DENAIR UNIFIED SCHOOL DISTRICT ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE, 30, 2014 Dated January 26, 2015 Prepared at the direction of and on behalf of: Denair Unified School District 3460 Lester Road Denair, CA 95316 Prepared by: Capitol Public Finance Group 2436 Professional Drive, Suite 300 Roseville, CA 95661
$5,161,002 General Obligation Bonds, Election of 2001, Series A 2020 248217CG4 2021 248217CH2 2022 248217CJ8 2023 248217CK5 2024 248217CL3 2025 248217CM1 2026 248217CN9 $3,037,067.05 General Obligation Bonds, Election of 2001, Series B 2015 248217CZ2 2016 248217DA6 2017 248217DB4 2017 248217DC2 2018 248217DD0 2019 248217DE8 2020 248217DF5 2021 248217DG3 2022 248217DH1 2023 248217DJ7 2024 248217DK4 2025 248217DL2 2026 248217DM0 2027 248217DN8 2028 248217DP3 $7,500,000 General Obligation Bonds, Election of 2007, Series 2008 2015 248217DT5 2016 248217DQ1 2017 248217DR9 2018 248217DS7 2023 248217DU2 2028 248217DV0 2032 248217DW8
$3,455,003 General Obligation Bonds, Election of 2007, Series 2011 2016 248217DY4 2019 248217DZ1 2020 248217EA5 2021 248217EB3 2026 248217ED9 2032 248217EE7 2033 248217EF4 2034 248217EG2 2036 248217EH0 2041 248217ED9 2041 248217EJ6 2043 248217EK3 $3,825,000 2012 General Obligation Refunding Bonds 2015 248217ER8 2016 248217ES6 2017 248217ET4 2018 248217EU1 2019 248217EV9 2020 248217EW7 2021 248217EX5 2022 248217EY3 $3,930,000 2004 Certificates of Participation 2015 248218AK5 2016 248218AL3 2017 248218AM1 2018 248218AN9 2019 248218AP4 2020 248218AQ2 2021 248218AR0 2022 248218AS8 2023 248218AT6 2024 248218AU3
1. Financial Statements of the District Audited Financial Statements of the District as of June 30, 2014 (Audit) were filed with EMMA on January 23, 2015 and the 2014-15 Adopted Budget (Budget) was filed with EMMA on December 23, 2014. 2. District Debt Certificates of Participation (COPs) During August 2004, the District issued $3,930,000 in COPs for the purpose of financing Phase II of the construction and acquisition of a Library/Science/Business Building located at the Denair High School. The District is required to make lease payments of principal and interest in conjunction with these COPs. Interest is due and payable semi-annually on February 1 and August 1, commencing on February 1, 2005. The outstanding principal balance at June 30, 2014, was $2,620,000. General Obligation Bonds The District received authorization at an election held on November 6, 2001, by at least 55% of the votes cast by eligible voters within the District (the 2001 Authorization ) to issue not to exceed $8,200,000 of General Obligation Bonds. The election was conducted pursuant to California State Proposition 39 of November 2000. In 2002, the District, the first series of bonds under the 2001 Authorization, the $5,161,002 Denair Unified School District General Obligation Bonds, Election of 2001, Series A (the Series A Bonds ). In 2003, the District issued the $3,037,067.05 Denair Unified School District General Obligation Bonds, Election of 2001, Series B (the Series B Bonds ). The District also received authorization at an election held on November 6, 2007, by at least 55% of the votes cast by eligible voters within the District (the 2007 Authorization ) to issue not to exceed $13,000,000 of General Obligation Bonds. The election was conducted pursuant to California State Proposition 39 of November 2000. In 2008, the District, the first series of bonds under the 2007 Authorization, the $7,500,000 Denair Unified School District General Obligation Bonds, Election of 2007, Series 2008 (the Series 2008 Bonds ). In 2011, the District issued the $3,455,003 Denair Unified School District General Obligation Bonds, Election of 2007, Series 2011 (the Series 2011 Bonds ). On February 12, 2012 the District issued the $3,825,000 Denair Unified School District 2012 General Obligation Refunding Bonds (the Refunding Bonds ). The Refunding Bonds were issued refund a portion of the Series A Bonds. Series Name Year of Issue Initial Principal Outstanding Principal as of 06/30/14 Series A 2003 $ 5,161,002 $ 1,714,491 Series B 2004 3,037,067 5,486,331 Series 2008 2008 7,500,000 7,350,000 Series 2011 2011 3,455,003 3,940,075 Refunding 2012 3,825,000 3,695,000 TOTAL $22,978,072 $22,185,897 3. District Average Daily Attendance for the Preceding and Current Fiscal Year See Audit and Budget filed with EMMA.
