1. Refinancing the District’s Outstanding Special Tax Bonds October 2, 2014

2. Slide 2 With the current interest rate environment, the District can achieve savings from a refinance of these bonds through a direct placement. The District has 2 outstanding Special Tax Bonds 2005 Bonds Original par amount of $4,900,000 Balance of approx. $4,015,000 Final Maturity August 1, 2035 Current interest rate 4.81% 2007 Bonds Original par amount of $1,750,000 Balance of approx. $1,130,000 Final Maturity August 1, 2037 Current interest rate 5.625%

3. Slide 3 Refinance Summary

4. Key Refinance Components No prepayment penalty on 2005 bonds 2% prepayment penalty on 2007 bonds Could refinance both Series 2005 and 2007 bonds for savings through two direct placement financings Not a General Fund obligation Would remain special tax bondsNo leased asset required Maintain same term as 2005 bonds, shorten term for 2007 bond Slide 4

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7. Why Refinance? Special tax revenue in excess of current Special Tax Bond debt service is used to pay the outstanding COPs –Developer fee revenue is applied to the extent available, with the remaining amount paid from the General Fund Slide 7 A refinance of the Special Tax bonds would directly reduce the annual General Fund obligation on the COP debt repayment by approximately $40,000 per year

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9. Refinance Terms 3:1 Value to Lien Ratio Currently 5:1 Special tax collections of at least 110% of the total annual debt service Optional Redemption: On any date on or after August 1, 2019 at 101% Annual disclosure including: audit, special tax levies and delinquencies, and amount deposited in reserve fund Slide 9

10. Slide 10 Documents for Consideration

11. 2 Resolutions for Board Consideration: Approve Documents Related to the Restructuring of Each CFD Bond CFD #1 financing not to exceed $4.2 million CFD #2 financing not to exceed $1.275 million Interest rate lock at 3.75% Bond Purchase and Rate Lock Agreements with City National Bank Fiscal Agent Agreements with US BankEscrow Agreements with Wells Fargo Bank Slide 11

12. Next Steps Oct. 3 Dec. 2 Dec. 3 Slide 12 Execute Bond Purchase and Rate Lock Agreements Deposit funds in escrow Complete refinance of 2005 and 2007 CFD Bonds

13. Questions?