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HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit E PFA 2015Table of Contents City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Sections 1. District Profile 1 2. Bond Funds 6 3. Special Taxes 10 4. Value-to-Lien 11 5. Payment History 12 6. Significant Events 15 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 PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 City of Lake Elsinore Public Financing Authority Local Agency Revenue Refunding Bonds, Series 2015 (CUSIP 509632) Maturity Date September 1 Principal Interest Rate CUSIP Suffix 2015 1,535,000 2.000 MH5 2016 1,510,000 2.000 MJ1 2017 1,675,000 3.000 MK8 2018 1,870,000 4.000 ML6 2019 2,065,000 4.000 MM4 2020 2,295,000 5.000 MN2 2021 2,535,000 5.000 MP7 2022 2,785,000 5.000 MQ5 2023 3,075,000 5.000 MR3 2024 3,375,000 5.000 MS1 2025 3,685,000 5.000 MT9 2026 3,895,000 5.000 MU6 2027 4,245,000 5.000 MV4 2028 4,615,000 5.000 MW2 2029 4,985,000 5.000 MX0 2030 5,405,000 5.000 MY8 2031 5,845,000 5.000 MZ5 2035 28,170,000 5.000 NA9 2036 7,545,000 4.000 NB7 2040 17,735,000 5.000 NC5 This Annual Continuing Disclosure Report (“Report”) for Community Facilities District Nos. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2 IA A, 2005-6, and 2006-2 Local Agency Revenue Refunding Bonds, Series 2015 of the City of Lake Elsinore (the “Districts”), has been prepared by Spicer Consulting Group, LLC. using data as of June 30, 2016 unless noted otherwise. The information referenced by parenthesis compiles 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 PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Lake Elsinore Public Financing Authority Local Agency Revenue Refunding Bonds Series 2015 Bond Profile (Section 4b) The Lake Elsinore Public Financing Authority Local Agency Refunding Bonds Series 2015 (the “Bonds”) were issued in the aggregat e principal amount of $108,845,000, with interest rates ranging from 2.00% to 5.00% on March 18, 2015. Interest on the Bonds is payable semi annually on March 1 and September 1 and the final maturity of the Bonds is September 1, 2040. The amount of Bonds outstanding as of September 2, 2016, is $105,540,000. The Bonds were issued to acquire the Program Obligations of Community Facilities District Nos. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2 IA A, 2005-6, and 2006-2; please see following Report for information regarding these Districts. The Bonds were issued to refund outstanding bonds issued by the Districts and, with respect to certain Districts, to finance the acquisition of public capital facilities. Rate and Method of Apportionment (Section 4b) There were no changes to the Rate and Method of Apportionment for any of the districts during Fiscal Year 2015-2016. Additional Bonds (Section 4b) No Additional Bonds or Local Obligation Parity Bonds have been issued by the Authority or by any of the Districts. 1. District Profile Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Community Facilities District No. 95-1 (City Center) Project Description In November of 1995 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 95-1 (the “CFD No. 95-1”). Pursuant to Resolution No. PFA 95-4, adopted by the Authority on December 12, 1995, the Authority issued its 1996 Local Agency Revenue Bonds, Series E (the “Authority 1996E Bonds”) in the principal amount of $1,750,000 of which $1,300,000 remained outstanding. A portion of the proceeds of the Bonds, together with certain other funds, will be used to redeem the Authority 1996E Bonds. The Bonds are also being issued to provide funds to acquire the 2011 District bonds on the date of delivery of the Bonds, to fund the