HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit D LARB 2014BTable of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Sections
1. District Profile 1
2. Property Ownership 2
3. Payment History 3
4. Bond Funds 5
5. Listed Events 6
Tables
Table 2-1 Improvement Area A Fiscal Year 2016-17 Special Tax 2
Table 2-2 Improvement Area C Fiscal Year 2016-17 Special Tax 2
Table 3-1 Improvement Area A Delinquency Summary 3
Table 3-2 Improvement Area C Delinquency Summary 3
Table 4-1 Fund Balances 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 A and C
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Areas A and C
Local Agency Revenue Bonds, 2014 Series B
(CUSIP 509632)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2015 260,000 3.000 KM6
2016 370,000 3.000 KN4
2017 400,000 3.500 KP9
2018 435,000 4.000 KQ7
2019 480,000 4.000 KR5
2020 530,000 5.000 KS3
2021 575,000 5.000 KT1
2022 630,000 5.000 KU8
2023 670,000 5.000 KV6
2024 720,000 3.375 KW4
2025 765,000 3.500 KX2
2026 805,000 3.625 KY0
2027 845,000 3.750 KZ7
2028 890,000 4.000 LA1
2029 935,000 5.000 LB9
2030 1,000,000 5.000 LC7
2031 1,045,000 5.000 LD5
2032 1,115,000 5.000 LE3
2033 1,180,000 5.000 LF0
2034 1,255,000 5.000 LG8
2035 455,000 4.250 LH6
2036 490,000 4.250 LJ2
2040 2,360,000 5.000 LK9
This Annual Continuing Disclosure Report (“Report”) for Community Facilities District No. 2003-2 Improvement Area A and C Local
Agency Revenue Bonds, 2014 Series B of the City of Lake Elsinore, 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. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Community Facilities District No. 2003-2
Improvement Area A and C (Canyon Hills)
Local Agency Revenue Bonds 2014 Series B
Project Description
On January 13, 2004, the City formed Community Facilities District No. 2003-2 (the "District"). The District originally consists of four
improvement areas (Improvement Areas A through D). Each Improvement Area has a separate Rate and Method of Apportionment of
Special Tax approved by the City and the qualified electors within each respective Improvement Area. The rate and method of
apportionment was amended in 2009.
The District is comprised of a portion of Canyon Hills, a planned residential community in the western portion of Riverside County (the
"County") covering approximately 2,050 gross acres. The District includes the development of 50 planning areas containing a total of
approximately 1,022 net acres. The areas designated for single family dwelling units contain approximately 780 acres. The area
designated for multi-family dwelling units including detached condominiums contains approximately 93 acres. The area designated for
commercial uses consists of approximately 31 acres.
On April 12, 2016 the City Annexed Improvement Area E, consisting of 74 detached single family residential properties into the District.
Two Improvement Areas, Improvement Area A and Improvement Area C (the “Districts”) were included in securing bonds described
below.
Improvement Area A
The adopted District resolutions authorize the issuance of Bonds to fund the planning, design, permitting and construction of the Facilities
consisting primarily of street, sewer, water, storm drain and park improvements and the construction of a fire station as well as the funding
of Facilities included in the City and Elsinore Valley Municipal Water District fee programs. The development of 599 homes within
Improvement Area A started in January 2004 and is now completed.
Improvement Area C
The District is authorized to fund the planning, design, permitting and construction of public infrastructure consisting primarily of street,
sewer, water, storm drain and park facilities, as well as the funding of certain City and Elsinore Valley Municipal Water District fees. The
development of 440 planned residential units within Improvement Area C, has been completed.
Location
The District is comprised of a portion of Canyon Hills, a planned residential community in the western portion of Riverside County covering
approximately 2040 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).
located in the southeast portion if the City, to the south of Canyon Lake.
2014 Series A Bonds (Section 4a)
The 2014 Series B Bonds (the “Bonds”) in the amount of $18,210,000 were issued July 31, 2014, with interest rates ranging from 3.00%
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,
2040. The principal amount of the Bonds Outstanding as of September 30, 2016 is $17,580,000.
Additional Bonds
In addition to the 2014 Series B Bonds Community Facilities District No. 2003-2 IA C has Local Agency Revenue Bonds 2012 Series C
Bonds in the amount of $5,335,000 outstanding.
1. District Profile Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Rate and Method of Apportionment
There were no changes to the Rate and Method of Apportionment during Fiscal Year 2015-16.
2. Property Ownership Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
The following tables present the Special Taxes, Assessed Valuation, and development status of the Districts for Fiscal Year 2016-17.
