HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit B Canyon Hills CFD 2003-2 IA C 2012CTable of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
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. Listed Events 6
Tables
Table 2-1 Fiscal Year 2016-17 Special Tax Levy 2
Table 3-1 Fiscal Year 2016-17 Property Breakdown by Development Status 3
Table 3-2 Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Value and Overlapping Debt 3
Table 4-1 Delinquency Summary 4
Table 5-1 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. 2003-2 IA C
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 2003-2 IA C
Local Agency Revenue Bonds, 2012 Series C
(CUSIP 509632)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2015 $5,000 2.000% GW9
2016 $5,000 2.250% GX7
2017 $15,000 2.625% GY5
2018 $20,000 2.875% GZ2
2019 $25,000 3.250% HA6
2020 $30,000 3.500% HB4
2021 $35,000 3.750% HC2
2022 $45,000 4.000% HD0
2023 $55,000 4.125% HE8
2024 $65,000 4.000% HF5
2025 $70,000 4.125% HG3
2026 $80,000 4.125% HH1
2027 $90,000 4.125% HJ7
2032 $630,000 5.000% HK4
2037 $1,015,000 5.000% HL2
2042 $3,160,000 5.000% HM0
This Annual Continuing Disclosure Report (“Report”) for Community Facilities District No. 2003-2 IA C Local Agency Revenue Bonds,
2012 Series C of the City of Lake Elsinore (the “District” or “CFD No. 2003-2 IA C”), has been prepared by Spicer Consulting Group,
LLC. using data as of June 30, 2016 unless noted otherwise. The information referenced in 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. 2003-2 IA C
Fiscal Year Ending June 30, 2016
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. Proceeds from the sale of the 2012 Series C Bonds (the “Bonds”) will be used to provide the
District with funds to finance public infrastructure and capital fees related to Improvement Area C, to fund interest on the 2012 Series C
Bonds, and to pay the expenses of the District in connection with the issuance of the 2012 Series C Bonds. 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 comprised of a portion of Canyon Hills, a planned residential community in the western portion of Riverside County covering
approximately 2,040 acres. Canyon Hills is located in the southeast portion of the City to the south of the City of Canyon Lake.
Improvement Area C is located near the intersection of Hillside Drive and Canyon Hills Road, one mile southeast of Railroad Canyon
Road. The intersection of Canyon Hills Road and Railroad Canyon Road is approximately 2-1/2 miles east of the Corona Freeway (I-
15).
2012 Series C Bonds (Section 4a)
The Local Agency Revenue Bonds 2012 Series C in the amount of $5,345,000 were issued December 20, 2012, with interest rates
ranging from 2.00% to 5.00%. 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, 2016 was $5,335,000.
The Bonds were used to finance the public infrastructure and capital fees relating to CFD No. 2003-2 IA 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 which were refunded on July 31,
2014 by the 2014 Series B Local Agency Revenue Bonds in the amount of $7,315,000.
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.
2. Special Taxes Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
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 Special Tax rates applied for the 2016-17 tax year are:
Table 2-1
Fiscal Year 2016-17 Special Tax Levy (Section 4h)
Zone
Levied
Parcels
Special Tax Levy
FY 2016-17
Max Special Tax
FY 2016-17
% of Maximum
Special Tax
Zone 1 46 $88,449.02 $149,324.42 12.47%
Zone 2 394 $653,931.54 $1,047,855.83 87.53%
Total 440 $742,380.56 $1,197,180.25 100.00%
3. Property Ownership Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
Fiscal Year Ending June 30, 2016
The following tables present certain property ownership data and the development status of the District. There are no undeveloped
parcels in the District for Fiscal Year 2016-17.
Table 3-1
Fiscal Year 2016-17 Property Breakdown by Development Status
Development Status Parcels
Total Special Taxes
FY 2016-17
% of Total
Special Taxes
Total AV
FY 2016-17 % of Total AV
Developed 440 $742,380.56 100.00% $126,284,494.00 100.00%
Major Taxpayers (Section 4g)
There are no property owners in the District responsible for more than 5% of the aggregate Special Tax levy within the District.
Table 3-2
Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values1 and Overlapping Debt2 (Section 4d)
Category Parcels
Total
Assessed Value
Lake Elsinore
2012 Series C
(CFD 2003-2)
All Other
Overlapping Debt
Total Overlapping
Debt
Value-to-Lien
Ratios
Less than 6:1 4 $821,454.00 $50,757.13 $92,507.06 $143,264.19 5.73:1
Between 6 - 6.99:1 19 $4,757,672.00 $256,164.46 $458,495.88 $714,660.34 6.66:1
Between 7 - 7.99:1 140 $38,932,411.00 $1,815,435.07 $3,323,686.93 $5,139,122.00 7.58:1
Between 8 - 8.99:1 179 $51,626,756.00 $2,133,567.93 $3,996,420.69 $6,129,988.62 8.42:1
Between 9 - 9.99:1 77 $23,617,905.00 $868,089.89 $1,644,058.25 $2,512,148.14 9.40:1
Greater than 10:1 21 $6,528,296.00 $210,985.52 $408,090.03 $619,075.54 10.55:1
Total 440 $126,284,494.00 $5,335,000.00 $9,923,258.84 $15,258,258.84 8.28:1
Prepayments (Section 4j)
There have been no prepayments of the Special Tax for Fiscal Year 2015-16.
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.
2 Overlapping Debt information as of September 30, 2016.
4. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
Fiscal Year Ending June 30, 2016
Delinquencies are calculated through October 2016. 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 (Section 4e)
Tax Year
Levied Delinquent
Parcels Special Taxes Parcels Amount Del. Rate
2011-12 267 $491,404.52 0 $0.00 0.00%
2012-13 355 $647,364.30 0 $0.00 0.00%
2013-14 435 $784,847.72 1 $957.61 0.12%
2014-15 440 $709,538.38 1 $1,708.72 0.24%
2015-16 440 $712,482.46 2 $3,232.02 0.45%
Total 1,937 $3,345,637.38 2 $5,898.35 0.18%
Foreclosure Covenant Section 4f)
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 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.
There are no foreclosure actions at this time.
5. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
Fiscal Year Ending June 30, 2016
Table 5-1
Fund Balances as of September 30, 2016 (Section 4b and 4c)
Account Requirement Balance
Reserve Account $514,415.51 $534,529.65
Improvement Fund $0.00 $0.00
Total $534,529.65
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. Provided, however, the Reserve Requirement on any calculation
date shall not be greater than the Reserve Requirement amount on the closing date, $534,500.00. 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 Reserve Fund was $534,529.65 and the Reserve Requirement was $521,408.65.
Improvement Fund
Moneys in the Improvement Fund shall be invested and deposited by the Fiscal Agent in accordance with the Fiscal Agent Agreement.
Interest earnings and profits from such investment and deposit shall be retained in the Improvement Fund until all Facilities have been
fully funded. Upon closing the Improvement Fund, all amounts remaining in the Improvement Fund shall be transferred for deposit in the
Redemption Fund to be used for the purposes of such fund.
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. Listed Events Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA C
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 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
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. 2003-2IMPROVEMENT AREA C (CANYON HILLS)