HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit I Summerly CFD 2006-1 IA CC 2016ATable of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
Sections
1. District Profile 1
2. Special Taxes 2
3. Property Ownership 3
4. Payment History 4
5. Bond Funds 5
6. Significant Events 6
Tables
Table 2-1 Special Tax Levy 2
Table 3-1 Assessed Value-to-Lien Ratios by Property Type Using Assessed Value 3
Table 3-2 Fiscal Year Value-to-Lien Stratification 3
Table 4-1 Delinquency Summary 4
Table 5-1 Series 2016A Fund Balances as of September 30, 2016 5
Appendices
Appendix A – Debt Service Schedule
Appendix B – California Debt and Investment Advisory Commission
Appendix C – Boundary Map
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 2006-1 IA CC
Special Tax Bonds, Series 2016A
(CUSIP 50963N)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2016 15,000 2.000 GE3
2017 30,000 2.000 GF0
2018 35,000 2.000 GG8
2019 40,000 2.000 GH6
2020 40,000 2.000 GJ2
2021 45,000 2.000 GK9
2022 50,000 2.000 GL7
2023 50,000 2.000 GM5
2024 55,000 2.000 GN3
2025 60,000 2.125 GP8
2026 65,000 2.250 GQ6
2027 65,000 2.500 GR4
2028 70,000 2.625 GS2
2029 75,000 2.750 GT0
2030 80,000 3.000 GU7
2031 85,000 3.000 GV5
2032 90,000 3.000 GW3
2033 100,000 3.000 GX1
2034 105,000 3.000 GY9
2035 110,000 3.000 GZ6
2036 115,000 3.000 HA0
2041 695,000 3.125 HB8
2046 925,000 3.250 HC6
This Annual Continuing Disclosure Report (“Report”) for Community Facilities District No. 2006-1 IA CC Special Tax Bonds, Series
2016A of the City of Lake Elsinore (the “District” or “CFD No. 2006-1 IA CC”), has been prepared by Spicer Consulting Group, LLC.
using data as of June 30, 2016 unless noted otherwise. The information referenced by parenthesis complies with the various sections
required from the Form of Continuing Disclosure Agreement for the Bonds. If you have any questions regarding the information
provided in this report, please contact the City’s Special Tax Consultant, Spicer Consulting Group at (866) 504-2067.
1. District Profile Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
Community Facilities District No. 2006-1
Improvement Area CC (Summerly)
Special Tax Bonds, Series 2016A
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, B, CC through FF), and one remainder Improvement Area (Improvement Area 1), which
consisted of nine existing homes which prepaid its Special Taxes. The resolution for dissolving existing improvement areas and
designating new ones (including Improvement Area CC) was adopted in the spring of 2014. In total the Summerly Improvement Area CC
development is expected to include 142 homes.
Location
The boundaries of the District are included within the development generally known as Summerly. The primary entrance to the District is
located at the intersection of Village Parkway with Diamond Drive approximately 0.8 miles from the I-15 freeway. Although not in the
District, the Links at Summerly, a par 72 golf course, is part of the greater Summerly development. The Lake Elsinore Diamond Stadium
is located adjacent to the Summerly development across Diamond Drive.
Series 2016A Bonds (Section 4b)
The Series 2016A Bonds (the “Bonds”) in the amount of $3,000,000 were issued June 29, 2016, with interest rates ranging from 2.00%
to 3.25%. Interest is payable semi-annually on March 1 and September 1. The date for the final maturity of the Bonds is September 1,
2046. The principal amount of the Bonds Outstanding as of September 30, 2016 was $2,985,000.
The Bonds were issued to provide the District with the funds necessary to finance public infrastructure and capital fees related to the
Summerly development; and to fund the interest on the Bonds until September 1, 2016.
CFD No. 2006-1 IA CC has covenanted to not issue the remaining unissued bonds authorized for the District.
Rate and Method of Apportionment (Section 4b)
There were no changes to the Rate and Method of Apportionment during Fiscal Year 2015-16.
2. Special Taxes Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
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 2016-17 tax year was $137,386.60.