(Section 4e)
Table 2-1
Improvement Area A
Fiscal Year 2016-17 Special Tax
Development
Status Parcels
Total Special Taxes
FY 2016-17
% of Total
Special Tax Land Value Structure Value
Total Assessed
Value FY 2016-17
% of
Total AV
Developed 599 $856,072.08 100.00% $44,178,581.00 $103,597,020.00 $147,775,601.00 100.00%
Total 599 $856,072.08 100.00% $44,178,581.00 $103,597,020.00 $147,775,601.00 100.00%
Table 2-2
Improvement Area C
Fiscal Year 2016-17 Special Tax
Development
Status Parcels
Total Special Taxes
FY 2016-17
% of Total
Special Tax Land Value Structure Value
Total Assessed
Value FY 2016-17
% of
Total AV
Developed 440 $742,380.56 100.00% $35,097,544.00 $91,186,950.00 $126,284,494.00 100.00%
Total 440 $742,380.56 100.00% $35,097,544.00 $91,186,950.00 $126,284,494.00 100.00%
3. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Delinquencies are calculated through October 2016. The delinquency summary tables below provide an overview of delinquency rates
for previous years. (Section 4c)
Table 3-1
Improvement Area A
Delinquency Summary
Fiscal
Year
Levied Delinquent
Parcels Special Tax Parcels Amount Del. Rate
2011-12 585 $892,631.70 0 $0.00 0.00%
2012-13 594 $919,849.76 0 $0.00 0.00%
2013-14 594 $938,491.84 1 $1,339.48 0.14%
2014-15 599 $843,165.54 1 $1,191.44 0.14%
2015-16 599 $843,091.34 3 $3,374.30 0.40%
Total 2,971 $4,437,230.18 3 $5,905.22 0.13%
Table 3-2
Improvement Area C
Delinquency Summary
Fiscal
Year
Levied Delinquent
Parcels Special Tax 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 4d)
With respect to Improvement Area A, the District will review the public records of the County in connection with the collection of the
Special Tax not later than July 31 of each year to determine the amount of Special Tax collected in the prior Fiscal Year; and with
respect to individual delinquencies, 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 District determines that any single property
owner subject to the Special Tax is delinquent in the payment of Special Taxes in the aggregate of $10,000 or more or delinquent in
the payment of three consecutive installments of Special Tax or that the delinquent Special Tax represent more than 5% of the aggregate
Special Taxes levied within Improvement Area A or if there has been a draw on the funds on deposit in the Reserve Account established
under the Indenture as a result of a delinquency in the payment of the Improvement Area A bonds, and if the delinquency remains
uncured, the District will cause judicial foreclosure proceedings to be filed in the superior court against all properties for which the
Special Taxes remain delinquent.
With respect to Improvement Area C, the District will review the public records of the County 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 $1,500 or more or that the delinquent Special Taxes represent more than 5% of the
aggregate Special Taxes levied within Improvement Area C, 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 forty-five (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 ninety (90) days of such
determination against all properties for which the Special Taxes remain delinquent.
There are no foreclosure actions at this time.
3. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Prepayments (Section 4h)
There have been no prepayments of the Special Tax for Fiscal Year 2015-16.
4. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2003-2 IA A and C
Fiscal Year Ending June 30, 2016
Fund Balances and requirements are listed in the table below.
Table 4-1
Fund Balances (Section 4b)
Account Requirement
September 30, 2016
Balance
Reserve Account $1,467,904.54 $1,467,984.73
Cash Flow Management Fund $221,386.88 $221,970.00
Delinquency Management Fund $236,587.50 $246,113.19
Total $1,925,878.92 $1,936,067.92
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 $1,467,984.73 and the Reserve Requirement was $1,467,904.54.
Cash Flow Management Account
A Cash Flow Management Fun was established under the Indenture which will be held by the Trustee. On September 2 of each year,
commencing September 2, 2014 (or the next business day to the extent September 2 is not a business day), the trustee will transfer any
amounts on deposit in the Revenue Fund to the Cash Flow Management Fund. The Cash Flow Management Fund Requirement is, as
of any calculation date, an amount equal to 15% of the Maximum Annual Debt Service. As of September 30, 2016, the balance in the
Cash Flow Management Fund was $221,970.00 and the Requirement was $221,386.88.
Delinquency Management Account
Each Fiscal Agent Agreement establishes a Delinquency Management Fund held by the Fiscal Agent. On September 2 of each year,
commencing September 2, 2014, the Fiscal Agent will transfer any amount remaining in the Special Tax Fund following disbursement to
the Interest Account and the Principal Account to the Delinquency Management Fund. Moneys in the Delinquency Management Fund
Shall be held by the Fiscal Agent for the benefit of the Owners of the Bonds. The Delinquency Management Fund Requirement is, as of
any calculation date, an amount equal to 15% of the Maximum Annual Debt Service for the respective series of Local Obligations.As of
September 30, 2016, the balance in the Delinquency Management Fund was $246,113.19 and the Requirement was $236,587.50.
Financial Statements (Section 4g)
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 A and 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 A (CANYON HILLS)
BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2003-2IMPROVEMENT AREA C (CANYON HILLS)