HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit K Wasson Canyon CFD 2005-5 2012ATable of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2005-5
Fiscal Year Ending June 30, 2016
Sections
1. District Profile 1
2. Property Ownership 2
3. Payment History 3
4. Bond Funds 4
5. Listed Events 5
Tables
Table 2-1 Fiscal Year 2016-17 Property Breakdown by Development Status 2
Table 2-2 Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values 2
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. 2005-5
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 2005-5
Local Agency Revenue Bonds, 2012 Series A
(CUSIP 509632)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2013 $25,000 1.500% FW0
2014 $40,000 2.000% FX8
2015 $45,000 2.250% FY6
2016 $55,000 2.500% FZ3
2017 $60,000 2.750% GA7
2018 $65,000 3.000% GB5
2019 $75,000 3.375% GC3
2020 $80,000 3.625% GD1
2021 $85,000 3.875% GE9
2022 $95,000 4.000% GF6
2023 $105,000 4.000% GG4
2024 $110,000 4.000% GH2
2025 $125,000 4.125% GJ8
2038 $2,485,000 5.250% GK5
This Continuing Disclosure Report (“Report”) for Community Facilities District No. 2005-5 Local Agency Revenue Bonds, 2012 Series
A of the City of Lake Elsinore (the “District” or “CFD No. 2005-5”), has been prepared by Spicer Consulting Group, LLC. using data as
of June 30, 2016 unless noted otherwise. The information referenced by the 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. 2005-5
Fiscal Year Ending June 30, 2016
Community Facilities District No. 2005-5
(Villages at Wasson Canyon)
Local Agency Revenue Bonds 2012 Series A
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 (Section 4a)
The 2012 Series A Bonds (the “Bonds”) in the amount of $3,450,000 were issued July 17, 2012, with interest rates ranging from 1.50%
to 5.25%. 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, 2016 was $3,225,000.
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.
Rate and Method of Apportionment
There were no changes to the Rate and Method of Apportionment during Fiscal Year 2015-16.
Additional Bonds
No Additional Bonds or Local Obligation Parity Bonds have been issued by the Authority or by any of the Districts.
2. Property Ownership Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2005-5
Fiscal Year Ending June 30, 2016
The following tables present certain property ownership data and the development status of the District.
Table 2-1
Fiscal Year 2016-17 Property Breakdown by Development Status
Development
Status Parcels
Total Special Tax
FY 2016-17
% of Total
Special Tax Land Value
Structure
Value
Total Assessed
Value
% of
Total AV
Developed 190 $265,322.74 100.00% $15,968,218.00 $43,470,733.00 $59,438,951.00 100.00%
All Others 0 $0.00 0.00% $0.00 $0.00 $0.00 0.00%
Total 190 $265,322.74 100.00% $15,968,218.00 $43,470,733.00 $59,438,951.00 100.00%
Major Taxpayers
There are no property owners in the District responsible for more than 5% of the aggregate Special Tax Levy. (Section 4f)
Table 2-2
Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values1 (Section 4c)
Value-to-Lien Parcels
Total
Assessed Value
Lake Elsinore
2012 Series A
(CFD 2005-5)
All Other
Outstanding Debt
Total
Outstanding Debt Value-to-Lien
Less than 6:1 5 $1,080,116.00 $85,010.70 $98,885.02 $183,895.72 5.87:1
Between 6 - 6.99:1 22 $5,450,515.00 $387,343.70 $441,840.25 $829,183.95 6.57:1
Between 7 - 7.99:1 21 $5,893,199.00 $363,190.03 $415,729.25 $778,919.27 7.57:1
Between 8 - 8.99:1 51 $15,583,390.00 $848,957.64 $985,161.45 $1,834,119.09 8.50:1
Between 9 - 9.99:1 81 $27,786,674.00 $1,374,273.34 $1,586,293.77 $2,960,567.10 9.39:1
Greater than 10:1 10 $3,645,057.00 $166,224.59 $192,090.27 $358,314.87 10.17:1
Totals 190 $59,438,951.00 $3,225,000.00 $3,720,000.00 $6,945,000.00 8.56:1
Prepayments (Section 4h)
There have been no prepayments of the Special Tax for the prior Fiscal Year.
1 Assessed Valuation (AV) is based on information provided in the Riverside County Assessor’s records as of January 1, 2016 and may not accurately reflect true market value.
3. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2005-5
Fiscal Year Ending June 30, 2016
Delinquency Summary (Section 4d)
There were no delinquent parcels in the District as of October 2016. Therefore, there are no delinquent parcels representing more than
5% of the aggregate Special Tax.
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 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.
Collection and Foreclosure Actions (Section 4e)
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.
4. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2005-5
Fiscal Year Ending June 30, 2016
Reserve Fund (Section 4b)
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. Provided, however, the Reserve Requirement on any calculation
date shall not be greater than the Reserve Requirement amount on the closing date, $272,887.50. 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 September 30, 2016
the balance in the Reserve Fund was $264,339.13 and the Reserve Requirement was $264,325.00.
Financial Statements (Section4)
PLEASE NOTE: The City of Lake Elsinore Fiscal Year ended 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. Listed Events Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2005-5
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. 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; 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
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;
Not Applicable
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 occur as
described below;
Not Applicable
13. appointment of a successor or additional trustee or the change of name of a trustee, if material, or; Not Applicable
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
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. 2005-5(VILLAGES AT WASSON CANYON)