CITY OF SAN CLEMENTE
COMMUNITY FACILITIES DISTRICT NO. 2006-1
(MARBLEHEAD COASTAL)
LOCAL AGENCY SPECIAL TAX AND BOND
ACCOUNTABILITY ACT COMPLIANCE (SB 165)
FISCAL YEAR ENDED JUNE 30, 2022
City of San Clemente
Erik Sund, City Manager
Jake Rahn, Financial Services Officer
City of San Clemente
910 Calle Negocio
San Clemente, CA 92673
T. 949.361.8200
F. 949.361.8283
Bond Counsel
Best, Best & Krieger LLP
655 W. Broadway, 15th Fl
San Diego, CA 92101-3542
T. 619.525.1300
F. 619.233.6118
Fiscal Agent
Phong Truong, Senior Analyst, Client Services
The Bank of New York Mellon Trust Company, N.A.
400 South Hope Street, Suite 500
Los Angeles, CA 90071
T. 213.630.6465
F. 213.630.6215
Special Tax Administrator
Scott Koppel/Kara Meverden
Koppel & Gruber Public Finance
334 Via Vera Cruz, Suite 256
San Marcos, CA 92078
T. 760.510.0290
F. 760.510.0288
TABLE OF CONTENTS
A. BACKGROUND.......................................................................... 1 B. BOND PROCEEDS .................................................................... 2 C. CITY-HELD FUNDS..................................................................... 3 D. COLLECTION OF SPECIAL TAXES ........................................... 4 E. EXPENDITURES TO FUND AUTHORIZED FACILITIES ...............5 F. AUTHORIZED FACILITIES ......................................................... 6 City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 1 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
A. BACKGROUND
The Local Agency Special Tax and Bond Accountability Act (“Accountability Act”) was enacted by California State Legislature through Senate Bill 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001. According to the requirements of the Accountability Act (Sections 50075.1 and 53410 of the Government Code of the State of California), an annual report must be filed by the local agency levying a special tax and/or issuing a bond measure on or before each January 1, commencing January 1, 2002 and shall contain a description of the following:
(1) The amount of funds collected and expended to fund authorized facilities. (2) The status of any project required or authorized to be funded by the special tax and/or bond measure.
The information contained in this Section has been compiled and is being presented pursuant to and in accordance with the requirements outlined in the Accountability Act for Fiscal Year 2021/22.
City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 2 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
B. BOND PROCEEDS
Community Facilities District No. 2006-1 (Marblehead Coastal) (“CFD No. 2006-1”) of the City of San Clemente (“City”) issued 2015 Special Tax Bonds (“Bonds”) on December 3, 2015 in the aggregate principal amount of $55,490,000. Proceeds of the Bonds were used to finance the construction of certain facilities within CFD No. 2006-1. The table below summarizes the application of the Bond proceeds:
BOND PROCEEDS
FUND/ACCOUNT/SUBACCOUNT BOND PROCEEDS
Improvement Fund $51,600,000.00
Bond Fund1 1,989,713.89
Costs of Issuance Fund 732,809.65
Reserve Fund 4,697,950.96
Administrative Expense Fund 30,000.00
TOTAL2 $59,050,474.50 1 Represents monies used to fund interest on the Bonds through September 1, 2016. 2 Total Bond proceeds deposited include the Original Issue Premium and exclude the Underwriter’s Discount.
City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 3 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
C. CITY-HELD FUNDS
Special Taxes collected are held by the City prior to being transferred to the Bond Fund held by the Fiscal Agent. The balance of the CFD No. 2006-1 City-held funds that are not required to fund items pursuant to and as further described in the CFD No. 2006-1 Fiscal Agent Agreement (“FAA”) established in connection with the issuance of the Bonds may be used to fund authorized facilities of the CFD. The following table provides a summary of the sources and uses of the CFD No. 2006-1 special tax funds held at the City for fiscal year ended June 30, 2022.
