EASTERN MUNICIPAL WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO (VISTA DEL VALLE/CALDER RANCH) 2013 SPECIAL TAX BONDS

Transcription

1 EASTERN MUNICIPAL WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO (VISTA DEL VALLE/CALDER RANCH) 2013 SPECIAL TAX BONDS ANNUAL DISCLOSURE REPORT DATED December 20, 2013

2 Content of Annual Disclosure Report Pursuant to the Continuing Disclosure Agreement Dated June 1, 2013 Eastern Municipal Water District has agreed to provide annual continuing disclosure information as outlined in the "Form of District Continuing Disclosure Certificate" for the following bond issue: EASTERN MUNICIPAL WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO (VISTA DEL VALLE/CALDER RANCH) 2013 SPECIAL TAX BONDS Issued on June 13, 2013 The following are the cusip numbers related to the bond issue: Maturity Date (September 1) CUSIP No. * L8E L7H L7J L7K L7L L7M L7N L7P L7Q L7R L7S L7T L7U L7V L7W L7X L7Y L7Z L8A L8B L8C L8D4 * CUSIP is a registered trademark of the American Bankers Association. Report Prepared by Psomas on behalf of EMWD.

3 EASTERN MUNICIPAL WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO (VISTA DEL VALLE/CALDER RANCH) 2013 SPECIAL TAX BONDS Issued on June 13, 2013 Table of Contents Exhibit No. and Exhibit Title A. Financial Statements B. 1. Principal Outstanding 2. Fund Balances and Reserve Requirements 3. Assessed Valuations 4. Rate and Method of Apportionment Update 5. Special Taxes Collected and Delinquency 6. Foreclosure Actions 7. Development Status 8. Projects - Status of Construction C. Reporting of Significant Events

4 Exhibit A Financial Statements The comprehensive annual financial report for Eastern Municipal Water District dated as of October 31, 2013 is available on the District's website at: Exhibit A - Page 1

5 Exhibit B-1 1. Principal Outstanding Principal amount of bonds outstanding as of September 2, 2013 for the Bonds is: $3,675, Eastern Municipal Water District Community Facilities District No (Vista Del Valle/Calder Ranch) 2013 Special Tax Bonds Issue Date: 06/13/13 Payment Date Interest Rate Original Bond Call Principal Semi-Annual Total Principal & Annual Debt Principal Amounts Outstanding Interest Interest Service 1-Sep-13 $3,675, $31, $31, $31, Mar-14 $3,675, $73, $73, Sep % $10, $3,665, $73, $83, $156, Mar-15 $3,665, $73, $73, Sep % $85, $3,580, $73, $158, $231, Mar-16 $3,580, $72, $72, Sep % $85, $3,495, $72, $157, $229, Mar-17 $3,495, $71, $71, Sep % $90, $3,405, $71, $161, $233, Mar-18 $3,405, $70, $70, Sep % $90, $3,315, $70, $160, $231, Mar-19 $3,315, $69, $69, Sep % $90, $3,225, $69, $159, $229, Mar-20 $3,225, $68, $68, Sep % $95, $3,130, $68, $163, $231, Mar-21 $3,130, $66, $66, Sep % $95, $3,035, $66, $161, $228, Mar-22 $3,035, $65, $65, Sep % $100, $2,935, $65, $165, $230, Mar-23 $2,935, $63, $63, Sep % $100, $2,835, $63, $163, $227, Mar-24 $2,835, $61, $61, Sep % $105, $2,730, $61, $166, $228, Mar-25 $2,730, $59, $59, Sep % $110, $2,620, $59, $169, $229, Mar-26 $2,620, $57, $57, Sep % $110, $2,510, $57, $167, $225, Mar-27 $2,510, $55, $55, Sep % $115, $2,395, $55, $170, $225, Mar-28 $2,395, $53, $53, Sep % $120, $2,275, $53, $173, $226, Mar-29 $2,275, $50, $50, Sep % $125, $2,150, $50, $175, $226, Mar-30 $2,150, $48, $48, Sep % $130, $2,020, $48, $178, $226, Mar-31 $2,020, $45, $45, Sep % $135, $1,885, $45, $180, $226, Mar-32 $1,885, $42, $42, Sep % $140, $1,745, $42, $182, $225, Mar-33 $1,745, $39, $39, Sep % $145, $1,600, $39, $184, $224, Mar-34 $1,600, $36, $36, Sep-34 * 4.500% $150, $1,450, $36, $186, $223, Mar-35 $1,450, $33, $33, Sep-35 * 4.500% $155, $1,295, $33, $188, $221, Mar-36 $1,295, $29, $29, Sep-36 * 4.500% $165, $1,130, $29, $194, $224, Mar-37 $1,130, $26, $26, Sep-37 * 4.500% $170, $960, $26, $196, $222, Mar-38 $960, $22, $22, Sep-38 ** 4.625% $175, $785, $22, $197, $219, Mar-39 $785, $18, $18, Sep-39 ** 4.625% $185, $600, $18, $203, $221, Mar-40 $600, $13, $13, Sep-40 ** 4.625% $190, $410, $13, $203, $217, Mar-41 $410, $9, $9, Sep-41 ** 4.625% $200, $210, $9, $209, $218, Mar-42 $210, $4, $4, Sep-42 ** 4.625% $210, $0.00 $4, $214, $219, Total $3,675, $2,839, $6,514, $6,514, * Denotes Sinking Fund for Term Bond 2037 ** Denotes Sinking Fund for Term Bond 2042 Exhibit B-1 - Page 1

