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Item No. 04 Annual Continuing Disclosure Reports
CITY OF LAKE f L 110ICE ;';�=`'' I� tt i�: A f�1 I✓,�'1" tZ)r �i f TM REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: GRANT YATES CITY MANAGER DATE: JANUARY 13, 2015 SUBJECT: ANNUAL CONTINUING DISCLOSURE REPORTS Recommendation Receive and file the Annual Continuing Disclosure Reports pursuant to related bond covenants. These reports were disseminated to the Electronic Municipal Market Access (EMMA) which is a provided as a service by the Municipal Securities Rulemaking Board (MSRB) as required on or before December 31, 2014. Background The following reports were disseminated to EMMA on December 31, 2014, as follows: • AD 93 -1, 2012 Series B • CFD 88 -3, 2013 Series B • CFD 90 -2, 2002 Series A • CFD 90 -2, 2007 Series A • CFD 98 -1, 2013 Series C • CFD 2003 -2 IA C, 2012 Series C • CFD 2003 -2 IA D, 2014 Series A- (We will disseminate the Official Statement for the first year) • CFD 2005 -5 Villages at Wasson Canyon • CFD 2006 -1 Summerly IA A, 2013 Series A Discussion The Annual Continuing Disclosure Reports pursuant to related bond covenants were filed and were disseminated to the Electronic Municipal Market Access (EMMA) which is a provided as a service by the Municipal Securities Rulemaking Board (MSRB) as required on or before December 31, 2014. AGENDA ITEM NO. Page I of StM l =a.. 1 Ali V" 1 . ANNUAL CONTINUING DISCLOSURE REPORTS January 13, 2015 Page 2 Fiscal Impact Not applicable. Prepared by: Jason Simpson Director of Administrative Services Approved by: Grant Yates City Manager Attachments: Annual Continuing Disclosure Reports • AD 93 -1, 2012 Series B • CFD 88 -3, 2013 Series B • CFD 90 -2, 2002 Series A • CFD 90 -2, 2007 Series A • CFD 98 -1, 2013 Series C • CFD 2003 -2 IA C, 2012 Series C • CFD 2003 -2 IA D, 2014 Series A- (We will disseminate the Official Statement for the first year) • CFD 2005 -5 Villages at Wasson Canyon • CFD 2006 -1 Summerly IA A, 2013 Series A Submission Confirmation from EMMA for all related issues Submission Preview Print MR ititui�iii�w2 Stv7sri6n�z Rulciliking Board CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page 1 of 2 Submission IMER665559 12/29/2014 14:03:26 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS I-'.-Financial Operating Filing ' FY13 -14 Continuing Disclosure Canyon Hills AD 93 -1 2012B.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 10 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509632GL3 09/02/2014 509632GM1 09/02/2015 509632GN9 09/02/2016 509632GP4 09/02/2017 509632GQ2 09/02/2018 509632GRO 09/02/2019 509632GS8 09/02/2020 509632GT6 09/02/2021 509632GU3 09/02/2022 509632GV1 09/02/2030 http: / /dataport.einma.insrb.oi-gl Submission ISubmissionPreviewPrint .aspx ?subinissioiild =... 12/29/2014 Submission Preview Print Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissionPreviewPrint .aspx ?submissionId =... 12/29/2014 Submission Preview Print MSRB Main ilmlSc;un.,.'a 9111cinaking Board CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) Page I of 2 Submission IMER665502 12129/2014 13:18:14 FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS s- ,Financial Operating Filing FY13 -14 Continuing Disclosure West Lake Elsinore CFD 88 -3 2013B.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 7 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509632JA4 09/01/2014 509632,1132 09/01/2015 509632JCO 09/01/2016 509632JD8 09/01/2017 509632J E6 09/01/2018 509632JF3 09/01/2019 509632JG 1 09/01/2020 Submitter's Contact Information http: / /dataport.emma.ansi-b.org/ Submission /SLibmissionPreviewPrint .aspx ?subinissionld =... 12/29/2014 Submission Preview Print Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com © 2009 Municipal Securities Hulemaking Board (MSRB) http: / /dataport.ennna.msrb.org/ Submission /SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print MS illy 1 {isitici�tu Stttisricie-, niltiflxi;in� Fit, <;. CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIALIOPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page I of 2 paint Submission ID:ER665478 12/29/2014 12:41:43 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS 1--Financial Operating Filing FY13 -14 Continuing Disclosure Tuscany Hills CFD 90 -2 2002A.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509634 CA LAKE ELSINORE CALIF REDEV AGY SPL TAX THE FOLLOWING 14 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509634AB7 10/01/2003 509634AC5 10/01/2004 509634AD3 10/01/2005 509634AE 1 10/01/2006 509634AF8 10/01/2007 509634AG6 10/01/2008 509634AH4 10/01/2009 509634AJO 10/01/2010 509634AK7 10/01/2011 509634AL5 10/01/2012 509634AM 3 10/01/2013 http: / /datapoi-t.emma.msi-b.org/ Submission /SubmissioiiPi-eviewPi-int .aspx ?submissionld =... 12/29/2014 Submission Preview Print 509634AN 1 10/01/2014 509634AP6 10/01/2015 509634AQ4 10/01/2016 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissioiiPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print will MSRB i4fianieitx� Stt�.ri[i.� Rulcma.king Roaact CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page 1 of 2 Il�i�t Submission ID:ER665491 12/29/2014 13:02:41 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS -3 °Financial Operating Filing ` FY13 -14 Continuing Disclosure Tuscany Hills CFD 90 -2 2007A.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509634 CA LAKE ELSINORE CALIF REDEV AGY SPL TAX THE FOLLOWING SECURITY HAS BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509634AR2 10/01/2024 Submitter's Contact Information Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com http: / /dataport.emma.msrb.orgl Submission/ SubinissioiiPreviewPi- int.aspx ?submissionld =... 12/29/2014 Submission Preview Print © 2009 Municipal Securities Rulemaking Board (MSRB) Page 2 of 2 http: / /dataport.emma.msrb.org/ Submission/ SubmissionPreviewPrint .aspx ?submissionId =... 12/29/2014 Submission Preview Print III Nisiir CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) Page 1 of 2 Submission ID:ER665507 12/29/2014 13:23:57 FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS '- ;-.Financial Operating Filing FY13 -14 Continuing Disclosure Summerhill CFD 98 -1 2013C.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 12 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509632J1-19 09/01/2014 509632JJ5 09/01/2015 509632JK2 09/01/2016 509632JLO 09/01/2017 509632JM8 09/01/2018 509632JN6 09/01/2019 509632JP1 09/01/2020 509632JQ9 09/01/2021 509632JR7 09/01/2022 509632JS5 09/01/2023 509632JT3 09/01/2033 http : / /dataport.emina.msi-b.org/ Submission /SubmissionPi-eviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print 509632JU0 1 09/01/2033 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print MRB M allicilwl Sma[ra %J14nt .1kitrg Board CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page l of 2 Submission ID:ER665518 12129/2014 13:31:30 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS 1-!.,Financial Operating Filing FY13 -14 Continuing Disclosure Canyon Hills CFD 2003 -2 IA C 2012C.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 16 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 I Maturity Date 509632GW9 09/01/2015 509632GX7 09/01/2016 509632GY5 09/01/2017 509632GZ2 09/01/2018 509632HA6 09/01/2019 5096321-164 09/01/2020 509632HC2 09/01/2021 509632HDO 09/01/2022 509632HE8 09/01/2023 509632HF5 09/01/2024 509632HG3 09/01/2025 littp:Hdataport.emma.msi-b.org/ Submission /SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print 5096321-11-11 09/01/2026 509632HJ7 09/01/2027 509632H K4 09/01/2032 5096321-11-2 09/01/2037 509632HMO 09/01/2042 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissionPreviewPrint.aspx ?submissionld =... 12/29/2014 Submission Preview Print �!I MSRB Municilka ScolriaiN Rulcimking BnaM CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page I of 2 Submission ID:ER665576 12/29/2014 14:21:22 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS -t °Financial Operating Filing OS- CFD 2003 -2 IA D 2014 Series A.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 15 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 I Maturity Date 509632JW6 09/01/2016 509632JX4 09/01/2017 509632JY2 09/01/2018 509632JZ9 09/01/2019 509632KA2 09/01/2020 509632KBO 09/01/2021 509632KC8 09/01/2022 509632KD6 09/01/2023 509632KE4 09/01/2024 509632KF1 09/01/2025 509632KG9 09/01/2026 http: / /dataport.emina.msrb.org/ Submission /SubmissionPreviewPi-int .aspx ?subiiiissionld =... 12/29/2014 Submission Preview Print 509632KH7 09/01/2027 509632KJ3 09/01/2028 509632KKO 09/01/2033 509632KL8 09/01/2044 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa.bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma. msrb. org / Submission /SubmissionPreviewPrint.aspx ?submissionld =... 12/29/2014 Submission Preview Print wompp- MSRB allicilkil scouni,:. Rlals mit ii% Board CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Page 1 of 2 Submission ID:ER665497 12/29/2014 13:10:23 Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS t- i••Financial Operating Filing FY13 -14 Continuing Disclosure Wasson Canyon CFD 2005 -5 2012A.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 14 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509632FWO 09/01/2013 509632FX8 09/01/2014 509632FY6 09/01/2015 509632FZ3 09/01/2016 509632GA7 09/01/2017 509632GB5 09/01/2018 509632GC3 09/01/2019 509632G D 1 09/01/2020 509632GE9 09/01/2021 509632GF6 09/01/2022 509632GG4 09/01/2023 http: / /datapoi•t.emma.msrb.org/ Submission/ SubmissionPi-eviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print 509632GH2 09/01/2024 509632GJ8 09/01/2025 509632GK5 09/01/2038 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa .bellitire @webbassociates.com 0 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print F I MSRB Mmisiri ;xi! -Swniti, Rulem.aking B mrd CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) Page 1 of 2 Submission ID:ER665545 12/29/2014 13:52:07 FINANCIAL /OPERATING FILING (CUSIP -9 BASED) Rule 15c2 -12 Disclosure Annual Financial Information and Operating Data: Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014, for the year ended 06/30/2014 DOCUMENTS 17 °Financial Operating Filing •FY13 -14 Continuing Disclosure 2006 -1 Summerly 2013A.pdf posted 12/29/2014 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -6 State Issuer Name 509632 CA LAKE ELSINORE CALIF PUB FING AUTH LOCAL AGY REV THE FOLLOWING 12 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP -9 Maturity Date 509632HN8 09/01/2015 509632HP3 09/01/2016 509632HQ1 09/01/2017 509632HR9 09/01/2018 509632HS7 09/01/2019 509632HT5 09/01/2020 509632HU2 09/01/2021 509632HVO 09/01/2022 509632HW8 09/01/2023 509632HX6 09/01/2028 509632HY4 09/01/2033 http: / /datapoi-t.ennna.msrb.orgl Submission/ SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Submission Preview Print 509632HZ1 1 09/01/2043 Submitter's Contact Information Page 2 of 2 Company: Albert A. Webb Associates Name: MELISSA BELLITIRE Address: 3788 MCCRAY STREET City, State Zip: RIVERSIDE, CA 92506 Phone Number: 9513206021 Email: melissa.bellitire @webbassociates.com © 2009 Municipal Securities Rulemaking Board (MSRB) http: / /dataport.emma.msrb.org/ Submission /SubmissionPreviewPrint .aspx ?submissionld =... 12/29/2014 Table of Contents Sections Tables Section 1 Section 2 Section 3 Section 4 Section 5 Table 2 -1 Table 3 -1 Appendices District Profile Property Ownership Payment History_ Bond Funds Significant Events_ Value -to -Lien Ratio Based on Assessed Value and Overlapping Debt Delinquency Summary Appendix A. Debt Service Schedule Appendix B. District Boundary Map Appendix C. Special Tax Delinquency History CUSIP Numbers 1 2 3 4 5 2 3 6 _9 11 The information herein for Assessment District No. 93 -1 of the City of Lake Elsinore, (the "District" or "AD 93 -1 ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore (the "City "), as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 9/2/2014 509632GL3 9/2/2019 509632GR0 9/2/2015 509632GM1 9/2/2020 509632GS8 9/2/2016 509632GN9 9/2/2021 509632GT6 9/2/2017 509632GP4 9/2/2022 509632GU3 9/2/2018 509632GQ2 9/2/2030 509632GV1 1 2 3 4 5 2 3 6 _9 11 The information herein for Assessment District No. 93 -1 of the City of Lake Elsinore, (the "District" or "AD 93 -1 ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore (the "City "), as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Assessment District No. 93 -1 2012 Series B Canyon Hills Project Description The District was formed in March 1993 and is comprised of Canyon Hills, a planned residential community in the western portion of Riverside County. The District includes 49 planning areas containing 2,040 gross acres and 1,011.70 net acres. The area designated for single family dwelling units contains approximately 770 assessable acres. The area designated for multifamily dwelling units, including detached condominiums, contains approximately 93 acres. The area designated commercial use contains approximately 31 acres. Location The District is located in the southeast portion of the City, to the south of the City of Canyon Lake. The intersection of Canyon Hills Road and Railroad Canyon Road, at the entrance of Canyon Hills, is approximately 2 -1/2 miles east of the Interstate 15 freeway. 2012 Series B Bonds The 2012 Series B Bonds (the "Bonds ") in the amount of $15,345,000 were issued November 14, 2012, with interest rates ranging from 3.000% to 6.125 %. Interest is payable semi - annually on March 2 and September 2. The date for the final maturity of the Bonds is September 2, 2030. The principal amount of the Bonds Outstanding as of September 30, 2014 is $14,730,000. The Bonds were issued to finance the refunding of certain prior bonded indebtedness relating to the City of Lake Elsinore Assessment District No. 93 -1, including the portion of improvements constructed for Railroad Canyon Road that were determined to be the fair and equitable portion for the District. There are no remaining unissued Bonds authorized for the District. I rental Continuing Disclosure Report for Fiscal Year ending.hme 30, 2014 AD No. 93-1 (Canyon Hills), 2012 Series B a L c O 0 a. N U 'C ++ Lo 0 a) L C N a c 'a a co i a) > O a c cn N O s c A 6 m ro rn c O co m a a r a) c O a O Q C a) U +N+ c a) cn 2 a cz O) c .3 O 0 CD I-- .Q O y Q 0 O Q tz h , . sn t .. 0 E o` O co c 0 m m a Lo a) a 4SLA i , N N m 5 r L h 4i o� 'U `r c �N a� 5Z q c b0 r fi Ua � e rq Q� 3. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 3 -1 Delinquency Summary Prepayments There have been no prepayments of the Reassessment for the prior Fiscal Year. Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,505,171 is expected to generate sufficient revenue to cover the full year's debt service of $1,442,250, without impacting the fully funded Reserve Fund. Foreclosure Covenant In order to pay debt service on the District Bonds, it is necessary that the annual installments assessed against land within the District be paid in a timely manner. The City has covenanted for the benefit of the Bond owners to annually reconcile levies and collections for the District and to initiate judicial foreclosure proceedings within 90 days following the end of a fiscal year in which there is any delinquency in payment. The City has also covenanted to diligently prosecute to completion such foreclosure proceedings as may be necessary to collect the delinquent amounts. Collection and foreclosure Actions There are no foreclosure actions at this time. Annual Continuing Disclosure Report .for Fiscal Year ending June 30, 2014 3 AD No. 93 -1 (Canyon Hills), 2012 Series B M KqV V-1 Delinquent Delinquency 72009 2,153 $1,628,094.08 Parcels 2 Amount $924.12 (at Fiscal Year End) 0.06% 10 2,142 $1,338,538.26 3 $1,220.09 0.09% 11 2,290 $1,637,548.88 7 $2,596.43 0.16% 2012 2,291 $1,618,799.52 6 $2,815.04 0.17% 2013 2,363 $1,505,170.62 11 $3,590.10 0.24% Prepayments There have been no prepayments of the Reassessment for the prior Fiscal Year. Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,505,171 is expected to generate sufficient revenue to cover the full year's debt service of $1,442,250, without impacting the fully funded Reserve Fund. Foreclosure Covenant In order to pay debt service on the District Bonds, it is necessary that the annual installments assessed against land within the District be paid in a timely manner. The City has covenanted for the benefit of the Bond owners to annually reconcile levies and collections for the District and to initiate judicial foreclosure proceedings within 90 days following the end of a fiscal year in which there is any delinquency in payment. The City has also covenanted to diligently prosecute to completion such foreclosure proceedings as may be necessary to collect the delinquent amounts. Collection and foreclosure Actions There are no foreclosure actions at this time. Annual Continuing Disclosure Report .for Fiscal Year ending June 30, 2014 3 AD No. 93 -1 (Canyon Hills), 2012 Series B 4. Bond Funds Reserve fund The Reserve Fund must be maintained at the Reserve Requirement which is defined as of any date of calculation as an amount equal to the least of (a) 10% of the total original principal amount of the Bonds, (b) Maximum Annual Debt Service on the Outstanding Bonds, or (c) 125% of average Annual Debt Service on the Outstanding Bonds. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the appropriate account of the Bond Fund. The Reserve Fund will then be replenished by increasing the next year's special tax levy to the extent permitted by law. As of June 30, 2014 the balance in the Reserve Fund was $1,429,746.80 and the Reserve Requirement was $1,429,700. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Continuing Disclosure Repon for Fiscal Year ending June 30, 2014 AD No. 93 -1 (Ca»von Hills), 2012 Series 6 5. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. Principal and interest payment delinquencies; Not Applicable 2. non - payment related defaults; Not Applicable 3. modifications to rights of Bondholders; Not Applicable 4. optional, contingent or unscheduled bond calls; Not Applicable 5. defeasances; Not Applicable 6. rating changes; Not Applicable 7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or Not Applicable final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 9. unscheduled draws on credit enhancements reflecting financial difficulties; Not Applicable 10. substitution of credit or liquidity providers, or their failure to perform; Not Applicable 11. release, substitution or sale of property securing repayment of the Bonds. Not Applicable 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority; Not Applicable 13. appointment of a successor or additional trustee or the change of name of a trustee, Not Applicable if material; or 14. the consummation of a merger, consolidation, or acquisition involving the Authority Not Applicable or the sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Corriinuing Disclosure Report for Fiscal Year ending Jmme 30, 2014 5 AD No. 93 -1 (Cai�7mn Hills), 2012 Series B APPENDIX A Debt Service Schedule A L B E R T A S S O C I A T E S Appendix A Debt Service Schedule SCHEDULED DEBT SERVICE ON THE DISTRICT BONDS- AUTHORITY LEVEL Date 03/02/2013 Coupon Rate Principal Interest $ 174,065.00 Annual Interest Service Balance $ 15,345,000 09/02/2013 $ 413,625.00 $ 587,690.00 $ 587,690.00 $ 15,345,000 03/02/2014 $ 413,625.00 $ 15,345,000 09/02/2014 3.000% $ 615,000.00 $ 413,625.00 $ 827,250.00 $ 1,442,250.00 $ 14,730,000 03/02/2015 $ 404,400.00 $ 14,730,000 09/02/2015 3.250% $ 630,000.00 $ 404,400.00 $ 808,800.00 $ 1,438,800.00 $ 14,100,000 03/02/2016 $ 394,162.50 $ 14,100,000 09/02/2016 3.750% $ 655,000.00 $ 394,162.50 $ 788,325.00 $ 1,443,325.00 $ 13,445,000 03/02/2017 $ 381,881.25 $ 13,445,000 09/02/2017 4.000% $ 675,000.00 $ 381,881.25 $ 763,762.50 $ 1,438,762.50 $ 12,770,000 03/02/2018 $ 368,381.25 $ 12,770,000 09/02/2018 4.375% $ 705,000.00 $ 368,381.25 $ 736,762.50 $ 1,441,762.50 $ 12,065,000 03/02/2019 $ 352,959.38 $ 12,065,000 09/02/2019 4.625% $ 735,000.00 $ 352,959.38 $ 705,918.75 $ 1,440,918.75 $ 11,330,000 03/02/2020 $ 335,962.50 $ 11,330,000 09/02/2020 4.875% $ 770,000.00 $ 335,962.50 $ 671,925.00 $ 1,441,925.00 $ 10,560,000 03/02/2021 $ 317,193.75 $ 10,560,000 09/02/2021 5.375% $ 805,000.00 $ 317,193.75 $ 634,387.50 $ 1,439,387.50 $ 9,755,000 03/02/2022 $ 295,559.38 $ 9,755,000 09/02/2022 5.375% $ 850,000.00 $ 295,559.38 $ 591,118.75 $ 1,441,118.75 $ 8,905,000 03/02/2023 $ 272,715.63 $ 8,905,000 09/02/2023 6.125% $ 895,000.00 $ 272,715.63 $ 545,431.25 $ 1,440,431.25 $ 8,010,000 03/02/2024 $ 245,306.25 $ 8,010,000 09/02/2024 6.125% $ 950,000.00 $ 245,306.25 $ 490,612.50 $ 1,440,612.50 $ 7,060,000 03/02/2025 $ 216,212.50 $ 7,060,000 09/02/2025 6.125% $ 1,010,000.00 $ 216,212.50 $ 432,425.00 $ 1,442,425.00 $ 6,050,000 03/02/2026 $ 185,281.25 $ 6,050,000 09/02/2026 6.125% $ 1,070,000.00 $ 185,281.25 $ 370,562.50 $ 1,440,562.50 $ 4,980,000 03/02/2027 $ 152,512.50 $ 4,980,000 09/02/2027 6.125% $ 1,135,000.00 $ 152,512.50 $ 305,025.00 $ 1,440,025.00 $ 3,845,000 03/02/2028 $ 117,753.13 $ 3,845,000 09/02/2028 6.125% $ 1,205,000.00 $ 117,753.13 $ 235,506.25 $ 1,440,506.25 $ 2,640,000 03/02/2029 $ 80,850.00 $ 2,640,000 09/02/2029 6.125% $ 1,280,000.00 $ 80,850.00 $ 161,700.00 $ 1,441,700.00 $ 1,360,000 03/02/2030 $ 41,650.00 $ 1,360,000 09/02/2030 6.125% $ 1,360,000.00 $ 41,650.00 $ 83,300.00 $ 1,443,300.00 $ 0 Total $15,345,000.00 $ 9,740,502.50 $ 9,740,502.50 $ 25,085,502.50 4AA • 1 Appendix A Debt Service Schedule SCHEDULED DEBT SERVICE ON THE BONDS- LOCAL LEVEL . .. �. Principal 03/02/2013 $ 174,065.00 AnnualDebt $ 15,345,000 09/02/2013 $ 336,900.00 $ 510,965.00 $ 510,965.00 $ 15,345,000 03/02/2014 $ 336,900.00 $ 15,345,000 09/02/2014 2.000% $ 615,000.00 $ 336,900.00 $ 673,800.00 $ 1,288,800.00 $ 14,730,000 03/02/2015 $ 330,750.00 $ 14,730,000 09/02/2015 2.250% $ 630,000.00 $ 330,750.00 $ 661,500.00 $ 11291,500.00 $ 14,100,000 03/02/2016 $ 323,662.50 $ 14,100,000 09/02/2016 2.750% $ 655,000.00 $ 323,662.50 $ 647,325.00 $ 1,302,325.00 $ 13,445,000 03/02/2017 $ 314,656.25 $ 13,445,000 09/02/2017 3.000% $ 675,000.00 $ 314,656.25 $ 629,312,50 $ 1,304,312.50 $ 12,770,000 03/02/2018 $ 304,531.25 $ 12,770,000 09/02/2018 3.375% $ 705,000.00 $ 304,531.25 $ 609,062.50 $ 1,314,062.50 $ 12,065,000 03/02/2019 $ 292,634.38 $ 12,065,000 09/02/2019 3.625% $ 735,000.00 $ 292,634.38 $ 585,268.76 $ 1,320,268.76 $ 11,330,000 03/02/2020 $ 279,312.50 $ 11,330,000 09/02/2020 3.875% $ 770,000.00 $ 279,312.50 $ 558,625.00 $ 1,328,625.00 $ 10,560,000 03/02/2021 $ 264,393.75 $ 10,560,000 09/02/2021 4.375% $ 805,000.00 $ 264,393.75 $ 528,787.50 $ 1,333,787.50 $ 9,755,000 03/02/2022 $ 246,784.38 $ 9,755,000 09/02/2022 4.375% $ 850,000.00 $ 246,784.38 $ 493,568.76 $ 1,343,568.76 $ 8,905,000 03/02/2023 $ 228,190.63 $ 8,905,000 09/02/2023 5.125% $ 895,000.00 $ 228,190.63 $ 456,381.26 $ 1,351,381.26 $ 8,010,000 03/02/2024 $ 205,256.25 $ 8,010,000 09/02/2024 5.125% $ 950,000.00 $ 205,256.25 $ 410,512.50 $ 1,360,512.50 $ 7,060,000 03/02/2025 $ 180,912.50 $ 7,060,000 09/02/2025 5.125% $ 1,010,000.00 $ 180,912.50 $ 361,825.00 $ 1,371,825.00 $ 6,050,000 03/02/2026 $ 155,031.25 $ 6,050,000 09/02/2026 5.125% $ 1,070,000.00 $ 155,031.25 $ 310,062.50 $ 1,380,062.50 $ 4,980,000 03/02/2027 $ 127,612.50 $ 4,980,000 09/02/2027 5.125% $ 1,135,000.00 $ 127,612.50 $ 255,225.00 $ 1,390,225.00 $ 3,845,000 03/02/2028 $ 98,528.13 $ 3,845,000 09/02/2028 5.125% $ 1,205,000.00 $ 98,528.13 $ 197,056.26 $ 1,402,056.26 $ 2,640,000 03/02/2029 $ 67,650.00 $ 2,640,000 09/02/2029 5.125% $ 1,280,000.00 $ 67,650.00 $ 135,300.00 $ 1,415,300.00 $ 1,360,000 03/02/2030 $ 34,850.00 $ 1,360,000 09/02/2030 5.125% $ 1,360,000.00 $ 34,850.00 $ 69,700.00 $ 1,429,700.00 $ 0 Total $15,345,000.00 $ 8,094,277.54 $ 8,094,277.54 $ 23,439,277.54 APPENDIX B District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP ASSESSMENT DISTRICT NO. 93 -1 (CANYON HILLS) 8a rr, 4ya♦ Ira f: -a yi bg �+` .. tat mry= �+►�`•.� �"rru i� 11'tS'.axT � • ' lye eta • a 11 ' ��� !I� s - pt�a o - 'Iiuuu>.n�� �%_ ♦ �,� ,,, �i•,- �'+ _ S x•- � - ; wa ru - a1n�a�nrtr ® fi + a wy �' : � I rp rI!% , • (\_. � v _trfnl[i) E� �i i� a -�►P�i 7 ,4. �. a• 0����� 7�i1 a vf`ni m.zL a__ + � - •tJ�♦ta l}u�pnnurN� r fin nlai .9 � n.�_}- 4i�; /ff 1 E i�•`� +'af f n • � Mme.= .s.� @_:� _ss =���aT'`'� i ry • �ix ?��•r�'•.O /�``8. rr�4ap�;�y� f �►i, �- J f oh �, D 4711 ••y /� +J``�p`� rl ►+ tut0 `�yrtu '�'a a i f` L \iia '� +``c'�.`•� a- :uar +. a ryrr, is y, a Iti>♦•aN` . a ��tai..ta = naa�aa`� �\ + �� lxxrr tI i rnrl 11 �� i,titt• � as \\ rrt : %,f �a � J tlr =a�f�lr U. /a q,tltY�tl�:f� O + \p •�'�•'•��'ii 4,1 . ♦e tt3. +r ry7 Q r � gpil +ila r 1 1t • {: i y 2u�t � +tun m•` Z7 L rpaa l l:;i�rnN,' ;, , s�. •`:�'` a` �= = L It_ s► r r m ? o u� • �p N�HU xr , /� :a Z+A �ti-M-11 m tar aI as {t )r�s a �%.`l 'ri �s,. Nli . ' iiiilirf►;1 xC `S•' Ate` +t aUN, 6, I,� lili +f � -1- x a ♦z x U�iR�•',.4 i aN+ rr � ='ryil �;,. 'n "IJ` roan -_ ♦ . ,4ar°+ to tlaq att N -- J uuann 1 +11++ ♦ fI, t rr4n, at r, is = tlrf � +�4` "y „t �- +ryr�tia � a +a w unn .7N '' � t► f itq i'r %1�pa'�; ti 4L - i ” u71 iA a Qd +j i` J o • o I % � �'� °`� ?,`,''Jy°% t +� 7 � SO rrryrq : ?� ♦ Qry d+ Pa. a•• r � 4 � .•`: \` ad`s � ; , � � t lultrl f xi• 0, � � � � . r�?e `' •u..0 �•� x5xc � � xx °ar - � � � *. ``tf lr nun,N a�aifl�d `. afa _ tea ♦ ♦ '^ �� 771!•:.:: a � • ` + +�` �• �• ri+p • a�i� L � a 3 = � •r 1t♦ `' � • a %' :11111111::: _ � ' �q.��J i 0. ,� - •JAS. '•� n'N +� pa a$ C � ?iqV ♦ nl • oy � e ►� i alglin "ilfi� ,F 0 1,000 2,000 3,000 A S S O C I A T E 3 Feet G: \2014\ 14- 0127\GIS \AD93- I _Boundary.anxd APPENDIX C Special Tax Delinquency History A L B E R T A S S O C I A T E S Appendix C Special Tax Delinquency Details .. • of APN 00 .. Complaint 358321008 $ 182.71 $ 166.64 $ 349.35 358362007 $ 540.12 $ 540.12 358381006 $ 245.95 $ 245.95 358381010 $ 540.12 $ 540.12 363582003 $ 183.06 $ 183.06 363621007 $ 397.18 $ 397.18 363621015 $ 366.12 $ 366.12 363621025 $ 541.18 $ 541.18 363652031 $ 291.73 $ 292.03 $ 587.78 $ 1,171.54 363681016 $ 325.09 $ 325.09 363690026 $ 462.06 $ 464.18 $ 464.64 $ 459.52 $ 1,850.40 363730008 $ 462.06 $ 464.18 $ 232.32 $ 459.52 $ 211.69 $ 1,829.77 363841022 $ 344.49 $ 681.28 $ 627.06 $ 1,652.83 363861011 $ 211.69 $ 211.69 363862011 $ 229.76 $ 423.38 $ 653.14 363921048 $ 288.24 $ 288.24 Total $ 924.12 $ 1,220.09 $ 2,596.43 $ 2,815.04 $ 3,590.10 $ 11,145.78 Table of Contents Sections Section 1. District Profile 1 Section 2. Special Taxes 2 Section 3. Property Ownership 3 Section 4. Payment History 4 Section 5. Bond Funds 6 Section 6. Listed Events 8 Tables 9/1/2020 Table 2 -1. Special Tax Levy Zone 1 2 Table 2 -2. Special Tax Levy Zone 2 2 Table 3 -1. Property Breakdown by Development Status 3 Table 3 -2. Value -to -Lien Ratio Based on Assessed Value 3 Table 4 -1. Delinquency Summary 4 Appendices Appendix A. Debt Service Schedule 9 Appendix B. District Boundary Map 12 Appendix C. Special Tax Delinquency Summary 14 CUSIP Numbers The information herein for Community Facilities District No. 88 -3 2013 Series B of the City of Lake Elsinore, (the "District" or "CFD 88 -3 2013 B ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 9/1/2014 509632JA4 9/1/2017 509632JD8 9/1/2020 509632JG1 9/1/2015 509632JB2 9/1/2018 509632JE6 9/1/2016 509632JC0 9/1/2019 509632JF3 The information herein for Community Facilities District No. 88 -3 2013 Series B of the City of Lake Elsinore, (the "District" or "CFD 88 -3 2013 B ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 88 -3 2013 Series B West Lake Elsinore Project Description The District was formed to finance the purchase, construction, expansion or rehabilitation of public improvements needed to meet increased demand upon the City as a result of development within the boundaries of the District. Facilities financed include grading and construction of streets, curbs, sidewalks, street lighting, storm drainage, water, sewer and utility improvements, a fire station and park facilities. Location The District is generally located northwest of Highway 74 and south of Interstate 15. The District comprises over 1,000 acres and its boundaries are Machado Street to the east, Lakeshore Drive and Mountain Avenue to the north, Alvarado Street to the south and the City of Lake Elsinore (the "City ") boundaries to the west, in the North Shore area of the City. 2013 Series B Bonds 2013 Series B Subordinate Bonds (the "Bonds" or the "Subordinate Bonds ") in the amount of $4,215,000 were issued June 6, 2013 to redeem the portion of the 2003 Local Agency Revenue Refunding Bonds, Series H that were secured by the Community Facilities District 88 -3 2008 Subordinate Series Bonds. There are no remaining unissued Bonds authorized for the District. Additional Bonds In addition to the Subordinate Bonds, Local Agency Revenue Bonds were issued as 2008 Series A Senior Bonds (the "Senior Bonds ") for $22,295,000 by the Lake Elsinore Public Financing Authority for the Community Facilities District No. 88 -3 (West Lake Elsinore). The Subordinate Bonds are Subordinate Special Tax Bonds to the 2008 Series A Senior Bonds. Although not required by the Continuing Disclosure Certificate, this report contains some information for the 2008 Series A Senior Bonds. Annual Continuing Disclosure Report for Fiscal Year ending,hme 30, 2014 CFD No. 88 -3 (West Lake Elsinore), 2013 Series R 2. Special Taxes A special tax is levied each year to pay the principal and interest obligations on the Bonds of the District. The amount levied each year is determined by the special tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) special tax rates. The amount levied for the 2013 -2014 tax year was $3,424,039. The special tax rates applied for the 2013 -2014 tax year are: Table 2 -1 Special Tax Level Zone 1 Table 2 -2 Special Tax Level Zone 2 1- Developed Residential (less than 1,700 sq. ft.) Le 1"i AM 11 L Category k Category Parcels Land Use Category 1 - Developed Residential (less than 1,700 sq. ft.) $ 623,170.22 $ 1,264,322.37 463 2 - Developed Residential (1,700 - 2,299 sq. ft.) $ 1,292,412.16 $ 2,272,825.26 769 3 - Developed Residential (2,300 - 2,799 sq. ft.) $ 510,483.16 $ 791,697.31 253 4 - Developed Residential (2,800 or more sq. ft.) $ 14,121.72 $ 25,192.46 6 5 - Developed Attached Homes (n /a sq. ft.) $ 0.00 $ 0.00 0 6 - Non - Residential Property (per acre) $ 0.00 $ 0.00 0 7 - Undeveloped Property (per acre) $ 0.00 $ 0.00 0 Table 2 -2 Special Tax Level Zone 2 1- Developed Residential (less than 1,700 sq. ft.) $ 135,939.94 $ 179,334.59 101 2 - Developed Residential (1700 - 2299 sq. ft.) $ 430,243.84 $ 567,582.72 256 3 - Developed Residential (2300 - 2799 sq. ft.) $ 417,668.04 $ 550,994.67 207 4 - Developed Residential (2,800 or more sq. ft.) $ 0.00 $ 0.00 0 5 - Developed Attached Homes (n /a sq. ft.) $ 0.00 $ 0.00 0 6 - Non - Residential Property (per acre) $ 0.00 $ 0.00 0 7 - Undeveloped Property (per acre) $ 0.00 $ 0.00 0 Annual Continuing Disclosing Report.for riscal Year ending June 30, 2014 2 CFD No. 88 -3 (West Lake Elsinore), 2013 Series I3 3. Property Ownership The following tables present certain property ownership data and the development status of the District. Table 3 -1 Property Breakdown by Development Status Table 3 -2 Value -to -Lien Ratio Based on Assessed Values' and Overlapping Debt' Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. z Overlapping Debt information as of September 30, 2014. Annual Continuing Disclosure Report for Fiscal Year enclurg June 30, 2014 ( 3 CFD No. 88 -3 (West Lake Elsinore), 2013 Series B 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. There were a total of 14 parcels delinquent in the District for 2008 Series A and 2013 Series B Bonds as of June 30, 2014. Table 4 -1 Delinquency Summary Funds Available for the Payment of Scheduled Debt Service The current year's levy of $3,424,039 for CFD 88 -3, 2008 Series A and 2013 Series B is expected to generate sufficient revenue to cover the full year's overlapping debt without impacting the fully funded Reserve Fund. The District's debt service for Fiscal Year 2013 -2014 is $807,562.50 and $2,178,410 for 2013 Series B and 2008 Series A, respectively. Principal Amount of the Bonds Outstanding As of September 30, 2014 the Principal Amount of the Bonds Outstanding was $3,510,000. Foreclosure Covenant The District covenants with and for the benefit of the Owners of the District Bonds that the District will review the public records of the County of Riverside, California not later than July 1 of each year to determine the amount of Special Tax collected in the prior fiscal year; and with respect to individual delinquencies, if the District determines that any single property owner subject to the Special Tax is delinquent in the aggregate of $2,500 or more or if any single delinquent parcel represents more than 5% of the aggregate Special Taxes within the District then the District will cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) the District will cause judicial foreclosure proceedings to be filed in the superior court within 90 days of such determination against any property for which the Special Taxes remain delinquent. The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the District, so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the District Bonds under the Fiscal Agent Agreement. The property in the District is also subject to several overlapping liens. A default in the payment of Special Taxes in the District is also likely to result in a default in the payment of other overlapping liens. Since the liens of other overlapping special districts are on parity with the Special Taxes, the foreclosure of the lien of the Special Taxes will not extinguish the liens of the other overlapping special districts. As a result of the foregoing, in the event of a delinquency or nonpayment by the property owners of one or more Special Tax installments, there can be no assurance that there would be available to the District sufficient funds to pay when due the principal of, interest on and premium, if any, on the District Bonds. Annual Continuing Disclosure Report for Fiscal Year ending.hrne 30, 2014 ( 4 CFD No. 88 -3 (Des! Lake Elsinore), 20/3 Series Q 4. Payment History Collection and Foreclosure Actions The Mello -Roos Act Community Facilities Act of 1982 (the "Act ") provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD Administrator believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re- noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. There are currently no foreclosure actions pending in the District. Prepayment Status No prepayments were received for Fiscal Year 2013 -2014. