Annual Disclosure Report for Fiscal Year Ending June 30, 2017

Transcription

1 - Eastern Municipal Water District Community Facilities District No (Pacific Mayfield) Improvement Area A 2013 Special Tax Bonds Prepared for: February

2 Table of Contents Sections Section 1. District Profile 1 Section 2. Bond Funds 2 Section 3. Special Tax Information 3 Section 4. Development Status and Bond Information 4 Section 5. Payment History 5 Section 6. Material Events 6 Tables Table 2-1. Fund Balances as of September 2, Table 3-1. Special Tax Rates 3 Table 4-1. Development Status 4 Table 5-1. Special Tax Delinquency Information 5 Appendices Appendix A. Debt Service Schedule The information herein for the Eastern Municipal Water District s (the District ) Community Facilities District No Improvement Area A ( CFD IA A ) was prepared by Albert A. Webb Associates and Eastern Municipal Water District, as Administrators. Except as otherwise noted all information is current as of September 2, 2017.

3 Section 1 District Profile Community Facilities District No (Pacific Mayfield) Improvement Area A Project Location The property in Improvement Area A of the Community Facilities District is located adjacent to Evans Road between Newport Road and La Piedra Road in the City of Menifee. Improvement Area A is planned to consist of 67 single family detached residential units located in a development called Cottonwood at Pacific Palms, a master-planned community in the City of Menifee. Improvement Area A consists of net acres within Tract Map No Project Description The Project includes the acquisition or construction of certain water and sewer system improvements by or for the District that are required in order to provide water and sewer service to the property within Improvement Area A and payments to the District of the Improvement Area A s proportionate share of the costs of the District s water, sewer and sewer treatment facilities Special Tax Bonds The Bonds are secured only by the Net Special Taxes and amounts on deposit in the Special Tax Fund established by the Indenture. The Improvement Area A 2013 Special Tax Bonds (the Bonds ) in the amount of $2,715,000 with interest rates ranging from 2.000% to 4.875% were issued on June 13, As of September 2, 2017, $2,535,000 remains outstanding. Interest on the Bonds is payable semi-annually on March 1 and September 1. The final maturity of the Bonds is September 1, Eastern Municipal Water District was authorized to issue bonds in an aggregate principal amount of up to $3,250,000, but the District has covenanted that it will not issue any additional bonds payable in excess of the amount currently issued. CUSIP Numbers Improvement Area A 2013 Special Tax Bonds Year CUSIP Year CUSIP Year CUSIP MBX MCD MCK MBY MCE MCL MBZ MCF MCM MCA MCG MCN MCB MCH MCP MCC MCJ MCQ8 EMWD Community Facilities District No Improvement Area A 1

4 Section 2 Bond Funds Special Tax Fund Table 2-1 Fund Balances as of September 2, 2017 Fund Description Fund Balance Special Tax Fund $74, Interest $1.38 Principal $1.48 Reserve Fund $174, Administrative Expense Fund $8, Improvement Fund $19, Special Tax Holding $0.00 Total $276, The Special Tax Revenues deposited in the Special Tax Fund will be held in trust and deposited into the following funds and accounts in the following order of priority: 1. Administrative Expense in an amount equal to the Administrative Expense Requirement 2. Interest Account 3. Principal Account 4. Redemption Account 5. Reserve Account 6. Administrative Expenses in excess of the Administrative Expense Requirement 7. Rebate Fund 8. Special Tax Holding Fund Reserve Account of the Special Tax Fund The Reserve Account must be maintained at the Reserve Requirement which is defined as, an amount equal to the least of (a) Maximum Annual Debt Service on the Outstanding Bonds, (b) 10% of the initial 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 Account to the Special Tax Fund. The Reserve Account will then be replenished by increasing the next annual special tax levy to the extent permitted by law. As of September 2, 2017, the Reserve Requirement for the Bonds is $174, As of September 2, 2017, the balance in the Reserve Fund for the Bonds was $174, The Reserve Fund is fully funded. Improvement Fund The Improvement Fund was established under the Indenture as a separate fund. The moneys in the Improvement and Capacity Accounts have been or will be disbursed as requests are made. EMWD Community Facilities District No Improvement Area A 2

