IUSD board approves refinance of CFD No. 01-1 bonds to save taxpayers nearly $9 million

The Irvine Unified School District Board on Sept. 10 authorized issuance of Community Facilities District No. 01-1 Special Tax Refunding Bonds, Series 2024, to refinance outstanding CFD debt serving South Irvine neighborhoods including Quail Hill, Shady Canyon and Turtle Ridge.

Adam Bauer, president and CEO of Fieldman, Rolapp and Associates, said market conditions may permit interest-rate reductions and presented the financial case for refinancing. "The balance of the debt service totals $102 million, and after refinancing, the refunded debt service would be approximately $93 million, saving nearly $9 million through the remaining of the bond term in 2038, for an anticipated annual savings of $629,500," Bauer said. He outlined a timetable that includes an S&P rating call in early October, pricing in late October, and closing in early December with prior bonds redeemed by March 1, 2025.

Board members voted unanimously to adopt Resolution No. 24-25-16, authorizing the indenture, escrow and purchase agreements, the continuing disclosure agreement and the preliminary official statement. Board members thanked the Business Services team for stewarding taxpayer resources during the decision.

The district noted the refinancing does not extend the term of the special tax levy and that the intended benefit accrues to CFD property taxpayers rather than the District's general fund. The Board's vote was recorded as 5-0 in favor.