City of Cathedral City

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1 City of Cathedral City $12,230,000 COMMUNITY FACILITIES DISTRICT NO Special Tax Bonds Riverside County, California Dated: November 30, 2000 CUSIP + : 14917J NOTICE OF OCCURRENCE OF LISTED EVENT SEPTEMBER 9, Via Industria Suite 110 Temecula, CA T F Copyright, American Bankers Association. CUSIP Data is provided by Standard and Poor s, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitue for the CUSIP service. The City takes no responsibility for the accuracy of such number.

2 CITY OF CATHEDRAL CITY LIST OF PARTICIPANTS CITY OF CATHEDRAL CITY Tami E. Scott Administrative Services Director Cathedral City Civic Center Avenida Lalo Guerrero Cathedral City, California (760) DISTRICT ADMINISTRATION DISCLOSURE CONSULTANT & DISSEMINATION AGENT Willdan Financial Services * Temecula, CA (951) UNDERWRITER Stone & Youngberg LLC San Francisco, California BOND COUNSEL Lewis, D Amato, Brisbois & Bisgaard, LLP San Bernardino, California FISCAL AGENT Agnes Obando The Bank of New York Mellon Trust Company, N.A. 700 South Flower Street, Suite 500 Los Angeles, California (213) * In its role as Disclosure Consultant, Willdan Financial Services has not passed upon the accuracy, completeness or fairness of the statements contained herein.

3 I. INTRODUCTION Pursuant to an Official Statement dated November 16, 2000, the City of Cathedral City (the City ) issued $12,230,000 Community Facilities District No Special Tax Bonds (the Bonds ) (i) to finance the construction of certain public infrastructure improvements (the "Public Facilities") to benefit the District, (ii) to fund the Reserve Fund in the amount of the Reserve Requirement, (iii) to fund capitalized interest on the Bonds through September 1, 2002, and (iv) to pay for the cost of issuance of the Bonds. The District consists of approximately adjusted gross acres located in the Cathedral City which is located in Coachella Valley, in Riverside County, approximately 120 miles from Los Angeles. A 26.2 acre portion of the District is "wash land" and is proposed as a blow sand mitigation area for the development leaving acres for development. The District is located in the northwest portion of Cathedral City, bordered by Verona Road to the south, Landau Boulevard to the east, Whitewater River and Morongo Wash to the west and undeveloped land, railroad and freeway to the north. The housing development in the District is known as Rio Vista Village. The Bonds are special tax bonds secured by special taxes (the Special Taxes ) levied on the properties in the District. The Bonds are not a debt of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction. The information set forth herein has been furnished by the City and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Annual Continuing Disclosure Information Statement that involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Annual Continuing Disclosure Information Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties described herein. 1

4 II. NOTICE OF OCCURRENCE OF LISTED EVENT UNSCHEDULED DRAW ON DEBT SERVICE RESERVES On March 1, 2014, a draw on the Reserve Fund for $168, was required to pay the March 1, 2014 Debt Service Payment on the Bonds. The District had insufficient funds to make the full debt service on the Bonds in the amount of $371, Therefore, the Reserve Fund is $168, below the Reserve Requirement of $1,223, The remaining amount in the Reserve Fund was $1,054, On September 1, 2014, a second draw on the Reserve Fund for $435, was required to pay the September 1, 2014 Debt Service Payment on the Bonds. The District had insufficient funds to make the full payment on the Bonds in the amount of $611, The remaining amount in the Reserve Fund is $618, Therefore, the Reserve Fund is $604, below the Reserve Requirement of $1,223, The unscheduled draws are due to the delinquencies in the District. There are major property owners responsible for the special tax greater than 5% of the special tax levy that are delinquent in payment of the special taxes. The following table lists the delinquent amounts by fiscal year. There are no delinquencies prior to Fiscal Year 2006/2007. Fiscal Year Number of Parcels Levied Number of Parcels Delinquent Annual Special Tax Amount Delinquent (1) Percent Delinquent 2006/ $885,611 $1, % 2007/ $899,392 $0 0.00% 2008/ $1,077,477 $237, % 2009/ $1,077,389 $475, % 2010/ $1,052,640 $443, % 2011/ $1,180,964 $537, % 2012/ $1,728,168 $1,246, % 2013/ $1,207,271 $829, % (1) Amount delinquent as of May 14, Source: Riverside County Tax Collector, as compiled by Willdan Financial Services. 2

5 The City of Cathedral City has appointed Green, de Bortnowsky & Quintanilla, LLP as the foreclosure attorney for the District. Due to delinquencies presented in the table above, the District s delinquency rate for Fiscal Years 2008/2009 through 2013/2014 exceeded five percent (5%). There are a total of Fourteen (14) parcels owned by PSRV that are delinquent in the payment of their special taxes for Fiscal Years 2008/2009 through 2013/2014. Delinquent installments for this property owner for their parcels for Fiscal Years 2008/2009 through 2010/2011 were duly removed from the Riverside County Tax Roll in accordance with applicable law. All the stripped delinquencies were assigned to Green, de Bortnowsky & Quintanilla, LLP and have been presented to the City of Cathedral City for judicial foreclosure. In addition, the parcels are pending County Tax Sale procedures for a date yet to be determined. As of the last continuing disclosure report posted on EMMA dated March 28, 2014 for Communities Facilities District No , all foreclosure proceedings have not changed since the date of the filing of that report. The remaining delinquencies in the District are also being monitored. Willdan and the City will continue to monitor delinquencies and recommended foreclosure actions as necessary. This Notice of Occurrence of Listed Event may contain information material to Bond owners and does not purport to contain all material information with respect to the Bonds or the financial condition of the City or the District. The information set forth herein has been furnished by the City and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Notice of Occurrence of Listed Event which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Notice of Occurrence of Listed Event will not, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties described herein. 3