DAVID TAUSSIG & Associates, Inc. SANTA MARGARITA WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO. 2013-1 August 10, 2016 Public Finance Public Private Partnerships Urban Economics Newport Beach Fresno San Francisco San Jose Dallas
ADMINISTRATION REPORT FISCAL YEAR 2016-2017 SANTA MARGARITA WATER DISTRICT COMMUNITY FACILITIES DISTRICT NO. 2013-1 PREPARED FOR SANTA MARGARITA WATER DISTRICT 26111 Antonio Parkway Las Flores, California 92688 PREPARED BY DAVID TAUSSIG & ASSOCIATES, INC. 5000 Birch Street, Suite 6000 Newport Beach, California 92660 (949) 955-1500 August 10, 2016
Table of Contents Section Page Introduction...1 I. Special Tax Classifications and Development Update...2 Special Tax Classifications...2 Development Update...2 II. Sources and Applications of Funds...11 Description of Funds and Accounts...11 Flow of Funds...11 III. Fiscal Year 2015-2016 Special Tax Levy...15 IV. Fiscal Year 2016-2017 Special Tax Requirement...16 V. Method of Apportionment...18 Maximum Special Taxes...18 Apportionment of Special Taxes...18 EXHIBITS Exhibit A - Boundary Map and Zone Map Exhibit B - Summary of Transactions to Funds and Accounts for Fiscal Year 2015-2016 Exhibit C - Rate and Method of Apportionment Exhibit D - Special Tax Roll Fiscal Year 2016-2017
INTRODUCTION This report provides an analysis of the financial and administrative obligations of Community Facilities District No. 2013-1 ("CFD No. 2013-1") of the Santa Margarita Water District (the "Water District"). In July 2013, the Series 2013 Special Tax Bonds (the " 2013 Bonds") were issued in the amount of $57,420,000. CFD No. 2013-1 is a legally constituted governmental entity established under the Mello-Roos Community Facilities Act of 1982 (the "Act"), as amended. The Act provides an alternative method for the financing of certain public capital facilities and services. Specifically, CFD No. 2013-1 is authorized to issue up to $70,000,000 in bonds. The proceeds of the 2013 Bonds are to be used to finance the acquisition and construction of certain water, fire, and offsite facilities necessary to meet increased demands placed on the Santa Margarita Water District and the County of Orange as a result of the development of CFD No. 2013-1. The bonded indebtedness of CFD No. 2013-1 is both secured and repaid through the annual levy and collection of special taxes from all property subject to the tax within the community facilities district. In calculating the special tax liability for fiscal year 2016-2017, this report not only examines the financial obligations of the current fiscal year, but also analyzes the amount of new development which has occurred within the boundaries of the community facilities district. The current outstanding principal is equal to $57,140,000 which is based on principal paid through September 1, 2015. The 2013 Bonds are scheduled to be paid off in the year 2043. Pursuant to the Rate and Method of Apportionment ( RMA ), the special tax shall be levied each year to fully satisfy the special tax requirement, but in no event shall it be levied after Fiscal Year 2054-2055. The RMA is included in Exhibit C. Maps showing the boundaries of CFD No. 2013-1, as well as the Zones, are included in Exhibit A. This report is organized into the following sections: Section I Section I provides an update of the development activity occurring within each Zone of CFD No. 2013-1. Section II Section II examines the financial activity in the funds and accounts established pursuant to the Bond Indenture, between CFD No. 2013-1 and the trustee (the "Indenture"). Section III Section III analyzes the fiscal year 2015-2016 special tax levy. Section IV Section IV determines the financial obligations of CFD No. 2013-1 for fiscal year 2016-2017. Section V Section V reviews the methodology used to apportion the special tax requirement between Developed Property, Approved Property, and Undeveloped Property. A table of the 2016-2017 special taxes for each classification of property is included. Santa Margarita Water District Page 1 Community Facilities District No. 2013-1 August 10, 2016
I. SPECIAL TAX CLASSIFICATIONS AND DEVELOPMENT UPDATE Special Tax Classifications The methodology employed to calculate and apportion the special tax is contained in a document entitled the Rate and Method of Apportionment of the Special Tax. The Rate and Method of Apportionment defines three categories of property, namely "Developed Property," "Approved Property," and "Undeveloped Property." In addition, fourteen separate Zones have been established for property within the CFD. A table of the special tax classifications for each Zone is shown in Section V herein. No special tax shall be levied on property that is not located in a Zone. The RMA defines Developed Property, Approved Property, and Undeveloped Property as shown below: Developed Property means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Conservation Property, Taxable Property Owner Association Property and Taxable Public Property, for which a building permit for new construction was issued prior to March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. Once an Assessor s Parcel has been designated as Developed Property, it will remain classified as Developed Property. Approved Property means, for each Fiscal Year, all Taxable Property, exclusive of Developed Property, Taxable Conservation Property, Taxable Property Owner Association Property, and Taxable Public Property, for which a final parcel map or final subdivision map was recorded prior to January 1 of the previous Fiscal Year. Undeveloped Property means, for each Fiscal Year, all Taxable Property not classified