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C
ity of Merced
Community Facilities District No. 2003-1
(Bellevue Ranch East)
$8,985,000 2016 Special Tax Refunding Bonds
Continuing Disclosure Annual Report for
Fiscal Year 2021-22
(per SEC Rule 15c2-12(b)(5))
CUSIP Numbers
$390,000 587626CM2* $485,000 587626CY6
$395,000 587626CN0* $495,000 587626CZ3
$405,000 587626CP5* $510,000 587626DA7
$415,000 587626CQ3* $525,000 587626DB5
$1,290,000 587626CT7** $535,000 587626DC3
$445,000 587626CU4 $550,000 587626DD1
$455,000 587626CV2 $565,000 587626DE9
$465,000 587626CW0 $585,000 587626DF6
$475,000 587626CX8
* R
etired as of the date of this report
** T
his series is partially retired ($420,000 & $430,000)
J
anuary 19, 2023
City of Merced Community Facilities District No. 2003-1 (Bellevue Ranch East) Continuing Disclosure Annual Report Page 1
Continuing Disclosure Annual Report
for
City of Merced
Community Facilities District No. 2003-1
(Bellevue Ranch East)
$8,985,000 2016 Special Tax Refunding Bonds
Fiscal Year 2021-22
This Continuing Disclosure Annual Report (“Annual R eport”) contains certain information required to be filed annually per SEC rule 15c2- 12(b)(5) (the “Rule”) by the City of M erced (the “City”) Community Facilities District No. 2003-1 (Bellevue Ranch East) (the “CFD”). The Rule is applicable to the 2016 Special Tax Refunding Bonds (the “Series 20 16 Bonds”) issued in the aggregate principal amount of $8,985,000 by the CFD on August 30, 2016. The Rule requires that an issuer undertake in a written agreement or contract, for the benefit of holders of the securities issued, to file with national and state repositories the following:
i. Certain financial information as presented in the Continui ng Disclosure Agreement
ii. Audited financial statements of the City
iii. Notice of certain enumerated significant events
iv. Notice of any failure to provide such annual financial information as agreed
In compliance with the Rule, the City signed the Continuing Di sclosure Agreement on August 30, 2016, requiring the City to provide annually, or as they occur, the aforementioned enumerated documents or events. Per the Continuing Disclosure Agreement, the City is required to file an annual report with all national and State of California repositories which includes:
a) The balance in the Reserve Fund held under the Fiscal Agent Agreement.
→ As of November 30, 2022, the balance in the Reserve Fund was $ 607,714.
The Reserve Fund Requirement is $ 604,463; therefor e, pursuant to the Series 2016 Bonds covenants, the Reserve Fund is fully funded.
b) The pri ncipal amount of the Series 20 16 Bonds outstanding and a current debt service schedule.
→ As of the date of this report, $6,53 0,000 of the Series 20 16 Bonds remains outstanding.
→ See Appendix A for a current debt service schedule.
c) The amount of prepayments of the special tax, if any.
→ As of the date of this report, there have been no prepayments of the special tax obligation.
City of Merced Community Facilities District No. 2003-1 (Bellevue Ranch East) Continuing Disclosure Annual Report Page 2
d) The total assessed value of all parcels cu rrently subject to the special tax within the CFD, showing the total assessed valuation for all land and the total assessed valuation for all improvements within the CFD and distinguishing between the assessed value of developed property and undeveloped property.
Total Assessed Value of all Land $63,212,243
Total Assessed Value of all Improvements $252,237,741
Total Assessed Value of Other Property $2,000
Total Assessed Value of all Parcels $315,451,984
Assessed Value of Developed Property $315,451,984
Assessed Value of Undeveloped Property* $0
Total Assessed Value of all Parcels $315,451,984
* Includes 3 parcels owned by the Regents of the University of California, which were not assigned an assessed value for FY 2022-23.
e) Identification of each parcel withi n t he CFD for which any special tax payment is delinquent, together with the following information respecting ea ch such parcel: (A) the amount delinquent; (B) the date of each deli nquency; (C) in the event a foreclosure complaint has been filed respecting such delinquent parcel and such complaint has not yet been dismissed, the date on which the complaint was filed ; and (D) in the event a foreclosure sale has occurred r especting such delinquent parcel, a summary of the results of such foreclosure sale.
→ See Appendix B.
f) A land ownership summary listing property owners responsible for more than ten percent (10%) of the annual s pecial tax levy, as shown on the Merced County Assessor’s last equalized tax roll prior to the September next preceding the Annual Report date.
