CITY ISSUES REVENUE BONDS

The Chula Vista Municipal Financing Authority announces the successful pricing of $15.9 million in Revenue Bonds on August 19, 2025. Proceeds from the issuance will be used to refinance the Authority's 2015A Special Tax Revenue Refunding Bonds (2015A Bonds), which will be redeemed on October 6, 2025.

The refinancing was approved by the Chula Vista City Council to reduce property tax obligations for property owners in four Communities Facilities Districts (CFDs) in eastern Chula Vista: CFD 07-I, CFD 12-I, CFD 13-I, and CFD 2001-1 Improvement Area B. Property owners within these districts will benefit from reduced special tax bills over the life of the bonds, which extend through 2036.

The 2025 Bonds were assigned an A+ credit rating by Standard & Poor's Global Ratings. Harrell & Company Advisors, LLC, the City's municipal advisor, assisted with the issuance. The underwriting firm, winning the right to purchase the bonds through a competitive bid process, is Fidelity Capital Markets, with Stradling Yocca Carlson & Rauth serving as bond and disclosure counsel, and Spicer Consulting Group serving as the City's Special Tax Consultant.

The new bonds mature in 11 years with an effective all-in interest rate of 3.03 percent which was reduced from an estimated 3.30 percent, a significant improvement over the 4.8 percent average interest rate carried by the 2015A Bonds. The refinancing also utilized existing debt service reserve funds, investment earnings, and purchased bond insurance to achieve greater savings.

The 2025 Bonds are not City debt, and the City of Chula Vista does not receive direct financial benefit from the refinancing. All savings go directly to the property owners within the affected communities.