Peoria CFD boards approve Vistancia North bond sale, authorize up to $6 million and $2.65 levy

The Vistancia North Community Facilities District board on Thursday approved a resolution authorizing the sale and issuance of general obligation bonds with a not-to-exceed amount of $6,000,000 and adopted a targeted levy of $2.65 per $100 of net limited assessed value to support the debt.

Sean Kendall, the city's chief financial officer and director of finance and budget, told the board the district formed in 2020 to finance water and wastewater infrastructure will use bond proceeds to reimburse developer-built projects and to fund additional work, including the JOMAX water treatment facility expansion. "The bonds themselves'we have a not to exceed amount of $6,000,000," Kendall said, adding officials expect actual proceeds to be "right around $4,600,000." He also said Moody's gave the district an Aa2 rating and "we will not have to do bond insurance on these bonds." (Sean Kendall)

Kendall outlined how the CFDs work: the developer constructs infrastructure, the district issues bonds to reimburse the developer, and the city ultimately owns and will maintain the assets. He said the district will only reimburse the developer up to the amount the property tax levy can support and that a developer-provided letter of credit equal to two times maximum annual debt service exists as a backstop should the levy fall short.

Mayor Pro Tem Bullock asked whether the $6,000,000 figure is a fixed charge or a maximum that could change if market prices shift. Kendall replied that $6,000,000 is a maximum proceeds cap tied to interest rates and that the binding constraint is the debt service amount the levy supports; "we will only reimburse them up to the value bonds the district can support," he said. (Bullock; Sean Kendall)

The board opened a public hearing on the feasibility report but the clerk reported there were no members of the public who wished to speak; the hearing was closed without public comment. The board then voted to approve agenda item 3R (the feasibility report) and agenda item 4R (the resolution authorizing the bond sale and levy). Both motions passed by voice vote, 7-0.

Kendall said the bonds are planned to be priced around May 13 and closed around May 27, with a 23-year term structured so all district bonds are expected to be paid off by about 2049. He said some previously completed projects (Westland Reservoir, Vistancia Boulevard lift station and Zone 67 pump station modifications) were funded with 2024 bonds and that remaining proceeds from that sale will be used where appropriate.

The city's city manager, Mike Faust, introduced the presentation and said Kendall would lead the briefing. Bond counsel Paul Gales and financial adviser Darren Hodge were listed as attending the meeting. After the Vistancia North actions, the council moved through brief consent agendas for other CFDs and adjourned; each consent agenda vote passed 7-0.

Next steps for the Vistancia North bond sale include pricing and closing on the dates Kendall cited; the district will proceed with issuance and implement the levy if market conditions and final pricing align with projections.