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C
ity of Merced
Community Facilities District No. 2006-1
(Moraga of Merced)
$4,080,000 2019 Special Tax Refunding Bonds
Continuing Disclosure Annual Report for
Fiscal Year 2021-22
(per SEC Rule 15c2-12(b)(5))
CUSIP Numbers
$275,000 587626DG4* $215,000 587626DR0
$215,000 587626DH2* $230,000 587626DS8
$220,000 587626DJ8* $245,000 587626DT6
$225,000 587626DK5 $245,000 587626DU3
$230,000 587626DL3 $255,000 587626DV1
$230,000 587626DM1 $275,000 587626DW9
$235,000 587626DN9 $275,000 587626DX7
$215,000 587626DP4 $275,000 587626DY5
$220,000 587626DQ2
* R
etired as of the date of this report
J
anuary 9, 2023
City of Merced Community Facilities District No. 2006-1 (Moraga of Merced) Continuing Disclosure Annual Report Page 1
Continuing Disclosure Annual Report
for
City of Merced
Community Facilities District No. 2006-1
(Moraga of Merced)
$4,080,000 2019 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 Merced (the “City”) Community Facilities District No. 2006-1 (Moraga of Merced) (the “CFD”). The Rule is applicable to the 2019 Special Tax R efunding Bonds (the “Series 2019 Bonds”) issued in the aggregate principal amount of $4,080,000 by the CFD on December 10, 2019. 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 Continuing 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 Disclosure Agreement on December 1, 2019, 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 the MSRB which includes:
a) The balance in the Reserve Fund held under the Fiscal Agent Agreement.
→ As of November 30, 20 22, the balance in the Reserve Fund was $ 325,855.
The Reserve Fund Requirement is $ 323,919; therefore, pursuant to the Series 2019 Bonds covenants, the Reserve Fund is fully funded.
b) The pri ncipal amount of the Series 2019 Bonds outstanding and a current debt service schedule.
→ As of the date of this report, $3,370 ,000 of the Series 2019 Bonds remains outstanding.
→ See Appendix A for a current debt service schedule.
City of Merced Community Facilities District No. 2006-1 (Moraga of Merced) Continuing Disclosure Annual Report Page 2
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.
d) The total assessed value of all parcels currently 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 $39,162,433
Total Assessed Value of all Improvements $143,133,223
Total Assessed Value of Other Property $0
Total Assessed Value of all Parcels $182,295,656
Assessed Value of Developed Property $182,295,656
Assessed Value of Undeveloped Property $0
Total Assessed Value of all Parcels $182,295,656
e) Identification of each parcel within the CFD for which any special tax payment is delinquent, together with the following information respecting each such parcel: (A) the amount delinquent; (B) the date of each delinquency; (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 respecting 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 special 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 in the CFD owns properties that collectively represent 10% or more of the special taxes.
City of Merced Community Facilities District No. 2006-1 (Moraga of Merced) Continuing Disclosure Annual Report Page 3
g) Changes, if any to the Rate and Method of Apportionment for the CFD.
→ None.
h) The amount of special taxes generated by the developed parcels and undeveloped parcels within the CFD, their percentage of maximum special tax levy and their aggregate assessed value to lien ratios.
→ See Appendix C.
i) The audited financial statements for 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 principles as prescribed for governmental units by the Governmental Accounting Standards Board; provided, however, that the City may from time to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared and provided.
→ See Appendix D.
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 that local agencies need to demonstrate to voters that speci al taxes and bond proceeds are being spent on the facilities and services for which they were intended. To further this objective, the Legislature added Sections 50075.3 and 53411 to the California 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 table on the following page.
City of Merced Community Facilities District No. 2006-1 (Moraga of Merced) Continuing Disclosure Annual Report Page 4
Fiscal Year 2021-22 Revenues
Interest $958
Assessments $336,830
Total Revenues Collected $337,788
Fiscal Year 2021-22 Expenditures
Bond Interest $106,044
Bond Principal $215,000
Fiscal Agent Fees $3,310
Professional Services $8,179
Support Services $21
Administrative Services $1,103
Direct Service Charges $697
Total Expenditures $334,354
Beginning Fund Balance* $695,103
Ending Fund Balance* $698,537
Net Change in Fund Balance 3,434
* Includes Reserve Requirement.
Note: This is unaudited financial information.
k) Reporting of Significant Events. Pursuant 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, if material:
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 opinions 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 Bonds, if material.
12. Bankruptcy, insolvency, receivership, or similar proceedings of the City.
13. Appointment of a successor or additional fiscal agent or the change of name of City of Merced Community Facilities District No. 2006-1 (Moraga of Merced) Continuing Disclosure Annual Report Page 5
a fiscal agent, if material.
14. The consummation of a merger, consolidation, or acquisition involving the CFD or the sale of all or substantially all of the assets of the CFD other than in the ordinary course of business.
15. Incurrence of a Financial Obligation of an Obligated Person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of an Obligated Person, any of which affect security holders, if material.
16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of an Obligated Person, any of which reflect financial difficulties.
→ On August 11, 2021 the CFD provided notice that MUFG Union Bank, N.A. had sold its debt servicing and securities custody client portfolio 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 business to its affiliate, U.S.
Bank Trust Company, National Association. The effective date of the transfer was January 29, 2022.
