1. 2017 Plan of Finance: Liquidity, Standby & New Money
Charles Turner
February 2, 2017

2. Existing Variable Rate Portfolio Details

3. Summary of Liquidity / Direct Purchase Bids
LIQUIDITY BID SUMMARY- ALL IN COST
Seven liquidity bids
Preferred bid:
Sumitomo Mitsui Banking Corp (SMBC): 5-Year: 39 bps
$188m of capacity
DIRECT PURCHASE SUMMARY- ALL IN COST
Three direct purchase bids
70% of 1M LIBOR Base Index
Preferred bids:
3-Year: Wells Fargo
4-Year: Bank of America

4. Recommended Actions: Variable Rate Portfolio
2013A SIFMA Notes
$54.6m
Senior
2012A SIFMA Notes
$50m
Senior
2014A VRDOs
$48.6m Subordinate
2014B VRDOs
$45.2m
Subordinate
2014C
VRDOs
$54.2m
Subordinate
2008C COPs
$40.7m
Senior
2017A Refunding
$54.6m
Subordinate
Refund to working lien as VRDOs with 5-year Sumitomo Liquidity (Standby Bond Purchase Agreement)
New disclosure and remarketing agreement needed.
All-In Cost: 1.12%
Savings: (0.20%)
2017B
Refunding
$50m
Subordinate
Refund to working lien as VRDOs with 5-year Sumitomo Liquidity
(Standby Bond Purchase Agreement)
New disclosure and remarketing agreement needed.
All-In Cost: 1.12%
Savings: (0.20%)
2017E Refunding
$148.0m
Subordinate
3-Year LIBOR-based Direct Purchase with Wells Fargo Bank No disclosure document needed.
All-In Cost: 0.85%
Savings: 0.17%
2017F Refunding
$40.7m
Subordinate
4-Year LIBOR-based Direct Purchase with Bank of America No disclosure document needed.
All-In Cost: 1.07%
Savings: 0.07%
All-in costs assume SIFMA at 66 bps; savings relative to current weighted average all-in costs

5. Fixed Rate Debt Refunding
2007A COP Refunding Opportunity
$20 million outstanding
Potential $1.8 million, or 9 percent net present value savings
Migrate to subordinate lien
After this transaction, only $18 million, or 2 percent, of long-term debt remains on senior lien

6. New Money Debt Needs SRF Program
Resource challenged
Difficulty processing loan applications in timeframe needed
Grant funds are running out
Loan components require longer review and processing time
Pending SRF Applications with both Grant and Loan Component
Temecula RWRF 23MGD Expansion
Temecula Recycled Water Pipeline
La Piedra Recycled Water Pipeline
Cottonwood Recycled Water Pipeline
Alessandro Recycled Water Pond
Recommend dropping loan component from all pending applications, except the Temecula RWRP 23MGD Expansion, and issuing up to $50m in New Money Debt as 2017D Bonds (evaluating fixed v. variable)

7. Recommended Financing Team Assignments
Series
Underwriter/ Remarketing Agent
Bond Counsel
Financial Advisor
Trustee
2017A Refunding
U.S. Bank
Stradling Yocca Carlson & Rauth
PFM
2017B Refunding
Citi
2017C Refunding (Fixed)
Morgan Stanley
2017D New Money
BofAML
2017E Refunding
N/A – 3-Year Direct Purchase with Wells Fargo
2017F Refunding
N/A – 4-Year Direct Purchase with Bank of America

8. Key Next Steps February March April May
Remarket 2013A SIFMA Notes (no Board action required)
March
Rating Agency meetings
April
Document Approvals for 2017A, 2017B and 2017C Refundings
Document Approvals for 2017D New Money Issuance
Price 2017A, 2017B and 2017C
May
Document Approvals for 2017E and 2017F Direct Purchase Agreements
Price 2017D

9. Contact Information
Charles Turner
Director of Finance
(951) Ext. 4363