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I
mprovement Area No. 1 of the
City of Merced
Community Facilities District No. 2005-1
(Bellevue Ranch West)
$6,330,000 2017 Special Tax Refunding Bonds
Continuing Disclosure Annual Report for
Fiscal Year 2022-23
(per SEC Rule 15c2-12(b)(5))
CUSIP Numbers
$355,000 587606AT1* $325,000 587606BD5
$260,000 587606AU8* $340,000 587606BE3
$270,000 587606AV6* $350,000 587606BF0
$275,000 587606AW4* $360,000 587606BG8
$285,000 587606AX2* $375,000 587606BH6
$285,000 587606AY0* $390,000 587606BJ2
$295,000 587606AZ7 $400,000 587606BK9
$300,000 587606BA1 $410,000 587606BL7
$310,000 587606BB9 $430,000 587606BM5
$315,000 587606BC7
* R
etired as of the date of this report
J
anuary 31, 2024
Improvement Area No. 1 of the
City of Merced Community Facilities District No. 2005-1 (Bellevue Ranch West) Continuing Disclosure Annual Report Page 1
Continuing Disclosure Annual Report
for
Improvement Area No. 1 of the
City of Merced
Community Facilities District No. 2005-1
(Bellevue Ranch West)
$6,330,000 2017 Special Tax Refunding Bonds
Fiscal Year 2022-23
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 Improvement Area No. 1 (“Improvement Area No. 1”) of the City of Merced (the “City”) Community Facilities District No. 2005-1 (Bellevue Ranch West ) (the “CFD ”). The Rule is applicable to th e 2017 Special Tax Refunding Bonds (the “Series 2017 Bonds”) issued in the aggregate principal amount of $6,330,000 by the CFD on December 19, 2017. 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 19, 2017, requiring the City to provide annually, or as they occur, the aforementioned enumerated documents or events. Per the Continuing Disclosure Agreement , the C ity 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 December 31, 2023, the balance in the Reserve Fund was $ 457,765.
The Reserve Fund Requirement is $450, 138; therefore, pursuant to the Series 2017 Bonds covenants, the Reserve Fund is fully funded.
b) The principal amount of the Series 2017 Bonds outstanding and a current debt service schedule.
→ As of the date of this report, $ 4,600,000 of the Series 2017 Bonds remains outstanding.
→ See Appendix A for a current debt service schedule.
Improvement Area No. 1 of the
City of Merced Community Facilities District No. 2005-1 (Bellevue Ranch West) 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 Improvement Area No. 1, showing the total assessed valuation for all land and the total assessed valuation for all improvements within Improvement Area No. 1 and distinguishing between the assessed value of developed property and undeveloped property.
Total Assessed Value of all Land $56,946,808
Total Assessed Value of all Improvements $200,835,413
Total Assessed Value of Other Property $0
Total Assessed Value of all Parcels $257,782,221
Assessed Value of Developed Property $256,555,152
Assessed Value of Undeveloped Property $1,227,069
Total Assessed Value of all Parcels $257,782,221
e) Identification of each parcel within Improvement Area No. 1 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 for a listing of each delinquent parcel.
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.
Improvement Area No. 1 of the
City of Merced Community Facilities District No. 2005-1 (Bellevue Ranch West) Continuing Disclosure Annual Report Page 3
g) Changes, if any to the Rate and Method of Apportionment for Improvement Area No. 1. → None.
h) The amount of special taxes generated by the developed parcels and undeveloped parcels within Improvement Area No. 1, 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 p repared 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.
→ No audited or unaudited financial statements were available at the date of this report. The financial statements will be posted at a later date. 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 special 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 y ear 2022-23 special tax lev y is set fo rth in the table on the following page.
Improvement Area No. 1 of the
City of Merced Community Facilities District No. 2005-1 (Bellevue Ranch West) Continuing Disclosure Annual Report Page 4
Fiscal Year 2022-23 Revenues
Interest $23,183
Assessments $460,227
Total Revenues Collected $483,410
Fiscal Year 2022-23 Expenditures
Bond Interest $161,744
Bond Principal $285,000
Fiscal Agent Fees $2,855
Professional Services $9,299
Support Services $28
Administrative Services $1,383
Direct Service Charges $2,424
Total Expenditures $462,733
Beginning Fund Balance* $952,975
Ending Fund Balance* $973,652
Net Change in Fund Balance $20,677
* 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.
Improvement Area No. 1 of the
City of Merced Community Facilities District No. 2005-1 (Bellevue Ranch West) Continuing Disclosure Annual Report Page 5
13. Appointment of a successor or additional fiscal agent or the change 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 other than in the ordinary course of business.
→ No significant events have been reported by the CFD during fiscal year 2022-23.
