CITY OF EL CENTRO. Community Facilities District No (Legacy Ranch) $1,220,000 Special Tax Bonds, Series 2008

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1 CITY OF EL CENTRO Community Facilities District No (Legacy Ranch) $1,220,000 Special Tax Bonds, Series 2008 IMPERIAL COUNTY, CALIFORNIA DATED: October 8, 2008 CUSIP + : /2015 ANNUAL CONTINUING DISCLOSURE INFORMATION STATEMENT AS OF JANUARY 5, Via Industria, Suite 200 Temecula, California T F Copyright, American Bankers Association. CUSIP data is provided by Standard and Poor s, CUSIP Service Bureau, 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 service. The issuer takes no responsibility for the accuracy of such number.

2 City of El Centro Community Facilities District DISTRICT PARTICIPANTS AGENCY Leticia Salcido Finance Director 1275 Main Street El Centro, CA Phone (760) BOND COUNSEL Daniel W. Kim Esq. Senior Associate Fulbright & Jaworski, L.L.P. 555 S. Flower Street, 41st Floor Los Angeles, CA Phone (213) DISTRICT ADMINISTRATOR, DISCLOSURE CONSULTANT AND DISSEMINATION AGENT Willdan Financial Services* Via Industria, Suite 200 Temecula, CA Phone (951) Fax (951) FISCAL AGENT U.S. Bank National Association Los Angeles, CA UNDERWRITER Estrada Hinojosa & Company, Inc. San Diego, CA * In its role as Disclosure Consultant, Willdan Financial Services has not passed upon the accuracy, completeness or fairness of the statements contained herein.

3 I. INTRODUCTION Pursuant to an Official Statement dated September 30, 2008, the City of El Centro, California ( City ) issued $1,220,000 Community Facilities District No (Legacy Ranch) Special Tax Bonds, Series 2008 ( Bonds ). Community Facilities District No (Legacy Ranch) ( District ) issued Bonds to: (i) finance certain capital facilities fees relating to authorized public improvements (ii) fund a reserve account for the Bonds, (iii) pay the costs of issuance of the Bonds. The City of El Centro is located in the County of Imperial approximately 120 miles east of the City of San Diego and approximately 70 miles west of Yuma, Arizona. The City straddles Interstate 8 which is the major interstate highway linking southern California to its eastern neighbors. The City encompasses approximately 11 square miles near the City of Mexicali, Mexico on the United States-Mexico border. The District consists of approximately gross acres, approximately 26 acres of which are slated for residential development and the remaining acres for 2 retention basins, a neighborhood park, perimeter landscaping and in-tract streets. At buildout, it is anticipated that the District will contain 143 detached residential dwelling units in a community known as Legacy Ranch. The Bonds are limited obligations of the District. The District Bonds are secured by special taxes ( Special Taxes ) levied on properties in the District. The Bonds are not a debt or liability of the City, the State of California, or any of its political subdivisions and neither the City, the State of California, nor any of its political subdivisions is liable. The Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limit or restriction. This Annual Continuing Disclosure Information Statement is being provided pursuant to a covenant made by the City for the benefit of the holders of the Bonds and includes the information specified in a Continuing Disclosure Agreement. For further information and a more complete description of the City, the Assessment District and the Bonds, reference is made to the Official Statement. The information set forth herein has been furnished by the City and by sources, which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness. Statements contained in this Annual Continuing Disclosure Information Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to change without notice and the delivery of this Annual Continuing Disclosure Information Statement will not, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties described herein. Page 1 of 4

4 THIS REPORT IS OF A FACTUAL NATURE WITHOUT SUBJECTIVE ASSUMPTIONS, OPINIONS, OR VIEWS AND MAY NOT BE RELIED UPON AS ADVICE OR RECOMMENDATION TO PURCHASE OR SELL ANY PRODUCT OR UTILIZE ANY PARTICULAR STRATEGY RELATING TO THE ISSUANCE OF MUNICIPAL SECURITIES OR PURCHASE OF FINANCIAL PRODUCTS. WILLDAN FINANCIAL SERVICES AND ITS EMPLOYEES (COLLECTIVELY "WILLDAN") DO NOT RECOMMEND ANY ACTIONS AND ARE NOT ACTING AS AN ADVISOR TO ANY MUNICIPAL ENTITY, BOARD, OFFICER, AGENT, EMPLOYEE OR OBLIGATED PERSON PURSUANT TO SECTION 15B OF THE EXCHANGE ACT. PRIOR TO ACTING ON ANY INFORMATION OR MATERIAL CONTAINED IN THIS COMMUNICATION, YOU SHOULD DISCUSS IT WITH APPROPRIATE INTERNAL OR EXTERNAL ADVISORS AND EXPERTS AND ONLY RELY UPON THEIR ADVICE. II. FINANCIAL INFORMATION THE CITY S ANNUAL FINANCIAL STATEMENT IS PROVIDED SOLELY TO COMPLY WITH THE SECURITIES EXCHANGE COMMISSION STAFF S INTERPRETATION OF RULE 15C2-12. NO FUNDS OR ASSETS OF THE CITY 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. The audited financial statements for the City for the fiscal year ended June 30, 2015 will be separately filed with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access website ( EMMA ) and are hereby incorporated by reference into this Annual Continuing Disclosure Information Statement. Neither the audited nor the unaudited financial statements were available at the time of this report. The audited financial statements for the City for the fiscal year ended June 30, 2015 are expected to be filed by February Page 2 of 4

