Manger has determined, in his professional judgment following consideration of the
recommendation of the Director of Finance, that such refunding will result in such a level of annual
savings that such refunding will nevertheless be in the best interests of the affected property owners;
(e) the place of payment for each series of the Prior Special Tax Bonds shall be as set forth in the
applicable Bond Indenture; and (f) the designated costs of issuing each series of the Special Tax
Refunding Bonds shall be as described in Section 53363.8(a) ofthe Act, and as otherwise described
in the applicable Bond Indenture, in the Official Statement for the Authority Bonds to finance the
acquisition of the Special Tax Refunding Bonds and the closing certificates for the Special Tax
Refunding Bonds, including but not limited to, a proportionate share of the fees and expenses of
bond counsel, financial advisor, special tax consultant, fiscal agent, escrow agent and escrow
verification agent, purchaser's discount, costs of issuance of the Authority Bonds, fees for credit
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enhancement and ratings on the Authority Bonds, and costs of City staff incurred in connection with
the sale and issuance of the Authority Bonds and the Special Tax Refunding Bonds.
SECTION 3. Authorization and Conditions. The City Manager of the City or the
Director of Finance and each oftheir specified designees (the "Authorized Officers"), acting for and
on behalf of the Districts, are, and each of them is, hereby authorized and directed to execute and
deliver the various documents and instruments described in this Resolution with such changes,
insertions and omissions as the Authorized Officer executing the same may require or approve as
being in the best interests of the Districts subject to any limiting conditions contained herein and
further subject to the approval thereof as to form by the City Attorney or her specified designee and
Best Best & Krieger LLP, bond counsel. The approval of such additions or changes shall be
conclusively evidenced by the execution and delivery of such documents or instruments by the
Authorized Officer.
SECTION 4. Bond Indentures. The form of each of the Bond Indentures on file in the
City Clerk's officer is hereby approved.
SECTION 5. Sale of Soecial Tax Refunding Bonds. This City Council hereby
authorizes and approves the sale of the Special Tax Refunding Bonds by negotiation to the
Authority. The form ofthe Refunding Bonds Purchase Agreement on file in the City Clerk's office
is hereby approved. Notwithstanding the foregoing, the authorization to execute the Refunding
Bonds Purchase Agreement is subject to the satisfaction of the following conditions precedent: (a)
that the aggregate principal amount of each series of the Special Tax Refunding Bonds is equal to or
less than the principal amount set for in Exhibit B hereto for such series, (b) that the fma1 maturity of
each series of the Special Tax Refunding Bonds shall not exceed the final maturity of the applicable
series of the Prior Special Tax Bonds being refunded with the proceeds of Special Tax Refunding
Bonds, (c) that the maximum interest rate on the Special Tax Refunding Bonds does not exceed the
maximum interest rate specified in Section 2 above and (d) that the minimum level of savings
specified in Section 2 above for each series of the Prior Special Tax Bonds being defeased and
redeemed is achieved.
SECTION 6. Bond Purchase Agreement. The form of the Bond Purchase Agreement on
file in the City Clerk's office is hereby approved.
SECTION 7. Escrow Agreement. The form of each of the Escrow Agreement on file in
the City Clerk's office is hereby approved.
SECTION 8. Actions. All actions heretofore taken by the officers and agents of the
City, acting for and on behalf of each of the Districts, with respect to the sale and issuance of each
series of the Special Tax Refunding Bonds are hereby approved, confirmed and ratified, and the
proper officers of the City, acting for and on behalf of each of the Districts, are hereby authorized
and directed to do any and all things and take any and all actions and execute any and all certificates,
agreements, contracts, and other documents, which they, or any of them, may deem necessary or
advisable in order to consummate the lawful issuance and delivery of each series of the Special Tax
Refunding Bonds in accordance with the Act, this Resolution, the applicable Bond Indenture, the
Refunding Bonds Purchase Agreement, the Bond Purchase Agreement, the applicable Escrow
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Agreement and any certificate, agreement, contract, and other document described in the documents
herein approved and to consummate the lawful issuance and delivery of the Authority Bonds.
SECTION 9.
adoption.
Effective Date. This resolution shall take effect from and after its
PREPARED BY:
APPROVED AS TO FORM:
~.floJ
~MOO ,Ci t ey
Maria Kachadoorian, Director of Finance
5
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EXHIBIT A
PRIOR SPECIAL TAX BONDS
1. City of Chula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa
One) Special Tax Bonds issued in the original principal amount of$11,825,000;
2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One-
Portions of Village One, Village Five and Village One West) 1999 Special Tax Bonds issued in
the original principal amount of$23,000,000;
3. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One -
Portions of Village One, Village Five and Village One West) 2001 Special Tax Bonds issued in
the original principal amount of $19,000,000;
4. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5
through 10) 2000 Special Tax Bonds issued in the original principal amount of$7,385,000;
5. City ofChula Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2002
Improvement Area A Special Tax Bonds issued in the original principal amount of$14,425,000;
and
6. City ofChula Vista Community Facilities District No. 06-1 (EastLake - Woods, Vistas
and Land Swap) 2002 Improvement Area A Special Tax Bonds issued in the original principal
amount of$39,000,000.
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EXHIBIT B
SPECIAL TAX REFUNDING BONDS
1. City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa
One) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed
$12,500,000;
2. City of Chula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One-
Portions of Village One, Village Five and Village One West) 2005 Special Tax Refunding Bonds
to be issued in a principal amount not to exceed $47,500,000;
3. City ofChula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5
through 10) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed
$8,000,000;
4. CityofChula Vista Community Facilities District No. 2001-1 (SanMiguel Ranch) 2005
hnprovement Area A Special Tax Refunding Bonds to be issued in a principal amount not to
exceed $16,000,000; and
5. City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods, Vistas
and Land Swap) 2005 Improvement Area A Special Tax Refunding Bonds to issued in a
principal amount not to exceed $47,000,000.
B-1
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RESOLUTION NO. 2005-
RESOLUTION OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF
THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF
REFUNDING REVENUE BONDS, APPROVING THE FORMS OF AN
INDENTURE OF TRUST, BOND PURCHASE CONTRACT, REFUNDING
BONDS PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT
AND CONTINUING DISCLOSURE AGREEMENT AND AUTHORIZING
OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the CHULA VISTA PUBLIC FINANCING AUTHORITY (the "Authority") is
a public agency organized under the Joint Exercise of Powers Law of the State of California and is
authorized pursuant to said law and the Joint Exercise of Powers Agreement creating the Authority
to assist in financing or refinancing of public capital facilities improvements of the City ofChula
Vista (the "City") or the Redevelopment Agency of the City ofChu1a Vista (the "Agency"); and
WHEREAS, as a result of a combination of favorable conditions in the municipal bond
market and the level of development, diversity of ownership and increase in value ofthe properties
within certain assessment districts and community facilities previously established by the City for the
purpose of financing the acquisition or construction of public improvements required to serve new
development within such districts, the City and such certain community facilities districts identified
below desire and request that the Authority issue, sell and deliver its Revenue Refunding Bonds,
Series 2005A (the "Series 2005A Bonds") in an aggregate principal amount not to exceed
$150,000,000 to provide funds to purchase certain limited obligation refunding bonds to be issued by
the City and certain special tax refunding bonds (each series of such limited obligation refunding
bonds and such special tax refunding bonds are identified in Exhibit A attached hereto and
incorporated herein by this reference and are collectively referred to as the "Refunding Bonds") to be
issued by the following community facilities districts (individually, a "District" and, collectively, the
"Districts"):
A. Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One);
B. Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village
One, Village Five and Village One West);
C. Community Facilities District No. 2000-1 (Sunbow II - Villages 5 through 10:
D. Community Facilities District No. 2001-1 (San Miguel Ranch); and
E. Community Facilities District No. 06-1 (EastLake - Woods, Vistas and Land Swap);
and
WHEREAS, the City and the Districts desire to utilize the proceeds ofthe Refunding Bonds
to defease and refund certain limited obligation improvement bonds, certain limited obligation
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refunding bonds and the corresponding bonds of the Authority and certain special tax bonds, each
series of which is identified in Exhibit B attached hereto and incorporated herein by this reference
(collectively, the "Prior Bonds"); and
WHEREAS, the Series 2005A Bonds are to be offered for negotiated sale to Stone &
Youngberg LLC (the "Underwriter"); and
WHEREAS, there has been prepared and filed with the Secretary ofthis Board of Directors
the forms of the Indenture of Trust by and between the Authority and U.S. Bank National
Association, as trustee (the "Indenture of Trust") establishing the terms and conditions pertaining to
the issuance, sale and administration of the Series 2005A Bonds; the preliminary official statement
describing the Authority, the City, the Districts, Reassessment District Nos. 2005-1 and 2005-2 and
the Series 2005A Bonds (the "Preliminary Official Statement"); the Bond Purchase Agreement by
and among the Authority, the City, the Districts and the Underwriter related to the purchase of the
Series 2005A Bonds (the "Bond Purchase Agreement") by the Underwriter; the Refunding Bonds
Purchase Agreement by and between the Authority, the City and the Districts related to the purchase
of the Refunding Bonds (the "Refunding Bonds Purchase Agreement") by the Authority and the
Continuing Disclosure Agreement by and between the Authority and U.S. Bank Trust National
Association, as the Dissemination Agent, to provide continuing disclosure of certain information
specified therein (the "Continuing Disclosure Agreement"), which forms have been reviewed by this
Board of Directors; and
WHEREAS, the Authority desires to authorize the issuance and sale of the Series 2005A
Bonds, the distribution of the Preliminary Official Statement, and the purchase of the Refunding
Bonds.
NOW, THEREFORE, BE IT RESOLVED, AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Approval of Issuance and Sale of Series 2005A Bonds. This Board of
Directors hereby approves the issuance and sale of the Series 2005A Bonds by negotiated sale to the
Underwriter. The proceeds of the Series 2005A Bonds shall be expended to purchase the Refunding
Bonds.
SECTION 3. Indenture of Trust. The form of the Indenture of Trust relating to the Series
2005A Bonds presented at this meeting is hereby approved. The Executive Director or the Chief
Financial Officer ofthe Authority and each of their specified designees (the "Authorized Officers"),
acting for and on behalf ofthe Authority, are, and each of them is, hereby authorized and directed to
execute, acknowledge and deliver the Indenture of Trust in substantially the form approved hereby,
with such changes, insertions and omissions as the Authorized Officer executing the same may
require or approve as being in the best interests of the Authority, and as approved as to form by the
legal advisor to the Authority or her specified designee and bond counsel, such approval to be
conclusively evidenced by the execution and delivery thereof by such Authorized Officer.
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SECTION 4. Bond Purchase Agreement. The form of the Bond Purchase Agreement by
and among the Authority, the City, the Districts and the Underwriter presented at this meeting and
the sale of the Series 2005A Bonds pursuant thereto is hereby approved. The Authorized Officers,
acting for and on behalf of the Authority, are, and each of them is, hereby authorized and directed to
evidence the Authority's acceptance of the terms and provisions of the Bond Purchase Agreement by
executing and delivering the Bond Purchase Agreement, with such changes, insertions and omissions
as the Authorized Officer executing the same may require or approve as being in the best interests of
the Authority, and as approved as to form by the legal advisor to the Authority or her specified
designee and bond counsel, such approval to be conclusively evidenced by the execution and
delivery thereofby one or more of such Authorized Officers; provided, however, that the Authorized
Officer shall execute the Bond Purchase Agreement only if: (a) the aggregate principal amount of
the Series 2005A Bonds is equal to or less than $150,000,000, (b) the compensation paid to or
received by the Underwriter with respect to the Series 2005A Bonds does not exceed eighty five
hundredths percent (0.85%) oftheprincipal amount of the Series A Bonds, (c) the maximum annual
interest rate to be paid on the Series 2005A Bonds shall not exceed five and one half percent (5.5%)
per annum with the actual rate or rates to be set forth in the Indenture of Trust as executed, (d) that
either (i) the net present value savings resulting from the defeasance and refunding of each series of
the Prior Bonds shall be at least four percent (4.00%) of the principal amount of such series of the
Prior Bonds or (ii) for any series of the Prior Bonds where such minimum level of present value of
savings is not achieved, the City Manger has determined, in his professional judgment following
consideration of the recommendation ofthe Director of Finance, that such refunding will result in
such a level of annual savings that such refunding will nevertheless be in the best interests of the
affected property owners, and ( e) that the final maturity of the Series 2005A Bonds shall not be later
than September 1, 2033.
SECTION 5. Aporoval ofPreliminarv Official Statement and Final Official Statement. The
form of Preliminary Official Statement presented at this meeting is hereby approved. The Authorized
Officers, acting for and on behalf of the Authority, are, and each of them is, hereby authorized and
directed to approve such changes, insertions and omissions therein as are necessary to enable such
Authorized Officer to certify on behalf of the Authority that the approved Preliminary Official
Statement is deemed final as of its date except for the omission of certain information as permitted
by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations. The Authorized
Officers, acting for and on behalf of the Authority, are, and each of them is further authorized and
directed to cause the Authority to bring the Preliminary Official Statement into the form of a final
official statement (the "Final Official Statement") and to execute a statement that the facts contained
in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed an
original part thereoffor the purpose of such statement) were, at the time of sale of the Series 2005A
Bonds, true and correct in all material respects and that the Final Official Statement did not, on the
date ofsa1e ofthe Series 2005A Bonds, and does not, as of the date of delivery of the Series 2005A
Bonds, contain any untrue statement of a material fact with respect to the Authority and the Series
2005A Bonds or omit to state material facts with respect to the Authority and the Series 2005A
Bonds required be stated where necessary to make any statement made therein not misleading in the
light of the circumstances under which it was made. The Underwriter is hereby authorized to
distribute copies of the Preliminary Official Statement to persons who may be interested in the
3
3-39
purchase of the Series 2005A Bonds and is directed to deliver copies of the Final Official Statement
to all actual purchasers of the Series 2005A Bonds from the Underwriter acting in such capacity.
SECTION 6. Continuing Disclosure Agreement. The form of the Continuing Disclosure
Agreement presented at this meeting is hereby approved. The Authorized Officers, acting for and on
behalf of the Authority, are, and each of them is, hereby authorized and directed to execute,
acknowledge and deliver the Continuing Disclosure Agreement in substantially the form approved
hereby, with such changes, insertions and omissions as the Authorized Officer executing the same
may require or approve as being in the best interests of the Authority, and as approved as to form by
the legal advisor to the Authority or her specified designee and bond counsel, such approval to be
conclusively evidenced by the execution and delivery thereof by such Authorized Officer.
SECTION 7. Refunding Bonds Purchase Agreement. The form of the Refunding Bonds
Purchase Agreement by and between the Authority and the City, on behalf of the Reassessment
District Nos. 2005-1 and 2005-2, presented at this meeting and the acquisition by the Authority of
the Refunding Bonds pursuant thereto is hereby approved. The Authorized Officers, acting for and
on behalf of the Authority, are, and each of them is, hereby authorized and directed to evidence the
Authority's acceptance ofthe terms and provisions ofthe Refunding Bonds Purchase Agreement by
executing and delivering the Refunding Bonds Purchase Agreement, with such changes, insertions
and omissions as the Authorized Officer executing the same may require or approve as being in the
best interests of the Authority, and as approved as to form by the legal advisor to the Authority or her
specified designee and bond counsel, such approval to be conclusively evidenced by the execution
and delivery thereof by such Authorized Officer.
SECTION 8. Official Action. The Chairperson, the Vice-Chairperson, the Executive
Director, the Chief Financial Officer, the Secretary, the Authorized Officers and any and all other
officers of the Authority are hereby authorized and directed, jointly and severally, for and in the
name of the Authority, to do any and all things and take any and all actions, including without
limitation, the execution and delivery of any and all assignments, certificates, requisitions,
agreements, notices, consents, instruments of conveyance, warrants and other documents which they,
or any of them, may deem necessary and advisable in order to consummate the transactions
contemplated by the documents approved pursuant to this Resolution and any such actions
previously taken by such officers are hereby ratified and confirmed. In the event any such officer is
unavailable or unable to execute and deliver any of the above-referenced documents, any other
officer of the Authority may validly execute and deliver such document.
SECTION 9. Bond Rating. The Authorized Officers are, and each of them is, with the
assistance of Fieldman Rolapp & Associates, acting as the financial advisor to the Authority
regarding the Series 2005A Bonds (the "Financial Advisor"), and the Underwriter, hereby authorized
to apply for a rating on the Series 2005A Bonds with any nationally recognized rating agency an
Authorized Officer deems advisable. Additionally, such Authorized Officers, with the assistance of
the Financial Advisor and the Underwriter, are hereby authorized to apply for and accept a
commitment to provide municipal bond insurance and to provide a municipal bond debt service
reserve fund policy for the Series 2005A Bonds. Such Authorized Officers are, and each of them is,
hereby authorized to execute any commitment letter and to do any and all other things and to deliver
4
3-40
any and all documents necessary or advisable in order to obtain such municipal bond insurance and
municipal bond debt service reserve fund policy, if any, for the Series 2005A Bonds.
SECTION 10.
passage and adoption.
Effective Date. This Resolution shall take effect immediately upon its
PREPARED BY:
APPROVED AS TO FORM:
Maria Kachadoorian
Chief Financial Officer
C/\,Ann 00
av -Gen ral Counsel to the Authority
5
3-41
EXHIBIT A
REFUNDING BONDS
I. City of Chula Vista Reassessment District No. 2005-1 2005 Limited Obligation Refunding
Bonds to be issued in a principal amount not to exceed $8,000,000;
2. City ofChula Vista Reassessment District No 2005-2 2005 Limited Obligations Refunding
Bonds to be issued in a principal amount not to exceed $11,000,000;
3. CityofChula Vista Community Facilities District No. 97-3 (OtayRanchMcMillin Spa One)
2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed $12,500,000;
4. City ofChula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions
of Village One, Village Five and Village One West) 2005 Special Tax Refunding Bonds to be issued
in a principal amount not to exceed $47,500,000;
5. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5
through 10) 2005 Special Tax Refunding Bonds to be issued in a principal amount not to exceed
$8,000,000;
6. City of Chula Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2005
Improvement Area A Special Tax Refunding Bonds to be issued in a principal amount not to exceed
$16,000,000; and
7. City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods, Vistas and
Land Swap) 2005 hnprovement Area A Special Tax Refunding Bonds to issued in a principal
amount not to exceed $47,000,000.
A-I
3-42
EXHIBIT B
PRIOR BONDS
1. City ofChula Vista Assessment District No. 97-2 (OtayRanch, Spa One) Limited Obligation
Improvement Bonds in the original principal amount of $12,430,000.
2. $ of the outstanding principal amount of the Limited Obligation Refunding
Improvement Bonds, City of Chula Vista, Reassessment District of 1995 (the "1995 Limited
Obligation Refunding Improvement Bonds") and, as a result ofthe defeasance and refunding ofthe
1995 Limited Obligation Refunding Bonds, $ of the outstanding principal amount ofthe
Chula Vista Public Financing Authority Local Agency Revenue Bonds (1995 Assessment Bond
Refinancing), Series A and $ of the outstanding principal amount of the Chula Vista Public
Financing Authority Local Agency Subordinated Revenue Bonds (1915 Assessment Bond
Refinancing), Series B;
3. City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One)
Special Tax Bonds issued in the original principal amount of$11,825,000;
4. City ofChula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions
of Village One, Village Five and Village One West) 1999 Special Tax Bonds issued in the original
principal amount of $23,000,000;
5. City ofChula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions
of Village One, Village Five and Village One West) 2001 Special Tax Bonds issued in the original
principal amount of$19,000,000;
6. City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5
through 10) 2000 Special Tax Bonds issued in the original principal amount of$7,385,000;
7. City of Chula Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2002
hnprovement Area A Special Tax Bonds issued in the original principal amount of$14,425,000; and
8. City of Chula Vista Community Facilities District No. 06-1 (EastLake - Woods, Vistas and
Land Swap) 2002 hnprovement Area A Special Tax Bonds issued in the original principal amount of
$39,000,000.
B-1
3-43
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Stradling Y occa Carlson & Ruth
Draft of May 17, 005
PRELIMINARY OFFICIAL STATEMENT DATED
NEW ISSUE-BOOK-ENTRY ONLY
,2005
RATINGS; Insured Rat ngs:
Moody's: _ S&P _
Underlying Ra ngs:
S&P
Moody's _
In the opinion of Best Best & Krieger, LLP, San Diego, California, Bond Counsel, subject to certain qualifications described herein. under existing laws,
regulations, rulings and court decisions, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item for purp es of
the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax impo d on
certain corporations, such interest is taken into account in determining certain income and earnings. In the further opinion of Bond Counsel, such inte est is
exempt from California personal income taxes. See the information contained herein under the caption "CONCLUDING INFORMATION-Tax Matters" and
theform of opinions of Bond Counsel attached hereto as APPENDIX C.
COUNTY OF SAN DIEGO
STATE OF CALIFO
IA
$138,920,000'
CHULA VISTA PUBLIC FINANCING AUTHORITY
REVENUE REFUNDING BONDS
SERIES 2005A
Dated: Date of Delivery Due: September 1, as shown on the inside cover page
The Chula Vista Public Financing Authority Revenue Refunding Bonds (2005 Pooled Refinancing), Series 2005A (the "Bonds"), are being issued y the
Chula Vista Public Financing Authority (the "Authority") pursuant to an Indenture of Trust, dated as of July 1, 2005 (the "Indenture"), by and betwe the
Authority and U.S. Bank National Association, as trustee (the "Trustee"), and will be secured as described herein. See "SECURITY FOR THE BONDS."
The Bonds are being issued to purchase limited obligation refunding bonds (the "Reassessment Bonds") and special tax refunding bonds (the CFD
Refunding Bonds"), referred to herein as the "Local Obligations". The Reassessment Bonds are being issued by the City of Chula Vista (the "City") pursu t to
the Refunding Act of 1984 for 1915 Improvement Act Bonds (Division 11.5 of the California Streets and Highways Code) (the "Refunding Act") and ill be
secured by certain unpaid reassessments levied by the City pursuant to the Refunding Act. The Reassessment Bonds are being issued to refund c rtain
outstanding local agency revenue bonds of the Authority and certain outstanding limited obligation improvement bonds of the City. The CFD Refunding onds
are being issued by various community facilities districts of the City pursuant to the Mello.Roos Community Facilities Act of 1982, as amended (Section 3311
et seq. of the Government Code of the State of California) (the "CFD Act") and will be secured by special tax liens on taxable property within the resp ctive
community facilities districts. The CFD Refunding Bonds are being issued to refund certain special tax bonds of the various community facilities districts See
"THE FINANCING PLAN" herein. See "INTRODUCTION-Local Obligations" herein.
The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of The Depository rust
Company ("DTC"), New York, New York. Interest on the Bonds will be payable on September 1 and March I of each year, commencing March 1, 006.
Purchasers will not receive certificates representing their interest in the Bonds. Individual purchases of Bonds will be in principal amounts of $5,000 or i any
integral multiple of $5,000. Payments of principal and interest will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants wh will
remit such payments to the beneficial owners of the Bonds.
The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as set forth herein. See "THE BONDS-Redemption" he in.
The scheduled payment of the principal of and interest on the Bonds when due will be guaranteed under a municipal bond insurance policy to be i sued
concurrently with the delivery of the Bonds by
[BOND INSURER LOGOI
The Bonds are special, limited obligations of the Authority, payable solely from Revenues (as defmed herein), consisting of debt service pa ents
on the Local Obligations received by the Trustee, as the registered owner of the Local Obligations, and amounts in certain funds and accounts pI dged
under the Indenture. Debt service payments on the Local Obligations are calculated to be sufficient to permit the Authority to pay debt service 0 the
Bonds when due. The City has determined that it will not obligate itself to advance funds from its treasury to cover any delinquency on the ocal
Obligations.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE STATE OF CALIFORNIA OR ANY POLlT CAL
SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER. EXCEPT FOR THE
REVENUES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENE OR
SPECIAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF THE AUTHORITY. BUT ARE SPECIAL, LIMITED OBLIGATION OF
THE AUTHORITY PAYABLE EXCLUSIVELY FROM REVENUES AS PROVIDED IN THE INDENTURE, AS MORE FULLY DESCRIBED HE IN.
THE LOCAL OBLIGATIONS OF EACH ISSUE ARE LIMITEP OBLIGATIONS OF THE CITY AND THE RESPECTIVE COMMUNITY FACIL IES
DISTRICTS. PAYABLE SOLELY FROM THE REASSESSMENTS LEVIED WITHIN THE REASSESSMENT DISTRICTS AND SPECIAL T S
LEVIED WITHIN THE COMMUNITY FACILITIES DISTRICTS AND THE OTHER ASSETS PLEDGED THEREFOR UNDER THE L AL
OBLIGATIONS INDENTURES PURSUANT TO WHICH SUCH LOCAL OBLIGATIONS ARE ISSUED. NEITHER THE FAITH AND CREDIT NOR THE
TAXING POWER OF THE CITY OR THE STATE OF CALIFORNlA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE
PAYMENT OF THE LOCAL OBLIGATIONS.
See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of certain risk factors that should be consi
in addition to the other matters set forth herein when evaluating the investment quality of the Bonds. This cover page contains certain informati
quick reference only. It is not a complete sununary of the Bonds. Investors should read the entire Official Statement to obtain information essen
the making of an informed investment decision.
MATURITY SCHEDULE
(See inside cover)
The Bonds are offered, when, as and if issued and accepted by the Undernriter, subject to approval as to their validity by Best B st &
Krieger, LLP, San Diego, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Au rity
and the City by the City Attorney and for the Underwriter by Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, Calif< mia.
It is anticipated that the Bonds will be available for delivery in book-entry form in New York, New York, on or about July -,2005.
Stone & Youngberg LLC
Dated: July _' 2005
. Preliminary, subject to change.
DOCSOC/I I 01647v7/22245-01 58
3-44
MATURITY SCHEDULE"
$
Base CUSIP@ No.t;
Maturity Date
(&ptember 1)
Principal
Amount
Interest
Rate
Yield
CUSIP@
No.t
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Yield
CUSIP@
No,t
. Preliminary, subject to change.
r CUSIP@isaregisteredtrademarkof/heAmericanBankers Association. Copyright(;) 1999-2005 Standard & Poor's, a Division a/the McGraw Hill
Companies, Inc. CUSIP@ data herein is provided by Standard & Poor's CUSI? Service Bureau. This data is not intended to create a database and does
not serve in any way as a substitute for the GUSI? Service Bureau. CUSlP@ numbers are providedfor convenience of reference only. Neither the District
nor the Underwriter takes any responsibility for the accuracy of such numbers.
