HomeMy WebLinkAbout19, Old Greenwood RefinancingAction Item # 19
Consideration of Refinancing
Bonds for Old Greenwood CFD
June 5, 2013
Background / History
• In 2003, Truckee Donner PUD issued Special Tax Bonds for
the Old Greenwood Community Facilities District (CFD)
— Issued to construct and acquire various public improvements
— Land -secured and non -rated
— Current obligation is $11.8 million
— Amortized over 20 years, through September 2033
— Rates range from 4.80% in 2013 to 6.10% in 2033
— Paid by property owners in the CFD via property tax roll
— Callable on September 1, 2013 at par (no penalty)
2
New Information
• At the April 3, 2013 Board Meeting, the Board directed staff
to pursue the refinancing of the Old Greenwood CFD bonds
and present documents for the Board's consideration
• The financing team has drafted the Resolution, Trust
Indenture, Bond Purchase Agreement and Preliminary
Official Statement
• The Resolution authorizes the sale and issuance of
$12 million of refunding bonds
- On or about June 26, 2013
3
New Information
• If the Resolution is adopted, the next steps will be:
June— Publish the Official Statement and sell 2013 bonds to the
public; retail and institutional investors
July — Close transaction and deposit proceeds with Trustee
August — Send call notices for the 2003 Bonds
September — Call the 2003 Bonds
0
Fiscal Impact
• CFD property owners benefit:
— Savings are about $200,000 per year for the first three years
and $1001000 per year thereafter
— Total economic benefit of about $2.2 million over the 20-year
bond term
— Savings will facilitate further development in the CFD
• No cost to Truckee Donner PUD
— The costs of issuance will be funded by 2013 Bond proceeds
5
Recommendation
• Adopt the resolution authorizing the sale and issuance of
the 2013 Special Tax Refunding Bonds
a