Reserve Fund, and to pay the expenses of the Authority in connection with the issuance of the Bonds. Location The District is part of the Lake Elsinore City Center (the “Shopping Center”) located at the northwest quadrant of Grape Street and Railroad Canyon Road adjacent to Interstate Highway 15. Series 2015 Bonds (Section 4b) The CFD No. 95-1 2015 Special Tax Refunding Bonds (the “CFD No. 95-1 Bonds”) refunded the outstanding 2011 Local Agency Revenue Bonds, previously issued by CFD No. 95 1 on December 1, 2011. The CFD No. 95-1 Bonds were issued in the aggregate principal amount of $1,030,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 95-1 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 95-1 Bonds is September 1, 2025. The amount of CFD No. 95-1 Bonds outstanding as of September 2, 2016, is $940,000. CFD No. 95-1 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 2003- 2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2 IA A, 2005-6, and 2006-2. Community Facilities District No. 2003-2 Improvement Area B (Canyon Hills) Project Description On January 13, 2004 the City of Lake Elsinore (the “City”) formed Community Facilities District 2003-2 Improvement Area B (the “CFD No. 2003-2 IA B”). The bond authorization amount approved for Improvement Area B was $37,000,000. CFD No. 2003-2 IA B encompasses the 426.46-acre third phase of the 1,969-acre master planned community known as Canyon Hills. The proceeds of the Bonds were used to finance the planning, designing, permitting, acquisition and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities, certain City and Elsinore Valley Municipal Water District fees (the “Facilities”), to fund interest on the Bonds, to pay the expenses of CFD No. 2003-2 IA B and the master developer in connection with the issuance of the Bonds, and to make a deposit to the Reserve Account. Location The majority of CFD No. 2003-2 IA B is located near the intersection of Hillside Drive and Canyon Hills Road, one mile southeast of Railroad Canyon Road. The balance of CFD No. 2003-2 IA B is located adjacent to Railroad Canyon Road northwest of the intersection of Canyon Hills Road. The intersection of Canyon Hills Road and Railroad Canyon Road is approximately 2-1/2 miles east of the Corona Freeway (I-15). Series 2015 Bonds (Section 4b) CFD No. 2003-2 IA B 2015 Special Tax Refunding Bonds (the “CFD No. 2003-2 Bonds”) refunded the outstanding 2006 Series A Specia l Tax Bonds, previously issued by CFD No. 2003-2 IA B on September 7, 2006. The CFD No. 2003-2 Bonds were issued in the aggregate principal amount of $25,795,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD 1. District Profile Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 No. 2003-2 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2003-2 Bonds is September 1, 2040. The amount of CFD No. 2003-2 Bonds outstanding as of September 2, 2016, is $25,250,000. CFD No. 2003-2 IA B is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2 IA A, 2005-6, and 2006-2. Community Facilities District No. 2004-3 Improvement Area 1 (Rosetta Canyon) Project Description In March of 2005 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2004-3 Improvement Area 1 (the “CFD No. 2004-3 IA 1”). CFD No. 2004-3 IA 1 was formed to finance public infrastructure facilities including but not limited to, streets, streetscape, storm drain, water and sewer facilities, fire station, fire equipment, city fees and fees of the Elsinore Valley Municipal Water District, and related costs including designs, inspections, professional fees, annexation fees, connections fees, and acquisition costs, and for the purpose of paying principal and interest on bonds