DOCSOCI1101647v7/22245-0158
3-45
CITY OF CHULA VISTA
CITY COUNCIL
Stephen C. Padilla, Mayor
Mary Salas, Deputy Mayor
Patty Davis, Councilmember
John McCann, Councilmember
Jerry Rindone, Councilmember
CITY OFFICIALS
David D. Rowlands, Jr., City Manager
Sid Morris, Assistant City Manager
George Krempl, Assistant City Manager
Cheryl Fruchter, Assistant City Manager
Susan Bigelow, City Clerk
Ann Moore, City Attorney
Maria Kachadoorian, Director of Finance
Alex AI-Agha, City Engineer
CHULA VISTA PUBLIC FINANCING AUTHORITY
BOARD OF DIRECTORS
Stephen C. Padilla, Chair
Mary Salas, Director
Patty Davis, Director
John McCann, Director
Jerry Rindone, Director
David D. Rowlands, Jr., Executive Director
Susan Bigelow, Secretary
Bond Counsel
Best Best & Krieger, LLP
San Diego, California
Underwriter's Counsel
Stradling Y occa Carlson & Rauth
A Professional Corporation
Newport Beach, California
Financial Advisor to the City
Fieldman, Rolapp & Associates
Irvine, California
Reassessment Engineer/Special Tax Consultant
MuniFinancial
Temecula, California
Verification Agent
Grant Thornton
Minneapolis, Minnesota
Trustee
U.S. Bank National Association
Los Angeles, California
DOCSOC/II01647v7/22245-0158
3-46
No dealer, broker, salesperson or other person has been authorized to give any information or to make
any representations, other than as contained in this Official Statement, and if given or made, such other
information or representations must not be relied upon as having been authorized by the Authority or the City.
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there
be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such offer, solicitation or sale.
The information set forth herein which has been obtained from parties other than the Authority and the
City is believed to be reliable but is not guaranteed as to accuracy or completeness by the Authority or the
City. The information and expressions of opinion stated herein are subject to change without notice. The
delivery of this Official Statement shall not, under any circumstances, create any implication that there has
been no change in the affairs of the Authority, the City, the Reassessment Districts or the Community
Facilities Districts since the date hereof.
The Underwriter has provided the following sentence for inclusion in this Official Statement:
Tbe Underwriter has reviewed the information in this Official Statement in accordance with, and as a
part of its responsibilities to investors under the federal securities laws applied to the facts and circumstances
of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
The information herein relating to the Bonds, the Authority, the Reassessment Districts, the
Community Facilities Districts and the City does not purport to be comprehensive or definitive. All references
to the Bonds are qualified in their entirety by reference to the Indenture setting forth the terms and descriptions
thereof. The summaries and references to any code, act, resolution, the Indenture or the Local Obligation
Indentures (as defined herein), and to other statutes and documents in this Official Statement do not purport to
be comprehensive or definitive, and are qualified in their entirety by reference to each statute and document.
IN CONNECTION WITH THIS BOND UNDERWRITING, TIIE UNDERWRITER MAY
OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET
PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT
OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTINUED AT ANY TIME.
[Other than with respect to information concerning (the
"Insurer") contained under the caption "BOND INSURANCE" and APPENDIX E-"MUNICIPAL BOND
INSURANCE POLICY SPECIMEN" herein, none of the information in this Official Statement has been
supplied or verified by , and makes no representation or warranty, express
or implied, as to (i) the accuracy or completeness of such information; (ii) the validity of the Bonds; or (Iii) the
tax-exempt status of the interest on the Bonds.]
DOCSOC/llOI647v7/22245-0l58
3-47
TABLE OF CONTENTS
Pal!e
INTRODUCTION ............................................................ I
Summary ................................................................... I
The Bonds ................................................................. I
Local Obligations ...................................................... 2
Risk Factors........................ ............................ ........... 3
THE FINANCING PLAN ................................................ 3
THE BONDS.................................................................... 8
Description of the Bonds........................................... 8
Redemption................ ............................................... 8
Selection of Bonds for Redemption .......................... 9
Notice of Redemption ............................................... 9
Effect of Redemption .............................................. 10
Transfers and Exchange ..........................................10
Debt Service Schedule ............................................ 10
Debt Service Coverage for the Bonds ..................... II
SECURITY FOR THE BONDS .................................... 13
Repayment of the Bonds .........................................13
Parity Bonds ............................................................ 14
Payment of the Local Obligations ........................... 14
Levy and Collection of Reassessments ................... 17
Method of Reassessment Spread............................. 18
Levy and Collection of Special Taxes..................... 18
Rates and Methods of Apportionment..................... 19
Covenant to Foreclose............................................. 20
Judicial Foreclosure Sale Proceedings-
Reassessments ..................................................21
Sales of Tax-Defaulted Properly Generally............ 22
Bond Insurance............ ............................................ 23
Priority of Lien ........................................................ 23
No Obligation of the City Upon Delinquency......... 23
Prepayment of Reassessments or Special Taxes ..... 23
BOND INSURANCE..................................................... 23
THE AUTHORITy........................................................ 23
THE CITY ......................................................................24
THE DISTRICTS ...........................................................24
The Reassessment Districts ..................................... 24
Reassessment District 2005-1................................. 24
Reassessment District No. 2005-2........................... 28
The Community Facilities Districts ........................31
Land Uses, Development Status and Estimated
Assessed Value-to-Lien Ratios ........................ 50
Estimated Assessed Value-to-Lien Ratios............... 53
Delinquency History ............................................... 55
Major Taxpayers for all Districts ............................ 55
SPECIAL RISK FACTORS........................................... 58
The Bonds are Limited Obligations of the
Authority ..........................................................58
The Local Obligations are Limited Obligations of
the City............................................................. 58
DOCSOC/IIOI647v7/22245-0158
Pal!e
The Reassessments are Not Personal Obligations of
the Properly Owners .........................................59
The Special Taxes are Not Personal Obligations of
the Owners........... ....................................... ......59
Potential Early Redemption of Bonds from
Prepayments............ .......... ............ ........ ............59
Non-Cash Payments of Special Taxes .....................59
Risks of Real Estate Secured Investments
Generally..... ............................ .........................60
Concentration of Ownership ....................................60
Failure to Develop Properly.....................................60
Bankruptcy and Foreclosure Delays ........................61
FDlC/Federal Government Interests in Properties...62
Price Realized Upon Foreclosure.............................63
Direct and Overlapping Debt ...................................63
Natural Disasters ........................................... ...........63
Land Values..... ...................................... ..................64
Hazardous Substances......................... .....................64
Cumulative Burden of Parity Taxes and Special
Assessments.... ......................... .........................64
Loss of Tax Exemption............................................65
California Constitution Article XIllC and
Article XlllD ....................................................65
No Acceleration .......................................................66
Limitations on Remedies .........................................67
CONCLUDING INFORMATION .................................67
Underwriting.......................................... ..................67
Financial Advisor................................ .....................67
Legal Opinion; Legal Matters ..................................68
Tax Matters............ ........................... ........... ............68
No Litigation............. ....................... ........................69
Verification of Mathematical Computations............69
Ratings of Bonds......... ..... ......... ...............................69
Continuing Disclosure .............................................69
Miscellaneous ..................... .............................. ....... 71
APPENDIX A-INFORMATION REGARDING
THE CITY OF CHULA ViSTA........................... A-I
APPENDIX B-SUMMARY OF BOND
DOCUMENTS ......................................................B-1
APPENDIX C-FORM OF LEGAL OPINION
OF BOND COUNSEL..."......................................C-I
APPENDIX D-FORM OF CONTINUING
DISCLOSURE AGREEMENT ............................ D-1
APPENDIX E-MUNICIPAL BOND
INSURANCE POLICY SPECIMEN ....................E-I
APPENDIX F-INFORMATlON CONCERNING
DTC.......................................................................F-I
APPENDIX G-RATE AND METHOD OF
APPORTIONMENT OF SPECIAL TAXES
FOR THE COMMUNITY FACILITIES
DISTRICTS .......................................................... G-I
3-48
[AREA MAP TO COMEI
DOCSOC/l101647v7/22245-0158
3-49
$138,920,000.
CHULA VISTA PUBLIC FINANCING AUTHORITY
REVENUE REFUNDING BONDS
SERIES 200SA
INTRODUCTION
Summary
This Official Statement is provided to furnish certain information in connection with the issuance and
sale by the Chula Vista Public Financing Authority (the "Authority"), of $138,920,000. aggregate principal
amount ofChula Vista Public Financing Authority Revenue Refunding Bonds, Series 2005A (the "Bonds").
The Bonds will be issued pursuant to the provisions of an Indenture of Trust, dated as of July I, 2005
(the "Indenture"), by and between the Authority and u.s. Bank National Association, as trustee (the
"Trustee"). The Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, as
amended, constituting Article 4 of Chapter 5, Division 7, Title I of the California Government Code (the
"Bond Law"). Capitalized undefined terms used herein shall have the meanings ascribed thereto in the
Indenture. See APPENDIX B-"SUMMARY OF BOND DOCUMENTS."
The Bonds are being issued to finance the acquisition of the Local Obligations (defined below). As
described below in "THE FINANCING PLAN," the Local Obligations to be acquired consist of the
Reassessment Bonds (defined below), which are being issued to (i) refund the outstanding local agency
revenue bonds of the Authority and (ii) refund an outstanding issue of limited obligation improvement bonds
of the City, and the CFD Refunding Bonds (defined below) which are being used to refund six series of
outstanding special tax bonds issued by five community facilities districts of the City. See "Local
Obligations" below in this Introduction and "THE FINANCING PLAN" for a description of the Local
Obligations. See also "THE DISTRICTS."
As the owner of the Local Obligations, the Authority has pledged the payments of principal and
interest it receives on the Local Obligations to pay debt service on the Bonds. Such payments, together with
certain other amounts as specified in the Indenture, comprise the Revenues. The Revenues will be applied to
pay principal of, premium, if any, and interest on the Bonds.
The CFD Refunding Bonds are limited obligations of the respective community facilities districts
payable pursuant to the respective CFD Indentures (defined below). The Reassessment Bonds are limited
obligations of the City payable from the redemption fund established in the respective Reassessment
Indentures (defined below). The issues of the Reassessment Bonds are each separate and distinct obligations
secured by reassessments levied against certain properties within the respective Reassessment Districts
(defined below). The issues of CFD Refunding Bonds are each separate and distinct obligations secured by
special taxes levied against certain properties within the respective Community Facilities Districts (defined
below). See "SECURITY FOR THE BONDS" for a description of the special taxes or reassessments, as
applicable, and other funds securing each of the Local Obligations.
Payment of the principal of and interest on the Bonds when due which will be guaranteed by a Bond
Insurance Policy to be issued by (the "Insurer"). See "BOND INSURANCE."
The Bonds
The proceeds of the Bonds will be used to acquire the Local Obligations.
. Preliminary, subject to change.
DOCSOCIl101647v7/22245-0158
3-50
The Bonds are payable from and secured by the Revenues and amounts in the funds and accounts held
under the Indenture (except the Residual Account of the Revenue Fund). "Revenues" is defined under the
Indenture to mean (i) all amounts derived from or with respect to the Local Obligations and (ii) investment
income with respect to any moneys held by the Trustee in the funds and accounts established under the
Indenture. The principal and interest payments received by the Authority as the owner of the Local
Obligations are the primary source offunds to repay the Bonds. See "SECURITY FOR THE BONDS."
The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a
municipal bond insurance policy (the "Bond Insurance Policy") to be issued concurrently with the delivery of
the Bonds by (the "Insurer"). See "BOND INSURANCE."
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE
COMMUNITY FACILITIES DISTRICTS, THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS
NO TAXING POWER. EXCEPT FOR THE REVENUES PLEDGED UNDER THE INDENTURE, NO
OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS
ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF
THE AUTHORITY, BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE
EXCLUSIVELY FROM REVENUES AS PROVIDED IN THE INDENTURE, AS MORE FULLY
DESCRIBED HEREIN. THE LOCAL OBLIGATIONS ARE LIMITED OBLIGATIONS OF THE CITY
AND THE COMMUNITY FACILITIES DISTRICTS AND PAYABLE SOLELY FROM THE
REASSESSMENTS LEVIED WITHIN THE REASSESSMENT DISTRICTS AND SPECIAL TAXES
LEVIED WITHIN THE COMMUNITY FACILITIES DISTRICTS AND THE OTHER ASSETS PLEDGED
THEREFOR UNDER THE LOCAL OBLIGATIONS INDENTURES PURSUANT TO WHICH SUCH
LOCAL OBLIGATIONS ARE ISSUED. NEITHER THE FAITH AND CREDIT NOR THE TAXING
POWER OF THE CITY OR THE STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION
THEREOF, IS PLEDGED TO THE PAYMENT OF THE LOCAL OBLIGATIONS.
Local Obligations
The proceeds from the sale of the Bonds will be used primarily to purchase the Reassessment Bonds
and the CFD Refunding Bonds as described below and issued concurrently with the Bonds. The Reassessment
Bonds and the CFD Refunding Bonds comprise the "Local Obligations."
Reassessment Bonds. A portion of the proceeds from the sale of the Bonds will be used to purchase
(i) the $7,770,000' City of Chula Vista Reassessment District No.2005-1 Limited Obligation Refunding
Bonds (AD 87-1/88-2), and (ii) the $10,755,000' City of Chula Vista Reassessment District No. 2005-2
Limited Obligation Refunding Bonds (AD 97-2) (collectively, the "Reassessment Bonds").
The Reassessment Bonds are being issued by the City pursuant to the Refunding Act of 1984 for 1915
Improvement Act Bonds (Division 11.5 of the California Streets and Highways Code) (the "Refunding Act")
and separate Bond Indentures, each dated as of July 1, 2005 (collectively, the "Reassessment Indentures"), by
and between the City and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"), and will be
separately secured by certain unpaid reassessments (the "Reassessments") levied by the City pursuant to the
Refunding Act on certain assessable real property within the boundaries of Reassessment District No. 2005-1
and Reassessment District No.2005-2 (collectively, the "Reassessment Districts"), and the unpaid
Reassessments within each Reassessment District, together with interest thereon, constitute a trust fund for the
redemption and payment of the principal of the respective Reassessment Bonds and the interest thereon.
CFD Refunding Bonds. A portion of the proceeds from the sale of the Bonds will be used to
purchase: (i) the $11,875,000' City of Chula Vista Community Facilities District No. 97-3 (Otay Ranch
. Preliminary, subject to change.
2
DOCSOCIII01647v7/22245-0158
3-51
McMillin Spa One) 2005 Special Tax Reftmding Bonds; (ii) the $43,620,000' Community Facilities District
No. 99-1 (Otay Ranch Spa One - Portions of Village One, Village Five and Village One West) 2005 Special
Tax Reftmding Bonds, (iii) the $7,520,000' City of Chula Vista Community Facilities District No. 2000-1
(Sunbow II - Villages 5 through 10) 2005 Special Tax Refunding Bonds, (iv) the $15,225,000' City of Chula
Vista Community Facilities District No. 2001-1 (San Miguel Ranch) 2005 Improvement Area A Special Tax
Reftmding Bonds; and (v) the $42,155,000' City of Chula Vista Community Facilities District No. 06-1
(Eastlake-Woods, Vistas and Land Swap) 2005 Improvement AreaA Special Tax Refunding Bonds
(collectively, the "CFD Reftmding Bonds").
The CFD Refunding Bonds are being issued pursuant to the Mello-Roos Community Facilities Act of
1982, constituting Section 53311 et. seq. of the California Government Code (the "CFD Act"), and separate
Bond Indentures, each dated as of July I, 2005 (collectively, the "CFD Indentures," and together with the
Reassessment Indentures, the "Local Obligations Indentures"), by and between the respective Community
Facilities Districts and the Fiscal Agent, and will be separately secured by special taxes (the "Special Taxes")
leVIed against certain taxable real property within the boundaries of (i) Community Facilities District No. 97-3
(Otay Ranch McMillin Spa One), (ii) Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions
of Village One, Village Five and Village One West), (iii) Community Facilities District No. 2000-1
(Sunbow II - Villages 5 through 10), (iv) Improvement Area A of Community Facilities District No. 2001-1
(San Miguel Rancb), and (v) Improvement Area A of Community Facilities District No. 06-1 (Eastlake-
Woods, Vistas and Land Swap) (collectively, the "Community Facilities Districts" and collectively with the
Reassessment Districts, the "Districts"). The CFD Reftmding Bonds are payable from special taxes levied on
taxable real property within the respective Community Facilities Districts and remaining after the payment of
the administrative expenses of the respective Community Facilities Districts.
Risk Factors
See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion
of certain risk factors which should be considered, in addition to the other matters set forth herein, in
evaluating the investment quality of the Bonds generally.
Brief descriptions of the Bonds, the security for the Bonds, the Local Obligations, the Reassessment
Districts, the Community Facilities Districts, the Authority, the City and other infoooation are included in this
Official Statement. Such descriptions and infoooation do not purport to be comprehensive or definitive. The
descriptions herein of the Bonds, the Local Obligations, the Indenture, the Local Obligations Indentures and
other documents are qualified in their entirety by reference to the fooos thereof and the infoooation with
respect thereto included in the Bonds, the Local Obligations, the Indenture, the Local Obligations Indentures
and other documents.
THE FINANCING PLAN
The Bonds are being issued in order to provide ftmds to purchase the Local Obligations which are
described in Table I below.
. Preliminary, subject to change.
3
DOCSOC/llOl647v7/22245-0158
3-52
TABLE 1
LOCAL OBLlGATIONS
Local Obligation
Reassessment Bonds
City of Chula Vista Reassessment District No. 2005-1 Limited Obligation Refunding Bonds (AD 87-1/88-2)
City ofChula Vista Reassessment District No. 2005-2 Limited Obligation Refunding Bonds (AD 97-2)
CFD RefundinlZ Bonds
City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One)
2005 Special Tax Refunding Bonds
City ofChula Vista Community Facilities District No. 99-1 (Otay Ranch Spa One - Portions of Village One,
Village Five and Village One West) 2005 Special Tax Refunding Bonds
City of Chula Vista Community Facilities District No. 2000-1 (Sunbow II - Villages 5 through 10)
2005 Special Tax Refunding Bonds
City ofChula Vista Community Facilities District No. 2001-1 (San Miguel Ranch)
2005 Improvement Area A Special Refunding Tax Bonds
City ofChula Vista Community Facilities District No. 06-1 (Eastlake-Woods, Vistas and Land Swap) 2005
Improvement Area A Special Tax Refunding Bonds
Principal
Amount.
$ 7,770,000
10,755,000
11,875,000
43,620,000
7,520,000
15,225,000
42,155,000
The Local Obligations are being issued to refund: (i) the $14,460,000 Chula Vista Public Financing
Authority Local Agency Revenue Bonds (1995 Assessment Bond Refinancing) Series A and Series B (the
"Prior Authority Bonds'); (ii) the $12,430,000 City ofChula Vista Assessment District No. 97-2 (Otay Ranch,
Village One) Limited Obligation Bonds (the "Prior Assessment Bonds"); and (iii) the six separate issues of
special tax bonds described in Table 2 below under the heading "Prior CFD Bonds" (the "Prior CFD Bonds"
and together with the Prior Authority Bonds and the Prior Assessment Bonds, the "Prior Bonds"). Table 2
below illustrates for each issue of Prior Bonds being refunded with the proceeds of the Local Obligations: the
date of issuance, original par amount, outstanding principal amount as of May 1, 2005, redemption price and
redemption date.
. Preliminary, subject to change.
4
DOCSOC/lIOI647v7/22245-0158
3-53
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The Bonds are being sold in amounts that will provide proceeds sufficient to acquire the Local
Obligations. A portion of the proceeds of the Local Obligations, together with monies held in certain funds
related to the Prior Bonds, will be used to purchase federal securities which, together with cash deposits held
by the escrow bank, will be sufficient in the opinion of Grant Thornton, the Verification Agent, to provide for
the defeasance and redemption (on the dates specified above) of the Prior Bonds. See "CONCLUDING
INFORMA TlON- Verification of Mathematical Computations."
The proceeds from the sale of the Bonds, the Local Obligations and certain monies held in funds of
the Prior Bonds will be used as described in Table 3 and Table 4 below.
TABLE 3
ESTIMATED SOURCES AND USES
THE BONDS
Tbe estimated sources and uses offunds with respect to the Bonds and amounts transferred by the City
and the Community Facilities Districts to the Trustee are set forth in the following table: .
Sources of Funds
Principal Amount of Bonds
Less Net Original Issue Discount
Transfer from Local Obligations(1}
Total Sources
Uses of Funds
Program Fund(2)
Underwriter's Discount
Costs ofIssuance(3)
Reserve Fund
Total Uses
(1)
Such amounts include proceeds of Local Obligations transferred to the Trustee for the payment of each Local Obligation's
Proportionate Share of the Reserve Requirement and costs of issuance for the Bonds.
(2) Amounts in the Program Fund will be used to purchase the Local Obligations.
(3) To pay costs of issuance, including legal fees, financial advisor fees, printing fees, rating agency fees, Trustee and Fiscal
Agent fees and Bond Insurance Policy premium.
6
DOCSOCIlIOl647v7f22245-0158
3-55
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THE BONDS
Description of the Bonds
The Bonds will be issued in fully registered form and when delivered, will be registered in the name
of Cede & Co., as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC will act
as securities depository for the Bonds. Ownership interests in the Bonds may be purchased in book-entry form
only in denominations of $5,000 or any integral multiple thereof. The Bonds will be dated their date of
delivery. The Bonds will bear interest at the rates per annum and will mature, subject to the redemption
provisions set forth below, on the dates and in the principal amounts, all as set forth on the inside cover page
hereof.
Interest on the Bonds is payable semiannually on March I and September I of each year, commencing
March I, 2006 (each an "Interest Payment Date") to the persons in whose names ownership of the Bonds is
registered on the Bond Register at the close of business on the immediately preceding Record Date, except as
provided in the Indenture. Interest on the Bonds will be calculated on the basis of a 360-day year comprised of
twelve 30-day months. Interest on any Bond will be payable from the Interest Payment Date next preceding
the date of authentication of that Bond, unless (i) a Bond is authenticated on or before an Interest Payment
Date and after the close of business on the preceding Record Date, in whicb event it shall bear interest from
such Interest Payment Date, (ii) a Bond is authenticated on or before the first Record Date, in which event
interest thereon shall be payable from the Date of Delivery, or (iii) interest on any Bond is in default as of the
date of authentication thereof, in which event interest thereon shall be payable from the date to which interest
has been paid in full, payable on each Interest Payment Date.
The principal of and redemption premium, if any, on the Bonds will be paid in lawful money of the
United States of America at the office of the Trustee upon presentation and surrender of the Bonds at maturity
or the prior redemption thereof. The Bonds will mature on September I in the principal amounts and years as
shown on the inside cover page hereof and are subject to optional redemption and mandatory sinking fund
redemption as shown herein.
The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., as
nominee of DTC. Payment of interest with respect to any Bond registered as of each Record Date in the name
of Cede & Co. will be made by wire transfer of same-day funds to the account of Cede & Co. See "Book-
Entry System."
Redemption
Mandatory Redemption from Redemption of Local Obligations. The Bonds shall be subject to
redemption on any Interest Payment Date, prior to maturity, as a whole or in part from such maturities as are
selected by the Authority, from the proceeds of the mandatory redemption of Local Obligations as a result of
prepayment of reassessments within the Reassessment Districts or prepayment of special taxes within the
Community Facilities Districts at the following redemption prices (expressed as percentages of the principal
amount of the Bonds to be redeemed), together with accrued interest thereon to the date of redemption:
Redemption Date
March 1,2006 through March 2, 20_
September I, 20_ and March 2, 20_
September I, 20_ and thereafter
Redemption Price
102%
101
100
Optional Redemption. The Bonds maturing on and after September I, 20_ may be redeemed at the
option of the Authority prior to maturity, as a whole or in part, on any Interest Payment Date on and after
September I, 20_, from such maturities as are selected by the Authority, and by lot within a maturity, from
8
DOCSOC/ll 0164 7v7/22245-0158
3-57
any source of funds, at the following redemption prices (expressed as percentages of the principal amount of
the Bonds to be redeemed), together with accrued interest to the date of redemption:
Redemption Date
September 1,20_ through March I, 20_
September I, 20_ and March 1,20_
September I, 20_ and thereafter
Redemption Price
102%
101
100
Mandatory Sinking Redemption. The Bonds maturing on September I, 20_ and September I, 20_
are subject to mandatory redemption in part by lot, on September I in each year commencing September I,
20_ and September I, 20_, respectively, from mandatory sinking payments made by the Authority at a
redemption price equal to the principal amount thereof to be redeemed, without premium, plus accrued interest
thereon to the date of redemption in the aggregate respective principal amounts:
BONDS MATURING SEPTEMBER 1, 20_
Year
Principal Amount
BONDS MATURING SEPTEMBER 1, 20_
Year
Principal Amount
Selection of Bonds for Redemption
In the event a portion of the Bonds are to be redeemed, the Trustee shall select the Bonds to be
redeemed from all Bonds of such maturity not previously called for redemption, by lot in any manner which
the Authority in its sole discretion shall deem appropriate and fair; provided that, upon a redemption of
pursuant to mandatory redemption from the redemption of Local Obligations, the Trustee shall redeem the
same maturities of Bonds and principal amounts therein as maturities and principal amounts of the Local
Obligations redeemed. See "THE BONDS-Redemption" and APPENDIX B-"SUMMARY OF BOND
DOCUMENTS."
Notice of Redemption
At least thirty (30) days but no more than sixty (60) days prior to the redemption date, the Trustee
shall give by first class mail, postage prepaid, a copy of such notice, to the respective owners of the Bonds to
be redeemed at their addresses appearing on the Bond register. Failure to receive such notice or any defect
. therein shall not affect the validity of the redemption, or the cessation of interest on the redemption date. A
certificate by the Trustee that notice of such redemption has been given as provided in the Indenture shall be
conclusive as against all parties. In addition, notice of redemption shall be given to each of the Securities
Depositories and to at least one of the Information Services. See APPENDIX B-"SUMMARY OF BOND
DOCUMENTS."
9
DOCSOC/llOl647v7/22245-0158
3-58
Effect of Redemption
If on such redemption date, money for the redemption of all the Bonds to be redeemed as provided in
the Indenture, together with interest to such redemption date, shall be available therefor on such redemption
date, and if notice of redemption thereof shall have been given, then from and after such redemption date,
interest with respect to the Bonds to be redeemed shall cease to accrue.
When any Bonds have been duly called for redemption under the provisions of the Indenture and
sufficient moneys shall be held irrevocably in trust for the payment of the redemption price of such Bonds or
portions thereof, all as provided in the Indenture, then such Bonds shall no longer be deemed outstanding and
shall be surrendered to the Trustee for cancellation. See APPENDIX B-"SUMMARY OF BOND
DOCUMENTS."
Transfers and Exchange
So long as the Bonds remain in book-entry form, transfer and exchange of any of the Bonds will be
accomplished in accordance with the provisions of such book-entry system. In the event of termination of such
book-entry system with respect to the Bonds, the Bonds may be transferred and exchanged in accordance with
the terms of the Indenture. See APPENDIX B-"SUMMARY OF BOND DOCUMENTS" and
APPENDIX F-"INFORMA nON CONCERNING DTC."
Debt Service Schedule
The following is the debt service schedule for the Bonds, assuming no redemptions other than
mandatory sinking fund redemptions.
10
DOCSOC/l101647v7/22245-0158
3-59
Year Ending
(September 1)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Total
TABLES
DEBT SERVICE SCHEDULE
Principal
Interest
Annual Debt Service
$
$
$
$
$
$
Debt Service Coverage for the Bonds
Set forth in Table 6 below is the projected sources of Revenues that will be generated by the
anticipated payment of debt service on each of the Local Obligations while the Bonds are outstanding.