→ No property owner is responsible for more than 10% of the fiscal year 2022-23 special tax levy.
g) Changes, if any to the rate and method of apportionment.
→ No changes.
City of Merced Community Facilities District No. 2003-1 (Bellevue Ranch East) Continuing Disclosure Annual Report Page 3
h) The amount of special taxes generated by the developed parcels and undeveloped parcels within the CFD.
Percentage of
Property Number of FY 2022-23 Total Special
Classification Parcels Special Tax Levy Tax Levy
Developed 1,015 $620,354 100.00%
Undeveloped 3 $0 0.00%
i) The audited financial statements of the City for the preceding fiscal year (or if not available at the time of filing, the unaudited financial statements ). The audited financial statements shall be prepared in accordance with generally accepted accounting prin ciples as prescribed for governmental units by the Governmental Accounting Standards Board; provided, however, that the City may from ti me to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared and provided.
→ See Appendix C.
j) Senate Bill 165 Reporting Requirements. On September 18, 2000, former Governor Gray Davis signed Senate Bill 165 which enacted the Local Agency Special Tax and Bond Accountability Act. In approving the bill, the Legislature declared t hat local agencies need to demonstrate to voters that special taxes and bond proceeds are being spent on the fa cilities and services for which they were intended. To further this objective, the Legislature added Sections 50075.3 and 53411 to the Californi a Government Code setting forth annual reporting requirements relative to special taxes collected and bonds issued by a public agency. The amount of special taxes collected and expended for the fiscal year 2021-22 special tax levy is set forth in the tabl e on t he following page.
City of Merced Community Facilities District No. 2003-1 (Bellevue Ranch East) Continuing Disclosure Annual Report Page 4
Fiscal Year 2021-22 Revenues
Interest $936
Assessments $618,556
Total Revenues Collected $619,492
Fiscal Year 2021-22 Expenditures
Bond Interest $176,913
Bond Principal $420,000
Fiscal Agent Fees $3,080
Professional Services $8,362
Support Services $23
Administrative Services $1,740
Direct Service Charges $1,712
Total Expenditures $611,830
Beginning Fund Balance* $1,201,825
Ending Fund Balance* $1,209,487
Net Change in Fund Balance $7,662
* Includes Reserve Requirement.
Note: This is unaudited financial information.
k) Reporting of Significant Events . Pursuan t to the provisions of the Continuing Disclosure Agreement, the CFD shall give, or cause to be given, notice of the occurrence of any of the following events:
1. Principal and interest payment delinquencies.
2. Non-payment related defaults, if material.
3. Modifications to rights of Bond Owners, if material.
4. Bond calls, if material, and tender offers.
5. Defeasances
6. Rating changes.
7. Adverse tax o pinions or events adversely affecting the tax -exempt status of the bonds.
8. Unscheduled draws on debt service reserves reflecting financial difficulties.
9. Unscheduled draws on credit enhancements reflecting financial difficulties.
10. Substitution of credit or liquidity providers, or their failure to perform.
11. Release, substitution, or sale of property securing repayment of the B onds, if material.
12. Bankruptcy, insolvency, receivership, or similar proceedings of the City.
City of Merced Community Facilities District No. 2003-1 (Bellevue Ranch East) Continuing Disclosure Annual Report Page 5
13. Appointment of a successor or additional fiscal agent or the c hange of name of a fiscal agent, if material.
14. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City oth er than in the ordinary course of business.
→ On A ugust 11, 2021 the CFD provided notice that MU FG Union Bank, N.A. ha d sold its de bt servicing and securities custody client p ortfolio to U.S. Bank National Association. The effective date of the transfer was August 2, 2021.
→ On February 10, 2022 the CFD provided notice that U.S. Bank National Association had transferred substantially all of its corporate trust bu siness to its affiliate, U.S.
Bank Trust C ompany, National Association . The effective date of the tra nsfer was January 29, 2022.
→ On A pril 29, 2022 the CFD provided notice that U.S. Bank Trust Company, National Association had been appointed as the successor trustee/fiscal agent. The effective date of the transfer was April 18, 2022.
