Annual Disclosure Report Fiscal Year Ending June 30, 2017

Transcription

1 - Annual Disclosure Report Fiscal Year Ending June 30, 2017 Riverside County Community Facilities District No (Clinton Keith) Special Tax Bonds, Series 2015 Special Tax Bonds, Series 2017 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 Schedules Appendix B. District Boundary Map CUSIP Numbers Series 2015 Year CUSIP Year CUSIP Year CUSIP Year CUSIP FSS FSX FTC FTL FST FSY FTD FTJ FSU FSZ FTE FTK FSV FTA FTF FSW FTB FTH7 CUSIP Numbers Series 2017 Year CUSIP Year CUSIP Year CUSIP Year CUSIP FTM FTT FTZ FUF FTN FTU FUA FUG FTP FTV FUB FUH FTQ FTW FUC FUJ FTR FTX FUD FTS FTY FUE2 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 (Clinton Keith) Special Tax Bonds, Series 2015 Special Tax Bonds, Series 2017 Project Description The District issued Bonds to fund a certain facilities including the widening of the interchange at Interstate 215, the extension of the Clinton Keith Road between Antelope Road in the City of Murrieta and SR-79, including bridge facilities, and appurtenances thereto, street improvements, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkways and landscaping related thereto, and storm drain facilities, environmental mitigation facilities needed in connection therewith, and land, rights-ofway and easements necessary for any of such facilities. Project Location The District consists of a number of noncontiguous properties located mostly in an unincorporated portion of the County, also known as French Valley, with a small portion located in the City of Murrieta. The District is approximately 10 miles north of the City of Temecula, 35 miles southeast of the City of Riverside, 90 miles southeast of the City of Los Angeles and 60 miles north of the City of San Diego. The District is located east of Interstate 15 which is a major freeway connecting the cities of Riverside and San Diego. Series 2015 Bonds, Series 2017 Bonds The Special Tax Bonds, Series 2015 (the 2015 Bonds ) in the amount of $25,170,000 with interest rates ranging from 2.125% to 5.000% were issued on August 6, Interest on the 2015 Bonds is payable semi-annually on March 1 and September 1. The final maturity of the 2015 Bonds is September 1, The outstanding principal amount of the 2015 Bonds as of September 30, 2017 is $25,005,000. The Special Tax Bonds, Series 2017 (the 2017 Bonds ) in the amount of $7,610,000 with interest rates ranging from 2.000% to 5.000% were issued on June 1, Interest on the 2017 Bonds is payable semi-annually on March 1 and September 1. The final maturity of the 2017 Bonds is September 1, The outstanding principal amount on the 2017 Bonds as of September 30, 2017 is $7,610,000. The District is authorized to issue an additional $27,220,000 in bonds. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

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 $2,065, The Special Taxes levied and Assessed Value for Fiscal Year and value-to-lien by Rate and Method classification are: Table 2-1 Special Tax Levy Land Use Category Parcels Total Special Taxes FY Total AV FY Bonds Outstanding 2017 Bonds Outstanding Outstanding Bonds Value-to- Lien Developed Single Family 1,523 $1,947, $535,892,826 $23,573,855 $7,174,447 $30,748, :1 Developed Multi Family 122 $118, $32,337,252 $1,431,145 $435,553 $1,866, :1 Approved Single Family 361 $0.00 $29,282,027 $0 $0 $0 N/A Undeveloped Property 26 $0.00 $18,341,602 $0 $0 $0 N/A Total 2,032 $2,065, $615,853,707 $25,005,000 $7,610,000 $32,615, :1 Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

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 Owner Parcels Total Special Taxes FY % of Total Special Taxes Total AV FY % of Total AV KB HOME COASTAL INC 121 $154, % $22,280, % LENNAR HOMES OF CALIF INC 50 $63, % $7,505, % BROOKFIELD NECTAR 30 $38, % $4,129, % RICHMOND HOMES OF MARYLAND INC 28 $35, % $5,993, % WOODSIDE 05S 24 $30, % $5,347, % BROOKFIELD JUNIPER 12 $15, % $3,121, % INDIVIDUAL OWNER 2 $2, % $975, % INDIVIDUAL OWNER 2 $2, % $862, % INDIVIDUAL OWNER 1 $1, % $599, % INDIVIDUAL OWNER 1 $1, % $579, % Subtotal 271 $346, % $51,394, % All Others 1,374 $1,719, % $516,835, % Total 1,645 $2,065, % $568,230, % Table 3-2 Property Breakdown by Development Status 1 Total Special Taxes FY % of Total Special Taxes 2015 and 2017 Bonds Outstanding Development Status Parcels Total AV FY % of Total AV Value-to- Lien Developed 1,645 $2,065, % $568,230, % $32,615, :1 Approved 361 $ % $29,282, % $0 N/A Undeveloped 26 $ % $18,341, % $0 N/A Total 2,032 $2,065, % $615,853, % $32,615, :1 1 Developed is defined as any parcel for which a building permit was issued prior to April 1 of the preceding Fiscal Year. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

