The Successor Agency to the Community Development

Agency of the City of Coronado

Update on 2018 Tax Allocation Refunding Bonds Presented to the San Diego County

Oversight BoardOctober 18, 2018

Coronado Refunding

• Obtained approval from Successor Agency and Oversight Board

• Department of Finance review and approval

• Tax Allocation Refunding Bonds issued

• ROPS include mandatory “turbo” redemption

Approval from Department of Finance on August 27, 2018

OFFICIAL STATEMENT COVER

2018 Tax Allocation Refunding Bonds

2018 Refunding Issue

Refunded Bonds and Loans

$63.7M Term Bonds

$57.15M Serial Bonds

Average yield, 2.65%

Mandatory Turbo Redemption. The Indenture provides for a special redemption provision (the“Turbo Redemption”) that requires the mandatory redemption of the Term Bonds from tax incrementrevenues that are received in amounts in excess of current levels (“Excess Pledged Tax Revenues,” asdefined below).

TURBO REDEMPTION SCENARIO

All Obligations paid 2027

Coronado ROPS for 2019-20 and

• Interest rate savings (2.65% vs 5.0%)-Dissolution 3 years earlier (2032)

• Turbo redemptions – Dissolution 5 years earlier (2027)

• # of lines for Enforceable Obligations reduced on ROPS

• Enforceable Obligations will change each year (depends on AV growth and mandatory turbo redemptions)