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 15 CFD No. 88 -3 (West Lake Elsinore), 2013 Series B 5. Bond Funds Bond Fund When received, the Special Taxes are required to be deposited with the Fiscal Agent into the Special Tax Fund (exclusive of Redemption Revenues received which shall be deposited into the Redemption Fund). After depositing an amount of Special Tax Revenues budgeted for Administrative Expenses to the Administrative Expense Fund, the Fiscal Agent shall withdraw from the Special Tax Fund and transfer to the Bond Fund as follows: (i) the Interest Account of the Bond Fund (ii) the Principal Account of the Bond Fund On September 2 of each year, the Fiscal Agent shall transfer any amounts remaining in the Special Tax Fund to the Residual Fund. Special Taxes, if any deposited into the Residual Fund shall be applied for the following purposes in the following order of priority: (i) The Delinquency Management Fund, if required (ii) The Administrative Expense Fund (iii) The Special Mandatory Redemption Account of the Redemption Fund Notwithstanding the foregoing, on any September 1, in the event amounts deposited to the Principal Account (including any mandatory sinking payments) are insufficient to pay in full the principal payments then coming due on the Senior Bonds, an amount up to the amount of interest then coming due on the Subordinate Bonds shall be transferred from the Interest Account to the Principal Account to be used for payment of the principal (including any mandatory sinking payments) on the Senior Bonds. Amounts in the Residual Fund are not pledged as security for the Bonds. Reserve Account The Reserve Fund must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount equal to the lesser of (i) 10% of the proceeds of the Bonds (within the meaning of section 148 of the Code), (ii) Maximum Annual Debt Service on the Outstanding Bonds, or (iii) 125% of average Annual Debt Service on the Outstanding Bonds, provided, however, the Reserve Requirement on any calculation date shall not be greater than the Reserve Requirement amount on the closing date. Amounts in the Reserve Account will be used to pay debt service on the Bonds to the extent other moneys are not available (including amounts in the Cash Flow Management Fund). Amounts in the Reserve Account in excess of the Reserve Requirement will be deposited into the revenue Fund. As of June 30, 2014, the balance in the Reserve Fund was $421,514.40 and the Reserve Requirement was $421,500. Cash Flow Management Fund In addition to the method described above, the Cash Flow Management Fund may also be funded by loans from any available surplus revenues from other local agency revenue bonds to replenish the Cash Flow Management Fund to its requirement. Amounts are applied for the following purposes in the following order of priority: (i) Pay debt service on the Bonds to the extent Revenues are insufficient prior to any draw on the Reserve Account. (ii) Repayment of loans from other local agency revenue bonds. (iii) Transfer and treat as a loan, any amounts necessary to prevent a shortfall to pay debt service on other local agency revenue bonds. (iv) The Redemption Fund. (v) On or after September 2 of each year, all amounts in excess of the Cash Flow Management Fund Requirement will be transferred to the Delinquency Management Fund. As of June 30, 2014, the balance in the Cash Flow Management Fund was $121,147.68 and the requirement was $116,019. Annual Continuing Disclosure Report for Fiscal Year ending Jane 30. 2014 CFD No. 88 -3 ('West Lake Elsinore), 2013 Series B 5. Bond Funds Pledge of Special Tax Revenues The Senior Bonds are secured by a first pledge and the Subordinate Bonds are secured by a second and subordinate pledge of all of the Special Tax Revenue and Redemption Revenues and all moneys deposited in the Bond Fund and, until disbursed, as provided in the Fiscal Agent Agreement (the "Agreement "), in the Special Tax Fund, the Redemption Fund, and the Delinquency Management Fund. The Special Tax Revenues and all moneys deposited into said funds are dedicated to the payment of the principal of, and interest and any premium on, the Senior Bonds on a senior basis and the Subordinate Bonds on a subordinate basis. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Continuing Disclosure Report for Fiscal Year ending June 30. 2014 CFD No. 88 -3 (West Lake Elsinore), 2013 Series B 6. Listed Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. principal or interest payment delinquencies; Not Applicable 2. non - payment related defaults, if material; Not Applicable 3. modifications to the rights of the Bond Owner, material; Not Applicable 4. optional, contingent, or unscheduled calls, if material, and tender offers; Not Applicable 5. defeasances; Not Applicable 6. rating changes; Not Applicable 7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final Not Applicable determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 9. unscheduled draws on the credit enhancements reflecting financial difficulties; Not Applicable 10. substitution of the credit or liquidity providers or their failure to perform; Not Applicable 11. release, substitution or sale of property securing repayment of the Bonds, if material; Not Applicable 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority, which shall Not Applicable occur as described below; 13. appointment of a successor or additional trustee or the change of name of a trustee, if Not Applicable material, or; 14. the consummation of a merger, consolidation, or acquisition involving the Authority or the Not Applicable sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entity into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 201 4 ( 8 CFD No. 88 -3 (West Lake Elsinore), 2013 Series B APPENDIX A Debt Service Schedule A L B E R T A S S O C I A T E S Appendix A Debt Service Schedule 20138 Debt Service Schedule Date 09/01/2013 Coupon Rate Principal Interest $ 14,224.80 Annual Interest $ 14,224.80 . . Service $ 14,224.80 Balance $ 4,215,000 03/01/2014 $ 51,281.25 $ 4,215,000 09/01/2014 2.000% $ 705,000.00 $ 51,281.25 $ 102,562.50 $ 807,562.50 $ 3,510,000 03/01/2015 $ 44,231.25 $ 3,510,000 09/01/2015 2.000% $ 685,000.00 $ 44,231.25 $ 88,462.50 $ 773,462.50 $ 2,825,000 03/01/2016 $ 37,381.25 $ 2,825,000 09/01/2016 2.000% $ 650,000.00 $ 37,381.25 $ 74,762.50 $ 724,762.50 $ 2,175,000 03/01/2017 $ 30,881.25 $ 2,175,000 09/01/2017 2.500% $ 620,000.00 $ 30,881.25 $ 61,762.50 $ 681,762.50 $ 1,555,000 03/01/2018 $ 23,131.25 $ 1,555,000 09/01/2018 2.750% $ 580,000.00 $ 23,131.25 $ 46,262.50 $ 626,262.50 $ 975,000 03/01/2019 $ 15,156.25 $ 975,000 09/01/2019 3.000% $ 550,000.00 $ 15,156.25 $ 30,312.50 $ 580,312.50 $ 425,000 03 O1 2020 $ 6,906.25 $ 425,000 09 01/2020 3.250% $ 425,000.00 $ 6,906.25 $ 13,812.50 $ 438,812.50 $ 0 Total $ 4,215,000.00 $ 432,162.30 $ 432,162.30 $ 4,647,162.30 Appendix A Debt Service Schedule 2008A Debt Service Schedule Coupon Date Rate Principal 09/01/2008 4.000% $ 940,000.00 $ 545,884.89 $ 545,884.89 D., $ 1,485,884.89 $ 21,165,000 03/01/2009 4.000% $ 415,840.00 $ 21,165,000 09/01/2009 3.500% $ 1,825,000.00 $ 415,840.00 $ 831,680.00 $ 2,656,680.00 $ 19,340,000 03/01/2010 3.500% $ 379,855.00 $ 19,340,000 09/01/2010 3.500% $ 1,255,000.00 $ 379,855.00 $ 759,710.00 $ 2,014,710.00 $ 18,085,000 03/01/2011 3.500% $ 357,892.50 $ 18,085,000 09/01/2011 3.500% $ 1,340,000.00 $ 357,892.50 $ 715,785.00 $ 2,055,785.00 $ 16,745,000 01/2012 3.500% $ 334,442.50 $ 16,745,000 01/2012 j03/01/2013 3.500% $ 1,425,000.00 $ 334,442.50 $ 668,885.00 $ 2,093,885.00 $ 15,320,000 4.000% $ 309,505.00 $ 15,320,000 01/2013 4.000% $ 1,515,000.00 $ 309,505.00 $ 619,010.00 $ 2,134,010.00 $ 13,805,000 03/01/2014 4.000% $ 279,205.00 $ 13,805,000 09/01/2014 4.000% $ 1,620,000.00 $ 279,205.00 $ 558,410.00 $ 2,178,410.00 $ 12,185,000 03/01/2015 4.000% $ 246,805.00 $ 12,185,000 09/01/2015 4.000% $ 1,720,000.00 $ 246,805.00 $ 493,610.00 $ 2,213,610.00 $ 10,465,000 03/01/2016 4.000% $ 212,405.00 $ 10,465,000 09/01/2016 4.000% $ 1,830,000.00 $ 212,405.00 $ 424,810.00 $ 2,254,810.00 $ 8,635,000 03/01/2017 4.000% $ 175,805.00 $ 8,635,000 09/01/2017 4.000% $ 1,945,000.00 $ 175,805.00 $ 351,610.00 $ 2,296,610.00 $ 6,690,000 03/01/2018 4.300% $ 136,905.00 $ 6,690,000 09/01/2018 4.300% $ 2,070,000.00 $ 136,905.00 $ 273,810.00 $ 2,343,810.00 $ 4,620,000 03/01/2019 4.000% $ 92,400.00 $ 4,620,000 09/01/2019 4.000% $ 2,200,000.00 $ 92,400.00 $ 184,800.00 $ 2,384,800.00 $ 2,420,000 03/01/2020 4.000% $ 48,400.00 $ 2,420,000 09/01/2020 4.000% $ 2,420,000.00 $ 48,400.00 $ 96,800.00 $ 2,516,800.00 $ 0 Total $ 22,105,000.00 $ 6,524,804.89 $ 6,524,804.89 1 $ 28,629,804.89 APPENDIX B District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 88 -3 (WEST LAKE ELSINORE) i � Ill�pi •�ri o S. s ►;.1 III/ 1 1 L =- � �u1 nu ree •' � _ • /1 � e +ice � •• .•` �ese : � e ' e = ` � e1 ♦ i� " !r � , h1a •,`�� • �� 1' �l �% � ` .'�. S� �� '71 s r ►e�e� , � O �� rr �.�7.' rr w� wr r L e !\ � �s C►Q ►� � : r e � tit i .O � rS �r �� .0 S� .. ys► .ii rr �. r,,. �' rr 'i - r rrrrl ►� *ee ��i� 'f I� � � r� �r w� �w 'sw �� �� - s �= rr rr rr �♦ � {� o ♦ � 111 �Im .run1lunuu► ,� * � ��1 �� � - t !!!iii.► 4i i sp !!!r!m i 111p1 �,, I e ■ � � �� HIM =919 ►• ` iiliii iiiriij�'; n1r. �. ► et�� ngll� r rr `: �(�f 11111 111 ;G �j � 111 {I A � �e�� ♦ man memo IID C� ,/14It 111 /fie �O �� .e i MAN X III so] r r 0 500 1,000 1,500 AS 5 0 C I A T E 5 Feet G:\20I4\I4-0I27\GlS\CFD88-3 _Boundary. mxd APPENDIX C Special Tax Delinquency Summary A L B E R T A S S O C I A T E S Appendix C Special Tax Delinquency Details Total Date Foreclosure Results of Foreclosure Sale, 2013 Delinquency Complaint 387492020 $ 1,680.64 $ 1,680.64 387512017 $ 2,017.72 $ 2,017.72 389062015 $ 939.60 $ 939.60 389074016 $ 1,879.20 $ 1,680.64 $ 3,559.84 389471005 $ 1,879.20 $ 1,680.64 $ 3,559.84 389533020 $ 2,017.72 $ 2,017.72 389582020 $ 1,879.20 $ 1,680.64 $ 3,559.84 391572014 $ 840.32 $ 840.32 391582004 $ 939.60 $ 1,680.64 $ 2,620.24 391730015 $ 840.32 $ 840.32 391752012 $ 1,680.64 $ 1,680.64 391842007 $ 2,017.72 $ 2,017.72 391842009 $ 1,008.86 $ 1,008.86 391850006 $ 1,008.86 $ 1,008.86 Total $ 7,516.80 $ 19,835.36 $ 27,352.16 A L B E R T A. A S S O C I A T E S Corporate Headquarters 3788 McCray Street Riverside, CA 92506 951.686.1070 Palm Desert Office 36 -951 Cook Street 9103 Palm Desert, CA 92211 760.568.5005 Murrieta Office 41391 Kalmia Street 9320 Murrieta, CA 92562 951.686,1070 I -�, 1, . "\ I I ih � - . 1\ I" Table of Contents Sections Tables Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. District Profile Special Taxes Property Ownership Payment History_ Bond Funds Significant Events- 1 2 3 4 6 7 Table 2 -1. Special Tax Levy 2 Table 3 -1. Property Breakdown by Development Status 3 Table 3 -2. Value -to -Lien Ratio Based on Assessed Value 3 Table 4 -1. Delinquency Summary 4 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map Appendix C. Special Tax Delinquency Details CUSIP Numbers s 10 12 The information herein for Community Facilities District No. 2005 -5 of the City of Lake Elsinore, (the "District" or "CFD 2005 -5 ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com CUSIP Year CUSIP 9/1/2013 4LIM I 509632FWO 9/1/2017 CUSIP 509632GA7 Year 9/1/2021 509632GE9 9/1/2025 509632GJ8 9/1/2014 509632FX8 9/1/2018 509632G85 9/1/2022 509632GF6 9/1/2038 509632GK5 9/1/2015 509632FY6 9/1/2019 509632GC3 9/1/2023 509632GG4 9/1/2016 509632FZ3 9/1/2020 509632GD1 9/1/2024 509632GH2 s 10 12 The information herein for Community Facilities District No. 2005 -5 of the City of Lake Elsinore, (the "District" or "CFD 2005 -5 ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 2005 -5 Villages at Wasson Canyon Project Description The District was formed in August, 2005 for the purpose of acquiring or constructing public improvements needed to meet increased demand upon the City as a result of development within the boundaries of the District, including streets, streetscape, storm drains, City fees, and fees of the Elsinore Valley Municipal Water District. The development includes 190 residential units at build -out. Location The District is located in an area known as Rosetta Hills, which is southeast of Highway 74 and northeast of Interstate 15, and generally encompasses the residential community known as the "Villages at Wasson Canyon ". 2012 Series A Bonds The 2012 Series A Bonds (the "Bonds ") in the amount of $3,450,000 were issued July 17, 2012, with interest rates ranging from 1.500% to 5.250 %. Interest is payable semi - annually on March 1 and September 1. The date for the final maturity of the Bonds is September 1, 2038. The principal amount of the Bonds Outstanding as of September 30, 2014 was $3,385,000. A portion of the Bonds, along with other funds, were issued to redeem the Local Agency Revenue Bonds for the Villages at Wasson Canyon, 2008 Series B ( "the 2008 Series B Bonds ") in the principal amount of $3,265,000, all of which remained outstanding at the time of redemption. The Bonds were also issued to fund the Reserve Account and to pay the expenses in connection with the issuance of the Bonds. There are no remaining unissued Bonds authorized for the District. Additional Special Taxes There are two types of special taxes that are levied for this District. The first is the Special Tax for Services, which is set at the amount of $283.54 per dwelling unit in Fiscal Year 2013 -2014, increasing by 2% each Fiscal Year thereafter. The second is the Special Tax for Facilities, which is used to pay the Debt Service on the District Bonds, Administrative Expenses, and replenishment of the Reserve Account (if necessary). As used in this Disclosure, the terms "Special Tax" and "Special Taxes" refer exclusively to the Special Tax for Facilities, and all references to the Special Tax Requirement, the Special Tax rates, the Maximum Special Taxes, and the apportionment of the Special Tax shall be a reference to the Special Tax for Facilities only. Special Tax Requirement The District is required to annually determine the Special Tax Requirement for the District and apportion such amount subject to the Maximum Special Tax, until the Special Taxes equal the Special Tax Requirement for the District. Generally, the Special Tax Requirement is the amount necessary to pay Debt Service on the District Bonds, reasonably anticipated Delinquencies based on the Delinquency Rate for the previous Fiscal Year, and the Administrative Expenses of the District. flilnilal Continuing Disclosure Report for Fiscal Year ending.fime 30, 2014 CFD No. 2005 -5 (Villages at Wasson Canyon), 2012 Series A 2. Special Taxes A special tax is levied each year to pay the principal and interest obligations on the Bonds of the District. The amount levied each year is determined by the special tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) special tax rates. The amount levied for the 2013 -2014 tax year was $243,861. The special tax rates applied for the 2013 -2014 tax year are: Table 2 -1 Special Tax Levy 1- Developed Residential (3,600 or more sq. ft.) $ 39,860.80 $ 1,700.43 28 2 - Developed Residential (3,475 - 3,599 sq. ft.) $ 12,720.78 $ 1,688.23 9 3 - Developed Residential (3,350 - 3,474 sq. ft.) $ 49,502.30 $ 1,598.03 37 4 - Developed Residential (3,225 - 3,349 sq. ft.) $ 0.00 $ 1,550.70 0 5 - Developed Residential (3,100 - 3,224 sq. ft.) $ 0.00 $ 1,530.22 0 6 - Developed Residential (less than 3,100 sq. ft.) $ 141,777.52 $ 1,459.85 116 7 - Non - Residential Property (per acre) $ 0.00 $ 9,715.52 0 8 - Approved Property (per acre) $ 0.00 $ 9,715.52 0 9 - Undeveloped Property (per acre) $ 0.00 $ 9,715.52 0 Animal Continaitig Disclosiire Report for Fiscal Year ending ✓lisle 30, 2014 2 CFD No. 2005 -5 (Villages al Wasson Ccmvon), 2012 Series A 3. Property Ownership The following tables present certain property ownership data and the development status of the District. Table 3 -1 Property Breakdown by Development Status There are no property owners in the District responsible for greater than 5% of the total levy. Table 3 -2 Value -to -Lien Ratio Based on Assessed Values' Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. Annual Continuing Disclosure Repori for Fiscal Year ending June 30, 2014 CFD No. 2005 -5 (Villages at Wasson Canyon), 2012 Series A 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 4 -1 Delinquency Summary Fiscal Levied I Delinquent Delinquency Rate Year Parcels Amount Parcels Amount (at Fiscal Year End) 00 0.00% •..0• •� $243,861.40 Funds Available for the Payment of Scheduled Debt Service The current year's levy of $243,861 is expected to generate sufficient revenue to cover the full year's debt service of $203,531, without impacting the fully funded Reserve Fund. Prepayments There have been no prepayments of the Special Tax for the prior Fiscal Year. Foreclosure Covenant The District has covenanted for the benefit of the owners of the Bonds that the District will review the records of the County of Riverside, California, in connection with the collection of the Special Tax not later than July 1 of each year to determine the amount of Special Tax collected in the prior fiscal year; and, with