JCSD Successfully Refinances Special Tax Bonds

Tax savings for approximately 3,600 homes in Eastvale

 

Staff Reports

Jurupa Valley – The Jurupa Community Services District (JCSD) has completed a refinancing of $45,685,000, for Series A in special tax bonds for four Community Facilities Districts (CFDs), and a refinancing of $19,090,000 for Series B in special tax bonds for eight CFDs.

Many new communities, such as Eastvale, require the construction of infrastructure such as parks and public facilities, street lights, and connections to water and sewer systems. CFDs levy special property taxes paid by homeowners for the construction of such infrastructure.

The CFDs included in the Series A refunding were Nos. 18, 19, 22 and 39. The CFDs that were included in the Series B refunding were Nos. 1, 3, 5, 6, 10, 14, 24, and 29. The average reduction in the residential annual tax bill will range between $53 and $251 per parcel for Series A, and between $16 and $185 for Series B.

This refinancing is estimated to save residents approximately $248,213 of annual debt service savings for Series A, and $145,301 for Series B. The total payments over the life of the bond in today’s dollars are equivalent to approximately $5,455,153 in savings for the property owners of these 12 CFDs. As a result of the lower debt service payments, the homeowners in the following 12 CFDs will have a reduced special tax levy beginning with the upcoming December 2015 property tax bill:

Courtesy of the City of Eastvale

Courtesy of the City of Eastvale

The refinancing of existing CFD bonds does not extend the original terms of repayment to maximize the total interest savings for each resident of the CFD. This refinancing reflects JCSD’s ongoing commitment to maintain the lowest cost financing available for the CFD debt. JCSD reviews the CFD debt on an ongoing basis and refinances existing debt when there is an opportunity for savings.

The current round of refinancing was preceded by $33 million of CFD debt that JCSD refinanced in 2013, and $97 million in 2014. Those two refinancings produced a total of $15 million of savings, and generated more than $1,110,000 in annual debt service savings for those 15 CFDs.

The total combined amount refinanced is approximately 60% of the total CFD debt outstanding, saving Eastvale residents a total of $20.5 million over the lifetime of the outstanding bonds.

If you have any questions, please call the JCSD Finance Department at (951) 685-7434 extension 115.