5 III. BOND INFORMATION A. PRINCIPAL OUTSTANDING Bond Issue As of December 31, 2015 Community Facilities District No (Legacy Ranch) Special Tax Bonds Series 2008 $1,210,000 B. FUND BALANCES Fund Balances As of December 31, 2015** Reserve Fund $117,170 Reserve Requirement* $117,150 * Reserve Requirement is calculated as an amount not to exceed the least of (a) maximum annual debt service on the outstanding bonds, (b) ten percent (10%) of the proceeds of the bonds, or (c) one hundred twenty-five percent (125%) of the average annual debt service on the outstanding bonds. * The Market Value of the Reserve Fund fluctuates due to gain or loss on investment. As of referenced date, the Reserve Fund is above the Reserve Requirement. ** Fund balances are from U.S. Bank National Association, as Fiscal Agent. IV. OPERATING INFORMATION A. ASSESSED VALUES The following table sets forth the total assessed values and development status of parcels subject to Special Tax in the District. 2015/16 Assessed Value 2015/16 Percent of Development Number Special Status of Parcels Land Structure Total Special Tax Tax Developed 143 $6,880,075 $30,943,311 $37,823,386 $95, % Undeveloped % Total 143 $6,880,075 $30,943,311 $37,823,386 $95, % Source: Imperial County 2015/16 Secured Property Roll, as compiled by Willdan Financial Services. B. DELINQUENCY SUMMARY As of the date of this report, based on the information provided by Imperial County Tax Collector s Office, there are no known delinquencies for this District. In the Fiscal Agent Agreement, the District has covenanted for the benefit of the Owners of the Bonds that it will determine or cause to be determined, no later than March 1 and August 1 of each year, whether or not any owner of the property within the District are delinquent in the payment of Special Taxes and, if Page 3 of 4

6 such delinquencies exist, the District will order and cause to be commenced no later than April 15 (with respect to the March 1 determination date) or September 1 (with respect to the August 1 determination date), and thereafter diligently prosecute, an action in the superior court to foreclose the lien of any Special Taxes or installment thereof not paid when due, provided, however, that the District shall not be required to order the commencement of foreclosure proceedings if (i) the total Special Tax delinquency in the District for such Fiscal Year is less than five percent (5%) of the total Special Tax levied in such Fiscal Year, (ii) the amount in the Reserve Account is equal to the Reserve Requirement, and (iii) the District shall have established from any source of lawfully available funds (other than Special Taxes) an escrow fund to provide for the payment of principal of and interest on the Bonds. Notwithstanding the foregoing, if the District determines that any single property owner in the District is delinquent in excess of ten thousand dollars ($10,000) in the payment of the Special Tax, then it will diligently institute, prosecute and pursue foreclosure proceedings against such property owner. There are no known delinquencies for this District therefore; Willdan Financial Services has not performed any Delinquency Monitoring Actions during Fiscal Year 2014/15. There are currently no parcels in foreclosure within the District. C. PREPAYMENTS OF SPECIAL TAXES/CERTIFICATES OF OCCUPANCY As of the date of this report, no prepayments have occurred for this District. 143 Certificates of occupancy have been issued. D. PRINCIPAL PROPERTY OWNERS At the time of this Report there are no property owners responsible for more than five (5%) of the Special Tax as of June 30, E. DEVELOPMENT CONDITIONS As of the date of this Report, this District is at full build-out. F. STATUS OF IMPROVEMENTS No building permits were issued in the prior fiscal year. All proposed 143 singlefamily detached residential homes have been completed and closed escrow to individual homeowners. Page 4 of 4