respect to individual delinquencies, if the District determines that any single property owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $1,000 or more or that as to any single parcel the delinquent Special Taxes represent more than 5% of the aggregate Special Taxes within the District, then the District will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) the District will cause judicial foreclosure proceedings to be filed in the superior court within 90 days of such determination against any property for which the Special Taxes remain delinquent. The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in the District so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds as such payments become due and payable. The property in the District is also subject to several overlapping liens. A default in the payment of Special Taxes in the District is also likely to result in a default of the other overlapping liens. Since the overlapping liens are on a parity with the Special Taxes, the foreclosure of the lien of the Special Taxes will not extinguish the lien of the other overlapping special districts. As a result of the foregoing, in the event of a delinquency or nonpayment by the property owners of one or more Special Tax installments, there can be no assurance that there would be available to the District sufficient funds to pay when due the principal of, interest on and premium, if any, on the District Bonds. Animal Continuing Disclosure Report,(or Fiscal Year endil�g.hote 30, 2014 4 CFD No. 2005 -5 (Villages at Wasson Canyon), 2012 Series A 4. Payment History Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD Administrator believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re- noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. There are no foreclosure actions at this time. Annual Continuing Disclosure Report for Fiscal Year enrling.lnne 30, 2014 CFD No. 2005 -5 (Villages at Wasson Canyon), 2012 Series A 5. Bond Funds Special Tax Fund When received, the Special Taxes are required to be deposited with the Fiscal Agent into the Special Tax Fund (exclusive of Redemption Revenues received, which shall be deposited into the Redemption Fund). The Fiscal Agent shall transfer amounts on deposit in the Special Tax Fund to the following accounts and funds, in order of priority: (1) the Interest Account; (2) the Principal Account; (3) the Delinquency Management Fund; (4) the Administrative Expense Fund; (5) the Redemption Account; Reserve Fund The Reserve Fund must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount equal to the least of (a) 10% of the total original principal amount of the Bonds, (b) Maximum Annual Debt Service on the Outstanding Bonds, or (c) 125% of average Annual Debt Service on the Outstanding Bonds. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the appropriate account of the Bond Fund. The Reserve Fund will then be replenished by increasing the next year's special tax levy to the extent permitted by law. As of June 30, 2014 the balance in the Reserve Fund was $272,895.90 and the Reserve Requirement was $272,887.50. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Continuing Disclosure Report for Fiscal Year ending Jane 30, 2014 CFD No. 2005 -5 (Villages at Wasson Cannon), 2012 Series A 6. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. principal or interest payment delinquencies; Not Applicable 2. non - payment related defaults, if material; Not Applicable 3. modifications to the rights of the Bondholders, if material; Not Applicable 4. optional, contingent or unscheduled calls, if material, and tender offers; 5. defeasances; 6. rating changes; 7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; 9. unscheduled draws on the credit enhancements reflecting financial difficulties; 10. substitution of the credit or liquidity providers or their failure to perform; 11. release, substitution or sale of property securing repayment of the Bonds, if material; 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority, which shall occur as described below; 13. appointment of a successor or additional trustee or the change of name of a trustee, if material, or; 14. the consummation of a merger, consolidation, or acquisition involving the Authority or the sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Continuing Disclosure Report .for Fiscal Year ending.hone 30, 2014 CFD No. 2005 -5 (Villages at Wasson Canyon), 2012 Series A 7 APPENDIX A Debt Service Schedule A L B E R T A S S O C I A T E S . . . 1 _ -a 1 - ;,,it1 1 Appendix A Debt Service Schedule 0 Coupon '' $ 96,067.27 AnnualDebt $ 3,450,000 1.500% $ 25,000.00 $ 81,953.13 $ 178,020.40 $ 203,020.40 $ 3,425,000 03/01/2014 $ 81,765.63 $ 3,425,000 09/01/2014 2.000% $ 40,000.00 $ 81,765.63 $ 163,531.25 $ 203,531.25 $ 3,385,000 03/01/2015 $ 81,365.63 $ 3,385,000 09/01/2015 2.250% $ 45,000.00 $ 81,365.63 $ 162,731.25 $ 207,731.25 $ 3,340,000 03/01/2016 - $ 80,859.38 $ 3,340,000 09/01/2016 2.500% $ 55,000.00 $ 80,859.38 $ 161,718.75 $ 216,718.75 $ 3,285,000 03/01/2017 $ 80,171.88 $ 3,285,000 09/01/2017 2.750% $ 60,000.00 $ 80,171.88 $ 160,343.75 $ 220,343.75 $ 3,225,000 03/01/2018 $ 79,346.88 $ 3,225,000 09/01/2018 3.000% $ 65,000.00 $ 79,346.88 $ 158,693.75 $ 223,693.75 $ 3,160,000 03/01/2019 $ 78,371.88 $ 3,160,000 09/01/2019 3.375% $ 75,000.00 $ 78,371.88 $ 156,743.75 $ 231,743.75 $ 3,085,000 03/01/2020 $ 77,106.25 $ 3,085,000 09/01/2020 3.625% $ 80,000.00 $ 77,106.25 $ 154,212.50 $ 234,212.50 $ 3,005,000 03/01/2021 $ 75,656.25 $ 3,005,000 09/01/2021 3.875% $ 85,000.00 $ 75,656.25 $ 151,312.50 $ 236,312.50 $ 2,920,000 03/01/2022 $ 74,009.38 $ 2,920,000 09/01/2022 4.000% $ 95,000.00 $ 74,009.38 $ 148,018.75 $ 243,018.75 $ 2,825,000 03/01/2023 $ 72,109.38 $ 2,825,000 09/01/2023 4.000% $ 105,000.00 $ 72,109.38 $ 144,218.75 $ 249,218.75 $ 2,720,000 03/01/2024 $ 70,009.38 $ 2,720,000 09/01/2024 4.000% $ 110,000.00 $ 70,009.38 $ 140,018.75 $ 250,018.75 $ 2,610,000 03/01/2025 $ 67,809.38 $ 2,610,000 09/01/2025 4.125% $ 125,000.00 $ 67,809.38 $ 135,618.75 $ 260,618.75 $ 2,485,000 03/01/2026 - $65,231.25 $ 2,485,000 09/01/2026 5.250% $ 135,000.00 $ 65,231.25 $ 130,462.50 $ 265,462.50 $ 2,350,000 03/01/2027 $ 61,687.50 $ 2,350,000 09/01/2027 5.250% $ 145,000.00 $ 61,687.50 $ 123,375.00 $ 268,375.00 $ 2,205,000 03/01/2028 $ 57,881.25 $ 2,205,000 09/01/2028 5.250% $ 150,000.00 $ 57,881.25 $ 115,762.50 $ 265,762.50 $ 2,055,000 03/01/2029 $ 53,943.75 $ 2,055,000 09/01/2029 5.250% $ 165,000.00 $ 53,943.75 $ 107,887.50 $ 272,887.50 $ 1,890,000 03/01/2030 $ 49,612.50 $ 1,890;000 09/01/2030 5.250% $ 170,000.00 $ 49,612.50 $ 99,225.00 $ 269,225.00 $ 1,720,000 03/01/2031 $ 45,150.00 $ 1,720,000 09/01/2031 5.250% $ 180,000.00 $ 45,150.00 $ 90,300.00 $ 270,300.00 $ 1,540,000 03/01/2032 $ 40,425.00 $ 1,540,000 09/01/2032 5.250% $ 185,000.00 $ 40,425.00 $ 80,850.00 $ 265,850.00 $ 1,355,000 03/01/2033 $ 35,568.75 $ 1,355,000 09/01/2033 5.2509/. $ 195,000.00 $ 35,568.75 $ 71,137.50 $ 266,137.50 $ 1,160,000 03/01/2034 - $30,450.00 $ 1,160,000 09/01/2034 5.250% $ 210,000.00 $ 30,450.00 $ 60,900.00 $ 270,900.00 $ 950,000 03/01/2035 $ 24,937.50 $ 950,000 09/01/2035 5.250% $ 220,000.00 $ 24,937.50 $ 49,875.00 $ 269,875.00 $ 730,000 03/01/2036 $ 19,162.50 $ 730,000 09/01/2036 5.250% $ 230,000.00 $ 19,162.50 $ 38,325.00 $ 268,325.00 $ 500,000 03/01/2037 $ 13,125.00 $ 500,000 09/01/2037 5.250% $ 245,000.00 $ 13,125.00 $ 26,250.00 1 $ 271,250.00 $ 255,000 03/01/2038 $ 6,693.75 $ 255,000 09/01/2038 5.250% $ 255,000.00 $ 6,693.75 $ 13,387.50 $ 268,387.50 $ 0 Total $ 3,450,000.00 $ 3,022,920.40 $ 3,022,920.40 $ 6,472,920.40 APPENDIX B District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 2005 -5 (VILLAGES AT WASSON CANYON) 1\;A�., CA - - r, � r •. R` DR { \{ z ,Y C_. i.. I �, ...• \ J c > CRIMSON ~PILLAR L � o : pR J -..._.._ .................. ..._. ........ _ ............. ._ _ ..... �1......_ 3RDST---- . ............................... e a! Qom 9 j 7 Z r Lu T z i l o .I iC�P Z j L...J_. PP w �.__..... —_.. 1......._.__� -r' w .. �TFR� JAUXyq n� C CARNE - -............. __. ,_....._._ .... i i I LIAM } nnR a 1 0 200 400 600 A S 9 U C I A T C S y Feet G: \2014\ 14- 0127 \GI S \CFD2005 -5_B oun dai y. nud APPENDIX C Special Tax Delinquency Details A L B E R T A S S O C I A T E S Appendix C Special Tax Delinquency Details Table of Contents Sections Tables Section 1. District Profile 1 Section 2. Property Ownership 2 Section 3. Payment History 3 Section 4. Bond Funds 4 Section 5. Significant Events 5 Table 2 -1. Property Breakdown by Development Status 2 Table 2 -2. Value -to -Lien Ratio Based on Assessed Value 2 Table 3 -1. Delinquency Summary 3 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map Appendix C. Special Tax Delinquency Details CUSIP Numbers 10/1/2024 509634A 6 9 11 The information herein for Community Facilities District No. 90 -2 (Tuscany Hills Public Improvements), Series 2007 A of the City of Lake Elsinore, (the "District" or "CFD 90 -2 2007A ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 90 -2 2007 Series A Tuscany Hills Public Improvements Project Description The District was formed to finance the purchase, construction, expansion or rehabilitation of public improvements needed to meet increased demand on the City as a result of development within the boundaries of the District. Improvements within and in the vicinity of the District include grading for public streets, public access roads, and public building pads; street improvements consisting of curbs, gutters, sidewalks, lawns, street lights, storm drains, and utilities in the public streets; the domestic water system consisting of three reservoirs, booster pumping stations, pressure reducing stations, and the distribution mains and appurtenances in the public streets; and a sanitary sewer system consisting of gravity sewer, manholes, lift stations, force mains, and appurtenances in public streets and public easements. The District encompasses approximately 1,010 acres. There are three groups of properties within the master plan consisting of approximately 1,020 Single Family Dwelling units, nine Undeveloped lots, and 282 Raw acres. Location The District is located within the Rancho Laguna Redevelopment Project Area No. II in the City of Lake Elsinore (the "City "). It is generally located adjacent to the northeastern limits of the City. Summerhill Drive serves as the main access from the southwest. The development is bounded on the north by Greenwald Street and is contiguous to the western boundary of the Canyon Lake community. 2007 Series A Bonds The 2007 Series A Special Tax Parity Bonds (the "Bonds ") in the amount of $7,340,000 were issued March 8, 2007 by the Redevelopment Agency of the City of Lake Elsinore. Interest is payable semi - annually on April 1 and October 1. The date for the final maturity of the Bonds is October 1, 2024. The Principal Amount of the Bonds Outstanding as of September 30, 2014 is $7,340,000. The proceeds of the Bonds, in part, were used to refund and defease all of the then outstanding 1999 Parity Bonds and were issued on a parity basis with the 2002 Series A Bonds. There are no remaining unissued Bonds authorized for the District. Additional Bonds In addition to the 2007 Series A Bonds, Special Tax Parity Bonds (the "Parity Series Bonds ") were issued as 2002 Series A Bonds for $14,470,000 by the Redevelopment Agency of the City of Lake Elsinore Community Facilities District No. 90 -2 (Tuscany Hills Public Improvements). Although not required by the Continuing Disclosure Certificate, this report contains some information for the Parity Series Bonds. There are no remaining unissued Bonds authorized for the District. Annaal Continiiiiig Disclosure Report for Fiscal Year ending Jame 30, 2014 CFD No. 90 -2 (Tuscany Hills), 2007 Series A 2. Property Ownership The following tables present certain property ownership data and the development status of the District. Table 2 -1 Property Breakdown by Development Status There are no property owners in the District responsible for greater than 5% of the total levy. Table 2 -2 Value -to -Lien Ratio Based on Assessed Values' and Principal Amount of Bonds Outstanding' Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. 2 Principal Amount of Bonds Outstanding is calculated in proportion to the Assigned Special Tax for FY 2014 -2015. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 CFD No. 90 -2 (Tuscany Hills). 2007 Series A 3. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 3 -1 Delinquency Summary Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,898,157.34 for the entire District (2002 Series A and 2007 Series A) is expected to generate sufficient revenue to cover the full year's debt service of $1,774,625, without impacting the fully funded Reserve Fund. Foreclosure Covenant The District covenants with and for the benefit of the Bond Owners that it will commence appropriate judicial foreclosure proceedings against parcels with unpaid Special Tax delinquencies within 150 days of the date they are due. Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Taxes installment. There are no foreclosure actions at this time. Annual Coniifuiing Disclosure Reporl for l -fiscal Year ending June 30, 2014 3 CFD No. 90 -2 (Tuscany Hills), 2007 Series A Fiscal Year Parcels Levied Amount Delinquent 2009 1,021 $1,864,294.64 Parcels 0 Amount $0.00 (at Fiscal Year End) 0.00% 2010 1,021 $1,812,615.72 0 $0.00 0.00% 2011 1,021 $1,812,615.72 0 $0.00 0.00% 2012 1,021 $1,858,878.62 0 $0.00 0.00% 2013 1,020 $1,898,157.34 7 $8,824.66 0.46% Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,898,157.34 for the entire District (2002 Series A and 2007 Series A) is expected to generate sufficient revenue to cover the full year's debt service of $1,774,625, without impacting the fully funded Reserve Fund. Foreclosure Covenant The District covenants with and for the benefit of the Bond Owners that it will commence appropriate judicial foreclosure proceedings against parcels with unpaid Special Tax delinquencies within 150 days of the date they are due. Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Taxes installment. There are no foreclosure actions at this time. Annual Coniifuiing Disclosure Reporl for l -fiscal Year ending June 30, 2014 3 CFD No. 90 -2 (Tuscany Hills), 2007 Series A 4. Bond Funds Reserve Fund The outstanding principal and the balance in the Reserve Fund (along with a statement of the Reserve Requirement) as of September 30 next preceding the Annual Report date, which is October 31, 2014, is covered by a Debt Service Reserve Insurance Policy. Concurrently with the issuance of the Bonds, Financial Security Assurance Inc. ( "Financial Security ") issued its Municipal Bond Insurance Policy for the Bonds (the "Policy ") and its Reserve Insurance Policy (the "Reserve Policy "). The Policy guarantees the scheduled payment of principal and of interest on the Bonds when due as set forth in the form of the policy included as Appendix E to the Official Statement of the Bonds. The Reserve Policy guarantees the funding of amounts required to be transferred from the Reserve Fund. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. A171771al Continuing Disclosure Report for Fiscal Year ending Jame 30, 2014 4 CFD No. 90 -2 (T:iscany Hills), 2007 Series A 5. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. Principal and interest payment delinquencies; Not Applicable 2. non - payment related defaults; 3. modifications to the rights of the Bond Owner; 4. optional, contingent or unscheduled calls; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events adversely affecting the tax - exempt status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; 9. unscheduled draws on credit enhancements reflecting financial difficulties; 10. substitution of credit or liquidity providers, or their failure to perform; and 11. release, substitution or sale of property securing repayment of the Bonds. 12. Bankruptcy, insolvency, receivership or similar event of the obligated person. 13. Merger, consolidation, or acquisition of the obligated person, if material. 14. Appointment of a successor or additional trustee, or the change of name of a trustee, if material. Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Material Events (12) through (14) have been added pursuant to amendments to the continuing disclosure services of the Municipal Securities Rulemaking Board Electronic Municipal Market Access ( "EMMA ") system by the Securities and Exchange Commission to Securities Exchange Act Rule 15c2 -12 effective December 1, 2010. Annual Continuing Disclosure Report for Fiscal Year ending June 30. 