→ On April 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
Interest Total Annual
Payment Payment Debt Debt
No. Date Principal Interest Service Service
0 12/10/2019 $0.00 $0.00 $0.00 $0.00
1 3/1/2020 $0.00 $25,822.97 $25,822.97 $0.00
2 9/1/2020 $275,000.00 $57,384.38 $332,384.38 $358,207.35 3 3/1/2021 $0.00 $54,634.38 $54,634.38 $0.00
4 9/1/2021 $215,000.00 $54,634.38 $269,634.38 $324,268.76 5 3/1/2022 $0.00 $51,409.38 $51,409.38 $0.00
6 9/1/2022 $220,000.00 $51,409.38 $271,409.38 $322,818.76 7 3/1/2023 $0.00 $49,209.38 $49,209.38 $0.00
8 9/1/2023 $225,000.00 $49,209.38 $274,209.38 $323,418.76 9 3/1/2024 $0.00 $46,959.38 $46,959.38 $0.00
10 9/1/2024 $230,000.00 $46,959.38 $276,959.38 $323,918.76 11 3/1/2025 $0.00 $44,659.38 $44,659.38 $0.00
12 9/1/2025 $230,000.00 $44,659.38 $274,659.38 $319,318.76 13 3/1/2026 $0.00 $42,359.38 $42,359.38 $0.00
14 9/1/2026 $235,000.00 $42,359.38 $277,359.38 $319,718.76 15 3/1/2027 $0.00 $40,009.38 $40,009.38 $0.00
16 9/1/2027 $215,000.00 $40,009.38 $255,009.38 $295,018.76 17 3/1/2028 $0.00 $37,859.38 $37,859.38 $0.00
18 9/1/2028 $220,000.00 $37,859.38 $257,859.38 $295,718.76 19 3/1/2029 $0.00 $35,659.38 $35,659.38 $0.00
20 9/1/2029 $215,000.00 $35,659.38 $250,659.38 $286,318.76 21 3/1/2030 $0.00 $31,359.38 $31,359.38 $0.00
22 9/1/2030 $230,000.00 $31,359.38 $261,359.38 $292,718.76 23 3/1/2031 $0.00 $26,759.38 $26,759.38 $0.00
24 9/1/2031 $245,000.00 $26,759.38 $271,759.38 $298,518.76 25 3/1/2032 $0.00 $21,859.38 $21,859.38 $0.00
26 9/1/2032 $245,000.00 $21,859.38 $266,859.38 $288,718.76 27 3/1/2033 $0.00 $16,959.38 $16,959.38 $0.00
28 9/1/2033 $255,000.00 $16,959.38 $271,959.38 $288,918.76 29 3/1/2034 $0.00 $11,859.38 $11,859.38 $0.00
30 9/1/2034 $275,000.00 $11,859.38 $286,859.38 $298,718.76 31 3/1/2035 $0.00 $8,078.13 $8,078.13 $0.00
32 9/1/2035 $275,000.00 $8,078.13 $283,078.13 $291,156.26 33 3/1/2036 $0.00 $3,953.13 $3,953.13 $0.00
34 9/1/2036 $275,000.00 $3,953.13 $278,953.13 $282,906.26 Total $4,080,000.00 $1,130,382.51 $5,210,382.51 $5,210,382.51 CFD No. 2006-1 (Moraga)
Special Tax Refunding Bonds, Series 2019
Debt Service Schedule
(Original DS Schedule)
APPENDIX B
Special Tax Delinquencies
as of July 28, 2022
Date of Status of Date
Assessor's Amount Earliest Foreclosure Foreclosure
Parcel Number Delinquent Delinquency Proceedings Action Taken Complaint Filed 008-411-003-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 008-412-001-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 008-422-001-000 $435.83 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 008-490-037-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 008-490-055-000 $278.66 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A 008-500-025-000 $435.83 4/10/2022 None Reminder Letter Mailed 7/28/2022 N/A Number of Parcels Delinquent: 6
Total Amount Delinquent: $1,986.30
/1 The fiscal year 2021-22 delinquency rate for CFD No. 2006-1 (Moraga of Merced) is at 0.6%. However, CFD No. 2006-1 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. 2006-1 (Moraga of Merced) Delinquencies as of July 28, 2022 /1
APPENDIX C
Value-to-Lien Ratios of
Developed and Undeveloped Property
Percent of
FY 2022-23 FY 2022-23 FY 2022-23 Average
Number of FY 2022-23 Total Assigned Actual Actual Value-to- Classification Parcels Assessed Value Special Tax Special Tax Special Tax Bonds(1) Lien Developed 520 $182,295,656 $465,312 $337,670 100.0% $3,370,000 54.1 Undeveloped 0 $0 $0 $0 0.0% $0 N/A
Total 520 $182,295,656 $465,312 $337,670 100.0% $3,370,000 54.1 (1) Allocated based on the actual tax levy for fiscal year 2022-23.
Sources: Merced County Assessor; Goodwin Consulting Group, Inc.
City of Merced
Community Facilities District No. 2006-1
(Moraga of Merced)
Value-to-Lien Ratios of Developed and Undeveloped Property
APPENDIX D
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 TH AN THE SPECIAL TAXES LEVIED IN THE COMMUNITY
FACILITIES DISTRICT) ARE REQUIRED TO BE USED TO PAY DEBT SERVICE ON
THE BONDS 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.