DOCSOC/I101647v7/22245-0158
11
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SECURITY FOR THE BONDS
Repayment of the Bonds
The Bonds are special, limited obligations of the Authority payable solely from and secured solely
by the Revenues and other amounts pledged therefore under the Indenture. The Bonds shall not be deemed
to constitute a debt or liability of the City, the Community Facilities Districts, the Reassessment Districts,
the State, or any political subdivision thereof, other than the Authority. The Authority shall only be
obligated to pay the principal of, interest and premium on the Bonds from the Revenues and the other funds
and assets pledged pursuant to the Indenture. Neither the faith and credit nor the taxing power of the City,
the Community Facilities Districts, the Reassessment Districts, the State of California or any of its political
subdivisions, including the Authority, is pledged to payment of the principal of or the interest, or the
premium, if any, on the Bonds. The Authority has no taxing power.
General. The Bonds are payable solely from and secured by the pledged Revenues and any other
amounts held in any fund or account established pursuant to the Indenture, except the Residual Account of the
Revenue Fund. Revenues consist of (i) all amounts derived from or with respect to the Local Obligations and
(il) investment income on the funds and accounts established under the Indenture.
The Revenues will be obtained by the Authority primarily from payments of the principal of and
interest on the Reassessment Bonds and the CFD Refunding Bonds which comprise the Local Obligations.
The Reassessment Bonds of each Reassessment District, and the interest thereon, are payable from a portion of
the annual Reassessment installments to be levied and collected on all real property within the respective
Reassessment Districts subject to the unpaid Reassessments, and the proceeds, if any, from the sale of such
property for delinquency of such Reassessments. The CFD Refunding Bonds of each Community Facilities
District, and the interest thereon, are payable from a portion of the annual Special Taxes levied and collected
on real property within the respective Community Facilities Districts subject to the Special Taxes, and the
proceeds, if any, from the sale of property for delinquency of such Special Taxes. Annual payments of the
principal of, and interest on, the CFD Refunding Bonds shall be made from the Special Taxes collected during
that year and remaining after the payment of the administrative expenses of each respective Community
Facilities District. See "-Payment of the Local Obligations" below.
Payment of the principal of and interest on the Bonds when due for payment which.is unpaid by
reason of nonpayment will be guaranteed by a to be issued by the Insurer. See
"BOND INSURANCE" herein.
Revenue Fund. All Revenues received by the Authority after the Closing Date are to be deposited
into the Revenue Fund. On each Interest Payment Date of the Bonds, amounts in the Revenue Fund are
required to be deposited, in the following order of priority, into the accounts and funds relating to the Bonds.
First, the Trustee shall deposit in the Interest Account of the Revenue Fund an amount sufficient to cause the
aggregate amount on deposit in the Interest Account to equal the amount of interest coming due and payable
on the Bonds on such Interest Payment Date and any amount previously due and unpaid. Second, the Trustee
shall deposit in the Principal Account of the Revenue Fund an amount sufficient to cause the aggregate amount
on deposit in the Principal Account to equal the amount of principal or mandatory sinking account payment
coming due and payable on the Bonds within the Bond Year and any amount of principal previously due and
unpaid. Third, the Trustee shall deposit in the Redemption Account those Revenues resulting from optional
redemption of the Local Obligations. Fourth, the Trustee shall deposit all remaining amounts in the Residual
Account. See APPENDIX B-"SUMMARY OF BOND DOCUMENTS."
Residual Account. So long as the Local Obligations, or any portion thereof, are outstanding under the
terms of the Local Obligations Indentures, on March I and September I of each year, after all of the foregoing
transfers and deposits have been made, the remaining balance in the Residual Account shall be transferred to
the Fiscal Agent for each Local Obligation proportionately based on their respective Proportionate Share.
13
DOCSOC/lIOl647v7/22245-0158
3-62
Amounts in the Residual Account are no longer considered to be Revenues, and are not pledged to repay the
Bonds. In the event the Local Obligations have been paid or defeased, then any amounts in the Residual
Account may be used by the Authority for any lawful purpose. See APPENDIX B-"SUMMARY OF BOND
DOCUMENTS."
Reserve Fund. The Indenture establishes the Reserve Fund to be maintained for the Bonds in an
amount equal to the Reserve Requirement. The "Reserve Requirement" means an amount that shall, as of any
date of calculation, be equal to the least of (i) 125% of average Annual Debt Service for the Bonds,
(il) Maximum Annual Debt Service for the Bonds, or (iii) 10% of the issue price of the Bonds. The Reserve
Requirement will be satisfied by the deposit of proceeds from each issue of Local Obligations in an amount
equal to the Proportionate Share of each Local Obligation based on the ratio of the maximum annual debt
service of each Local Obligation to the aggregate maximum annual debt service for all outstanding Local
Obligations. The Trustee will establish and maintain a separate Reserve Account for each issue of Local
Obligations and deposit into the applicable Reserve Account the amounts received from the Fiscal Agent of
each issue of Local Obligations to satisfy its respective share of the Reserve Requirement.
In the event that on any Interest Payment Date, the full amount of the interest, principal or mandatory
sinking fund payment required to be deposited on such Interest Payment Date is not on deposit therein, the
Trustee shall withdraw from the applicable Reserve Account or Reserve Accounts an amount equal to the
deficiency resulting from the delinquency in the payment of scheduled debt service on the applicable series of
Local Obligations and transfer such amount to the Interest Account, the Principal Account or both, as
applicable, and shall notify the Authority of any such withdrawal. All money in the Reserve Fund shall be
used and withdrawn by the Trustee for the purpose of making transfers to the Interest Account and the
Principal Account, in such order of priority, in the event of any deficiency at any time in any of such accounts
or for the retirement of all the Bonds then outstanding corresponding to the series of the Local Obligations
causing such deficiency, except that so long as the Authority is not in default hereunder, any amount in the
Reserve Accounts in excess of the Proportionate Share of the Reserve Requirement shall be withdrawn from
the respective Reserve Accounts semiannually prior to each Interest Payment Date and be deposited in the
Interest Account and credited to the applicable issue or issues of the Local Obligations. When the balance on
deposit in the Reserve Account for any series of Local Obligations equals or exceeds the amount required to
payor redeem the outstanding bonds of such series, including accrued interest to the date of payment or
redemption thereof, the Trustee shall, pursuant to the written instructions of the Authority, transfer the amount
in such Reserve Account to the applicable Fiscal AgFnt to be applied to the payment or redemption, as
applicable, of such Refunding Bonds on the next succeeding Interest Payment Date or Interest Payment Dates.
Investment earnings on amounts in the Reserve Fund shall be deposited first, to any Reserve Account
as necessary to restore the amount therein to its Proportionate Share of the Reserve Requirement, second, to
the Interest Account and third, to the Principal Account. See APPENDIX B-"SUMMARY OF BOND
DOCUMENTS."
Parity Bonds
The Authority may issue additional bonds ("Parity Bonds") under the Indenture secured by and
payable from a lien on Revenues equal in priority to the lien and charge securing the Bonds only for the
purpose of financing the acquisition of additional local obligation bonds and subject to the requirements set
forth in the Indenture. See APPENDIX B-"SUMMARY OF BOND DOCUMENTS-
"
Payment of the Local Obligations
General. The Local Obligations are payable solely from and secured by unpaid Reassessments on
certain assessable real property located within the Reassessment Districts and Special Taxes levied against
14
DOCSOC/1101647v7/22245-0158
3-63
certain taxable real property within the boundaries of the Community Facilities Districts. See "THE
FINANCING PLAN" and "THE DISTRICTS" herein.
Reassessments. Installments of Reassessments will be billed by the County on the general property
tax bill to the owners of parcels within the Reassessment Districts. The County, upon collection, will remit the
portion of the tax payment attributable to the Reassessment installments to the City. Upon receipt by the City,
Reassessment installments are to be transferred to the Fiscal Agent of the respective Reassessment Indentures
and deposited into such Redemption Funds to pay principal and interest payments on the respective
Reassessment Bonds as they become due.
Pursuant to the provisions of California Streets and Highways Code Section 8769, the City has
determined not to obligate itself to advance fimds from any funds, accounts or revenues of the City to cure any
deficiency which may occur in the funds and accounts held under the Reassessment Indentures for payment of
the Reassessment Bonds. If a delinquency occurs in the payment of any Reassessment installment, the City, at
the end of the fiscal year of delinquency, has no duty to transfer to the Fiscal Agent under the respective
Reassessment Indentures the amount of the delinquency out of available funds of the City. NO OTHER
FUNDS OF THE CITY ARE PLEDGED FOR PAYMENT OF DELINQUENT REASSESSMENT
INSTALLMENTS. THE REASSESSMENT BONDS ARE NOT GENERAL OBLIGATIONS OF THE CITY, THE
STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS. NEITHER THE FAITH IN
CREDIT, NOR THE TAXING POWER OF THE CITY (EXCEPT AS DESCRIBED HEREIN), THE STATE OF
CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE
LOCAL OBLIGATIONS.
The Reassessment Bonds for each of the Reassessment Districts are issued upon and separately
secured by the unpaid Reassessments levied on certain properties in the respective Reassessment Districts
together with interest thereon, and such unpaid Reassessments together with interest thereon constitute a trust
fund for the redemption and payment of the principal of and interest on the respective Reassessment Bonds.
The Reassessment Bonds of each Reassessment District are secured by the monies in the redemption fund
created pursuant to the respective Reassessment Indentures and by the unpaid Reassessments levied on the
properties in the respective Reassessment Districts. [Reassessments collected to pay administrative expenses
will be paid into administrative expense subaccounts, and such amounts are not pledged to the payment of the
Reassessment Bonds or available for the benefit of the Authority (as the owner of the Reassessment Bonds) or
the owners of the Bonds.] Reassessment installments cannot be levied or collected in any Reassessment
District to cover a sbortfall in the collection of Reassessments in another Reassessment District. The
redemption fund for the Reassessment Bonds of one Reassessment District is not available to cure any
deficiency in the collection of the Reassessments within any of the other Reassessment Districts. There are no
cross-collateralization or cross-payment provisions in effect with respect to the Reassessment Districts.
Special Taxes. The Special Taxes remaining after payment of administrative expenses and any
interest earned on such amounts (while any of such amounts are held in the Special Tax Fund and any account
therein) in the respective Community Facilities Districts shall constitute a trust fund for the payment of the
principal of, and interest on, the CFD Refunding Bonds. Special Taxes and other amounts, if any, deposited in
the Administrative Expense Fund established and held pursuant to the respective CFD Indentures are not
pledged to the payment of any of the Bonds, and none of the Administrative Expense Fund shall be construed
as a trust fund held for the benefit of the Authority (as the owner of the CFD Refunding Bonds) or the owners
of the Bonds. Special Taxes cannot be levied or collected in any Community Facilities District to cover a
shortfall in the collection of Special Taxes in another Community Facilities District. The redemption fund for
the CFD Refunding Bonds of one Community Facilities District is not available to cure any deficiency in the
collection of the Special Taxes within any of the other Community Facilities Districts. There are no cross-
collateralization or cross-payment provisions in effect with respect to the Community Facilities Districts.
The amount of Reassessments that the City may levy in any year is strictly limited, and the failure of a
property owner to pay an annual Reassessment installment will not result in an increase in Reassessment
15
DOCSOC/l101647v7/22245-0158
3-64
installments applicable to other properties subject to the Reassessments. The amount of Special Taxes that the
Community Facilities Districts may levy in any year is strictly limited by the maximum rates approved by the
qualified electors within the Community Facilities Districts. The Reassessments and the Special Taxes of a
particular Reassessment District or Community Facilities District are not available to pay principal of, interest
on or premium on any Local Obligations other than the Local Obligations of the Reassessment District or the
Community Facilities District, as the case may be, in which they were levied.
Optional Redemption of Local Obligations. Each Local Obligation Indenture provides that the Local
Obligations are subject to optional redemption and mandatory sinking fund redemption. The Local
Obligations may be redeemed, at the option of the City and the applicable Community Facilities Districts, from
any source of funds on the date prior to maturity, in whole or in part, in the order of maturity selected by the
City and the applicable Community Facilities District and by lot within a maturity, at the following redemption
prices (expressed as percentages of the principal amount of the Local Obligations to be redeemed), together
with accrued interest to the date of redemption.
Redemption Date
September I, 20_ through March 1, 20_
September I, 20_ and March 1, 20_
September 1, 20_ and thereafter
Redemption Price
102%
101
100
Mandatory Redemption of Reassessment Bonds. The Reassessment Indentures provide that the
Reassessment Bonds are subject to extraordinary mandatory redemption on any Interest Payment Date, prior to
maturity, as a whole or in part on a pro rata basis among maturities from amounts deposited in connection with
a prepayment of Reassessments. Such extraordinary mandatory redemption of the Reassessment Bonds shall
be at the following redemption prices (expressed as percentages of the principal amount of the Reassessment
Bonds to be redeemed), together with accrued interest thereon to the date of redemption:
Redemption Dates
March 1,2006 through March 2, 20_
September 1, 20_ and March 2, 20_
September 1, 20_ and thereafter
Redemption Prices
102%
101
100
Mandatory Redemption ofCFD Refunding Bonds. The CFD Indentures provide that the Bonds shall
be subject to redemption on any Interest Payment Date, prior to maturity, as a whole or in part on a pro rata
basis among maturities in connection with a prepayment of Special Taxes pursuant to the respective Special
Tax rates and methods of apportionment. Written instructions shall be delivered to the Fiscal Agent not less
than 60 days prior to the redemption date directing the Fiscal Agent to utilize the Special Tax Revenues (as
defined by the CFD Indentures) transferred to the CFD Refunding Bonds Redemption Account pursuant to the
respective CFD Indenture to redeem CFD Refunding Bonds. Such extraordinary mandatory redemption of the
CFD Refunding Bonds shall be at the following redemption prices (expressed as percentages of the principal
amount of the CFD Refunding Bonds to be redeemed), together with accrued interest thereon to the date of
redemption:
Redemption Dates
March 1,2006 through March 1, 20_
September 1, 20_ and March 1, 20_
September 1, 20_ and thereafter
Redemption Prices
102%
101
100
Certain of the Local Obligations are to be called before maturity and redeemed from the sinking fund
payments that have been deposited into the applicable redemption accounts established under each Bond
Resolution. The Local Obligations so called for redemption are to be redeemed at a redemption price for each
redeemed Local Obligation equal to the principal amount thereof, plus accrued interest to the redemption date,
16
DOCSOCIlIOI647v7/22245-0158
3-65
without premium. See APPENDIX C-"SUMMARY OF BOND DOCUMENTS" for the maturity schedules
and the mandatory sinking fund payment schedules for the Local Obligations.
In the event of a partial optional redemption of the Local Obligations subject to mandatory sinking
fund redemption, the remaining sinking fund payments for such Local Obligations will be reduced, as nearly as
practicable, on a pro rata basis, or in such other manner as directed by the Authority, so long as the Local
Obligations are owned by the Authority.
Principal of and interest and premium, if any, on the Local Obligations shall be paid by the Fiscal
Agent of each Local Obligation to the Trustee as the registered owner of the Local Obligations, on behalf of
the Authority, out of the Redemption Funds established by the respective Local Obligations Indentures to the
extent funds on deposit in such Redemption Funds are available therefor.
Parity Local Obligations. The Local Obligations Indentures do not provide for the issuance of
additional indebtedness payable on a parity with the Local Obligations.
Levy and Collection of Reassessments
Pursuant to the Refunding Act, installments of Reassessments will be billed by the County on the
general property tax bill to the owner of parcels within the Reassessment Districts against which there are
unpaid Reassessments. Installments of Reassessments billed against the parcels of property in the
Reassessment Districts will be equal to the total principal and interest coming due on all of the respective
Reassessment Bonds that year, plus an administrative charge but less any Residual Account Annual Credit.
The installments billed against each property each year represent a pro rata share of the amount needed to pay
the total principal and interest on the respective Reassessment Bonds coming due that year, based on the
percentage which the unpaid Reassessment levied against that property bears to the total of unpaid
Reassessments levied to repay the respective Reassessment Bonds. Reassessments will be collected and are
payable and become delinquent at the same time and in the same proportionate amounts and bear the same
proportionate penalties and interest after delinquency as do general taxes, and the parcels upon which the
Reassessments are levied are subject to the same provisions for sale and redemption as are properties for
nonpayment of general taxes.
Each Reassessment and each installment thereof and any interest and penalties thereon constitute a
lien against the parcel of land on which it is levied until paid. Only the Reassessments and installments thereof
are pledged to secure the respective Reassessment Bonds
The lien of the Reassessments is co-equal to and independent of the lien for general ad valorem
property taxes and other taxes, special taxes and charges collected on the property tax roll. The lien is
subordinate to all fIxed special assessment liens imposed prior to the date of recordation of the assessment lien
for the Reassessment Bonds upon the same property, but has priority over all existing and future private liens
and over all fIxed special assessment liens which may thereafter be levied against the property. The
Reassessment liens supplant the liens of the assessments for the original assessment districts.
Altbougb tbe Reassessments constitute a fIXed lien on tbe respective assessed parcels, tbey do not
constitute personal indebtedness of tbe affected property owners. Further, there are no restrictions on the
ability of property owners to sell parcels subject to Reassessments. No assurance can be given as to the ability
or the willingness of any assessee to pay the annual installments of the Reassessments when due. The failure
of an assessee to pay an annual installment of a Reassessment will not result in an increase in Reassessments
against other parcels in the Reassessment Districts. See "SPECIAL RISK F ACTORS-The Reassessments
are Not Personal Obligations of the Property Owners" herein.
17
DOCSOCI1101647v7/22245-0158
3-66
The City has covenanted in certain circumstances to undertake and diligently prosecute foreclosure
proceedings following a delinquency in the payment of Reassessments. See "--Covenant to Foreclose" below.
The City is not required to bid at the foreclosure sale.
In the proceedings for the authorization and issuance of the Reassessment Bonds, the City has
determined not to obligate itself to advance any available funds from the City treasury to cover any deficiency
or delinquency that may occur in the Redemption Fund by reason of the failure of a property owner to pay an
annual installment of a Reassessment. This determination does not prevent the City, in its sole discretion, from
so advancing such funds.
Method of Reassessment Spread
The Refunding Act provides for the issuance of refunding bonds, payable from certain reassessments.
Such refunding bonds may be issued to refund bonds originally issued under the Improvement Bond Act of
1915 (the "1915 Act"), and the reassessments supersede the original assessments which secure sucb 1915 Act
bonds. The Refunding Act generally requires each estimated annual installment of principal and interest on
any reassessment to be less than the original assessment being superseded by the same percentage for all
subdivisions ofland within the Reassessment Districts. Therefore, the reassessment spread for each parcel will
be roughly proportional to the original assessment spread. The City has retained MuniFinancial, Temecula,
California, as the Reassessment Engineer to calculate the Reassessments in accordance with the Refunding
Act.
A copy of the Reassessment Engineer's Report on the Reassessment apportionment for the
Reassessment Districts prepared by the Reassessment Engineer is available for inspection at the City's Public
Works Department.
Levy and Collection of Special Taxes
The Special Taxes are to be levied and collected by the Treasurer-Tax Collector of the County of San
Diego in the same manner and at the same time as ad valorem property taxes; provided, however, that the
District may directly bill the Special Tax or collect Special Taxes at a different time or in a different manner if
necessary to meet its financial obligations.
The Community Facilities Districts have made certain covenants in the respective CFD Indentures for
the purpose of ensuring that the current maximum Special Tax rates and method of collection of the Special
Taxes are not altered in a manner that would impair a Community Facilities District's ability to collect
sufficient Special Taxes to pay debt service on the CFD Refunding Bonds and administrative expenses when
due. First, the Community Facilities Districts have covenanted that, to the extent it is legally permitted to do
so, it will not reduce the maximum Special Tax rates and will oppose the reduction of maximum Special Tax
rates by initiative where such reduction would reduce the maximum Special Taxes payable from parcels on
which a completed structure is located to less than 110% of Maximum Annual Debt Service on the outstanding
CFD Refunding Bonds. See "SPECIAL RISK FACTORS--California Constitution Article XIIIC and
Article XIIID." Second, the District has covenanted not to permit the tender of CFD Refunding Bonds in
payment of any Special Taxes except upon receipt of a certificate of a Special Tax Consultant that to accept
such tender will not result in the Community Facilities District having insufficient Special Tax Revenues to
pay the principal of and interest when due on the CFD Refunding Bonds remaining outstanding following such
tender. See "SPECIAL RISK F ACTORS-Non-Cash Payment of Special Taxes."
Although the Special Taxes constitute liens on taxed parcels within the respective Community
Facilities Districts, they do not constitute a personal indebtedness of the owners of such property within the
respective Community Facilities Districts. Moreover, other liens for taxes and assessments already exist on
the property located within The respective Community Facilities Districts and other such liens could come into
existence in the future in certain situations without the consent or knowledge of the City or the landowners
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therein. There is no assurance that property owners will be financially able to pay the annual Special Taxes or
that they will pay such taxes even if financially able to do so, all as more fully described in the section of this
Official Statement entitled "SPECIAL RISK F ACTORS-The Special Taxes are Not Personal Obligations of
the Property Owners."
Under the terms of the respective CFD Indentures, not later than the tenth Business Day after receipt,
all Special Tax Revenues received by the respective Community Facilities District are to be deposited in the
Special Tax Funds established and maintained by the respective CFD Indentures. Special Tax Revenues (with
the exception of Special Tax Revenues representing Prepayments) are to be applied by the Fiscal Agent under
the CFD Indentures in the following order of priority: (1) to deposit annually up to $75,000 to the
Administrative Expense Fund, (2) to pay the principal of and interest on the CFD Bonds when due, (3) to
replenish the Reserve Fund to the Reserve Requirement, (4) to make any required transfers to the Rebate Fund
and (5) to pay Administrative Expenses of the Community Facilities District above the $75,000 referenced in
(1) above. See APPENDIX B-"SUMMARY OF BOND DOCUMENTS." Special Tax Revenues
representing Prepayments shall be transferred to the Bond Service Fund as provided for in the respective CFD
Indenture and used to redeem the respective CFD Refunding Bonds. See "SECURITY FOR THE BONDS-
Local Obligations-Redemption."
Rates and Methods of Apportionment
Each District has adopted its own rate and method of apportionment of special taxes (the "Rate and
Method") following public hearings and an election conducted pursuant to the provisions of the Act. A copy
of each Community Facilities District's Rate and Method is set forth in full in APPENDIX G hereto.
Each Rate and Method generally provides for the rate of Special Tax to vary based on whether the
property has been developed pursuant to such Rate and Method ("Developed Property") or not ("Undeveloped
Property"). Certain types of property may be absolutely exempt from the Special Taxes or may be initially
exempt from the Special Taxes. See "SPECIAL RISK FACTORS-Insufficiency of Special Taxes" for a
general description of such property. The Rate and Method for each District taxes non-exempt property as set
forth below.
CDF No. 97-3. Under the Rate and Method for CFD No. 97-3, all taxable property within CFD
No. 97-3 is to be classified as Developed Property, Undeveloped Property or Taxable Property Owners
Association Property. All such property is subject to the levy of annual Special Taxes. Developed Property is
to be further classified as one of three land use classes: Residential Property, Commercial Property or
Community Purpose Facility Property. The Assigned Special Tax for each parcel of Developed Property
within CFD No. 97-3 is $.392 per square foot of residential floor area for Residential Property, $4,000 per acre
for Commercial Property and $1,000 per acre for Community Purpose Facility Property. The Assigned
Special Tax for each parcel of Taxable Property Owners Association Property and each parcel of Undeveloped
Property is $7,954 per acre. See Appendix G for more detailed information regarding the Rate and Method for
CDF No. 97-3.
CFD No. 99-1. Under the Rate and Method for CFD No. 99-1, all taxable property within CFD
No.99-1 is to be classified as Developed Property, Undeveloped Property or Taxable Property Owners
Association Property. All such property is subject to the levy of annual Special Taxes. Developed Property is
to be categorized as being located in Zone A (Village One), Zone B (Village Five) or Zone C (Village One
West). Developed Property is to be further classified as one of three land use classes: Residential Property,
Commercial Property or Community Purpose Facility Property. The Assigned Special Tax for each parcel of
Developed Property located in Zone A is $.28 per square foot of residential floor area for Residential Property,
$1,600 per acre for Commercial Property and $400 per acre for Community Purpose Facility Property. The
Assigned Special Tax for each parcel of Developed Property located in Zone B is $400 plus $.29 per square
foot of residential floor area for Residential Property, $3,717 per acre for Commercial Property and $929 per
acre for Community Purpose Facility Property. The Assigned Special Tax for each parcel of Developed
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Property located in Zone C is $400 plus $.44 per square foot of residential floor area for Residential Property,
$4,266 per acre for Commercial Property and $1,066 per acre for Community Purpose Facility Property. The
Assigned Special Tax for each parcel of Taxable Property Owners Association Property and each parcel of
Undeveloped Property is $7,954 per acre. See Appendix G for more detailed information regarding the Rate
and Method for CFD No. 99-1.
CDF No. 2000-1. Under the Rate and Method for CFD No. 2001-1, all taxable property within CFD
No. 2000-1 is to be classified as Developed Property, Undeveloped Property or Taxable Property Owners
Association Property. All such property is subject to the levy of annual Special Taxes. The Assigned Special
Tax for each parcel of Developed Property within CFD No. 2000-1 is $.44 per square foot of residential floor
area. The Assigned Special Tax for each parcel of Taxable Property Owners Association Property and each
parcel of Undeveloped Property is $7,851 per acre. See Appendix G for more detailed information regarding
the Rate and Method for CDF No. 2000-1.
CDF No. 2001-1 (Improvement Area A). Under the Rate and Method for Improvement Area A of
CFD No. 2001-1, all taxable property within Improvement Area A of CFD No. 2001-1 is to be classified as
Developed Property or Undeveloped Property. All such property is subject to the levy of annual Special
Taxes. Developed Property is to be further classified as Residential Property or Commercial Property. The
Assigned Special Tax for each parcel of Developed Property within Improvement Area A of CFD No. 200 I-I
is $475 plus $.32 per square foot of residential floor area for Residential Property and $2,263 per acre for
Commercial Property. The Assigned Special Tax for each parcel of Undeveloped Property is $4,578 per acre.
See Appendix G for more detailed information regarding the Rate and Method for Improvement Area A of
CDF 2001-1.
CFD No. 06-1 (Improvement Area A). Under the Rate and Method for Improvement Area A of CFD
No. 06-1, all taxable property within Improvement Area A of CFD No. 06-1 is to be classified as Developed
Property or Undeveloped Property. All such property is subject to the levy of annual Special Taxes.
Developed Property is to be categorized as being located in Zone I or Zone 2. Developed Property is to be
further classified as one of three land use classes: Residential Property, Commercial Property or Hotel
Property. The Assigned Special Tax for each parcel of Developed Property located in Zone 1 is $.58 per
square foot of residential floor area for Residential Property and $6,000 per acre for Commercial Property and
Hotel Property. The Assigned Special Tax for each parcel of Developed Property located in Zone 2 $.67 per
square foot of residential floor area for Residential Property and $6,000 per acre for Commercial Property.