5 Section 3 Special Tax Information A Special Tax is levied and collected each year to pay the principal and interest obligations on the Bonds of CFD IA A. The amount levied each year is determined by the Rate and Method of Apportionment (the RMA ) and can vary from year to year, but shall not exceed the maximum authorized (or permitted) Special Tax rates. The amount levied is detailed in the table below. Special Taxes The amount levied for the tax year was $188, and is based on 65 building permits being issued within the following tax classes. For Fiscal Year , there are 65 parcels classified as Developed Property, two parcels of Approved Property which are currently being used by the Developer as a parking lot for the model homes within Improvement Area A. There is also one sliver parcel which is expected to be dedicated to the Homeowners Association. The Special Tax rates for the tax year are: Table 3-1 Special Tax Rates Fiscal Year FY Amount Levied Per Category Land Use Category Description Assigned Tax Rate D1 Single Family (3,850 sq. ft. or greater) $37, $4, D2 Single Family (3,600 sq. ft. to 3,849 sq. ft.) $35, $3, D3 Single Family (3,350 sq. ft. to 3,599 sq. ft.) $3, $3, D4 Single Family (3,100 sq. ft. to 3,349 sq. ft.) $17, $3, D5 Single Family (2,850 sq. ft. to 3,099 sq. ft.) $21, $3, D6 Single Family (2,600 sq. ft. to 2,849 sq. ft.) $26, $3, D7 Single Family (2,350 sq. ft. to 2,599 sq. ft.) $15, $2, D8 Single Family (2,349 sq. ft. or less) $31, $2, APP Approved Property $0.00 $3, Number of Parcels Charged Total $188, EMWD Community Facilities District No Improvement Area A 3

6 Section 4 Development Status and Bond Information Development Status The following table presents the development status for CFD IA A. Table 4-1 Development Status Based on Fiscal Year Special Tax Levy Development Status Parcels Total Special Tax FY % of Total Special Tax Total AV FY % of Total AV Developed 65 $188, % $23,004, % Approved 2 $ % $175, % Undeveloped (1) 1 $ % $5 0.00% Totals 68 $188, % $23,179, % (1) The sole undeveloped parcel is a sliver parcel that is to be dedicated to the Homeowners Association. Rate and Method of Apportionment There have been no changes to the Rate and Method of Apportionment of the Special Tax for CFD IA A. Building Permit Status CFD IA A is being developed. A Final Map has been recorded and includes 68 parcels. As of April 1, 2017, 65 building permits have been issued for single family residential units. Construction Status of Public Improvements The improvements are in progress. Reimbursements for completed and accepted public facilities were processed as requests were made. There have been no changes in the types of public facilities constructed or acquired from those described in the Official Statement. EMWD Community Facilities District No Improvement Area A 4

7 Section 5 Payment History Information Concerning Delinquent Parcels CFD IA A s Special Tax delinquency information is illustrated below: Table 5-1 Special Tax Delinquency Information Delinquencies as of June 30 of Fiscal Year in which Special Taxes were Levied Delinquencies as of November 29, 2017 Fiscal Year Amount Levied Parcels Levied Parcels Delinquent Amount Delinquent Percent Delinquent Parcels Delinquent Amount Delinquent Percent Delinquent 2012/13 $64, $2, % 0 $ % 2013/14 $139, $1, % 0 $ % 2014/15 $195, $ % 0 $ % 2015/16 $194, $4, % 0 $ % 2016/17 $188, $ % 0 $ % Total $781, $ % Foreclosure Covenant Pursuant to Section of the Mello-Roos Act, the Community Facilities District has covenanted in the Indenture, with and for the benefit of the Owners of the Bonds, that it will order and cause to be commenced, on or before October 1 of the Fiscal Year immediately following the Fiscal Year in which a delinquency in the payment of the Special Tax occurs, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due, provided that the Community Facilities District is not required to commence or pursue such proceedings if both (i) the aggregate amount of such delinquent Special Taxes does not exceed 5% of the total Special Taxes due and payable for the Fiscal Year in question and (ii) the balance on deposit in the Reserve Account is not less than the Reserve Requirement (except the Community Facilities District will nevertheless be required to commence and pursue such proceedings with respect to any property owned by a single property owner who is delinquent in the payment of the Special Taxes in the amount of $5,000 or more). Collection and Foreclosure Actions As of September 30, 2017, no foreclosure actions have been filed with the Superior Court. Financial Statements PLEASE NOTE: Audited financial statements of the Eastern Municipal Water District are available at the following internet address: EMWD Community Facilities District No Improvement Area A 5

