Rod Gunn Associates, Inc
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NEW ISSUE-BOOK ENTRY ONLY NOT RATED (See "CONCLUDING INFORMATION - No Ratings on the Bonds" herein). In the opinion of Aleshire & Wynder, LLP, Bond Counsel, based on existing statutes, regulations, rulings and court decisions and assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes and is exemptfrom State of Californiapersonal income taxes. In the opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federalindividual or corporate alternative minimum taxes, although Bond Counsel observes that it is included in acijusted current earnings in calculating corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding other federal or State tax consequences relating to the ownership or disposition of, or the accrual or receiptof interest on, the Bonds. See "LEGAL MATTERS- TaxExemption" herein. COUNTY OF RIVERSIDE STATE OF CALIFORNIA $3,060,000 COMMUNITY FACILITIES DISTRICT NO. 2003-1 (CHAPARRAL RIDGE) OF THE CITY OF PERRIS SPECIAL TAX REVENUE BONDS, 2003 SERIES A Dated: Date of Delivery Due: September 1, as shown below The cover page contains certain informationfor quick reference only. It is not a summary of the issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the Bonds involves risks. See "BONDOWNERS' RISKS" herein for a discussion of special risk factorsthat should be considered in evaluating the investment quality of the Bonds. Interest on the Bonds is payable on March 1, 2004, and semiannually thereafter on September 1 and March 1 of each year until maturity or earlier redemption (see "THE BONDS - General Provisions" and "THE BONDS - Redemption" herein). The informationcontained within this OfficialStatement was prepared under the direction of the District by the following firmserving as Financing Consultant to the District. Rod Gunn Associates, Inc. MATURITYSCHEDULE $180,000 5.250% Term Bond due September 1, 2014, Price 100.000% $2,880,000 6.250% Term Bond due September 1, 2033, Price 98.327% The Bonds are issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California). Repayment of the Bonds will be from the Special Taxes (as definedherein) to be levied within the Community Facilities District No. 2003-1 (Chaparral Ridge) of the City of Perris, as described herein (see "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein). It is anticipated that the Bonds, in book-entry form, will be available fordelivery through the facilities of The Depository Trust Company on or about July 24, 2003 (see "THE BONDS - General Provisions - Book-Entry Only System" herein). The date of the OfficialStatement is July 15, 2003. COMMUNITY FACILITIES DISTRICT NO. 2003-1 (CHAPARRAL RIDGE) OF THE CITY OF PERRIS PERRIS,CITY CALIFORNIA COUNCIL Daryl Busch, Mayor John Motte, Mayor Pro Tern Al Landers, Council Member Rita Rogers, Council Member Raul (Mark) Yarbrough, Council Member CITY STAFF Hector Apodaca, CityManager Connie Rogers-Elmore, Finance Director Olivia Guiterrez, Planning Director Habib Motlagh, CityEngineer Eric Dunn, CityAttorney Margaret Rey, CityClerk PROFESSIONAL SERVICES Bond Counsel and City Attorney Aleshire & Wynder LLP Irvine, California Disclosure Counsel Fulbright & Jaworski L.L.P. Los Angeles, California Financing Consultant Rod GunnAssoci ates, Inc. Huntington Beach, California Special Tax Consultant MuniFinancial Temecula, California Appraiser Steve White, MAI Fullerton, California Fiscal Agent Wells Fargo Bank, National Association Los Angeles, California Underwriter 0' Connor Southwest Securities Newport Beach, California Underwriter's Counsel Jones Hall A Professional Law Corporation San Francisco, California FOR ADDITIONAL INFORMATION Hector Apodaca, City of Perris, California (909) 943-6100 Rod GunnAssociates, Inc. (714) 841-3993 O'Connor Southwest Securities (949) 717-2000 ii TABLE OF CONTENTS INTRODUCTORYSTATEMENT .................. .......... 1 SUMMARYOF THELEGAL DOCUMENTS...... 36 The District ................................................................ 1 THE FISCALAGENT AGREEMENT.................. 36 Security and Sources of Repayment .......................... 2 Funds and Accounts; Flow of Funds ....................... 36 Purpose...................................................................... 2 Certain Covenants of the District ............................40 The Bonds .................................................................. 2 Investments;Disposition of Investment Legal Matters ............................................................. 3 Proceeds ................................................................ 43 Professional Services ................................................. 3 Events of Defaultand Remedies of Bond Offeringof the Bonds ............................................... .4 Owners.................................................................. 43 Forward Looking Statements .................................... .4 The Fiscal Agent ...................................................... 44 Information Concerningthis Official Statement ........ 5 Modificationor Amendment of the Fiscal Agent SELECTED ESSENTIALFACTS ............................ 7 Agreement ............................................................44 Miscellaneous ..........................................................45 THEBONDS ............................................................... 8 General Provisions ..................................................... 8 FINANCIALINFORMATION ............................... 47 Authorization........................................................... 11 DistrictAccounting Records and Financial Estimated Sources and Uses of Funds ..................... 11 Statements .............................................................4 7 Investmentof Funds ................................................ 12 Budgetary Process and Ad.ministration................... .47 Redemption .............................................................. 12 Rate and Method of Apportionment ........................48 Delinquencies andForeclosure Actions ................... 51 SOURCES OF PAYMENTFOR THEBONDS ..... 15 Repayment of the Bonds .......................................... 15 LEGALMATTERS .................................................. 52 Enforceability of Remedies .....................................52 BONDOWNERS' RISKS......................................... 17 Approval of Legal Proceedings ............................... 52 General..................................................................... 17 TaxExemption ......................................................... 52 The Bonds ................................................................ 17 Absence of Litigation .............................................. 53 THECITY ................................................................. 27 CONCLUDING INFORMATION.......................... 54 Government Organization ........................................ 27 No Ratings on the Bonds ......................................... 54 THEDISTRICT ....................................................... 28 Unden.vriting............................................................ 54 Boundariesof the CommunityFaci lities District..... 28 Experts ..................................................................... 54 The Developer ......................................................... 28 TheFinancing Consultant ........................................ 54 GeneralDescription ................................................. 30 Additional Information............................................ 5 5 The Development Plan ............................................ 30 References ...............................................................55 The Financing Plan.................................................. 31 Execution .................................................................55 Facilities Cost Estimates .......................................... 32 DEFINITIONSOF CERTAINTERMS ............... A-1 The Appraisal. .......................................................... 32 CITYOF PERRIS INFORMATION DEBT STRUCTURE........ ........................................ 33 STATEMENT....................................................... B-1 Outstanding Indebtedness....................................... .3 3 No Additional Obligations ....................................... 3 3 APPRAISALREPORT .......................................... C-1 Directand Overlapping Debt ...................................34 RATEAND MEfflODOF Scheduled Debt Serviceon the Bonds ..................... 35 APPORTIONMENT..................... ...................... 0-1 FORMOF CONTINUINGDISCLOSURE AGREEMENTS................................................... E-1 FORM OF BOND COUNSEL OPINION............. F-1 iii Perris Vicinity Map i � + i-• :: 0 l� � To San Diego 06101 OFF ICIAL STATEMENT $3,060,000 COMMUNITY FACILITIESDISTRICT NO. 2003-1 (CHAPARRALRI DGE) OF THE CITY OF PERRIS SPECIAL TAX REVENUE BONDS, 2003 SERIESA This Official Statement which includes the cover page and appendices (the "Official Statement") is provided to furnish certain information concerning thesale of Community Facilities District No. 2003-1 (Chaparral Ridge) of the City of Perris Special Tax Revenue Bonds,