The Assigned Special Tax for each parcel of Undeveloped Property located in Zone I is $11,037 per acre and
$8,332 per acre for each parcel of Undeveloped Property located in Zone 2. See Appendix G for more detailed
information regarding the Rate and Method for Improvement Area A of CFD No. 06-1.
Covenant to Foreclose
Reassessments. The Local Obligations issued under the Refunding Act are subject to the provisions
of the 1915 Act with respect to foreclosure remedies. The 1915 Act provides that in the event any installment
of an assessment is not paid when due, the City may order the collection of the installment by the institution of
a court action to foreclose the lien of such assessment. In such an action, the real property subject to the
unpaid assessment may be sold at a judicial foreclosure sale. In the Reassessment Indentures, the City has
covenanted that it will determine or cause to be determined, no later than October I of each Fiscal Year in
which the Bonds are outstanding, whether or not any owners of the real property within the Reassessment
Districts are delinquent in the payment of Reassessment installments. The City will order and cause judicial
foreclosure actions to be commenced in the Superior Court no later than 60 days following such determination
against: (a) any parcel for which there are delinquent Reassessment installments of $2,000 or more for the
prior Fiscal Year or Fiscal Years, (b) each parcel for which there are delinquent Reassessment installments of
$1,000 or more for the prior Fiscal Year or Fiscal Years if the Finance Director determines that the amount of
delinquent Reassessment installments for the prior Fiscal Year for the entire Reassessment District, less the
total delinquencies under (a) above, exceeds three percent (3%) of the total Reassessment installments due and
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payable in the prior Fiscal Year, and (c) each parcel for which there are delinquent Reassessment installments
for the prior Fiscal Year or Fiscal Years if the Finance Director of the City determines that the amount of
delinquent reassessment installments for the prior Fiscal Year for the entire Reassessment District, less the
total delinquencies under (a) and (b) above, exceeds three percent (3%) of the total Reassessment installments
due and payable in the prior Fiscal Year.
The City has also covenanted to diligently prosecute any such foreclosure action to judgment and
foreclosure sale.
Special Taxes. The net proceeds received following a judicial foreclosure sale of land within a
Community Facilities District resulting from a landowner's failure to pay the Special Taxes when due are
included within the Special Tax Revenues pledged to the payment of principal of and interest on the CFD
Refunding Bonds under the CFD Indentures.
Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of any Special
Tax or receipt by a Community Facilities District of Special Taxes in an amount which is less than the Special
Tax levied, the City Council, as the legislative body of the Community Facilities District, may order that
Special Taxes be collected by a superior court action to foreclose the lien within specified time limits. In such
an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the
Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory.
However, the Community Facilities Districts have each covenanted for the benefit of the Authority as owner of
the CFD Refunding Bonds that they will commence and diligently pursue to completion, judicial foreclosure
proceedings against (i) properties under common ownership with delinquent Special Taxes in the aggregate of
$5,000 or more by the October I following the close of the Fiscal Year in which such Special Taxes were due,
and (Ii) against all properties with delinquent Special Taxes in the aggregate of $2,500 or more by the
October I following the close of any fiscal year if the amount in the Reserve Fund is less than the respective
Community Facilities Districts' Proportional Share of the Reserve Requirement. See APPENDIX B-
"SUMMARY OF BOND DOCUMENTS- " herein.
If foreclosure is necessary and other funds (including amounts in the Reserve Fund) have been
exhausted, debt service payments on the Local Obligations could be delayed until the foreclosure proceedings
have ended with the receipt of any foreclosure sale proceeds. Judicial foreclosure actions are subject to the
normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by
agencies of the federal government and other factors beyond the control of the City and the Community
Facilities Districts. See "SPECIAL RISK FACTORS-Bankruptcy and Foreclosure Delays" herein.
Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial
foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent
Special Tax installment. See "SPECIAL RISK FACTORS-Land Values" herein. Although the Act
authorizes the Community Facilities Districts to cause such an action to be commenced and diligently pursued
to completion, the Act does not impose on the Community Facilities Districts or the City any obligation to
purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such
sale. However, the City does have the ability to use the foreclosure judgment to purchase property by credit
bid at a foreclosure sale, in which case the City would have no obligation to pay such credit bid for 24 months.
The Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is
provided for ad valorem taxes.
Judicial Foreclosure Sale Proceedings-Reassessments
The 1915 Act provides that the court in a foreclosure proceeding has the power to order a parcel
securing delinquent Reassessments to be sold for an amount not less than all delinquent annual installments of
the Reassessments, interest, penalties, costs, fees and other charges that are delinquent at the time the
foreclosure action is ordered and certain other fees and amounts as provided in the 1915 Act (the "Minimum
Price"). The court may also include subsequent delinquent Reassessments and all other delinquent amounts.
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If the parcel is sold to a purchaser other than the City, the City shall pay the proceeds from the sale of
the parcel after payment of any expenses related to the foreclosure into the Redemption Fund of the applicable
Reassessment District. The City has no obligation to advance any moneys (other than the foreclosure sale
proceeds) to the Redemption Fund. However, if the City for any reason voluntarily chooses to advance funds,
then the City shall be reimbursed, from the proceeds of a sale, first for amounts advanced by it to the
Redemption Fund to cover delinquent installments of the Reassessments and interest with respect to the parcel
or parcels sold in such proceedings. Any funds in excess of the amount necessary to reimburse the City may
be applied by the City to reimburse other funds, if any, used to cover delinquent installments of the
Reassessments and interest or to pay interest and penalties, costs, fees and other charges, to the extent they
were included in the sale proceeds.
If the parcel or parcels to be sold fails to sell for the Minimum Price, the City may petition the court to
modifY the judgment so that the parcel or parcels may be sold at a lesser price or without a Minimum Price. In
certain circumstances, as provided in the 1915 Act, the court may modifY the judgment after a hearing if the
court makes certain determinations, including determinations that the sale at less than the Minimum Price will
not result in an ultimate loss to the owners of the Reassessment Bonds or that the owners of at least seventy-
five percent (75%) of the principal amount of the Reassessment Bonds outstanding have consented to the
petition and the sale will not result in an ultimate loss to non consenting owners. The court may also make
such modification of the judgment upon consent of the owners of at least seventy-five percent (75%) of the
principal amount of the Reassessment Bonds without determining that the sale will not result in an ultimate
loss to the nonconsenting owners if: the City is not obligated to advance available funds to cure a deficiency;
no bids equal to or greater than the Minimum Price have been received at the foreclosure sale; no funds remain
in the Reserve Funds; the City has reasonably determined that a reassessment and refunding proceeding is not
practicable or has in good faith endeavored to accomplish a reassessment and refunding and has not been
successful, or has completed reassessment and refunding arrangements which will, to the maximum extent
feasible, minimize the ultimate loss to the owners; and no other remedy acceptable to the owners or holders of
seventy-five percent (75%) or more of the principal amount of the outstanding Local Obligations, is reasonably
available. As assignee of the Authority, the Trustee for the Bonds will hold one hundred percent (100%) of the
Local Obligations. Neither the parcel owner nor any holder of a security interest in the parcel nor any
defendant in the foreclosure action nor any agent thereof may purchase the parcel at the foreclosure sale for
less than the Minimum Price. The assessment lien upon property sold at a lesser price than the Minimum Price
is to be reduced by the difference between the Minimum Price and the sale price.
No assurance can be given that in the event of a foreclosure proceeding a parcel could be sold for the
full amount of the delinquency or that any bid would be received for such parcel. See "RISK FACTORS--
Land Values" herein. The ability of the City to foreclose the lien of a delinquent installment of a
Reassessment may be limited by bankruptcy, insolvency or other laws generally affecting creditors' rights or
by California law relating to judicial foreclosure. See "RISK FACTORS--Bankruptcy and Foreclosure
Delays. "
Sales of Tax-Defaulted Property Generally
A parcel securing delinquent installments of a Reassessment that is not sold pursuant to the judicial
foreclosure proceeding as described above may be sold, subject to redemption by the parcel owner, in the same
manner and to the same extent as real property sold for nonpayment of general County property taxes. On or
before June 30 of the year in which such delinquency occurs, the parcel becomes tax-defaulted. This initiates
a five-year period during which the parcel owner may redeem the parcel. At the end of the five-year period the
parcel becomes subject to sale by the County Treasurer and Tax Collector. Except in certain circumstances, as
provided in the 1915 Act, the purchaser at any such sale takes such parcel subject to all delinquent installments
ofthe Reassessment, interest and penalties, costs, fees and other charges which are not satisfied by application
of the sales proceeds and subject to all prior assessments which may have priority.
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Bond Insurance
The payment of principal of and interest on the Bonds when due will be insured by a Municipal Bond
Insurance Policy to be issued by simultaneously with the delivery of the Bonds. See the
information under the caption "BOND INSURANCE" and APPENDIX E-"MUNICIPAL BOND
INSURANCE POLICY SPECIMEN" herein.
Priority of Lien
The unpaid Reassessments levied within the Reassessment Districts and the Special Taxes levied
within the Community Facilities Districts, and each installment thereof and any interest and penalties thereon,
constitute a lien against each of the respective parcels within the Reassessment Districts and the Community
Facilities Districts until the same are paid. Generally, a special assessment lien is subordinate to all special
assessment liens previously imposed upon the same property, but has priority over all private liens and over all
special assessment liens which may thereafter be created against the same property. However, such lien is on a
parity with the lien of general property taxes, assessments and any special taxes imposed, whether prior to or
after the imposition of such special assessment lien, against the same property pursuant to the Mello-Roos
Community Facilities Act of 1982, as amended, or other applicable legislation. There are liens for special
taxes, assessments and the recurring lien for general property taxes on parcels within the Districts. See "THE
DISTRICTS-Direct and Overlapping Debt" and "SPECIAL RISK FACTORS-Direct and Overlapping
Debt."
No Obligation of the City Upon Delinquency
The City is under no obligation to transfer any funds of the City into the Redemption Funds for the
payment of the principal of or interest on the Local Obligations if a delinquency occurs in the payment of any
Reassessments or Special Taxes. See "SECURITY FOR THE BONDS--Covenant to Foreclosure" for a
discussion of the City's obligation to foreclose Reassessment and Special Tax liens upon delinquencies.
Pursuant to Section 8769 of the California Streets and Highways Code, the City has expressly elected not to
obligate itself to advance available funds from the City's treasury to make up deficiencies in the amount of
Reassessment installments collected.
Prepayment of Reassessments or Special Taxes
A property owner may prepay its Reassessments or Special Taxes and thereby cause a partial
redemption of the Local Obligations and the Bonds. See "THE BONDS-Redemption Mandatory
Redemption from Redemption of Local Obligations;" "SPECIAL RISK FACTORS-Potential Early
Redemption of Bonds from Prepayments."
BOND INSURANCE
The following itiformation has been furnished by the Insurer for use in this Official Statement. Such
information has not been independently confirmed or verified by the City or the Authority. No representation
is made herein by the City or Authority as to the accuracy or adequacy of such information subsequent to the
date hereof, or that the information contained and incorporated herein by reference is correct. Reference is
made to APPENDIX Efor a specimen of the Bond Insurance Policy.
ITO COME]
THE AUTHORITY
The Chula Vista Public Financing Authority was established pursuant to a Joint Exercise of Powers
Agreement dated as of April 4, 1995, by and between the City and the Redevelopment Agency of the City of
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Chula Vista. The City Council of the City is appointed as the Governing Board of the Authority. The
Authority has acted as a conduit issuer for the City for a variety offinancings.
THE AUTHORITY IS NOT OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM (IF ANY)
OR INTEREST ON THE BONDS, EXCEPT FROM REVENUES RECEIVED BY THE AUTHORITY. THE
CITY HAS NO LIABILITY WITH RESPECT TO THE PAYMENT OF THE BONDS, AND NEITHER THE
FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF CALIFORNIA OR THE CITY IS
PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER.
The Authority has issued obligations other than the Bonds, which other obligations are and will be
secured by instruments separate and apart from the Indenture and the Bonds. The holders of such obligations
of the Authority have no claim on the security of the Bonds or Parity Bonds and the owners of the Bonds and
Parity Bonds will have no claim on the security of such other obligations issued by the Authority.
THE CITY
The City of Chula Vista is located on San Diego Bay in Southern California, 8 miles south of the City
of San Diego and 7 miles north of the Mexico border, in the area generally known as the "South Bay." Chula
Vista's city limits cover approximately 50 square miles. Chula Vista was incorporated March 17, 1911 and
became a chartered city in 1949. For more information regarding the City, see APPENDIX A-
"INFORMA nON REGARDING THE CITY OF CHULA VISTA."
THE DISTRICTS
The Reassessment Districts
Assessment districts are formed to finance public improvements for assessable land which directly
benefits from such public improvements. Bonds issued in connection with assessment district financing are
secured by and payable by the levy of unpaid assessments on benefited property comprising the assessment
district. The Reassessment Districts are areas of special assessment referring to the property that is specially
benefited from the improvements financed by the original assessment districts. The land within Reassessment
District 2005-1 and Reassessment District 2005-2 is primarily residential in nature. See "-Reassessment
District 2005-1" and "-Reassessment District 2005-2" below.
The Reassessments are levied within the Reassessment Districts by the City Council of the City (the
"City Council") under proceedings taken pursuant to Resolution Nos. 2005-_ and 2005-_, adopted by the
City Council on , 2005.
Reassessment District 2005-1
Reassessment District 2005-1 is a consolidation of Assessment District No. 87-1 and Assessment
District No. 88-2. Reassessment District 2005-1 comprises a portion of the master planned residential planned
community commonly known as "Rancho Del Rey" and is primarily residential in nature, but also contains
several commercial, industrial and recreational properties. See "-Land Uses, Development Status and
Estimated Assessed Value-to-Lien Ratios" below. Rancho Del Rey is located in the eastern portion of the
City, east of Interstate 805, west of Otay Lakes Road and to the north and south of East "H" Street.
The following is a brief description of each of the Original Assessment Districts located in
Reassessment District 2005-1:
Assessment District No. 87-1. Assessment District No.87-1 was formed in 1987 and includes
approximately 1,592 acres of land situated with the Rancho Del Rey development. Assessment District
No. 87-1 is primarily residential in nature and is fully developed. The land within Assessment District
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No. 87-1 has been developed with 2,849 single family detached units, 528 multifamily units and approximately
74 acres of30 non-residential properties.
The public improvements financed through Assessment District No. 87-1 included the acquisition of
street (including utilities) and storm drain improvements, reclaimed water facilities, sewer service facilities,
and a portion of the capacity of major sewer mains to adjacent areas attributable to the Assessment District
No. 87-1 project, and related improvements, together with appurtenances and appurtenant work, and incidental
costs and expenses related thereto. All of the public improvements financed through Assessment District
No. 87-1 have been completed.
Table 7 below summarizes the historical delinquencies for Assessment District No. 87-1 from fiscal
year 2000-01 to fiscal year 2004-05.
TABLE 7
HISTORY OF DELINQUENCIES
ASSESSMENT DISTRICT NO. 87-1
Fiscal
Year
Amount
Levied
No. of
Amount % Amount Amount % Amount Parcels
Delinquent Delinquent Delinquent1) Delinquent Levied
$ NA NA $ 0.00% 3,405
23,618.68 4.00%(2) 60.14 om 3,406
22,931.40 3.75%(3) 5,463.67 0.89 3,406
22,211.00 3.65%(4) 3,354.77 0.55 3,406
NA NA 54,370.96 8.94 3,407
No. of
Parcels
Delinquent
2000-01
2001-02
2002-03
2003-04
2004-05
$ 611,691.32
591,171.74
611,504.08
608,834.54
608,466.36
2
4
13
187
(I) Amount delinquent as of Apri126, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004.
Source: MuniFinancial.
Assessment District No. 88-2. Formed in 1988, Assessment District No. 88-2 includes approximately
1,180 acres of land situated within the Rancho Del Rey development. Land within Assessment District
No. 88-2 has been developed with 1,191 single family detached homes, 138 single family attached homes and
43 acres of II non-residential properties.
The public improvements financed through Assessment District No. 88.2 included the acquisition of
public works, including street, water, sewer, drainage and utility improvements. All of the public
improvements financed through Assessment District No. 88-2 bave been completed.
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Table 8 below summarizes the historical delinquencies for Assessment District No. 88-2 from fiscal
year 2000-01 to fiscal year 2004-05.
TABLE 8
HISTORY OF DELINQUENCIES
ASSESSMENT DISTRICT NO. 88-2
No. of
Amount % Amount Amount % Amount Parcels
Delinquent Delinquent Delinquenl') Delinquent Levied
NA NA $ 0.00% 1,339
$29,541.82 4.77%(2) 170.64 0.03 1,339
15,738.00 2.43%(3) 362.12 0.06 1,339
10,375.00 1.59%(4) 1,395.46 0.21 1,339
NA NA 30,295.17 4.66 1,340
Fiscal
Year
Amount
Levied
2000-01
2001-02
2002-03
2003-04
2004-05
$ 639,443.06
619,198.18
646,834.36
650,652.12
650,047.02
(1) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004.
Source: MuniFinancial.
No. of
Parcels
Delinquent
1
I
7
70
Limited obligation bonds entitled "City of Chula Vista Reassessment District No. 2005-1 Limited
Obligation Refunding Bonds (AD 87-1/88-2) (the "2005-1 Reassessment Bonds") will be issued in the
aggregate principal amount of $7,770,000' concurrently with the issuance of the Bonds. The 2005-1
Reassessment Bonds are primarily payable from unpaid Reassessments levied on assessable real property
within Reassessment District No. 2005-1. Debt service payable on the 2005-1 Reassessment Bonds constitutes
a portion of Revenues securing payment of the Bonds.
Table 9 below sets forth the estimated annual Reassessment levy and the estimated debt service on the
2005-1 Reassessment Bonds based on the annual unpaid Reassessments levied in Reassessment District
No. 2005-1.
TABLE 9
ESTIMATED DEBT SERVICE COVERAGE
REASSESSMENT DISTRICT NO. 2005-1
Bond Year Ending
September 1
2006
2007
2008
2009
2010
2011
2012
2013
2014
Reassessment Lery
$ 1,060,093.76
1,058,047.52
1,064,947.52
1,070,152.52
1,077,938.76
1,083,498.76
1,085,790.00
1,080,150.00
576,645.00
(I) Preliminary, subject to change.
Source: MuniFinancial.
. Preliminary, subject to change.
DOCSOC/II01647v7/22245-0158
2005-1 Reassessment
Bonds Debt Servicl1)
$ 1,060,093.76
1,058,047.52
1,064,947.52
1,070,152.52
1,077,938.76
1,083,498.76
1,085,790.00
1,080,150.00
576,645.00
26
3-75
2005-1 Reassessment
Bonds Coverage
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Direct and Overlapping Debt. Within the boundaries of Reassessment District No. 2005-1 are
numerous overlapping local agencies providing public services. Some of these local agencies have outstanding
bonds or other forms of indebtedness which are secured by taxes and assessments on the parcels within
Reassessment District No. 2005-1 and others have authorized but unissued bonds which, if issued, will also be
secured by taxes and assessments levied on parcels within Reassessment District No. 2005-1. The
approximate amount of the direct and overlapping debt secured by such taxes and assessments on the parcels
within Reassessment District No. 2005-1 for fiscal 2004-05 is shown in Table 10 below. See "SPECIAL
RlSK FACTORS-Direct and Overlapping Debt."
Information for Table 10 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 10 and do
not guarantee the accuracy or completeness of this information.
27
DOCSOC!lIOl647v7122245-0158
3-76
TABLE 10
DIRECT AND OVERLAPPING DEBT
REASSESSMENT DISTRICT NO. 2005-1
2004-05 Local Secured Assessed Valuation: $1,193,845,041
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, J.D. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No.3
Chula Vista City School District Community Facilities District
City of Cbula Vista Reassessment District No. 2005-1
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District Certificates of Participation
City ofChula Vista Certificates of Participation
City ofChula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004-05 Assessed Valuation:(I)
Direct Debt ($7,770,000) .................................................................0.65%
Total Direct and Overlapping Tax and Assessment Debt ..................3.94%
Gross Combined Total Debt...............................................................6.45%
Net Combined Total Debt ..................................................................6.30%
% Aoolicable
0.090%
17.910
4.068
4.752
6.714
94.177
23.961
100.
0.473%
0.473
0.473
4.382
5.187
6.980
8.140
8.140
7.334
Debt 5/1/05
$ 376,371
1,782,941
3,658,311
3,993,581
4,959,968
22,560,797
1,903,70 I
7.770.000(1)
$47,005,670
$ 1,825,811
5,923,109
60,650
117,438
1,033,769
7,818,647
10,383,791
999,188
1.882638
$30,045,041
1.882.638
$28,162,403
$77,050,711 (2)
$75,168,073
(I) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-honded
capital lease obligations.
Source: California Municipal Statistics, Inc.
See Table 36 under the heading "THE DISTRICTS-Estimated Assessed Va1ue-to-lien" herein for
information regarding the estimated assessed value of land in Reassessment District 2005-1 to the total
estimated amount of the Bonds.
Reassessment District No. 2005-2
The boundaries of Reassessment District No. 2005-2 are coterminous with the boundaries of
Assessment District No. 97-2. Reassessment District No. 2005-2 is located in the eastern portion of the City,
approximately five miles east of the San Diego Freeway (1-5) and two miles east of I-80S on Telegraph road,
28
DOCSOC/lI01647v7/22245-0158
3-77
and is primarily residential in nature, but also contains some commercial developments. See "-Land Uses,
Development Status and Estimated Assessed Value-to-Lien Ratios" below.
Assessment District No. 97-2. Formed in 1997, Assessment District No. 97-2 is part of the master
planned community commonly known as "Otay Ranch." Assessment District No. 97-2 is located in "Village
One" of the Otay Ranch project and includes approximately 533 acres consisting of 1,567 single family
detacbed homes, 1,170 multifamily homes, approximately 8 acres of commercial uses, parks and open space.
The public improvements financed through Assessment District No. 97-2 included the acquisition of
street, water, drainage, and utility improvements, together with appurtenances and appurtenant work, and
incidental costs and expenses related thereto. All public improvements financed through Assessment District
No. 97-2 have been completed.
Table II below summarizes the historical delinquencies for Assessment District No. 97-2 from fiscal
year 2000-01 to fiscal year 2004-05.
TABLE 11
Fiscal
Year
HISTORY OF DELINQUENCIES
ASSESSMENT DISTRICT NO. 97-2
No. of
Amount Amount % Amount Amount % Amount Parcels
Levied Delinquent Delinquent Delinquent') Delinquent Levied
$ 942,929.84 NA NA $ 0.00% 1,192
917,671.52 $ 8,659.00 0.94%(2) 0.00 1,574
946,847.54 15,632.00 1.65%(3) 585.20 0.06 1,576
950,936.42 4,844.00 0.51%(4) 2,297.02 0.24 1,576
950,447.58 NA NA 27,518.40 2.90 1,576
No. of Parcels
Delinquent
2000-01
2001-02
2002-03
2003-04
2004-05
2
6
112
(I) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004
Source: San Diego County Tax Collector
Limited obligation bonds entitled "City of Chula Vista Reassessment District No. 2005-2 Limited
Obligation Refunding Bonds (AD 97-2) (the "2005-2 Reassessment Bonds") will be issued in the aggregate
principal amount of $10,755,000' concurrently with the issuance of the Bonds. The 2005-2 Reassessment
Bonds are primarily payable from unpaid Reassessments levied on assessable real property within
Reassessment District No. 2005-2. Debt service payable on the 2005-2 Reassessment Bonds constitutes a
portion of Revenues securing payment of the Bonds.
Table 12 below sets forth the estimated Reassessment levy and the estimated debt service on the
2005-2 Reassessment Bonds based on the annual unpaid Reassessments levied in Reassessment District
No. 2005-2.
. Preliminary. subject to change.
29
DOCSOC/lIOI647v7/22245-0158
3-78
Bond Year Ending
September 1
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
(1) Preliminary, subject to change.
Source: MuniFinancial.
TABLE 12
ESTIMATED DEBT SERVICE COVERAGE
REASSESSMENT DISTRICT NO. 2005-2
Reassessment Levy
2005-2 Reassessment
Bonds Debt Servici1J
2005-2
Reassessment
Bonds Coverage
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
Direct and Overlapping Debt. Within the boundaries of Reassessment District No. 2005-2 are
numerous overlapping local agencies providing public services. Some of these local agencies have outstanding
bonds or other forms of indebtedness which are secured by taxes and assessments on the parcels within
Reassessment District No. 2005-2 and others have authorized but unissued bonds which, if issued, will also be
secured by taxes and assessments levied on parcels within Reassessment District No. 2005-2. The
approximate amount of the direct and overlapping debt secured by such taxes and assessments on the parcels
within Reassessment District No. 2005-2 for fiscal 2004-05 is shown in Table 13 below. See "SPECIAL
RISK FACTORS--Direct and Overlapping Debt."
$ 746,001.00
745,138.00
741,738.00
737,893.00
738,360.50
738,120.50
741,818.00
744,398.00
740,808.00
741,378.00
745,978.00
744,373.00
736,838.00
738,563.00
739,100.50
738,420.50
741,493.00
743,189.26
738,484.26
737,584.26
745,235.50
746,095.50
735,383.00
738,558.00
$ 746,001.00
745,138.00
741,738.00
737,893.00
738,360.50
738,120.50
741,818.00
744,398.00
740,808.00
741,378.00
745,978.00
744,373.00
736,838.00
738,563.00
739,100.50
738,420.50
741,493.00
743,189.26
738,484.26
737,584.26
745,235.50
746,095.50
735,383.00
738,558.00
Information for Table 13 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 13 and do
not guarantee the accuracy or completeness of this information.
DOCSOC/l101647v7/22245-0158
30
3-79
TABLE 13
DffiECT AND OVERLAPPING DEBT
REASSESSMENT DISTRICT NO. 2005-2
2004-05 Local Secured Assessed Valuation: $664,556,716
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, J.D. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No.6
Sweetwater Union High School District Community Facilities District No. 99-1
City of Chula Vista Reassessment District No. 2005-2
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District Certificates of Participation
City ofChula Vista Certificates of Participation
City of Chula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004-05 Assessed Valuation:(l)
Direct Debt ($1 0, 755,000)..................................................................1. 78%
Total Direct and Overlapping Tax and Assessment Debt.....................4.63%
Gross Combined Total Debt.................................................................7.14%
Net Combined Total Debt ....................................................................6.99%
% Aoolicable
0.050%
9.839
2.264
2.645
3.737
2.520
25.085
100.
0.263%
0.263
0.263
2.439
2.887
3.886
4.531
4.531
4.083
Debt 5/1/05
$ 209,095
979,472
2,035,992
2,222,858
2,760,709
568,719
10, I 06, 788
10.755.000 (1)
$29,638,633
$ 1,015,197
3,293,399
33,723
65,365
575,379
4,352,903
5,779,970
556,182
1.048.106
$16,720,224
1.048 106
$15,672,118
$46,358,857 (2)
$45,310,751
(1) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
See Table 36 under the heading "THE DlSTRlCTS-Estimated Assessed Value-to-lien" herein for
infonnation regarding the estimated assessed value of land in Reassessment District 2005-2 to the total
estimated amount of the Bonds.