8 Section 6 Material Events The following events as described in Section 5a of the Disclosure Certificate and set forth in Rule 15c2-12 promulgated by the Securities and Exchange Commission are considered material by the District. Section 5a Significant Events Occurred in FY Date of Event 1. Principal and interest payment delinquencies; 2. Unscheduled draws on debt service reserves reflecting financial difficulties; 3. Unscheduled draws on credit enhancements reflecting financial difficulties; 4. Substitution of credit or liquidity providers, or their failure to perform; 5. 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; 6. Defeasances; 7. Tender offers; 8. Bankruptcy, insolvency, receivership or similar proceedings; and 9. Rating changes; Section 5b Significant Events Occurred in FY Date of Event 1. Mergers, consolidations, acquisitions, the sale of all or substantially all of the assets of the obligated persons or their termination; 2. Appointment of a successor or additional fiscal agent or the change of name of a fiscal agent; 3. Non-payment related defaults; 4. Modifications to rights of Bondholders; 5. Notices of prepayment; and 6. Release, substitution, or sale of property securing repayment of the Bonds; EMWD Community Facilities District No Improvement Area A 6

9 APPENDIX A Debt Service Schedule

10 Debt Service Schedule - Current Eastern Municipal Water District CFD IA A (Original) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 9/1/ % $0.00 $2,715, $24, $24, $24, % 3/1/2014 $2,715, $57, $57, % 9/1/ % $0.00 $2,715, $57, $57, $114, % 3/1/2015 $2,715, $57, $57, % 9/1/ % $60, $2,655, $57, $117, $174, % 3/1/2016 $2,655, $56, $56, % 9/1/ % $60, $2,595, $56, $116, $173, % 3/1/2017 $2,595, $56, $56, % 9/1/ % $60, $2,535, $56, $116, $172, % 3/1/2018 $2,535, $55, $55, % 9/1/ % $60, $2,475, $55, $115, $171, % 3/1/2019 $2,475, $54, $54, % 9/1/ % $65, $2,410, $54, $119, $174, % 3/1/2020 $2,410, $53, $53, % 9/1/ % $65, $2,345, $53, $118, $172, % 3/1/2021 $2,345, $52, $52, % 9/1/ % $65, $2,280, $52, $117, $170, % 3/1/2022 $2,280, $51, $51, % 9/1/ % $70, $2,210, $51, $121, $173, % 3/1/2023 $2,210, $50, $50, % 9/1/ % $70, $2,140, $50, $120, $170, % 3/1/2024 $2,140, $49, $49, % 9/1/ % $75, $2,065, $49, $124, $173, % 3/1/2025 $2,065, $47, $47, % 9/1/ % $75, $1,990, $47, $122, $170, % 3/1/2026 $1,990, $46, $46, % 9/1/ % $80, $1,910, $46, $126, $172, % 3/1/2027 $1,910, $44, $44, % 9/1/ % $80, $1,830, $44, $124, $169, % 3/1/2028 $1,830, $42, $42, % 9/1/ % $85, $1,745, $42, $127, $170, % 3/1/2029 $1,745, $41, $41, % 9/1/ % $85, $1,660, $41, $126, $167, % 3/1/2030 $1,660, $39, $39, % 9/1/ % $90, $1,570, $39, $129, $168, % 3/1/2031 $1,570, $37, $37, % 9/1/ % $95, $1,475, $37, $132, $169, % 3/1/2032 $1,475, $35, $35, % 9/1/ % $95, $1,380, $35, $130, $165, % 3/1/2033 $1,380, $33, $33, % 9/1/ % $100, $1,280, $33, $133, $166, % 3/1/2034 $1,280, $30, $30, % 9/1/ % $105, $1,175, $30, $135, $166, % 3/1/2035 $1,175, $28, $28, % 9/1/ % $110, $1,065, $28, $138, $166, % 3/1/2036 $1,065, $25, $25, % 9/1/ % $115, $950, $25, $140, $166, % Albert A. Webb Associates Page 1 of 2 Execution Time: 1/9/ :09:58 AM

11 Debt Service Schedule - Current Eastern Municipal Water District CFD IA A (Original) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 3/1/2037 $950, $23, $23, % 9/1/ % $120, $830, $23, $143, $166, % 3/1/2038 $830, $20, $20, % 9/1/ % $125, $705, $20, $145, $165, % 3/1/2039 $705, $17, $17, % 9/1/ % $130, $575, $17, $147, $164, % 3/1/2040 $575, $14, $14, % 9/1/ % $135, $440, $14, $149, $163, % 3/1/2041 $440, $10, $10, % 9/1/ % $140, $300, $10, $150, $161, % 3/1/2042 $300, $7, $7, % 9/1/ % $145, $155, $7, $152, $159, % 3/1/2043 $155, $3, $3, % 9/1/ % $155, $0.00 $3, $158, $162, % Totals: $2,715, $2,314, $5,029, $5,029, Bond Issue Date: 6/13/2013 Original Bond Principal: $2,715, Albert A. Webb Associates Page 2 of 2 Execution Time: 1/9/ :09:58 AM

12 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