6 Exhibit B-2 2. Fund Balances and Reserve Requirements As of September 30, 2013 Account Name 1. Bond Redemption 2. EMWD Imp. Fund Acct. 3. EMWD Capacity Acct. 4. Park District 5. School District 6. Cost of Issuance 7. Special Reserve 2 8. Reserve Acct. 9. Interest Acct. Total Account Balance 1 $70, $1,640, $112, $5.03 $23.98 $21, $9, $233, $10, $2,098, Special Tax Fund The Special Tax Revenues deposited in the Special Tax Fund will be deposited into the following funds and accounts in the following order of priority: 1. Administrative Expense 2. Interest Account 3. Principal Account 4. Redemption Account 5. Reserve Account 6. Rebate Fund 7. Special Tax Holding Fund Reserve Account of the Special Tax Fund The Reserve Fund must be maintained at the Reserve Requirement which in the Indenture as the amount, as of any date of calculation, that is equal to the sum of the least of (i) 10% of the initial prinicipal amount of the Bonds, (ii) Maimum Annual Debt Service on the then Outstanding Bonds, or (iii) 125% of Average Annual Debt Service on the then Outstanding Bonds. The current Bond Reserve Requirement is $233, As of September 30, 2013, the balance in the Reserve Fund was $233, Source: Eastern Municipal Water District 2. This account will be closed after the issuance of the last series of Parity Bonds. Exhibit B-2 - Page 1