as Approved Property, Developed Property, Taxable Conservation Property, Taxable Property Owner Association Property or Taxable Public Property. Approved Property is distinguished from Undeveloped Property by the recordation of a final map. Specifically, property for which a final map was recorded as of January 1 will be classified as Approved Property in the following fiscal year. For example, all property in CFD No. 2013-1 for which a final map was recorded prior to January 1, 2016, will be classified as Approved Property in fiscal year 2016-2017. Hence, the final map research discussed below focuses on the period ending January 1, 2016. Developed Property is distinguished from Undeveloped Property by the issuance of a building permit. Specifically, property for which a building permit was issued as of March 1 will be classified as Developed Property in the following fiscal year. For example, all property in CFD No. 2013-1 for which building permits were issued prior to March 1, 2016, will be classified as Developed Property in fiscal year 2016-2017. Hence, the development research discussed below focuses on the period ending March 1, 2016. Development Update CFD No. 2013-1 encompasses approximately 416 gross acres of land located in the portion of southern Orange County known as Village of Sendero. Of this acreage, approximately 115 acres are expected to be developed. Background research was conducted to determine the amount and type of development activity that occurred during the previous fiscal year. Santa Margarita Water District Page 2 Community Facilities District No. 2013-1 August 10, 2016
Review of the County of Orange s final map records indicated that prior to January 1, 2016, thirteen final maps had been recorded. The table below lists the final maps, recordation dates, and applicable Zones for maps recorded as of January 1, 2016. Table 1 Community Facilities District No. 2013-1 Recorded Final Maps Tract No. Recorded Zone 17453 October 23, 2012 P1, P2, P3, P8, P9, P10, P11, AQ2, AQ3, AQ5 17062 November 28, 2012 AQ4 17058 March 8, 2013 P10 17462 March 8, 2013 AQ5 17059 March 22, 2013 P9 17060 March 28, 2013 P9 17057 April 23, 2013 P11 17063 April 25, 2013 AQ3 17064 April 26, 2013 P8 17065 April 26, 2013 P8 17061 September 25, 2013 AQ5 17559 October 30, 2013 A 17054 December 21, 2015 R, O Review of the County of Orange s building permit records indicated that prior to March 1, 2016, building permits for all 1,227 residential units had been issued within CFD No. 2013-1. No building permits were issued for non-residential property. The tables below list the development status for each Zone as of March 1, 2016 by special tax classification. Santa Margarita Water District Page 3 Community Facilities District No. 2013-1 August 10, 2016
Table 2 Zone P1 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 950 sq. ft. 0 Units Class 2 Residential Property 951 to 1,150 sq. ft. 17 Units Class 3 Residential Property 1,151 to 1,350 sq. ft. 0 Units Class 4 Residential Property > 1,350 sq. ft. 80 Units Class 5 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 3 Zone P2 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,300 sq. ft. 0 Units Class 2 Residential Property 1,301 to 1,475 sq. ft. 26 Units Class 3 Residential Property 1,476 to 1,550 sq. ft. 32 Units Class 4 Residential Property > 1,550 sq. ft. 38 Units Class 5 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 4 Community Facilities District No. 2013-1 August 10, 2016
Table 4 Zone P3 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,500 sq. ft. 24 Units Class 2 Residential Property 1,501 to 1,675 sq. ft. 24 Units Class 3 Residential Property 1,676 to 1,750 sq. ft. 39 Units Class 4 Residential Property > 1,750 sq. ft. 24 Units Class 5 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 5 Zone P8 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,825 sq. ft. 29 Units Class 2 Residential Property 1,826 to 1,950 sq. ft. 39 Units Class 3 Residential Property > 1,950 sq. ft. 37 Units Class 4 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 5 Community Facilities District No. 2013-1 August 10, 2016
Table 6 Zone P9 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 2,150 sq. ft. 27 Units Class 2 Residential Property 2,151 to 2,350 sq. ft. 34 Units Class 3 Residential Property > 2,350 sq. ft. 44 Units Class 4 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 7 Zone P10 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 2,350 sq. ft. 23 Units Class 2 Residential Property 2,351 to 2,500 sq. ft. 27 Units Class 3 Residential Property > 2,500 sq. ft. 28 Units Class 4 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 6 Community Facilities District No. 2013-1 August 10, 2016
Table 8 Zone P11 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 2,700 sq. ft. 19 Units Class 2 Residential Property 2,701 to 2,900 sq. ft. 24 Units Class 3 Residential Property > 2,900 sq. ft. 20 Units Class 4 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 9 Zone AQ2 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,300 sq. ft. 31 Units Class 2 Residential Property 1,301 to 1,600 sq. ft. 15 Units Class 3 Residential Property 1,601 to 1,800 sq. ft. 31 Units Class 4 Residential Property > 1,800 sq. ft. 14 Units Class 5 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 7 Community Facilities District No. 2013-1 August 10, 2016
