Community Facilities District No. 2003-2 Fiscal Year 2017 ... · FINAL BILLING DETAIL REPORT FOR FISCAL YEAR 2017/18. ... Fiscal Year 2017/18 Annual Report 2 2. 2017/18 LEVY ... as

OFFICE LOCATIONS: Temecula – Corporate Headquarters 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 San Francisco – Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 California Satellite Offices Atascadero, Davis Huntington Beach, Joshua Tree, Riverside Sacramento, San Jose

www.nbsgov.com

Prepared by:

Community Facilities District No. 2003-2

Fiscal Year 2017/18 Annual Report

October 2017

CITY OF SAN JACINTO 595 S. San Jacinto Avenue

San Jacinto, CA 92583 Phone - (951) 537-6380

CITY COUNCIL

Scott Miller, Mayor

Alonso Ledezma, Mayor Pro Tem

Andrew Kotyuk, Council Member

Crystal Ruiz, Council Member

Russ Utz, Council Member

CITY STAFF

Rob Johnson, City Manager

Tom Prill, Finance Director

Crystal Yanez, Special Districts Administrator

Michelle Holmes, General Accounting Manager

Mark Carr, Senior Accountant

NBS

Danielle Wood, Client Services Director

Pablo Perez, Project Director

Darrylanne Zarate, Financial Analyst

EXECUTIVE SUMMARY/SPECIAL ISSUES

General Information Summary

The types of facilities and services provided and financed by Community Facilities District No. 2003-2 (the

“District”) include the maintenance of sewer facilities, such as the furnishing of services and materials for

ordinary and usual maintenance and operation and the servicing of such sewer facilities, including, but not

limited to the repair, removal, or replacement of all or any part of any improvement.

For Fiscal Year 2017/18, 66 parcels were subject to the Special Tax and were levied at 100% of their

respective Maximum Special Tax. The Maximum Special Tax Rate for each parcel classified as residential

property is $297.5295 (shown to the fourth decimal – for exact amount) per number of actual residential

units constructed or to be constructed on such parcel. This Maximum Special Tax rate increases by 2% each

fiscal year. Property exempt from the Special Tax includes public property, non-developable property and

common area parcels within residential complexes.

As of September 30, 2017, the overall delinquency rate for the District for all fiscal years is 0%.

TABLE OF CONTENTS

EXECUTIVE SUMMARY/SPECIAL ISSUES

1. SENATE BILL 165 ............................................................................................................. 1

2. 2017/18 LEVY ................................................................................................................. 2

Special Tax Spread ............................................................................................................... 2

Annual Levy Components .................................................................................................... 2

Levy Summary ..................................................................................................................... 3

3. DELINQUENCY MANAGEMENT ........................................................................................ 4

Delinquency Summary ........................................................................................................ 4

Delinquency Management .................................................................................................. 4

4. BACKGROUND INFORMATION ........................................................................................ 5

Description of Services ........................................................................................................ 5

5. APPENDICIES .................................................................................................................. 6

RATE AND METHOD OF APPORTIONMENT

BOUNDARY MAP

FINAL BILLING DETAIL REPORT FOR FISCAL YEAR 2017/18

City of San Jacinto Community Facilities District No. 2003-2

Fiscal Year 2017/18 Annual Report 1

1. SENATE BILL 165

Sewer Lift Operations Fund

Senate Bill 165, filed with the Secretary of State on September 19, 2000, enacted the Local Agency Special

Tax and Bond Accountability Act. This Act requires that any local special tax or local bond measure subject

to voter approval contain a statement indicating the specific purposes of the special tax, require that the

proceeds of the special tax be applied to those purposes, require the creation of an account into which the

proceeds shall be deposited, and require an annual report containing specified information concerning the

use of the proceeds. The Act only applies to any local special tax measure or local bond measure adopted

on or after January 1, 2001 in accordance with Section 50075.1 or Section 53410 of the California

Government Code.

Some of the requirements of the Act are handled at the formation of the Special Tax District and others are

handled through annual reports. This Section of this report intends to comply with Section 50075.3 or

Section 53411 of the California Government Code that states:

“The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than

January 1, 2002, and at least once a year thereafter. The annual report shall contain all of the following:

The amount of funds collected and expended.

The status of any project required or authorized to be funded as identified in subdivision (a) of Section

50075.1 or Section 53410.”

The requirements of the Act apply to the Operating Fund of Community Facilities District No. 2003-2.