issued with respect to each improvement area. Location The boundaries of CFD No. 2004-3 IA 1 coincide with the development generally known as Rosetta Canyon. CFD No. 2004-3 IA 1 is located 1 ½ miles east of interstate 15 freeway and south of Highway 74. Rosetta Canyon is planned for a total of 1,012 single family homes on 180.6 acres. Development within Improvement Area No. 1 is planned for 509 single family homes on approximately 94.9 gross acres. Series 2015 Bonds (Section 4b) The CFD No. 2004-3 IA 1 2015 Special Tax Refunding Bonds (the “CFD No. 2004-3 IA 1 Bonds”) refunded the outstanding 2005 Series A Special Tax Bonds, previously issued by CFD No. 2004-3 IA 1 on August 18, 2005. The CFD No. 2004-3 IA 1 Bonds were issued in the aggregate principal amount of $21,005,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 2004-3 IA 1 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2004-3 IA 1 Bonds is September 1, 2035. The amount of CFD No. 2004-3 IA 1 Bonds outstanding as of September 2, 2016, is $20,250,000. CFD No. 2004-3 IA 1 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 2, 2005-1, 2005-2 IA A, 2005-6, and 2006-2. Community Facilities District No. 2004-3 Improvement Area 2 (Rosetta Canyon) Project Description In March of 2005 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2004-3 Improvement Area 2 (the “CFD No. 2004-3 IA 2”). CFD 2004-3 IA 2 was formed to finance the pur chase, construction, expansion or rehabilitation of public improvements needed to meet increased demand upon the City as a result of development within the boundaries of CFD No. 2004-3 IA 2. Facilities financed include street, storm drain, sewer, domestic water, reclaimed water improvements, fire facilities, fire equipment, City development impact fees, Elsinore Valley Municipal Water District sewer and water master planning, and connection fees. Location The boundaries of CFD No. 2004-3 IA 2 coincide with the developme nt generally known as “Rosetta Canyon.” CFD No. 2004-3 IA 2 is located 1 ½ miles east of the interstate 15 freeway and south of Highway 74. Development within Improvement Area No. 2 is planned for 503 single family homes on approximately 153.31 gross acres. 1. District Profile Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Series 2015 Bonds (Section 4b) The CFD No. 2004-3 IA 2 2015 Special Tax Refunding Bonds (the “CFD No. 2004-3 IA 2 Bonds”) refunded the outstanding 2006 Series A Special Tax Bonds, previously issued by CFD No. 2004-3 IA 2 on September 19, 2006. The CFD No. 2004-3 IA 2 Bonds were issued in the aggregate principal amount of $23,115,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 2004-3 IA 2 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2004-3 IA 2 Bonds is September 1, 2039. The amount of CFD No. 2004-3 IA 2 Bonds outstanding as of September 2, 2016, is $22,555,000. CFD No. 2004-3 IA 2 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 1, 2005-1, 2005-2 IA A, 2005-6, and 2006-2. Community Facilities District No. 2005-1 (Serenity) Project Description In January of 2005 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2005-1 (the “CFD No. 2005-1”). CFD No. 2005-1 is authorized to issue the Bonds to fund the planning, design, permitting and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities as well as the funding of certain City and Elsinore Valley Municipal Water District Fees. Location The boundaries of CFD No. 2005-1 coincide with the development generally known as Serenity. CFD No. 2005-1 is located in the southern portion of the City, 3 miles east of Interstate 15 freeway at Baxter Street. The Serenity residential community is planned for a total of 233 detached single