APPENDIX A
Debt Service Schedule
Total
Principal Interest Debt Service
March $107,198.51
September 2017 $390,000.00 $106,606.25 $603,804.76
March $102,706.25
September 2018 $395,000.00 $102,706.25 $600,412.50
March $98,756.25
September 2019 $405,000.00 $98,756.25 $602,512.50
March $94,706.25
September 2020 $415,000.00 $94,706.25 $604,412.50
March $90,556.25
September 2021 $420,000.00 $90,556.25 $601,112.50
March $86,356.25
September 2022 $430,000.00 $86,356.25 $602,712.50
March $82,056.25
September 2023 $440,000.00 $82,056.25 $604,112.50
March $77,656.25
September 2024 $445,000.00 $77,656.25 $600,312.50
March $73,206.25
September 2025 $455,000.00 $73,206.25 $601,412.50
March $68,656.25
September 2026 $465,000.00 $68,656.25 $602,312.50
March $63,715.63
September 2027 $475,000.00 $63,715.63 $602,431.26
March $58,371.88
September 2028 $485,000.00 $58,371.88 $601,743.76
March $52,612.50
September 2029 $495,000.00 $52,612.50 $600,225.00
March $46,425.00
September 2030 $510,000.00 $46,425.00 $602,850.00
March $39,731.25
September 2031 $525,000.00 $39,731.25 $604,462.50
March $32,512.50
September 2032 $535,000.00 $32,512.50 $600,025.00
March $25,156.25
September 2033 $550,000.00 $25,156.25 $600,312.50
March $17,250.00
September 2034 $565,000.00 $17,250.00 $599,500.00
March $8,775.00
September 2035 $585,000.00 $8,775.00 $602,550.00
$8,985,000.00 $2,452,217.28 $11,437,217.28
Goodwin Consulting Group, Inc.
City of Merced CFD No. 2003-1
(Bellevue Ranch East)
2016 Special Tax Refunding Bonds
Interest
Payment Date
APPENDIX B
Special Tax Delinquencies
as of July 28, 2022
Date of Status of Date
Amount Earliest Foreclosure Foreclosure
Delinquent Delinquency Proceedings Action Taken Complaint Filed 224-041-014-000 $264.95 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 224-054-006-000 $557.32 12/10/2021 None Reminder Letter Mailed 7/28/2022 N/A 224-130-035-000 $315.20 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $610.00 12/10/2016 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $610.00 12/10/2017 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $610.00 12/10/2018 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $602.26 12/10/2019 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $560.50 12/10/2020 None Reminder Letter Mailed 7/28/2022 N/A 224-140-031-000 $557.32 12/10/2021 None Reminder Letter Mailed 7/28/2022 N/A 224-151-003-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 224-152-023-000 $529.90 12/10/2021 None Reminder Letter Mailed 7/28/2022 N/A 224-174-008-000 $223.84 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 224-191-006-000 $707.52 12/10/2020 None Reminder Letter Mailed 7/28/2022 N/A 224-201-005-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A Number of Parcels Delinquent: 9
Total Amount Delinquent: $6,706.13
/1 The fiscal year 2021-22 delinquency rate for CFD No. 2003-1 (Bellevue Ranch East) is at 0.5%. However, CFD No. 2003-1 is under the County of Merced Teeter Plan; therefore, the City of Merced received 100% of the CFD Special Tax levied at fiscal year end.
Source: Merced County Tax Collector's Office; Goodwin Consulting Group, Inc.
City of Merced
Community Facilities District No. 2003-1 (Bellevue Ranch East) Delinquencies as of July 28, 2022 /1
Assessor's
Parcel Number
APPENDIX C
Audited Financial Statements
for the Fiscal Year Ending June 30, 2022
(To Come Under Separate Cover)
THE FOLLOWING FINANCIAL STATEMENT IS PROVIDED SOLELY TO COMPLY WITH THE SECURITIES AND EXCHANGE COMMISSION STAFF’S
INTERPRETATION OF RULE 15c2 -12. NO FUNDS OR ASSETS OF THE CITY OF
MERCED (OTHER THAN THE SPECIAL TAXES LEVI ED IN THE COMMUNI TY
FACILITIES DISTRICT) ARE REQUIRED TO BE USED TO PAY DEBT SERVICE ON
THE BO NDS AND THE CITY IS NOT OBLIGATED TO ADVANCE AVAILABLE FUNDS FROM THE CITY TREASURY TO COVER ANY DELINQUENCIES.
INVESTORS SHOULD NOT RELY ON THE FINANCIAL CONDITION OF THE CITY IN EVALUATING WHETHER TO BUY, HOLD OR SELL THE BONDS.