Denair Unified School District CONTINUING DISCLOSURE ANNUAL REPORT FISCAL YEAR ENDING JUNE 30, 2012 Prepared By: 3460 Lester Road Denair, CA 95316
TABLE OF CONTENTS A. INTRODUCTION... 1 B. AVERAGE DAILY ATTENDANCE... 1 C. PENSION PLAN CONTRIBUTIONS... 2 D. DISTRICT OUTSTANDING DEBT... 2 E. AUDITED FINANCIAL STATEMENT... 3 F. ASSESSED VALUATION... 4 G. SECURED TAX CHARGES & DELINQUENCIES... 4 H. AD VALOREM TAXES... 4 I. LARGEST LOCAL SECURED TAXPAYERS... 5 J. REPORTING OF SIGNIFICANT EVENTS... 6 K. CONTACT INFORMATION... 8
A. INTRODUCTION The ( District ) of Stanislaus County herby provides the continuing disclosure annual report pursuant to the Continuing Disclosure Agreements in connection with the following financings for the fiscal year ended June 30, 2012 ( Annual Report ) Dated Date Base CUSIP Par Amount Name of Issue March 28, 2002 248217 $5,161,002.00 General Obligation Bonds, Election of 2001, Series A May 22, 2003 248217 $3,037,067.05 General Obligation Bonds, Election of 2001, Series B August 18, 2004 248218 $3,930,000.00 2004 Certificates of Participation July 1, 2008 248217 $7,500,000.00 General Obligation Bonds, Election of 2007, Series 2008 May 12, 2009 248217 $2,859,979.90 2009 Bond Anticipation Notes June 29, 2011 248217 $3,445,003.00 General Obligation Bonds, Election of 2007, Series 2011 February 22, 2012 248217 $3,825,000.00 2012 General Obligation Refunding Bonds B. AVERAGE DAILY ATTENDANCE DENAIR UNIFIED SCHOOL DISTRICT 2011-12 Average Daily Base Revenue Limit Per Fiscal Year Enrollment (1) Attendance ADA 2011-12 1,638 1,526.86 $5,465 (1) District enrollment includes the District s charter school Source: District [THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK] 1
C. PENSION PLAN CONTRIBUTIONS Fiscal Year State Teachers Retirement California Public Employees System (STRS) Retirement System (PERS) 2011-2012 $603,746 $201,343 The Postemployment Benefit Plan (the Plan ) is a single-employer defined benefit healthcare plan administered by the District. The Plan provides medical and dental insurance benefits to eligible retirees and their spouses. Membership in the Plan consists of 8 retirees and beneficiaries currently receiving benefits and 142 active plan members. The District s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial accrued liabilities (UAAL) (or funding excess) over a period not to exceed 30 years. For the fiscal year ending June 30, 2011, the ARC was $166,851 and the District s contribution was $105,435, leaving a net OPEB obligation of $40,941. D. DISTRICT OUTSTANDING DEBT SCHEDULE OF CHANGES IN LONG TERM DEBT FOR THE YEAR ENDED JUNE 30, 2012 Balance July 01, 2011 Additions Deductions Balance June 30, 2012 Balance Due In One Year Governmental Activities General Obligation Bonds $21,501,131 $4,238,146 $4,100,000 $21,639,277 $315,000 Premium on Bond Issue 147,881 362,922 9,242 501,561 42,235 Certificates of Participation 3,150,000-170,000 2,980,000 175,000 Compensated Absences Net 132,417 18,345-150,762 - Early Retirement 25,000 12,000 25,000 12,000 6,000 Other Postemployment Benefits - 163,977 123,036 40,941 - Total $24,956,429 $4,795,390 $4,427,278 $25,324,541 $538,235 Source: District 2
E. AUDITED FINANCIAL STATEMENT FY 2011-12 Budget FY 2011-12 Audit FY 2012-13 Budget (1) Revenues: Revenue Limit Sources $5,969,039 $5,972,094 $5,877,930 Federal Revenue 993,133 798,496 725,417 Other State Revenue 1,596,536 1,705,160 1,590,904 Other Local Revenue 1,008,840 1,021,392 952,148 Total Revenues $9,567,548 $9,497,142 $9,146,399 Expenditures: Certificated Salaries $4,589,461 $4,508,548 $4,268,040 Classified Salaries 1,758,931 1,755,154 1,674,208 Employee Benefits 1,682,415 1,673,677 1,670,418 Books and Supplies 234,158 215,193 123,575 Services and Other Operating 1,727,714 1,854,524 1,438,720 Expenditures Other Outgo 122,842 141,429 257,540 Direct Support/Indirect Costs - - (129,262) Capital Outlay 10,999 10,999 - Other Financing Uses - - - Debt Service Principal - - - Interest - - - Total Expenditures $10,125,620 $10,158,624 $9,303,239 Excess (Deficiency) of Revenues Over (Under) Expenditures ($558,072) ($661,482) ($156,840) Other Financing Sources (Uses) Transfers In 37,221 39,999 - Transfers Out - (124,192) - Total Other Financing Sources (Uses) $37,221 ($84,193) - Net Changes in Fund Balance ($520,851) ($745,675) ($156,840) Fund Balance July 1 $1,194,484 $1,194,484 $673,633 Fund Balance June 30 $673,633 $448,809 $516,793 (1) FY 2012-13 Budget was adopted by the Board of Education on June 28, 2012 3
