HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit F Summerhill CFD 98-1 2013CTable of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 98-1
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 Development Status 2
Table 3-1 Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values and Principal Amounts
of Bonds Outstanding for all Overlapping Debt Category III 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. 98-1
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 98-1
Local Agency Revenue Bonds, 2013 Series C
(CUSIP 509632)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2014 $475,000 2.000% JH9
2015 $485,000 2.000% JJ5
2016 $495,000 2.500% JK2
2017 $505,000 3.000% JL0
2018 $525,000 3.000% JM8
2019 $540,000 3.375% JN6
2020 $555,000 3.500% JP1
2021 $575,000 3.875% JQ9
2022 $600,000 4.000% JR7
2023 $620,000 4.125% JS5
2033 $8,240,000 5.250% JU0
This Annual Continuing Disclosure Report (“Report”) for Community Facilities District No. 98-1 Local Agency Revenue Bonds, 2013
Series C of the City of Lake Elsinore (the “District” or “CFD No. 98-1”), 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. 98-1
Fiscal Year Ending June 30, 2016
Community Facilities District No. 98-1
(Summerhill)
Local Agency Revenue Bonds 2013 Series C
Project Description
The District was formed for the purpose of constructing and acquiring certain public improvements needed to meet increased demand
upon the City of Lake Elsinore as a result of development within the boundaries of Community Facilities District No. 98-1 and include
grading, street improvements, domestic water, sanitary sewer, and parks and recreation facilities. Prior to 2004 this District was
designated Communities Facilities District No. 91-2.
Location
The District is located to the northeast of the intersection of Railroad Canyon Road with Interstate 15. Summerhill Drive, which intersects
with Railroad Canyon Road, provides the primary access to the area within the District.
2013 Series C Bonds (Section 4a)
The 2013 Series C Bonds (the “Bonds”) in the amount of $13,615,000 were issued July 11, 2013, with interest rates ranging from 2.00%
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,
2033. The principal amount of the Bonds Outstanding as of September 30, 2016 is $12,160,000.
A portion of the proceeds of the Bonds were used to refund the Lake Elsinore Public Financing Authority 2003 Local Agency Revenue
Bonds, Series H and to acquire 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.
2. Special Taxes Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 98-1
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 $1,139,166.32.
The Special Taxes from this District are apportioned between two classes of property currently existing in the District. Category III is
property for which a building permit has been issued and Category II is property which has a final map recorded but no building permits.
Currently, the Tax Liability is fully satisfied by the Special Tax levy on Category III property.
Table 2-1
Fiscal Year 2016-17 Development Status (Section 4h)
Development
Status Parcels
Total Special Tax
FY 2016-17
% of Total
Special Tax
Maximum Tax
FY 2016-17
% of Total
Maximum Tax
Total Assessed
Value
Category III 421 $1,139,166.32 100.00% $1,416,793.57 97.45% $116,253,547.00
Category II 9 $0.00 0.00% $37,046.71 2.55% $546,441.00
Total 430 $1,139,166.32 100.00% $1,453,840.28 100.00% $116,799,988.00
3. Property Ownership Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 98-1
Fiscal Year Ending June 30, 2016
The following tables present certain property ownership and overlapping debt of the District.
Table 3-1
Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values1 and Principal Amounts of Bonds Outstanding2 for all Overlapping
Debt Category III (Section 4d)
Value-to-Lien
Category Parcels
Total Assessed
Value
Lake Elsinore 2013
Series C (CFD 98-1)
All Other
Overlapping
Debt3
Total Overlapping
Debt Value-to-Lien
Less than 8:1 76 $16,942,200.00 $2,301,336.94 $0.00 $2,301,336.94 7.36:1
Between 8 - 9.99:1 183 $48,546,680.00 $5,375,393.63 $0.00 $5,375,393.63 9.03:1
Between 10 - 10.99:1 70 $21,235,565.00 $2,022,723.80 $0.00 $2,022,723.80 10.50:1
Between 11 - 11.99:1 49 $16,223,407.00 $1,415,300.39 $0.00 $1,415,300.39 11.46:1
Between 12 - 12.99:1 32 $9,785,119.00 $786,591.66 $0.00 $786,591.66 12.44:1
Between 13 - 13.99:1 8 $2,429,028.00 $183,249.74 $0.00 $183,249.74 13.26:1
Greater than 14:1 3 $1,091,548.00 $75,403.84 $0.00 $75,403.84 14.48:1
Total 421 $116,253,547.00 $12,160,000.00 $0.00 $12,160,000.00 9.56:1
Major Taxpayers (Section 4g)
There are no property owners in the District responsible for greater than 5% of the total levy.
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 Assigned Special Tax for FY 2016-17.
3 All other overlapping debt is as of September 30, 2016 Riverside County BZ3 Flood Control Matured
4. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 98-1
Fiscal Year Ending June 30, 2016
The Districts delinquency information is current as of October 2016 and is illustrated below.
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)
Fiscal
Year
Levied Delinquent
Parcels Special Tax Parcels Amount Del. Rate
2012-13 421 $1,165,302.50 0 $0.00 0.00%
2013-14 421 $1,153,801.90 0 $0.00 0.00%
2014-15 421 $1,166,486.30 2 $2,559.95 0.22%
2015-16 421 $1,131,448.78 5 $9,996.57 0.88%
Total $4,617,039.48 5 $12,556.52 0.27%
Prepayment (Section 4j)
There were no prepayments in the District for Fiscal Year 2015-16.
Foreclosure Covenant (Section 4f)
The District has covenanted for the benefit of the Bond Owners that the District will review the public 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 $2,500 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.
There are no foreclosure actions at this time.
5. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 98-1
Fiscal Year Ending June 30, 2016
Table 5-1
Fund Balances as of September 30, 2016
Account Requirement Balance
Reserve Account $1,082,856.26 $1,082,915.42
Cash Flow Management Fund $162,428.44 $162,730.40
Total $1,245,645.82
Reserve Account (Section 4b)
The Reserve Account must be maintained at the Reserve Requirement which is defined, as of any date of calculation, as an amount
equal to the lesser of (a) Maximum Annual Debt Service on the Outstanding Bonds, (b) 10% of the total original principal amount of the
Bonds, or (c) 125% of average Annual Debt Service on the Outstanding Bonds. 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 $1,082,915.42 and the Reserve Requirement was $1,082,856.26.
Cash Flow Management Fund (Section 4c)
On September 2 of each year any amounts remaining in the Revenue Fund will be transferred to the Cash Flow Management Fund; the
Authority may also elect to fund this account from any available surplus revenue from other series of local agency revenue bonds, to the
extent such surplus revenues are loaded to replenish the Cash Flow Management Fund to its requirement. The Cash Flow Management
Fund Requirement is 15% of maximum annual debt service on the Bonds.
Financial Statements (Section 4i)
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. 98-1
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. 98-1(SUMMERHILL)