Annual Disclosure Report for Fiscal Year Ending June 30, 2017

Transcription

1 - Eastern Municipal Water District Community Facilities District No (Pacific Communities) Improvement Area C 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 C ( CFD IA C ) 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 Communities) Improvement Area C Project Location The property in Improvement Area C of the Community Facilities District is located in the City of Moreno Valley, north of Highway 74 and east of Interstate 215 (I-215). The Community Facilities District is planned to include 199 lots of single family residential property on approximately 53 gross acres in final Tract Map Nos , , and 30268, which have been recorded. Project Description The project includes the construction, purchase, modification, expansion, improvement or rehabilitation of water and sewer facilities including the acquisition of capacity in the water and sewer systems of the District, both onsite and off-site, and all appurtenances and appurtenant work in connection with the foregoing 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 C 2013 Special Tax Bonds (the Bonds ) in the amount of $2,825,000 with interest rates ranging from 2.00% to 4.75% were issued on June 13, As of September 2, 2017, $2,625,000 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 $5,500,000. In 2017, CFD IA C issued the Improvement Area C 2017 Special Tax Bonds in the amount of $2,625,000 and payable on a parity with the Bonds. CUSIP Numbers Improvement Area C 2013 Special Tax Bonds Year CUSIP Year CUSIP Year CUSIP MBA MBG MBN MBB MBH MBP MBC MBJ MBQ MBD MBK MBR MBE MBL MBS MBF MBM MBT3 EMWD Community Facilities District No Improvement Area C 1

4 Section 2 Bond Funds Special Tax Fund Table 2-1 Fund Balances as of September 2, 2017 Fund Description 2013 Series Fund Balance Special Tax Fund $40, Interest Account $1.40 Principal Account $1.72 Reserve Fund $182, Additional Special Tax Fund $0.00 Administrative Expense Fund $8, Improvement Fund $8, Special Tax Holding $0.00 Total $238, 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 $181, As of September 2, 2017, the balance in the Reserve Fund for the Bonds was $182, 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. EMWD Community Facilities District No Improvement Area C 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 C. 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 $374, and is based on 199 parcels within the following tax classes. The Special Tax rates for the tax year are: Land Use Category Description Table 3-1 Special Tax Rates Fiscal Year FY Amount Levied Per Category Assigned/Max Tax Rate Number of Parcels Charged D1 Single Family (3,400 sq. ft. or less) $83, $1, D2 Single Family (3,401 sq. ft. to 3,900 sq. ft.) $89, $2, D3 Single Family (3,901 sq. ft. or more) $169, $2, MF Multi-Family (per acre) $0.00 $12, NR Non-Residential (per acre) $0.00 $12, APP Approved Parcel $32, $2, Total $374, EMWD Community Facilities District No Improvement Area C 3

6 Section 4 Development Status and Bond Information Development Status The table below presents the development status for CFD IA C. 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 161 $341, % $60,253, % Approved 38 $32, % $4,842, % Total 199 $374, % $65,095, % Rate and Method of Apportionment There have been no changes to the Rate and Method of Apportionment of the Special Tax for CFD IA C. Building Permit Status CFD IA C is being developed. All Final Maps have been recorded and include 199 parcels. As of April 1, 2017, 161 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 were no changes in the types of public facilities to be constructed or acquired from those described in the Official Statement. EMWD Community Facilities District No Improvement Area C 4

7 Section 5 Payment History Information Concerning Delinquent Parcels CFD IA C 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 2013/14 $145, $1, % 0 $ % 2014/15 $223, $1, % 0 $ % 2015/16 $276, $4, % 0 $ % 2016/17 $326, $ % 0 $ % Total $972, $ % 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 judgement (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 and the balance in the Additional Special Tax Reserve Account is not less than the Additional Special Tax 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 C 5

8 Section 6 Material Events The following events as 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 C 6

9 APPENDIX A Debt Service Schedule

10 Debt Service Schedule - Current Eastern Municipal Water District CFD IA C (Original) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 9/1/ % $0.00 $2,825, $25, $25, $25, % 3/1/2014 $2,825, $57, $57, % 9/1/ % $0.00 $2,825, $57, $57, $115, % 3/1/2015 $2,825, $57, $57, % 9/1/ % $65, $2,760, $57, $122, $180, % 3/1/2016 $2,760, $57, $57, % 9/1/ % $65, $2,695, $57, $122, $179, % 3/1/2017 $2,695, $56, $56, % 9/1/ % $70, $2,625, $56, $126, $183, % 3/1/2018 $2,625, $55, $55, % 9/1/ % $70, $2,555, $55, $125, $181, % 3/1/2019 $2,555, $55, $55, % 9/1/ % $70, $2,485, $55, $125, $180, % 3/1/2020 $2,485, $54, $54, % 9/1/ % $70, $2,415, $54, $124, $178, % 3/1/2021 $2,415, $52, $52, % 9/1/ % $75, $2,340, $52, $127, $180, % 3/1/2022 $2,340, $51, $51, % 9/1/ % $75, $2,265, $51, $126, $178, % 3/1/2023 $2,265, $50, $50, % 9/1/ % $80, $2,185, $50, $130, $180, % 3/1/2024 $2,185, $48, $48, % 9/1/ % $80, $2,105, $48, $128, $177, % 3/1/2025 $2,105, $47, $47, % 9/1/ % $85, $2,020, $47, $132, $179, % 3/1/2026 $2,020, $45, $45, % 9/1/ % $85, $1,935, $45, $130, $176, % 3/1/2027 $1,935, $43, $43, % 9/1/ % $90, $1,845, $43, $133, $177, % 3/1/2028 $1,845, $42, $42, % 9/1/ % $95, $1,750, $42, $137, $179, % 3/1/2029 $1,750, $40, $40, % 9/1/ % $95, $1,655, $40, $135, $175, % 3/1/2030 $1,655, $38, $38, % 9/1/ % $100, $1,555, $38, $138, $176, % 3/1/2031 $1,555, $36, $36, % 9/1/ % $105, $1,450, $36, $141, $177, % 3/1/2032 $1,450, $33, $33, % 9/1/ % $110, $1,340, $33, $143, $177, % 3/1/2033 $1,340, $31, $31, % 9/1/ % $110, $1,230, $31, $141, $172, % 3/1/2034 $1,230, $28, $28, % 9/1/ % $115, $1,115, $28, $143, $172, % 3/1/2035 $1,115, $26, $26, % 9/1/ % $120, $995, $26, $146, $172, % 3/1/2036 $995, $23, $23, % 9/1/ % $125, $870, $23, $148, $171, % Albert A. Webb Associates Page 1 of 2 Execution Time: 1/17/2018 2:55:20 PM

11 Debt Service Schedule - Current Eastern Municipal Water District CFD IA C (Original) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 3/1/2037 $870, $20, $20, % 9/1/ % $130, $740, $20, $150, $171, % 3/1/2038 $740, $17, $17, % 9/1/ % $135, $605, $17, $152, $170, % 3/1/2039 $605, $14, $14, % 9/1/ % $140, $465, $14, $154, $168, % 3/1/2040 $465, $11, $11, % 9/1/ % $150, $315, $11, $161, $172, % 3/1/2041 $315, $7, $7, % 9/1/ % $155, $160, $7, $162, $169, % 3/1/2042 $160, $3, $3, % 9/1/ % $160, $0.00 $3, $163, $167, % Totals: $2,825, $2,246, $5,071, $5,071, Bond Issue Date: 6/13/2013 Original Bond Principal: $2,825, Albert A. Webb Associates Page 2 of 2 Execution Time: 1/17/2018 2:55:20 PM

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