Annual Disclosure Report for the Fiscal Year Ending June 30, 2016

Transcription

1 - Annual Disclosure Report for the Fiscal Year Ending June 30, 2016 Riverside County Community Facilities District No Special Tax Bonds, Series 2005 Prepared for: March

2 Table of Contents Sections Section 1. District Profile 1 Section 2. Special Taxes 2 Section 3. Property Ownership 3 Section 4. Overview of Development Status and Absorption 4 Section 5. Payment History 5 Section 6. Bond Funds 6 Section 7. Significant Events 7 Tables Table 2-1. Special Tax Levy 2 Table 3-1. Largest Property Owners Based on Total Special Tax 3 Table 3-2. Property Breakdown by Development Status 3 Table 3-3. Value-to-Lien Ratios 3 Table 5-1. Special Tax Delinquency Summary 5 Table 6-1. Investment Portfolio 6 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map CUSIP Numbers Year CUSIP Year CUSIP Year CUSIP FMV FMZ FND FMW FNA FNE FMX FNB FNF FMY FNC FNG5 The information herein for Community Facilities District No of the County of Riverside, (the District or CFD No ) was prepared by Albert A. Webb Associates and the Riverside County Executive Office, as Administrators. Except as otherwise noted all information is current as of September 30, 2016.

3 Section 1 District Profile Community Facilities District No Special Tax Bonds, Series 2005 Project Description The District was formed to fund the acquisition and construction of roads, flood control facilities, water and sewer facilities, and park, recreation and open space facilities. The District issued 2005 Series Bonds to fund in part the design, construction, and acquisition of a 3,000-foot sewer facility to be owned and operated by Eastern Municipal Water District and to refund the 1991 Bonds. Project Location The District consists of approximately net acres and is located within the City of Murrieta. It is bounded by Walsh Center Drive on the north, Hancock Avenue on the east, Murrieta Hot Springs Road on the south and Jackson Avenue on the west Refunding Bonds Special Tax Bonds, Series 2005 (the Bonds ) in the amount of $4,280,000 with interest rates ranging from 3.00% to 5.10%, were issued June 16, 2005, to finance the public facilities funded by the District. Interest on the Bonds is payable semi-annually on March 1 and September 1. The date for the final maturity of the Bonds is September 1, The amount of bonds outstanding as of September 30, 2016 is $2,980,000. The Bonds were issued in part to defease and refund the outstanding bonds of Community Facilities District 89-4 (Walsh Medical Arts Center) of the County of Riverside, Series 1991 Special Tax Bonds. All of the 1991 Series Bonds were redeemed in 2005 with the proceeds of the 2005 Refunding Bonds. There are no remaining unissued bonds authorized for the District. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No. 89-4, 2005 Series Refunding 1

4 Section 2 Special Taxes A Special Tax is levied each year to pay the principal and interest obligations on the Outstanding 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 Special Tax Levy for Fiscal Year is $372, The Special Tax rates applied for Fiscal Year are: Table 2-1 Special Tax Levy Parcels/ Acres/ Sq. Ft. Applied Special Tax Rate % of Maximum Tax Total Applied Special Tax Maximum Class Type of Dwelling Unit Tax Rate 1 Single Residential Family Property (per parcel) 0 $0.00 $ % $ Multi-Family Residential Property (per acre) 8.19 $8, $8, % $66, Non-Residential Property (per square foot) 173,112 $1.66 $ % $286, U Undeveloped (per acre) 4.66 $4, $27, % $18, Total $372, The maximum Special Tax rate for Class 3 parcels only will escalate by 2% each Fiscal Year through Fiscal Year Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No. 89-4, 2005 Series Refunding 2

