Annual Disclosure Report for the Fiscal Year Ending June 30, 2017

Transcription

1 - Annual Disclosure Report for the Fiscal Year Ending June 30, 2017 Riverside County Community Facilities District No (Mountain Cove) Special Tax Refunding Bonds, Series 2006 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 5 Section 5. Payment History 6 Section 6. Bond Funds 7 Section 7. Significant Events 8 Tables Table 2-1. Special Tax Levy 2 Table 3-1. Largest Property Owners Subject to Special Taxes 3 Table 3-2. Property Breakdown by Development Status 3 Table 3-3. Value-to-Lien Ratio 4 Table 5-1. Special Tax Delinquency Summary 6 Table 6-1. Investment Portfolio 7 Appendices Appendix A. Debt Service Schedule Appendix B. District Boundary Map CUSIP Numbers Year CUSIP Year CUSIP FQM FQR FQN FQS FQP FQT FQQ FQU1 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, 2017.

3 Section 1 District Profile Community Facilities District No (Mountain Cove) Special Tax Refunding Bonds, Series 2006 Project Description The District issued Bonds to fund a portion of the cost to acquire additional public infrastructure consisting of sanitary sewer, water, storm drain, roadway facilities and to refund the 2001 Refunding Bonds. Project Location The District consists of approximately 765 acres and is located approximately five miles southeast of the City of Corona adjacent to the Cleveland National Forest in unincorporated western Riverside County, California Refunding Bonds 1 The Series 2006 Special Tax Refunding Bonds (the Bonds ) in the amount of $10,435,000 with interest rates ranging from 3.70% to 4.25% were issued on September 26, Interest on the Bonds is payable semiannually on March 1 and September 1. The final maturity of the Bonds is September 1, On September 1, 2016, the District performed a bond call of $160,000 with $96,000 in surplus funds from the Reserve Fund and $64,000 from the Special Tax Account. Following the September 1, 2016 call, the outstanding principal amount of the Bonds as of September 30, 2017 is $5,145,000. On January 30, 2018, the Board of Supervisors of the County of Riverside adopted Resolution No. CFD authorizing the issuance of bonds for the District, proceeds of which were used to redeem in full, on March 1, 2018, the outstanding Bonds maturing on and after September 1, There are no remaining unissued bonds authorized for the District. 1 Bonds in the amount of $14,000,000 were issued in June 1991, to finance the public facilities funded by the District. All the 1991 Bonds were redeemed in 2001 with the proceeds of the 2001 Refunding Bonds and redeemed again in 2006 with the proceeds of the 2006 Refunding Bonds. 1

4 Section 2 Special Taxes A Special Tax is levied and collected each year to pay the principal and interest obligations on the Bonds of the District. 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 for Fiscal Year was $833, and is based on 1,320 building permits issued within the following tax classes. The Special Tax rates applied for Fiscal Year are: Table 2-1 Special Tax Levy Applied Rate per Class No. of DU's, Lots, or Acres Taxed Tax Class Description Taxable Unit Maximum Tax Rate D-A Developed Residential DU with 2,001 or more SF Unit $ $ D-B Developed Residential DU with 1,500-2,000 SF Unit $ $ D-C Developed Residential DU with 1,499 or less SF Unit $ $ D-NR Developed Non-Residential Property Acre $1, $2, AP-Res Approved Residential Property Lot $ N/A AP-NR Approved Non-Residential Property Acre $2, N/A GC Golf Course Property Acre $5, N/A UP Undeveloped Property Acre $7, N/A Changes to the Rate and Method of Apportionment During the prior Fiscal Year, no changes were made to the Rate and Method of Apportionment in CFD No

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 Subject to Special Taxes Based on Total Special Taxes Levied Fiscal Year Total Special Taxes FY % of Total Special Taxes Total AV 2 FY % of Total AV Owner Parcels TRILOGY AT GLEN IVY, MAINTENANCE 3 3 $16, % $4 0.00% INDIVIDUAL OWNER 3 $1, % $1,239, % INDIVIDUAL OWNER 2 $1, % $1,123, % INDIVIDUAL OWNER 2 $1, % $1,029, % INDIVIDUAL OWNER 2 $1, % $893, % INDIVIDUAL OWNER 2 $1, % $842, % INDIVIDUAL OWNER 2 $1, % $777, % INDIVIDUAL OWNER 2 $1, % $811, % EASY LIVING VENTURES 2 $1, % $598, % INDIVIDUAL OWNER 2 $1, % $948, % Subtotal 22 $28, % $8,262, % All Others 1,298 $804, % $541,531, % Total 1,320 $833, % $549,794, % Table 3-2 Property Breakdown by Development Status 4 Development Status Parcels Total Special Taxes FY % of Total Special Taxes Total AV 2 FY % of Total AV Developed 1,320 $833, % $549,794, % All Others 0 $ % $0 0.00% Total 1,320 $833, % $549,794, % 2 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. 3 Parcels were not assigned assessed value by Riverside County due to the ad valorem tax exempt status of each parcel. 4 Developed is defined as any parcel for which a building permit was issued prior to April 1 of the preceding Fiscal Year. 3