Table 10 Zone AQ3 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,650 sq. ft. 22 Units Class 2 Residential Property 1,651 to 1,750 sq. ft. 6 Units Class 3 Residential Property 1,751 to 1,850 sq. ft. 23 Units Class 4 Residential Property 1,851 to 1,950 sq. ft. 24 Units Class 5 Residential Property > 1,950 sq. ft. 10 Units Class 6 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 11 Zone AQ4 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 1,800 sq. ft. 22 Units Class 2 Residential Property 1,801 to 2,000 sq. ft. 20 Units Class 3 Residential Property > 2,000 sq. ft. 18 Units Class 4 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 8 Community Facilities District No. 2013-1 August 10, 2016
Table 12 Zone AQ5 Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres Class 1 Residential Property < 2,050 sq. ft. 13 Units Class 2 Residential Property 2,051 to 2,150 sq. ft. 0 Units Class 3 Residential Property 2,151 to 2,250 sq. ft. 19 Units Class 4 Residential Property 2,251 to 2,300 sq. ft. 0 Units Class 5 Residential Property 2,301 to 2,400 sq. ft. 18 Units Class 6 Residential Property > 2,400 sq. ft. 0 Units Class 7 Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Table 13 Zone A Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres NA Residential Property NA 286 Units NA Non-Residential Property NA 0.00 Acres NA Approved Property NA 0.00 Acres NA Undeveloped Property NA 0.00 Acres Santa Margarita Water District Page 9 Community Facilities District No. 2013-1 August 10, 2016
Table 14 Zone R Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres NA Residential Property NA 0 Units NA Non-Residential Property NA 0.00 Acres NA Approved Property NA 10.74 Acres NA Undeveloped Property NA 0.00 Acres Table 15 Zone O Fiscal Year 2016-2017 Development Status Special Tax Class Description Residential Floor Area Number of Residential Units/Acres NA Residential Property NA 0 Units NA Non-Residential Property NA 0.00 Acres NA Approved Property NA 6.11 Acres NA Undeveloped Property NA 0.00 Acres Table 16 Total Fiscal Year 2016-2017 Development Status Description Developed Property Approved Property Undeveloped Property Number of Units/Acres 1,227 Units 16.85 Acres 0.00 Acres Santa Margarita Water District Page 10 Community Facilities District No. 2013-1 August 10, 2016
II. SOURCES AND APPLICATION OF FUNDS Description of Funds and Accounts The Bond Indenture established four funds for CFD No. 2013-1. They are the Special Tax Fund, Rebate Fund, Surplus Fund, and Acquisition and Construction Fund. Furthermore, accounts and subaccounts have been established within several of the funds. The following table shows the relationship between those funds, accounts and subaccounts. Table 17 Community Facilities District No. 2013-1 Relationship Between Funds and Accounts Fund Account Special Tax Fund Rebate Fund Surplus Fund Acquisition and Construction Fund Interest Account Capitalized Interest Subaccount Principal Account Redemption Account Prepayment Account Reserve Account Administrative Expense Account Rebate Account Alternative Penalty Account NA Cost of Issuance Account Water Acquisition Account Water Construction Account Fire Facilities Account County Facilities Account A detailed analysis of all transactions within the funds and accounts for the 2015-2016 fiscal year is included as Exhibit B. Flow of Funds All receipts from the annual collection of special taxes for CFD No. 2013-1 are deposited in the Special Tax Fund, which is held in trust by the Trustee. The Indenture instructs the Trustee to transfer the special taxes to other funds and accounts in the amount and priority set forth below: 1. Administrative Expense Account of the Special Tax Fund - an amount necessary to defray the Water District's cost of administering CFD No. 2013-1; provided however that any amounts in excess of the Administrative Expense Cap shall not take priority over items 2, 3 and 5 below; Santa Margarita Water District Page 11 Community Facilities District No. 2013-1 August 10, 2016
2. Interest Account of the Special Tax Fund - an amount such that the balance is sufficient to make all interest payments due on the 2013 Bonds on the next interest payment date and any installment of interest due on a previous interest payment date that remains unpaid; 3. Principal Account of the Special Tax Fund - an amount such that the balance is sufficient to make all scheduled principal payments due on the 2013 Bonds on the next September 1, the sinking payment due on the next September 1, and any principal payment due on a previous September 1 that remains unpaid; 4. Redemption Account of the Special Tax Fund - an amount sufficient to pay the principal and premium on any bonds called for optional redemption; 5. Prepayment Account of the Special Tax Fund an amount specified in the certificate of special tax administrator in connection with the delivery of the prepayment to the Trustee. 6. Reserve Account of the Special Tax Fund- any amount that may be necessary to replenish this account to the Reserve Requirement; 7. Rebate Fund - any money owed to the Department of the Treasury of the United States of America due to the calculation of Rebatable Arbitrage as defined by the Indenture, and; 8. Surplus Fund - any money remaining in the Special Tax Fund after the above six transfers are made will be transferred to the Surplus Fund. The Reserve Requirement means that amount as of any date of calculation, which is equal to the lesser of (i) ten percent (10.00%) of the original proceeds of the 2013 Bonds, (ii) maximum annual debt service on the 2013 Bonds, or (iii) one hundred twenty-five percent (125.00%) of the average annual debt service on the 2013 Bonds. Money in this fund in excess of the Reserve Requirement shall be transferred semiannually to the Interest Account of the Special Tax Fund. Moneys in the Acquisition and Construction Funds are used exclusively to pay project costs and costs of issuance. Upon receipt of a notice that all or a portion of the funds are no longer needed to pay project costs, the Trustee will transfer any remaining money in this account to the Special Tax Fund. Upon receipt of a notice that all or a portion of the funds are no longer needed to pay costs of issuance, the Trustee will transfer any remaining money in this account to the Administrative Expense Account. The diagram on the following page illustrates the flow of special tax revenues for CFD No. 2013-1. Santa Margarita Water District Page 12 Community Facilities District No. 2013-1 August 10, 2016