2014 C /'D No. 90 -2 (Tuscany Hills), 2007 Series A A APPENDIX A Debt Service Schedule A L 6 E R T A S S 0 C I A T E S Appendix A Debt Service Schedule 2007 Series A Debt Service Schedule Date 10/01/2007 Coupon Rate Principal Interest $ 173,407.50 AnnualDebt Annual Interest S1 $ 173,407.50 $ 173,407.50 Balance $ 7,340,000 04/01/2008 $ 165,150.00 $ 7,340,000 10/01/2008 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2009 $ 165,150.00 $ 7,340,000 10/01/2009 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2010 $ 165,150.00 $ 7,340,000 10/01/2010 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2011 $ 165,150.00 $ 7,340,000 10/01/2011 $ 165,150.00 $ 330,300.00 $ 330,300.00 $7,340,000 04/01/2012 $ 165,150.00 $ 7,340,000 10/01/2012 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2013 $ 165,150.00 $ 7,340,000 10/01/2013 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2014 $ 165,150.00 $ 7,340,000 10/01/2014 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2015 $ 165,150.00 $ 7,340,000 10/01/2015 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2016 $ 165,150.00 $ 7,340,000 10/01/2016 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2017 $ 165,150.00 $ 7,340,000 10/01/2017 4.500% $ 780,000 $ 165,150.00 $ 330,300.00 $ 1,110,300.00 $ 6,560,000 04/01/2018 $ 147,600.00 $ 6,560,000 10/01/2018 4.500% $ 815,000 $ 147,600.00 $ 295,200.00 $ 1,110,200.00 $ 5,745,000 04/01/2019 $ 129,262.50 $ 5,745,000 10/01/2019 4.500% $ 855,000 $ 129,262.50 $ 258,525.00 $1,113,525.00 $ 4,890,000 04/01/2020 $ 110,025.00 $ 4,890,000 10/01/2020 4.500% $ 895,000 $ 110,025.00 $ 220,050.00 $ 1,115,050.00 $ 3,995,000 04/01/2021 $ 89,887.50 $ 3,995,000 10/01/2021 4.500% $ 935,000 $ 89,887.50 $ 179,775.00 $ 1,114,775.00 $ 3,060,000 04/01/2022 $ 68,850.00 $ 3,060,000 10/01/2022 4.500% $ 975,000 $ 68,850.00 $ 137,700.00 $ 1,112,700.00 $ 2,085,000 04/01/2023 $ 46,912.50 $ 2,085,000 10/01/2023 4.500% $ 1,020,000 $ 46,912.50 $ 93,825.00 $ 1,113,825.00 $ 1,065,000 04/01/2024 $ 23,962.50 $ 1,065,000 10/01/2024 4.500% $ 1,065,000 $ 23,962.50 $ 47,925.00 $ 1,112,925.00 $ 0 Total $ 7,340,000 $ 4,709,407.50 $ 4,709,407.50 $ 12,049,407.50 Appendix A Debt Service Schedule 2002 Series A Debt Service Schedule Date 04/01/2003 Coupon Rate Principal $ 204,616.10 . $ 14,470,000 10/01/2003 2.500% $ 755,000 $ 199,061.25 $ 403,677.35 $ 1,158,677.35 $ 13,715,000 04/01/2004 $ 189,623.75 $ 13,715,000 10/01/2004 2.000% $ 765,000 $ 189,623.75 $ 379,247.50 $ 1,144,247.50 $ 12,950,000 04/01/2005 $ 181,973.75 $12,950,000 10/01/2005 2.000% $ 780,000 $ 181,973.75 $ 363,947.50 $ 1,143,947.50 $ 12,170,000 04/01/2006 $ 174,173.75 $ 12,170,000 10/01/2006 2.000% $ 860,000 $ 174,173.75 $ 348,347.50 $ 1,208,347.50 $ 11,310,000 04/01/2007 $ 165,573.75 $ 11,310,000 10/01/2007 2.000% $ 865,000 $ 165,573.75 $ 331,147.50 $ 1,196,147.50 $ 10,445,000 04/01/2008 $ 156,923.75 $ 10,445,000 10/01/2008 2.500% $ 915,000 $ 156,923.75 $ 313,847.50 $ 1,228,847.50 $ 9,530,000 04/01/2009 $ 145,486.25 $ 9,530,000 10/01/2009 2.625% $ 965,000 $ 145,486.25 $ 290,972.50 $ 1,255,972.50 $ 8,565,000 04/01/2010 $ 132,820.63 $ 8,565,000 10/01/2010 2.875% $ 1,020,000 $ 132,820.63 $ 265,641.25 $ 1,285,641.25 $ 7,545,000 04/01/2011 $ 118,158.13 $ 7,545,000 10/01/2011 3.125% $ 1,080,000 $ 118,158.13 $ 236,316.25 $ 1,316,316.25 $ 6,465,000 04/01/2012 $ 101,283.13 $ 6,465,000 10/01/2012 3.200% $ 1,145,000 $ 101,283.13 $ 202,566.25 $ 1,347,566.25 $ 5,320,000 04/01/2013 $ 82,963.13 $ 5,320,000 10/01/2013 3.450% $ 1,210,000 $ 82,963.13 $ 165,926.25 $ 1,375,926.25 $ 4,110,000 03/01/2014 BC $ 797,900 $ 12,559.90 $ 2,173,826.25 $ 3,320,000 04/01/2014 $ 62,090.63 $ 3,320,000 10/01/2014 3.625% $ 1,290,000 $ 62,090.63 $ 136,741.16 $ 1,426,741.16 $ 2,030,000 04/01/2015 $ 38,709.38 $ 2,030,000 10/01/2015 3.750% $ 995,000 $ 38,709.38 $ 77,418.76 $ 1,072,418.76 $ 1,035,000 04/01/2016 $ 20,053.13 $ 1,035,000 10/01/2016 1 3.875% 1 $ 1,035,000 $ 20,053.13 $ 40,106.26 $ 1,075,106.26 $ 0 Total I $ 14,477,900 $ 3,555,903.53 $ 3,555,903.53 $ 19,409,729.78 APPENDIX B District Boundary Map A L B E R T A S S 0 C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 90 -2 (TUSCANY HILLS) AS S 0 C I A T ES reet G:\ 2014 \14- 0127\GIS \CFD90- 2_Boundary. mxd APPENDIX C Special Tax Delinquency Details A L B E R T A S S O C I A T E S Appendix C Special Tax Delinquency Details APN 2013 Total D. Date Foreclosure Complaint Filed Results of Foreclosure Sale, if Any 349473008 $ 1,016.19 $ 1,016.19 349491003 $ 1,066.96 $ 1,066.96 363361032 $ 2,106.18 $ 2,106.18 363363001 $ 2,129.70 $ 2,129.70 363381002 $ 918.41 $ 918.41 363402029 $ 806.29 $ 806.29 363450034 $ 780.93 $ 780.93 Total $ 8,824.66 $ 8,824.66 A L B E R T A. A S S 0 C I A T E S Corporate Headquarters 3788 McCray Street Riverside, CA 92506 951.686.1070 Palm Desert Office 36 -951 Cook Street #103 Palm Desert, CA 92211 760.568.5005 Murrieta Office 41391 Kalmia Street #320 Murrieta, CA 92562 951.686.1070 Table of Contents Sections Tables Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. District Profile Audited Financial St Property Ownership Payment History_ Bond Funds Significant Events_ 1 2 3 5 6 7 Table 1. Undeveloped Lot and Tract Ownership 3 Table 2. Approved Undeveloped Property 3 Table 8. Parcel Distribution by Category 3 Table 9. Special Tax for Developed Property 3 Table 11. Approved Undeveloped Property 4 Table 14. Special Tax Collections and Delinquencies 4 Table 4 -1. Delinquency Summary 5 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map Appendix C. Special Tax Delinquency Details CUSIP Numbers Year CUSIP Year 10/1/2003 509634AB7 10/1/2007 CUSIP 509634AF8 Year 10/1/2011 CUSIP 509634AK7 Year 10/1/2015 CUSIP 509634AP6 10/1/2004 509634AC5 10/1/2008 509634AG6 10/1/2012 509634AL5 10/1/2016 509634AQ4 10/1/2005 509634AD3 10/1/2009 509634AH4 10/1/2013 509634AM3 10/1/2006 509634AE1 10/1/2010 509634AJ0 10/1/2014 509634AN1 8 11 13 The information herein for Community Facilities District No. 90 -2 2002 Series A of the City of Lake Elsinore, (the "District" or "CFD 90 -2 2002A ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 90 -2 2002 Series A Tuscany Hills Public Improvements Project Description The District was formed to finance the purchase, construction, expansion or rehabilitation of public improvements needed to meet increased demand on the City as a result of development within the boundaries of the District. Improvements within and in the vicinity of the District include grading for public streets, public access roads, and public building pads; street improvements consisting of curbs, gutters, sidewalks, lawns, street lights, storm drains, and utilities in the public streets; the domestic water system consisting of three reservoirs, booster pumping stations, pressure reducing stations, and the distribution mains and appurtenances in the public streets; and a sanitary sewer system consisting of gravity sewer, manholes, lift stations, force mains, and appurtenances in public streets and public easements. The District encompasses approximately 1,010 acres. There are three groups of properties within the master plan consisting of approximately 1,020 Single Family Dwelling units, nine Undeveloped lots, and 282 Raw acres. Location The District is located within the Rancho Laguna Redevelopment Project Area No. II in the City of Lake Elsinore (the "City "). It is generally located adjacent to the northeastern limits of the City. Summerhill Drive serves as the main access from the southwest. The development is bounded on the north by Greenwald Street and is contiguous to the western boundary of the Canyon Lake community. 2002 Series A Bonds 2002 Series A Bonds (the "Bonds ") in the amount of $14,470,000, with interest rates ranging from 2.000% to 3.875% were issued October 3, 2002, to finance the public facilities by the District. Interest is payable semi- annually on March 1 and October 1. The date for the final maturity of the Bonds is October 1, 2016. The Principal Amount of the Bonds Outstanding as of June 30, 2014 is $3,320,000. The Bonds were issued to provide funds to refund and defease the 1995 Local Agency Revenue Bonds, Series D (the "1995 Authority Bonds "), to establish a reserve fund for the Bonds, and to pay the expenses in connection with the issuance of the Bonds. A portion of the bonds for this District were refunded in 2007. Additional Bonds In addition to the 2002 Series A Bonds, Special Tax Parity Bonds (the "Parity Series Bonds ") were issued as 2007 Series A Bonds for $7,340,000 by the Redevelopment Agency of the City of Lake Elsinore Community Facilities District No. 90 -2 (Tuscany Hills Public Improvements). Although not required by the Continuing Disclosure Certificate, this report contains some information for the Parity Series Bonds. There are no remaining unissued Bonds authorized for the District. Anmial Continuing Disclosure Report for Fiscal Year ending June 30, 1014 I 1 CFD No. 90 -2 (Tuscany Hills). 2002 Series A 2. Audited Financial Statements Audited Financial Statements The Audited Financial Statements will be disseminated to the EMMA under separate cover when they are available. Annual Continuing Disclosure Report for Fiscal Year ending Jerre 30, 2014 12 CFD No. 90 -2 ("Tuscany Hills), 2002 Series A 3. Property Ownership The following tables present certain property ownership data and the development status of the District. The tables in this section are numbered as required by the Disclosure Certificate. Table No. 1 Undeveloped Lot and Tract Ownership Table No. 2 Approved Undeveloped Property Table No. B Parcel Distribution by Category' Table No. 9 Annual Special Tax per Square Foot Shown on Building Permit ' APN 363392023 prepaid Special Tax lien on 10/15/2013, then removed; Fund 68 -2364. Annual Continuing Disclosure Report for Fiscal Year ending.lune 30, 2014 13 CFD No. 90 -2 (Tuscany Hills), 2002 Series A L. Generated Special Tax Number Tract 17413-1 per $ 0.82 per Sq. Ft. $ 0.35 S 656,138 $ 228,703.31 $ 538,033.16 17413 -2 $ 0.68 $ 0.22 167,632 $ 36,469.97 $ 113,989.76 17413 -3 $ 0.82 $ 0.31 370,046 $ 115,400.72 $ 303,437.72 17413 -4 $ 0.82 $ 0.34 66,617 $ 22,455.71 $ 54,625.94 17413 -5 $ 0.62 $ 0.22 186,067 $ 41,647.50 $ 115,361.54 17413 -6 $ 0.82 $ 0.31 316,409 $ 98,276.57 $ 259,455.38 17413 -7 $ 0.82 $ 0.34 232,429 $ 79,599.99 $ 190,591.78 17413 -8 $ 0.82 $ 0.32 314,971 $ 101,452.47 $ 258,276.22 24383 $ 0.82 $ 0.35 488,401 $ 168,726.90 $ 400,488.82 Total 2,798,710 $ 892,733.14 $ 2,234,260.32 ' APN 363392023 prepaid Special Tax lien on 10/15/2013, then removed; Fund 68 -2364. Annual Continuing Disclosure Report for Fiscal Year ending.lune 30, 2014 13 CFD No. 90 -2 (Tuscany Hills), 2002 Series A 3. Property Ownership Annual Special Tax per Parcel on Parcels with Building Permits Table No. 11 Estimated Special Tax Levy — Approved Undeveloped Property — Category 111 Table No. 14 Special Tax Collections and Delinquencies 2 APN 363392023 prepaid Special Tax lien on 10/15/2013, then removed; Fund 68 -2364. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 CFD No. 90 -2 (Tuscany Hills), 2002 Series A Parcel I ullammurn bpeciai 17413 -1 per $ 1,048.63 .- $ 985.71 cels 207 $ 204,041.97 Tax $ 217,066.41 17413 -2 $ 1,048.63 $ 985.71 73 $ 71,956.83 $ 76,549.99 17413 -3 $ 1,048.63 $ 985.71 152 $ 149,827.92 $ 159,391.76 17413 -4 $ 1,048.63 $ 985.71 23 $ 22,671.33 $ 24,118.49 17413 -5 $ 1,048.63 $ 985.71 78 $ 76,885.38 $ 81,793.14 17413 -6 $ 1,048.63 $ 985.71 131 $ 129,128.01 $ 137,370.53 17413 -7 $ 1,048.63 $ 985.71 77 $ 75,899.67 $ 80,744.51 17413 -8 $ 1,048.63 $ 985.71 121 $ 119,270.91 $ 126,884.23 24383 $ 1,048.63 $ 985.71 158 $ 155,742.18 $ 165,683.54 Total 1,0202 $ 1,005,424.20 $ 1,069,602.60 Table No. 11 Estimated Special Tax Levy — Approved Undeveloped Property — Category 111 Table No. 14 Special Tax Collections and Delinquencies 2 APN 363392023 prepaid Special Tax lien on 10/15/2013, then removed; Fund 68 -2364. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 CFD No. 90 -2 (Tuscany Hills), 2002 Series A 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 4 -1 Delinquency Summary Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,898,157 for CFD 90 -2 2002 Series A and 2007 Series A is expected to generate sufficient revenue to cover the full year's debt service of $1,774,625 without impacting the fully funded Reserve Fund. Foreclosure Covenant The District covenants with and for the benefit of the Bond Owners that it will commence appropriate judicial foreclosure proceedings against parcels with unpaid Special Tax delinquencies within 150 days of the date they are due. Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Taxes installment. There are no foreclosure actions at this time. Aruival Confiiiiiing Disclosure Report for Fiscal Year ending June 30, 2014 5 CFD No. 90 -2 (Tuscany Hills), 2002 Series A Fiscal Levied Delinquent Delinquency Year 2009 Parcels 1,021 Amount $1,864,294.64 Parcels 0 Amount $0.00 (at Fiscal Year End) 0.00% 2010 1,021 $1,812,615.72 0 $0.00 0.00% 2011 1,021 $1,812,615.72 0 $0.00 0.00% 2012 1,021 $1,858,878.62 0 $0.00 0.00% 2013 1,020 $1,898,157.34 7 $8,824.66 0.46% Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,898,157 for CFD 90 -2 2002 Series A and 2007 Series A is expected to generate sufficient revenue to cover the full year's debt service of $1,774,625 without impacting the fully funded Reserve Fund. Foreclosure Covenant The District covenants with and for the benefit of the Bond Owners that it will commence appropriate judicial foreclosure proceedings against parcels with unpaid Special Tax delinquencies within 150 days of the date they are due. Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Taxes installment. There are no foreclosure actions at this time. Aruival Confiiiiiing Disclosure Report for Fiscal Year ending June 30, 2014 5 CFD No. 90 -2 (Tuscany Hills), 2002 Series A 5. Bond Funds Special Tax Fund When received, the Special Taxes are required to be deposited with the Fiscal Agent into the Special Tax Fund. The Fiscal Agent shall transfer amounts on deposit in the Special Tax Fund to the following accounts and funds as soon as practicable, but no later than ten Business Days after receipt: (1) the Principal Account of the Special Tax Fund; (2) the Interest Account of the Special Tax Fund; (3) the Administrative Expense Fund of the Special Tax Fund; (4) the Redemption Account of the Special Tax Fund; (5) the Reserve Account of the Special Tax Fund; (6) the Rebate Fund; and (7) the Surplus Fund At maturity of all of the Bonds, and after all principal and interest then due on the Bonds then Outstanding has been paid or provided for any amounts owed to the Trustee have been paid in full, moneys in the Special Tax Fund and any accounts therein may be used by the Community Facilities District for any lawful purpose. Reserve Account The Reserve Fund must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount equal to the lesser of (i) 10% of the proceeds of the Bonds (within the meaning of section 148 of the Code), (ii) Maximum Annual Debt Service on the Outstanding Bonds, or (iii) 125% of average Annual Debt Service on the Outstanding Bonds, provided, however, the Reserve Requirement on any calculation date shall not be greater than the Reserve Requirement amount on the closing date. Amounts in the Reserve Account will be used to pay debt service on the Bonds to the extent other moneys are not available. As of June 30, 2014, the balance in the Reserve Fund was $1,414,291 and the Reserve Requirement was $1,075,106.26. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Amnial Continuing Disclosure Report for Fiscal Year ending June 30. 2014 � 6 CFD No. 90 -2 (Tuscany Hills), 2002 Series A 6. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. principal and interest payment delinquencies; Not Applicable 2. non - payment related defaults; Not Applicable 3. modifications to rights of Bondholders; Not Applicable 4. optional, contingent, or unscheduled bond calls; Not Applicable 5. defeasances; Not Applicable 6. rating changes; Not Applicable 7. adverse tax opinions or event adversely affecting the tax - exempt status of the Bonds; Not Applicable 8. unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 9. unscheduled draws on credit enhancements reflecting financial difficulties; Not Applicable 10. substitution of credit or liquidity providers, or their failure to perform; Not Applicable 11. release, substitution, or sale of property securing repayment of the Bonds. Not Applicable 12. Bankruptcy, insolvency, receivership or similar event of the obligated person. Not Applicable 13. Merger, consolidation, or acquisition of the obligated person, if material. Not Applicable 14. Appointment of a successor or additional trustee, or the change of name of a trustee, if Not Applicable material. Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Material Events (12) through (14) have been added pursuant to amendments to the continuing disclosure services of the Municipal Securities Rulemaking Board Electronic Municipal Market Access ( "EMMA ") system by the Securities and Exchange Commission to Securities Exchange Act Rule 15c2 -12 effective December 1, 2010. Annual Continuing Disclosure Repori for Fiscal Year ennding Janie 30, 201 d 17 CFD No. 90 -2 (Tuscany Hills), 2002 Series A APPENDIX A Debt Service Schedule A L B E R T A S S O C I A T E S Appendix A Debt Service Schedule zuuz Seno .. 