5 Section 3 Property Ownership The following tables present certain property ownership data and the development status of the District. Table 3-1 Largest Property Owners Based on Total Special Tax and Total Assessed Values 1 (AV) Fiscal Year Owner Parcels Total Special Taxes FY % of Total Special Taxes Total AV FY % of Total AV MURRIETA HEALTH ASSOC LTD PARTN 1 $96, % $11,167, % MURRIETA SPRINGS MEIDCAL CENTER 3 $74, % $13,483, % MURRIETA 144 APARTMENTS 1 $66, % $29,504, % CONTINENTAL EAST FUND IV 2 $63, % $11,814, % MURRIETA HOT SPRINGS RD 3 $53, % $8,829, % HETTICH THERESIA 1 $17, % $2,415, % Subtotal 11 $372, % $77,214, % All Others 0 $ % $0 0.00% Total 11 $372, % $77,214, % Table 3-2 Property Breakdown by Development Status 2 Development Status Parcels Total Special Taxes FY Series 2005 Bonds Outstanding Total AV FY Value-to-Lien Developed 8 $353, $2,830, $74,988, :1 Undeveloped 3 $18, $149, $2,226, :1 Total 11 $372, $2,980, $77,214, :1 Table 3-3 Value-to-Lien Ratios Based on Assessed Values and Principal Amount of Bonds Outstanding 3 Value-to-Lien Category Parcels Total AV FY Series 2005 Bonds Outstanding % Outstanding Value-to-Lien Less than 10.01:1 1 $1,833 $ % 5.73:1 Between :1 3 $15,167,854 $1,089, % 13.92:1 Between :1 3 $10,459,956 $578, % 18.08:1 Between :1 0 $0 $0 0.00% N/A Between :1 2 $13,537,363 $522, % 25.92:1 Between :1 1 $8,543,158 $254, % 33.62:1 Greater than 35.01:1 1 $29,504,508 $534, % 55.17:1 Total 11 $77,214,672 $2,980, % 25.91:1 1 Assessed Valuation (AV) is based on information provided in the Riverside County Assessor s records for Fiscal Year and may or may not accurately reflect true market value. 2 Developed is defined as any parcel of Taxable Property: (i) that is included in a Final Map that was recorded prior to the January 1st of the previous Fiscal Year and (ii) a building permit was issued prior to April 1st of the previous Fiscal Year. 3 Principal Amount of Bonds Outstanding is as of September 30, Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No. 89-4, 2005 Series Refunding 3

6 Section 4 Overview of Development Status and Absorption COMMUNITY FACILITIES DISTRICT NO WALSH MEDICAL ARTS OVERVIEW OF DEVELOPMENT STATUS AND ABSORPTION (Definition of Absorption = Built and Occupied) DEVELOPMENT STATUS OF COMMERCIAL-INDUSTRIAL PROPERTY DEVELOPMENT STATUS OF RESIDENTIAL PROPERTY 4 4 ABSORPTION OF COMMERCIAL-INDUSTRIAL PROPERTY NUMBER OF ACRES - ANNUALLY Sold: Sept. 1, 2016 Sold: Sept. 1, 2016 Future: Sept. 1, Prior Future: Sept. 1, ABSORPTION OF RESIDENTIAL UNITS - APARTMENTS NUMBER OF HOUSING UNITS , Prior-91 Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No Series Refunding 4

7 Section 5 Payment History The following table summarizes the number of delinquent parcels, the amount delinquent, the delinquency charges 4, and the amount due 5 for each tax year. There are no delinquent property owners responsible for more than 5% of the Special Tax. Delinquencies and delinquency charges are calculated through December 10, Table 5-1 Special Tax Delinquency Summary Fiscal Year Special Taxes Levied Delinquent Special Taxes Delinquency Charges Amount Due Delinquent Parcels % Delinquent $349, $0.00 $0.00 $ % $351, $0.00 $0.00 $ % $355, $0.00 $0.00 $ % $360, $0.00 $0.00 $ % $364, $0.00 $0.00 $ % $348, $0.00 $0.00 $ % Total $2,130, $0.00 $0.00 $ % Funds Available for the Payment of Scheduled Debt Service Following the September 1, 2016 Bond Call, the March 1, 2017 Debt Service payment was $73, for interest only and the September 1, 2017 payment is $233, comprised of principal and interest. The current year s levy of $372, is sufficient for both the March 1 interest payment and the September 1 principal and interest payments of $307,490.00, without impacting the fully funded Reserve Fund. Foreclosure Covenant The District has covenanted for the benefit of the owners of the Bonds that it will commence foreclosure proceedings against parcels with total Special Tax delinquencies in excess of $10,000 (not including interest and penalties thereon) by the October 1 following the close of each Fiscal Year in which the last of such Special Taxes were due, and against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which the District receives Special Taxes in an amount less than 95% of the total Special Taxes levied in such Fiscal Year, and diligently pursue to completion such foreclosure proceedings. Collection and Foreclosure Actions The Mello-Roos Act provides that delinquent property may not be sold at a judicial foreclosure sale for less than the amount of the judgment plus past judgment interest and authorized costs without the consent of the owners of 75% by value of the Outstanding Bonds. In the event of a failed sale, the property owner retains title to the Property. The judgment remains, however, and will be updated from time to time. When the CFD believes that there is a reasonable possibility that the foreclosure sale might be a successful sale, the property can be re-noticed for sale. In the event a buyer comes forward prior to that time with a bona fide offer at a price below the current requirements of the law, the County will evaluate the possibility of taking that offer to the bondholders for approval. As of September 30, 2016, there are no foreclosure actions within the District. 4 These charges include a 10% penalty on each past due installment and 1.5% per month redemption penalty (or interest ) on the original delinquent amount, which begins to accrue July 1 of the tax year following the delinquency. 5 In addition to the amount due, parcels which have an existing foreclosure judgment recorded against them will include judicial foreclosure costs not included in this column. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No Series Refunding 5