Capistrano Unified School District Community Facilities District No. 2013-1 Series 2013 Funds and Accounts CFD No. 2013-1 Funds & Accounts Special Tax Fund Rebate Fund Surplus Fund Acquisition & Construction Fund Capitalized Interest Subaccount Interest Account Principal Account Rebate Account Alternative Penalty Account Cost of of Issuance Account Water Acquisition Account Prepayment Account Water Construction Account Reserve Account Fire Facilities Account Administrative Expense Account County Facilities Account K:\CLIENTS2\SMWD\admin\cfd20131.adm\13_14\Flow_funds_accs.ppt
Capistrano Unified School District Community Facilities District No. 2013-1 Series 2013 Funds and Accounts Flow of Funds Diagram Special Taxes Special Tax Fund First Priority Second Priority Third Priority Fourth Priority Fifth Priority Sixth Priority Seventh Priority Eighth Priority Administrative Expense Account Interest Account Principal Account Redemption Account Prepayment Account Reserve Account Rebate Fund Surplus Fund If necessary, moneys in Reserve Fund will be used to pay Interest and Principal Amount sufficient for for Administrative Expenses up up to to Administrative Expense Cap Cap Amount sufficient to to make interest installment due due at at next next payment date Amount sufficient to to make principal payment due due 9/1 9/1 Amount sufficient to to pay pay the the principal and and premium on on any any bonds called for for optional redemption Amount specified in in the the certificate of of special tax tax administrator in in connection with with the the delivery of of the the prepayment Amount necessary to to replenish the the account to to the the Reserve Requirement Ay Ay amount owed to to the the Department of of Treasury due due to to the the calculation of of Rebatable Arbitrage All All remaining funds K:\CLIENTS2\SMWD\admin\cfd20131.adm\13_14\Flow_funds_accs.ppt
III. FISCAL YEAR 2015-2016 SPECIAL TAX LEVY The special tax levy for CFD No. 2013-1 for fiscal year 2015-2016 equaled $3,390,106. As of July 28, 2016, $3,363,327 in special taxes had been collected by the County. The remaining $26,779 in special taxes are delinquent, resulting in a delinquency rate of.79 percent. The Water District has covenanted to commence foreclosure proceedings by the October 1 following the close of each fiscal year against (i) all parcels owned by a property owner with aggregate delinquent special taxes in excess of $5,000 and (ii) all properties with delinquent special taxes if the delinquency rate exceeds five percent. Notwithstanding the foregoing, the Water District may elect to defer foreclosure proceedings on any parcel of Developed Property which is owned by a delinquent property owner whose property is not, in the aggregate, delinquent in the payment of special taxes for a period of five years or more in an amount in excess of $10,000 and the amount in the Reserve Account is at least equal to the Reserve Requirement. Based on the current level of delinquencies, no foreclosure action is required. Santa Margarita Water District Page 15 Community Facilities District No. 2013-1 August 10, 2016
IV. FISCAL YEAR 2016-2017 SPECIAL TAX REQUIREMENT For fiscal year 2016-2017, the special tax requirement is equal to $3,450,936 and is calculated as follows: Table 18 Community Facilities District No. 2013-1 Fiscal Year 2016-2017 Special Tax Requirement SOURCES OF FUNDS AS OF JUNE 30, 2016 RESERVE FUND EXCESS SPECIAL TAX FUND INTEREST ACCOUNT PRINCIPAL ACCOUNT REMAINING APPORTIONMENT [1] REMAINING FISCAL YEAR 2015-2016 OBLIGATIONS INTEREST PAYMENT DUE SEPTEMBER 1, 2016 PRINCIPAL PAYMENT DUE SEPTEMBER 1, 2016 ADMINISTRATIVE EXPENSES (FROM FY 2015-2016 LEVY) ADMINISTRATIVE EXPENSES (FROM FY 2013-2014 & 2014-2015 LEVY) [3] RESERVE FUND INCREASE [4] $0 $0 $2,005,428 $0 $0 $1,564,434 $160,000 $60,000 $120,000 $77,505 $2,005,428 $1,981,939 SURPLUS / (DRAW ON RESERVE FUND) $23,489 FISCAL YEAR 2016-2017 OBLIGATIONS INTEREST PAYMENT DUE MARCH 1, 2017 INTEREST PAYMENT DUE SEPTEMBER 1, 2017 PRINCIPAL PAYMENT DUE SEPTEMBER 1, 2017 ADMINISTRATIVE EXPENSES COUNTY ENROLLMENT FEE DELINQUENCY CONTINGENCY [2] RESERVE FUND INCREASE [5] $1,562,034 $1,562,034 $230,000 $60,000 $10,448 $26,779 $49,988 $3,501,284 FISCAL YEAR 2016-2017 SPECIAL TAX REQUIREMENT $3,477,795 [1] All special taxes collected have been transferred to the Trustee. [2] Based on actual level of delinquencies for the FY 2015-16 tax year as of July 27, 2016. [3] Based on prior year admin amounts not yet transferred from the Special Tax Fund to the Administrative Expense Account. [4] Amount needed to fund the Reserve Requirement of $5,492,267, as of September 1, 2016. [5] Reserve Requirement increases from $5,492,267 on September 1, 2016 to $5,542,255 on September 1, 2017. The components of the fiscal year 2016-2017 special tax requirement are shown graphically on the following page. Santa Margarita Water District Page 16 Community Facilities District No. 2013-1 August 10, 2016
