HomeMy WebLinkAboutRAD No 15-1 Disclosure Report 2014-15
CITY OF BAKERSFIELD
LIMITED OBLIGATION REFUNDING BONDS
REASSESSMENT DISTRICT NO. 15-1
(CONSOLIDATED REASSESSMENT DISTRICT)
SERIES 2015A
$11,600,000
CITY OF BAKERSFIELD
LIMITED OBLIGATION REFUNDING BONDS
REASSESSMENT DISTRICT NO. 15-1
(CONSOLIDATED REASSESSMENT DISTRICT)
SERIES 2015B (FEDERALLY TAXABLE)
$1,680,000
ANNUAL CONTINUING DISCLOSURE REPORT
FISCAL YEAR ENDED JUNE 30, 2015
MARCH 21, 2016
LIMITED OBLIGATION BONDS, SERIES 2015A
MATURITY DATE CUSIP
9/2/2016 057510L23
9/2/2017 057510M71
9/2/2018 057510L49
9/2/2019 057510L56
9/2/2019 057510N54
9/2/2020 057510L64
9/2/2020 057510N62
9/2/2021 057510L72
9/2/2022 057510L80
9/2/2023 057510L98
9/2/2024 057510M22
9/2/2025 057510M30
9/2/2025 057510N88
9/2/2026 057510M48
9/2/2027 057510M55
LIMITED OBLIGATION BONDS, SERIES 2015B
MATURITY DATE CUSIP1
9/2/2016 057510M63
9/2/2017 057510M71
9/2/2018 057510M89
9/2/2019 057510M97
9/2/2020 057510N21
9/2/2021 057510N39
9/2/2022 057510N47
9/2/2025 057510N70
1 CUSIP® is a registered trademark of the American Bankers Association. CUSIP Service Bureau is managed by Standard & Poor’s, a
division of the McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for
the CUSIP services. The issuer takes on responsibility for the accuracy of such numbers.
City of Bakersfield
Alan Tandy, City Manager
Nelson K. Smith, Finance Director
Sarah Hunley, Accountant
1600 Truxtun Avenue
Bakersfield, CA 93301
T. 661.326.3740
Disclosure Consultant & Dissemination Agent
Koppel & Gruber Public Finance
Scott Koppel/Lyn Gruber
334 Via Vera Cruz, Suite 256
San Marcos, CA 92078
T. 760.510.0290
F. 760.510.0288
Bond Counsel
Orrick, Herrington & Sutcliffe, LLP
405 Howard Street
San Francisco, CA 94105
T. 415.773.5626
Disclosure Counsel
Goodwin Procter LLP
601 S. Figueroa, 41st Floor
Los Angeles, CA 90017
T. 213.426.2555
Fiscal Agent
U.S. Bank National Association
Corporate Trust Services
633 W. Fifth Street, 24th Floor
Los Angeles, CA 90071
T. 213.615.6005
Financial Advisor
Fieldman, Rolapp & Associates
19900 MacArthur Boulevard, Suite 1100
Irvine, CA 92612
T. 949.660.7307
F. 949.474.8773
TABLE OF CONTENTS
I. INTRODUCTION .................................................................................................... 1
II. ANNUAL REPORT REQUIREMENTS ......................................................................... 2
A. Audited Financial Statements: ........................................................................................ 2
B. Principal Outstanding: ........................................................................................................ 2
C. Reserve Fund Requirement:............................................................................................. 2
D. Estimated Value-to-Lien Ratios: ..................................................................................... 3
E. Delinquency History: ........................................................................................................... 3
F. Foreclosure Status: .............................................................................................................. 4
G. Reporting of Significant Events:. .................................................................................... 4
III. SIGNATURE ...................................................................................................... 5
Annual Disclosure Report, FY Ended June 30, 2015
City of Bakersfield
Limited Obligation Refunding Bonds
1
I. INTRODUCTION
This Annual Continuing Disclosure Report (“Annual Report”) is being prepared and filed pursuant to the
Continuing Disclosure Certificate (“Disclosure Certificate”) executed and delivered by the City of
Bakersfield (the “City”) in connection with the issuance and delivery of the Limited Obligation Refunding
Bonds Reassessment District No. 15-1 (Consolidated Reassessment District), Series 2015A (the “Series
2015A Bonds”), and the City of Bakersfield Limited Obligation Refunding Bonds, Reassessment District No.
15-1 (Consolidated Reassessment District), Series 2015B (Federally Taxable) (the “Series 2015B Bonds”
and, together with the Series 2015A Bonds, the “Bonds”).