APPENDIX A
Debt Service Schedule
Interest Total Annual
Payment Debt Debt
Date Principal Interest Service Service
3/1/2018 $0.00 $39,168.75 $39,168.75 $0.00
9/1/2018 $355,000.00 $97,921.88 $452,921.88 $492,090.63 3/1/2019 $0.00 $94,371.88 $94,371.88 $0.00
9/1/2019 $260,000.00 $94,371.88 $354,371.88 $448,743.76 3/1/2020 $0.00 $90,471.88 $90,471.88 $0.00
9/1/2020 $270,000.00 $90,471.88 $360,471.88 $450,943.76 3/1/2021 $0.00 $86,421.88 $86,421.88 $0.00
9/1/2021 $275,000.00 $86,421.88 $361,421.88 $447,843.76 3/1/2022 $0.00 $82,296.88 $82,296.88 $0.00
9/1/2022 $285,000.00 $82,296.88 $367,296.88 $449,593.76 3/1/2023 $0.00 $79,446.88 $79,446.88 $0.00
9/1/2023 $285,000.00 $79,446.88 $364,446.88 $443,893.76 3/1/2024 $0.00 $76,240.63 $76,240.63 $0.00
9/1/2024 $295,000.00 $76,240.63 $371,240.63 $447,481.26 3/1/2025 $0.00 $72,553.13 $72,553.13 $0.00
9/1/2025 $300,000.00 $72,553.13 $372,553.13 $445,106.26 3/1/2026 $0.00 $68,428.13 $68,428.13 $0.00
9/1/2026 $310,000.00 $68,428.13 $378,428.13 $446,856.26 3/1/2027 $0.00 $64,165.63 $64,165.63 $0.00
9/1/2027 $315,000.00 $64,165.63 $379,165.63 $443,331.26 3/1/2028 $0.00 $59,440.63 $59,440.63 $0.00
9/1/2028 $325,000.00 $59,440.63 $384,440.63 $443,881.26 3/1/2029 $0.00 $54,362.50 $54,362.50 $0.00
9/1/2029 $340,000.00 $54,362.50 $394,362.50 $448,725.00 3/1/2030 $0.00 $48,837.50 $48,837.50 $0.00
9/1/2030 $350,000.00 $48,837.50 $398,837.50 $447,675.00 3/1/2031 $0.00 $42,931.25 $42,931.25 $0.00
9/1/2031 $360,000.00 $42,931.25 $402,931.25 $445,862.50 3/1/2032 $0.00 $36,631.25 $36,631.25 $0.00
9/1/2032 $375,000.00 $36,631.25 $411,631.25 $448,262.50 3/1/2033 $0.00 $30,068.75 $30,068.75 $0.00
9/1/2033 $390,000.00 $30,068.75 $420,068.75 $450,137.50 3/1/2034 $0.00 $23,000.00 $23,000.00 $0.00
9/1/2034 $400,000.00 $23,000.00 $423,000.00 $446,000.00 3/1/2035 $0.00 $15,750.00 $15,750.00 $0.00
9/1/2035 $410,000.00 $15,750.00 $425,750.00 $441,500.00 3/1/2036 $0.00 $8,062.50 $8,062.50 $0.00
9/1/2036 $430,000.00 $8,062.50 $438,062.50 $446,125.00
Total $6,330,000.00 $2,204,053.23 $8,534,053.23 $8,534,053.23 Goodwin Consulting Group, Inc.
Improvement Area No. 1 of CFD No. 2005-1 (Bellevue Ranch West) 2017 Special Tax Refunding Bonds
Debt Service Schedule
APPENDIX B
Special Tax Delinquencies
Date of Status of Date
Amount Earliest F oreclosure Foreclosure
Delinquent Delinquency Proceedings Action Taken Complaint Filed 224-091-001-000 $373.04 4/ 10/2023 None Reminder letter mailed on 9/6/2023 N/A 230-020-003-000 $373.04 4/10/2023 None Reminder letter mailed on 9/6/2023 N/A 230-042-006-000 $373.04 4/10/2023 None Reminder letter mailed on 9/6/2023 N/A 230-063-013-000 $379.89 4/10/2022 None Reminder letter mailed on 9/6/2023 N/A 230-083-001-000 $545.12 12/10/2023 None Reminder letter mailed on 9/6/2023 N/A 230-110-013-000 $641.52 12/10/2022 None Reminder letter mailed on 9/6/2023 N/A 230-120-012-000 $272.56 4/10/2023 None Reminder letter mailed on 9/6/2023 N/A 230-120-026-000 $325.50 4/10/2021 None Reminder letter mailed on 9/6/2023 N/A 230-120-026-000 $641.52 12/10/2022 None Reminder letter mailed on 9/6/2023 N/A 230-120-026-000 $545.12 12/10/2023 None Reminder letter mailed on 9/6/2023 N/A Number of Parcels Delinquent: 8
T
otal Amount Delinquent: $4,470.35
/1 The fiscal year 2022-23 delinquency rate for CFD No. 2005-1 (Bellevue Ranch West) is at 0.5%. CFD No. 2005-1 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.
Parcel Number
City of Merced
Improvement Area No. 1 of
Community Facilities District No. 2005-1 (Bellevue Ranch West) Delinquencies as of September 6, 2023 /1
Assessor's
APPENDIX C
Value-to-Lien Ratios of
Developed and Undeveloped Property
Percent of
FY 2023-24 FY 2023-24 FY 2023-24 Average
Number of FY 2023-24 Total Assigned Actual Actual Value-to- Classification Parcels Assessed Value Special Tax Special Tax Special Tax Bonds(1) Lien Developed 711 $256,555,152 $549,621 $465,208 100.0% $4,600,000 55.8 Undeveloped 1 $1,227,069 $77,985 $0 0.0% $0 N/A
Total 712 $257,782,221 $627,606 $465,208 100.0% $4,600,000 56.0 (1) Allocated based on the actual tax levy for fiscal year 2023-24.
Sources: Merced County Assessor; Goodwin Consulting Group, Inc.
Value-to-Lien Ratios of Developed and Undeveloped Property Improvement Area No. 1 of the
City of Merced
Community Facilities District No. 2005-1
(Bellevue Ranch West)
AP
PENDIX D
Audited Financial Statements
for the Fiscal Year Ending June 30, 2023
(To Come At A Later Date)
TH
E 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 LEVIED IN IMPROVEMENT AREA NO. 1 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.