Eastern Municipal Water District
California

Action/Info Item
4268
Reviewed at Committee
Feb 11, 2020 4:00 PM

Fourth Quarter Report on Activities Related to Program Management of Community Facilities Districts and Assessment Districts

Information

Department:FinanceSponsors:
Category:Action/Info ItemMeeting Workflows:Board Admin Committee Workflow

Background

In the fourth quarter of Calendar Year 2019, Eastern Municipal Water District (EMWD) was responsible for the program administration of seven Assessment Districts (ADs), and 58 Community Facilities Districts (CFDs), which include 103 separate financing areas; i.e., Improvement Areas (IAs) or Tax Zones, as detailed in the Quarterly CFD Program Management Report (Exhibit A) and Quarterly Status Report (Exhibit C).

 

CFD Formation:

 

There are four CFD formations currently in progress.  The Resolution of Intention (ROI) for CFD No. 201779 (Eagle Crest) was approved during the November 20, 2019 board meeting, and the Public Hearing is scheduled for January 22, 2020.  The ROI for CFD No. 2019-83 is scheduled for the January 22, 2020 board meeting, and the ROI for CFD No. 2018-81 is scheduled for the April 15, 2020 board meeting.  CFD No. 2019 85 (Winchester Meadows) is not yet scheduled.  This project will include 228 lots and is located in unincorporated Riverside County, north of Domenigoni Parkway, west of Leon Road, and south of Olive Avenue.  In addition to the four formations in progress, the team continues to evaluate the applications to form CFD No. 2019-86 (Benton) and CFD No. 201987 (Copper Skye).  Additional information is needed from the developers regarding these projects before the Resolutions of Intention are scheduled for consideration by the Board.  Recent and upcoming CFD activity is listed in the Action Item Schedule (Exhibit B).  The location of each current item pertaining to EMWD CFDs is illustrated in the Location Maps (Exhibit F).

 

Bond Sale:

 

In the fourth quarter, the team completed new money bond issuances for CFD No. 2002-07 IA C (Pacific Mayfield) and CFD No. 2014-66 (Meadow Creek).  In addition, we have received petitions from Lennar Homes requesting new money bond issuances for CFD No. 2013-63 IA A (Belle Terre) and CFD No. 2016-74 IA C (Menifee Town Center).  The team is currently evaluating each of these bond sale requests.

 

Change Proceedings:

 

The team continues to evaluate petitions received from developers for change proceedings within CFD No. 2006-51 (Nuevo Meadows) and CFD No. 201362 (Eucalyptus Grove/McLaughlin South).  The Resolution of Intention for CFD No. 2013-63 IAs B, C, and D (Belle Terre) is anticipated to go before the Board on March 18, 2020.  All requested change proceedings will comply with the Special Funding Land Secured Guidelines as incorporated in the District’s Comprehensive Debt Policy.

 

Joint Community Facilities Agreements:

 

The Financing team completed one JCFA with the City of Menifee relating to their CFD No. 2019-1, and four additional JCFAs were in progress during the fourth quarter.  JCFAs with Menifee Union School District relating to MUSD CFD No. 2019-1 and MUSD CFD No. 2019-2 are scheduled to go before the Board on January 22, 2020.  Also, JCFAs with Moreno Valley Unified School District relating to MVUSD CFD No. 2019-2, and with the City of Perris relating to City of Perris CFD No. 2007-2 are anticipated to go before the Board on March 18, 2020.  The District reviews each JCFA against the Land Secured Guidelines to ensure it is within the two percent effective tax rate at formation.  Additionally, each agency forming a JCFA with EMWD must covenant that they will not place EMWD’s name on the property tax bills referencing a CFD where EMWD is not the lead agency.

 

Administration and Consulting:

 

As part of the Program Management, Webb Municipal Finance, LLC receives and answers telephone inquiries regarding the ADs and CFDs.  The quarterly Call Log (Exhibit D) details 41 calls received by the Webb team within the fourth quarter.  This is a decrease in calls of  18 percent over the same quarter last year.

 

The Delinquency Summary Report (Exhibit E), dated as of November 30, 2019, reflects an overall delinquency percentage of 0.59 percent; a decrease from 0.92 percent last quarter.  The delinquency rates in Assessment Districts 5, 7, and 8 have continued to trend down, with only AD 5’s delinquency rate remaining above five percent.  The Program Management team will continue to monitor the delinquency rates in these Assessment Districts.

 

The team has also been working on a number of required reports and disclosures during the fourth quarter.  The CDIAC reports required for each CFD and Marks-Roos Pooled Financing for Fiscal Year 2018-19 have been completed and filed.  The team also prepared and filed the required calendar year 2019 Senate Bill 165 report with the Board during the  December 11, 2019 board meeting.  In addition, the team completed the parcel tax reports for each CFD pursuant to AB 2109.  These reports are filed with the State Controller’s Report.  We have also started compiling the information necessary to develop the SB 1029 reports.  These reports are due January 31, 2020, and cover any debt issued between January 1, 2017 and June 30, 2019.  The District has three new eligible land secured debt issuances to be included in this year’s report:  CFD No. 2005-43 IA B, CFD No. 201467 IA A 2019 Series, and CFD No. 2013-64; all closed after July 1, 2018 and before June 30, 2019.  All disclosure reports due by December 31, 2019 have also been completed and filed.

 

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

None

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Financial Stability: Enhance and maintain EMWD’s strong financial position and credit quality by identifying and implementing specific opportunities to improve underlying financial metrics.

 

ENVIRONMENTAL IMPACT:

None

Recommendation

Receive and file

Meeting History

Feb 11, 2020 4:00 PM  Board Administrative Committee Regular Meeting
draft Draft
RESULT:REVIEWED AT COMMITTEE