The Bonds were issued pursuant to a resolution adopted by City Council on June 3, 2015, authorizing the
issuance of the Bonds, and a Fiscal Agent Agreement, dated as of July 1, 2015 (the “Fiscal Agent
Agreement”), by and between the City and U.S. Bank National Association, a national banking association,
as fiscal agent (the “Fiscal Agent”). The Bonds were issued on July 16, 2015 in the aggregate principal
amount of $13,280,000, the proceeds of which were used to pay costs related to the issuance of Bonds, fund
the Reserve Fund and refund outstanding obligations with respect to the following assessment districts
located within the City:
(i) Assessment District No. 04-1 (Countryside/The Homestead/Cherry Hill/Olive Park III);
(ii) Assessment District No. 04-2 (Brighton Park/Brighton Village/Stockdale at Allen
Commercial/Cherry Hill II);
(iii) Assessment District No. 04-3 (Solera/Rio Vista);
(iv) Assessment District No. 05-3 (Liberty II/Village Green/Tesoro-Encanto/Lin/Rider/Diamond
Ridge); and
(v) Assessment District No. 06-1 (Etcheverry/LinII/University Park)
Annual Disclosure Report, FY Ended June 30, 2015
City of Bakersfield
Limited Obligation Refunding Bonds
2
II. ANNUAL REPORT REQUIREMENTS
The following information is provided pursuant to Sections 4 and 5 of the Disclosure Certificate.
A. Audited Financial Statements: A copy of the City’s Comprehensive Annual Financial Report
(“CAFR”) for the fiscal year ending June 30, 2015 has been filed separately with the Electronic
Municipal Market Access (“EMMA”).
THE CITY OF BAKERSFIELD’S ANNUAL FINANCIAL STATEMENT ARE PROVIDED
SOLELY TO COMPLY WITH THE SECURITIES EXCHANGE COMMISSION STAFF’S
INTERPRETATION OF RULE 15c2-12. NO FUNDS OR ASSETS OF THE CITY OF
BAKERSFIELD (OTHERTHAN THE ASSESSMENTS LEVIED IN THE ASSESSMENT
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.
B. Principal Outstanding: The Bonds were issued in July 2015. The principal outstanding on the
Bonds as of December 31, 2015 is described as follows:
Table 1
PRINCIPAL OUTSTANDING
AS OF DECEMBER 31, 2015
ISSUE PRINCIPAL OUTSTANDING
Bonds $13,280,000
C. Reserve Fund Requirement: The Fiscal Agent Agreement defines the “Reserve Requirement,”
as of any date of calculation, as the least of (a) ten per cent (10%) of the original principal amount of
the Bonds, or (b) the maximum principal and interest payable on the Bonds in the current or any
future Bond Year, or (c) one hundred twenty-five per cent (125%) of the average amount of principal
and interest payable on the Bonds in the current and in all future Bond Years, all as determined by the
City under the Code and specified in writing to the Fiscal Agent; provided, that the requirement (or
any portion thereof) may be satisfied by the provision of one or more Reserve Facilities. Under this
definition, the Reserve Requirement will be reduced as a result of prepayments of Reassessments
pursuant to the Fiscal Agent Agreement.
Table 2
RESERVE REQUIREMENT/BALANCE
AS OF DECEMBER 31, 2015
DESCRIPTION AMOUNT
Reserve Fund Requirement $1,328,000
Reserve Fund Balance $1,328,000
Annual Disclosure Report, FY Ended June 30, 2015
City of Bakersfield
Limited Obligation Refunding Bonds
3
D. Estimated Value-to-Lien Ratios: Table 3 provides an update of Table 11 in the Official
Statement for the Bonds. The table sets forth the number of Reassessment Parcels, the aggregate
assessed values within the Reassessment District for Fiscal Year 2015/2016 as of December 31, 2015
for various ranges of estimated value-to-lien ratios of Parcels within the Reassessment District.