family homes on approximately 77.6 acres. Series 2015 Bonds (Section 4b) The CFD No. 2005-1 2015 Special Tax Refunding Bonds (the “CFD No. 2005-1 Bonds”) refunded the outstanding 2006 Series A Special Tax Bonds, previously issued by CFD No. 2005-1 on February 7, 2006. The CFD No. 2005-1 Bonds were issued in the aggregate principal amount of $8,165,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 2005-1 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2005-1 Bonds is September 1, 2036. The amount of CFD No. 2005-1 Bonds outstanding as of September 2, 2016, is $7,745,000. CFD No. 2005-1 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-2 IA A, 2005-6, and 2006-2. Community Facilities District No. 2005-2 Improvement Area A (Alberhill Ranch) Project Description In September of 2005 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2005-2 (the “CFD No. 2005-2”). CFD No. 2005-2 is authorized to issue the Bonds to fund the planning, design, permitting and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities as well as the funding of certain City and Elsinore Valley Municipal Water District fees. 1. District Profile Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Location The boundaries of CFD No. 2005-2 coincide with the development generally known as Alberhill Ranch. CFD No. 2005-2 is located in the northern portion of the City, 1 ½ miles east of the Interstate 15 freeway and south Lake Street. Alberhill Ranch is planned for a total of 1,181 single family homes and approximately 389 multifamily units on approximately 489 gross acres. Series 2015 Bonds (Section 4b) The CFD No. 2005-2 IA A 2015 Special Tax Refunding Bonds (the “CFD No. 2005-2 Bonds”) refunded the outstanding 2005 Series A Special Tax Bonds, previously issued by CFD No. 2005-2 IA A on December 20, 2005. The CFD No. 2005-2 Bonds were issued in the aggregate principal amount of $21,095,000, with interest rates ranging from 2.7246% to 4.6638 %, and were issued March 18, 2015. Interest on the CFD No. 2005-2 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2005- 2 Bonds is September 1, 2036. The amount of CFD No. 2005-2 Bonds outstanding as of September 2, 2016, is $20,430,000. CFD No. 2005-2 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-6, and 2006-2. Community Facilities District No. 2005-6 (City Center Townhomes) Project Description In September of 2005 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2005-6 (the “CFD No. 2005-6”). CFD No. 2005-6 is authorized to issue the Bonds to fund the planning, design, permitting and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities as well as the funding of certain City and Elsinore Valley Municipal Water District fees. Location CFD No. 2005-6 is generally located adjacent to and east of Grape Street near the intersection of Grape Street and Railroad Canyon. The development within CFD No. 2005-6 is planned for 144 attached single family housing units in condominium ownership on approximately 14.2 gross acres. Series 2015 Bonds (Section 4b) The CFD No. 2005-6 2015 Special Tax Refunding Bonds (the “CFD No. 2005-6 Bonds”) refunded the outstanding 2006 Series A Special Tax Bonds, previously issued by CFD No. 2005-6 on May 4, 2006. The CFD No. 2005-6 Bonds were issued in the aggregate principal amount of $2,815,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 2005- 6 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2005-6 Bonds is September 1, 2036. The amount of CFD No. 2005-6 Bonds outstanding as of September 2, 2016, is $2,720,000. CFD No. 2005-6 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2, and 2006-2. Community Facilities District No. 2006-2 (Viscaya) Project Description