7 3. Assessed Valuations Exhibit B-3 Note the following with respect to the title headings for the tables: Largest Property Owners Based on Total Annual Special Tax Assessee Name Parcels Total Special Tax Fiscal Year % of Total Special Tax Total AV Fiscal Year % of Total AV CAPITAL PACIFIC REAL 41 $10, % $3,288, % CUMPIAN JOSE 1 $2, % $438, % JONES BERNARD 1 $2, % $596, % SCOTT RICHARD A 1 $2, % $432, % HAUGH GARY RAY 1 $2, % $538, % DOMINGUEZ JOEL A 1 $2, % $451, % ELHALWANI SALIM 1 $2, % $434, % GARCIA ULISES 1 $2, % $403, % CARPENTER TY M 1 $2, % $516, % CAMPOS DAN 1 $2, % $483, % Subtotal 50 $33, % $7,584, % All Others 79 $147, % $23,862, % TOTAL 129 $180, % $31,446, % Development Status Status The tables in this section detail the largest property owners, assessed valuation, and development status for this CFD. Assessee Name is information provided by Riverside County s Equalized Roll for Fiscal Year and may or may not accurately reflect actual property ownership. Assessed Valuation (AV) is provided by Riverside County Assessor s records for Fiscal Year and may or may not accurately reflect actual market value. Developed is defined as any parcel that has a value for improvements and which are classified as non-vacant by Riverside County Assessor's Office. Parcels Total Special Tax Fiscal Year % of Total Special Tax Total AV Fiscal Year % of Total AV Developed 86 $180, % $29,156, % Undeveloped 43 $ % $2,290, % TOTAL 129 $180, % $31,446, % Exhibit B-3 - Page 1

8 Exhibit B-4 4. Rate and Method of Apportionment Update RMA Update There have been no changes to the Rate and Method of Apportionment as of the date of this report. Rate and Method of Apportionment The following is a summary of the Rate and Method of Apportionment. For complete details please refer to the CFD Report filed with Eastern Municipal Water District or the Revised Notice of Special Tax Lien, recorded February 8, 2006, Document No In general, the Rate and Method of Apportionment imposes a different Maximum Special Tax on Taxable Property within the Community Facilities District depending upon whether such Taxable Property is classified as: (i) Developed Property (in general, Taxable Property included in a Final Map recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied and for which a building permit for new construction was issued prior to the April 1 preceding such Fiscal Year), (ii) Approved Property (in general, parcels of Taxable Property included in a Final Map recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied but for which no building permit was issued prior to the April 1 preceding such Fiscal Year), or (iii) Undeveloped Property (in general, Taxable Property that is not Developed Property or Approved Property, Public Property or Property Owner s Association Property ). Different Maximum Special Taxes are also applicable to Developed Property depending upon: (a) its status as either Residential Property or Non- Residential Property, (b) in the case of Residential Property, its status as Single Family Property or Multifamily Residential Property or (c) in the case of Single Family Property, the Residential Floor Area of the structure. Pursuant to the Rate and Method of Apportionment the Board is required to determine the Special Tax Requirement for the Community Facilities District for each Fiscal Year. The Special Tax Requirement for the Community Facilities District is the amount required in any Fiscal Year to pay: (i) annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year, (ii) periodic costs on such Bonds, including but not limited to, credit enhancement and rebate on the Bonds, (iii) Administrative Expenses, (iv) an amount equal to any anticipated shortfall due to Special Tax delinquencies in the prior Fiscal Year, and (v) any amounts required to establish or replenish any reserve funds for the outstanding Bonds, and (vi) (but only prior to the sale of the Bonds) pay directly for acquisition or construction of the applicable project facilities eligible under the Act, less (vii) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture. Exhibit B-4 - Page 1