Table 3
VALUE-TO-LIEN RATIOS
VALUE-TO-LIEN
CATEGORY
NUMBER
OF
PARCELS
FISCAL YEAR
2015/2016
PROPERTY
VALUE(1)
SHARE OF
BONDS
SHARE OF
OVERLAPPING
LAND-
SECURED
BONDS(2)
TOTAL SHARE
OF BONDS AND
OVERLAPPING
LAND-SECURED
BONDS
2015/2016
ASSESSED
VALUE-
TO-LIEN
PERCENT
OF TOTAL
BONDS(3)
Less than 0.1:1 0 $0.00 $0.00 $0.00 $0.00 n/a0.00%
0.1:1 to 3.0:1 99(4) $1,365,225 $601,564.56 $535,584.93 $1,137,149.49 1.20:13.47%
3.0:1 to 5.0:1 2(5) $53,097 $6,907.42 $8,486.12 $15,393.54 3.45:10.05%
5.0:1 to 10.0:1 60 $6,193,298 $387,502.00 $444,385.97 $831,887.97 7.44:12.54%
10.0:1 to 15.0:1 36 $8,923,591 $420,332.53 $242,190.25 $662,522.78 13.47:12.02%
15.0:1 to 25.0:1 1,125 $261,784,760 $3,196,404.90 $8,771,758.75 $11,968,163.65 21.87:136.51%
More than 25.0:1 3,406 $864,558,398 $8,667,288.59 $9,501,321.39 $18,168,609.98 47.59:155.42%
TOTAL/AVG. 4,728 $1,142,878,369$13,280,000.00$19,503,727.41 $32,783,727.41 34.86:1100.00%
1. Based on the Kern County fiscal year 2015/2016 Secured Roll.
2.Overlapping land secured bonds consist of all RNR Financing Authority CFD No. 92-1 bonds (issued through October 22, 2015) allocated based on the
fiscal year 2015/2016 Tax Roll.
3. Based on share of Total Reassessment and Overlapping bonds.
Source: City of Bakersfield and the County of Kern Secured Roll
5. Includes 1 parcels each owned by Lennar Homes and by Castle & Cooke California Inc. both with an assessed value that does not include a structure
value.
4. Includes 34 parcels owned by Lennar Homes and 65 parcels owned by Castle & Cooke California Inc. all with an assessed value that does not include a
structure value.
E. Delinquency History: Table 4 provides an update of Table 18 in the Official Statement for the
Bonds. The table sets forth the Assessment delinquency history for the Assessment parcels for the
past six (6) Fiscal Years as of December 31, 2015. There are currently no parcels with aggregate
delinquencies over $2,000.00.
Annual Disclosure Report, FY Ended June 30, 2015
City of Bakersfield
Limited Obligation Refunding Bonds
4
Table 4
COMBINED DELINQUENCIES AND COLLECTIONS
(AD 04-1, AD 04-2, AD 04-3, AD 05-3, AND AD 06-1)
AS OF DECEMBER 31, 2015
FISCAL
YEAR
AMOUNT OF
ASSESSMENT
LEVY
AMOUNT
DELINQUENT AS
OF JUNE 30
PERCENTAGE
OF LEVY
DELINQUENT
COLLECTIONS
AS OF DEC 31,
2015
AMOUNT
DELINQUENT
AS OF DEC
31, 2015
NO. OF
PARCELS
DELINQUENT
AS OF DEC
31, 2015
2009-10 $1,982,524.97 $33,761.371.70% $1,982,219.37 $305.601
2010-11 $1,997,497.21 $23,752.141.19% $1,996,164.43 $1,332.783
2011-12 $1,884,137.23 $34,846.891.85% $1,883,437.93 $699.303
2012-13 $1,873,461.22 $15,413.480.82% $1,872,770.29 $690.933
2013-14 $1,833,522.14 $13,517.640.74% $1,832,318.31 $1,203.836
2014-15 $1,838,667.87 $6,805.570.37% $1,834,897.03 $3,770.8417
F. Foreclosure Status: As of the date of this Annual Report, there are no parcels that meet the
delinquency thresholds set forth in the Official Statement and no foreclosure proceedings have
been initiated by the City.
G. Reporting of Significant Events: There are no significant events to report for fiscal year
ended June 30, 2015.
Annual Disclosure Report, FY Ended June 30, 2015
City of Bakersfield
Limited Obligation Refunding Bonds
5
III. SIGNATURE
Information set forth herein includes information obtained by other sources, which are believed to be accurate
and reliable, but it is not guaranteed as to the accuracy or completeness of any such information. Any
statement contained in this Annual Report involving matters of opinion, estimates and/or projections, whether
or not so expressly stated, are set forth as such and are not to be construed as representations of fact. The
information and expressions of opinion contained in this Annual Report are provided as of the respective
dates specified herein and are subject to change without notice, and the delivery and filing of this Annual
Report shall not, under any circumstances, create any implication that there has been no change in the affairs
of the Authority or the City or any other matters described herein since the date as of which such information
is provided.
City of Bakersfield
_______________________________________________
Nelson Smith
Finance Director, City of Bakersfield
March ___, 2016