Community Facilities District No. 2013-1 of the Santa Margarita Water District Fiscal Year 2016-2017 Gross Special Tax Requirement Administrative Expenses, $60,000 9/2017 Principal, $230,000 County Enrollment Fee, $10,448 Delinquency Contingency, $26,779 Reserve Fund Increase, $49,988 3/2017 Interest, $1,562,034 9/2017 Interest, $1,562,034 Total Fiscal Year 2016-2017 Gross Special Tax Requirement: $3,501,284 Santa Margarita Water District Page 17 Community Facilities District No. 2013-1 August 10, 2016
V. METHOD OF APPORTIONMENT Maximum Special Taxes The amount of special taxes that CFD No. 2013-1 may levy is strictly limited by the maximum special taxes set forth in the Rate and Method of Apportionment. The initial maximum special taxes for each classification of Developed Property, or the "Assigned Special Taxes," are specified in Tables 1 through 14 of Section C of the Rate and Method of Apportionment. 1 On each July 1, the Assigned and Maximum Special Taxes shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous fiscal year. Apportionment of Special Taxes The special tax that is apportioned to each parcel is determined through the application of Section D of the Rate and Method of Apportionment. Section D apportions the special tax requirement in seven steps which prioritize the order in which Developed Property, Approved Property, and Undeveloped Property are taxed. The first step states that the special tax shall be levied against each parcel of Developed Property at up to 100 percent of the assigned special tax. If the special taxes raised pursuant to the first step are less than the special tax requirement, then the second step is applied. The second step states that the special tax shall be levied against all parcels of Approved Property at up to 80 percent of the applicable maximum special tax per acre. If the special taxes raised pursuant to the first two steps are less than the special tax requirement, then the third step is applied. The third step states that the special tax shall be levied against all parcels of Undeveloped Property at up to 80 percent of the applicable maximum special tax per acre. If the special taxes raised pursuant to the first three steps are less than the special tax requirement, then the fourth step is applied. The fourth step states that the special tax shall be levied against all parcels of Approved Property at up to 100 percent of the applicable maximum special tax per acre. If the special taxes raised pursuant to the first four steps are less than the special tax requirement, then the fifth step is applied. The fifth step states that the special tax shall be levied against all parcels of Undeveloped Property at up to 100 percent of the applicable maximum special tax per acre. The sixth and seventh steps are designed to accommodate changes in land use and are intended to be used only as a last resort. These steps are not necessary at this time. Application of the maximum special taxes under the first and second steps generate special tax revenues of $3,289,782 from Developed Property and $387,769 from Approved Property, which is more than necessary to meet the special tax requirement. There, the levy on Developed Property is equal to 100 percent of the maximum special tax and the levy on Approved Property is equal to approximately 38.79 percent of the maximum special tax. The fiscal year 2016-2017 special taxes are shown for each classification of Developed Property, Approved Property, and Undeveloped Property in the tables below. The Special Tax Roll which lists the total special tax levy for each parcel is shown in Exhibit D. 1 Technically, Section C states that the maximum special tax for a parcel of Developed Property is equal to the greater of (i) the "Backup Special Tax" or (ii) the rate set forth for the applicable Developed Property classification in Table 1 of Section C. The Backup Special Tax was established for the contingency of a shortfall in revenues resulting from significant changes in development densities. Since the actual density of development is consistent with original projections, the contingency for which the Backup Special Tax was established does not exist and hence, all discussion of maximum tax rates focuses on the rates set forth for each classification of Developed Property in Section C of the Rate and Method of Apportionment. Santa Margarita Water District Page 18 Community Facilities District No. 2013-1 August 10, 2016
TABLE 19 Zone P1 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 950 sq. ft. $1,554.67 per unit $0.00 per unit 0.00% Class 2 Residential Property 951 to 1,150 sq. ft. $1,584.38 per unit $1,584.38 per unit 100.00% Class 3 Residential Property 1,151 to 1,350 sq. ft. $2,008.87 per unit $0.00 per unit 0.00% Class 4 Residential Property > 1,350 sq. ft. $2,191.38 per unit $2,191.38 per unit 100.00% Class 5 Non-Residential Property NA $37,438.36 per Acre $0.00 per Acre 0.00% NA Approved Property NA $37,438.36 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $37,438.36 per Acre $0.00 per Acre 0.00% TABLE 20 Zone P2 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,300 sq. ft. $2,150.01 per unit $0.00 per unit 0.00% Class 2 Residential Property 1,301 to 1,475 sq. ft. $2,302.82 per unit $2,302.82 per unit 100.00% Class 3 Residential Property 1,476 to 1,550 sq. ft. $2,338.90 per unit $2,338.90 per unit 100.00% Class 4 Residential Property > 1,550 sq. ft. $2,385.60 per unit $2,385.60 per unit 100.00% Class 5 Non-Residential Property NA $38,059.16 per Acre $0.00 per Acre 0.00% NA Approved Property NA $38,059.16 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $38,059.16 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 19 Community Facilities District No. 2013-1 August 10, 2016