The Community Facilities Districts
Community facilities districts are fonned to finance public improvements for the general benefit for
land within such districts. Bonds issued in connection with community facilities district financings are secured
by and payable by the levy of special taxes. The CFD Refunding Bonds consist of individual issues of bonds
31
DOCSOC/I 101647v7/22245-0158
3-80
secured by Special Taxes levied in the five community facilities districts located in the City as described
below.
Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One) ("CFD No. 97-3") was
formed in 1998. CFD No. 97-3 consists of approximately 293 acres within Otay Ranch and is located
approximately three miles east of the downtown area of the City. Land in CFD No. 97-3 has been developed
with 1,474 single residential units, a 4.8 acre community purpose site and 2.8 acres of commercial uses.
The public improvements financed through CFD No. 97-3 consists of various roadway and landscape
improvements. All of the public improvements financed through CFD No. 97-3 have been completed.
Table 14 below sets forth the current Maximum Special Taxes that may be levied on property within
CFD No. 97-3 in fiscal year 2004-05.
TABLE 14
MAXIMUM SPECIAL TAXES
CFD NO. 97-3
Tax Class
No.o/Units!
Sq. FLlAcres
2,661,273.00
7.59
Maximum Special
Tax Per Unit!
Sq. FLlAcre
$0.392 per Sq. Fl.
$4,000 per Acre
$1,00 per Acre
$7,954 per Acre
Maximum 2004-05
Special Taxes
1,043,219.02
30,360.00
Residential
Conunercial
Community Purpose Facility Property
Undeveloped
Source: MuniFinancial.
Percent of
Total
97%
3
o
o
Table 15 summarizes the historical delinquencies for CFD No. 97-3 from fiscal year 2001-02 (the first
year in which Special Taxes were levied) to fiscal year 2004-05.
TABLE 15
HISTORY OF DELINQUENCIES
CFD NO. 97-3
No. of
Fiscal Amount Amount % Amount Amount % Amount Parcels
Year Levied Delinquent Delinquent Delinquen!1i Delinquent Levied
2001-02 $926,995.66 $ 5,862.00 0.63%(2) $ 0.00% 1,018
2002-03 786,288.24 8,241.00 1.05%(3) 0.00 1,018
2003-04 855,155.84 5,656.00 0.66%(4) 3,170.32 0.37 1,018
2004-05 878,853.50 NA NA 33,274.20 3.79 1,018
(I) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004.
Source: MuniFinancial.
No. of
Parcels
Delinquent
6
75
Special tax refunding bonds entitled "City of Chula Vista Community Facilities District No. 97-3
(Otay Ranch McMillan Spa One) 2005 Special Tax Refunding Bonds (the "CFD No. 97-3 Bonds") will be
32
DOCSOCIl1 0 164 7v7/22245-0 158
3-81
issued in the aggregate principal amount of $11,875,000' concurrently with the issuance of the Bonds. The
CFD No. 97-3 Bonds are payable from Special Taxes levied on taxable real property within CFD No. 97-3.
Debt service payable on the CFD No. 97-3 Bonds constitutes a portion of the Revenues securing payment of
the Bonds.
Table 16 below illustrates the estimated debt service coverage for the CFD No. 97-3 based on the
Maximum Special Taxes that may be levied on property within CFD No. 97-3 based on development status as
of March 1, 2004.
TABLE 16
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 97-3
Maximum Special Tax CFD No. 97-3 Bonds
Bond Year Ending Developed Undeveloped CFD No. 97-3 Coverage from Maximum
September 1 Propertyll) Property(l) Bonds Debt Service(2) Special TaxeS<2)
2006 $ 1,073,579.02 $ $ 815,812.75 1.32
2007 1,073,579.02 821,729.50 1.31
2008 1,073,579.02 817,489.50 1.31
2009 1,073,579.02 817,774.50 1.31
2010 1,073,579.02 822,165.76 1.31
2011 1,073,579.02 820,645.76 1.31
2012 1,073,579.02 817,973.26 1.31
2013 1,073,579.02 819,293.26 1.31
2014 1,073,579.02 814,382.00 1.32
2015 1,073,579.02 818,587.00 1.31
2016 1,073,579.02 821,587.00 1.31
2017 1,073,579.02 818,342.00 1.31
2018 1,073,579.02 819,137.00 1.31
2019 1,073,579.02 818,737.00 1.31
2020 1,073,579.02 822,112.00 1.31
2021 1,073,579.02 819,012.00 1.31
2022 1,073,579.02 819,623.26 1.31
2023 1,073,579.02 818,830.76 1.31
2024 1,073,579.02 816,609.50 1.31
2025 1,073,579.02 817,934.50 1.31
2026 1,073,579.02 817,547.00 1.31
2027 1,073,579.02 815,587.00 1.32
2028 1,073,579.02 817,039.50 1.31
2029 1,073,579.02 806,652.00 1.33
(I) No escalation allowed in the Rate and Method of Apportionment.
(2) Preliminary, subject to change.
Source: MuniFinancial.
See Table 36 under the heading "THE DlSTRlCTS-Estimated Assessed Value-to-lien" herein for
information regarding the estimated assessed value of land in CFD No. 97-3 to the total estimated amount of
the Bonds.
Direct and Overlapping Debt. Within the boundaries of CFD No. 97-3 are numerous overlapping
local agencies providing public services. Some of these local agencies have outstanding bonds or other forms
of indebtedness which are secured by taxes and assessments on the parcels within CFD No. 97-3 and others
have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on
. Preliminary, subject to change.
33
DOCSOC/IIOI647v7/22245-0158
3-82
parcels within CFD No. 97-3. The approximate amount of the direct and overlapping debt secured by such
taxes and assessments on the parcels within CFD No. 97-3 for fiscal 2004-05 is shown in Table 17 below. See
"SPECIAL RISK FACTORS-Direct and Overlapping Debt."
Information for Table 17 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 17 and do
not guarantee the accuracy or completeness of this information.
TABLE 17
DIRECT AND OVERLAPPING DEBT
CFD NO. 97-3
2004-05 Local Secured Assessed Valuation: $384,125,381
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, 1.0. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No. II
City of Chnla Vista Community Facilities District No. 97-3
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGA nON DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District General Fund Obligations
City ofChula Vista Certificates of Participation
City ofChula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004-05 Assessed Valuation(l}
Direct Deht ($11,875,000)..................................................................3.09%
Total Direct and Overlapping Tax and Assessment Debt.....................6.33%
Gross Combined Total Debt.................................................................8.85%
Net Combined Total Debt ....................................................................8.76%
% Aoolicable
0.029%
5.922
1.309
1.519
2.160
85.209
100.
0.152%
0.152
0.152
1.410
1.669
2.246
2.619
2.619
2.360
Debt 5/1/05
$ 121,275
589,535
1,177,170
1,284,972
1,595,700
7,672,967
11.875.000 (1)
$24,316,619
$ 586,730
1,903,409
19,490
37,788
332,632
2,515,857
3,340,927
321,483
605.812
$9,664,128
605812
$9,058,316
$33,980,747(2)
$33,647,935
(1) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
Community Facilities District No. 99-1 (Otay Ranch SPA One-Portions of Village One, Village
Five and Village One West) ("CFD No. 99-1") was formed in 1999. CFD No. 99-1 consists of approximately
34
DOCSOCIlIOl647v7/22245-0158
3-83
1,000 acres within Otay Ranch and is located approximately 3.5 miles east of the downtown area of the City.
Land within CFD No. 99-1 has been developed with 2,239 single family detached units, 996 multifamily units,
a 3.4 acre commercial site and various community purpose facilities.
The public improvements financed through CFD No. 99-1 consists of various roadway and landscape
improvements and various public utilities. All of the public improvements financed through CFD No. 99-1
have been completed.
Table 18 below sets forth the current Maximum Special Taxes that may be levied on property within
CFD No. 99-1 in fiscal year 2004-05.
TABLE 18
MAXIMUM SPECIAL TAXES
CFD NO. 99-1
Maximum
No. of Units/ Special Tax Per Maxifllllm 2004-05 Percent
Tax Class Zone Sq. FLlAcres Unit/Sq. FLlAcre Special Taxes of Total
Residential A 3,561,593.00 $0.28 per Sq Ft 997,246.04 26%
Commercial A 5.53 $1,600 per Acre 8,843.20 0
Community Purpose Facility Property A $400 per acre 0
Undeveloped A 4.90 $8,864 per Acre 43,407.01 1
Taxable Property Owner Assoc. Property A $8,864 per Acre 0
Residential B 2,588,578.00 $0.29 per Sq Ft 750,687.62 20
Residential B 1,230.00 $400 per Unit 492,000.00 13
Commercial B $3,717 per Acre 0
Community Purpose Facility Property B $929 per Acre 0
Undeveloped B 4.63 $8,864 per Acre 41,031.46 1
Taxable Property Owner Assoc. Property B $8,864 per Acre 0
Residential C 2,518,246.00 $0.44 per Sq Ft 1,108,028.24 29
Residential C 861.00 $400 per Unit 344,400.00 9
Commercial C $4,266 per Acre 0
Community Purpose Facility Property C $1,066 per Acre 0
Undeveloped C 6.13 $8,864 per Acre 54,354.05 1
Taxable Property Owner Assoc. Property C $8,864 per Acre 0
Source: MuniFinanciaI.
35
DOCSOC/I101647v7/22245-0158
3-84
Table 19 below summarizes the historical delinquencies for CFD No. 99-1 from fiscal year 2001-02
(the first year in which Special Taxes were levied) to fiscal year 2004-05.
TABLE 19
HISTORY OF DELINQUENCIES
CFD NO. 99-1
Fiscal
Year
No. of
Amount Amount % Amount Amount % Amount Parcels
Levied Delinquent Delinquent Delinquentl) Delinquent Levied
$ 2,033,394.20 $ 5,150.00 0.25%(2) $ 0.00% 849
3,352,225.02 39,393.00 1.18%(3) 587.44 0.02 2,344
3,332,601.08 23,097.00 0.69%(4) 9,931.91 0.30 2,878
3,347,435.38 NA NA 258,016.27 7.71 3,050
No. of
Parcels
Delinquent
2001-02
2002-03
2003-04
2004-05
I
10
224
(l) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004.
Source: MuniFinancial.
Special tax refunding bonds entitled "Chula Vista Community Facilities District No. 99-1 (Otay
Ranch SPA One-Portions of Village One, Village Five and Village One West) 2005 Special Tax Refundin&
Bonds (the "CFD No.99-1 Bonds") will be issued in the aggregate principal amount of $43,620,000
concurrently with the issuance of the Bonds. The CFD No. 99-1 Bonds are payable from Special Taxes levied
on taxable real property within CFD No. 99-1. Debt Service payable on the CFD No. 99-1 Bonds constitutes a
portion of the Revenues securing payment of the Bonds.
Table 20 below illustrates the estimated debt service coverage for the CFD No. 99-1 Bonds based on
the Maximum Special Taxes that may be levied on property within CFD No. 99-1 based on existing
development.
. Preliminary, subject to change.
36
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,
TABLE 20
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 99-1
Maximum Special Tax Coveragefrom
Maximum
CFDNo. 99-1 Special Taxes Coverage from
Bond Year Ending Developed Undeveloped Bonds Debt on Developed All Maximum
September 1 Property(l) Property(l) Servici2) Propertyl)) Special Taxes(2)
2006 $ 3,701,205.10 $ 138,792.51 $ 2,888,060.18 1.28 1.33
2007 3,701,205.10 138,792.51 2,889,033.02 1.28 1.33
2008 3,701,205.10 138,792.51 2,889,773.02 1.28 1.33
2009 3,701,205.10 138,792.51 2,888,598.02 1.28 1.33
2010 3,701,205.10 138,792.51 2,889,619.26 1.28 1.33
2011 3,701,205.10 138,792.51 2,888,139.26 1.28 1.33
2012 3,701,205.10 138,792.51 2,892,895.50 1.28 1.33
2013 3,701,205.10 138,792.51 2,893,975.50 1.28 1.33
2014 3,701,205.10 138,792.51 2,886,221.76 1.28 1.33
2015 3,701,205.10 138,792.51 2,890,326.76 1.28 1.33
2016 3,701,205.10 138,792.51 2,890,926.76 1.28 1.33
2017 3,701,205.10 138,792.51 2,887,911.76 1.28 1.33
2018 3,701,205.10 138,792.51 2,896,539.26 1.28 1.33
2019 3,701,205.10 13 8,792.51 2,891,089.26 1.28 1.33
2020 3,701,205.10 138,792.51 2,891,889.26 1.28 1.33
2021 3,701,205.10 138,792.51 2,888,409.26 1.28 1.33
2022 3,701,205.10 138,792.51 2,890,544.26 1.28 1.33
2023 3,701,205.10 138,792.51 2,898,189.26 1.28 1.32
2024 3,701,205.10 13 8,792.51 2,895,806.76 1.28 1.33
2025 3,701,205.10 138,792.51 2,898,538.02 1.28 1.32
2026 3,701,205.10 138,792.51 2,890,830.52 1.28 1.33
2027 3,701,205.10 138,792.51 2,898,370.52 1.28 1.32
2028 3,701,205.10 138,792.51 2,900,168.00 1.28 1.32
2029 3,701,205.10 138,792.51 2,886,168.00 1.28 1.33
2030 3,701,205.10 138,792.51 2,997,168.00 1.23 1.28
2031 3,701,205.10 138,792.51 3,001,947.00 1.23 1.28
(I) No escalation allowed in the Rate and Method of Apportionment.
(2) Preliminary, subject to change.
Source: MuniFinancial.
See Table 36 under the heading "THE DISTRICTS-Estimated Assessed Value-to-lien" herein for
information regarding the estimated assessed value of land in CFD No. 99-1 to the total estimated amount of
the Bonds.
Direct and Overlapping Debt. Within the boundaries of CFD No. 99-1 are numerous overlapping
local agencies providing public services. Some of these local agencies have outstanding bonds or other forms
of indebtedness which are secured by taxes and assessments on the parcels within CFD No. 99-1 and others
have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on
parcels within CFD No. 99-1. The approximate amount of the direct and overlapping debt secured by such
taxes and assessments on the parcels within CFD No. 99-1 for fiscal 2004-05 is shown in Table 21 below. See
"SPECIAL RISK FACTORS-Direct and Overlapping Debt."
Information for Table 21 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 21 and do
not guarantee the accuracy or completeness of this information.
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TABLE 21
DIRECT AND OVERLAPPING DEBT
CFD NO. 99-1
2004-05 Local Secured Assessed Valuation: $1,283,023,974
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, LD. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No.6
Sweetwater Union High School District Community Facilities District No. 12
City ofChula Vista Community Facilities District No. 99-1
City ofChula Vista Assessment District No. 97-2
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District General Fund Obligations
City ofChula Vista Certificates of Participation
City ofChula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004-05 Assessed Valuation(l)
Direct Debt ($43,620,000)................................................................3.40%
Total Direct and Overlapping Tax and Assessment Deb!................... 6.97%
Gross Combined Total Debt............................................................... 9.48%
Net Combined Total Debt .................................................................. 9.33%
% Aoolicable
0.097%
18.630
4.371
5.107
7.215
83.709
100.
100.
77.118
0.508%
0.508
0.508
4.709
5.574
7.502
8.748
8.748
7.882
Debt 5/1/05
$ 405,644
1,854,617
3,930,795
4,291,923
5,330,081
18,891,620
2,774,574
43,620,000 (I)
8.295.410
$89,393,282
$ 1,960,914
6,361,394
65,138
126,201
1,110,898
8,403,365
11,159,386
1,073,820
2.023.309
$32,284,425
2.023.309
$30,261,116
$121,677,707(2)
$119,654,398
(I) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
Community Facilities District No. 2000-1 (Sunbow II-Villages 5 through 10) ("CFD No. 2000-1")
was formed in 2000. CFD No. 2000-1 consists of approximately 141 acres located approximately five miles
east of the downtown area of the City and 10 miles southeast of downtown San Diego. Land within CFD
No. 2000-1 has been developed with 595 single family detached units.
The public improvements fmanced through CFD No. 2000-1 consists of various roadway and
landscape improvements and various public utilities. All public improvements fmanced through CFD
No. 2000-1 have been completed.
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Table 22 below sets forth the current Maximum Special Taxes that may be levied on property within
CFD No. 2000-1 in fiscal year 2004-05.
TABLE 22
MAXIMUM SPECIAL TAXES
CFD NO. 2000-1
Tax Class
No. of Units!
Sq. FUAcres
1,517,509.00
Maximum Special
Tax Per Unit!
Sq. FUAcre
$0.44 per Sq Ft
$7,851 per Acre
$7,851 per Acre
Maximum 2004-05
Special Taxes
Percent of
Total
Residential
Undeveloped
Taxable Property Owner Assoc. Property
667,703.96
100%
o
o
Source: MuniFinancial.
Table 23 below summarizes the historical delinquencies for CFD No. 2000-1 from fiscal year 2001-02
(the first year in which Special Taxes were levied) to fiscal year 2004-05.
TABLE 23
HISTORY OF DELINQUENCIES
CFD NO. 2000-1
Fiscal
Year
Amount
Levied
No. of
Amount % Amount Amount % Amount Parcels
Delinquent Delinquent Delinquenll) Delinquent Levied
$ 2,579.00 0.46%(2) $ 0.00% 596
8,223.00 1.40%(3) 0.00 595
489.00 0.08%(4) 489.20 0.08 595
NA NA 14,112.06 3.18 595
No. of
Parcels
Delinquent
2001-02
2002-03
2003-04
2004-05
$ 558,553.82
589,433.14
594,362.96
444,048.98
1
32
(I) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
(4) Amount delinquent as of October 29, 2004.
Source: MuniFinancial.
Special tax refunding bonds entitled "Chula Vista Community Facilities District No. 2000-1
(Sunbow 11- Villages 5 though 10) 2005 Special Tax Refunding Bonds (the "CFD No. 2000-1 Bonds") will
be issued in the aggregate principal amount of $7,520,000' concurrently with the issuance of the Bonds. The
CFD No. 2000-1 Bonds are payable from Special Taxes levied on taxable real property within CFD
No.2000-1. Debt service payable on the CFD No.2000-1 Bonds constitutes a portion of the Revenues
securing payment of the Bonds.
. Preliminary, subject to change.
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Table 24 below illustrates the estimated debt service coverage for the CFD No. 2000-1 Bonds based
on the Maximum Special Taxes that may be levied on property within CFD No. 2000-1 based on development
status as of March 1, 2004.
TABLE 24
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 2000-1
Maximum Special Tax
Bond Year Ending Developed Undeveloped CFD No. 2000-1 Coverage/rom Maximum
September 1 Property(]) Property(]) Bonds Debt Service(2) Special TflXI!s"J
2006 $ 667,703.96 $ $ 511,114.92 1.31
2007 667,703.96 509,458.50 1.31
2008 667,703.96 508,998.50 1.31
2009 667,703.96 508,198.50 1.31
2010 667,703.96 506,894.76 1.32
2011 667,703.96 510,174.76 1.31
2012 667,703.96 507,639.76 1.32
2013 667,703.96 504,539.76 1.32
2014 667,703.96 510,857.26 1.31
2015 667,703.96 506,302.26 1.32
2016 667,703.96 511,302.26 1.31
2017 667,703.96 505,437.26 1.32
2018 667,703.96 509,164.76 1.31
2019 667,703.96 507,052.26 1.32
2020 667,703.96 509,293.50 1.31
2021 667,703.96 505,653.50 1.32
2022 667,703.96 506,333.50 1.32
2023 667,703.96 506,174.76 1.32
2024 667,703.96 510,162.26 1.31
2025 667,703.96 508,049.76 1.31
2026 667,703.96 505,051.00 1.32
2027 667,703.96 506,251.00 1.32
2028 667,703.96 511,406.00 1.31
2029 667,703.96 510,268.50 1.31
2030 667,703.96 508,134.50 1.31
(1) No escalation allowed in the Rate and Method of Apportionment.
(2) Preliminary, subject to change.
Source: MuniFinancial.
See Table 36 under the heading "THE DISTRICTS-Estimated Assessed Value-to-lien" herein for
information regarding the estimated assessed value of land in CFD No. 2000-1 to the total estimated amount of
the Bonds.
Direct and Overlapping Debt. Within the boundaries of CFD No. 2000-1 are numerous overlapping
local agencies providing public services. Some of these local agencies have outstanding bonds or other forms
of indebtedness which are secured by taxes and assessments on the parcels within CFD No. 2000-1 and others
have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on
parcels within CFD No. 2000-1. The approximate amount of the direct and overlapping debt secured by such
taxes and assessments on the parcels within CFD No. 2000-1 for fiscal 2004-05 is shown in Table 25 below.
See "SPECIAL RISK FACTORS-Direct and Overlapping Debt."
40
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Information for Table 25 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 25 and do
not guarantee the accuracy or completeness of this information.
TABLE 25
DIRECT AND OVERLAPPING DEBT
CFD NO. 2000-1
2004-05 Local Secured Assessed Valuation: $222,985,700
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, J.D. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No.4
Chula Vista City School District Community Facilities District
City ofChula Vista Community Facilities District No. 2000-1
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBLIGA nON DEBT:
San Diego County Certificates of Participation
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District General Fund Obligations
City ofChula Vista Certificates of Participation
City of Chula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGA nON DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004-05 Assessed Valuation(l)
Direct Deht ($7,520,000)...........................................................................3.37%
Total Direct and Overlapping Tax and Assessment Debl............................6.68%
Gross Combined Total Debt........................................................................ 9.20%
Net Combined Total Debt ........................................................................... 9.04%
% Aoolicable
0.017%
3.438
0.760
0.888
1.254
33.506
4.518
100.
0.088%
0.088
0.088
0.818
0.969
1.304
1.520
1.520
1.370
Debt 511105
$ 71,092
342,253
683,460
746,275
926,393
4,253,944
358,995
7.520.000(1)
$14,902,372
$ 339,686
1,101,974
11 ,284
21,922
193,122
1,460,676
1,938,988
186,581
351.679
$5,605,912
351.679
$5,254,233
$20,508,284 (2)
$20,156,605
(I) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
Community Facilities District No. 2001-1 (San Miguel Ranch) ("CFD No. 2001-1") was formed in
2001. Improvement Area A was designated within CFD No.200i-1 upon formation of CFD No. 2001-1.
Improvement Area A ofCFD No. 2001-1 consists of approximately 475 acres and is located east of Interstate
805 approximately seven miles southeast of downtown San Diego. Land within Improvement Area A of CFD
No. 2001-1 is approved to be developed with 603 single family detached units and 458 multifamily units. As
of May I, 2005, land within Improvement Area A of CFD No. 2001-1 has been developed with 550 single
family detached units and 110 multifamily units.
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The public improvements financed through CFD No. 2001-1 included various roadway and landscape
improvements. All of the public improvements financed through CFD No. 2001-1 for Improvement Area A
bave been completed.
Table 26 below sets forth the current Maximum Special Taxes that may be levied on property within
Improvement Area A ofCFD No. 2001-1 in fiscal year 2004-05.
TABLE 26
MAXIMUM SPECIAL TAXES
CFD NO. 2001-1
IMPROVEMENT AREA A
Tax Class
Maximum Special
No. of Units! Tax Per Unit! Maximum 1005-06 Percent of
Sq. FL/Acres Sq. FLlAcre Special Taxes Total
1,447,432.00 $0.34 per Sq Ft 548,952.88 35%
574.00 $475 per Unit 272,650.00 17
$5,091 per Acre 0
73.36 $10,376 per Acre 761,183.36 48
Residential
Residential
Commercial
Undeveloped
Source: MuniFinancial.
Table 27 below summarizes the historical delinquencies for Improvement Area A ofCFD No. 2001-1
from fiscal year 2002-03 (the first year in which Special Taxes were levied) to fiscal year 2004-05.
TABLE 27
HISTORY OF DELINQUENCIES
CFD NO. 2001-1
IMPROVEMENT AREA A
Fiscal Amount Amount % Amount Amount
Year Levied Delinquent Delinquent Delinquent])
2002-03 $ 1,037,719.94 $ 0.00%(2) $
2003-04 1,082,770.92 2,065.00 0.19%(3) 2,064.68
2004-05 1,098,293.36 NA NA 48,366.26
% Amount
Delinquent
0.00%
0.19
4.40
No. of
Parcels
Levied
No. of
Parcels
Delinquent
19
318
672
2
61
(1) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
(3) Amount delinquent as of July 30, 2003.
Source: MuniFinancial.
Special tax refunding bonds entitled "Chula Vista Community Facilities District No. 2001-1 (San
Miguel Ranch) 2005 Improvement Area A Special Tax Refunding Bonds (the "CFD No. 2001-1 Bonds") will
be issued in the aggregate principal amount of $15,225,000' concurrently with the issuance of the Bonds. The
CFD No. 2001-1 Bonds are payable from Special Taxes levied on taxable real property within CFD
No.2001-1. Debt service payable on the CFD No. 2001-1 Bonds constitutes a portion of Revenues securing
payment of the Bonds.
. Preliminary, subject to change.
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Table 28 below illustrates the estimated debt service coverage for the CFD No. 2001-1 Bonds based
on the Maximum Special Taxes that may be levied on property within CFD No. 2001-1 based on development
status as of March I, 2004.
TABLE 28
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 2001-1
IMPROVEMENT AREA A
Maximum Special Tax Coverage from
Bond Year CFDNo.2001-1 Maximum Special Coverage from All
Ending Developed Undeveloped Bonds Debt Taxes on Developed Maximum Special
September 1 Property(J) Property(]) Servici2) Property(2) Taxei2)
2006 $ 821,602.88 $ 761,183.36 $ 993,729.17 0.83 1.59
2007 821,602.88 761,183.36 993,645.00 0.83 1.59
2008 821,602.88 761,183.36 993,985.00 0.83 1.59
2009 821.602.88 761,183.36 993,690.00 0.83 1.59
2010 821,602.88 761,183.36 997,466.26 0.82 1.59
20ll 821,602.88 761,183.36 990,306.26 0.83 1.60
2012 821,602.88 761,183.36 992,120.00 0.83 1.60
2013 821,602.88 761,183.36 997,720.00 0.82 1.59
2014 821,602.88 761,183.36 991,865.00 0.83 1.60
2015 821,602.88 761,183.36 995,095.00 0.83 1.59
2016 821,602.88 761,183.36 992,095.00 0.83 1.60
2017 821,602.88 761,183.36 993,030.00 0.83 1.59
2018 821,602.88 761,183.36 992,781.26 0.83 1.59
2019 821,602.88 761,183.36 991,318.76 0.83 1.60
2020 821,602.88 761,183.36 993,612.50 0.83 1.59
2021 821,602.88 761,183.36 994,412.50 0.83 1.59
2022 821,602.88 761,183.36 993,681.26 0.83 1.59
2023 821,602.88 761,183.36 991,531.26 0.83 1.60
2024 821,602.88 761,183.36 992,937.50 0.83 1.59
2025 821,602.88 761,183.36 992,643.76 0.83 1.59
2026 821,602.88 761,183.36 995,620.00 083 1.59
2027 821,602.88 761,183.36 991,780.00 0.83 1.60
2028 821,602.88 761,183.36 991,342.50 0.83 1.60
2029 821,602.88 761,183.36 994,055.00 0.83 1.59
2030 821,602.88 761,183.36 994,785.00 0.83 1.59
2031 821,602.88 761,183.36 993,524.50 0.83 1.59
2032 821,602.88 761,183.36 990,265.50 0.83 1.60
(1) No escalation allowed in the Rate and Method of Apportionment.