6 Section 3 Property Ownership Table 3-3 Value-to-Lien Ratio Based on Bonds Outstanding Fiscal Year Total AV FY Principal Amount of Bonds Outstanding % Outstanding Value-to-Lien Category Parcels Value-to-Lien Less than 20.01:1 5 9 $335,924 $125, % 2.67:1 Between :1 17 $1,894,471 $64, % 29.52:1 Between :1 15 $3,030,744 $58, % 51.74:1 Between :1 93 $27,489,757 $381, % 72.04:1 Between :1 283 $99,383,759 $1,089, % 91.19:1 Between :1 370 $154,483,499 $1,400, % :1 Between :1 478 $233,038,196 $1,825, % :1 Between :1 40 $21,264,384 $145, % :1 Greater than : $8,873,686 $54, % :1 Total 1,320 $549,794,420 $5,145, % :1 Prepayment of Special Taxes Associated with 2006 Refunding Bonds During the prior Fiscal Year, there were no Special Taxes fully or partially prepaid for the 2006 Refunding Bonds. 5 Includes three parcels owned by Trilogy at Glen Ivy Maintenance which were not assigned assessed value by Riverside County due to the tax exempt status of each parcel. Minimum value-to-lien is 0.00:1 as parcel was not assigned assessed value by Riverside County due to the ad valorem tax exempt status of the parcel. 6 Maximum value-to-lien is :1. 4

7 Section 4 COMMUNITY FACILITIES DISTRICT NO MOUNTAIN COVE Overview of Development Status and Absorption OVERVIEW OF DEVELOPMENT STATUS AND ABSORPTION (Definition of Absorption = Built and Occupied) DEVELOPMENT STATUS OF COMMERCIAL-INDUSTRIAL PROPERTY DEVELOPMENT STATUS OF RESIDENTIAL PROPERTY ABSORPTION OF COMMERCIAL-INDUSTRIAL PROPERTY ,317 0 NUMBER OF ACRES - ANNUALLY Sold: Sept. 1, 2017 Sold: Sept. 1, 2017 Prior Future: Sept. 1, Future: Sept. 1, NUMBER OF HOUSING UNITS Prior ABSORPTION OF RESIDENTIAL UNITS PRICE / LIVING AREA $350 $300 $250 $200 $150 $100 $50 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Prior HOUSING PRICE PATTERNS Value Ratio: Price/Living Area $ $190 $312 $ $ $ $ $ $0 $0 $0 $0 $0 $0 $0 $

8 Section 5 Payment History The following table summarizes the number of delinquent parcels, the amount delinquent, delinquency charges 7, and the amount due 8 for each tax year following the refunding in There are no delinquent parcels in any tax year prior to the refunding. There are no delinquent property owners responsible for more than 5% of the Special Tax. Delinquencies and delinquency charges are calculated as of December 10, Table 5-1 Special Tax Delinquency Summary Fiscal Year Special Taxes Levied Delinquent Special Taxes Delinquency Charges Total Amount Due Delinquent Parcels % Delinquent $838, $0.00 $0.00 $ % $845, $0.00 $0.00 $ % $841, $0.00 $0.00 $ % $837, $0.00 $0.00 $ % $827, $0.00 $0.00 $ % $827, $ $ $ % $833, $1, $ $1, % Total $5,852, $1, $ $2, % Funds Available for the Payment of Scheduled Debt Service The current year levy of $833, is expected to generate sufficient revenue to cover the full year s debt service of $768,475.00, without impacting the fully funded Reserve Fund. Foreclosure Covenant The foreclosure covenant in the Bond Indenture states that foreclosure proceedings will be initiated against delinquent property with delinquent Special Taxes in excess of $5,000 by the October 1 following the close of each Fiscal Year in which the last of such Special Taxes were due and will commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is 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 As of September 30, 2017, there are no foreclosure actions within the District. 7 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. 8 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. 6