TABLE 21 Zone P3 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,500 sq. ft. $2,380.28 per unit $2,380.28 per unit 100.00% Class 2 Residential Property 1,501 to 1,675 sq. ft. $2,703.96 per unit $2,703.96 per unit 100.00% Class 3 Residential Property 1,676 to 1,750 sq. ft. $2,798.40 per unit $2,798.40 per unit 100.00% Class 4 Residential Property > 1,750 sq. ft. $2,880.12 per unit $2,880.12 per unit 100.00% Class 5 Non-Residential Property NA $40,522.23 per Acre $0.00 per Acre 0.00% NA Approved Property NA $40,522.23 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $40,522.23 per Acre $0.00 per Acre 0.00% TABLE 22 Zone P8 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,825 sq. ft. $2,957.58 per unit $2,957.58 per unit 100.00% Class 2 Residential Property 1,826 to 1,950 sq. ft. $3,010.64 per unit $3,010.64 per unit 100.00% Class 3 Residential Property > 1,950 sq. ft. $3,417.08 per unit $3,417.08 per unit 100.00% Class 4 Non-Residential Property NA $53,299.17 per Acre $0.00 per Acre 0.00% NA Approved Property NA $53,299.17 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $53,299.17 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 20 Community Facilities District No. 2013-1 August 10, 2016
TABLE 23 Zone P9 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 2,150 sq. ft. $3,611.28 per unit $3,611.28 per unit 100.00% Class 2 Residential Property 2,151 to 2,350 sq. ft. $3,870.22 per unit $3,870.22 per unit 100.00% Class 3 Residential Property > 2,350 sq. ft. $3,971.04 per unit $3,971.04 per unit 100.00% Class 4 Non-Residential Property NA $42,870.68 per Acre $0.00 per Acre 0.00% NA Approved Property NA $42,870.68 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $42,870.68 per Acre $0.00 per Acre 0.00% TABLE 24 Zone P10 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 2,350 sq. ft. $4,082.46 per unit $4,082.46 per unit 100.00% Class 2 Residential Property 2,351 to 2,500 sq. ft. $4,194.96 per unit $4,194.96 per unit 100.00% Class 3 Residential Property > 2,500 sq. ft. $4,500.58 per unit $4,500.58 per unit 100.00% Class 4 Non-Residential Property NA $40,510.55 per Acre $0.00 per Acre 0.00% NA Approved Property NA $40,510.55 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $40,510.55 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 21 Community Facilities District No. 2013-1 August 10, 2016
TABLE 25 Zone P11 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 2,700 sq. ft. $4,971.76 per unit $4,971.76 per unit 100.00% Class 2 Residential Property 2,701 to 2,900 sq. ft. $5,202.04 per unit $5,202.04 per unit 100.00% Class 3 Residential Property > 2,900 sq. ft. $5,449.30 per unit $5,449.30 per unit 100.00% Class 4 Non-Residential Property NA $36,977.79 per Acre $0.00 per Acre 0.00% NA Approved Property NA $36,977.79 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $36,977.79 per Acre $0.00 per Acre 0.00% TABLE 26 Zone AQ2 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,300 sq. ft. $1,784.94 per unit $1,784.94 per unit 100.00% Class 2 Residential Property 1,301 to 1,600 sq. ft. $2,049.18 per unit $2,049.18 per unit 100.00% Class 3 Residential Property 1,601 to 1,800 sq. ft. $2,163.80 per unit $2,163.80 per unit 100.00% Class 4 Residential Property > 1,800 sq. ft. $2,317.68 per unit $2,317.68 per unit 100.00% Class 5 Non-Residential Property NA $18,022.50 per Acre $0.00 per Acre 0.00% NA Approved Property NA $18,022.50 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $18,022.50 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 22 Community Facilities District No. 2013-1 August 10, 2016
TABLE 27 Zone AQ3 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,650 sq. ft. $2,298.58 per unit $2,298.58 per unit 100.00% Class 2 Residential Property 1,651 to 1,750 sq. ft. $2,442.90 per unit $2,442.90 per unit 100.00% Class 3 Residential Property 1,751 to 1,850 sq. ft. $2,495.96 per unit $2,495.96 per unit 100.00% Class 4 Residential Property 1,851 to 1,950 sq. ft. $2,629.66 per unit $2,629.66 per unit 100.00% Class 5 Residential Property > 1,950 sq. ft. $2,821.74 per unit $2,821.74 per unit 100.00% Class 6 Non-Residential Property NA $27,766.51 per Acre $0.00 per Acre 0.00% NA Approved Property NA $27,766.51 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $27,766.51 per Acre $0.00 per Acre 0.00% TABLE 28 Zone AQ4 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 1,800 sq. ft. $2,827.06 per unit $2,827.06 per unit 100.00% Class 2 Residential Property 1,801 to 2,000 sq. ft. $3,081.74 per unit $3,081.74 per unit 100.00% Class 3 Residential Property > 2,000 sq. ft. $3,264.28 per unit $3,264.28 per unit 100.00% Class 4 Non-Residential Property NA $24,835.45 per Acre $0.00 per Acre 0.00% NA Approved Property NA $24,835.45 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $24,835.45 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 23 Community Facilities District No. 2013-1 August 10, 2016
TABLE 29 Zone AQ5 Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum Class 1 Residential Property < 2,050 sq. ft. $3,460.60 per unit $3,460.60 per unit 100.00% Class 2 Residential Property 2,051 to 2,150 sq. ft. $3,648.43 per unit $0.00 per unit 0.00% Class 3 Residential Property 2,151 to 2,250 sq. ft. $3,686.64 per unit $3,686.64 per unit 100.00% Class 4 Residential Property 2,251 to 2,300 sq. ft. $3,903.12 per unit $0.00 per unit 0.00% Class 5 Residential Property 2,301 to 2,400 sq. ft. $3,960.42 per unit $3,960.42 per unit 100.00% Class 6 Residential Property > 2,400 sq. ft. $4,210.87 per unit $0.00 per unit 0.00% Class 7 Non-Residential Property NA $25,605.89 per Acre $0.00 per Acre 0.00% NA Approved Property NA $25,605.89 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $25,605.89 per Acre $0.00 per Acre 0.00% TABLE 30 Zone A Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum NA Residential Property NA $1,393.36 per unit $1,393.36 per unit 100.00% NA Non-Residential Property NA $35,253.33 per Acre $0.00 per Acre 0.00% NA Approved Property NA $35,253.33 per Acre $0.00 per Acre 0.00% NA Undeveloped Property NA $35,253.33 per Acre $0.00 per Acre 0.00% Santa Margarita Water District Page 24 Community Facilities District No. 2013-1 August 10, 2016
