FROM:
Finance
SUBJECT:
Title
Issuance of Special Tax Bonds for CFD #100 (Victoria)
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2023-100, of the City Council of the City of Fontana authorizing the issuance of City of Fontana Community Facilities District No. 100 (Victoria) Special Tax Bonds, Series 2023, in an aggregate principal amount of not to exceed $6,000,000, authorizing the execution and delivery of an Indenture, a Bond Purchase Agreement and a Continuing Disclosure Agreement, authorizing the distribution of an Official Statement in connection therewith and authorizing the execution of necessary documents and certificates and related actions.
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COUNCIL GOALS:
• Practice sound fiscal management by developing long-term funding and debt management plans.
DISCUSSION:
On December 8, 2020, the City Council authorized the formation of Community Facilities District No. 100 (Victoria) and conducted a special election to levy taxes within the District. This project consists of 193 residential lots located at the northwest corner of North Heritage Circle and Victoria Street. Bond proceeds will be used to fund public infrastructure including sewer, storm drain, street improvements, landscaping, public facilities and park facilities.
In order to issue the special tax bonds, it is necessary to execute bond documents and agreements relating to this District. The recommended action complies with the City’s debt management strategy.
The following documents, in their materially correct form, are attached hereto:
1. Indenture;
2. District Continuing Disclosure Agreement;
3. Bond Purchase Agreement;
4. Preliminary Official Statement; and
5. Appraisal Report.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $4.58 million in bond proceeds resulting from the issuance of the bonds to be made available for the approved infrastructure projects which also includes $916,000 in community benefit fees (20% of bond proceeds) to fund a defined community benefit project. Costs of issuance will be paid from gross bond proceeds. Debt service payments will be made from special taxes levied on the property owners within the district.
MOTION:
Approve staff recommendation.