PURPOSE OF SPECIAL TAX

The types of facilities and services provided and financed by Community Facilities District No. 2003-2 (the

“District”) include the maintenance of sewer facilities, such as the furnishing of services and materials for

ordinary and usual maintenance and operation and the servicing of such sewer facilities, including, but not

limited to the repair, removal, or replacement of all or any part of any improvement.

COLLECTIONS & EXPENDITURES – (ACCUMULATIVE)

Fund Total Amount

Collected 06/30/2017

Balance Amount

Expended Service Status

Sewer Lift Operations Fund $226,402.11 $0.00 $226,402.11 Ongoing



2. 2017/18 LEVY

Special Tax Spread

All parcels were levied a Special Tax of approximately 100% of their respective Maximum Special Tax Rate

for Fiscal Year 2017/18. The following table provides the Special Tax Levy breakdown for Fiscal Year

2017/18:

Total Amount Levied Maximum Special Tax Percentage of Maximum (1)

$19,636.32 $19,636.95 100%

Annual Levy Components

Pursuant to the California Government Code, administrative expenses are identified by consultation with

Agency staff to ensure that the District is self-supporting and is not being subsidized by the Agency’s

General Fund.

NBS assists the Agency in identifying and recovering the following general costs:

Agency administrative charges. This includes the value of Agency staff time spent on the administration of

the District, calculated by using a fully-loaded salary rate that includes benefits and overhead costs. Any

Agency expenses that have been incurred, such as copying and mailing expenses, are also recovered as

part of this calculation.

Fiscal Agent/Bank charges. Includes the total of bank charges to the Agency for the annual tracking of

funds and payments made for services rendered.

County Auditor-Controller collection charges. Fees charged by the County Auditor-Controller to place the

special tax installments on the tax roll each year are identified and recovered if the charge is subtracted

from the amount submitted by NBS. This charge is typically either a flat, per-parcel charge or a percentage

charge based on the amount submitted. Riverside County charges $0.41 per parcel, per charge, plus a base

$127.14 per District, to place installments on the tax roll.

Administration charges. Costs incurred by the Administrator in the year-round administration of the

District, which includes the preparation of the annual levy, ongoing reporting to the Agency, and the

tracking of activity within the District such as payments and parcel changes.

Delinquency management charges. The cost of any delinquency management action to pursue the

payment of delinquencies, including the mailing of reminder and demand letters.

Manual adjustments. Credits and charges for specific parcels affected by special circumstances.

Fund surplus credits. NBS analyzes the fund balances each year. Surplus funds that exist may be applied to

the annual levy as a credit to reduce each parcel’s annual installment.

(1) Approximately 100%. The levy for each parcel was rounded down to an even cent amount below the maximum for

placement on the County tax roll.



Levy Summary

The following table summarizes the components that make up the Fiscal Year 2017/18 levy for the District.

Information from Fiscal Year 2017/18 levy is also included for comparison purposes.

Final Budget for Fiscal Year 2017/18


City of San Jacinto

FY 2016/17FY 2017/18Category/Item Increase / (Decrease)

0.000.000.00Miscellaneous110.574,671.994,782.56Admin. Expenses

$274.87$14,578.89$14,853.76Maintenance

Grand Total: $19,636.32 $19,250.88 $385.44

Total Accounts: 66 66 0

Page 1 of 2Copyright © 2013 by NBS 09/29/2017 11:15:44AM



3. DELINQUENCY MANAGEMENT

Delinquency Summary

The following table shows the 2016/17 delinquency rate for the District as of September 30, 2017:

2016/17

Levy

2016/17

Delinquencies

2016/17

Delinquency Rate

Delinquency Management

Steps Taken

$19,250.88 $0.00 0% Delinquencies Monitored

NBS monitors the delinquency rate and reviews the delinquency situation after each payment date. The

overall delinquency rate of the District is 0.00% from Fiscal Year 2004/05 through Fiscal Year 2016/17.

Delinquency Management

It is the policy of the City to send reminder letters to property owners that are delinquent for two or more

installments.

The following page outlines the Delinquency Management Policy for the District.

DELINQUENCY MANAGEMENT POLICY

CITY OF SAN JACINTO

COMMUNITY FACILITIES DISTRICT 2003-2

1.1 Policy 1.1.1 It is the policy of the City of San Jacinto to provide a consistent and effective

delinquency management policy for all Special Tax Districts within the City of San Jacinto (“Agency”).

1.1.2 Along with the resources of NBS Local Government Solutions (“NBS”) and the

City’s Attorney the City intends to provide a delinquency management policy with the following goals: (i) to protect the interest of all property owners; (ii) encourage property owners to resolve delinquencies prior to litigation for the least expense; (iii) to treat property owners fairly and equally.

