DISCLOSURES
Redevelopment Agency Tax Allocation Bonds
Successor Agency of The City of Visalia (former Visalia Community Redevelopment Agency of The City of Visalia) On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 26 (Bill) that provides for the dissolution of all redevelopment agencies in the State of California.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 17, 2012, the City Council elected to become t he Successor Agency for the former Visalia Community Redevelopment Agency (RDA) with the Bill as part of City resolution number 12-01.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established
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oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).
In accordance with the timeline set forth in the B ill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. The Successor Agency of The City of Visalia took o ver the affairs of the former RDA of the City of Visalia at that time and is responsible for the wind down of the affairs of the dissolved RDA. It is responsible for fulfilling the obligations of the former RDA and is also responsible for revenue collecti on, maintaining bond reserves, and disposing of excess property. When the RDA was dissolved, the four project areas of the RDA were combined into one entity. Therefore, some historical information as required by the continuing disclosure is no longer available or applicable.
For FY 202 1-22 and future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the former redevelopment agency have been paid in full and all assets have been liquidated.
The only outstanding bonded debt of the former Visalia Community Redevelopment Agency is the 2003 Tax Allocation Refunding Bonds (2003 Bonds). The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.
The 2003 Tax Allocation Refunding Bonds (East Visalia Redevelopment Project) required continuing disclosures which are now meaningless due to the dissolution of redevelopment agencies. Continuing disclosure covenants ask for the following five tables:
Historical Assessed Valuation (Table 3)
Historical Levy and Receipts (Table 4)
Top Ten Taxpayers (Table 6)
Projected Tax Revenues (Table 8)
Projected Debt Service Coverage (Table 9)
Rating Changes
These tables are presented here as required.
Fis cal Year Locally-
Ended Asse sse d Unsecured Sta te -Asse sse d Total Incremental June 30 Secured Value Value Value Asse sse d Va lue Asse sse d Va lue 2018 166,077,971 19,965,433 602,306 186,645,710 71,719,119 2019 172,658,326 23,034,881 602,306 196,295,513 71,719,119 2020 182,187,754 21,343,824 602,306 204,133,884 71,719,119 2021 194,743,023 19,553,714 602,306 214,899,043 71,719,119 2022 197,716,642 25,230,839 651,803 223,599,284 71,719,119 Source: County of Tulare and City of Visalia Finance Department TABLE 3
SUCCESSOR AGENCY OF THE CITY OF VISALIA
EAST SUCCESSOR AGENCY PROJECT AREA
HISTORICAL AND CURRENT ASSESSED VALUATION
LAST FIVE FISCAL YEARS
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Total Receipts of
Tax Increment Percentage of
Fis cal Year Levy Revenue Levy Received
2008-09 1,170$ 1,389$ 118.72%
2009-10 1,244 1,336 107.40%
2010-11 1,212 1,339 110.48%
2011-12* 1,177 665 56.50%
* Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.
Source: County of Tulare and City of Visalia Finance Department Table 4
Successor Agency of The City of Visalia
Eas t Vis alia Redevelopment Project
Historical Levy and Receipts
Fiscal Year 2021-22 Percentage of
Property Owner Tota l Asse sse d Va lue Total (1)
1 Hotel Circle GL Holding LLC 16,814,649$ 7.52% 2 Donald John & Shelly Kaye Groppetti 15,850,571 7.09% 3 Willow Street Development Co LLC 11,183,698 5.00% 4 Kenneth J. Curti (TR) 9,026,116 4.04% 5 ABEC #8 LLC 7,433,860 3.32%
6 Mark Whittlesey (TR) 6,422,811 2.87% 7 Visalia Land & Investment Co LLC 6,314,860 2.82% 8 United Rentals North America Inc. 4,736,510 2.12% 9 Legacy Investments LLC 3,561,822 1.59% 10 Z5 LLC 3,216,609 1.44%
84,561,506$
(1) Fiscal Year 2021-22 assessed valuation: $223,599,284 Source: Tulare County Auditor Controller's Office
Table 6
SUCCESSOR AGENCY OF THE CITY OF VISALIA
EAST VISALIA REDEVELOPMENT PROJECT AREA
TOP TEN TAXPAYERS
BASED UPON 2021-22 ASSESSED VALUATION
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With the dissolution of redevelopment agencies, successor agencies will only receive property tax revenues sufficient to pay debt service. As a result, the County of Tulare will provide the City’s successor agency tax increment equal to the debt service for that y ear. In other words, debt service coverage will be 1.0 and projected receipts will be equal to debt service.