9 Exhibit B-4 The Special Tax Requirement for the Community Facilities District is to be satisfied first by levying the Special Tax Proportionately on each Parcel of Developed Property at up to 100% of the 17 Assigned Special Tax. If additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property. If additional moneys are still needed to satisfy the Special Tax Requirement, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax. If additional moneys are still needed to satisfy the Special Tax Requirement, the Special Tax that is to be levied on each Parcel of Single Family Residential Property whose Maximum Special Tax is derived by the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax. Finally, any additional amounts required in order to satisfy the Special Tax Requirement shall be raised by the levy of the Special Tax Proportionately on each Parcel of Public Property and/or Property Owner s Association Property within the Community Facilities District that is not Exempt Property at up to 100% of the applicable Maximum Special Tax. Notwithstanding the above, under no circumstances will the Special Tax levied against any Parcel of Residential Property be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels by more than 10% per Fiscal Year above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. The Assigned Special Tax for Developed Property within Zone 1 of the Community Facilities District that is classified as Single Family Property ranges from $2,760 to $3,409, depending on the size of the residence. The Maximum Special Tax for Multifamily Residential Property is $16,556 per taxable unit. The Maximum Special Tax for each Parcel of Approved Property is the quotient obtained by dividing (a) the product of (i) $16,556 multiplied by (ii) the total Acreage of Taxable Property (excluding Acreage associated with Non-Residential Property, Multifamily Residential Property, Public Property and/or Property Owner s Association Property that is not Exempt Property) by (b) the number of Parcels classified or to be classified as Single Family Property. The Maximum Special Tax for each Parcel of Undeveloped Property or Public Property and/or Owner s Association Property that is not Exempt Property is $16,566 per Acre. The Assigned Special Tax for Developed Property within Zone 2 of the Community Facilities District that is classified as Single Family Property ranges from $3,123 to $4,231, depending on the size of the residence. The Maximum Special Tax for Multifamily Residential Property is $4,549 per taxable unit. The Maximum Special Tax for each Parcel of Approved Property is the quotient obtained by dividing (a) the product of (i) $4,549 multiplied by (ii) the total Acreage of Taxable Property (excluding Acreage associated with Non-Residential Property, Multifamily Residential Property, Public Property and/or Property Owner s Association Property that is not Exempt Property) by (b) the number of Parcels classified or to be classified as Single Family Property. The Maximum Special Tax for each Parcel of Undeveloped Property or Public Property and/or Owner s Association Property that is not Exempt Property is $4,549 per Acre. The Rate and Method provides that the annual Special Tax may not be levied after Fiscal Year Exhibit B-4 - Page 2

10 Exhibit B-5 5. Special Taxes Collected and Delinquency The table included in this section summarizes the delinquencies through October 31, Note the following with respect to the title headings for the table: Delinquency Charges - Includes a 10% penalty for each past due installment and 1.5% per month on each past due installment, which begins to accrue July 1st of the tax year following the delinquency. Amount Due - Does not include judicial foreclosure costs if a parcel has a foreclosure judgment recorded. Delinquent % of Levy - Does not include judicial foreclosure costs if a parcel has a foreclosure judgment recorded. Tax Year Special Tax Levied Special Tax Collected Delinquent Special Tax Amount Delinquent Parcels Delinquency Charges Amount Due Delinquent % of Levy $83, $82, $1, $ $1, % Total $83, $82, $1, $ $1, The Special Taxes levied for FY was at 30% of the Assigned Special Tax rates on properties classifed as Developed. Exhibit B-5 - Page 1

11 6. Foreclosure Actions Exhibit B-6 Foreclosure Covenant Pursuant to Section of the Act, the Community Facilities District has convenanted 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 Communtiy Facilities District is not required to commence or pursue such proceeding 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 proceeding with respect to any property owned by a singe property owner who is delinquent in the payment of the Special Taxes in the amount of $5,000 or more). Foreclosure Actions The Water District will prepare for the filing of Judicial Foreclosure proceedings and will continue to pursue collection of non-payments. If non-payments are not resolved in an expeditious manner the District will continue to Superior Court. As of December 1, 2013, no foreclosure actions have been filed with Superior Court. Exhibit B-6 - Page 1

