HomeMy WebLinkAboutItem # 9 Annual Continuining Disclosure Reports - Exhibit G Summerly CFD 2006-1 IA A 2013ASPICER CONSULTING G R O U P
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Community Facilities District No. 2006-1 Improvement Area A (Summerly) Local Agency Revenue Bonds 2013 Series A
Table of Contents
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA A
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 Owners in the District Responsible for Greater than 5% of the Total Levy 2
Table 2-2 Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values and Bonds Outstanding 2
Table 2-3 Fiscal Year 2016-17 Special Tax to Maximum Tax Summary 2
Table 3-1 Delinquency Summary 3
Table 4-1 Fund Balances as of September 30, 2016 4
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. 2006-1 IA A
Fiscal Year Ending June 30, 2016
City of Lake Elsinore
Community Facilities District No. 2006-1 IA A
Local Agency Revenue Bonds, 2013 Series A
(CUSIP 509632)
Maturity Date
September 1 Principal Interest Rate CUSIP Suffix
2015 $15,000 1.750% HN8
2016 $20,000 2.000% HP3
2017 $25,000 2.375% HQ1
2018 $30,000 2.500% HR9
2019 $35,000 3.000% HS7
2020 $40,000 3.250% HT5
2021 $45,000 3.375% HU2
2022 $50,000 3.500% HV0
2023 $55,000 3.750% HW8
2028 $395,000 4.250% HX6
2033 $625,000 4.625% HY4
2043 $2,285,000 5.000% HZ1
This Annual Continuing Disclosure Report (“Report”) for Community Facilities District No. 2006-1 Improvement Area A Local Agency
Revenue Bonds, 2013 Series A of the City of Lake Elsinore (the “District” or “CFD No. 2006-1 IA A”), 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. 2006-1 IA A
Fiscal Year Ending June 30, 2016
Community Facilities District No. 2006-1
Improvement Area A (Summerly)
Local Agency Revenue Bonds 2013 Series A
Project Description
The District was formed in 2006 and initially consisted of three Improvement Areas; in 2011, the City reconfigured the District into six
Improvement Areas (Improvement Areas A, B, CC through F), and one remainder Improvement Area (Improvement Area 1), which
consisted of nine existing homes which prepaid its Special Taxes. The resolution for Improvement Area A was adopted in the spring of
2011 and represents the first phase of development. In total the Summerly development is expected to include 1,482 homes.
Location
The boundaries of the District are included within the development generally known as Summerly. The primary entrance to the District
is located at the intersection of Village Parkway with Diamond Drive approximately 0.8 miles from the I-15 freeway. Although not in the
District, the Links at Summerly, a par 72 golf course, is part of the greater Summerly development. The Lake Elsinore Diamond Stadium
is located adjacent to the Summerly development across Diamond Drive.
2013 Series A Bonds (Section 4a)
The 2013 Series A Bonds (the “Bonds”) in the amount of $3,620,000 were issued June 13, 2013, with interest rates ranging from 1.75%
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,
2043. The principal amount of the Bonds Outstanding as of September 30, 2016 was $3,585,000.
The Bonds were issued to provide the District with the funds necessary to finance public infrastructure and capital fees related to the
Summerly development; to fund the interest on the Bonds until September 1, 2013, as well as the portion of the Fiscal Year 2013-14
Special Tax Requirement which otherwise would be levied on Undeveloped Properties; to pay the expenses of the District; to fund, in
part, the Delinquency Management Fund; and to fund the Reserve Account and provide an initial deposit to the Cash Flow Management
Fund.
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. 2006-1 IA A
Fiscal Year Ending June 30, 2016
The following tables present certain property ownership data of the District.
Table 2-1
Fiscal Year 2016-17 Property Owners in the District Responsible for Greater than 5% of the Total Levy (Section 4g)
Owner Parcels Status
Total Special Tax
FY 2016-17
% of Total
Special Tax
Total AV
FY 2016-17 % of Total AV
McMillan DayBreak 16 Developed $19,522.78 8.64% $4,024,711.00 5.98%
There have been no significant amendments to applicable District granted land use entitlements, no significant conditions of approval of
development imposed by the District for any undeveloped parcels, and no legislative, administrative or judicial challenges to the
development of any undeveloped parcels or use of any parcel known to the District.