The Special Tax rates applied for the 2016-17 tax year are:
Table 2-1
Special Tax Levy (Section 4b)
Land Use Category Parcels
Levy Amount
Per Category
Max Tax
Per Category
1 - Developed Residential (less than 1,100 sq. ft.) 0 $0.00 $0.00
2 - Developed Residential (1,100 - 1,299 sq. ft.) 0 $0.00 $0.00
3 - Developed Residential (1,300 - 1,499 sq. ft.) 0 $0.00 $0.00
4 - Developed Residential (1,500 - 1,699 sq. ft.) 0 $0.00 $0.00
5 - Developed Residential (1,700 - 1,899 sq. ft.) 21 $20,101.62 $30,982.57
6 - Developed Residential (1,900 - 2,099 sq. ft.) 24 $24,324.96 $35,408.65
7 - Developed Residential (2,100 - 2,299 sq. ft.) 28 $29,955.52 $41,310.10
8 - Developed Residential (2,300 - 2,499 sq. ft.) 0 $0.00 $0.00
9 - Developed Residential (2,500 - 2,699 sq. ft.) 10 $11,824.60 $14,753.61
10 - Developed Residential (2,700 - 2,899 sq. ft.) 12 $14,865.12 $17,704.33
11 - Developed Residential (2,900 - 3,099 sq. ft.) 6 $7,645.56 $8,852.16
12 - Developed Residential (3,100 - 3,299 sq. ft.) 14 $22,072.68 $22,072.86
13 - Developed Residential (3,300 - 3,499 sq. ft.) 0 $0.00 $0.00
14 - Developed Residential (3,500 sq. ft. or greater) 2 $4,279.36 $4,279.41
15 - Non-Residential Property (per acre) 0 $0.00 $0.00
16 - Approved Property 25 $2,317.18 $40,577.71
17 - Undeveloped Property (per acre) 0 $0.00 $0.00
Total 142 $137,386.60 $215,941.40
3. Property Ownership Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
The following tables present certain property ownership data of the District.
Table 3-1
Assessed Value-to-Lien Ratios by Property Type Using Assessed Value1 and Debt Outstanding2 (Section 4b)
Property Classification
No. of
Parcels
FY 2016-17
Special Tax
% of
Special Tax
District Bonds
Outstanding
Assessed
Values
Value-to-Lien
Ratio
Developed Property
Individual Owned 48 $53,823.80 39.18% $1,169,430.23 $16,590,659.00 14.19:1
Woodside Homes Owned 38 $38,795.84 28.24% $842,917.59 $4,608,933.00 5.47:1
Ryland Owned 31 $42,449.78 30.90% $922,306.78 $5,206,538.00 5.65:1
Subtotal Developed 117 $135,069.42 98.31% $2,934,654.61 $26,406,130.00 9.00:1
Approved Property
Woodside Homes Owned 5 $463.44 0.34% $10,069.17 $255,555.00 25.38:1
Ryland Owned 20 $1,853.74 1.35% $40,276.23 $1,168,080.00 29.00:1
Subtotal Approved 25 $2,317.18 1.69% $50,345.39 $1,423,635.00 28.28:1
Total 142 $137,386.60 100.00% $2,985,000.00 $27,829,765.00 9.32:1
Table 3-2
Fiscal Year Value-to-Lien Stratification (Section 4b)
Category
Total
Parcels
FY 2016-17
Assigned Tax
FY 2016-17
Special Tax
% of
Special Tax
District Bonds
Outstanding
Assessed
Values
Value-to-Lien
Ratio
Less than 5:1 47 $55,801.42 $55,800.74 40.62% $1,212,383.22 $2,750,792.00 2.27:1
Between 5:1 to 9.99:1 1 $1,576.63 $1,576.62 1.15% $34,255.24 $338,405.00 9.88:1
Between 10:1 to 14.99:1 49 $56,577.50 $56,794.22 41.34% $1,233,968.57 $16,265,577.00 13.18:1
Between 15:1 to 19.99:1 22 $21,115.57 $21,252.58 15.47% $461,755.01 $7,160,871.00 15.51:1
Between 20:1 to 24.99:1 1 $0.00 $131.60 0.10% $2,859.27 $58,404.00 20.43:1
Greater than 25:1 22 $0.00 $1,830.84 1.33% $39,778.68 $1,255,716.00 31.57:1
Total 142 $135,071.13 $137,386.60 100.00% $2,985,000.00 $27,829,765.00 9.32:1
Assessed Valuation (AV) is based on information provided in the Riverside County Assessor’s records as of January 1, 2016 and may or may not accurately reflect true market value.
District Bonds Outstanding – is based off of the September 30, 2016 Principal Outstanding.
4. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
The delinquency summary table below provides an overview of delinquency rates within the District as of June 30 for each Fiscal Year.
Table 4-1
Delinquency Summary (Section 4b)
Fiscal
Year
Levied Delinquent
Parcels Special Taxes Parcels Amount Del. Rate
2015-16 50 $53,672.54 0 $0.00 0.00%
Foreclosure Covenant
The District has covenanted for the benefit of the Owners of the Bonds and any Parity Bonds that it will: (i) commence judicial foreclosure
proceedings against parcels with delinquent Special Taxes in excess of $5,000 by the October 1 following the close of each Fiscal Year
in which such Special Taxes were due; and (ii) commence judicial foreclosure proceedings against all parcels with delinquent Special
Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95%
of the total Special Tax levied; and (iii) diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid;
provided that, notwithstanding the forgoing, the District may elect to defer foreclosure proceedings on any parcel so long as the amount
in the Reserve Account is at least equal to the Reserve Requirement. The District may, but is not obligated to, advance funds from any
source of legally available funds in order to maintain the Reserve Account. The District may treat any delinquent Special Tax sold to an
independent third-party or to the City for at least 100% of the delinquent amount as having been paid. Proceeds of such sale up to 100%
of the delinquent amount will be deposited in the Special Tax Fund.
The District has covenanted that it will deposit the net proceeds of any foreclosure in the Special Tax Fund and will apply such proceeds
remaining after the payment of Administrative Expenses to make current payments of principal and interest on the Bonds and any Parity
Bonds, to bring the amount on deposit on the Reserve Account up to the Reserve Requirement and to pay any delinquent installments
of principal or interest due on the Bonds and any Parity Bonds.
Foreclosure Actions (Section 4b)
There are currently no foreclosure actions pending in the District.
5. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
Table 5-1
Series 2016A Fund Balances as of September 30, 2016 (Section 4b)
Fund Name Balance
Special Tax Fund $0.00
Admin Expense $0.00
Reserve Account $200,549.08
Interest Account $0.00
Principal Account $0.00
Redemption Account $0.00
Cost of Issuance Fund $2,252.02
Rebate Fund $0.00
Surplus Fund $0.00
Acquisition and Construction Fund $0.00
Investments $0.00
Total $202,801.10
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 initial principal amount of the Bonds and any Parity Bonds, (ii) Maximum Annual Debt Service on the then
Outstanding Bonds and Parity Bonds, or (iii) 125% of average Annual Debt Service on the then Outstanding Bonds and Parity Bonds.
Amounts in the Reserve Account will be used to pay debt service on the Bonds to the extent other moneys are not available. Amounts in
the Reserve Account in excess of the Reserve Requirement will be deposited into the Revenue Fund. As of September 30, 2016, the
balance in the Reserve Fund was $200,549.08 and the Reserve Requirement was $200,376.82.
Financial Statements (Section 4)
PLEASE NOTE: The City of Lake Elsinore Fiscal Year ending June 30, 2016 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.
6. Significant Events Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA CC
Fiscal Year Ending June 30, 2016
The following events as set forth in Rule 15c2-12 promulgated by the Securities and Exchange Commission are considered material
by the District. (Section 5)
1. principal or interest payment delinquencies; Not Applicable
2. unscheduled draws on debt service reserves reflecting financial difficulties; Not Applicable
3. unscheduled draws on credit enhancements reflecting financial difficulties; Not Applicable
4. substitution of credit or liquidity providers, or their failure to perform; Not Applicable
5. 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;
Not Applicable
6. defeasances; Not Applicable
7. tender offers; Not Applicable
8. bankruptcy, insolvency, receivership or similar proceedings and; Not Applicable
9. rating changes; Not Applicable
10. merger, consolidation, or acquisition involving the Authority or the sale of all or substantially all of the
assets of the obligated persons or their termination;
Not Applicable
11. appointment of a successor or additional trustee or the change of name of a fiscal agent; Not Applicable
12. nonpayment related defaults; Not Applicable
13. modifications to the rights of bondholders; Not Applicable
14. bond calls; and Not Applicable
15. release, substitution or sale of property securing repayment of the Bonds.
Notice for events described in Section 5(a), subsections 4 and 5 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.
Appendix A
Debt Service Schedule
Appendix B
California Debt and Investment Advisory Commission
Appendix C
Boundary Map
BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2006-1IMPROVEMENT AREA CC (SUMMERLY)