6 Section 3 Property Ownership Table 3-3 Value-to-Lien Ratio Based on Bonds Outstanding Fiscal Year Value-to-Lien Category Parcels Total AV and 2017 Bonds Outstanding % Outstanding Value-to-Lien Less than 3.01: $1,825,860 $1,695, % 1.08:1 Between :1 48 $4,639,444 $969, % 4.79:1 Between :1 18 $2,611,144 $358, % 7.28:1 Between :1 32 $6,694,666 $646, % 10.36:1 Between :1 131 $36,326,090 $2,595, % 13.99:1 Between :1 415 $134,259,000 $8,070, % 16.64:1 Between :1 560 $215,459,832 $11,071,359, % 19.46:1 Between :1 263 $118,475,655 $5,309, % 22.31:1 Greater than 24.00: $47,938,387 $1,897, % 25.26:1 Total 1,645 $568,230,078 $32,615, % 17.42:1 2 Minimum value-to-lien is 0.66:1. 3 Maximum value-to-lien is 29.72:1. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

7 Section 4 Overview of Development Status and Absorption COMMUNITY FACILITIES DISTRICT NO.07-2 CLINTON-KEITH OVERVIEW OF DEVELOPMENT STATUS AND ABSORPTION (Definition of Absorption = Built and Occupied) DEVELOPMENT STATUS OF RESIDENTIAL PROPERTY 1,504 1,440 Sold: Sept. 1, 2017 Future: Sept. 1, ABSORPTION OF RESIDENTIAL UNITS HOUSING PRICE PATTERNS Value Ratio: Price/Living Area NUMBER OF HOUSING UNITS PRICE / LIVING AREA $160 $140 $120 $100 $80 $60 $40 $142 $122 $114 $119 $114 $112 $134 $124 $132 $141 $ $ $ Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

8 Section 5 Payment History The following table summarizes the number of delinquent parcels, the amount delinquent, delinquency charges 4, and the amount due 5 for each Fiscal Year. 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 Amount Due Delinquent Parcels % Delinquent $222, $0.00 $0.00 $ % $345, $0.00 $0.00 $ % $546, $1, $1, $2, % $907, $ $ $1, % $1,059, $0.00 $0.00 $ % $1,299, $2, $ $3, % $1,576, $8, $1, $9, % Total $5,957, $12, $3, $16, % Foreclosure Covenant The foreclosure covenant in the Bond Indenture states that foreclosure proceedings will be initiated against parcels with total Special Tax delinquencies in excess of $5,000 (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 will commence appropriate judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the 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. Collection and Foreclosure Actions As of September 30, 2017, 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, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

9 Section 6 Bond Funds Fund Description Table 6-1 Investment Portfolio As of September 30, Fund Balance 2015 Series Special Tax Fund $133, Bond Fund $42, Reserve Fund $2,763, Administrative Expense Fund $2, Improvement Fund $15,539, Non-Proceeds Fund $48, Series Bond Fund $14.53 Costs of Issuance Fund $22, Bond Proceeds $3,180, Reserve Fund $0.00 Total $21,732, Reserve Fund The Bond Reserve Fund must be maintained at the Reserve Requirement which is defined in the Indenture to mean, as of the date of calculation, an amount equal to the least of (a) 10% of the original aggregate principal amount of the Bonds (excluding Bonds refunded with proceeds of subsequently issued Bonds), (b) the Maximum Annual Debt Service on the Bonds and (c) 125% of the Average Annual Debt Service on the Bonds. 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 $2,763, and the combined Reserve Requirement was $2,760, 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: U.S. Bank. 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, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