Table 2-2
Fiscal Year 2016-17 Value-to-Lien Ratio Based on Assessed Values1and Bonds Outstanding2 (Section 4d)
Value-to-Lien Parcels
Total Assessed
Value
Lake Elsinore
2013 Series A
(CFD 2006-1 IA A)
All Other Debt
Outstanding3
Total Debt
Outstanding
Value-to-Lien
Ratio
Less than 4:1 3 $554,150.00 $62,713.88 $82,770.67 $145,484.56 3.81:1
Between 4 - 5.99:1 10 $2,044,080.00 $185,666.64 $263,098.70 $448,765.34 4.55:1
Between 6 - 7.99:1 46 $12,908,892.00 $781,446.17 $915,285.29 $1,696,731.46 7.61:1
Between 8 - 9.99:1 123 $40,706,889.00 $2,063,365.75 $2,510,269.31 $4,573,635.06 8.90:1
Greater than 10:1 32 $11,077,954.00 $491,807.55 $560,904.44 $1,052,711.99 10.52:1
Total 214 $67,291,965.00 $3,585,000.00 $4,332,328.41 $7,917,328.41 8.50:1
Prepayments (Section 4j)
There have been no prepayments of the Special Tax for Fiscal Year 2015-16.
Table 2-3
Fiscal Year 2016-17 Special Tax to Maximum Tax Summary (Section 4h)
Development
Status Parcels
Total Special Tax
FY 2016-17
Maximum
Special Tax
% of Maximum
Special Tax
Developed 214 $225,875.88 $276,116.00 100.00%
Approved 0 $0.00 $0.00 0.00%
Total 214 $225,875.88 $276,116.00 100.00%
Undeveloped Property
There are no Undeveloped Property, as defined by the Rate and Method of Apportionment.
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. Bonds Outstanding are as of September 30, 2016.
3 For FY 2016-17 ten additional parcels were classified as Developed. As a result, their other overlapping debt has been added increasing the total amount outstanding from the previous
year’s totals.
3. Payment History Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA A
Fiscal Year Ending June 30, 2016
Delinquencies and delinquency charges are calculated through October 2016. The delinquency summary table below provides an
overview of delinquency rates for previous years.
There are no individual property owners within the District whose delinquent taxes constitute 5% or more of the total annual levy amount.
Table 3-1
Delinquency Summary (Section 4e)
Fiscal
Year
Levied Delinquent
Parcels Special Taxes Parcels Amount % Del.
2014-15 214 $211,181.24 2 $1,921.30 0.91%
2015-16 214 $225,864.06 2 $1,959.72 0.87%
Total $437,045.30 2 $3,881.02 0.89%
Foreclosure Covenant (Section 4f)
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 $1,500 or more or that the Delinquent Special Taxes represent more than 5% of the aggregate Special Taxes
levied within Improvement Area A of 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 ninety (90) days of such determination against
all properties for which the Special Taxes remain delinquent.
There are no foreclosure actions at this time.
4. Bond Funds Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA A
Fiscal Year Ending June 30, 2016
Table 4-1
Fund Balances as of September 30, 2016 (Section 4c)
Account Requirement Balance
Reserve Account $318,403.07 $325,517.77
Improvement Fund $0.00 $2,354.56
Total $327,872.33
Reserve Account (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 proceeds of the Bonds, (b) 125% of average Annual Debt Service on the Outstanding Bonds, or (c) Maximum
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, $325,500.00. 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 $325,517.77 and the Reserve Requirement was $318,403.07.
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.
5. Listed Events Page
City of Lake Elsinore
Annual Continuing Disclosure Report CFD No. 2006-1 IA A
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. 2006-1 IMPROVEMENT AREA A (SUMMERLY)