8 Section 6 Bond Funds Table 6-1 Investment Portfolio As of September 30, Account Security Coupon Rate Maturity Date Book Value Market Value Ratings Special Fund First American Govt. Oblig. Fund 0.00% 10/1/2016 $29, $29, AAA/Aaa Admin Exp. Fund First American Govt. Oblig. Fund 0.00% 10/1/2016 $7, $7, AAA/Aaa Principal Account First American Govt. Oblig. Fund 0.00% 10/1/2016 $16.61 $16.61 AAA/Aaa Reserve Account First American Govt. Oblig. Fund 0.00% 10/1/2016 $318, $318, AAA/Aaa Earnings Fund First American Govt. Oblig. Fund 0.00% 10/1/2016 $2, $2, AAA/Aaa Interest Account First American Govt. Oblig. Fund 0.00% 10/1/2016 $4.92 $4.92 AAA/Aaa Construction Fund First American Govt. Oblig. Fund 0.00% 10/1/2016 $314, $314, AAA/Aaa Total $671, $671, Special Tax Fund The moneys deposited to the Special Tax Fund are transferred first to the Administrative Expense Fund as required. Transfers are then made from the Special Tax Fund to the Bond Fund on or prior to the last day of February and August so that the balance in the Bond Fund is sufficient to cover current interest and principal due. Investment earnings on all Funds and accounts are deposited in the Earnings Fund. When all principal and interest outstanding has been paid or provided for, moneys in the Bond Fund shall be transferred to the Special Tax Fund. Reserve Fund 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 sale of the Bonds, (b) Maximum Annual Debt Service on the Bonds, or (c) 125% of average Annual Debt Service on the Bonds, as determined by the District. 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 balance in the Reserve Fund was $318, and the Reserve Requirement is $307, Financial Statements PLEASE NOTE: The Riverside County Fiscal Year 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 Source: Public Trust Advisors. All investments are in compliance with authorized investments as defined in the Fiscal Agent Agreement dated April 1, 1997, and in accordance with County of Riverside Land Secured Financing District Investment Policy B-19. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No Series Refunding 6

9 Section 7 Significant Events The following events as set forth in Rule 15c2-12 promulgated by the Securities and Exchange Commission are considered material by the District. Significant Events Occurred in FY Principal and interest payment delinquencies. Not Applicable 2. Non-payment related defaults. Not Applicable 3. Unscheduled draws on debt service reserves reflecting financial difficulties. Not Applicable 4. Unscheduled draws on credit enhancements reflecting financial difficulties. Not Applicable 5. Substitution of credit or liquidity providers, or their failure to perform. Not Applicable 6. Adverse tax opinions or events affecting the tax-exempt status of the security. Not Applicable 7. Modifications to rights of security holders. Not Applicable 8. Contingent or unscheduled Bond calls. Not Applicable 9. Defeasances. Not Applicable 10. Release, substitution, or sale of property securing repayment of the securities. Not Applicable 11. Rating changes. Not Applicable 12. Tender offers. Not Applicable 13. Bankruptcy, insolvency, receivership or similar event of the obligated person. Not Applicable 14. Merger, consolidation, or acquisition of the obligated person, if material. Not Applicable 15. Appointment of a successor or additional trustee, or the change of name of a trustee, if material. Not Applicable Notice for events described in Section 5(a), subsections 8 and 9 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. Material Events (12) through (15) have been added pursuant to amendments to the continuing disclosure services of the Municipal Securities Rulemaking Board Electronic Municipal Market Access ( EMMA ) system by the Securities and Exchange Commission to Securities Exchange Act Rule 15c2-12 effective December 1, Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2016 Riverside County CFD No Series Refunding 7