9 Section 6 Bond Funds Reserve Fund Table 6-1 Investment Portfolio As of September 30, Account Fund Balance Special Fund $26, Redemption Fund $16.18 Reserve Fund $793, Expense Fund $6, Earnings Fund $22, Total $848, The Bond 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) Maximum Annual Debt Service on the Outstanding Bonds and Parity Bonds, if any, (b) 10% of the total original proceeds of the Bonds and parity Bonds, if any, or (c) 125% of average Annual Debt Service on the Outstanding Bonds and Parity Bonds, if any. In the event that special tax revenue is insufficient to pay debt service, money may be transferred from this Fund to the Bond Fund. The Bond 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, 2017 the balance in the Reserve Fund was $793, and the Reserve Requirement was $773, 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. 9 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. 7

10 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 Delinquency in payment when due of any principal of or interest on the Bonds Not Applicable 2. Occurrence of any default under the Indenture (Other than as described in clause (1) above) 3. Amendment to or modification of the Indenture or the Disclosure Agreement modifying the rights of the Owners of the Bonds Not Applicable Not Applicable 4. Giving of a notice of optional or unscheduled redemption of any of the Bonds Yes; 9/1/ Defeasances of the Bonds or any portion thereof Not Applicable 6. Any change in any rating on the Bonds Not Applicable 7. Adverse tax opinions or events affecting the Tax-exempt status of the Bonds Not Applicable 8. Any unscheduled draw on the Reserve Account reflecting financial difficulties Not Applicable 9. Unscheduled draws on credit enhancements reflecting financial difficulties Not Applicable 10. Substitution of credit or liquidity providers, or their failure to perform Not Applicable 11. The release, substitution or sale of property securing repayment of the Bonds (including property leased, mortgaged or pledged as such security) 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 5a, 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 is 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,

11 APPENDIX A Debt Service Schedule

12 Debt Service Schedule - Current County of Riverside CFD 89-1 (Mountain Cove) (Current) Payment Date Interest Rate Principal Principal Outstanding Interest Semi-Annual Debt Service Annual Debt Service Call Premium 3/1/2007 $10,435, $182, $182, % 9/1/ % $495, $9,940, $211, $706, $889, % 3/1/2008 $9,940, $201, $201, % 9/1/ % $385, $9,555, $201, $586, $788, % 3/1/2009 $9,555, $194, $194, % 9/1/ % $405, $9,150, $194, $599, $793, % 3/1/2010 $9,150, $186, $186, % 9/1/ % $420, $8,730, $186, $606, $792, % 3/1/2011 $8,730, $177, $177, % 9/1/ % $435, $8,295, $177, $612, $790, % 3/1/2012 $8,295, $169, $169, % 9/1/ % $455, $7,840, $169, $624, $793, % 3/1/2013 $7,840, $159, $159, % 9/1/ % $470, $7,370, $159, $629, $789, % 3/1/2014 $7,370, $150, $150, % 9/1/ % $490, $6,880, $150, $640, $791, % 3/1/2015 $6,880, $140, $140, % 9/1/ % $510, $6,370, $140, $650, $791, % 3/1/2016 $6,370, $130, $130, % 9/1/ % $530, $5,840, $130, $660, % *9/1/2016 $160, $5,680, $160, $951, % 3/1/2017 $5,680, $117, $117, % 9/1/ % $535, $5,145, $117, $652, $769, % 3/1/2018 $5,145, $106, $106, % 9/1/ % $555, $4,590, $106, $661, $768, % 3/1/2019 $4,590, $95, $95, % 9/1/ % $580, $4,010, $95, $675, $771, % 3/1/2020 $4,010, $84, $84, % 9/1/ % $605, $3,405, $84, $689, $773, % 3/1/2021 $3,405, $71, $71, % 9/1/ % $625, $2,780, $71, $696, $768, % 3/1/2022 $2,780, $58, $58, % 9/1/ % $650, $2,130, $58, $708, $767, % 3/1/2023 $2,130, $45, $45, % 9/1/ % $680, $1,450, $45, $725, $770, % 3/1/2024 $1,450, $30, $30, % 9/1/ % $710, $740, $30, $740, $771, % 3/1/2025 $740, $15, $15, % 9/1/ % $740, $0.00 $15, $755, $771, % Totals $10,435, $4,667, $15,102, $15,102, Bond Issue Date 9/26/2006 Original Bond Principal $10,435, Bond Calls $160, * Denotes Bond Call Albert A. Webb Associates Page 1 of 1 Execution Time: 2/27/2018 8:36:17 AM

13 APPENDIX B Boundary Map

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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