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Home My WebLink AboutRAD No. 15-1 Disclosure Report 2016-17 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, 2017 LIMITED OBLIGATION BONDS, SERIES 2015A MATURITY DATE CUSIP 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 9/2/2018 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 Robert Zajack, Accountant 1600 Truxtun Avenue Bakersfield, CA 93301 T. 661.326.3742 F. 661.852.2040 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 Nixon Peabody LLP 300 South Grand Ave, Suite 4100 Los Angeles, CA 90071 T. 213.629.6000 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, 2017 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/Lin II/University Park) Annual Disclosure Report, FY Ended June 30, 2017 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, 2017 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, 2017 is described as follows: Table 1 PRINCIPAL OUTSTANDING AS OF DECEMBER 31, 2017 ISSUE PRINCIPAL OUTSTANDING Limited Obligation Refunding Bonds Reassessment District No. 15-1, Series 2015A and Series 2015B (Federally Taxable) $11,150,000 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, 2017 DESCRIPTION AMOUNT Reserve Fund Requirement $1,328,000.00 Reserve Fund Balance $1,328,000.00 Reserve Fund Surplus/(Shortfall) $0.00 Annual Disclosure Report, FY Ended June 30, 2017 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 2017/2018 as of December 31, 2017 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 2017/2018 PROPERTY VALUE(1) SHARE OF BONDS SHARE OF OVERLAPPING LAND- SECURED BONDS(2) TOTAL SHARE OF BONDS AND OVERLAPPING LAND-SECURED BONDS 2017/2018 ASSESSED VALUE- TO-LIEN PERCENT OF TOTAL BONDS(3) Less than 0.1:1 0 $0 $0.00 $0.00 $0.00 n/a 0.00% 0.1:1 to 3.0:1 3(4) $16,335 $9,461.10 $14,983.75 $24,444.85 0.67:1 0.08% 3.01:1 to 5.0:1 0 $0 $0.00 $0.00 $0.00 n/a 0.00% 5.01:1 to 10.0:1 7 $578,791 $15,640.30 $58,476.30 $74,116.60 7.81:1 0.23% 10.01:1 to 15.0:1 16 $3,674,948 $188,004.83 $106,768.58 $294,773.41 12.47:1 0.91% 15.01:1 to 25.0:1 866 $207,667,437 $2,205,419.29 $7,060,202.91 $9,265,622.20 22.41:1 28.63% More than 25.01:1 3,922 $1,075,912,789 $8,731,471.26 $13,974,383.36 $22,705,854.62 47.38:1 70.16% TOTAL/AVG. 4,814 $1,287,850,300 $11,149,996.78 $21,214,814.90 $32,364,811.68 39.79:1 100.00% 1. Based on the Kern County fiscal year 2017/2018 Secured Roll. 2. Overlapping land secured bonds consist of all RNR Financing Authority CFD No. 92-1 bonds (issued through February 16, 2017) allocated based on the fiscal year 2017/2018 Tax Roll. 3. Based on share of Total Reassessment of Overlapping Bonds. 4. Includes three (3) parcels owned by Castle & Cooke California Inc. all with an assessed value that does not include a structure value. Source: City of Bakersfield and the County of Kern Secured Roll 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, 2017. There are currently no parcels with aggregate delinquencies over $2,000.00. Annual Disclosure Report, FY Ended June 30, 2017 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, 2017 FISCAL YEAR AMOUNT OF ASSESSMENT LEVY AMOUNT DELINQUENT AS OF JUNE 30 PERCENTAGE OF LEVY DELINQUENT COLLECTIONS AS OF DEC 31, 2017 AMOUNT DELINQUENT AS OF DEC 31, 2017 NO. OF PARCELS DELINQUENT AS OF DEC 31, 2017 2011-12 $1,884,137.23 $34,846.89 1.85% $1,883,663.13 $474.10 1 2012-13 $1,873,461.22 $15,413.48 0.82% $1,873,461.22 $0.00 0 2013-14 $1,833,522.14 $13,517.64 0.74% $1,833,377.32 $144.82 1 2014-15 $1,838,667.87 $6,805.57 0.37% $1,837,914.90 $752.97 4 2015-16 $1,649,905.98 $4,943.98 0.30% $1,648,854.26 $1,051.72 3 2016-17 $1,612,157.54 $5,522.48 0.34% $1,609,817.82 $2,339.72 8 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, 2017.