(2) Preliminary, subject to change.
Source: MuniFinanciaI.
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Table 28A below illustrates debt service coverage for CFD No. 2001-1 Bonds based on the Maximum
Special Taxes that may be levied on Developed Property only within Improvement Area A ofCFD No. 2001-1
based on development status as of March I, 2005.
TABLE 28A
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 2001-1
IMPROVEMENT AREA A
(DEVELOPED PROPERTY ONLY)
CFD No. 2001-1
Bonds Coverage
from Maximum CFD No. 2001-1
Bond Year Maximum Special Maximum Special CFD No. 2001-1 Special Taxes Bonds Coverage
Ending Tax Devel~fted Tax UndevelotiJed Bonds Debt (Developed from Maximum
September 1 Property (1 (2) Property (1) '2) ServiciJ) Properly Only pi Special TaxeiJ)
2006 $ 928,087.84 $ 433, 198.00 $ 993,729.17 0.93 1.37
2007 928,087.84 433,198.00 993,645.00 0.93 1.37
2008 928,087.84 433,198.00 993,985.00 0.93 1.37
2009 928,087.84 433,198.00 993,690.00 0.93 1.37
2010 928,087.84 433,198.00 997,466.26 0.93 1.36
2011 928,087.84 433,198.00 990,306.26 0.94 1.37
2012 928,087.84 433,198.00 992,120.00 0.94 1.37
2013 928,087.84 433,198.00 997,720.00 0.93 1.36
2014 928,087.84 433,198.00 991,865.00 0.94 1.37
2015 928,087.84 433,198.00 995,095.00 0.93 1.37
2016 928,087.84 433,198.00 992,095.00 0.94 1.37
2017 928,087.84 433,198.00 993,030.00 0.93 1.37
2018 928,087.84 433,198.00 992,781.26 0.93 1.37
2019 928,087.84 433,198.00 991,318.76 0.94 1.37
2020 928,087.84 433,198.00 993,612.50 0.93 1.37
2021 928,087.84 433,198.00 994,412.50 0.93 1.37
2022 928,087.84 433,198.00 993,681.26 0.93 1.37
2023 928,087.84 433,198.00 991,531.26 0.94 1.37
2024 928,087.84 433,198.00 992,937.50 0.93 1.37
2025 928,087.84 433,198.00 992,643.76 0.93 1.37
2026 928,087.84 433,198.00 995,620.00 0.93 1.37
2027 928,087.84 433,198.00 991,780.00 0.94 1.37
2028 928,087.84 433,198.00 991,342.50 0.94 1.37
2029 928,087.84 433,198.00 994,055.00 0.93 1.37
2030 928,087.84 433,198.00 994,785.00 0.93 1.37
2031 928,087.84 433,198.00 993,524.50 0.93 1.37
2032 928,087.84 433,198.00 990,265.50 0.94 1.37
(I) Developed Property Maximum Special Tax estimated based on building pennit5 issued in Improvement Area A of CFD
No. 2001-1 as of March 1, 2005. The square footage per unit has been estimated at the average amount of2,521.
(2) No escalation allowed in the Rate and Method of Apportionment.
(3) Preliminary, subject to change.
Source: MuniFinancial.
See Table 36 under the heading "THE DISTRICTS-Estimated Assessed Value-to-lien" herein for
information regarding the estimated assessed value of land in CFD No. 2001-1 to the total estimated amount of
the Bonds.
Direct and Overlapping Debt. Within the boundaries of CFD No. 2001-1 are numerous overlapping
local agencies providing public services. Some of these local agencies have outstanding bonds or other forms
of indebtedness which are secured by taxes and assessments on the parcels within CFD No. 2001-1 and others
44
DOCSOC/1101647v7/22245-0158
3-93
have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on
parcels within CFD No. 2001-1. The approximate amount of the direct and overlapping debt secured by such
taxes and assessments on the parcels within CFD No. 2001-1 for fiscal 2004-05 is shown in Table 29 below.
See "SPECIAL RISK FACTORS-Direct and Overlapping Debt."
Information for Table 29 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 29 and do
not guarantee the accuracy or completeness of this information.
TABLE 29
DIRECT AND OVERLAPPING DEBT
CFD NO. 2001-1
2004-05 Local Secured Assessed Valuation: $244,798,261
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, LD. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Sweetwater Union High School District Community Facilities District No. 13
City ofChula Vista Community Facilities District No. 2001-1
City ofChula Vista Community Facilities District 2001-1 LA. "A"
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
% Aoolicable
0.018%
3.774
0.834
0.974
1.377
100.
100.
100.
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District Certificates of Participation
City ofChula Vista Certificates of Participation
City of Chu1a Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
0.097%
0.097
0.097
0.899
1.064
1.431
1.669
1.669
1.504
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
Ratios to 2004~05 Assessed Valuation:(l)
Direct Debt ($15,225,000) ............................................................. 6.23%
Total Direct and Overlapping Tax. and Assessment Debt................. 7.74%
Gross Combined Total Debt........................................................... 10.26%
Net Combined Total Debt.............................................................. 10.10%
Debt 5/1/05
$ 75,274
375,702
750,008
818,550
1,017,25
689,634
o
15.225.000 (1)
$18,951,427
$ 374,426
1,214,676
12,438
24,093
212,055
1,602,935
2,129,060
204,870
386 077
$6,160,630
386 077
$5,774,553
$25,112,057 (2)
$24,725,980
{IJ Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
Community Facilities District No.06-1 (Eastlake-Woods, Vistas and Land Swap) ("CFD
No. 06-1") was formed in 2002. Improvement Area A was designated within CFD No. 06-1 upon formation of
CFD No. 06-1. Improvement Area A of CFD No. 06-1 consists of approximately 737 acres and is located
approximately five miles east of Interstate 805, along both the north and south sides of Otay Lakes Road.
45
DOCSOCIlIOI647v7/22245-0158
3-94
Land within Improvement AreaA of CFD No. 06-1 is approved to be developed with 1,439 single family
detached units, 581 multifamily units, a 12-acre commercial site and an 18.4-acre tourist hotel site. As of
May 01, 2005, land within Improvement Area A ofCFD No. 06-1 has been developed with 1,161 single family
detached units and 164 multifamily units.
The public improvements financed through CFD No. 06-1 for Improvement Area A therein consists of
various roadway and landscape improvements. As of May 1, 2005, a substantial portion of the public
improvements financed through CFD No. 06-1 for Improvement Area A has been completed.
Table 30 below sets forth the current Maximum Special Taxes that may be levied on property within
Improvement Area A ofCFD No. 06-1 in fiscal year 2004-05.
TABLE 30
MAXIMUM SPECIAL TAXES
CFD NO. 06-1
IMPROVEMENT AREA A
Tax Class
Maximum
No. of Units! Special Tax Per
Zone Sq. FLIAcres Unit/Sq. FLlAcre
1 t,763,502.00 $0.58 Sq Ft
t $6,000 per Acre
t $6,000 per Acre
t 1l2.85 $11,037 per Acre
2 1,371,946.00 $0.67 Sq Ft
2 $6,000 per Acre
2 92.13 $8,332 per Acre
Maximum ]005-06
Special Taxes
1,022,831.16
767,606.33
Percent
of Total
26%
o
o
31
23
o
19
Residential
Commercial
Hotel
Uodeveloped
Residential
Commercial
Undeveloped
1,245,521.83
919,203.82
Source: MuniFinancial.
The following Table 31 summarizes the historical delinquencies for Improvement Area A of CFD
No. 06-1 from fiscal year 2003-04 (the first year in which Special Taxes were levied) to fiscal year 2004-05.
TABLE 31
HISTORY OF DELINQUENCIES
CFD NO. 06-1
IMPROVEMENT AREA A
Fiscal
Year
Amount
Levied
No. of No. of
Amount % Amount Amount % Amount Parcels Parcels
Delinquent Delinquent Delinquent(1) Delinquent Levied Delinquent
$ 98,762 3.48%(2) $ 87,157.84 3.07% 1,280 4
NA NA 145,722.30 5.44 1,662 112
2003-04
2004-05
$ 2,841,844.38
2,676,798.42
(1) Amount delinquent as of April 26, 2005.
(2) Amount delinquent as of October 17, 2002.
Source: MuniFinancial.
Special tax refunding bonds entitled "Chula Vista Community Facilities District No. 06-1 (Eastlake-
Woods, Vistas and Land Swap) 2005 lmprovement Area A Special Tax Refunding Bonds (the "CFD No. 06-1
Bonds") will be issued in the aggregate principal amount of$42,155,000' concurrently with the issuance of the
. Preliminary, subject to change.
46
DOCSOC/I101647v7/22245-0158
3-95
Bonds. The CFD No. 06-1 Bonds are payable from Special Taxes levied on taxable real property within
Improvement Area A ofCFD No. 06-1. Debt service payable on the CFD No. 06-1 Bonds constitutes a portion
of the Revenues securing payment of the Bonds.
Table 32 below illustrates the estimated debt service coverage for the CFD No. 06-1 Bonds based on
the Maximum Special Taxes that may be levied on property within Improvement Area A of CFD No. 06-1
based on development status as of March I, 2004.
TABLE 32
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 06-1
IMPROVEMENT AREA A
CFD No. 06-1
Maximum Special Tax Bonds Coverage CFD No. 06-1
from Maximum Bonds Coverage
Bond Year Special Taxes on from All
Ending Developed Undeveloped CFD No. 06-1 Developed Maximum Special
September 1 Property(I) Property!I) Debt Servici2} Property!') Taxes")
2006 $1,886,621.20 $ 2,068,541.93 $ 2,709,823.21 0.70 1.46
2007 1,886,621.20 2,068,541.93 2,705,482.76 0.70 1.46
2008 1,886,621.20 2,068,541.93 2,705,422.76 0.70 1.46
2009 1,886,621.20 2,068,541.93 2,708,742.76 0.70 1.46
2010 1,886,621.20 2,068,541.93 2,709,530.26 0.70 1.46
2011 1,886,621.20 2,068,541.93 2,708,170.26 0.70 1.46
2012 1,886,621.20 2,068,541.93 2,703,577.76 0.70 1.46
2013 1,886,621.20 2,068,541.93 2,711,137.76 0.70 1.46
2014 1,886,621.20 2,068,541.93 2,710,179.00 0.70 1.46
2015 1,886,621.20 2,068,541.93 2,706,304.00 0.70 1.46
2016 1,886,621.20 2,068,541.93 2,709,704.00 0.70 1.46
2017 1,886,621.20 2,068,541.93 2,709,889.00 0.70 1.46
2018 1,886,621.20 2,068,541.93 2,707,075.26 0.70 1.46
2019 1,886,621.20 2,068,541.93 2,706,187.76 0.70 1.46
2020 1,886,621.20 2,068,541.93 2,706,935.26 0.70 1.46
2021 1,886,621.20 2,068,541.93 2,704,015.26 0.70 1.46
2022 1,886,621.20 2,068,541.93 2,707,337.76 0.70 1.46
2023 1,886,621.20 2,068,541.93 2,706,747.76 0.70 1.46
2024 1,886,621.20 2,068,541.93 2,707,175.26 0.70 1.46
2025 1,886,621.20 2,068,541.93 2,703,319.00 0.70 1.46
2026 1,886,621.20 2,068,541.93 2,705,104.00 0.70 1.46
2027 1,886,621.20 2,068,541.93 2,702,449.00 0.70 1.46
2028 1,886,621.20 2,068,541.93 2,705,311.50 0.70 1.46
2029 1,886,621.20 2,068,541.93 2,708,174.00 0.70 1.46
2030 1,886,621.20 2,068,541.93 2,706,072.00 0.70 1.46
2031 1,886,621.20 2,068,541.93 2,703,985.50 0.70 1.46
2032 1,886,621.20 2,068,541.93 2,706,655.50 0.70 1.46
2033 1,886,621.20 2,068,541.93 2,703,582.00 0.70 1.46
(1) No escalation allowed in the Rate and Method of Apportionment.
(2) Preliminary, subject to change.
Source: MuniFinancial.
47
DOCSOC/IIOI647v7/22245-0158
3-96
Table 32A below illustrates debt service coverage for the CFD No. 06-1 Bonds based on the
Maximum Special Taxes that may be levied on Developed Property only within Improvement Area A of CFD
No. 06-1 based on development status as of March 1,2005.
TABLE32A
ESTIMATED DEBT SERVICE COVERAGE
CFD NO. 06-1
~ROVEMENTAREAA
(DEVELOPED PROPERTY ONLY)
CFD No. 06-1
Bonds
Coveragefrom
Maximum
Special CFD No. 06-1
Taxes Bonds
Bond Year Maximum Special Maximum Special CFD No. 06-1 (Developed Coverage From
Ending Tax Developed Tax Undeveloped Bonds Debt Property Maximum
September 1 Property (1)(2) Property(1)(2) Service(j) Only/3) Special Taxesl3)
2006 $ 2,323,655.08 $ 1,650,669.18 $ 2,709,823.21 0.86 1.47
2007 2,323,655.08 1,650,669.18 2,705,482.76 0.86 1.47
2008 2,323,655.08 1,650,669.18 2,705,422.76 0.86 1.47
2009 2,323,655.08 1,650,669.18 2,708,742.76 0.86 1.47
2010 2,323,655.08 1,650,669.18 2,709,530.26 0.86 1.47
2011 2,323,655.08 1,650,669.18 2,708,170.26 0.86 1.47
2012 2,323,655.08 1,650,669.18 2,703,577.76 0.86 1.47
2013 2,323,655.08 1,650,669.18 2,711,137.76 0.86 1.47
2014 2,323,655.08 1,650,669.18 2,710,179.00 0.86 1.47
2015 2,323,655.08 1,650,669.18 2,706,304.00 0.86 1.47
2016 2,323,655.08 1,650,669.18 2,709,704.00 0.86 1.47
2017 2,323,655.08 1,650,669.18 2,709,889.00 0.86 1.47
2018 2,323,655.08 1,650,669.18 2,707,075.26 0.86 1.47
2019 2,323,655.08 1,650,669.18 2,706,187.76 0.86 1.47
2020 2,323,655.08 1,650,669.18 2,706,935.26 0.86 1.47
2021 2,323,655.08 1,650,669.18 2,704,015.26 0.86 1.47
2022 2,323,655.08 1,650,669.18 2,707,337.76 0.86 1.47
2023 2,323,655.08 1,650,669.18 2,706,747.76 0.86 1.47
2024 2,323,655.08 1,650,669.18 2,707,175.26 0.86 1.47
2025 2,323,655.08 1,650,669.18 2,703,319.00 0.86 1.47
2026 2,323,655.08 1,650,669.18 2,705,104.00 0.86 1.47
2027 2,323,655.08 1,650,669.18 2,702,449.00 0.86 1.47
2028 2,323,655.08 1,650,669.18 2,705,311.50 0.86 1.47
2029 2,323,655.08 1,650,669.18 2,708,174.00 0.86 1.47
2030 2,323,655.08 1,650,669.18 2,706,072.00 0.86 1.47
2031 2,323,655.08 1,650,669.18 2,703,985.50 0.86 1.47
2032 2,323,655.08 1,650,669.18 2,706,655.50 0.86 1.47
2033 2,323,655.08 1,650,669.18 2,703,582.00 0.86 1.47
(I) Developed Property Maximum Special Tax estimated based on building permits issued in Improvement Area A of CFD
No. 06-1 as of March 1, 2005. The square footage per unit has been estimated at the average amount of 2.692 for Zone 1
and 3,008 for Zone 2.
(2) No escalation allowed in the Rate and Method of Apportionment.
(3) Preliminary, subject to change.
Source: MuniFinancial
48
DOCSOCIl1 0 164 7v7 /22245-0158
3-97
See Table 36 under the heading "THE DISTRICTS-Estimated Assessed Value-to-lien" herein for
information regarding the estimated assessed value of land in CFO No. 06-1 to the total estimated amount of
the Bonds.
Direct and Overlapping Debt. Within the boundaries of CFO No. 06-1 are numerous overlapping
local agencies providing public services. Some of these local agencies have outstanding bonds or other forms
of indebtedness which are secured by taxes and assessments on the parcels within CFD No. 06-1 and others
have authorized but unissued bonds which, if issued, will also be secured by taxes and assessments levied on
parcels within CFO No. 06-1. The approximate amount of the direct and overlapping debt secured by such
taxes and assessments on the parcels within CFO No. 06-1 for fiscal 2004-05 is shown in Table 33 below. See
"SPECIAL RISK FACTORS-Direct and Overlapping Debt."
Information for Table 33 has been obtained from California Municipal Statistics, Inc. Neither the
Authority, the City nor the Underwriter has independently verified the information set forth in Table 33 and do
not guarantee the accuracy or completeness of this information.
49
DOCSOC/ll0l647v7/22245-0158
3-98
TABLE 33
DIRECT AND OVERLAPPING DEBT
CFD NO. 06-1
2004-05 Local Secured Assessed Valuation: $569,004,382
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, J.D. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Chula Vista City Community Facilities District
Sweetwater Union High School District Community Facilities District No.
City oCChula Vista Community Facilities District No. 06-1, LA. No.1
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT
OVERLAPPING GENERAL FUND OBI.IGATION DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District General Fund Obligations
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District General Fund Obligations
City ofChula Vista Certificates of Participation
City of Chula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: Otay Municipal Water District Certificates of Participation (100% self-supporting)
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAl. DEBT
NET COMBINED TOTAl. DEBT
Ratios to 2004-05 Assessed Valuation:(1)
Direct Debt ($42,155,000) ...................................................... 7.41 %
Total Direct and Overlapping Tax and Assessment Deb!............... 10.41 %
Gross Combined Total Debt...........................................................12.92%
Net Combined Total Debt..............................................................12.77%
% Aoolicable
0.043%
8.773
1.939
2.265
3.200
11.697
22.009
100.
0.225%
0.225
0.225
2.088
2.472
3.327
3.880
3.880
3.496
Debt 5/1/05
$ 179,822
873,352
1,743,723
1,903,506
2,364,000
927,897
9,079,228
42.155.000 (1)
$59,226,528
$ 868,515
2,817,547
28,851
55,958
492,670
3,726,739
4,949,522
476,271
897.423
$14,313,496
897 423
$13,416,073
$73,540,024 (2)
$72.637,601
(I) Preliminary, subject to change.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non.bonded
capital lease obligations.
Source: California Municipal Statistics, Inc.
Land Uses, Development Status and Es.timated Assessed Value-to-Lien Ratios
As summarized in the Table 34 below, substantial portions of the Reassessment Districts and the
Community Facilities Districts have been developed with residential, commercial, recreational, institutional
and industrial projects. Based on development status as of March 1, 2004, $120,792,312: or approximately
86.92% of the principal amount of the Local Obligations is payable from Reassessments and Special Taxes
levied on such developed property. The remaining $18,182,688', or approximately 13.08% of the principal
amount of the Local Obligations, is payable from Reassessments and Special Taxes levied on undeveloped
property within the Reassessment Districts and the Community Facilities Districts. Based on development
status as of March 1, 2005, 90.69% of the principal amount of the Local Obligations is payable from
developed property.
. Preliminary, subject to change.
50
DOCSOC/lI01647v7/22245-0158
3-99
Table 34 sets forth the estimated assessed value-to-lien estimates by land use for the taxable parcels
within the Districts.
51
DOCSOC/1101647v7/22245-0158
3-100
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Estimated Assessed Value-to-Lien Ratios
Table 35 below sets forth the number of parcels within various ranges of estimated assessed value-to-
lien ratios. As summarized in Table 35, the estimated assessed value-to-lien ratio for all parcels within the
Districts is approximately 29.20 to I', but the ratios for individual parcels vary widely. The value of the
individual parcels is significant because, in the event of a delinquency in payment, the only remedy of the City
is to foreclose on the delinquent parcel. A parcel with a lower value-to-lien ratio may be less likely to sell at
foreclosure or provide sale proceeds adequate to pay all delinquent Reassessment or Special Tax installments.
TABLE 35
ESTIMATED ASSESSED V ALUE- TO-LIEN SUMMARY BY RATIO RANK'
(ADJUSTED FOR OVERLAPPING DISTRICT)
Average
% of Total 1004105 Amount
Reassessment Reassessment 1004105 Reassessment! Value-to-
Estimated Assessed No. of Lien/Bonded Lien/Bonded Maximum Special Tax Total 2004105 Lien/Bonded
Value-fo-Lien Parcels Debt(J) Debt Special Tax Levy Assessed Value Debt
Greater than 20: 1 9,201 86,662,788 62.38% $ 6.140.342 $ 6,985,628 $3,494,686.861 40.33 to 1
10:1 to 19.9:1 902 23,441,180 16.87 1,691,850 1,587.705 394,756,276 16.84 to 1
5:1 to 9.9:1 600 14,638,173 10.54 1,212,208 1,006,135 108,664,451 7.42 to 1
3:1 t04.9:1 154 4,190,190 3.02 319,428 295,353 17,869,557 4.26 to 1
1:1 t02.9:1 158 3,869,717 2.79 697,279 247,969 6.072,876 1.57 to 1
Less than I: I 23 6.117,951 4.40 898,554 479,472 2,143,455 0.35 to 1
NA(2) -->.l --.-MQ 159569 34 377 814 --tlA
Total 11,091 138,920.000 100.00% $11,119.230 $10,602,262 $4,058,571.290 29.20 to 1
(I) The Bonded Debt is allocated based on the Reassessment liens and the pro rata share of the principal outstanding on the Local Obligations
payable from Special Taxes.
(2) The parcels were not assigned a Special Tax for 2004/05.
Source: MuniFinancial.
. Preliminary, subject to change.
53
DOCSOC/I101647v7/22245-0158
3-102
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The following Table 37 summarizes the historical delinquencies for all of the Districts from fiscal year
1999-2000 to fiscal year 2004-05.
TABLE 37
HISTORY OF DELINQUENCIES
ANNUAL PERCENT AGE FOR ALL DISTRICTS
FISCAL YEARS ENDED JUNE 30(t)
District 2005 2004 2003 2002 2001 2000
AD No. 87-1 8.94% 0.55% 0.89% 0.01% 0.00% 0.00%
AD No. 88-2 4.66 0.21 0.06 0.03 0.00 0.00
AD No. 97-2 2.90 0.24 0.06 0.00 0.00 0.00
CFD No. 97-3 3.79 0.37 0.00 0.00 NA NA
CFD No. 99-1 7.71 0.30 0.02 0.00 NA NA
CFD No. 2000-1 3.18 0.08 0.00 0.00 NA NA
CFD No. 2001-1 (Improvement Area A) 4.40 0.19 0.00 NA NA NA
CFD No. 06-1 (Improvement Area A) 5.44 3.07 NA NA NA NA
(1) Amount delinquent as of April 26, 2005.
Source: MuniPinancial.
Major Taxpayers for all Districts
Table 38 below sets forth the top ten taxpayers among the Districts, as measured by the amount of
Reassessment Liens and Special Taxes levied on property owned by such taxpayers in fiscal year 2004-2005.
Table 39 below sets forth the top properties among all of the Districts based on their allocated shares
of the principal amount of the Local Obligations, as organized by Developed Property and Undeveloped
Property, and related value-to-lien infonnation.
55
DOCSOCIlIOI647v7/22245-0158
3-104
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SPECIAL RISK FACTORS
While the Bonds will be insured, the following infonnation should be considered by prospective
investors in evaluating the Bonds. However, it does not purport to be an exhaustive listing of the risks and
other considerations which may be relevant to an investment in the Bonds. In addition, the order in which the
following infonnation is presented is not intended to reflect the relative importance of any such risks. If any
risk factor materializes to a sufficient degree, it alone could delay or preclude payment of principal of or
interest on the Bonds.
The Bonds are Limited Obligations of the Authority
Funds for the payment of the principal of and the interest on the Bonds are derived from debt service
payments on the Local Obligations which are derived only from annual Reassessment installments and annual
payments of Special Taxes. The amount of annual installments of Reassessments and Special Taxes that are
collected could be insufficient to pay principal of and interest on the Local Obligations due to non-payment of
such Reassessment installments and Special Taxes levied or due to insufficient proceeds received from a
judicial foreclosure sale ofland within the Districts following delinquency. The City's legal obligations with
respect to any delinquent Reassessment installments or Special Taxes are limited to (I) payments from the
Reserve Fund to the extent of funds on deposit in the respective Reserve Account, and (2) the institution of
judicial foreclosure proceedings under certain circumstances with respect to any parcels for which
Reassessment installments or Special Taxes are delinquent. See "SECURITY FOR THE BONDS-Covenant
to Foreclose." The City has detennined that it will not obligate itself to advance funds from its treasury to
cover any delinquency on the Reassessments, Special Taxes or payments on the Local Obligations. The Bonds
cannot be accelerated in the event of any default.
The obligation to pay Reassessment installments and Special Taxes does not constitute a personal
obligation of the current or subsequent owners of the respective parcels which are subject to such liens.
Enforcement of Reassessment and Special Tax payment obligations by the City is limited to judicial
foreclosure in the San Diego County Superior Court pursuant to Sections 8830 et seq. of the California Streets
and Highways Code. There is no assurance that any current or subsequent owner of a parcel subject to a
Reassessment or Special Tax lien will be able to pay the amounts due or that such owner will choose to pay
such amounts even though fmancially able to do so.
The Local Obligations are Limited Obligations of the City
The obligation of the City and the Community Facilities Districts, as issuers of the Local Obligations,
to advance the amount of delinquencies to the Trustee, as the registered holder of the Local Obligations, is
strictly limited to funds on deposit in the Reserve Fund established and held by the Trustee pursuant to the
Indenture. Pursuant to Section 8769 of the California Streets and Highways Code, the City has expressly
elected not to obligate itself to advance available funds from the City's treasury to make up deficiencies in the
amount of Reassessment installments collected.
Failure by owners of the parcels to pay Reassessment or Special Tax installments when due, delay in
foreclosure proceedings, or the inability of the City or the Community Facilities Districts to sell parcels which
have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of
Reassessments or Special Taxes levied against such parcels may result in the inability of the City or the
Community Facilities Districts to make full or timely payments of debt service on the Bonds, which may in
turn result in the depletion of the Reserve Fund and the inability of the Authority to make full or timely
payment on the Bonds.
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The Reassessments are Not Personal Obligations of the Property Owners
Under the provisions of the Act, Reassessment installments will be billed to the owner of each parcel
in the Reassessment Districts against which there is an unpaid Reassessment, with such billing to be made on
the regular property tax bills sent to such owners. The Reassessment installments are due and payable at the
same time and bear the same late charges and penalties as for non-payment of regular property tax
installments.
The obligation to pay Reassessment installments does not constitute a personal obligation of the
current or subsequent owners of the respective parcels which are subject to the Reassessment liens.
