HomeMy WebLinkAboutReso 2005-112
RESOLUTION NO. 2005-112
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA MAKING PRELIMINARY
DETERMINATIONS AND DECLARING INTENTION TO
ISSUE BONDS TO REFUND THE OUTSTANDING BONDS
ISSUED FOR CERTAIN EXISTING ASSESSMENT
DISTRICTS AND COMMUNITY FACILITIES DISTRICTS
AND ORDERING A REPORT THEREON
WHEREAS, the City began utilizing infrastructure assessment districts in 1985 in order
to provide long-term financing for necessary infrastructure in newly developing areas of the
City; and
WHEREAS, there are currently six assessment districts and ten community facilities
districts with outstanding debt; and
WHEREAS, when new districts are formed, the related debt is necessarily issued without
a credit rating and as such, carries higher interest rates than a comparable debt with an
investment grade credit rating; and
WHEREAS, in 1995, the City refinanced the outstanding debt of four assessment
districts, and in 2001, six assessment districts were refinanced; and
WHEREAS, a preliminary review performed by municipal banking firm, Stone &
Youngberg, indicates that under the current low interest rate environment, the outstanding debt
of two assessment districts and seven community facilities districts should be refinanced in order
to achieve significant savings to the property owners on their annual assessments; and
WHEREAS, the estimated savings varies by district, but ranges from a low of 6.1 % to a
high of 19.3 % based on the current interest rate environment; and
WHEREAS, the projected aggregate annual savings would be approximately $1.3 million
and projected total savings, over the life of the existing debt, would be over $14.8 million; and
WHEREAS, the recommended refinancing structure would be very similar to that used in
the previous refinances, utilizing a process authorized under the Marks-Roos Local Bond
Pooling Act; and
WHEREAS, this involves using the City's Public Financing Authority, which would act
as a conduit in issuing the refunding bonds on a pooled basis for all nine districts; and
WHEREAS, the tentative schedule would have staff returning to the City Council for the
final approval of the transaction in early summer so that the new assessments could be reflected
on the County property tax rolls in August.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby make preliminary determinations and declare its intent to issue bonds to
refund the outstanding bonds issued for two Assessment Districts (AD 1995 Refinancing, AD
97-2) and seven Community Facility Districts (CFD's 97-3, 99-1-1999, 99-1-2001, 2000-1,
2001-1,2001-2,06-1) and order a report thereon.
Resolution 2005-112
Page 2
Presented by
Approved as to form by
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ArìÍl Moore
City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 5th day of April, 2005, by the following vote:
AYES:
Councilmembers:
Castaneda, Davis, Rindone and Padilla
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
ABSTAIN: Councilmembers:
ATTEST:
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+.. Susan Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2005-112 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 5th day of April, 2005.
Executed this 5th day of April, 2005.
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-fv. Susan Bigelow, MMC, City Clerk