104/01/2003 N uebt Service Coupon 5cnepule Principal $ 204,616.10 D•. $ 14,470,000 01/2003 2.500% $ 755,000 $ 199,061.25 $ 403,677.35 $ 1,158,677.35 $ 13,715,000 04/01/2004 $ 189,623.75 $ 13,715,000 10/01/2004 2.000% $ 765,000 $ 189,623.75 $ 379,247.50 $ 1,144,247.50 $ 12,950,000 04/01/2005 $ 181,973.75 $ 12,950,000 10/01/2005 2.000% $ 780,000 $ 181,973.75 $ 363,947.50 $ 1,143,947.50 $ 12,170,000 04/01/2006 $ 174,173.75 $12,170,000 10/01/2006 2.000% $ 860,000 $ 174,173.75 $ 348,347.50 $ 1,208,347.50 $ 11,310,000 04/01/2007 $ 165,573.75 $11,310,000 10/01/2007 2.000% $ 865,000 $ 165,573.75 $ 331,147.50 $ 1,196,147.50 $ 10,445,000 04/01/2008 $ 156,923.75 $ 10,445,000 10/01/2008 2.500% $ 915,000 $ 156,923.75 $ 313,847.50 $ 1,228,847.50 $ 9,530,000 04/01/2009 $ 145,486.25 $ 9,530,000 10/01/2009 2.625% $ 965,000 $ 145,486.25 $ 290,972.50 $ 1,255,972.50 $ 8,565,000 04/01/2010 $ 132,820.63 $ 8,565,000 10/01/2010 2.875% $ 1,020,000 $ 132,820.63 $ 265,641.25 $ 1,285,641.25 $ 7,545,000 04/01/2011 $ 118,158.13 $ 7,545,000 10/01/2011 3.125% $ 1,080,000 $ 118,158.13 $ 236,316.25 $ 1,316,316.25 $ 6,465,000 04/01/2012 $ 101,283.13 $ 6,465,000 10/01/2012 3.200% $ 1,145,000 $ 101,283.13 $ 202,566.25 $ 11347,566.25 $ 5,320,000 04/01/2013 $ 82,963.13 $ 5,320,000 10/01/2013 3.450% $ 1,210,000 $ 82,963.13 $ 165,926.25 $ 1,375,926.25 $ 4,110,000 03/01/2014 BC $ 797,900 $ 12,559.90 $ 2,173,826.25 $ 3,320,000 04/01/2014 $ 62,090.63 $ 3,320,000 10/01/2014 3.625% $ 1,290,000 $ 62,090.63 $ 136,741.16 $ 1,426,741.16 $ 2,030,000 04/01/2015 $ 38,709.38 $ 2,030,000 10/01/2015 3.750% $ 995,000 $ 38,709.38 $ 77,418.76 $ 1,072,418.76 $ 1,035,000 04/01/2016 $ 20,053.13 $ 1,035,000 10/01/2016 1 3.875% 1 $ 1,035,000 $ 20,053.13 $ 40,106.26 $ 1,075,106.26 $ 0 Total $ 14,477,900 $ 3,555,903.53 $ 3,555,903.53 $ 19,409,729.78 Appendix A Debt Service Schedule 2007 Series A Debt Service Schedule Coupon Rate 10/01/2007 Principal AnnualDebt Annual $ 173,407.5 $$ 173,407.50 $ 173,407.50 Balance $ 7,340,000 04/01/2008 $165,150, 00 $ 7,340,000 10/01/2008 7 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2009 $ 165,150.00 $ 7,340,000 10/01/2009 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2010 $ 165,150.00 $ 7,340,000 10/01/2010 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2011 $ 165,150.00 $ 7,340,000 10/01/2011 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2012 $ 165,150.00 $ 7,340,000 10/01/2012 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2013 $ 165,150.00 $ 7,340,000 10/01/2013 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2014 $ 165,150.00 $ 7,340,000 10/01/2014 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2015 $ 165,150.00 $ 7,340,000 10/01/2015 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2016 $ 165,150.00 $ 7,340,000 10/01/2016 $ 165,150.00 $ 330,300.00 $ 330,300.00 $ 7,340,000 04/01/2017 $ 165,150.00 $ 7,340,000 10/01/2017 4.500% $ 780,000.00 $ 165,150.00 $ 330,300.00 $ 1,110,300.00 $ 6,560,000 04/01/2018 $ 147,600.00 $ 6,560,000 10/01/2018 4.500% $ 815,000.00 $ 147,600.00 $ 295,200.00 $ 1,110,200.00 $ 5,745,000 04/01/2019 $ 129,262.50 $ 5,745,000 10/01/2019 4.500% $ 855,000.00 $ 129,262.50 $ 258,525.00 $ 1,113,525.00 $ 4,890,000 04/01/2020 $ 110,025.00 $ 4,890,000 10/01/2020 4.500% $ 895,000.00 $ 110,025.00 $ 220,050.00 $ 1,115,050.00 $ 3,995,000 04/01/2021 $ 89,887.50 $ 3,995,000 10/01/2021 4.500% $ 935,000.00 $ 89,887.50 $ 179,775.00 $ 1,114,775.00 $ 3,060,000 04/01/2022 $ 68,850.00 $ 3,060,000 10/01/2022 4.500% $ 975,000.00 $ 68,850.00 $ 137,700.00 $ 1,112,700.00 $ 2,085,000 04/01/2023 $ 46,912.50 $ 2,085,000 10/01/2023 4.500% $ 1,020,000.00 $ 46,912.50 $ 93,825.00 $ 1,113,825.00 $ 1,065,000 04/01/2024 $ 23,962.50 $ 1,065,000 10/01/2024 L 4.500% $ 1,065,000.00 $ 23,962.50 $ 47,925.00 $ 1,112,925.00 $ 0 Total $ 7,340,000.00 $ 4,709,407.50 $ 4,709,407.50 1 $ 12,049,407.50 District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 90 -2 (TUSCANY HILLS) G:\ 2014 \14- 0127AGIS \CFD90- 2_Boundary.mxd __ APPENDIX C Special Tax Delinquency Details A L 6 E R T A S S O C I A T E S Appendix C Special Tax Delinquency Details 349473008 $ 1,016.19 $ 1,016.19 349491003 $ 1,066.96 $ 1,066.96 363361032 $ 2,106.18 $ 2,106.18 363363001 $ 2,129.70 $ 2,129.70 363381002 $ 918.41 $ 918.41 363402029 $ 806.29 $ 806.29 363450034 $ 780.93 $ 780.93 Total $ 8,824.66 $ 8,824.66 A L B E R T A. A S S O C I A T E S Corporate Headquarters 3788 McCray Street Riverside, CA 92506 951.686,1070 Palm Desert Office 36 -951 Cook Street 9103 Palm Desert, CA 92211 760.568.5005 Murrieta Office 41391 Kalmia Street #320 Murrieta, CA 92562 951.686.1070 Table of Contents Sections Tables Section 1. District Profile 1 Section 2. Special Taxes 2 Section 3. Property Ownership 3 Section 4. Payment History 4 Section 5. Bond Funds 5 Section 6. Significant Events 6 Table 2 -1. Development Status 2 Table 3 -1. Largest Property Owners Subject to Special Taxes 3 Table 4 -1. Special Tax Delinquency Summary 4 Appendices Appendix A. Debt Service Schedule _ Appendix B. District Boundary Map Appendix C. Special Tax Delinquency Details CUSIP Numbers 7 9 11 The information herein for Community Facilities District No. 98 -1 of the City of Lake Elsinore, (the "District" or "CFD 98-1") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 9/1/2014 509632JH9 9/1/2018 509632JM8 9/1/2022 509632JR7 9/1/2015 509632JJ5 9/1/2019 509632JN6 9/1/2023 509632JS5 9/1/2016 509632JK2 9/1/2020 509632JP1 9/1/2033 509632JT3 9/1/2017 509632JL0 9/1/2021 509632JQ9 9/1/2033 509632JU0 7 9 11 The information herein for Community Facilities District No. 98 -1 of the City of Lake Elsinore, (the "District" or "CFD 98-1") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 98 -1 2013 Series C Summerhill Project Description The District was formed for the purpose of constructing and acquiring certain public improvements needed to meet increased demand upon the City of Lake Elsinore as a result of development within the boundaries of Community Facilities District No. 98 -1 and include grading, street improvements, domestic water, sanitary sewer, and parks and recreation facilities. Prior to 2004 this District was designated Communities Facilities District No. 91 -2. Location The District is located to the northeast of the intersection of Railroad Canyon Road with Interstate 15. Summerhill Drive, which intersects with Railroad Canyon Road, provides the primary access to the area within the District. 2013 Series C Bonds The 2013 Series C Bonds (the "Bonds ") in the amount of $13,615,000 were issued June 18, 2013, with interest rates ranging from 2.00% to 5.25 %. Interest is payable semi - annually on April 1 and September 1. The date for the final maturity of the Bonds is September 1, 2033. The principal amount of the Bonds Outstanding as of September 30, 2014 is $13,140,000. A portion of the proceeds of the Bonds were used to refund the Lake Elsinore Public Financing Authority 2003 Local Agency Revenue Bonds, Series H and to acquire the 2013 District Bonds. There are no remaining unissued Bonds authorized for the District. Annual Conmming Disclosure Report for Fiscal Year emdimg.hmie 30, 2014 1 CFD No. 98 -1 (Summerhill), 2013 Series C 2. Special Taxes A Special Tax is levied each year to pay the principal and interest obligations on the Bonds of the District. The amount levied each year is determined by the Special Tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) Special Tax rates. The amount levied for the 2013 -2014 tax year was $1,153,801.90. The Special Taxes from this District are apportioned between two classes of property currently existing in the District. Category III is property for which a building permit has been issued and Category II is property which has a final map recorded but no building permits. Generally, the Special Tax is levied proportionately first on each Category III parcel at up to 100% of the applicable Special Tax rate as needed to satisfy the Tax Liability. Second, if additional monies are needed to satisfy the Tax Liability after the Category III levy, the Special Tax is levied proportionately on each Category II parcel at up to 100% of the applicable Special Tax as needed to satisfy the Tax Liability. Currently, the Tax Liability is fully satisfied by the Special Tax levy on Category III property. Table 2 -1 Development Status Anrrrral Continuing Disclosure Repor! for Fiscal Year ending June 30, 2014 CFD No. 98 -1 (Smmnerhill). 2013 Series C 3. Property Ownership The following table presents certain property ownership and overlapping debt of the District. Table 3 -1 Value -to -Lien Ratio Based on Assessed Values' and Principal Amounts of Bonds Outstanding' for all Overlapping Debt Category 111 There are no property owners in the District responsible for greater than 5% of the total levy. Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. 2 Principal Amount of Bonds Outstanding is calculated in proportion to the Assigned Special Tax for FY 2014 -2015. Annual Continuing Disclosure Reporl for Fiscal Year ending June 30, 2014 3 CFD No. 98 -1 (Summerhill), 2013 Series C 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 4 -1 Delinquency Summary Funds Available for the Payment of Scheduled Debt Service The current year's levy of $1,153,802 is expected to generate sufficient revenue to cover the full year's debt service of $1,079,581, without impacting the fully funded Reserve Fund. Prepayments There were no prepayments in the District for Fiscal Year 2013 -2014. Foreclosure Covenant The District has covenanted for the benefit of the Bond Owners that the District will review the public records of the County of Riverside, California, in connection with the collection of the Special Tax not later than July 1 of each year to determine the amount of Special Tax collected in the prior fiscal year; and with respect to individual delinquencies, if the District determines that any single property owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $2,500 or more or that as to any single parcel the delinquent Special Taxes represent more than 5% of the aggregate Special Taxes within the District, then the District will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) the District will cause judicial foreclosure proceedings to be filed in the superior court within 90 days of such determination against any property for which the Special Taxes remain delinquent. Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD Administrator believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re- noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. There are no foreclosure actions at this time. Annual Continuing Disclosure Report.for Fiscal Year ending June 30, 2014 4 CFD No. 98 -1 (Sununerhill), 2013 Series C 5. Bond Funds Special Tax Fund When received, the Special Taxes are required to be deposited into the Special Tax Fund, excluding Redemption Revenues which are deposited into the Redemption Fund. Prior to each interest payment funds will be transferred from the Special Tax Fund into the following accounts of the Bond Fund, in order of priority: (i) the Interest Account; (ii) the Principal Account; (iii) the Reserve Account; Reserve Account The Reserve Account must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount equal to the lesser of (a) Maximum Annual Debt Service on the Outstanding Bonds, (b) 10% of the total original principal amount of the Bonds, or (c) 125% of average Annual Debt Service on the Outstanding Bonds. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the appropriate account of the Bond Fund. The Reserve Fund will then be replenished by increasing the next year's special tax levy to the extent permitted by law. As of June 30, 2014 the balance in the Reserve Fund was $1,082,892.25 and the Reserve Requirement was $1,082,856.26. Cash Flow Management Fund On September 2 of each year any amounts remaining in the Revenue Fund will be transferred to the Cash Flow Management Fund; the Authority may also elect to fund this account from any available surplus revenue from other series of local agency revenue bonds, to the extent such surplus revenues are loaded to replenish the Cash Flow Management Fund to its requirement. As of June 30, 2014 the balance in the Cash Flow Management Fund was $162,448.95. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Conlioaing Disclosure Report for Fiscal Year ending June 30, 2014 5 CFD No. 98 -1 (Sunanerhill), 2013 Series C 6. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. Principal or interest payment delinquencies; Not Applicable 2. Non - payment related defaults, if material; Not Applicable 3. Modifications to the rights of the Bond Owner, if material; Not Applicable 4. Optional, contingent or unscheduled calls, if material, and tender offers; Not Applicable 5. Defeasances; Not Applicable 6. Rating changes; Not Applicable 7. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final Not Applicable determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. Unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 9. Unscheduled draws on the credit enhancements reflecting financial difficulties; Not Applicable 10. Substitution of the credit or liquidity providers or their failure to perform; Not Applicable 11. Release, substitution or sale of property securing repayment of the Bonds, if material; Not Applicable 12. Bankruptcy, insolvency, receivership or similar proceedings of the Authority; Not Applicable 13. Appointment of a successor or additional trustee or the change of name of a trustee, if Not Applicable material, or; 14. The consummation of a merger, consolidation, or acquisition involving the Authority or Not Applicable the sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Continuing Disclosure Report for Fiscal Year ending.hme 30, 2014 6 CFD No. 98 -1 (Stwnlner11i11), 2013 Series C APPENDIX A Debt Service Schedule A L B E R T A S S O C I A T E S Appendix A Debt Service Schedule Date 09/01/2013 Coupon Rate Principal $ 83,969.61 $ 83,969.61 . $ 83,969.61 $ 13,615,000 04/01/2014 $ 302,290.63 $ 13,615,000 09/01/2014 2.000% $ 475,000.00 $ 302,290.63 $ 6041581.26 $ 1,079,581.26 $ 13,140,000 04/01/2015 $ 297,540.63 $ 13,140,000 09/01/2015 2.000% $ 485,000.00 $ 297,540.63 $ 595,081.26 $ 1,080,081.26 $ 12,655,000 04/01/2016 $ 292,690.63 $ 12,655,000 09/01/2016 2.5000 $ 495,000.00 $ 292,690.63 $ 585,381.26 $ 1,080,381.26 $ 12,160,000 04/01/2017 $ 286,503.13 $ 12,160,000 09/01/2017 3.000% $ 505,000.00 $ 286,503.13 $ 573,006.26 $ 1,078,006.26 $ 11,655,000 04/01/2018 $ 278,928.13 $ 11,655,000 09/01/2018 3.000% $ 525,000.00 $ 278,928.13 $ 557,856.26 $ 1,082,856.26 $ 11,130,000 04/01/2019 $ 271,053.13 $ 11,130,000 09/01/2019 3.375% $ 540,000.00 $ 271,053.13 $ 542,106.26 $ 1,082,106.26 $ 10,590,000 04/01/2020 $ 261,940.63 $ 10,590,000 09/01/2020 3.500% $ 555,000.00 $ 261,940.63 $ 523,881.26 $ 1,078,881.26 $ 10,035,000 04/01/2021 $ 252,228.13 $ 10,035,000 09/01/2021 3.875% $ 575,000.00 $ 252,228.13 $ 504,456.26 $ 1,079,456.26 $ 9,460,000 04/01/2022 $ 241,087.50 $ 9,460,000 09/01/2022 4.000% $ 600,000.00 $ 241,087.50 $ 482,175.00 $ 1,082,175.00 $ 8,860,000 04/01/2023 $ 229,087.50 $ 8,860,000 09/01/2023 4.125% $ 620,000.00 $ 229,087.50 $ 458,175.00 $ 1,078,175.00 $ 8,240,000 04/01/2024 $ 216,300.00 $ 8,240,000 09/01/2024 5.250% $ 650,000.00 $ 216,300.00 $ 432,600.00 $ 1,082,600.00 $ 7,590,000 04/01/2025 $ 199,237.50 $ 7,590,000 09/01/2025 5.2500 $ 680,000.00 $ 199,237.50 $ 398,475.00 $ 1,078,475.00 $ 6,910,000 04/01/2026 $ 181,387.50 $ 6,910,000 09/01/2026 5.2500 $ 720,000.00 $ 181,387.50 $ 362,775.00 $ 1,082,775.00 $ 6,190,000 04/01/2027 $ 162,487.50 $ 6,190,000 09/01/2027 5.250% $ 755,000.00 $ 162,487.50 $ 324,975.00 $ 1,079,975.00 $ 5,435,000 04/01/2028 $ 142,668.75 $ 5,435,000 09/01/2028 5.250% $ 795,000.00 $ 142,668.75 $ 285,337.50 $ 1,080,337.50 $ 4,640,000 04/01/2029 $ 121,800.00 $ 4,640,000 09/01/2029 5.250% $ 835,000.00 $ 121,800.00 $ 243,600.00 $ 1,078,600.00 $ 3,805,000 04/01/2030 $ 99,881.25 $ 3,805,000 09/01/2030 5.2509 $ 880,000.00 $ 99,881.25 $ 199,762.50 $ 1,079,762.50 $ 2,925,000 04/01/2031 $ 76,781.25 $ 2,925,000 09/01/2031 5.250% $ 925,000.00 $ 76,781.25 $ 153,562.50 $ 1,078,562.50 $ 2,000,000 04/01/2032 $ 52,500.00 $ 2,000,000 09/01/2032 5.250% $ 975,000.00 $ 52,500.00 $ 105,000.00 $ 1,080,000.00 $ 1,025,000 04/01/2033 $ 26,906.25 $ 1,025,000 09/01/2033 5.250% $ 1,025,000.00 $ 26,906.25 $ 53,812.50 $ 1,078,812.50 $0- Total 1 1 $ 13,615,000.00 $ 8,070,569.69 $ 8,070,569.69 $ 21,685,569.69 APPENDIX B District Boundary Map A L B E R T A. A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 98 -1 (SUMMERHILL) CANYON VIEW �QZ i DR GEC RF SA J !� $T DR DR 5 STpN,�y C\- CgNyO� U LLJ 1�j l _DRS WILLOW CANYON R1p IEW ..i Y r SPRING RD %7 a A S S 0 C€ A T E S G: \2014\ 14- 0127\GIS \CFD98 -1 _Bowdary. mxd ��i iI� L 0 300 600 900 Feet APPENDIX C Special Tax Delinquency Details A L B E R T A S S 0 C I A T E S Appendix C Special Tax Delinquency Details LN , . . 