Press Release - City Completes Sale of Refunding Bonds
NORCO, CA - Taking advantage of the low interest rate environment, the City of Norco has completed the sale of 2017 Special Tax Refunding Bonds for the Norco Community Facilities District Number 2001-1 (Norco Ridge Ranch). Proceeds from the 2017 Special Tax Refunding Bonds were used by the City to refinance the remaining outstanding balance of the District’s 2006 Refunding Bonds in order to generate significant future reduction in special taxes for property owners in the District.
The 2017 Bonds in the amount of $27 million were sold by the City’s Underwriter Stifel, Nicolaus & Company. Other members of the financing team that assisted the City in the transaction include: Stradling, Yocca Carlson and Rauth (Bond and Disclosure Counsel); Fieldman, Rolapp & Associates, Inc. (Financial Advisor); and Willdan Financial Services (Special Tax Consultant). Based on the final pricing of the Bonds, the City’s Financial Advisor has calculated the actual savings to Property Owners in the District to range between $446 and $608 in Fiscal Year 2018-2019 per parcel depending on lot size. These savings will gradually increase to a range between $686 and $936 per parcel by Fiscal Year 2027-2028 depending on lot size. The average annual savings range between $590 and $805 per parcel depending on lot size over the remaining life of the Bonds (through 2033). This represents nearly 15% in net present value savings over the old Bonds.
The Norco Ridge Ranch Community Facilities District is located about one half mile east of Interstate 15 at the intersection of Norco Hills Road and Hidden Valley Parkway. The District consists of 557 developed residential lots ranging in size from 20,000 square feet to 3.2 acres in an equestrian oriented environment. In addition to the low interest rate environment, the financing team was able to achieve higher savings than initially projected due to favorable response from investors who were impressed with the District’s financial fundamentals including recent strong growth in assessed values and diverse residential ownership of parcels. This financing transaction closed on December 6, 2017.
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