Enforcement of Reassessment payment obligations by tbe City is limited to judicial foreclosure in the San
Diego County Superior Court pursuant to Sections 8830 et seq. of the California Streets and Highways Code.
There is no assurance that any current or subsequent owner of a parcel subject to a Reassessment lien will be
able to pay the Reassessment installments or that such owner will choose to pay such installments even though
financially able to do so.
The Special Taxes are Not Personal Obligations of the Owners
An owner of a taxable parcel is not personally obligated to pay the Special Tax. Rather, the Special
Tax is an obligation which is secured only by a lien against the taxable parcel. If the value of a taxable parcel
is not sufficient, taking into account other liens imposed by public agencies, to secure fully the Special Tax, a
Community Facilities District has no recourse against the owner.
Potential Early Redemption of Bonds from Prepayments
Property owners within the Districts are permitted to prepay their Reassessments and Special Taxes at
any time. Such prepayments will result in a redemption of Local Obligations on the first March I or
September I which is more than 30 days following the receipt of the prepayment. The proceeds of the Local
Obligations so redeemed will then be used to make a mandatory redemption of the Bonds. The Bonds will be
called on a pro rata basis from the proceeds of the Local Obligations redeemed from prepayments. See 'THE
BONDS-Redemption-Extraordinary Redemption from Prepayments."
Non-Cash Payments of Special Taxes
Under the Act, the City Council as the legislative body of a Community Facilities District may reserve
to itself the right and authority to allow the owner of any taxable parcel to tender a CFD Refunding Bond in
full or partial payment of any installment of the Special Taxes or the interest or penalties thereon. A CFD
Refunding Bond so tendered is to be accepted at par and credit is to be given for any interest accrued thereon
to the date of the tender. Thus, if CFD Refunding Bonds can be purchased in the secondary market at a
discount, it may be to the advantage of an owner of a taxable parcel to pay the Special Taxes applicable thereto
by tendering a CFD Refunding Bond. Such a practice would decrease the cash flow available to the
Community Facilities District to make payments with respect to other CFD Refunding Bonds then outstanding;
and, unless the practice was limited by the Community Facilities District, the Special Taxes paid in cash could
be insufficient to pay the debt service due with respect to such other CFD Refunding Bonds. In order to
provide some protection against the potential adverse impact on cash flows which might be caused by the
tender of CFD Refunding Bonds in payment of Special Taxes, the CFD Indentures include a covenant pursuant
to which the Community Facilities District will not authorize owners of taxable parcels to satisfy Special Tax
obligations by the tender of CFD Refunding Bonds unless the Community Facilities District shall have first
obtained a report of a Special Tax Consultant certifying that doing so would not result in the Community
Facilities district having insufficient Special Tax Revenues to pay the principal of and interest on all
outstanding CFD Refunding Bonds issued by such Community Facilities District.
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DOCSOC/lJOI647v7/22245-0J58
3-108
Risks of Real Estate Secured Investments Generally
The Bondowners will be subject to the risks generally incident to an investment secured by real estate,
including, without limitation, (i) adverse changes in local market conditions, such as changes in the market
value of real property in the vicinity of the Districts, the supply of or demand for competitive properties in
such area, and the market value of commercial and industrial buildings and/or sites in the event of sale or
foreclosure, (il) changes in real estate tax rates and other operating expenses, government rules (including,
without limitation, zoning laws and laws relating to threatened and endangered species) and fiscal policies and
(ili) natural disasters (including, without limitation, earthquakes and floods), which may result in uninsured
losses.
Concentration of Ownership
Certain major property owners in the Districts presently have landholdings encompassing significant
amounts of the acreage in the Districts. For a summary of the ownership of land in the Districts as of
January I, 2004, see "THE DISTRICTS-Major Taxpayers for all Districts." There may be subsequent
transfers of ownership of the property within the Districts prior to completion of development. Failure of the
owners of undeveloped property to pay the annual Reassessments and/or Special Taxes when due could result
in a default in payments of the principal of, and interest on, the Local Obligations, which could result in the
inability of the Authority to make payments of the principal of, and interest on the Bonds when due. Such risk
may be greater or its consequence more severe when ownership is concentrated and may be expected to
decrease as ownership is diversified through development and sales.
Failure to Develop Property
A portion of the acreage within the Community Facilities Districts is currently under development.
Land development is subject to comprehensive federal, State and local regulations. Approval is required from
various agencies in connection with the layout and design of developments, the nature and extent of
improvements, construction activity, land use, zoning, school and health requirements, as well as numerous
other matters. There is always the possibility that such approvals will not be obtained or, if obtained, will not
be obtained on a timely basis. Failure to obtain any such agency or satisfy such governmental requirements
would adversely affect planned land development. Finally, development of land is subject to economic
considerations.
The failure to complete development of the Community Facilities Districts as planned, or substantial
delays in the completion of the development, due to litigation or other causes may reduce the value of the
property within the Community Facilities Districts and increase the length of time during which Special Taxes
will be payable from Undeveloped Property, and may affect the willingness and ability of the owners of
property within the Community Facilities Districts to pay the Special Taxes when due.
Moreover, there can be no assurance that land development operations within the Community
Facilities Districts will not be adversely affected by a future deterioration of the real estate market and
economic conditions or future local, State and federal governmental policies relating to real estate
development, the income tax treatment of real property ownership, or the national economy. A slowdown of
the development process and the absorption rate could adversely affect land values and reduce the ability or
desire of the property owners within the Community Facilities Districts to pay the annual Special Taxes. In
that event, there could be a default in the payment of principal of, and interest on, the CFD Refunding Bonds
which would affect the amount of Revenues available to pay principal of, and interest on first, the Bonds when
due.
Bondowners should assume that any event that significantly impacts the ability to develop land in the
Community Facilities Districts would cause the property values within the Community Facilities Districts to
decrease substantially and could affect the willingness and ability of the owners of land in such Districts to pay
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DOCSOC/II01647v7/22245-0158
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Special Taxes when due. Despite the amount of development that has already taken place, payment of the
Bonds is currently dependent upon the payment of Special Taxes levied on undeveloped property.
Undeveloped property is less valuable per unit of area than developed property, especially if there are severe
restrictions on such development, and accordingly, provides less security to the Bondowners than the
developed property should it be necessary to foreclose on such property due to the nonpayment of Special
Taxes. The failure to complete the development as planned, or substantial delays in the completion of the
development, due to litigation or other causes, may reduce the value of the property within the Community
Facilities Districts, and may affect the willingness and ability of the owners of land within the Community
Facilities Districts to pay Special Taxes when due. Furthermore, an inability to develop the land within the
Community Facilities Districts will likely reduce or delay the diversification of ownership of land within the
Community Facilities Districts. See "Concentration of Ownership" above. A slowdown or stoppage in the
continued development of the Community Facilities Districts could reduce the willingness and ability of such
owners of undeveloped property to pay Special Taxes and could greatly reduce the value of such property and
the price which could be obtained for it in any foreclosure sale instituted to collect delinquent Special Taxes.
Bankruptcy and Foreclosure Delays
The payment of property owners' taxes installments and the ability of the City to foreclose the lien of
a delinquent Reassessment installment and the ability of Community Facilities Districts to foreclose the lien of
a delinquent Special Tax installment pursuant to the respective covenants to pursue foreclosure proceedings is
normally delayed by and may be limited in other ways by bankruptcy, insolvency, or other laws generally
affecting creditors' rights or by State laws relating to judicial foreclosure. See "SECURITY FOR THE
BONDS-Judicial Foreclosures" herein. In addition, the prosecution of a judicial foreclosure may be delayed
due to congested local court calendars or procedural delays.
The various legal opinions to be delivered concurrently with the delivery of the Bonds (including
Bond Counsel's approving legal opinion) will be qualified as to the enforceability of the various legal
instruments, including the Bonds and the Local Obligations, by bankruptcy, reorganization, insolvency or
other similar laws affecting the rights of creditors generally, by the application of equitable principles and by
the exercise of judicial discretion in appropriate cases.
Although bankruptcy proceedings would not cause the lien of the Reassessments or Special Taxes to
become extinguished, bankruptcy of a property owner or of a partner or other equity owner of a property
owner, could result in a stay of enforcement of such a lien, a delay in prosecuting Superior Court foreclosure
proceedings or adversely affect the ability or willingness of a property owner to pay the Reassessment or
Special Tax installments and could result in the possibility of delinquent any such installments not being paid
in full. In addition, the amount of any lien on property securing the payment of delinquent Reassessment or
Special Tax installments could be reduced if the value of the property were determined by the bankruptcy court
to have become less than the amount of the lien, and the amount of the delinquent installments in excess of the
reduced lien could then be treated as an unsecured claim by the court. Any such stay of the enforcement of the
lien for the Reassessments or Special Taxes, or any such delay or non-payment, would increase the likelihood
of a delay or default in payment of the principal of and interest on the Bonds and the possibility of delinquent
Reassessment or Special Tax installments not being paid in full. Moreover, amounts received upon
foreclosure sales may not be sufficient to fully discharge delinquent Reassessment or Special Tax installments.
To tbe extent that a significant percentage of the property in the Districts is the subject of bankruptcy
proceedings, the payment of the Reassessment and/or Special Tax installments and the ability of the City and
the Community Facilities Districts to foreclose the lien of a delinquent unpaid Reassessment or Special Tax
installments could be extremely curtailed by bankruptcy, insolvency, or other laws generally affecting
creditors' rights or by the laws of the State relating to judicial foreclosure.
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DOCSOC/lI01647v7/22245-0158
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FDIClFederal Government Interests in Properties
The ability of the City to foreclose the lien of delinquent unpaid Reassessment instalIments or the
ability of Community Facilities Districts to foreclose the lien of delinquent Special Tax installments may be
limited with regard to properties in which the Federal Deposit Insurance Corporation (the "FDIC") has an
interest. In the event that any financial institution making any loan which is secured by real property within
the Districts is taken over by the FDIC, and prior thereto or thereafter the loan or loans go into default, then the
ability of the City and the Community Facilities Districts to colIect interest and penalties specified by State law
and to foreclose the lien of delinquent unpaid Reassessment or Special Tax installments may be limited.
The FDIC's policy statement regarding the payment of state and local real property taxes (the "Policy
Statement") provides that property owned by the FDIC is subject to state and local real property taxes only if
those taxes are assessed according to the property's value, and that the FDIC is immune from real property
taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay
its property tax obligations when they become due and payable and will pay claims for delinquent property
taxes as promptly as is consistent with sound business practice and the orderly administration of the
institution's affairs, unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will
pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the
interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of
fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including
interest) on FDIC-owned property are secured by a valid lien (in effect before the property became owned by
the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the
FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC's consent. In addition,
the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without
the FDIC's consent.
The Policy Statement states that the FDIC generally will not pay non-ad valorem taxes, including
special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that
the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it
purports to secure the payment of any such amounts. Special assessments due each year are specifically
identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal
immunity.
The FDIC has filed claims against the City of Orange, California in the United States Bankruptcy
Court and in Federal District Court contending, among other things, that special taxes are not ad valorem
taxes, and therefore not payable by the FDIC, and any special taxes previously paid by the FDIC must be
refunded. The FDIC is also seeking a ruling that special taxes may not be imposed on properties while they
are in FDIC receiversbip. The Bankruptcy Court ruled in favor of the FDIC's positions and, on March 22,
1999, the United States Bankruptcy AppelIate Panel of the Ninth Circuit affirmed the decision of the
Bankruptcy Court. The County of Orange has appealed such ruling to the United States Court of Appeals for
the Ninth Circuit and the FDIC bas cross-appealed. The Ninth Circuit has not yet issued a ruling on the matter.
Based on the records of the County Assessor, the FDIC does not currently own any of the property in the
Reassessment District.
The City is unable to predict what effect the application of the Policy Statement would have in the
event of a delinquency in the payment of Reassessment and Special Tax instalIments on a parcel within the
Districts in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be
foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to
purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Fund and perhaps,
ultimately, a default in payment on the Bonds.
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DOCSOC/lIOl647v7/22245-0158
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Price Realized Upon Foreclosure
Section 8832 ofthe Streets and Highways Code prescribes the minimum price (the "Minimum Price")
at which property may be sold in a judicial foreclosure resulting from delinquencies on assessment
installments. The Minimum Price is the amount equal to the delinquent installments of principal and interest
of the assessment, together with all interest, penalties, costs, fees, charges and other amounts more fully
detailed in said Section 8832. However, Section 8836 of the Streets and Highways Code provides that the
court may authorize a sale at less than the Minimum Price if the court makes certain detenninations, based on
the evidence introduced at the required hearing, which evidence must establish that no ultimate loss will result
to the bondholders or that no other remedy is acceptable and at least 75% of the bondholders consent to a sale
at less than the Minimum Price. Upon issuance of the Local Obligations, the Trustee will be the registered
owner of ] 00% of the Local Obligations.
The Reassessment lien upon property sold pursuant to this procedure at a lesser price than the
Minimum Price would be reduced by the difference between the Minimum Price and the actual sale price. ]n
addition, the court would pennit participation by the Authority, as owner of all of the Local Obligations, in its
consideration of the petition as necessary to its determination. Reference should be made to Section 8836 of
the Streets and Highways Code for the complete presentation of this provision.
]f foreclosure proceedings do not result in full collection of delinquent Reassessment installments, it is
possible that owners of the Bonds may not receive payment of principal of or interest on the Bonds.
Direct and Overlapping Debt
Neither the Authority, City, the Reassessment Districts nor the Community Facilities Districts have
control over the amount of additional debt payable from taxes or assessments levied on all or a portion of the
property within the Districts which may be incurred in the future by other governmental agencies having
jurisdiction over all or a portion of the property within the Districts. Other public agencies may issue
additional indebtedness on property within the Districts at any time. Furthermore, nothing prevents the owners
of property within the Districts from consenting to the issuance of additional debt by other governmental
agencies which would be secured by taxes on a parity with the Reassessments and Special Taxes or
assessments which would be subordinate to the Reassessments and Special Taxes. To the extent such
indebtedness is payable from assessments, other special taxes levied pursuant to the Mello-Roos Act or taxes,
such assessments, special taxes and taxes will be secured by liens on the property within the Districts.
Accordingly, the debt on the property within the Districts could increase, without any corresponding
increase in the value of the property therein. The imposition of such additional indebtedness could reduce the
willingness and ability of the property owners within the Districts to pay the Reassessments or Special Taxes
when due. See "--Cumulative Burden of Parity Taxes and Special Reassessments" herein. Moreover, in the
event of a delinquency in the payment of Reassessments or Special Taxes, no assurance can be given that the
proceeds of any foreclosure sale of property with delinquent Reassessments would be sufficient to pay the
delinquent Reassessments or Special Taxes. See "-Land Values" below.
Natural Disasters
Tbe Districts, like all California communities, may be subject to unpredictable seismic activity, fires
due to the vegetation and topography, or flooding in the event of unseasonable rainfall. The occurrence of
seismic activity, fires or flooding in or around the Districts could result in substantial damage to properties in
the Districts which, in turn, could substantially reduce the value of such properties. As a result of the
occurrence of such an event, a substantial portion of the property owners may be unable or unwilling to pay the
Reassessment andlor Special Tax installments when due, and the Reserve Fund may eventually become
depleted. In addition, the value of land in the Districts could be diminished in the aftennath of such natural
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DOCSOC/II01647v7/22245-0158
3-112
events, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the
Reassessment and Special Tax installments.
Land Values
The value of land within the Districts is an important factor in evaluating the investment quality of the
Bonds. In the event that a property owner defaults in the payment of an Reassessment installment or Special
Tax installment, the City's and the Community Facilities Districts' only remedy is to judicially foreclose on
that property. Prospective purchasers of the Bonds should not assume that the property within the Districts
could be sold for the assessed value described herein at a foreclosure sale for delinquent Reassessment or
Special Tax installments or for an amount adequate to pay delinquent Reassessment or Special Tax
installments. Reductions in property values within the Districts due to a downturn in the economy or the real
estate market, events such as earthquakes, droughts, or floods, stricter land use regulations, threatened or
endangered species or other events may adversely impact the security underlying the liens.
The actual market value of the property is subject to future events such as downturn in the economy,
occurrences of certain acts of nature and the decisions of various governmental agencies as to land use, all of
which could adversely impact the value of the land in the Districts which is the security for the Local
Obligations, which secure the Bonds. As discussed herein, many factors could adversely affect property
values or prevent or delay land development within the Districts.
Hazardous Substances
A claim with regard to a hazardous substance on a parcel of land subject to any of the Reassessments
or Special Taxes can result in a significant potential reduction in the value of the parcel. In general, the owners
and operators of a parcel may be required by law to remedy conditions relating to releases or threatened
releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and
Liability Act of 1980, sometimes referred to as "CERCLA" or the "Super Fund Act", is well known, but
California laws with regard to hazardous substances are also stringent and similar in effect. Under many of
these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of a parcel whether
or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The
effect, therefore, should any of the parcels within the Districts be affected by a hazardous substance, is to
reduce the marketability and value by the costs of remedying the condition because the prospective purchase of
such a parcel will, upon becoming the owner of such parcel, become obligated to remedy the condition just as
the seller of such a parcel is.
Hazardous substance liabilities may arise in the future with respect to any of the parcels within the
Districts resulting from the existence, currently, of a substance presently classified as hazardous but which has
not been released or the release of which is not presently threatened, or may arise in the future resulting from
the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the
future be so classified. Additionally, such liabilities may arise from the method of handling such substance.
These possibilities could significantly affect the value of a parcel and could result in substantial delays in
completing planned development on parcels that are currently undeveloped.
Cumulative Burden of Parity Taxes and Special Assessments
The Reassessments and Special Taxes constitute a lien against the parcels of land on which they have
been levied. Such lien is on a parity with all special taxes or assessments levied by other agencies and is co-
equal to and independent of the lien for general property taxes, regardless of when they are imposed upon the
same property.
Neither the City nor the Community Facilities Districts have control over the ability of other entities
to issue indebtedness secured by ad valorem taxes, special taxes or assessments levied on all or a portion of the
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property within the Districts. In addition, the owners of the property within the Districts may, without the
consent or knowledge of the City or the Community Facilities Districts, petition other public agencies to issue
public indebtedness secured by ad valorem taxes, special taxes of assessments. See "THE DISTRICTS-
Direct and Overlapping Debt."
Loss of Tax Exemption
As discussed under the caption "CONCLUDING INFORMATION-Tax Matters", in order to
maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds, the
Authority and the City have covenanted in the Indenture and the Local Obligations Indentures, respectively,
not to take any action, or fail to take any action, if such action or failure to take such action would adversely
affect the exclusion from gross income of interest on the Bonds under Section 103 of the Internal Revenue
Code of 1986, as amended. Interest on the Bonds could become includable in gross income for purposes of
Federal income taxation retroactive to the date the Bonds were issued, as a result of acts or omissions of the
Authority or the City in violation of the Code. Should such an event of taxability occur, the Bonds are not
subject to early redemption and will remain Outstanding to maturity or until redeemed under the optional or
mandatory redemption provisions of the Indenture.
California Constitution Article XIIIC and Article XIIID
On November 5, 1996, the voters of the State approved Proposition 218, the so-called "Right to Vote
on Taxes Act." Proposition 218 added Articles XIIIC and XIIID to the State Constitution, which contain,
among other things, a number of provisions affecting the ability of the City to levy and collect both existing
and future taxes, assessments, fees and charges.
Regarding Assessments. Article XIIID requires that, beginning July I, 1997, the proceedings for the
levy of any special assessment (including, if applicable, any increase in such assessment or any supplemental
assessment) must be conducted in conformity with the provisions of Section 4 of Article XIIID.
Section 9525(b) of the California Streets and Highways Code provides that any reassessment approved and
confirmed pursuant to Section 9525 of the Califomia Streets and Highways Code shall not be deemed to be an
assessment within the meaning of, and may be ordered without compliance with the procedural requirements
of, Article XIIID. The Reassessments were approved and confirmed pursuant to Section 9525 of the
California Streets and Highways Code. Furthermore, the original assessment districts' assessments (which are
supplanted and superseded by the Reassessments) were levied prior to July I, 1997. Therefore, neither the
Original Assessment Districts' assessments nor the Reassessments are subject to the provisions of Section 4 of
Article XIIID. In addition, under Section 10400 of the California Streets and Highways Code, any challenge
(including any constitutional challenge) to the proceedings or the assessment must be brought within 30 days
after the date the assessment was levied.
Article XIIIC removes limitations on the initiative power in matters of local taxes, assessments, fees
and charges. This provision of Article XIIIC is not, by its terms, restricted in its application to assessments
which were established or imposed on or after July I, 1997. In the case of the unpaid Reassessments which are
pledged as security for the payment of the Reassessment Bonds, the Act provides a mandatory, statutory duty
of the City and the County Auditor to post installments on account of the unpaid Reassessments to the property
tax roll of the City each year while any of the Reassessment Bonds are outstanding, in amounts equal to the
principal of and interest on the related issue of Reassessment Bonds coming due in the succeeding calendar
year. While the matter is not free from doubt, it is likely that a court would hold that the initiative power
cannot be used to reduce or repeal the unpaid Reassessments which are pledged as security for payment of the
Reassessment Bonds or to otherwise interfere with performance of the mandatory, statutory duty of the City
and the County Auditor with respect to the unpaid Reassessments which are pledged as security for payment
of such Reassessment Bonds.
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Regarding Special Taxes. Among other things, Section 3 of Article XIIl states that ". . . the initiative
power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax,
assessment, fee or charge." The CFD Act provides for a procedure which includes notice, hearing, protest and
voting requirements to alter the rate and method of apportionment of an existing special tax. However, the
CFD Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or
terminate the levy of any special tax pledged to repay any debt incurred pursuant to the CFD Act unless such
legislative body determines that the reduction or termination of the special tax would not interfere with the
timely retirement of that debt. On July 1, 1997, a bill was signed into law by the Governor of the State
enacting Government Code Section 5854, which states that:
"Section 3 of Article XIIlC of the Califomia Constitution, as adopted at the November 5,
1996, general election, shall not be construed to mean that any owner or beneficial owner of a
mlUlicipal security, purchased before or after that date, assumes the risk of, or in any way consents to,
any action by initiative measure that constitutes an impairment of contractual rights protected by
Section 10 of Article I of the United States Constitution."
Accordingly, although the matter is not free from doubt, it is likely that the initiative has not conferred
on the voters the power to repeal or reduce Special Taxes if such reduction would interfere with the timely
retirement of the CFD Refunding Bonds. The provisions of the initiative relating to the exercise of the
initiative power have not been interpreted by the courts and no assurance can be given as to the outcome of any
such litigation.
It may be possible, however, for voters or the City COlUlcil acting as the legislative body of the
Community Facilities Districts to reduce the Special Taxes in a manner which does not interfere with the
timely repayment of the Bonds, but which does reduce the maximum amolUlt of Special Taxes that may be
levied in any year below the existing levels. Furthermore, no assurance can be given with respect to the future
levy of the Special Taxes in amolUlts greater than the amount necessary for the timely retirement of the CFD
Bonds. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative
Expenses. Nevertheless, to the maximum extent that the law permits it to do so, the CommlUlity Facilities
Districts have covenanted that they will not initiate proceedings lUlder the CFD Act to reduce the maximum
Special Tax rates on parcels within Community Facilities Districts to less than an amolUlt equal to 110% of
maximum annual debt service on the respective CFD Refunding Bonds. The Community Facilities Districts
also have covenanted that, in the event an initiative is adopted which purports to alter the respective rates and
methods of apportionments, they will commence and pursue legal action in order to preserve its ability to
comply with the foregoing covenant. However, no assurance can be given as to the enforceability of the
foregoing covenants.
The interpretation and application of the Initiative will ultimately be determined by the courts with
respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty
the outcome of such determination or the timeliness of any remedy afforded by the courts. See "SPECIAL
RISK FACTORS-Limitations on Remedies."
The interpretation and application of the Articles XIIIC and XIIlD will ultimately be determined by
the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict
with certainty the outcome of such determination.
No Acceleration
There is no provision in the Indenture or Local Obligations Indentures for acceleration of the payment
of principal of or interest on the Bonds or the Local Obligations in the event of default or in the event interest
on the Bonds becomes included in gross income for federal income tax purposes. There is no provision in the
Act, the Indenture or the Local Obligations Indentures for the acceleration of the Reassessments or Special
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Taxes in the event of a payment default by an owner of a parcel within the Districts or otherwise, or upon any
adverse change in the tax status of interest on the Bonds.
Limitations on Remedies
Remedies available to the Owners may be limited by a variety of factors and may be inadequate to
assure the timely payment of principal of and interest and premium, ifany, on the Bonds or to preserve the tax-
exempt status of interest on the Bonds.
Bond Counsel has limited its opinion as to the enforceability of the Bonds, the Indenture and the Local
Obligations Indentures to the extent that enforceability may be limited by bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium, or others similar laws affecting generally the
enforcement of creditor's rigbts, by equitable principles and by the exercise of judicial discretion.
Additionally, the Bonds are not subject to acceleration in the event of the breach of any covenant or duty under
the Indenture. The lack of availability of certain remedies or the limitation of remedies may entail risks of
delay in the exercise of, or limitations on or modifications to, the rights of the Owners.
Enforceability of the rigbts and remedies of the owners of the Bonds, and the obligations incurred by
the City, may become subject to the federal bankruptcy code and applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditor's rigbts
generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State
law of certain remedies, the exercise by the United States of America of the powers delegated to it by the
Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers
inherent in the sovereignty of the State and its goverrunental bodies in the interest of serving a significant and
legitimate public purpose and the limitations on remedies against goverrunental entities in the State. See
"SPECIAL RISK FACTORS-Bankruptcy and Foreclosure Delays," and "-FDIC/Federal Goverrunent
Interests in Properties."
CONCLUDING INFORMA nON
Underwriting
The Bonds are being purchased by Stone & Youngberg LLC (the "Underwriter"). The Underwriter
has agreed to purchase the Bonds at a price of $ (being $ aggregate principal
amount thereof, less an original issue discount of $ and less Underwriter's discount of
$ ). The purchase agreement relating to the Bonds provides that the Underwriter will purchase all
of the Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and
conditions set forth in such purchase agreement, the approval of certain legal matters by counsel and certain
other conditions.
The Underwriter may offer and sell the Bonds to certain dealers and others at prices lower than the
offering price stated on the cover page hereof. The offering price may be changed from time to time by the
Underwriter.
Financial Advisor
Fieldman, Rolapp & Associates, Irvine, California, served as financial advisor to the City and the
Authority with respect to the sale of the Bonds. Fieldman, Rolapp & Associates will receive compensation
contingent upon the sale and delivery of the Bonds.
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Legal Opinion; Legal Matters
The legality of the Bonds and certain other legal matters are subject to the approval of Best Best &
Krieger LLP, Bond Counsel. Bond Counsel will render an opinion with respect to the validity and
enforceability of the Bonds and the Indenture, and a copy of the opinion will accompany each Bond. Such
opinion will be subject to the various assumptions, exceptions and limitations stated therein. Bond Counsel
also will render an opinion with respect to the validity and enforceability of the Local Obligations. See
APPENDIX C-"FORM OF BOND COUNSEL OPINIONS." Certain legal matters will be passed upon for
the Authority and the City by the office of County Counsel, and for the Underwriter by Stradling Y occa
Carlson & Rauth, a Professional Corporation, Newport Beach, California. Payment of the fees and expenses
of Bond Counsel, Underwriter's Counsel and the Trustee is contingent upon the sale and delivery of the
Bonds. From time to time, Underwriter's Counsel represents the City on matters unrelated to the Bonds.