In April of 2006 the City of Lake Elsinore (the “City”) formed Community Facilities District No. 2006-2 (the “CFD No. 2006-2”). CFD No. 2006-2 is authorized to issue the Bonds to fund the planning, design, permitting, acquisition and construction of public infrastructure consisting primarily of street, sewer, water, storm drain, park facilities as well as the funding of certain City and Elsinore Valley Municipal Water District fees. 1. District Profile Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Location CFD No. 2006-2 is generally located approximately 2 miles southwest of Interstate 15 freeway near the southwest corner of Lakeshore Drive and Riverside Drive. The development within CFD No. 2006-2 is planned for 168 detached residential units on approximately 15.6 net acres. Series 2015 Bonds (Section 4b) The CFD No. 2006-2 2015 Special Tax Refunding Bonds (the “CFD No. 2006-2 Bonds”) refunded the outstanding 2006 Series A Special Tax Bonds, previously issued by CFD No. 2005-6 on July 12, 2006. The CFD No. 2006-2 Bonds were issued in the aggregate principal amount of $5,825,000, with interest rates ranging from 2.00% to 5.00%, and were issued March 18, 2015. Interest on the CFD No. 2006- 2 Bonds is payable semi annually on March 1 and September 1. The final maturity of the CFD No. 2006-2 Bonds is September 1, 2036. The amount of CFD No. 2006-2 Bonds outstanding as of September 2, 2016, is $5,650,000. CFD No. 2006-2 is one of the eight Local Obligations of the City of Lake Elsinore Public Financing Authority Refunding Revenue Bonds Series of 2015. The City of Lake Elsinore PFA Marks Roos Revenue Pool is also comprised of Community Facilities District No. 95-1, 2003-2 IA B, 2004-3 IA 1, 2004-3 IA 2, 2005-1, 2005-2, and 2005-6. 2. Bond Funds Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 The Reserve Fund is established and maintained at the Authority level and the Reserve Requirement is defined as; at any date of calculation, an amount equal to the lowest of (i) %10 of the initial principal amount of the Bonds, (ii) Maximum Annual Debt Service on the Outstanding Bonds, or (iii) 125% of the average Annual Debt Service on the Outstanding Bonds. In no event shall the Reserve Requirement exceed the initial deposit thereto except in connection with any increase associated with the issuance of Additional Bonds the proceeds of which are used to acquire Local Obligations issued to finance the Project. 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. The Reserve Requirement applies to the Authority and allocates a pro rata share to each Local Obligation. Table 2-1 Reserve Fund (Section 4b) Account Reserve Requirement Balance as of September 2, 2016 LAKE ELSINORE PFA 2015 95-1 RES $87,669.45 $87,717.58 LAKE ELSINORE PFA 2015 2003-2 RES $2,195,518.45 $2,196,774.91 LAKE ELSINORE PFA 2015 2004-3IA1 RES $1,787,830.61 $1,788,768.07 LAKE ELSINORE PFA 2015 2004-3IA2 RES $1,967,414.64 $1,968,538.86 LAKE ELSINORE PFA 2015 2005-1 RES $694,963.65 $695,354.15 LAKE ELSINORE PFA 2015 2005-2 RES $1,795,488.29 $1,796,509.54 LAKE ELSINORE PFA 2015 2005-6 RES $239,597.21 $239,733.56 LAKE ELSINORE PFA 2015 2006-2 RES $495,791.14 $496,073.48 Total $9,264,273.44 $9,269,470.15 2. Bond Funds Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Special Tax Fund (Section 4b) 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, in order of priority: (1) the Administrative Expense Account; (2) the Interest Account; (3) the Principal Fund; (4) the Reserve Fund; (Reserve Account of the Reserve Fund held by the trustee up to the Districts Proportionate Share of the Reserve Requirement) (5) the Redemption Fund; (6) the Surplus Fund Table 2-2 Fund