4. Assessed Valuation Assessed Valuation Fiscal Year 2009-10 through Fiscal Year 2014-15 Secured Utility Unsecured Total 2009-10 $773,149,485 $401,614 $23,314,962 $796,866,061 2010-11 763,914,910 401,652 22,429,222 786,745,784 2011-12 763,482,867 418,022 21,771,370 785,672,259 2012-13 760,719,904 488,176 30,019,796 791,227,876 2013-14 797,347,656 486,621 28,159,685 825,993,962 2014-15 910,500,200 481,546 29,886,674 940,386,874 Source: Stanislaus County Auditor-Controller 5. Tax Levies, Collections and Delinquencies Stanislaus County (the County ) has implemented an alternative method for the distribution of secured property taxes to local agencies, known as the Teeter Plan. The Teeter Plan provisions are now set forth in Sections 4701 to 4717 of the California Revenue and Taxation Code. Upon adoption and implementation of this method by a county board of supervisors, local agencies for which the county acts as bank and certain other public agencies and taxing areas located in the county receive annually the full amount of their share of property taxes on the secured roll, including delinquent property taxes which have yet to be collected. While a county benefits from the penalties associated with these delinquent taxes when they are paid, the Teeter Plan provides participating local agencies with stable cash flow and the elimination of collection risk. To implement a Teeter Plan, the board of supervisors of a county generally must elect to do so by July 15 of the fiscal year in which it is to apply. As a separate election, a county may elect to have the Teeter Plan procedures also apply to assessments on the secured roll. The County's Teeter Plan applies to the District and to the Bonds. The ad valorem property tax to be levied to pay the accreted value and maturity value on the District outstanding general obligation bonds will be subject to the Teeter Plan. The District will receive 100% of the ad valorem property tax levied to pay the Bonds irrespective of actual delinquencies in the collection of the tax by the County. Once adopted, a county's Teeter Plan will remain in effect in perpetuity unless the board of supervisors orders its discontinuance or unless prior to the commencement of a fiscal year a petition for discontinuance is received and joined in by resolutions of the governing bodies of not less than two-thirds of the participating districts in the county. A county may, however, elect to discontinue the Teeter Plan with respect to any levying agency in the county if the board of supervisors takes action not later than July 15 of a fiscal year, and if the rate of secured tax delinquencies in such agency in any year exceeds 3% of the total of all taxes and assessments levied on the secured roll by that agency. The County has never discontinued the Teeter Plan with respect to any levying agency. Upon making a Teeter Plan election, a county must initially provide a participating local agency with 95% of the estimated amount of the then-accumulated tax delinquencies (excluding penalties) for that agency. In the case of the initial year distribution of assessments (if a county has elected to include assessments), 100% of the assessment delinquencies (excluding penalties) are to be apportioned to the participating local agency which levied the assessment. After the initial distribution, each participating local agency receives annually 100% of the secured property tax levies to which it is otherwise entitled, regardless of whether the county has actually collected the levies. If any tax or assessment which was distributed to a Teeter Plan participant is subsequently changed by correction, cancellation or refund, a pro rata adjustment for the amount of the change is made on the records of the County Treasurer and auditor of the county. Such adjustment for a decrease in the tax or assessment is treated by the County as an interest-free offset against future advances of tax levies under the Teeter Plan. The County has the right under certain circumstances to terminate the Teeter Plan or remove the District from the Teeter Plan. The County has not notified the District of any intention to terminate the Teeter Plan or to exclude the District from the plan.
6. Top Secured Taxpayers Largest 2014 15 Local Secured Taxpayers 2014 15 % of Property Owner Primary Land Use Assessed Valuation Total (1) 1. Fresno Farming LLC Agricultural $ 25,124,876 2.75% 2. Valley Fresh Foods Inc. Agricultural 21,307,276 2.33 3. Foster Dairy Farms Agricultural 12,753,189 1.40 4. California Royale LLC Agricultural 9,880,716 1.08 5. Wendell J. Naraghi Agricultural 9,678,092 1.06 6. Arnold (CA) LLC Agricultural 7,042,616 0.77 7. Caloy Company LLC Agricultural 6,975,710 0.76 8. Montpelier Orchards Agricultural 6,905,241 0.76 9. Roy A. and Doris J. Johnson Agricultural 6,614,567 0.72 10. Jeanette Veldhuis Agricultural 6,089,953 0.67 11. Lakespring Farms Corp. Agricultural 5,927,285 0.65 12. Jose L. and Barbara O. Garcia Agricultural 5,568,535 0.61 13. Earl Haringa Agricultural 5,228,021 0.57 14. Ahlem Foothill Farms Agricultural 5,163,265 0.57 15. Daniel Properties LP Agricultural 4,960,092 0.54 16. Margaret Naraghi Quattrin Agricultural 4,803,766 0.53 17. Protein Enterprises Agricultural 4,732,520 0.52 18. Ahlem Farms Partnership Agricultural 4,452,800 0.49 19. Texas Municipal Plans Consortium LLC Agricultural 3,897,153 0.43 20. FJ Venture Partnership Agricultural 3,608,322 0.39 $160,713,995 17.59% 7. Pension Plan Contribution for the Preceding and Current Fiscal Year See Audit and Budget filed with EMMA. 8. Summary of General Fund Revenues, Expenditures and Changes in Fund and Revenue Limit per ADA See Audit and Budget filed with EMMA.