1.1.3 The implementation step of the delinquency management policy and a

description of the step is as follows:

A. Because this is a non-bonded district and not subject to foreclosure, it is the policy of the City to have NBS send reminder letters on all parcels 2 payments delinquent or more within 30 days of receiving county payment information in January and May.



4. BACKGROUND INFORMATION

Description of Services

The types of facilities and services provided and financed by the District are the maintenance of sewer

facilities, which have an estimated useful life of five years or longer. The maintenance of sewer facilities

include the furnishing of services and materials for ordinary and usual maintenance, operation and

servicing of such sewer facilities, including, but not limited to the repair, removal, or replacement of all or

any part of any improvement.



5. APPENDICIES

RATE AND METHOD OF APPORTIONMENT

BOUNDARY MAP

FINAL BILLING DETAIL REPORT FOR FISCAL YEAR 2017/18

ATTACHMENT A

co M M u N'.F'J;.?¡'tt' å$ iît?HË? N o 20 03-2

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TÐ(ES

A Special Tax shall be levied and collected within the boundaries of the CommunityFacilitÍes District No. 2003-2 ("CFD No. 2003-2") of the City Of San Jacinto ("City") eachFiscal Year, in an amount determined by the City Council ("Council") acting in its capacityas the fegislative body of CFD No, 2003-2 through the application of the proceduresdescribed below. All of the real property in CFD No, 2003-2, ulnless exempted by theprovisions hereof, shall be taxed to the extent and in the manner herein provided.

A. DEFINITIONS

The terms used herein shall have the foliowing meanings:

"Act" means the Mello-Roos Community Faciliiies Act of 1982, as amended, beingChapter 2.5, Paft.1, Division 2 of Title 5 of the Government Code of the State ofCalifornia.

'Administrative Expenses" means the following actual or reasonably estimatedcosts directly related to the adminÍstration of CFD No. 2003-2: the costs of preparingthe annual budget to provide the required services; the costs of computing theSpecial Taxes and of preparing the annual Special Tax collection schedules; thecosts of collecting the SpecialTaxes;the costs of remitting the SpecialTaxes; costsof the City, including its legal counsel, in the discharge of the duties required of it

. under the Act, including publÍc înquiries regarding the Special Taxes, the costsassociated with the release of funds from any escrow account (to the extent not

the City or designee related to an appeal ofof the salaries and overhead of the Citystafle costs of the City or designee related to any. Administratîve Expenses shallalso include

amounts advanced by the City for any administrative purposes of CFD No. 2003-2.

"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map withan assigned Assessor's Parcel number.

"Assessor's Parcel Map" means an official map of the Assessor of the Countydesignating parcels by Assessor's Parcel number.

"Bonds" means any bonds or other indebtedness (as defined in the Act), whetherin one or more series, secured by the levy of SpecialTaxes within CFD No. 2003-2.

"CFD Administrator" means an official of the City, or designee thereof, responsiblefor determining the Special Tax Requirement and providing for the levy andcollection of Special Taxes.

"G¡ty" means the City Of San Jacinto, or its successors.

"Commercial" means parceìs zoned or used for commercial, reiail or industria]

purposes as shown on County tax records.

'"Council" means the City Council of the City Of San Jacinto, acting as thelegislative body of CFD No. 2Aæ-2-

"Count¡/" means the County of Riverside, California.

"Devetoped Property" means parcels with structures, buildings, or lmprovements, as shown on County records.

"Equivalent Dwelling Units" or "EDU's" means the factor for use in calculatilg theResidential Special Tãx, being the number of habitable units perAssessor's Parcelas shown on County tax records.

"Exempt Property" means all property located within the boundaries of CFD No.2003-2-which-is eÍempt from the Special Tax pursuant to Section E betow.

"FiscalYear" means the period starting on each July 1 and ending on the followingJune 30.

"lndenture" means the indentUre, fiscal agent agreement, trUst agreem,ent,resolution or other instrument pursuant to wh-ich Boñds are issued, as modified,amended and/or supplemented from time to time, and any instrument replacing orsupplementíng the same.

"Maximum Special Tax" rneans the maximum Special Tq4, dg!çrmined inaccordance wiih Section C that can be levied by the City in any Fiscal Year on anyAssessor's Parcel.

"Pu blic Property" means property withiby, irrevocably offered or dedicated to,public or private road right-of-way has bState of California, the County, or anyprovided that any propefty leased by a pto taxation under Section 53340.1 of theto its use,

"Residential" means all parcels zoned or used for residential purposes as shownon County tax records.