Balances CFD No. 95-1 Account Balance as of September 2, 2016 LE CFD 95-1 2015 SPECIAL TAX FD $0.00 LE CFD 95-1 2015 ADM EXP FD $25,005.94 LE CFD 95-1 2015 INTEREST ACCT $0.19 LE CFD 95-1 2015 PRINCIPAL ACCT $0.54 LE CFD 95-1 2015 REDEMPTION ACCT $0.00 LE CFD 95-1 2015 SURPLUS FD $0.00 Total $25,006.67 Table 2-3 Fund Balances CFD No. 2003-2 IA B Account Balance as of September 2, 2016 LE 2003-2 CYN HILL IAB 2015 SPEC $0.00 LE 2003-2 CYN HILL IAB 2015 ADMIN $55,013.89 LE 2003-2 CYN HILL IAB 2015 INT ACCT $3.90 LE 2003-2 CYN HILL IAB 2015 PRIN AC $1.96 LE 2003-2 CYN HILL IAB 2015 REDEM $0.00 LE 2003-2 CYN HILL 2015 SURPLUS $10,642.62 LE 2003-2 CYN HILL IAB 2015 IMPROV $19.21 Total $65,681.58 Table 2-4 Fund Balances CFD No. 2004-3 IA 1 Account Balance as of September 2, 2016 LE 2004-3 ROSETTA IA1 2015 SPEC $0.00 LE 2004-3 ROSETTA IA1 2015 ADMIN $55,013.89 LE 2004-3 ROSETTA IA1 2015 INT AC $3.11 LE 2004-3 ROSETTA IA1 2015 PRIN AC $2.38 LE 2003-3 ROSETTA IA1 2015 REDEMPT $0.00 LE 2004-3 ROSETTA IA1 2015 IMPRV $0.00 LE 2004-3 ROSETTA IA1 2015 SURPLUS $0.00 Total $55,019.38 2. Bond Funds Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Table 2-5 Fund Balances CFD No. 2004-3 IA 2 Account Balance as of September 2, 2016 LE 2004-3 ROSETTA IA2 2015 SPEC $0.00 LE 2004-3 ROSETTA IA2 2015 ADMIN $55,013.89 LE 2004-3 ROSETTA IA2 2015 INT ACCT $3.48 LE 2004-3 ROSETTA IA2 2015 PRIN AC $2.04 LE 2003-3 ROSETTA IA2 2015 REDEMP $0.00 LE 2004-3 ROSETTA IA2 2015 SURPLUS $0.00 LE 2004-3 ROSETTA IA2 2015 IMPRV $133.76 Total $55,153.17 Table 2-6 Fund Balances CFD No. 2005-1 Account Balance as of September 2, 2016 LE 2005-1 SERENITY 2015 SPEC TX $0.00 LE 2005-1 SERENITY 2015 ADMIN $40,009.31 LE 2005-1 SERENITY 2015 INT ACCT $1.19 LE 2005-1 SERENITY 2015 PRIN AC $1.63 LE 2005-1 SERENITY 2015 REDEMPT $0.00 LE 2005-1 SERENITY 2015 SURPLUS $0.00 LE 2005-1 SERENITY 2015 IMPRV $744,637.41 Total $784,649.54 Table 2-7 Fund Balances CFD No. 2005-2 IA A Account Balance as of September 2, 2016 LE 2005-2 ALBERHILL 2015 SPEC TX $0.00 LE 2005-2 ALBERHILL 2015 ADMIN $55,013.89 LE 2005-2 ALBERHILL 2015 INT ACCT $2.94 LE 2005-2 ALBERHILL 2015 PRIN ACCT $2.43 LE 2005-2 ALBERHILL 2015 REDEMPT $0.00 LE 2005-2 ALBERHILL 2015 SURPLUS $0.00 Total $55,019.26 2. Bond Funds Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Table 2-8 Fund Balances CFD No. 2005-6 Account Balance as of September 2, 2016 LE 2005-6 CITY CENTER 2015 SPEC $3,706.72 LE 2005-6 CITY CENTER 2015 ADMIN $35,003.93 LE 2005-6 CITY CENTER 2015 INT ACCT $0.38 LE 2005-6 CITY CENTER 2015 PRIN AC $0.05 LE 2005-6 CITY CENTER 2015 REDEMPT $0.00 LE 2005-6 CITY CENTER 2015 SURPLUS $0.00 Total $38,711.08 Table 2-9 Fund Balances CFD No. 2006-2 Account Balance as of September 2, 2016 LE 2006-2 VISCAYA 2015 SPEC TX $0.00 LE 2006-2 VISCAYA 2015 ADMIN $35,008.84 LE 2006-2 VISCAYA 2015 INT ACCT $0.88 LE 2006-2 VISCAYA 2015 PRIN ACCT $0.66 LE 2006-2 VISCAYA 2015 REDEMPT $0.00 LE 2006-2 VISCAYA 2015 SURPLUS $0.00 Total $35,010.38 3. Special Taxes Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds 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 Districts. 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 levies applied for the 2016-17 tax year are: Table 3-1 Special Tax Levy by District (Section 4b) District/Zone Parcels Levied Special Tax Levied Maximum Special Tax % of Maximum Special Tax CFD No. 95-1 7 $157,432.48 $1,587,824.41 9.91% CFD No. 2003-2 IA B Zone 1 0 $0.00 $2,983,128.36 0.00% Zone 2 578 $1,282,642.72 $2,013,559.29 63.70% Zone 3 229 $461,899.82 $555,964.84 83.08% Subtotal: CFD 2003-2 IA B 807 $1,744,542.54 $5,552,652.49 31.42% CFD No. 2004-3 IA 1 Zone 1 254 $692,050.10 $873,918.81 79.19% Zone 2 