TABLE 31 Zone R Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum NA Residential Property NA $1,393.37 per unit $0.00 per unit 0.00% NA Non-Residential Property NA $31,576.24 per Acre $0.00 per Acre 0.00% NA Approved Property NA $31,576.24 per Acre $12,248.34 per Acre 38.79% NA Undeveloped Property NA $33,238.10 per Acre $0.00 per Acre 0.00% TABLE 32 Zone O Fiscal Year 2016-2017 Special Taxes For Developed Property, Approved Property, and Undeveloped Property Special Tax Class Description Residential Floor Area Maximum Special Tax Actual Special Tax Percent of Maximum NA Residential Property NA $1,393.37 per unit $0.00 per unit 0.00% NA Non-Residential Property NA $23,825.18 per Acre $0.00 per Acre 0.00% NA Approved Property NA $23,825.18 per Acre $9,241.79 per Acre 38.79% NA Undeveloped Property NA $25,078.47 per Acre $0.00 per Acre 0.00% taussig-client/smwd/admin/cfd991.adm/16-17/20131_adm 01.doc Santa Margarita Water District Page 25 Community Facilities District No. 2013-1 August 10, 2016
EXHIBIT A CFD No. 2013-1 of the Santa Margarita Water District Boundary Map and Zone Map
EXHIBIT B CFD No. 2013-1 of the Santa Margarita Water District Summary of Transactions to Fund and Accounts Fiscal Year 2015-2016
COMMUNITY FACILITIES DISTRICT NO. 2013-1 OF SANTA MARGARITA WATER DISTRICT SERIES 2013 SPECIAL TAX BONDS FISCAL YEAR 2015-2016 SPECIAL ADMIN COST OF WATER WATER FIRE COUNTY ACQUISITION TAX INTEREST PRINCIPAL PREPAY RESERVE EXPENSE SURPLUS REDEMPTION ISSUANCE ACQUISITION CONSTRUCTION FACILITIES FACILITIES CONSTRUCTION FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND TOTAL BEGINNING BALANCE $0 $1,705,883 $0 $0 $5,375,738 $0 $0 $0 $0 $2,701,118 $6,410,799 $2,047,676 $3,603,399 $0 $21,844,612 SOURCES OF FUNDS BOND PROCEEDS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SPECIAL TAX RECEIPTS $0 $3,521,859 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,521,859 INVESTMENT AGREEMENT EARNINGS $0 $0 $0 $0 $38,960 $0 $0 $0 $0 $5,710 ($4,686) ($9,428) ($21,006) $0 $9,551 OTHER INVESTMENT EARNINGS $0 $2,958 $0 $0 $63 $0 $0 $0 $0 $1,347 $11,195 $104 $6,516 $0 $22,184 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $948,161 $0 $0 $0 $948,161 TOTAL SOURCES $0 $3,524,816 $0 $0 $39,024 $0 $0 $0 $0 $7,058 $954,671 ($9,324) ($14,490) $0 $4,501,755 USES OF FUNDS INTEREST PAYMENTS $0 ($3,130,294) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($3,130,294) PRINCIPAL PAYMENTS $0 $0 ($95,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($95,000) PUBLIC FACILITIES $0 $0 $0 $0 $0 $0 $0 $0 $0 ($2,181,776) ($2,205,714) ($2,038,329) ($510,305) $0 ($6,936,125) PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL USES $0 ($3,130,294) ($95,000) $0 $0 $0 $0 $0 $0 ($2,181,776) ($2,205,714) ($2,038,329) ($510,305) $0 ($10,161,419) TRANSFERS $0 ($94,978) $95,000 $0 $0 $0 $0 $0 $0 $0 $0 ($22) $0 $0 $0 ENDING BALANCE $0 $2,005,428 $0 $0 $5,414,762 $0 $0 $0 $0 $526,399 $5,159,756 $0 $3,078,604 $0 $16,184,949 Initial Reserve Requirement: $5,348,770.52 (Based on Series 2013 OS) Reserve Requirement as of 9/1/2015: $5,442,938.90 Reserve Requirement as of 9/1/2016: $5,492,266.79, and will increase in the future until 9/1/2019. Confirmed with Sabbir Hossain at BNY 3/23/16. PRINTED: 08/10/16 13:14 PAGE:1
COMMUNITY FACILITIES DISTRICT NO. 2013-1 OF SANTA MARGARITA WATER DISTRICT SERIES 2013 SPECIAL TAX BONDS July 2015 SPECIAL ADMIN COST OF WATER WATER FIRE COUNTY ACQUISITION TAX INTEREST PRINCIPAL PREPAY RESERVE EXPENSE SURPLUS REDEMPTION ISSUANCE ACQUISITION CONSTRUCTION FACILITIES FACILITIES CONSTRUCTION FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND TOTAL BEGINNING BALANCE $0 $1,705,883 $0 $0 $5,375,738 $0 $0 $0 $0 $2,701,118 $6,410,799 $2,047,676 $3,603,399 $0 $21,844,612 SOURCES OF FUNDS BOND PROCEEDS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SPECIAL TAX RECEIPTS $0 $71 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $71 INVESTMENT AGREEMENT EARNINGS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($7,101) ($5,233) ($13,039) $0 ($25,373) OTHER INVESTMENT EARNINGS $0 $121 $0 $0 $1 $0 $0 $0 $0 $8 $23 $19 $33 $0 $205 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $948,161 $0 $0 $0 $948,161 TOTAL SOURCES $0 $193 $0 $0 $1 $0 $0 $0 $0 $8 $941,083 ($5,214) ($13,007) $0 $923,064 USES OF FUNDS INTEREST PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PRINCIPAL PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PUBLIC FACILITIES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($975,000) $0 $0 ($975,000) PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL USES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($975,000) $0 $0 ($975,000) TRANSFERS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ENDING BALANCE $0 $1,706,076 $0 $0 $5,375,739 $0 $0 $0 $0 $2,701,125 $7,351,882 $1,067,462 $3,590,392 $0 $21,792,676 Initial Reserve Requirement: $5,348,770.52 (Based on Series 2013 OS) Reserve Requirement as of 9/1/2015: $5,442,938.90 Reserve Requirement as of 9/1/2016: $5,492,266.79, and will increase in the future until 9/1/2019. Confirmed with Sabbir Hossain at BNY 3/23/16. PRINTED: 08/10/16 13:15 PAGE:1