CITY-HELD FUNDS
ITEM BALANCE
BEGINNING BALANCE AS OF JULY 1, 2021 $2,368,370.81
Sources of Funds
Special Tax Receipts1 3,084,920.94
Interest Accrued 14,502.19
Miscellaneous Transfers (in) 0.00
Subtotal: Sources $3,099,423.13
Uses of Funds
Transfers to Bond Fund2 ($3,268,971.12)
Administrative Expenses (43,417.66)
Miscellaneous Transfers (out) 0.00
Subtotal: Uses $3,312,388.78
ENDING BALANCE AS OF JUNE 30, 2022 $2,155,405.16 1 Includes Special Taxes and any delinquent amounts collected by the County and transferred to the City. Excludes any special taxes that were charged for FY 2021/22 but not apportioned to the City until after June 30, 2022. 2 Represents funds used for the September 1, 2021 and March 1, 2022 debt service payments and funds used to conduct a bond call on September 1, 2021.
City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 4 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
D. COLLECTION OF SPECIAL TAXES
The table below provides a summary of the Special Taxes deposited, interest accrued, transfers, and other transactions within the Bond Fund for fiscal year ended June 30, 2022.
BOND FUND
ITEM BALANCE
BEGINNING BALANCE AS OF JULY 1, 2021 $1.08
Sources of Funds
Special Tax Receipts $2,949,671.12
Interest Accrued 3.16
Miscellaneous Transfers (in)
1 319,300.00
Subtotal: Sources $3,268,974.28
Uses of Funds
Transfers to Principal and Interest Accounts (Debt Service) ($2,949,675.00) Miscellaneous Transfers (out)1 (319,300.00)
Transfers to Administrative Expense Fund 0.00
Subtotal: Uses ($3,268,975.00)
ENDING BALANCE AS OF JUNE 30, 2022 $0.36 1 Represents funds received from parcel owner prepayments and used to conduct a bond call on September 1, 2021.
City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 5 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
E. EXPENDITURES TO FUND AUTHORIZED FACILITIES
The FAA established an Improvement Fund of which proceeds from the Bonds shall be deposited and disbursed for the costs of the authorized facilities. The following table shows the initial Bond proceeds deposited, interest accrued, transfers and expenditures made to fund the Facilities from bond inception through June 30, 2022 for the Improvement Fund.
Improvement Fund
ITEM BALANCE
Sources of Funds
Initial Bond Proceeds Deposited $51,600,000.00
Interest Accrued 906,984.77
Total Sources $52,506,984.77
Expenditures
Facilities ($49,563,484.74)
Total Expenditures ($49,563,484.74)
Ending Balance as of June 30, 2022 $2,943,500.03
City of San Clemente, Community Facilities District No. 2006-1 (Marblehead Coastal) 6 Local Agency Special Tax and Bond Accountability Act Compliance (SB 165) Fiscal Year Ended June 30, 2022
F.AUTHORIZED FACILITIES
The purpose of CFD No. 2006-1 is to provide for the cost of financing the construction and engineering design of the Facilities (described generally below), the payment of development impact fees and the incidental expenses related to financing, forming and administering CFD No. 2006-1. Descriptions of the authorized Facilities are as follows:
• Arterial Roadways
o Ave. Vista Hermosa
o Ave. Vista Hermosa Bridge
o Ave. Pico
o El Camino Real
• Local Public Roadways
o Los Molinos & Via Socorro
• Public Parks & Trails
o Sports Park
o Pico Park
o 2 Passive Parks
o Regional Public Trails
o Courtney Sand Castle
o Artificial Turf (Sports Park)
• Storm Drains
o Offsite Drain Line
o Residential Drain Lines
• Low-Flow 1st Flush System
o Off-site system
o Residential System
• Water System
o Offsite 12” Line
o Residential Line with 2 PRS
• Sewer System
o Offsite 12” Line
o Residential Line
• Fees and Assessment
o Transportion RCFPP (Residential Portion)
o Water Capacity and Connection Fee (Residential Portion) o Sewer Assessment District No. 85-1 Obligation