255 $814,583.66 $1,042,587.57 78.13% Subtotal CFD 2004-3 IA 1 509 $1,506,633.76 $1,916,506.39 78.61% CFD No. 2004-3 IA 2 Zone 1 273 $741,247.52 $1,034,171.98 71.68% Zone 2 290 $939,626.06 $1,285,315.01 73.10% Subtotal: CFD 2004-3 IA 2 563 $1,680,873.58 $2,319,486.99 72.47% CFD No. 2005-1 233 $664,407.04 $825,318.61 80.50% CFD No. 2005-2 IA A 442 $1,390,645.52 $2,121,677.45 65.54% CFD No. 2005-6 144 $227,564.16 $320,634.80 70.97% CFD No. 2006-2 168 $444,842.06 $592,094.76 75.13% Total 2,873 $7,816,941.14 $15,236,195.90 51.31% 4. Value to Lien Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 The following table presents the Value-to-Lien ratio per Local Obligation. Table 4-1 Value-to-Lien Ratio Based on Assessed Values1 and Principal Amount of Bonds Outstanding2 (Section 4b) Local Obligation Total Assessed Value Outstanding Principal Value-to-Lien Ratio CFD No. 95-1 $19,730,607.00 $940,000.00 20.99:1 CFD No. 2003-2 IA B $242,643,417.00 $25,250,000.00 9.61:1 CFD No. 2004-3 IA 1 $138,524,138.00 $20,250,000.00 6.84:1 CFD No. 2004-3 IA 2 $163,367,128.00 $22,555,000.00 7.24:1 CFD No. 2005-1 $57,121,680.00 $7,745,000.00 7.38:1 CFD No. 2005-2 $138,802,730.00 $20,430,000.00 6.79:1 CFD No. 2005-6 $21,372,491.00 $2,720,000.00 7.86:1 CFD No. 2006-2 $35,426,646.00 $5,650,000.00 6.27:1 Total $816,988,837.00 $105,540,000.00 7.74:1 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 Principal Amount of Bonds Outstanding is calculated in proportion to the Levied Special Tax for FY 2016-17. 5. Payment History Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds 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 4b) Table 5-1 CFD No. 95-1 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2013-14 7 $154,246.30 $154,246.30 0 $0.00 0 2014-15 7 $153,471.60 $153,471.60 0 $0.00 0 2015-16 7 $151,846.66 $151,846.66 0 $0.00 0 Total $459,564.56 $459,564.56 0 $0.00 0 Table 5-2 CFD No. 2003-2 IA B Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2012-13 652 $1,301,880.08 $1,299,593.88 1 $2,286.20 0.18% 2013-14 721 $1,456,782.42 $1,454,450.48 1 $2,331.94 0.16% 2014-15 772 $1,615,065.36 $1,611,050.52 2 $4,014.84 0.25% 2015-16 806 $1,709,859.26 $1,702,057.05 4 $7,802.21 0.46% Total $6,083,587.12 $6,067,151.93 4 $16,435.19 0.27% Table 5-3 CFD No. 2004-3 IA 1 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2012-13 506 $1,468,864.84 $1,468,864.84 0 $0.00 0.00% 2013-14 509 $1,505,271.00 $1,505,271.00 0 $0.00 0.00% 2014-15 509 $1,550,600.78 $1,546,339.76 2 $4,261.02 0.27% 2015-16 509 $1,483,213.56 $1,466,339.14 7 $16,874.42 1.14% Total $6,007,950.18 $5,986,814.74 7 $21,135.44 0.35% Table 5-4 CFD No. 2004-3 IA 2 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2012-13 520 $1,768,963.72 $1,765,752.11 2 $3,211.61 0.18% 2013-14 522 $1,810,426.12 $1,807,292.68 1 $3,133.44 0.17% 2014-15 562 $1,548,043.40 $1,544,296.70 2 $3,746.70 0.24% 2015-16 562 $1,463,423.70 $1,455,720.20 3 $7,703.50 0.53% Total $6,590,856.94 $6,573,061.69 5 $17,795.25 0.27% 5. Payment History Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Table 5-5 CFD No. 2005-1 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2012-13 233 $670,832.02 $669,369.13 1 $1,462.89 0.22% 2013-14 233 $668,252.66 $664,411.50 2 $3,841.16 0.57% 2014-15 233 $689,416.50 $683,950.26 2 $5,466.24 0.79% 2015-16 233 $665,410.36 $658,947.58 3 $6,462.78 0.97% Total $2,693,911.54 $2,676,678.47 3 $17,233.07 0.64% Table 5-6 CFD No. 2005-2 IA A Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2012-13 427 $1,695,398.06 $1,693,498.78 1 $1,899.28 0.11% 2013-14 442 $1,655,268.26 $1,655,268.26 0 $0.00 0.00% 2014-15 442 $1,707,588.46 $1,705,612.46 1 $1,976.00 0.12% 2015-16 424 $1,380,732.74 $1,375,977.33 2 $4,755.41 