Table 8
Successor Agency of The City of Visalia
Eas t Vis alia Redevelopment Project
Tax Revenues
(000s Omitted)
Tota l Asse sse d Tax Senior Tax Section 33676 County Housing Tax Fis cal Year Valuation Increment Sharing Adjustment Admin Fees Set-Aside Revenues 2008-09 160,739$ 1,389$ 550$ 9$ 64$ 278$ 488$ 2009-10 171,728 1,336 585 9 41 267 434 2010-11 169,542 1,339 594 9 39 268 429 2011-12* 167,310 665 12 9 22 133 489 * Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
Source: County of Tulare and City of Visalia Finance Department Tax Debt
Fis cal Year Revenues Service Coverage
2008-09 488$ 220$ 222%
2009-10 434 225 193%
2010-11 429 230 187%
2011-12* 489 240 204%
2012-13** 245 245 100%
2013-14** 255 255 100%
2014-15** 260 260 100%
2016-2020** 1,065 1,065 100%
2021-2025** 1,005 1,005 100%
2025-2027** 460 460 100% * Partial Year due to the dissolution of The Visalia Community Redevelopment Agency on February 1, 2012
**The 2003 Bonds have been accepted by the California Department of Finance as enforceable obligations. As a result, the County of Tulare will provide former tax increment revenues to the Successor Agency of the City of Visalia for payment of the 2003 Bonds.
Source: City of Visalia Finance Department
Table 9
Successor Agency of The City of Visalia
Eas t Vis alia Redevelopment Project
Projected Debt Service Coverage
(000's Omitted)
228
Rating Changes for 2003 Tax Allocation Refunding Bonds (East Visalia Redevelopment Project)
· On August 10, 2010, Standard & Poor’s upgraded the 2003 Bonds from BBB to A -, the last rating analysis that the City has received.
Certificates of Participation – 2014 Refunding Certificates of Participation
The 2014 Refunding Certificates of Participation required the following continuing disclosures that are not already included as part of the City’s Annual Comprehensive Financial Report (CAFR):
Balance of the Reserve Fund as of January 1
Rating Changes
The reserve fund for the 2014 Refunding Certificates of Participation consists of an Assured Guaranty Municipal Bond Insurance Policy. The market value of the bond insurance in place at January 1, 20 22 was $797,250.00.
Rating Changes for 2014 Refunding Certificates of Participation
· On June 12, 2014, Standard & Poor’s issued a rating for the 2014 Refunding Certificates of Participation of A+. On January 6, 2021, Standard & Poor’s reaffirmed the A+ rating. This is the latest rating analysis that the City has received for this issue.
Certificates of Participation – 2015 Certificates of Participation
The 2015 Certificates of Participation required the following continuing disclosures that are not already included as part of the City’s Annual Comprehensive Financial Report (CAFR):
Balance of the Reserve Fund as of January 1
Rating Changes
The reserve fund for the 2015 Certificates of Participation consists of an Assured Guaranty Municipal Bond Insurance Policy. The market value of the bond insurance in place at January 1, 2022 was $1,578,737.50.
Rating Changes for 2015 Certificates of Participation
· On August 21, 2015, Standard & Poor’s issued a rating for the 2015 Certificates of Participation of A+. On January 6, 2021, Standard & Poor’s reaffirmed the A+ rating. This is the latest rating analysis that the City has received for this issue.