'N at IN . ;.:ih Table of Contents Sections Tables Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. District Profile Special Taxes Property Ownership Payment History_ Bond Funds Significant Events_ 1 2 3 4 6 7 Table 2 -1. Special Tax Levy Zone 1 2 Table 2 -2. Special Tax Levy Zone 2 2 Table 3 -1. Property Breakdown by Development Status 3 Table 3 -2. Value -to -Lien Ratio Based on Assessed Value 3 Table 4 -1. Delinquency Summary 4 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map Appendix C. Special Tax Delinquency Details CUSIP Numbers Year CUSIP Year 9/1/2015 509632GW9 9/1/2019 CUSIP 509632HA6 Year 9/1/2023 CUSIP 509632HE8 Year 9/1/2027 CUSIP 509632HJ7 9/1/2016 509632GX7 9/1/2020 509632HB4 9/1/2024 509632HF5 9/1/2032 509632HK4 9/1/2017 509632GY5 9/1/2021 509632HC2 9/1/2025 509632HG3 9/1/2037 509632HL2 9/1/2018 509632GZ2 9/1/2022 509632HD0 9/1/2026 509632HH1 9/1/2042 509632HM0 8 11 13 The information herein for Community Facilities District No. 2003 -2 (the "District ") Improvement Area C of the City of Lake Elsinore, ( "CFD 2003 -2 Imp. Area C ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 2003 -2 Improvement Area C Canyon Hills Local Agency Revenue Bonds 2012 Series C Project Description The District was formed in January, 2004 and consists of four Improvement Areas; each Improvement Area has a separate rate and method of special tax apportionment. Development in Improvement Area C began in 2007 in the master planned community known as Canyon Hills. The District includes 49 planning areas, 3,998 dwelling units, and approximately 200,000 square feet of commercial at build -out. Location The District is located northeast of the Interstate 15 freeway and south of Railroad Canyon Road, south of Canyon Lake, in the area known as Canyon Hills. Improvement Area C is located near the intersection of Hillside Drive and Canyon Hills Road, one mile southeast of Railroad Canyon Road. 2012 Series C Bonds The 2012 Series C Bonds (the "Bonds ") in the amount of $5,345,000 were issued December 6, 2012, with interest rates ranging from 2.000% to 5.000 %. Interest is payable semi - annually on March 1 and September 1. The date for the final maturity of the Bonds is September 1, 2042. The principal amount of the Bonds Outstanding as of September 30, 2014 was $5,345,000. The Bonds were used to finance the public infrastructure and capital fees relating to CFD 2003 -2 Imp. Area C, to pay the interest on the Bonds up to and including March 1, 2013, to fund the Reserve Account and the Cash Flow Management Fund, to make a deposit to the Delinquency Management Fund, and to pay the expenses in connection with the issuance of the Bonds. Additional Bonds In addition to the 2012 Series C Bonds, Special Tax Parity Bonds were issued as 2010 Series A Bonds (the "Parity Series Bonds ") for $7,430,000 by the Redevelopment Agency of the City of Lake Elsinore Community Facilities District No. 2003 -2 (Canyon Hills Public Improvements). Due to the timing of this report, it contains some information for the 2010 Series A Parity Bonds. The 2010 Series A Bonds were refunded on July 23, 2014. The Bonds may be payable from any available surplus revenues with respect to the Parity Series Bonds to the extent such surplus revenues are available to replenish to Reserve Account to its requirement and to fund the Cash Flow Management Fund to its requirement. There are no remaining unissued Bonds authorized for the District. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 CFD No. 2003 -2 (Canyon Hills) Improvement Area C, 2012 .Series C 2. Special Taxes A special tax is levied each year to pay the principal and interest obligations on the Bonds of the District. The amount levied each year is determined by the special tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) special tax rates. The amount levied for the 2013 -2014 tax year was $784,848. The special tax rates applied for the 2013 -2014 tax year are: Table 2 -1 Special Tax Levy Zone 1 1 Land Use Category - Developed Residential (less than 1,175 sq. ft.) Levy Amount Assigned Per Category per $ 0.00 Tax Rate Taxable Unit $ 1,322.97 Parcels 0 Max Special Tax Rate $ 3,120.13 2 - Developed Residential (1,175 - 1,324 sq. ft.) $ 5,622.08 $ 1,440.10 4 $ 3,120.13 3 - Developed Residential (1,325 - 1,549 sq. ft.) $ 0.00 $ 1,631.31 0 $ 3,120.13 4 - Developed Residential (1,550 - 1,649 sq. ft.) $ 3,412.88 $ 1,748.42 2 $ 3,120.13 5 - Developed Residential (1,650 - 1,749 sq. ft.) $ 3,641.48 $ 1,865.54 2 $ 3,120.13 6 - Developed Residential (1,750 - 1,949 sq. ft.) $ 16,974.54 $ 1,932.46 9 $ 3,120.13 7 - Developed Residential (1,950 - 2,199 sq. ft.) $ 7,782.24 $ 1,993.42 4 $ 3,120.13 8 - Developed Residential (2,200 - 2,449 sq. ft.) $ 26,020.08 $ 2,221.67 12 $ 3,120.13 9 - Developed Residential (2,450 - 2,699 sq. ft.) $ 4,604.92 $ 2,359.12 2 $ 3,120.13 10 - Developed Residential (2,700 - 2,949 sq. ft.) $ 7,005.42 $ 2,392.57 3 $ 3,120.13 11 - Developed Residential (2,950 or more sq. ft.) $ 15,018.48 $ 2,668.28 6 $ 3,120.13 12 - Apartment (per unit) $ 0.00 $ 717.06 0 $ 746.01 13 - Non - Residential Property (per acre) $ 0.00 $ 5,975.46 0 $ 6,216.88 14 - Approved Property (per acre) $ 0.00 $ 14,921.71 0 $ 15,220.15 15 - Undeveloped Property (per acre) $ 0.00 $ 14,921.71 0 $ 15,220.15 Table 2 -2 Special Tax Levy Zone 2 1 - Land Use Category Developed Residential (less than 1,175 sq. ft.) Levy Amount Assigned Per Category per $ 0.00 Tax Rate Taxable Unit $ 1,042.12 Parcels 0 Max Special Tax Rate $ 2,556.26 2 - Developed Residential (1,175 - 1,324 sq. ft.) $ 28,285.00 $ 1,159.25 25 $ 2,556.26 3 - Developed Residential (1,325 - 1,549 sq. ft.) $ 0.00 $ 1,350.46 0 $ 2,556.26 4 - Developed Residential (1,550 - 1,649 sq. ft.) $ 21,485.10 $ 1,467.58 15 $ 2,556.26 5 - Developed Residential (1,650 - 1,749 sq. ft.) $ 30,932.80 $ 1,584.69 20 $ 2,556.26 6 - Developed Residential (1,750 - 1,949 sq. ft.) $ 112,756.00 $ 1,650.42 70 $ 2,556.26 7 - Developed Residential (1,950 - 2,199 sq. ft.) $ 126,933.00 $ 1,734.08 75 $ 2,556.26 8 - Developed Residential (2,200 - 2,449 sq. ft.) $ 225,995.96 $ 1,962.34 118 $ 2,556.26 9 - Developed Residential (2,450 - 2,699 sq. ft.) $ 22,530.20 $ 2,098.58 11 $ 2,556.26 10 - Developed Residential (2,700 - 2,949 sq. ft.) $ 29,148.28 $ 2,133.24 14 $ 2,556.26 11 - Developed Residential (2,950 or more sq. ft.) $ 96,699.26 $ 2,472.34 43 $ 2,556.26 12 - Apartment (per unit) $ 0.00 $ 717.06 0 $ 746.01 13 - Non - Residential Property (per acre) $ 0.00 $ 5,975.46 0 $ 6,216.88 14 - Approved Property (per acre) $ 0.00 $ 14,009.90 0 $ 14,290.11 15 - Undeveloped Property (per acre) $ 0.00 $ 14,009.90 0 $ 14,290.11 Annual Continuing Disclosure Report for Fiscal Year ending June 30, 201.1 2 CFD No. 2003 -2 (Canyon Hills) Improvement Area C, 2012 Series C 3. Property Ownership The following tables present certain property ownership data and the development status of the District. Table 3 -1 Property Breakdown by Development Status Development Total Special Tax % of Total I Total Assessed Status FY 0- Developed 435 $784,848 100.00% $31,654,530 $84,681,561 $116,336,091 98.89% All Others 5 $0 0.00% $274,227 $1,030,009 $1,304,236 1.11% Total 440 $784,848 100.00% $31,928,757 $85,711,570 1 $117,640,327 100.00% There are no property owners in the District responsible for greater than 5% of the total levy. Table 3 -2 Value -to -Lien Ratio Based on Assessed Values' with Overlapping Debi Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. 2 The Lake Elsinore PFA LARB 2010 Series A Bonds were refunded on July 23, 2014. The information contained in this report is prior to the refunding. Annual Continning Disclos:o-e Report for Fiscal Year ending Jame 30, 2014 3 C'FD No. 2003 -2 (Canyon Hills) Improvement Area C, 2012 Series C 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 4 -1 Delinquency Summary Fiscal Levied Delinquent Delinquency Rate Year Parcels Amount Parcels Amount (at Fiscal Year End) 1 $647,364.30 1 $0.00 0.00% 1 13 $784,847.72 164 14 Funds Available for the Payment of Scheduled Debt Service The current year's levy of $784,848 is expected to generate sufficient revenue to cover the full year's debt service of $727,988 for both the 2010 Series A Bonds and the 2012 Series B Bonds, without impacting the fully funded Reserve Fund. Foreclosure Covenant The District has covenanted for the benefit of the owners of the Bonds that the District will review the public records of the County of Riverside, California not later than July 1 of each year to determine the amount of delinquencies, and if the District determines that any single property owner is delinquent in the payment of Special Taxes in the aggregate of $1,500 or more or that if any single delinquent parcel the Special Taxes represent more than 5% of the aggregate Special Taxes within Improvement Area C of the District, then the District will cause to be sent a notice of delinquency (and a demand for immediate payment) to the property owner within 45 days of such determination, and if the delinquency remains uncured the District will cause judicial foreclosure proceedings to be filed in the superior court within 90 days of such determination against any property for which the Special Taxes remain delinquent. The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in Improvement Area A of the District, so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds. The property in Improvement Area C of the District is also subject to several overlapping liens. A default in the payment of Special Taxes in Improvement Area C of the District is also likely to result in a default in the payment of other overlapping liens. Since the lien of other overlapping special districts are on a parity with the Special Taxes, the foreclosure of the lien of the Special Taxes will not extinguish the lien of the other overlapping special districts. As a result of the foregoing, in the event of a delinquency or nonpayment by the property owners of one or more Special Tax installments, there can be no assurance that there would be available to the District sufficient funds to pay when due the principal of, interest on and premium, if any, on the Bonds. Annual Continuing Disclosure Report for Fiscal Year ending Jame 30, 2014 4 CFD No. 2003 -2 (Canyon Hills) Improremeni Area C, 2012 Series C 4. Payment History Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD Administrator believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re- noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. There are no foreclosure actions at this time. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 5 CFD No. 2003 -2 (Canyon Hills) Improvement Area C, 2012 Series C . Ali 5. Bond Funds Special Tax Fund When received, the Special Taxes are required to be deposited with the Fiscal Agent into the Revenue Fund. The Fiscal Agent shall transfer amounts on deposit in the Revenue Fund to the following accounts and funds, in order of priority: (1) the Interest Account; (2) the Principal Account; (3) the Reserve Account; (4) the Surplus Fund; (5) the Cash Flow Management Fund; (6) the Redemption Fund; Reserve Fund The Reserve Fund must be maintained at the Reserve Requirement which is defined as of any date of calculation as an amount equal to the least of (a) 10% of the total original principal amount of the Bonds, (b) Maximum Annual Debt Service on the Outstanding Bonds, or (c) 125% of average Annual Debt Service on the Outstanding Bonds. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the appropriate account of the Bond Fund. The Reserve Fund will then be replenished by increasing the next year's special tax levy to the extent permitted by law. As of June 30, 2014 the balance in the Reserve Fund was $534,518.00 and the Reserve Requirement was $519,585.94. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Continuing Disclosure Reportfior Fiscal Year ending Alle 30. 2014 6 CFD No. 2003 -2 (Canyon Hills) Improvement Area C, 2012 .Series C 6. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. Principal and interest payment delinquencies; Not Applicable 2. non - payment related defaults, if material; Not Applicable 3. modifications to rights of Bondholders, if material; Not Applicable 4. optional, contingent or unscheduled calls, if material, and tender offers; Not Applicable 5. defeasances; Not Applicable 6. rating changes; Not Applicable 7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final Not Applicable determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 9. unscheduled draws on credit enhancements reflecting financial difficulties; Not Applicable 10. substitution of credit or liquidity providers, or their failure to perform; Not Applicable 11. release, substitution or sale of property securing repayment of the Bonds, if material; Not Applicable 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority, which shall Not Applicable occur as described below; 13. appointment of a successor or additional trustee, or the change of name of a trustee, if Not Applicable material; or 14. the consummation of a merger, consolidation, or acquisition involving the Authority or the Not Applicable sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2014 7 CFD No. 2003 -2 (Canyon Hills) Improvement Area C 2012 Series C .. APPENDIX A Debt Service Schedule A L B E R T A. A S S O C I A T E S Appendix A Debt Service Schedule Date 03/01/2013 Coupon Rate Principal $ 51,509.51 Debt Service Balance $ 5,345,000 09/01/2013 $ 130,587.50 $ 182,097.01 $ 182,097.01 $ 5,345,000 03/01/2014 $ 130,587.50 $ 5,345,000 09/01/2014 $ 130,587.50 $ 261,175.00 $ 261,175.00 $ 5,345,000 03/01/2015 $ 130,587.50 $ 5,345,000 09/01/2015 2.000% $ 5,000.00 $ 130,587.50 $ 261,175.00 $ 266,175.00 $ 5,340,000 03/01/2016 $ 130,537.50 $ 5,340,000 09/01/2016 2.250% $ 5,000.00 $ 130,537.50 $ 261,075.00 $ 266,075.00 $ 5,335,000 03/01/2017 $ 130,481.25 $ 5,335,000 09/01/2017 2.625% $ 15,000.00 $ 130,481.25 $ 260,962.50 $ 275,962.50 $ 5,320,000 03/01/2018 $ 130,284.38 $ 5,320,000 09/01/2018 2.875% $ 20,000.00 $ 130,284.38 $ 260,568.76 $ 280,568.76 $ 5,300,000 03/01/2019 $ 129,996.88 $ 5,300,000 09/01/2019 3.250% $ 25,000.00 $ 129,996.88 $ 259,993.76 $ 284,993.76 $ 5,275,000 03/01/2020 $ 129,590.63 $ 5,275,000 09/01/2020 3.500% $ 30,000.00 $ 129,590.63 $ 259,181.26 $ 289,181.26 $ 5,245,000 03/01/2021 $ 129,065.63 $ 5,245,000 09/01/2021 3.750% $ 35,000.00 $ 129,065.63 $ 258,131.26 $ 293,131.26 $ 5,210,000 03/01/2022 $ 128,409.38 $ 5,210,000 09/01/2022 4.000% $ 45,000.00 $ 128,409.38 $ 256,818.76 $ 301,818.76 $ 5,165,000 03/01/2023 $ 127,509.38 $ 5,165,000 09/01/2023 4.125% $ 55,000.00 $ 127,509.38 $ 255,018.76 $ 310,018.76 $ 5,110,000 03/01/2024 $ 126,375.00 $ 5,110,000 09/01/2024 4.000% $ 65,000.00 $ 126,375.00 $ 252,750.00 $ 317,750.00 $ 5,045,000 03/01/2025 $ 125,075.00 $ 5,045,000 09/01/2025 4.125% $ 70,000.00 $ 125,075.00 $ 250,150.00 $ 320,150.00 $ 4,975,000 03/01/2026 $ 123,631.25 $ 4,975,000 09/01/2026 4.125% $ 80,000.00 $ 123,631.25 $ 247,262.50 $ 327,262.50 $ 4,895,000 03/01/2027 $ 121,981.25 $ 4,895,000 09/01/2027 4.125% $ 90,000.00 $ 121,981.25 $ 243,962.50 $ 333,962.50 $ 4,805,000 03/01/2028 $ 120,125.00 $ 4,805,000 09/01/2028 5.000% $ 100,000.00 $ 120,125.00 $ 240,250.00 $ 340,250.00 $ 4,705,000 03/01/2029 $ 117,625.00 $ 4,705,000 09/01/2029 5.000% $ 115,000.00 $ 117,625.00 $ 235,250.00 $ 350,250.00 $ 4,590,000 03/01/2030 $ 114,750.00 $ 4,590,000 09/01/2030 5.000% $ 125,000.00 $ 114,750.00 $ 229,500.00 $ 354,500.00 $ 4,465,000 03/01/2031 $ 111,625.00 $ 4,465,000 09/01/2031 5.000% $ 140,000.00 $ 111,625.00 $ 223,250.00 $ 363,250.00 $ 4,325,000 03/01/2032 $ 108,125.00 $ 4,325,000 09/01/2032 5.000% $ 150,000.00 $ 108,125.00 $ 216,250.00 $ 366,250.00 $ 4,175,000 03/01/2033 $ 104,375.00 $ 4,175,000 09/01/2033 5.000% $ 170,000.00 $ 104,375.00 $ 208,750.00 $ 378,750.00 $ 4,005,000 03/01/2034 $ 100,125.00 $ 4,005,000 09/01/2034 5.000% $ 185,000.00 $ 100,125.00 $ 200,250.00 $ 385,250.00 $ 3,820,000 03/01/2035 $ 95,500.00 $ 3,820,000 09/01/2035 5.000% $ 200,000.00 $ 95,500.00 $ 191,000.00 $ 391,000.00 $ 3,620,000 03/01/2036 $ 90,500.00 $ 3,620,000 Appendix A Debt Service Schedule Date 09/01/2036 Coupon Rate 5.0009 Principal $ 220,000.00 $ 90,500.00 $ 181,000.00 Debt Service $ 401,000.00 Balance $ 3,400,000 03/01/2037 $ 85,000.00 $ 3,400,000 09/01/2037 5.000% $ 240,000.00 $ 85,000.00 $ 170,000.00 $ 410,000.00 $ 3,160,000 03/01/2038 $ 79,000.00 $ 3,160,000 09/01/2038 5.000% $ 260,000.00 $ 79,000.00 $ 158,000.00 $ 418,000.00 $ 2,900,000 03/01/2039 $ 72,500.00 $ 2,900,000 09/01/2039 5.000% $ 280,000.00 $ 72,500.00 $ 145,000.00 $ 425,000.00 $ 2,620,000 03/01/2040 $ 65,500.00 $ 2,620,000 09/01/2040 5.000% $ 300,000.00 $ 65,500.00 $ 131,000.00 $ 431,000.00 $ 2,320,000 03/01/2041 $ 58,000.00 $ 2,320,000 09/01/2041 5.000% $ 1,120,000.00 $ 58,000.00 $ 116,000.00 $ 1,236,000.00 $ 1,200,000 03/01/2042 $ 30,000.00 $ 1,200,000 09/01/2042 1 5.000% $ 1,200,000.00 $ 30,000.00 $ 60,000.00 $ 1,260,000.00 $ 0 Total 1 $ 5,345,000.00 $ 6,475,822.07 $ 6,475,822.07 $ 11,820,822.07 APPENDIX B District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT 2003 -2 IMPROVEMENT AREA C (CANYON HILLS) .T d t A F 0 T e 4% 1- , . 