0.34% Total $6,438,987.52 $6,430,356.83 2 $8,630.69 0.13% Table 5-7 CFD No. 2005-6 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2013-14 144 $257,706.24 $255,834.34 1 $1,871.90 0.73% 2014-15 144 $261,518.40 $259,618.82 1 $1,899.58 0.73% 2015-16 144 $225,218.88 $216,867.44 6 $8,351.44 3.71% Total $744,443.52 $732,320.60 6 $12,122.92 1.63% Table 5-8 CFD No. 2006-2 Delinquency Summary Fiscal Year Special Taxes Delinquency Parcels Levied Collected Parcels Amount % Del. 2013-14 168 $531,773.08 $491,297.34 13 $40,475.74 7.61% 2014-15 168 $541,683.14 $500,460.98 13 $41,222.16 7.61% 2015-16 168 $437,195.92 $401,439.58 14 $35,756.34 8.18% Total $1,510,652.14 $1,393,197.90 14 $117,454.24 7.78% 5. Payment History Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds Fiscal Year Ending June 30, 2016 Prepayments There have been no prepayments for the Fiscal Year 2015-16. Foreclosure Covenant The Districts covenant for the benefit of the Owners of the Local Obligations (which is the Authority) and any Local Obligation Parity Bonds that it: (i) will 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) will 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 the amount on deposit in the applicable Reserve Account is at less than the Proportionate Share of the Reserve Requirement, and (iii) will diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided that, notwithstanding the foregoing, the District may elect to defer foreclosure proceedings on any parcel so long as the amount in the Reserve Fund is at least equal to the Reserve Requirement. The foreclosure actions in the Districts are as follows: (Section 4b) CFD No. 2006-2 filed Writs of Sale against the 13 parcels owned by Corman Leigh Tozai Lakeshore, LLC and the Superior Court of California issued the writs in July, 2014. Financial Statements (Section 4a) 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. (Section 4a) 6. Significant Events Page City of Lake Elsinore Annual Continuing Disclosure Report PFA, Series 2015 Bonds 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. unscheduled draws on the debt service reserves reflecting financial difficulties; Not Applicable 4. unscheduled draws on the credit enhancements reflecting financial difficulties; Not Applicable 5. substitution of the credit or liquidity providers or their failure to perform; Not Applicable 6. 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 7. modifications to the rights of the Bond Owner, if material; Not Applicable 8. Bond calls, if material, and tender offers. Not Applicable 9. defeasances Not Applicable 10. release, substitution or sale of property securing repayment of the Bonds, if material; Not Applicable 11. Rating changes. Not Applicable 12. bankruptcy, insolvency, receivership or similar proceedings of the Authority, which shall occur as described below; Not Applicable 13. 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 14. appointment of a successor or additional trustee or the change of name of a trustee, if material, or; 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. 95-1(CITY CENTER) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2003-2IMPROVEMENT AREA B (CANYON HILLS) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2004-3IMPROVEMENT AREA 1 (ROSETTA CANYON) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2004-3IMPROVEMENT AREA 2 (ROSETTA CANYON) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2005-1(SERENITY) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2005-2IMPROVEMENT AREA A (ALBERHILL RANCH) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2005-6(CITY CENTER TOWNHOMES) BOUNDARY MAPCOMMUNITY FACILITIES DISTRICT NO. 2006-2(VISCAYA)