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 Principal and interest payment delinquencies. Not Applicable 2. Unscheduled draws on debt service reserves reflecting financial difficulties. Not Applicable 3. Unscheduled draws on credit enhancements reflecting financial difficulties. Not Applicable 4. Substitution of credit or liquidity providers, or their failure to perform. Not Applicable 5. Adverse tax opinion or issuance by the Internal Revenue Service of proposed or final determination of taxability or of a Notice of Proposed Issue (IRS Form 5701 TEB). Not Applicable 6. Tender offers. Not Applicable 7. Defeasances. Not Applicable 8. Rating Changes Not Applicable 9. Bankruptcy, insolvency, receivership or similar event of the Community Facilities District. Not Applicable 10. Unless described in paragraph (v) of subsection (a) of this Section, other material notices or determinations by the Internal Revenue Service with respect to the tax status of the Series 2015 or Series 2017 Bonds or other material events affecting the tax status of the Series 2015 or Series 2017 Bonds. Not Applicable 11. Modifications to rights of holders of the Series 2015 or Series 2017 Bonds. Not Applicable 12. Optional, unscheduled or contingent Series 2015 or Series 2017 Bond calls. Not Applicable 13. Release, substitution, or sale of property securing repayment of the Series 2015 or Series 2017 Bonds. Not Applicable 14. Non-payment related defaults Not Applicable 15. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms. Not Applicable 16. Appointment of a successor or additional Trustee or the change of name of a Trustee. Not Applicable Notice for events described in Section 5a, subsections (7) and (12) 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 Indenture. Annual Continuing Disclosure Report for Fiscal Year ending June 30, 2017 Riverside County CFD No (Clinton Keith), Series 2015, Series

11 APPENDIX A Debt Service Schedules

12 Debt Service Schedule - Current County of Riverside CFD 07-2 (Series 2015) (Clinton Keith) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 3/1/2016 $25,170, $656, $656, % 9/1/ % $0.00 $25,170, $576, $576, $1,233, % 3/1/2017 $25,170, $576, $576, % 9/1/ % $165, $25,005, $576, $741, $1,318, % 3/1/2018 $25,005, $574, $574, % 9/1/ % $195, $24,810, $574, $769, $1,343, % 3/1/2019 $24,810, $571, $571, % 9/1/ % $230, $24,580, $571, $801, $1,372, % 3/1/2020 $24,580, $568, $568, % 9/1/ % $260, $24,320, $568, $828, $1,397, % 3/1/2021 $24,320, $565, $565, % 9/1/ % $295, $24,025, $565, $860, $1,426, % 3/1/2022 $24,025, $561, $561, % 9/1/ % $330, $23,695, $561, $891, $1,452, % 3/1/2023 $23,695, $556, $556, % 9/1/ % $370, $23,325, $556, $926, $1,483, % 3/1/2024 $23,325, $550, $550, % 9/1/ % $410, $22,915, $550, $960, $1,511, % 3/1/2025 $22,915, $543, $543, % 9/1/ % $455, $22,460, $543, $998, $1,542, % 3/1/2026 $22,460, $535, $535, % 9/1/ % $505, $21,955, $535, $1,040, $1,576, % 3/1/2027 $21,955, $526, $526, % 9/1/ % $555, $21,400, $526, $1,081, $1,607, % 3/1/2028 $21,400, $516, $516, % 9/1/ % $605, $20,795, $516, $1,121, $1,637, % 3/1/2029 $20,795, $504, $504, % 9/1/ % $660, $20,135, $504, $1,164, $1,668, % 3/1/2030 $20,135, $487, $487, % 9/1/ % $730, $19,405, $487, $1,217, $1,705, % 3/1/2031 $19,405, $473, $473, % 9/1/ % $790, $18,615, $473, $1,263, $1,736, % 3/1/2032 $18,615, $453, $453, % 9/1/ % $865, $17,750, $453, $1,318, $1,771, % 3/1/2033 $17,750, $434, $434, % 9/1/ % $940, $16,810, $434, $1,374, $1,808, % 3/1/2034 $16,810, $413, $413, % 9/1/ % $1,015, $15,795, $413, $1,428, $1,842, % 3/1/2035 $15,795, $391, $391, % 9/1/ % $1,100, $14,695, $391, $1,491, $1,883, % 3/1/2036 $14,695, $367, $367, % 9/1/ % $1,185, $13,510, $367, $1,552, $1,919, % 3/1/2037 $13,510, $337, $337, % 9/1/ % $1,285, $12,225, $337, $1,622, $1,960, % 3/1/2038 $12,225, $305, $305, % 9/1/ % $1,385, $10,840, $305, $1,690, $1,996, % 3/1/2039 $10,840, $271, $271, % Albert A. Webb Associates Page 1 of 2 Execution Time: 2/26/ :59:57 AM

