Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bonds topic
No spam. Unsubscribe anytime.
Council approves first bond sale for Lagoon Valley CFD improvement area 1 to reimburse developer for backbone work
Summary
Vacaville City Council on May 13 authorized issuance and sale of special tax bonds to reimburse the developer for public improvements in Lagoon Valley Improvement Area 1. The par amount is estimated at $13.75 million (not to exceed $16.25 million); taxes to pay debt will be levied only within the CFD area.
Vacaville City Council voted May 13 to authorize the first series of special tax bonds for Community Facilities District (CFD) No. 13, Lower Lagoon Valley — Improvement Area No. 1.
City staff and the municipal finance team said the bonds will reimburse the developer for backbone public improvements the city has already accepted, including a booster pump station, water storage reservoir and a sanitary sewer lift station. The estimated par amount for the initial series is $13,750,000 with a not‑to‑exceed authorization of $16,250,000; final sizing will be determined at sale in June.
City staff emphasized that the bonds are secured solely by special taxes levied on property within the CFD improvement area; the city’s general fund is not pledged for payment. The CFD formation process began in February 2021, and the district was set up with two improvement areas so each area may issue bonds without cross‑collateralization. Staff said the bonds will be levied starting in the 2025‑26 fiscal year and the annual special tax rates are set by the CFD’s rate and method of apportionment (detailed tables included in the preliminary official statement attached to the staff report).
Municipal advisor Dan Cox and bond counsel explained the planned negotiated sale process and why negotiated underwriting is typical for land‑secured, non‑rated financings; staff said competitive sale would not be appropriate for this issuance because of the credit and structure. Staff also explained proceeds and possible premium treatment: any premium produced at sale must be accounted for among permitted uses — principally reimbursement of developer‑constructed improvements, bond issuance costs and required reserves.
Council action: The council approved a resolution authorizing the issuance and sale of special tax bonds for Improvement Area 1 and authorized related documents and signatures. The motion passed unanimously; roll call was Wiley: yes; Vice Mayor Chapman: yes; Mayor John Carley: yes; Stockton: yes; Ritchie: yes; Council Member Grama: yes.
What’s next: Staff expects to sell the bonds in June, receive proceeds and then process developer reimbursement requests for accepted improvements. Additional bond sales for both improvement areas will need separate council action in the future.