F. ASSESSED VALUATION DENAIR UNIFIED SCHOOL DISTRICT 2012-13 Local Secured Utility Unsecured Total 2012-13 $763,927,998 $488,176 $30,026,776 $794,442,950 Source: California Municipal Statistics G. SECURED TAX CHARGES & DELINQUENCIES 2011-12 SECURED TAX CHARGE AND DELINQUENCY Not available for the district. Source: California Municipal Statistics H. AD VALOREM TAXES TYPICAL TAX RATES PER $100 ASSESSED VALUATION (TRA 90-103) 2012-13 General 1.0000 0.1241 Yosemite Community College District 0.0288 Total 1.1529 Source: California Municipal Statistics [THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK] 4
I. LARGEST LOCAL SECURED TAXPAYERS DENAIR UNIFIED SCHOOL DISTRICT 2012-13 Property Owner 2012-13 Assessed Valuation % of Total (1) 1 Fresno Farming LLC $23,568,985 3.09% 2 Valley Fresh Foods Inc. 21,910,047 2.87 3 Foster Dairy Farms 10,541,947 1.38 4 Wendell J. Naraghi 7,804,354 1.02 5 Roy A. and Doris J. Johnson 6,989,127 0.91 6 Montpelier Orchards 6,585,205 0.86 7 California Royale LLC 6,500,212 0.85 8 Lakespring Farms Corp. 5,505,366 0.72 9 Jeanette Veldhuis 5,244,609 0.69 10 Ahlem Foothill Farms 5,016,188 0.66 11 William Haringa 4,722,219 0.62 12 Caloy Company LLC 4,617,222 0.60 13 Naraghi-Quattrin Margaret 4,487,853 0.59 14 Protein Enterprises 4,428,719 0.58 15 Catherine H. Dirkse 4,401,615 0.58 16 Jose L. and Barbara O. Garcia 4,152,286 0.54 17 Daniel Properties LP 3,836,235 0.50 18 Texas Municipal Plans Consortium LLC 3,731,662 0.49 19 FJ Venture Partnership 3,511,897.046 20 Joseph B. and Belinda M. Silva 3,453,535.045 Total $141,006,283 18.46% (1) 2012-13 Local Secured Assessed Valuation: $763,927,998 Source: California Municipal Statistics [THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK] 5
J. REPORTING OF SIGNIFICANT EVENTS Yes* No 1 Principal and interest delinquencies X 2 Unscheduled draws on debt service reserves reflecting financial difficulties X 3 Unscheduled draws on credit enhancements reflecting financial difficulties X 4 Substitution of the credit or liquidity providers or their failure to perform X 5 Issuance by the Internal Revenue Service of proposed or final determinations of taxability or of a Notice of Proposed Issue (IRS Form 57-01-TEB) X 6 Tender offers X 7 Defeasances X 8 Rating changes X 9 Bankruptcy, insolvency, receivership or similar proceedings X 10 Adverse tax opinions or other material notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other X material events affecting the tax status of the Bonds 11 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 X of a definitive agreement relating to any such actions, other than pursuant to its terms 12 Appointment of a successor or additional trustee or the change of the name of a trustee X 13 Nonpayment related defaults X 14 Modifications to the rights of Owners of the Bonds X 15 Notices of redemption X 16 Release, substitution or sale of property securing repayment of the Bonds X *If answered Yes, please see following for notification of significant events The District refunded a portion of its General Obligation Bonds Election of 2001, Series A using proceeds from the District s 2012 General Obligation Refunding Bonds dated February 22, 2012. Maturities to be Refunded (August 1) IDENTIFICATION OF REFUNDED BONDS Principal Amount CUSIP Redeemed 2013 248217 CE9 $160,000 100% 2014 248217 CF6 195,000 100% 2020 248217 CG4 2,175,000 100% 2021 248217 CH2 620,000 100% 2022 248217 CJ8 720,000 100% Redemption Price (% of Par Amount Redeemed) 6
Maturity Date (August 1) GENERAL OBLIGATION BONDS ELECTION OF 2001, SERIES A OUTSTANDING BONDS FOLLOWING ISSUANCE OF REFUNDING BONDS Original Principal Amount Maturity Value CUSIP 2023 $160,162 $835,000 248217 CK5 2024 163,806 920,00 248217 CL3 2025 166,468 1,010,000 248217 CM1 2026 170,1,16 1,115,000 248217 CN9 [THE REST OF THIS PAGE LEFT INTENTIONALLY BLANK] 7
K. CONTACT INFORMATION DISTRICT Ms. Judy Sylvester Deputy Superintendent /Chief Business Official 3460 Lester Road Denair, CA 95316 Tel: (209) 632-7514 Fax: (209) 632-4184 Email: jsylvester@dusd.k12.ca.us DISCLOSURE CONSULTANT Caldwell Flores Winters, Inc. 6425 Christie Avenue Suite 270 Emeryville, CA 94608 Tel: (510) 596-8170 Fax: (510) 450-0208 Email: continuingdisclosure@cfwinc.com 8