COMMUNITY FACILITIES DISTRICT NO. 2013-1 OF SANTA MARGARITA WATER DISTRICT SERIES 2013 SPECIAL TAX BONDS August 2015 SPECIAL ADMIN COST OF WATER WATER FIRE COUNTY ACQUISITION TAX INTEREST PRINCIPAL PREPAY RESERVE EXPENSE SURPLUS REDEMPTION ISSUANCE ACQUISITION CONSTRUCTION FACILITIES FACILITIES CONSTRUCTION FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND TOTAL BEGINNING BALANCE $0 $1,706,076 $0 $0 $5,375,739 $0 $0 $0 $0 $2,701,125 $7,351,882 $1,067,462 $3,590,392 $0 $21,792,676 SOURCES OF FUNDS BOND PROCEEDS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SPECIAL TAX RECEIPTS $0 $159,750 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $159,750 INVESTMENT AGREEMENT EARNINGS $0 $0 $0 $0 $43,153 $0 $0 $0 $0 $0 $0 ($4,196) $0 $0 $38,957 OTHER INVESTMENT EARNINGS $0 $138 $0 $0 $1 $0 $0 $0 $0 $9 $81 $63 $44 $0 $335 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL SOURCES $0 $159,888 $0 $0 $43,154 $0 $0 $0 $0 $9 $81 ($4,133) $44 $0 $199,043 USES OF FUNDS INTEREST PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PRINCIPAL PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PUBLIC FACILITIES $0 $0 $0 $0 $0 $0 $0 $0 $0 ($100,000) $0 ($350,000) $0 $0 ($450,000) PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL USES $0 $0 $0 $0 $0 $0 $0 $0 $0 ($100,000) $0 ($350,000) $0 $0 ($450,000) TRANSFERS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ENDING BALANCE $0 $1,865,963 $0 $0 $5,418,893 $0 $0 $0 $0 $2,601,134 $7,351,963 $713,329 $3,590,437 $0 $21,541,719 Initial Reserve Requirement: $5,348,770.52 (Based on Series 2013 OS) Reserve Requirement as of 9/1/2015: $5,442,938.90 Reserve Requirement as of 9/1/2016: $5,492,266.79, and will increase in the future until 9/1/2019. Confirmed with Sabbir Hossain at BNY 3/23/16. PRINTED: 08/10/16 13:15 PAGE:2
COMMUNITY FACILITIES DISTRICT NO. 2013-1 OF SANTA MARGARITA WATER DISTRICT SERIES 2013 SPECIAL TAX BONDS September 2015 SPECIAL ADMIN COST OF WATER WATER FIRE COUNTY ACQUISITION TAX INTEREST PRINCIPAL PREPAY RESERVE EXPENSE SURPLUS REDEMPTION ISSUANCE ACQUISITION CONSTRUCTION FACILITIES FACILITIES CONSTRUCTION FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND TOTAL BEGINNING BALANCE $0 $1,865,963 $0 $0 $5,418,893 $0 $0 $0 $0 $2,601,134 $7,351,963 $713,329 $3,590,437 $0 $21,541,719 SOURCES OF FUNDS BOND PROCEEDS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SPECIAL TAX RECEIPTS $0 $25,929 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25,929 INVESTMENT AGREEMENT EARNINGS $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,710 $16,670 $0 $0 $0 $22,380 OTHER INVESTMENT EARNINGS $0 $139 $0 $0 $1 $0 $0 $0 $0 $3 $133 $8 $99 $0 $384 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL SOURCES $0 $26,068 $0 $0 $1 $0 $0 $0 $0 $5,713 $16,802 $8 $99 $0 $48,692 USES OF FUNDS INTEREST PAYMENTS $0 ($1,565,859) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($1,565,859) PRINCIPAL PAYMENTS $0 $0 ($95,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($95,000) PUBLIC FACILITIES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($713,329) $0 $0 ($713,329) PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL USES $0 ($1,565,859) ($95,000) $0 $0 $0 $0 $0 $0 $0 $0 ($713,329) $0 $0 ($2,374,188) TRANSFERS $0 ($95,000) $95,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ENDING BALANCE $0 $231,172 $0 $0 $5,418,894 $0 $0 $0 $0 $2,606,847 $7,368,766 $8 $3,590,536 $0 $19,216,223 Initial Reserve Requirement: $5,348,770.52 (Based on Series 2013 OS) Reserve Requirement as of 9/1/2015: $5,442,938.90 Reserve Requirement as of 9/1/2016: $5,492,266.79, and will increase in the future until 9/1/2019. Confirmed with Sabbir Hossain at BNY 3/23/16. PRINTED: 08/10/16 13:15 PAGE:3
COMMUNITY FACILITIES DISTRICT NO. 2013-1 OF SANTA MARGARITA WATER DISTRICT SERIES 2013 SPECIAL TAX BONDS October 2015 SPECIAL ADMIN COST OF WATER WATER FIRE COUNTY ACQUISITION TAX INTEREST PRINCIPAL PREPAY RESERVE EXPENSE SURPLUS REDEMPTION ISSUANCE ACQUISITION CONSTRUCTION FACILITIES FACILITIES CONSTRUCTION FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND FUND ACCOUNT ACCOUNT ACCOUNT ACCOUNT ACCOUNT FUND TOTAL BEGINNING BALANCE $0 $231,172 $0 $0 $5,418,894 $0 $0 $0 $0 $2,606,847 $7,368,766 $8 $3,590,536 $0 $19,216,223 SOURCES OF FUNDS BOND PROCEEDS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 SPECIAL TAX RECEIPTS $0 $16,173 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,173 INVESTMENT AGREEMENT EARNINGS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($6,016) $0 ($8,562) $0 ($14,578) OTHER INVESTMENT EARNINGS $0 $19 $0 $0 $5 $0 $0 $0 $0 $134 $259 $15 $107 $0 $538 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL SOURCES $0 $16,191 $0 $0 $5 $0 $0 $0 $0 $134 ($5,757) $15 ($8,455) $0 $2,133 USES OF FUNDS INTEREST PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PRINCIPAL PAYMENTS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 PUBLIC FACILITIES $0 $0 $0 $0 $0 $0 $0 $0 $0 ($2,079,743) ($66,994) $0 ($457,406) $0 ($2,604,142) PROFESSIONAL SERVICES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 MISCELLANEOUS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL USES $0 $0 $0 $0 $0 $0 $0 $0 $0 ($2,079,743) ($66,994) $0 ($457,406) $0 ($2,604,142) TRANSFERS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ENDING BALANCE $0 $247,363 $0 $0 $5,418,899 $0 $0 $0 $0 $527,238 $7,296,015 $22 $3,124,675 $0 $16,614,213 Initial Reserve Requirement: $5,348,770.52 (Based on Series 2013 OS) Reserve Requirement as of 9/1/2015: $5,442,938.90 Reserve Requirement as of 9/1/2016: $5,492,266.79, and will increase in the future until 9/1/2019. Confirmed with Sabbir Hossain at BNY 3/23/16. PRINTED: 08/10/16 13:15 PAGE:4