12 7. Development Status Exhibit B-7 The special tax rates for the tax year are: RMA Category The total number of taxable parcels which are included in a Final Map are 129. The total number of building permits issued are 86. RMA Description FY Amount Levied Per Category Special Tax Rate Levied Per Parcel/Acre Number of Taxable Parcels 1A Zone 1-3,701 sq. ft. or greater $21, $3, B Zone 1-3,501 sq. ft. to 3,700 sq. $28, $3, C Zone 1-3,001 sq. ft. to 3,500 sq. $27, $3, D Zone 1-3,000 sq. ft or less $19, $2, E Zone 1 - Multifamily Residential $0.00 $16, F Zone 1 - Non-Residential Property $0.00 $16, A Zone 2-4,101 sq. ft. or greater $8, $4, B Zone 2-3,701 sq. ft. to 4,100 sq. $19, $3, C Zone 2-3,301 sq. ft to 3,700 sq. $23, $3, D Zone 2-2,901 sq. ft. to 3,300 sq. $18, $3, E Zone 2-2,900 sq. ft. or less $13, $3, F Zone 2 - Multifamily Residential $0.00 $4, G Zone 2 - Non-Residential Property $0.00 $4, A1 Approved Property $0.00 $ E Exempt Property $0.00 $ U1 Zone 1 Undeveloped Property $0.00 $16, U2 Zone 2 Undeveloped Property $0.00 $4, TOTAL $180, Please note: A Final Map has been recorded for Parcels within RMA Categories as noted above and have a building permit issued. Parcels within the Approved Property RMA Category are in a Final Map however, building permits have not been issued. There may be additional parcels in a Final Map which did not receive a levy for Fiscal Year and are not included within the above table. Exhibit B-7 - Page 1

13 8. Projects - Status of Construction Exhibit B-8 The following is a description of the project location. The property in the Community Facilities District is divided into two zones. Zone 1, known as Vista Del Valle, is located on approximately gross acres in the unincorporated community of Winchester Valley in the County. Construction within Zone 1 is completed and includes 49 completed homes which closed escrow to individual homeowners between June 2007 and February Zone 2, known as Calder Ranch, is located in the City of Menifee south of Craig Avenue, east of Byers Road and west of Murrieta Road. Zone 2 contains approximately gross acres being developed by Capital Pacific into a planned total of 70 single family detached dwellings at buildout. All of the property within Zone 2 is within final Tract Map No The following is the current status of the project/construction. The project includes: (i) the acquisition or construction of certain water and sewer system improvements by or for the Water District that are required in order to provide water and sewer service to the property within the Community Facilities District and payments to the Water District of the Community Facilities District's proportionate share of the costs of the Water District's water, sewer and sewer treatment facilities, (ii) certain park facilities to be owned and operated by Valley-Wide Recreation and Park District, (iii) certain school facilities to be owned and operated by Murrieta Valley Unified School District and (iv) certain school facilities to be owned and operated Menifee Union School District. The construction of the public improvements to be acquired or constructed with the proceeds of the Bonds is under the control of the Developer. Reimbursements for completed and accepted public facilities will be processed as requests are made. Exhibit B-8 - Page 1

14 Exhibit C Reporting of Significant Events Pursuant to the provisions of Section 5 of the Form of Continuing Disclosure Agreement, notice of the occurrence of any of the following events, if material, for the current fiscal year is as follows: Item Event Description Items Related to Section 5 (a) Has Event Occurred During the Fiscal Year? Event Notice Filing Date 1. Principal and interest payment delinquencies NO N/A Unscheduled draws on the debt service reserves reflecting financial difficulties Unscheduled draws on credit enhancements reflecting financial difficulties Substitution of credit or liquidity providers, or their failure to perform Adverse tax opinions or events adversely affecting the tax-exempt status of the Bonds NO NO NO NO N/A N/A N/A N/A 6. Defeasances NO N/A 7. Tender offers NO N/A 8. Bankruptcy NO N/A 9. Rating changes NO N/A 1. Items Related to Section 5 (b) Mergers, consolidations, acquisitions, the sale of all or substantially all of th eassets fo the obligated persons or their termination NO N/A 2. Appointment of successor or change/additional fiscal agent NO N/A 3. Non-Payment related defaults NO N/A 4. Modifications to rights of Bondholders NO N/A 5. Notices of prepayment NO N/A 6. Release, substitution or sale of property securing repayment of the Bonds NO N/A Exhibit C - Page 1