1\ , MI III I AN * 0 300 600 900 A S S 4 C I A T E 5_ Feet 0 \ 2014\ I4- 0127\GIS \CFD2003- 2_Boundiry.msd APPENDIX C Special Tax Delinquency Details A L B E R T A. 01,011 A S S O C I A T E S Appendix C Special Tax Delinquency Details Table of Contents Sections Tables Section 1. District Profile 1 Section 2. Special Taxes 2 Section 3. Property Ownership 3 Section 4. Payment History 4 Section 5. Bond Funds 6 Section 6. Significant Events 7 Table 2 -1. Special Tax Levy _ 2 Table 3 -1. Property Breakdown by Development Status 3 Table 3 -2. Value to Lien Ratios Based on Assessed Value 3 Table 3 -3. Special Tax to Max Tax Summary 3 Table 4 -1. Delinquency Summary 4 Appendices Appendix A. Debt Service Schedule 8 Appendix B. District Boundary Map 11 Appendix C. Special Tax Delinquency Details 13 CUSIP Numbers The information herein for Community Facilities District No. 2006 -1 (the "District ") Improvement Area A of the City of Lake Elsinore, ( "CFD 2006 -1 Imp. Area A ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 09/01/2015 509632HN8 09/01/2019 509632HS7 09/01/2023 509632HW8 09/01/2016 509632HP3 09/01/2020 509632HT5 09/01/2028 509632HX6 09/01/2017 509632HQ1 09/01/2021 509632HU2 09/01/2033 509632HY4 09/01/2018 509632HR9 09/01/2022 509632HV0 09/01/2043 509632HZ1 The information herein for Community Facilities District No. 2006 -1 (the "District ") Improvement Area A of the City of Lake Elsinore, ( "CFD 2006 -1 Imp. Area A ") was prepared by Albert A. Webb Associates and the City of Lake Elsinore, as Administrators. Except as otherwise noted all information is current as of June 30, 2014. Information can be found at website: www.WebbAssociates.com 1. District Profile Community Facilities District No. 2006 -1 2013 Series A Summerly Improvement Area A Project Description The District was formed in 2006 and initially consisted of three Improvement Areas; in 2011, the City reconfigured the District into six Improvement Areas (Improvement Areas A through F), and one remainder Improvement Area (Improvement Area 1), which consisted of nine existing homes. The resolution for Improvement Area A was created in the spring of 2011 and represents the first phase of development. In total the summary development is expected to include 1,482 homes. Location The District is located in the southern section of Lake Elsinore, less than a mile from the Interstate 15 freeway, with the primary entrance being the intersection of Village Parkway and Diamond Drive. 2013 Series A Bonds The 2013 Series A Bonds (the "Bonds ") in the amount of $3,620,000 were issued May 23, 2013, with interest rates ranging from 1.750% to 5.000 %. Interest is payable semi - annually on March 1 and September 1. The date for the final maturity of the Bonds is September 1, 2043. The principal amount of the Bonds Outstanding as of September 30, 2014 was $3,620,000. The Bonds were issued to provide the District with the funds necessary to finance public infrastructure and capital fees related to the Summerly development; to fund the interest on the Bonds until September 1, 2013, as well as the portion of the Fiscal Year 2013 -2014 Special Tax Requirement which otherwise would be levied on Undeveloped Properties; to pay the expenses of the District; to fund, in part, the Delinquency Management Fund; and to fund the Reserve Account and provide an initial deposit to the Cash Flow Management Fund. There are no remaining unissued Bonds authorized for the District. Annual Conlinning Disclosm e Repori jor Fiscal Year ending Jane 30, 2014 CFD No. 2006 -1 (Sannmerly), 2013 Series A 2. Special Taxes A special tax is levied each year to pay the principal and interest obligations on the Bonds of the District. The amount levied each year is determined by the special tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) special tax rates. The amount levied for the 2013 -2014 tax year was $114,081. The special tax rates applied for the 2013 -2014 tax year are: Table 2 -1 Special Tax Levy Levy Amount Per Assigned Tax Rate per 1- Land Use Category Developed Residential (less than 1,100 sq. ft.) Category $ 0.00 Taxable Unit $ 583.70 Parcels 0 2 - Developed Residential (1,100 - 1,299 sq. ft.) $ 0.00 $ 663.26 0 3 - Developed Residential (1,300 - 1,499 sq. ft.) $ 0.00 $ 742.85 0 4 - Developed Residential (1,500 - 1,699 sq. ft.) $ 0.00 $ 822.44 0 5 - Developed Residential (1,700 - 1,899 sq. ft.) $ 32,473.44 $ 902.04 36 6 - Developed Residential (1,900 - 2,099 sq. ft.) $ 39,264.80 $ 981.62 40 7 - Developed Residential (2,100 - 2,299 sq. ft.) $ 22,285.62 $ 1,061.22 21 8 - Developed Residential (2,300 - 2,499 sq. ft.) $ 20,057.04 $ 1,114.28 18 9 - Developed Residential (2,500 - 2,699 sq. ft.) $ 0.00 $ 1,193.86 0 10 - Developed Residential (2,700 - 2,899 sq. ft.) $ 0.00 $ 1,246.92 0 11- Developed Residential (2,900 - 3,099 sq. ft.) $ 0.00 $ 1,326.51 0 12 - Developed Residential (3,100 - 3,299 sq. ft.) $ 0.00 $ 1,379.57 0 13 - Developed Residential (3,300 - 3,499 sq. ft.) $ 0.00 $ 1,459.16 0 14 - Developed Residential (3,500 or more sq. ft.) $ 0.00 $ 1,538.75 0 15 - Non - Residential Property (per acre) $ 0.00 $ 7,252.30 0 16 - Approved Property (per acre) $ 0.00 $ 7,252.30 0 17 - Undeveloped Property (per acre) $ 0.00 $ 7,252.30 0 Annual Continuing Disclosure 2epa7.for Fiscal Year ending,hnee 30, 2014 2 CFD No. 2006 -1 (Sannnerh), 2013 Series A 3. Property Ownership The following tables present certain property ownership data and the development status of the District. Table 3 -1 Property Breakdown by Development Status There are no property owners in the District responsible for greater than 5% of the total levy. Table 3 -2 Value -to -Lien Ratio Based on Assessed Values' and Principal Amount of Bonds Outstanding, Developed Property Undeveloped Property There is no Undeveloped Property, as defined by the RMA. Table 3 -3 Special Tax to Max Tax Summary Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. z Principal Amount of Bonds Outstanding is calculated in proportion to the Assigned Special Tax for FY 2013 -2014. Annual Continuing Disclosure Report for Fiscal Year ending.hme 30, 2014 3 CFD No. 2006 -1 (Sumtnerlv), 2013 Series :. Yo ot ilotall • • .10 1. Assessed Value Less than 1:1 0 0.00% $0 0.00% $0 0.00% Between 1- 2.99:1 0 0.00% $0 0.00% $0 0.00% Between 3 - 4.99:1 0 0.00% $0 0.00% $0 0.00/ Between 5 - 6.99:1 0 0.00% $0 0.00% $0 0.00% Between 7 - 8.99:1 88 40.74% $2,812,655 77.70% $22,790,766 51.16% Between 9 - 10.99:1 26 12.04% $778,722 21.51% $7,382,832 16.57/ Between 11- 12.99:1 1 0.46% $28,623 0.79% $326,474 0.73% Between 13 - 14.99:1 0 0.00% $0 0.00% $0 0.00% Greater than 15:1 0 0.00% $0 0.00% $0 0.00% Total 115 53.24% $3,620,000 100.00% $30,500,072 68.47/0 Undeveloped Property There is no Undeveloped Property, as defined by the RMA. Table 3 -3 Special Tax to Max Tax Summary Assessed Valuation (AV) is based on information provided in the Riverside County Assessor's records as of January 1, 2014 and may or may not accurately reflect true market value. z Principal Amount of Bonds Outstanding is calculated in proportion to the Assigned Special Tax for FY 2013 -2014. Annual Continuing Disclosure Report for Fiscal Year ending.hme 30, 2014 3 CFD No. 2006 -1 (Sumtnerlv), 2013 Series 4. Payment History The delinquency table in Appendix C details the number of delinquent parcels, the amount delinquent and delinquency charges for each tax year. Delinquencies and delinquency charges are calculated through June 30, 2014. The delinquency summary table below provides an overview of delinquency rates for the previous five years. There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount. Table 4 -1 Delinquency Summary Funds Available for the Payment of Scheduled Debt Service The Fiscal Year 2013 -2014 levy of $114,080.90 along with the Interest Account balance of $126,751.00, established when the Bonds were issued, together are sufficient to pay the total Debt Service of $206,384.69 without impacting the fully funded Reserve Fund. Foreclosure Covenant The District has covenanted for the benefit of the owners of the Bonds that the District will review the public records of the County of Riverside, California not later than July 1 of each year to determine the amount of delinquencies, and if the District determines that any single property owner is delinquent in the payment of Special Taxes in the aggregate of $1,500 or more or that if any single delinquent parcel the Special Taxes represent more than 5% of the aggregate Special Taxes within Improvement Area A of the District, then the District will cause to be sent a notice of delinquency (and a demand for immediate payment) to the property owner within 45 days of such determination, and if the delinquency remains uncured the District will cause judicial foreclosure proceedings to be filed in the superior court within 90 days of such determination against any property for which the Special Taxes remain delinquent. The District may permit property with delinquent Special Tax payments to be sold for less than the amount delinquent, plus fees, penalties and interest, (but not for less than the principal and interest without the consent of the Bond Owners), if it determines that such sale is in the interest of the Bond Owners. The District may forgive all or any portion of the Special Taxes levied or to be levied on any parcel in Improvement Area A of the District, so long as the District determines that such forgiveness is not expected to adversely affect its obligation to pay principal of and interest on the Bonds. No assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. The property in Improvement Area A of the District is also subject to several overlapping liens. A default in the payment of Special Taxes in Improvement Area A of the District is also likely to result in a default in the payment of other overlapping liens. Since the lien of other overlapping special districts are on a parity with the Special Taxes, the foreclosure of the lien of the Special Taxes will not extinguish the lien of the other overlapping special districts. As a result of the foregoing, in the event of a delinquency or nonpayment by the property owners of one or more Special Tax installments, there can be no assurance that there would be available to the District sufficient funds to pay when due the principal of, interest on and premium, if any, on the Bonds. Annual Continuing Disclosure Repori,for Fiscal Year ending,hine 30, 2014 CFD No. 2006 -1 (Sunnnerly), 2013 Series A 4. Payment History Collection and Foreclosure Actions The Mello -Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD Administrator believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re- noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. There are no foreclosure actions at this time. Annual Continning Disclosure Report fiv Fiscal Year ending June 30, 2014 CFD No. 2006 -1 (Snintnerlv), 2013 Series A 5. Bond Funds Special Tax Fund When received, the Special Taxes are required to be deposited with the Fiscal Agent into the Special Tax Fund (with the exception of Redemption Revenues, which are deposited into the Redemption Account). The Fiscal Agent shall transfer amounts on deposit in the Special Tax Fund to the following accounts and funds, in order of priority: (1) the Interest Account; (2) the Principal Account; (3) the Delinquency Management Fund; (4) the Administrative Expense Fund; (5) the Cash Flow Management Fund; (6) the Special Mandatory Redemption Account; (7) the Optional Redemption Account; Reserve Account The Reserve Fund must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount equal to the least of (a) 10% of the proceeds of the Bonds, (b) 125% of average Annual Debt Service on the Outstanding Bonds, or (c) Maximum Annual Debt Service on the Outstanding Bonds. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the appropriate account of the Bond Fund. The Reserve Fund will then be replenished by increasing the next year's special tax levy to the extent permitted by law. As of June 30, 2014 the balance in the Reserve Account was $325,510.80 and the Reserve Requirement was $312,564.93. PLEASE NOTE: The City of Lake Elsinore Fiscal Year 2013 -2014 Comprehensive Annual Financial Report (CAFR) is submitted to the Municipal Securities Rulemaking Board using EMMA (Electronic Municipal Market Access) under separate cover and is incorporated herein by reference. Annual Conlinaing Disclosure Report for Fiscal Year ending June 30, 2014 6 CFD No. 2006 -1 (Sun n erl}), 2013 Series A 6. Significant Events The following events as set forth in Rule 15c2 -12 promulgated by the Securities and Exchange Commission are considered material by the District. 1. principal or interest payment delinquencies; Not Applicable 2. non - payment related defaults, if material; Not Applicable 3. modifications to the rights of the Bond Owner, if material; Not Applicable 4. optional, contingent or unscheduled calls, if material, and tender offers; Not Applicable 5. defeasances; 6. rating changes; 7. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; 8. unscheduled draws on the debt service reserves reflecting financial difficulties; 9. unscheduled draws on the credit enhancements reflecting financial difficulties; 10. substitution of the credit or liquidity providers or their failure to perform; 11. release, substitution or sale of property securing repayment of the Bonds, if material; 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority, which shall occur as described below; 13. appointment of a successor or additional trustee or the change of name of a trustee, if material, or; 14. the consummation of a merger, consolidation, or acquisition involving the Authority or the sale of all or substantially all of the assets of the Authority other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Notice for events described in Section 5(a), subsections 9 and 10 of the Disclosure Certificate need not be given under this sub - section any earlier than the notice (if any) of the underlying event given to holders of affected Bonds pursuant to the Fiscal Agent Agreement. Annual Contoming Disclosure Report for Fiscal Year ending June 30, 2014 CFD No. 2006 -1 (Su nnterly), 2013 Series A 0 APPENDIX A Debt Service Schedule A L B E R T A S S 0 G I A T E S Appendix A Debt Service Schedule Date 03/01/2014 Coup-on Rate Prin ,. interest $ 121,569.06 T,4 Annual Interest Service U $ 3,620,000 09/01/2014 $ 84,815.63 $ 206,384.69 $ 206,384.69 $ 3,620,000 03/01/2015 $ 84,815.63 $ 3,620,000 09/01/2015 1.750% $ 15,000.00 $ 84,815.63 $ 169,631.26 $ 184,631.26 $ 3,605,000 03/01/2016 $ 84,684.38 $ 3,605,000 09/01/2016 2.000% $ 20,000.00 $ 84,684.38 $ 169,368.76 $ 189,368.76 $ 3,585,000 03/01/2017 $ 84,484.38 $ 3,585,000 09/01/2017 2.380% $ 25,000.00 $ 84,484.38 $ 168,968.76 $ 193,968.76 $ 3,560,000 03/01/2018 $ 84,187.50 $ 3,560,000 09/01/2018 2.500% $ 30,000.00 $ 84,187.50 $ 168,375.00 $ 198,375.00 $ 3,530,000 03/01/2019 $ 83,812.50 $ 3,530,000 09/01/2019 3.000% $ 35,000.00 $ 83,812.50 $ 167,625.00 $ 202,625.00 $ 3,495,000 03/01/2020 $ 83,287.50 $ 3,495,000 09/01/2020 3.250% $ 40,000.00 $ 83,287.50 $ 166,575.00 $ 206,575.00 $ 3,455,000 03/01/2021 $ 82,637.50 $ 3,455,000 09/01/2021 3.380% $ 45,000.00 $ 82,637.50 $ 165,275.00 $ 210,275.00 $ 3,410,000 03/01/2022 $ 81,878.13 $ 3,410,000 09/01/2022 3.500`Yo $ 50,000.00 $ 81,878.13 $ 163,756.26 $ 213,756.26 $ 3,360,000 03/01/2023 $ 81,003.13 $ 3,360,000 09/01/2023 3.750% $ 55,000.00 $ 81,003.13 $ 162,006.26 $ 217,006.26 $ 3,305,000 03/01/2024 $ 79,971.88 $ 3,305,000 09/01/2024 4.250% $ 65,000.00 $ 79,971.88 $ 159,943.76 $ 224,943.76 $ 3,240,000 03/01/2025 $ 78,590.63 $ 3,240,000 09/01/2025 4.250% $ 70,000.00 $ 78,590.63 $ 157,181.26 $ 227,181.26 $ 3,170,000 03/01/2026 $ 77,103.13 $ 3,170,000 09/01/2026 4.250% $ 80,000.00 $ 77,103.13 $ 154,206.26 $ 234,206.26 $ 3,090,000 03/01/2027 $ 75,403.13 $ 3,090,000 09/01/2027 4.250% $ 85,000.00 $ 75,403.13 $ 150,806.26 $ 235,806.26 $ 3,005,000 03/01/2028 $ 73,596.88 $ 3,005,000 09/01/2028 4.250% $ 95,000.00 $ 73,596.88 $ 147,193.76 $ 242,193.76 $ 2,910,000 03/01/2029 $ 71,578.13 $ 2,910,000 09/01/2029 4.630% $ 105,000.00 $ 71,578.13 $ 143,156.26 $ 248,156.26 $ 2,805,000 03/01/2030 $ 69,150.00 $ 2,805,000 09/01/2030 4.630% $ 115,000.00 $ 69,150.00 $ 138,300.00 $ 253,300.00 $ 2,690,000 03/01/2031 $ 66,490.63 $ 2,690,000 09/01/2031 4.630% $ 125,000.00 $ 66,490.63 $ 132,981.26 $ 257,981.26 $ 2,565,000 03/01/2032 $ 63,600.00 $ 2,565,000 09/01/2032 4.630% $ 135,000.00 $ 63,600.00 $ 127,200.00 $ 262,200.00 $ 2,430,000 03/01/2033 $ 60,478.13 $ 2,430,000 09/01/2033 4.630% $ 145,000.00 $ 60,478.13 $ 120,956.26 $ 265,956.26 $ 2,285,000 03/01/2034 $ 57,125.00 $ 2,285,000 09/01/2034 5.000% $ 160,000.00 $ 57,125.00 $ 114,250.00 $ 274,250.00 $ 2,125,000 03/01/2035 $ 53,125.00 $ 2,125,000 09/01/2035 5.000% $ 170,000.00 $ 53,125.00 $ 106,250.00 $ 276,250.00 $ 1,955,000 03/01/2036 $ 48,875.00 $ 1,955,000 09/01/2036 5.000% $ 185,000.00 $ 48,875.00 $ 97,750.00 $ 282,750.00 $ 1,770,000 03/01/2037 $ 44,250.00 $ 1,770,000 Appendix A Debt Service Schedule .. 09/01/2037 "5.000% .. $ 200,000.00 Interest $ 44,250.00 D•. Annual Interest Service X i� $ 88,500.00 $ 288,500.00 $ 1,570,000 03/01/2038 $ 39,250.00 $ 1,570,000 09/01/2038 5.000% $ 215,000.00 $ 39,250.00 $ 78,500.00 $ 293,500.00 $ 1,355,000 03/01/2039 $ 33,875.00 $ 1,355,000 09/01/2039 5.000% $ 235,000.00 $ 33,875.00 $ 67,750.00 $ 302,750.00 $ 1,120,000 03/01/2040 $ 28,000.00 $ 1,120,000 09/01/2040 5.000% $ 250,000.00 $ 28,000.00 $ 56,000.00 $ 306,000.00 $ 870,000 03/01/2041 $ 21,750.00 $ 870,000 09/01/2041 5.000% $ 270,000.00 $ 21,750.00 $ 43,500.00 $ 313,500.00 $ 600,000 03/01/2042 $ 15,000.00 $ 600,000 09/01/2042 5.000% $ 290,000.00 $ 15,000.00 $ 30,000.00 $ 320,000.00 $ 310,000 03/01/2043 $ 7,750.00 $ 310,000 09/01/2043 1 5.000% $ 310,000.00 $ 7,750.00 $ 15,500.00 $ 325,500.00 $ 0 Total 1 1 $ 3,620,000.00 $ 3,837,891.07 $ 3,837,891.07 $ 7,457,891.07 APPENDIX B District Boundary Map A L B E R T A S S O C I A T E S CITY OF LAKE ELSINORE BOUNDARY MAP COMMUNITY FACILITIES DISTRICT NO. 2006 -1 IMPROVEMENT AREA A (SUMMERLY) 1' 9448 STgR f,O�O ti� m P r �T . ....... ...� A S S O C I A T E S G: \2014\ 14- 0127\GI S \CI'D2006- I _Boundary.mxd N� O Z 0 200 400 600 Feet 1 _AA APPENDIX C Special Tax Delinquency Details A L B E R T A. A S S O C I A T E S Appendix C Special Tax Delinquency Details