STAFF REPORTS

Jurupa Valley – The Jurupa Community Services District (JCSD) has successfully completed the refinancing of $97,030,000 in special tax bonds for 11 Community Facilities Districts (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, also known as Mello-Roos.

This refinancing is estimated to generate approximately $962,000 of annual debt service savings. The total savings over the life of the bond in today’s dollars is equivalent to approximately $13,154,000 savings for property owners. As a result of the lower debt service payments, the homeowners will have a reduced special tax levy beginning with the upcoming December 2014 property tax bill. The annual per parcel tax savings for each of the 11 CFDs will range between $63 and $342, depending on location.

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. That refinancing produced a total of $1.86 million of savings for four CFDs and generated more than $148,000 in annual debt service savings for these four districts.

The total combined amount refinanced in 2013 and 2014 is approximately 40% of the total CFD debt outstanding.

If you have any questions, please call the JCSD Finance Department at (951) 727-7434, extension 115.