10 APPENDIX A Debt Service Schedule

11 Debt Service Schedule - Post 9/1/2016 Bond Call County of Riverside CFD 89-4 (Series 2005) (Current) Payment Date Interest Rate Principal Principal Outstanding Interest Semi-Annual Debt Service Annual Debt Service Call Premium 9/1/ % $0.00 $4,280, $41, $41, $41, % 3/1/2006 $4,280, $99, $99, % 9/1/ % $65, $4,215, $99, $164, $263, % 3/1/2007 $4,215, $98, $98, % 9/1/ % $75, $4,140, $98, $173, $271, % 3/1/2008 $4,140, $97, $97, % 9/1/ % $80, $4,060, $97, $177, $274, % 3/1/2009 $4,060, $95, $95, % 9/1/ % $90, $3,970, $95, $185, $281, % 3/1/2010 $3,970, $94, $94, % 9/1/ % $95, $3,875, $94, $189, $283, % 3/1/2011 $3,875, $92, $92, % 9/1/ % $105, $3,770, $92, $197, $290, % 3/1/2012 $3,770, $90, $90, % 9/1/ % $115, $3,655, $90, $205, $296, % 3/1/2013 $3,655, $88, $88, % 9/1/ % $125, $3,530, $88, $213, $301, % 3/1/2014 $3,530, $85, $85, % 9/1/ % $135, $3,395, $85, $220, $306, % 3/1/2015 $3,395, $83, $83, % 9/1/ % $145, $3,250, $83, $228, $311, % 3/1/2016 $3,250, $79, $79, % 9/1/ % $155, $3,095, $79, $234, % *9/1/2016 $115, $2,980, $115, $429, % 3/1/2017 $2,980, $73, $73, % 9/1/ % $160, $2,820, $73, $233, $307, % 3/1/2018 $2,820, $70, $70, % 9/1/ % $165, $2,655, $70, $235, $305, % 3/1/2019 $2,655, $66, $66, % 9/1/ % $170, $2,485, $66, $236, $302, % 3/1/2020 $2,485, $62, $62, % 9/1/ % $180, $2,305, $62, $242, $304, % 3/1/2021 $2,305, $58, $58, % 9/1/ % $190, $2,115, $58, $248, $306, % 3/1/2022 $2,115, $53, $53, % 9/1/ % $195, $1,920, $53, $248, $302, % 3/1/2023 $1,920, $48, $48, % 9/1/ % $200, $1,720, $48, $248, $297, % 3/1/2024 $1,720, $43, $43, % 9/1/ % $210, $1,510, $43, $253, $297, % 3/1/2025 $1,510, $38, $38, % 9/1/ % $220, $1,290, $38, $258, $296, % 3/1/2026 $1,290, $32, $32, % 9/1/ % $235, $1,055, $32, $267, $300, % 3/1/2027 $1,055, $26, $26, % 9/1/ % $245, $810, $26, $271, $298, % 3/1/2028 $810, $20, $20, % Albert A. Webb Associates Page 1 of 2 Execution Time: 3/1/2017 1:59:38 PM

12 Debt Service Schedule - Post 9/1/2016 Bond Call County of Riverside CFD 89-4 (Series 2005) (Current) Payment Date Interest Rate Principal Principal Outstanding Interest Semi-Annual Debt Service Annual Debt Service Call Premium 9/1/ % $260, $550, $20, $280, $301, % 3/1/2029 $550, $14, $14, % 9/1/ % $270, $280, $14, $284, $298, % 3/1/2030 $280, $7, $7, % 9/1/ % $280, $0.00 $7, $287, $294, % Totals $4,280, $3,285, $7,565, $7,565, Bond Issue Date 6/16/2005 Original Bond Principal $4,280, Bond Calls $115, * Denotes Bond Call Albert A. Webb Associates Page 2 of 2 Execution Time: 3/1/2017 1:59:38 PM

13 Appendix A APPENDIX B District Boundary Map

14 Appendix A

15 Corporate Headquarters 3788 McCray Street Riverside, CA Palm Desert Office Cook St., Bldg. I - #801B Palm Desert, CA Murrieta Office Kalmia Street #160 Murrieta, CA