| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 6R. |
| Date Prepared: 4/11/2023 | Council Meeting Date: 4/25/2023 |
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| | | | | | | | | TO: | Mike Faust, City Manager
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| | | | | | | | | FROM:
| Kevin Burke, District Chief Financial Officer
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| | | | | | | | SUBJECT:
| Authorizing the Sale and Issuance of not to Exceed $200,000 Aggregate Principal Amount of General Obligation Bonds, Taxable Series 2023; Prescribing Certain Terms and Conditions of Such Bonds; Awarding Such Bonds to the Purchaser Thereof; Delegating the Determination of Certain Terms of Such Bonds and Matters Related Thereto and Authorizing the Subsequent Levying of an Ad Valorem Property Tax with Respect to Such Bonds |
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| | | | | | | | Purpose:
Discussion and possible action to adopt RES. VNCFD 2023-01 to: (a) authorize all matters necessary to sell and issue the District General Obligation Bonds Series 2023 in the amount not to exceed $200,000 aggregate principal; (b) award the bonds to the purchaser; and (c) authorize the subsequent levying of ad valorem property tax with respect to the bonds for Vistancia North Community Facilities District. |
| | | | | | | | Summary:
The attached resolution authorizes this initial Second Series of bonds and approves all matters necessary for the sale and issuance of the bonds. The initial Second Series bonds will be sold to the developer and will not exceed $200,000. The bonds will carry not more than a five-year term and interest on the bonds will not exceed 8.0% and will be determined based on market rates at closing. Bond proceeds will be used to pay bond issuance costs and other operating costs of the District. |
| | | | | | | | Previous Actions/Background:
The Vistancia North CFD was formed by City Council resolution in August 2020 to provide financing for public infrastructure that benefits the Vistancia North development. Along with the formation of the Vistancia North CFD, a bond election was held in October 2020, establishing a voter approved maximum bond authority of $50,000,000 for the CFD.
Infrastructure anticipated to be financed through the CFD include water and sewer infrastructure to be constructed by the developer. The infrastructure is expected to be completed in phases and general obligation bonds are anticipated to be issued by the CFD in phases to pay for the infrastructure.
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| | | | | | | | Staff Recommendation:
Staff recommends that the District Board adopt the attached Resolution as presented. |
| | | | | | | | Fiscal Analysis:
In accordance with the CFD Development Agreement, bonds will only be issued as assessed values for the District become sufficient to support debt service. Bonds issued will be repaid through the assessment of a secondary property tax at a rate of $0.55 to $2.65 per $100 of assessed value. The combined property tax rate of the Vistancia North CFD and the existing Vistancia CFD (created in 2002) cannot exceed $2.65. The CFD Development Agreement allows for an initial series of bonds for the purpose of establishing the minimum tax rate of $0.55 on the tax rolls.
The bonds will not be secured by the City's full faith and credit and the City will have no obligations for the debt service payments on the bonds. |
| | | | | | | | Contact Name and Number:
Kevin Burke 623.773.7395 |
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