13 Debt Service Schedule - Current County of Riverside CFD 07-2 (Series 2015) (Clinton Keith) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 9/1/ % $1,495, $9,345, $271, $1,766, $2,037, % 3/1/2040 $9,345, $233, $233, % 9/1/ % $1,610, $7,735, $233, $1,843, $2,077, % 3/1/2041 $7,735, $193, $193, % 9/1/ % $1,735, $6,000, $193, $1,928, $2,121, % 3/1/2042 $6,000, $150, $150, % 9/1/ % $1,860, $4,140, $150, $2,010, $2,160, % 3/1/2043 $4,140, $103, $103, % 9/1/ % $2,000, $2,140, $103, $2,103, $2,207, % 3/1/2044 $2,140, $53, $53, % 9/1/ % $2,140, $0.00 $53, $2,193, $2,247, % Totals: $25,170, $24,875, $50,045, $50,045, Bond Issue Date: 8/6/2015 Original Bond Principal: $25,170, Albert A. Webb Associates Page 2 of 2 Execution Time: 2/26/ :59:57 AM

14 Debt Service Schedule - Current County of Riverside CFD 07-2 (Series 2017) (Clinton Keith) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 9/1/ % $0.00 $7,610, $82, $82, $82, % 3/1/2018 $7,610, $164, $164, % 9/1/ % $60, $7,550, $164, $224, $389, % 3/1/2019 $7,550, $164, $164, % 9/1/ % $65, $7,485, $164, $229, $393, % 3/1/2020 $7,485, $163, $163, % 9/1/ % $75, $7,410, $163, $238, $401, % 3/1/2021 $7,410, $161, $161, % 9/1/ % $85, $7,325, $161, $246, $408, % 3/1/2022 $7,325, $160, $160, % 9/1/ % $100, $7,225, $160, $260, $421, % 3/1/2023 $7,225, $159, $159, % 9/1/ % $110, $7,115, $159, $269, $428, % 3/1/2024 $7,115, $157, $157, % 9/1/ % $120, $6,995, $157, $277, $435, % 3/1/2025 $6,995, $155, $155, % 9/1/ % $135, $6,860, $155, $290, $446, % 3/1/2026 $6,860, $153, $153, % 9/1/ % $145, $6,715, $153, $298, $452, % 3/1/2027 $6,715, $150, $150, % 9/1/ % $160, $6,555, $150, $310, $461, % 3/1/2028 $6,555, $147, $147, % 9/1/ % $175, $6,380, $147, $322, $470, % 3/1/2029 $6,380, $144, $144, % 9/1/ % $195, $6,185, $144, $339, $484, % 3/1/2030 $6,185, $141, $141, % 9/1/ % $210, $5,975, $141, $351, $492, % 3/1/2031 $5,975, $137, $137, % 9/1/ % $225, $5,750, $137, $362, $500, % 3/1/2032 $5,750, $133, $133, % 9/1/ % $245, $5,505, $133, $378, $512, % 3/1/2033 $5,505, $129, $129, % 9/1/ % $265, $5,240, $129, $394, $523, % 3/1/2034 $5,240, $124, $124, % 9/1/ % $285, $4,955, $124, $409, $533, % 3/1/2035 $4,955, $118, $118, % 9/1/ % $305, $4,650, $118, $423, $542, % 3/1/2036 $4,650, $112, $112, % 9/1/ % $330, $4,320, $112, $442, $555, % 3/1/2037 $4,320, $106, $106, % 9/1/ % $350, $3,970, $106, $456, $562, % 3/1/2038 $3,970, $99, $99, % 9/1/ % $375, $3,595, $99, $474, $573, % 3/1/2039 $3,595, $89, $89, % 9/1/ % $410, $3,185, $89, $499, $589, % 3/1/2040 $3,185, $79, $79, % 9/1/ % $440, $2,745, $79, $519, $599, % Albert A. Webb Associates Page 1 of 2 Execution Time: 2/26/ :05:04 PM

15 Debt Service Schedule - Current County of Riverside CFD 07-2 (Series 2017) (Clinton Keith) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 3/1/2041 $2,745, $68, $68, % 9/1/ % $475, $2,270, $68, $543, $612, % 3/1/2042 $2,270, $56, $56, % 9/1/ % $510, $1,760, $56, $566, $623, % 3/1/2043 $1,760, $44, $44, % 9/1/ % $545, $1,215, $44, $589, $633, % 3/1/2044 $1,215, $30, $30, % 9/1/ % $585, $630, $30, $615, $645, % 3/1/2045 $630, $15, $15, % 9/1/ % $630, $0.00 $15, $645, $661, % Totals: $7,610, $6,825, $14,435, $14,435, Bond Issue Date: 6/1/2017 Original Bond Principal: $7,610, Albert A. Webb Associates Page 2 of 2 Execution Time: 2/26/ :05:04 PM

16 Appendix A APPENDIX B District Boundary Map

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25 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