"special Tax" means the Special Tax to be levied in each Fiscal Year on eachAs'sessor's Parcel of Taxable Property to fund the Special Tax Requirement.

"square FooUFeet" means the total amount of developed structures, as shown onCounty records.

"Special Tax Requirement" means tdetermined by the City or designee asmaintenance and repair services req

B.

"Taxable Property" means ail property located within the boundaries of CFD No.2003-2 whích'is not exempt from the Special Tax pursuant to Section E below.

CLASSIFICATION OF PROPERW

Each FiscalYear, allTaxable Property within CFD No, 2003-2 shallbe classified asResidential or Exempt Property, añd shall be subject to the Special Tax inaccordance with the rate and method of appoÉionrnent determined pursuant toSections C and D below. Once property has been classified as Developed Property,the Special Tax applicable thereto may not decrease.

For purposes of determining the applicable Maximum Special Tq¡, all TaxableProfierty shall be assigned to-the ap¡ilicable classification setforth in Table 1 below.lf niore'than one ctaésification is applicable to a single Assessor's Parcel, theMaximum SpecialTaxforsuch Assessor's Parcelshall bethe sum of the MaximumSpecial Tax for each such classification.

With respect to Residential propeÉy, the number of EDUs shall be determined bythe number of actual residential unlts constructed or to be constructed on anyAssessor's Parcel.

MAXIMUM SPECIAL TAX RATE

The Maximum SpecialTax amounts are shown in the following table:

TABLE 1

Maximum Special TaxesCommunity Facilities District No. 2003-2

FiscalYear 2004-2A05

The Maximum Special Tax shall increase annually_. The amount of the increaseshall be 2o/o of the previous Fiscal Year's Maximum Special Tax. The increase shallcommence with the 2005/2006 FiscalYear.

METHOD OF APPORTIONMËNT OF THE SPEC¡AL TAX

Commencing with FiscalYear2004-2005 a lYearwithoutcessation, tñe City shall determine the a ollected fromTaxable Property in CFD No. 2003-2. The I Tax at.up.tothe Maxímurir Râte until the levy equals the subject to thelimitations specified in Section 53321(d) of the Act.

Notwithstanding the above, under no cîrcumstances wiltthe SpecialTaxes levied

c.

D.

L

F.

G.

aoainst anv Assessor's Parcel used ascõnsequen'ce of delinquency ordefault byor Pariels within CFD No. 2003-2 by mopursuantto Section 53321(d) of theAct, aNo.2003-2.

EXEMPT PARCELS

The exemPt as follows:PuUl rea Parcels within

Resi a.Pubtic entitY afterform al Tax Pursuant toSection 53317.3 of the Act.

TERM

The Maximum Special Tax shall be levied as necessary to satisfl the SpecialTaxRequirement without cessation.

MANNER OF COLLECTION

obligations.

PREPAYMENT OF SPECIAL TAX

Not applicable.

INTERPRËTATION S AND APPEALS

interpretation.

H.

City of San JacintoCFD No. 2003-2

RMA Supplement

**To be used in conjunction with the Rate and Method of Apportionment established. Youmust read actual Rate and Method prior to levying District**

Items of lmportance (items that are critical to calculatinq levv)o Checkfor any parcel changes.o District is built-out and thus no building permits need to be pulled.

. lnflator for the levy is 2o/o eachyear.

Annual Levv Amount. Calculate the Annual Costs for the District (Cost Recovery Process). Pay particular attention to District specific costs such as:

o Maintenance Expense_o Administrative Fees

Classification of Parcels. Process Rejects (i.e. import exceptions, parcel changes). Parcels within the District are classified as either Residential or Exempt property.. Exempt property is further classified as Public Property, non-developable property and

common area parcels within Residential complexes.o Once property is classified as Developed, Special Tax on it may not decrease.. Residential property is then assigned an EDU based on the number of residential units

constructed on such ProPertY.

Galculate Annual Lewo The Special Tax for Residential Property is $230/EDU starting with Fiscal Year 2004/05.o The Max tax will increase by 2o/o each Fiscal Year.. Taxable parcels will be levied at up the Max in order to meet the Special Tax Requirement.