Tax Matters
In the opinion of Best Best & Krieger LLP ("Bond Counsel"), based upon an analysis of existing laws,
regulations, rulings and court decisions, and assuming, among other matters, compliance with certain
covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under
Section 103 of the Internal Revenue Code of 1986 (the "Code") and is exempt from State of California
personal income taxes. Bond Counsel is of the further opinion that interest on the Bonds is not a specific
preference item for purposes of the federal individual or corporate alternative minimum taxes, althougb Bond
Counsel observes that such interest is included in adjusted current earnings when calculating federal corporate
alternative minimum taxable income. A complete copy of the proposed form of opinion of Bond Counsel is
set forth in APPENDIX hereto.
The Code imposes various restrictions, conditions and requirements relating to the exclusion from
gross income for federal income tax purposes of interest on obligations such as the Bonds. The District has
covenanted to comply with certain restrictions designed to insure that interest on the Bonds will not be
included in federal gross income. Failure to comply with these covenants may result in interest on the Bonds
being included in federal gross income, possibly from the date of original issuance of the Bonds. The opinion
of Bond Counsel assumes compliance with these covenants. Bond Counsel has not undertaken to determine
(or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after
the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on, the Bonds.
Further, no assurance can be given that pending or future legislation or amendments to the Code, if enacted
into law, or any proposed legislation or amendments to the Code, will not adversely affect the value of, or the
tax status of interest on, the Bonds. Prospective Bondholders are urged to consult their own tax advisors with
respect to proposals to restructure the federal income tax.
Certain requirements and procedures contained or referred to in the Indenture, the Tax Certificate, and
other relevant documents may be changed and certain actions (including, without limitation, defeasance of the
Bonds) may be taken or omitted under the circumstances and subject to the terms and conditions set forth in
such documents. Bond Counsel expresses no opinion as to any Bond or the interest thereon if any such change
occurs or action is taken or omitted upon the advice or approval of counsel other than Best, Best & Krieger
LLP.
Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for
federal income tax purposes and is exempt from State of California personal income taxes, the ownership or
disposition of, or the accrual or receipt of interest on, the Bonds may otherwise affect a Bondholder's federal
or state tax liability. The nature and extent of these other tax consequences will depend upon the particular tax
status of the Bondholder or the Bondholder's other items of income or deduction, and Bond Counsel expresses
no opinion regarding any such other tax consequences.
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No Litigation
There is no action, suit, or proceeding pending or, to the best knowledge of the City and the Authority,
threatened at the present time restraining or enjoining the delivery of the Bonds or in any way contesting or
affecting the validity of the Bonds or any proceedings of the City or the Authority taken with respect to the
execution or delivery thereof. A no litigation opinion rendered by the City Counsel will be required to be
delivered to the Underwriter simultaneously with the delivery of the Bonds.
Verification of Mathematical Computations
Grant Thornton, Minneapolis, Minnesota, an independent firm of certified public accountants, will
deliver to the City its reports indicating that it has examined, in accordance with standards established by the
American Institute of Certified Public Accountants, the information and assertions provided by the City and its
representatives. Included in the scope of its examination will be a verification of the mathematical accuracy of
the mathematical computations of the adequacy of the cash and the maturing principal amounts and the interest
on the direct noncallable obligations of the United States of America deposited with the Escrow Agent to pay
the interest, principal and redemption price coming due on the Prior Bonds on and prior to their redemption
date as described in "THE FINANCING PLAN."
Ratings of Bonds
Moody's Investors Service ("Moody's") and Standard & Poor's Credit Markets Services ("S&P"), a
division of the McGraw-Hill Companies, Inc. have assigned ratings of "Aaa" and "AAA," respectively, to the
Bonds, with the understanding that, upon delivery of the Bonds, the Bond Insurance Policy will be issued by
. In addition, the City has received an underlying rating of "_" from S&P and and
underlying rating of "_" from Moody's. Such ratings reflect only the views of such organizations and any
desired explanation of the significance of such ratings should be obtained from the rating agency furnishing the
same at the following addresses: Moody's Investors Service, Inc., 99 Church Street, New York, New York
10007 and Standard & Poor's Credit Markets Services, 55 Water Street, New York, New York 10041.
Generally, a rating agency bases its rating on the information and materials furnished to it and on
investigations, studies and assumptions of its own. There is no assurance such ratings will continue for any
given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating
agencies, if in the judgment of such rating agencies, circumstances so warrant. Any such downward revision
or withdrawal of such ratings may have an adverse effect on the market price of the Bonds.
Continuing Disclosure
The Authority has determined that no fmancial or operating data concerning the Authority (other than
the balance in certain funds and accounts established under the Indenture) is material to any decision to
purchase, hold or sell the Bonds, and the Authority will not provide any such information. The City has
undertaken all responsibilities for any continuing disclosure to Bond Owners as described below, and the
Authority shall have no liability to the Owners of the Bonds or any other person with respect to such
disclosure.
The City has covenanted for the benefit of holders and beneficial owners of the Bonds (I) to provide
certain financial information and operating data (the "Annual Report") relating to the City and the property in
the Reassessment District not later than January 31 after the end of the City's Fiscal Year, commencing with
the report for the 2004-2005 Fiscal Year, and (2) to provide notices of the occurrence of certain enumerated
events, if material. The Annual Report will be filed by MuniFinancial, as dissemination agent, on behalf of the
City, with each Nationally Recognized Municipal Securities Information Repository and with each State
Repository, if any. The notices of material events will be filed by MuniFinancial, as dissemination agent, on
behalf of the City with the Municipal Securities Rulemaking Board and with each State Repository, if any.
The specific nature of the information to be contained in the Annual Report or the notices of material events is
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set forth in the Continuing Disclosure Agreement. See APPENDIX G-"Form of Continuing Disclosure
Agreement." These covenants have been made in order to assist the Underwriter in complying with S.E.C.
Rule 15c2-I2(b)(5) (the "Rule").
It should be noted that the City is required to file certain financial statements with the Annual Report.
This requirement has been included in the Continuing Disclosure Agreement solely to satisfy the provisions of
the Rule. The inclusion of this information does not mean that the Bonds are secured by any resources or
property of the Authority or the City other than as described hereinabove. See "SPECIAL RISK FACTORS-
The Bonds are Limited Obligations of the Authority" and "-The Local Obligations are Limited Obligations
of the City."
The City has never failed to comply in all material respects with any previous undertakings with
regard to Rule l5c2-l2 to provide annual reports or notices of material events. The full text of the Continuing
Disclosure Agreement is set forth in APPENDIX D.
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Miscellaneous
All of the preceding summaries of the Indenture, the Local Obligations Indentures, applicable
legislation, agreements and other documents are made subject to the provisions of such documents and
legislation and do not purport to be complete statements of any or all of such provisions. Reference is hereby
made to such documents on file with the City for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers of the Bonds.
Any statements made in this Official Statement involving matters of opinion or of estimates, whether
or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made
that any of the estimates will be realized.
The execution and delivery of this Official Statement have been authorized by the members of the
Board of Directors of the Authority and by the members of the City Council.
CHULA VISTA PUBLIC FINANCING
AUTHORITY
By:
Treasurer
CITY OF CHULA VISTA
By:
Deputy City Manager
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APPENDIX A
INFORMATION REGARDING THE CITY OF CHULA VISTA
GENERAL INFORMATION
This appendix sets forth general information about the City ofChula Vista ("Chula Vista") including
information with respect to its finances. Thefollowing information concerning Chula Vista, the County of San
Diego (the "County 'j and the State of California (the "State 'j is included only for general background
purposes.
General Description
Chula Vista is located on San Diego Bay in Southern California, 8 miles south of the City of San
Diego and 7 miles north of the Mexico border, in the area generally known as "South Bay." Chula Vista's city
limits cover approximately 50 square miles. Chula Vista was incorporated March 17, I91l and became a
chartered city in 1949. Chula Vista operates under a Council-Manager form of goverrunent and provides the
following services: public safety, community services, engineering services, plarming services, public works,
general administrative services and capital improvements. With a January 2005 estimated population of
217,543, Chula Vista is the second largest city in the County.
Population
The historic population ofChula Vista, the County and the State is shown below.
City of Chula Vista, County of San Diego and State of California
Population Estimates
Year City of Chula Vista County of San Diego State of California
2001 181,453 2,863,657 34,441,56 I
2002 191,033 2,920,OIO 35,088,671
2003 200,378 2,971,805 35,691,442
2004 208,5 IO 3,013,014 36,271,091
2005 217,543 3,051,280 36,810,358
Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties and the State, 2001-2005,
with 2000 DRU Benchmark, Sacramento, California, May 2005.
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Building Activity
tables.
Residential building activity for the past five calendar years for Chula Vista is shown in the following
City of Ch ula Vista
New Housing Units Building Permits
Single Family Units
Multifamily Units
Total Units
2000
1,776
864
2,640
2001
2,184
1,341
3,525
2002
1,749
501
2,250
2003
2,137
1,006
3,143
2004
2,021
1,325
3,346
Source: Construction Industry Research Board.
City of Chula Vista
Building Permit Valuations
2000 2001 2002 2003 2004
Residential
New Single Family $ 319,085,986 $ 433,850,821 $ 413,647,842 $ 498,045,931 $ 464,795,796
New Multifamily 74,634,324 107,731,702 47,388,930 118,687,194 169,795,649
Res. All. & Adds 4 862.879 7.987049 10301301 13 277 257 16795727
Total Residential 398,583,189 549,569,572 471,338,073 630,010,382 651,387,172
Nonresidential
New Commercial 17,916,085 22,139,245 20,926,638 54,744,910 42,176,589
New Industrial 17,418,207 2,139,313 737,651 7,071,470 4,751,089
New Other(1) 17,890,100 11,112,335 22,761,223 28,063,492 27,637,831
Alters. & Adds. 10.527193 13 091.600 19.367.574 16 290,492 19616463
Total Non-Residential 63,751,585 48,482,493 63,793,086 106,170,157 94,181,972
Total All Building $ 462,334,774 $ 598,052,065 $ 535,131,159 $ 736,180,539 $ 745,569,144
(1) Includes churches and religious buildings, hospitals and institutional buildings, schools and educational buildings,
residential garages, public works and utilities buildings and no-residential alterations and additions.
Note: "Total All Building" is the sum of Residential and Nonresidential Building Permit Valuations. Totals may not add to
sums because of independent rounding.
Source: Construction Industry Research Board.
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Employment
The following table summarizes the labor force, employment and unemployment figures over the
period 2000 through 2004 for Chula Vista, the County, the State and the United States.
Chu1a Vista, San Diego County, State of California and United States
Labor Force, Employment and Unemployment Yearly Average
Civilian Civilian Civilian Civilian
Year and Area Labor Force EmploymentI) Unemployment2) Unemployment Ratl')
2000
Chula Vista 79,400 76,000 3,400 4.2%
San Diego County 1,378,700 1,324,700 54,000 3.9%
California 16,869,700 16,034,100 835,600 5.0%
United States(') 142,583,000 136,891,000 5,692,000 4.0%
2001
Chula Vista 81,200 77,500 3,700 4.5%
San Diego County 1,410,700 1,351,800 58,900 4.2%
California 17,150,100 16,217,500 932,600 5.4%
United States 143,734,000 136,933,000 6,801,000 4.7%
2002
Chula Vista 83,500 78,900 4,600 5.5%
San Diego County 1,449,800 1,375,400 74,400 5.1%
California 17,326,900 16,165,100 1,161,800 6.7%
United States 144,863,000 136,485,000 8,378,000 5.8%
2003
Chula Vista 84,600 79,900 4,700 5.6%
San Diego County 1,469,800 1,393,500 76,300 5.2%
California 17,414,000 16,223,500 1,190,500 6.8%
United States(') 146,510,000 137,736,000 8,774,000 6.0%
2004
Chula Vista 86,000 81,600 4,400 5.1%
San Diego County 1,493,200 1,422,500 70,700 4.7%
California 17,552,300 16,459,900 1,092,400 6.2%
United States(') 147,401,000 139,252,000 137,020,000 5.5%
(1) Includes persons involved in labor-management trade disputes.
(2) Includes all persons without jobs who are actively seeking work.
(3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded
figures in this table.
(') Not strictly comparable with data for prior years
Source: California Employment Development Department, based on March 2004 benchmark, and U.S. Department of Labor,
Bureau of Labor Statistics.
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San Diego-Carlsbad-San Marcos MSA Metropolitan Statistical Area ("MSA"), which includes Chula
Vista, civilian labor force and wage and salary employment figures for calendar years 2000 througb 2004 are
shown in the following table. These figures are county-wide statistics and may not necessarily accurately
reflect employment trends in Chula Vista.
San Diego-Carlsbad-San Marcos MSAMSA
Civilian Labor Force, Employment and Unemployment
Annual Averages, March 2004 Benchmark
2000 2001 2002 2003 2004
Civilian Labor Force 1,378,700 1,410,700 1,449,800 1,469,800 1,493,200
Civilian Employment 1,324,700 1,351,800 1,375,400 1,393,500 1,422,500
Civilian Unemployment 54,000 58,900 74,400 76,300 70,700
Civilian Unemployment Rate 3.9% 4.2% 5.1% 5.2% 4.7%
Total Farm 11,400 11,400 11,000 11,200 11,100
Total Nonfarm 1,193,800 1,218,400 1,230,700 1,240,100 1,258,600
Total Private 987,200 1,004,700 1,011,000 1,022,900 1,043,900
Goods Producing 192,600 194,400 189,000 185,800 192,000
Natural Resources and Mining 300 300 300 300 400
Construction 69,700 75,100 76,400 80,200 87,400
Manufacturing 122,600 119,000 112,300 105,300 104,200
Durable Goods 92,200 89,300 84,700 78,800 77,900
Nondurable Goods 30,400 29,800 27,700 26,500 26,300
Service Providing 1,001,200 1,024,000 1,041,700 1,054,300 1,066,600
Private Service Producing 794,600 810,200 822,000 837,000 851,900
Trade, Transportation and Utilities 202,600 209,000 208,600 209,700 214,500
Wholesale Trade 39,100 41,500 41,300 41,600 41,900
Retail Trade 133,800 135,600 138,000 140,800 144,300
TransportatioI4 Warehousing and Utilities 29,800 32,000 29,300 27,300 28,400
Information 39,200 38,800 37,700 36,900 36,400
Financial Activities 71,200 72,000 75,000 79,900 81,600
Professional and Business Services 195,200 198,200 201,700 201,200 205,100
Educational and Health Services 115,300 116,000 119,700 121,800 121,300
Leisure and Hospitality 129,000 131,400 133,800 140,700 145,300
Other Services 42,200 44,900 45,600 46,800 47,700
Government 206,600 213,800 219,700 217,300 214,700
Total, All Industries 1,205,200 1,229,800 1,241,700 1,251,300 1,269,700
Note: The "Total, All Industries" data is not directly comparable to the employment data found herein.
Source: State of California, Employment Development Department, Labor Market Information Division, San Diego-Carlsbad-
San Marcos MSA Annual Average Labor Force and Industry Employment, March 2004 Benchmark.
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The following listings set forth Chula Vista's principal employers for fiscal year ending June 30,
2004:
Chula Vista's PriucipaI Employers
Business Industrial/Office
Name
B.F. Goodrich Aerospace
Sharp Chula V ista Medical Center
Scripps Memorial Hospital
United Parcel Service
Sears Roebuck & Co.
ATe Vancom of California L P
Costco Wholesale Corp# 405
Costco Wholesale Corp# 460
Wal-Mart Store #3516
Home Depot#658
Bayview Behavioral Health Campus
Target #203
Federated Western Prop
Raytheon Systems Company
Target #1815
Target #204
Hitachi Home Electronics Inc.
Knotts Soak City USA
Fredericka Manor
Type of Business
Aerospace Manufacturing
Hospital
Hospital
Parcel Delivery Service
General Merchandise
Transit Company
General Merchandise
General Merchandise
General Merchandise
Building SupplieslHardware
Hospital
General Merchandise
Department Store
Conununications
Geueral Merchandise
General Merchandise
Home Electronics
Entertainment - Theme Park
Retirement Community
No. of Employees
1,922
1,221
865
649
340
284
281
275
250
245
236
230
229
200
194
180
163
160
160
Source: City of Chula Vista Finance Department.
Effective Buying Income
"Effective Buying Income" is defined as personal income less personal tax and nontax payments, a
number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and
salaries, other than labor-related income (such as employer contributions to private pension funds), proprietor's
income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings),
dividends paid by corporations, interest income from all sources and transfer payments (such as pensions and
welfare assistance). Deducted from this total are personal taxes (federal, state and local, nontax payments,
fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. goverrunent
definitions, the resultant figure is commonly known as "disposable personal income."
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The following table summarizes the total effective buying income, the per capita effective buying
income, the median household effective buying income and percent of households over $50,000 for Chula
Vista, the County and the State between 1999 and 2003.
Chula Vista, San Diego County and California
Effective Buying Income(!)
Median
Household Percent of
Effective Buying Per Capita Effective Effective Buying Households
Income'2) Buying Income Income over $50,000
1999
Chula Vista $ 2,629,899 $15,776 $37,725 35.4%
San Diego County 49,907,828 17,270 39,213 37.4
California 590,376,663 17,245 39,492 38.3
2000
Chula Vista $ 2,959,674 $17,268 $42,550 41.6%
San Diego County 54,337,662 19,150 44,292 43.7
California 652,190,282 19,081 44,464 44.3
2001
Chula Vista $ 2,917,494 $16,128 $42,229 39.1%
San Diego County 55,210,119 19,092 44,146 42.0
California 650,521,407 18,652 43,532 41.9
2002
Chula Vista $ 2,864,900 $15,231 $40,578 37.0%
San Diego County 54,831,958 18,524 42,315 39.7
California 647,879,427 17,737 42,484 40.5
2003
Chula Vista $ 3,420,253 $16,225 $42,389 39.9%
San Diego County 57,680,880 19,407 43,346 41.4
California 674,721,020 18,821 42,924 41.2
(I) Not comparable with prior years. Effective Buying Income is now based on money income (which does not take into
account sale of property, taxes and social security paid, receipt of food stamps, etc.) versus personal income.
(2) Dollars in thousands.
Source: "Survey of Buying Power," Sales & Marketing Management Magazine, dated 2000,2001,2002,2003 and 2004.
Sales Taxes
The following table shows taxable transactions in Chula Vista by type of business during calendar
years 1999 through 2003. As indicated below, total retail sales for Chula Vista in 2000 increased by
approximately 10.44% over the 1999 level, in 2001 increased approximately 4.98% over the 2000 level, in
2002 increased approximately 2.42% over the 200 I level, and in 2003 increased approximately 7.4 I % over the
2002 level.
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A summary of historic taxable transactions for Chula Vista is shown in the following table.
Apparel Stores Group
General Merchandise Stores
Food Stores Group
Eating and Drinking Group
Household Group/Home Fum. Appli.
Building Material Group
Automotive Group
Service Stations
Other Retail Stores
Retail Stores Total
All Other Outlets
Total All Outlets
City of Chula Vista
Taxable Transactions
(Dollars in thousands)
1999 2000 2001 2002 2003
$ 61,758 $ 66,598 $ 61,937 $ 67,035 $ 67,114
439,731 495,679 524,942 525,423 553,979
85,662 90,487 92,224 99,897 103,155
142,329 155,583 164,417 169,892 188,675
61,923 66,365 67,827 74,255 78,561
87,902 102,370 97,827 91,235 100,504
126,304 145,923 151,812 156,872 178,733
95,546 121,244 119,050 123,636 148,318
139.837 157.152 183.303 205.564 223.850
$ 1,240,992 $ 1,401,401 $1,463,409 $ 1,513,809 $1,642,889
215.396 206.889 225 .256 215.349 214.344
$ I 456388 $ 1 608 290 $1 688665 $1729158 $1 857233
Note: Drugs stores are grouped with the General Merchandise Stores and package liquor stores are grouped with the Eating
and Drinking Group.
Source: State Board of Equalization.
Education
Public educational instruction from kindergarten througb high school is provided by the Chula Vista
Elementary School District and Sweetwater Union Higb School District. These districts administer twenty-six
elementary schools, nine junior higb schools and eigbt senior high schools. Southwestern College, a two year
Community College, has an enrollment of more than 15,000. There are also four adult education schools and
twelve private schools. There are seven universities or colleges within 30 minutes commuting distance from
Chula Vista in the San Diego Metropolitan Area. Chula Vista has proposed a University of California campus
in Chula Vista, to be located on a 400 acre site adjoining the Olympic Training Center.
Community Facilities
There are two acute-care hospitals, two psychiatric hospitals and three convalescent hospitals, and
more than 400 medical doctors and allied professionals in Chula Vista.
There are two daily, one weekly and one semi-weekly newspapers published and circulated in Chula
Vista Chula Vista has one main public library and two branch libraries.
Recreational facilities within or near Chula Vista include twenty-four parks, four community centers,
six "tot lots," two ball fields, twenty-eigbt tennis courts, three golf courses, four municipal swimming pools,
two gymnasiums and boat launching facilities. Chula Vista's bayfront area contains a marina which houses
552 boats and miles of public beaches. Chula Vista also provides many trails for bicycling, hiking and
jogging.
Chula Vista is also the home of the United States Olympic Training Center. This is the third such
training center in the nation and the only year round training facility. The center is located on a l50-acre site
donated by EastLake Development Company adjacent to the Otay Lake reservoir.
ChuIa Vista has more than sixty churches and nearly 100 service, fraternal and civic organizations.
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Transportation
U.S. Highways 5 (along the coast) and 805 (inland) provide full freeway access from Chula Vista
north to San Diego and south to the Mexican boarder. Commuter rail service is provided by the San Diego
Trolley, a ligbt rail system started in 1981 and eleven bus routes serve Chula Vista.
Daily bus connections serve Chula Vista, and Southern Pacific Railway and San Diego's Lindbergb
International Airport are fifteen minutes to the north of Chula Vista.
Utilities
Electric power and natural gas are provided by San Diego Gas and Electric. Pacific Bell provides
telephone service to the area. Otay Water District and Sweetwater Water District provide water service and
Chula Vista provides sewer service.
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APPENDIX B
SUMMARY OF BOND DOCUMENTS
The following is a summary of selected provisions of the Indenture [and the Local Obligations
Indentures] not otherwise described elsewhere in the Official Statement. This summary does not purport to be
complete or defmitive and is qualified in its entirety by reference to the full terms thereof. Purchasers of the
Bonds are referred to the complete text of each respective document, copies of which are available. upon
written request from the Trustee.
[TO COME]
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APPENDIX C
FORM OF BOND COUNSEL OPINIONS
[TO COME]
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APPENDIX D
FORM OF CONTINUING DISCLOSURE AGREEMENT
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APPENDIX E
MUNICIPAL BOND INSURANCE POLICY SPECIMEN
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APPENDIX F
INFORMATION CONCERNING DTC
The iriformation concerning DTC set forth herein has been supplied by The Depository Trust
Company (HDTC"), and the Authority assumes no responsibility for the accuracy thereof
DTC and Book-Entry System
The description that follows of the procedures and recordkeeping with respect to beneficial ownership
interests in the Bonds, payment of principal of and interest on the Bonds to Participants or Beneficial Owners,
confirmation and transfer of beneficial ownership interests in the Bonds, and other Bonds-related transactions
by and between DTC, Participants and Beneficial Owners, is based on information furnished by DTC which
the Authority and the City each believes to be reliable, but the Authority and the City take no responsibility for
the completeness or accuracy thereof.
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the
Bonds. The Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One
fully registered Bond will be issued for each maturity of the Bonds, in the aggregate principal amount of such
maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a
"clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC
holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement
among Participants of securities transactions, such as transfers and pledges, in deposited securities througb
electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for
physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks,
trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its
Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the
National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as
securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules
applicable to DTC and its Participants are on file with the Securities and Exchange Commission.
Purchases of Bonds under the DTC system must be made by or througb Direct Participants, which will
receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each
Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners
are expected to receive written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant througb which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries
made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interests in Bonds, except in the event that use of the book-entry
system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or
such other DTC nominee do not effect any changes in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to
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whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Participants
will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners
will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be
in effect from time to time.
Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed
amendments to the bond documents. Beneficial Owners of Bonds may wish to ascertain that the nominee
holding the Bonds for their benefit has agreed to obtain and transmit notice to Beneficial Owners, or in the
alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that
copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being
redeemed, DTC's practice is to determine by lot the amount of interest of each Direct Participant in such issue
to be redeemed.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record
date. The Omnibus Proxy assigns Cede & Co. 's consenting or voting rights to those Direct Participants to
whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to Cede & Co. or such other nominee as
may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants'
accounts upon DTC's receipt of funds and corresponding detail information from the Trustee or the Authority,
on payable date in accordance with their respective holdings shown on DTC's records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers in bearer form or registered in "street name," and will
be the responsibility of such Participant and not ofDTC (nor its nominee), the Trustee or the Authority, subject
to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and
interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is
the responsibility of the Trustee or the Authority, disbursement of such payments to Direct Participants is the
responsibility of DTC, and disbursement of such payments to Beneficial Owners is the responsibility of Direct
and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Trustee or the Authority. Under such circumstances, in the event that a
successor securities depository is not obtained, Bonds are required to be printed and delivered.
The Authority may decide to discontinue use of the system of book-entry transfers througb DTC (or a
successor securities depository). In that event, Bonds will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been obtained
from sources that the Authority or the City believe to be reliable, but the Authority or the City take no
responsibility for the accuracy thereof.
None of the Authority, the City or the Trustee will have any responsibility or obligation to DTC
Participants, Indirect Participants or Beneficial Owners with respect to the payments or the providing of notice
to DTC Participants, Indirect Participants or Beneficial Owners or the selection of Bonds for redemption.
DTC (or a successor securities depository) may discontinue providing its services as securities
depository with respect to the Bonds at any time by giving reasonable notice to the Authority. The Authority,
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in its sole discretion and without the consent of any other person, may terminate the services of DTC (or a
successor securities depository) with respect to the Bonds. The Authority and the City undertake no obligation
to investigate matters that would enable the Authority and the City to make such a determination. In the event
that the book-entry system is discontinued as described above, the requirements of the Indenture will apply.
The Authority, the City and the Underwriter cannot and do not give any assurances that DTC, the
Participants or others will distribute payments of principal, interest or premium, if any, with respect to the
Bonds paid to DTC or its nominee as the registered Owner, or will distribute any redemption notices or other
notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner
described in this Official Statement. The Authority, the City and the Underwriter are not responsible or liable
for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with
respect to the Bonds or an error or delay relating thereto.
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APPENDIX G
RATE AND METHOD OF APPORTIONMENT
OF SPECIAL TAXES FOR THE
COMMUNITY FACILITIES DISTRICTS
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