Calistoga Public Facilities Corporation

Board of Directors Chairman: Mayor Williams Vice Chairman: Irais Lopez- Ortega Board Member: Scott Cooper Board Member: Lisa Gift Board Member: Kevin Eisenberg Officers President: Laura Snideman Treasurer: Connie Cardenas AGENDA FOR CALISTOGA PUBLIC Secretary: Yudiana Galvan FACILITIES CORPORATION July 9, 2024 - Following the Regular City Council Meeting CALISTOGA COMMUNITY CENTER Page A. CALL TO ORDER – ROLL CALL B. ORAL COMMUNICATION ON CONSENT ITEMS OR NON-AGENDA ITEMS This time is set aside to receive comments from the public regarding matters on the Consent Calendar or matters of municipal concern not on the agenda. Pursuant to Government Code section 54954.3 (the Brown Act), however, the Council cannot consider any issues or take action on any requests during this comment period. Speakers are encouraged to limit their comments to 3 minutes maximum so that all speakers have an opportunity to address the City Council. C. ADOPTION OF MEETING AGENDA D. GENERAL ACTIVITIES 1. Staff Report - Annual Report of the Calistoga Public Facilities 3-5 Corporation 07.09.24 PDF Debt Interest Schedules 6-30-25 (002) PDF E. ADJOURNMENT NOTICE: If you challenge a city’s zoning, planning, or other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Judicial review of any City administrative decision may be had only if a petition is filed with the court not later than the 90th day following the date upon which the decision becomes final. Judicial review of environmental determinations may be subject to a shorter time period for Litigation, in certain cases 30 days following the date of final decision. Pursuant to GC §54957.5: any writings/documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection on the City website at www.ci.calistoga.ca.us. SUPPLEMENTAL MATERIAL RECEIVED AFTER THE POSTING OF THE AGENDA: Any supplemental writings or documents distributed to a majority of the City Council regarding any item on this Agenda, after the posting of the Agenda, such writings or documents will be made available on the City’s website and will be available for public review in the City Clerk’s Office located at 1232 Washington Street, Calistoga, California, during normal business hours and by appointment. AMERICANS WITH DISABILITIES ACT: The City can provide special assistance for persons with disabilities to participate in public meetings. To make a request for disability-related modification or accommodation please contact the City Clerk at ygalvan@ci.calistoga.ca.us or (707) 942-2807. If you need assistance or accommodation, please provide notice at least 48 Page 1 of 5 hours prior to the meeting. For TTY/ Speech-to-Speech users, dial 7-1-1 for the California Relay Service, offering free text-to-speech, speech-to-speech, and Spanish language services 24 hours a day, 7 days a week. ACTA DE AMERICANOS CON DISCAPACIDADESSe les pide por favor que avise con 48 horas de anticipacion cuando necesita hacer un pedido de assistencia. Esto nos da suficiente tiempo antes de la junta para que la ciudad tome medidas razonables. POSTING: I declare a copy of this agenda was posted at City Hall, 1232 Washington Street, Calistoga, among other locations in the city limits of Calistoga, on July 2, by 4:30 p.m. Page 2 of 5  CALISTOGA PUBLIC FACILITIES CORPORATION STAFF REPORT TO: Board of Directors, Calistoga Public Facilities Corporation FROM: Connie Cardenas, Finance Director DATE: July 09, 2024 SUBJECT: Annual Report of the Calistoga Public Facilities Corporation Approved by DESCRIPTION Annual Report of the Calistoga Public Facilities Corporation. RECOMMENDATION Receive and File Report. BACKGROUND The Calistoga Public Facilities Corporation was created as a Section 501 (c) (4) non-profit public benefit corporation in September 1987 by the City of Calistoga as part of the initial financing of the new Police Station and parking lot. The costs of these improvements were funded, in part, through the issuance of a 1987 $2, 115,000 Certificate of Participation (COP). This type of non-profit corporation is required by the Federal IRS code in order to issue a public financing instrument called a Certificate of Participation (COP). A COP is a typical California public financing instrument for public facilities or equipment. It is essentially a type of lease purchase that requires a third party for the lease transaction. The Calistoga Public Facilities Corporation (CPFC) assigns all of the rights, obligations, and financial transactions to others, such as the City or Trustee for the COP. Even though the CPFC is a separate legal entity, it is considered a "component unit" of the City and is included in the audit of the Comprehensive Annual Financial Report. In November 2007, the City issued a municipal lease for $4,649,000 to provide funding for several community projects. The lease was secured by the public works facility and fire station and Page 3 of 5 provided funds to complete the projects. The lease was issued for 20 years at 4.95% annual interest. The funds were invested to earn an estimated $170,000 over the two-year period, which served to offset a portion of the interest costs. In addition, the lease incorporated the ability to pay off the financing in a shorter period than usual. This lease was reset on May 1, 2016. On April 5, 2016, through resolution 2016-029, the City Council approved a rate reset on the City's existing 2007 Capital Improvement Project Lease. A rate reset with the original lender, Westamerica Bank minimized the overall costs of the lease. The outstanding par amount that was refunded was $3,870,414. The City's debt service is approximately $374,000 and fiscal year savings approximately $52,400 per year. The lease was issued for 12 years at 2.44% interest rate and payments to be made monthly commencing July 1, 2016. Current outstanding balance at June 30, 2024 is $1,310,159. In June 2011, the City issued a previously authorized USDA loan of $3,750,000 to finance construction of the Mt Washington Water Tank project. This financing, along with funds previously authorized through Measure A, will fund the remainder of the project. The USDA loan was issued for 40 years at 2.5% annual interest. Debt service payments will be made from the Water Utility and were anticipated during the recently updated rates. The current outstanding balance at June 30, 2024 is $2,437,852. On May 8, 2018, the City issued $8,920,000 2018 Water and Wastewater Revenue Certificates of Participation (“2018 Refunding COPs”). The 2018 bond refinanced the 2005D Water, 2008 COPS Water, 2001 B Wastewater and 2005 COPs Wastewater. In total, the City refinanced approximately $8.9 million of outstanding debt for interest rate savings. The current outstanding balance at June 30, 2024 for Water is $2,855,000 and for Wastewater $3,285,000. 2023/24 Activity All debt service payments have been made on a timely basis for the 2007, 2011, and 2018 financing. Future Financings There are no anticipated future financings at this time. FINANCIAL IMPACT None ATTACHMENT 1. Debt Schedule FY 2024-25 Page 4 of 5 City of Calistoga Fiscal Year 24-25 Budget Debt Schedule FY 2024-25 Principal Original Issue Balance Principal Interest Total Balance Amount 7/1/2024 Pymts Pymts 6/30/2025 WATER FUND Water Revenue COP 2018 $ 3,905,000 $ 2,855,000 $ 195,000 $ 101,757 $ 296,757 $ 2,660,000 Issue Date: 05/08/2018 Principal Payments Due 10/1 2.875 % to 5.0% 'October 2044 USDA 2011 COP $ 3,750,000 $ 2,437,852 $ 75,000 $ 60,009 $ 135,009 $ 2,362,852 Issue Date: 08/10/2009 Principal Payments Due 07/12 2.5%/$148,237 ** Principal varies based on drawdowns 'March 1, 2048 TOTAL WATER DEBT $ 7,655,000 $ 5,292,852 $ 270,000 $ 161,766 $ 431,766 $ 5,022,852 WWTP FUND Wastewater Revenue COP 2018 $ 5,015,000 $ 3,285,000 $ 325,000 $ 112,713 $ 437,713 $ 2,960,000 Issue Date: 05/08/2018 Principal Payments Due 10/1 2.875 % to 5.0% 'October 2044 TOTAL WWTP DEBT $ 10,624,999 $ 3,285,000 $ 325,000 $ 112,713 $ 437,713 $ 2,960,000 GENERAL LONG TERM DEBT ACCOUNT GROUP Lease Payable-West America $ 3,870,413 $ 1,310,159 $ 345,784 $ 28,118 $ 373,902 $ 964,375 Pool, Fire, recreation, public works Issue Date: 05/01/2016 'February 1, 2028 2.44% TOTAL LONG TERM DEBT $ 3,870,413 $ 1,310,159 $ 345,784 $ 28,118 $ 373,902 $ 964,375 GRAND TOTAL $ 22,150,413 $ 9,888,010 $ 940,784 $ 302,597 $ 1,243,381 $ 8,947,227 Page 5 of 5