Prepavment Methodoloqv

None

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LevyProperty ID Other TotalDBAccount ID


City of San Jacinto

Final Billing Detail Report for Fiscal Year 2017/18

$297.52 $0.00 $297.52436-350-001-8436-350-001

297.52 0.00 297.52436-350-002-9436-350-002

297.52 0.00 297.52436-350-003-0436-350-003

297.52 0.00 297.52436-350-004-1436-350-004

297.52 0.00 297.52436-350-005-2436-350-005

297.52 0.00 297.52436-350-006-3436-350-006

297.52 0.00 297.52436-350-007-4436-350-007

297.52 0.00 297.52436-350-008-5436-350-008

297.52 0.00 297.52436-350-009-6436-350-009

297.52 0.00 297.52436-350-010-6436-350-010

297.52 0.00 297.52436-350-011-7436-350-011

297.52 0.00 297.52436-350-012-8436-350-012

297.52 0.00 297.52436-350-013-9436-350-013

297.52 0.00 297.52436-350-014-0436-350-014

297.52 0.00 297.52436-350-015-1436-350-015

297.52 0.00 297.52436-350-016-2436-350-016

297.52 0.00 297.52436-350-017-3436-350-017

297.52 0.00 297.52436-350-018-4436-350-018

297.52 0.00 297.52436-350-019-5436-350-019

297.52 0.00 297.52436-350-020-5436-350-020

297.52 0.00 297.52436-350-021-6436-350-021

297.52 0.00 297.52436-350-022-7436-350-022

297.52 0.00 297.52436-350-023-8436-350-023

297.52 0.00 297.52436-350-024-9436-350-024

297.52 0.00 297.52436-350-025-0436-350-025

297.52 0.00 297.52436-350-026-1436-350-026

297.52 0.00 297.52436-350-027-2436-350-027

297.52 0.00 297.52436-350-028-3436-350-028

297.52 0.00 297.52436-350-029-4436-350-029

297.52 0.00 297.52436-350-030-4436-350-030

297.52 0.00 297.52436-350-031-5436-350-031

297.52 0.00 297.52436-350-032-6436-350-032

297.52 0.00 297.52436-350-033-7436-350-033

297.52 0.00 297.52436-350-034-8436-350-034

297.52 0.00 297.52436-350-035-9436-350-035

297.52 0.00 297.52436-350-036-0436-350-036

297.52 0.00 297.52436-350-037-1436-350-037

297.52 0.00 297.52436-350-038-2436-350-038

297.52 0.00 297.52436-350-039-3436-350-039

Page 1 of 2 09/29/2017 10:40:21AMCopyright © 2013 by NBS

LevyProperty ID Other TotalDBAccount ID


City of San Jacinto

Final Billing Detail Report for Fiscal Year 2017/18

297.52 0.00 297.52436-350-040-3436-350-040

297.52 0.00 297.52436-350-041-4436-350-041

297.52 0.00 297.52436-350-042-5436-350-042

297.52 0.00 297.52436-350-043-6436-350-043

297.52 0.00 297.52436-350-044-7436-350-044

297.52 0.00 297.52436-350-045-8436-350-045

297.52 0.00 297.52436-350-046-9436-350-046

297.52 0.00 297.52436-350-047-0436-350-047

297.52 0.00 297.52436-350-048-1436-350-048

297.52 0.00 297.52436-350-049-2436-350-049

297.52 0.00 297.52436-350-050-2436-350-050

297.52 0.00 297.52436-350-051-3436-350-051

297.52 0.00 297.52436-351-001-1436-351-001

297.52 0.00 297.52436-351-002-2436-351-002

297.52 0.00 297.52436-351-003-3436-351-003

297.52 0.00 297.52436-351-004-4436-351-004

297.52 0.00 297.52436-351-005-5436-351-005

297.52 0.00 297.52436-351-006-6436-351-006

297.52 0.00 297.52436-351-007-7436-351-007

297.52 0.00 297.52436-351-008-8436-351-008

297.52 0.00 297.52436-351-009-9436-351-009

297.52 0.00 297.52436-351-010-9436-351-010

297.52 0.00 297.52436-351-011-0436-351-011

297.52 0.00 297.52436-351-012-1436-351-012

297.52 0.00 297.52436-351-013-2436-351-013

297.52 0.00 297.52436-351-014-3436-351-014

297.52 0.00 297.52436-351-015-4436-351-015

$19,636.3266 Accounts $19,636.32$0.00

Page 2 of 2 09/29/2017 10:40:21AMCopyright © 2013 by NBS

Documents

Community Facilities District No. 2003-2 Fiscal Year 2017 ... · FINAL BILLING DETAIL REPORT FOR FISCAL YEAR 2017/18. ... Fiscal Year 2017/18 Annual Report 2 2. 2017/18 LEVY ... as