Calexico_City_Council_Agenda_-_June_1_2022_Item_No._12 — Calexico City Council, June 1, 2022

AGENDA
ITEM
12 AGENDA STAFF REPORT

CALEXICO
DATE: June 1, 2022
Mayor and City Council
PREPARED BY: Sandra L. Fonseca, Interim Finance Director St SUBJECT: Approval of a Resolution of the City Council of the City of Calexico, California, Determining and Levying the Special Tax in Community Facilities District No. 2005-1 (Hearthstone)
===:

Recommendation:

That the City Council of the City of Calexico acting in its capacity as the legislative body for the City of Calexico Community Facilities District No. 2005-1 (Hearthstone) Adopt Resolution authorizing the levy of special taxes within Improvement Area No. 1 of such district for Fiscal Year 2022-23.

Background:

Community Facilities District (CFD No. 2005-1 Hearthstone) was formed in 2005 as a legally constituted government entity established under the Mello-Roos Community Facilities Act of 1982. The Act provides an alternative method for the financing of certain facilities and services. Specifically, this CFD is authorized to levy an annual special tax to pay, in whole or in part, the approved costs of the following:
• The administrative costs and other incidental expenses of the District; • The interest scheduled for collection on the outstanding bonded indebtedness related to the District;
• The principal scheduled for collection on the outstanding term bonds related to the applicable Improvement Area;
• The sinking payments scheduled for collection on the outstanding term AGENDA bonds relating to the applicable Improvement Area; ITEM • Amounts, if any, needed to replenish the applicable Reserve Account of the Bond fund to the level of the Reserve Requirement; • Amounts, if any, required to bring the amount on deposit in the Rebate 12 Fund to the required level;
• Payments of Authorized Services.

The authorized services are funded through the annual levy and collection of special taxes from all the property subject to the tax and located within the Improvement Area No. 1 of the district.

Exhibit "A" in the attached report shows that residential parcels will be liable for an annual payment of a minimum of $1,849 per dwelling unit for facilities and $608.04 for services. The 2022-23 facilities payment is unchanged from the prior 2021-22 fiscal year levy. The services payment has increased by 5% from $574.92 in the prior year.

Discussion & Analysis:

The special levy recommended in the report is the maximum allowed under the current ordinance.

Fiscal Impact:

The anticipated Special Tax for Fiscal Year 2022-23 is $1,038,545.35 for facilities and $145,929.60 for services.

Coordinated with:

Koppel & Grubber Public Finance.

Attachment:

1. Resolution No. 2022- . of the City Council of the City of Calexico, California, Determining and Levying the Special Tax in Community Facilities District No. 2005-1 (Hearthstone).

2. Exhibit "A" - Community Facilities District No. 2005-1 (Hearthstone), Special Tax Rates.

3. City of Calexico - Community Facilities District No. 2005-1 (Hearthstone), FY 2022-23 Annual Report
2 RESOLUTION 2022-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALEXICO,

CALIFORNIA, DETERMINING AND LEVYING THE SPECIAL TAX
IN COMMUNITY FACILITIES DISTRICT NO. 2005-1
WHEREAS, The City Council (the "City Council") of the City of Calexico is the legislative body of Community Facilities District No. 2005-1 (Hearthstone) (the "District"), which District was established pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part I, Division 2, Title 5 of the government code of the State of California (the "Act);
WHEREAS, this City Council, by Ordinance No. 1024 as authorized by Section 53340 of the Government Code of the State of California (the "Ordinance"), has authorized the levy of a special tax to pay for costs and expenses related to said District, and this City Council is desirous to establish the specific rate of the special tax for the District to be collected for the next fiscal year.

NOW THEREFORE BE IT RESOLVED by the City Council of the City of Calexico as follows:

Section 1: the preceding recitals are true and correct.

Section 2: that the City Council does, by the passage of this resolution authorize the levy of special taxes at the rates set forth in Exhibit "A" attached hereto, referenced and so incorporated
Section 3: The rate determined and as set forth above does not exceed the amount as previously authorized by the Ordinance and is not in excess of that amount previously approved by the qualified electors of the District, and is exempt from Proposition 218, Section XIIID of the California State Constitution. After adoption of this Resolution, the City Manager or his/her designee, may make any necessary modification to these special taxes to correct errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amount to be charged to any category of parcels; provided, however, that any such modification shall not result in an increase in the tax applicable to any category of parcels.

Section 4: The proceeds of the Special Tax shall be used to pay, in whole or in part, the approved costs of the following:

A. The Administrative costs and other incidental expenses of the District.

B. The interest scheduled for collection on the outstanding bonded indebtedness related to the District;
C. The principal scheduled for collection on the outstanding term bonds related to the District;
D. The sinking payments scheduled for collection on the outstanding term bonds relating to the District.

E. Amounts, if any, needed to replenish the applicable Reserve Account of the Bond Fund to the level of the Reserve Requirement; and
F. Amounts, if any, required to bring the amount on deposit in the Rebate Fund to the required level.

E. Payment of Authorized Services
Section 5: The Auditor-Controller of the County of Imperial is hereby directed to enter in the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected, the installment of the special tax. Reference is made to attached Exhibit "A" for the maximum rates and applied rates of the Special Taxes.

Section 6: All applicable Special Taxes collected for repayment of bonds will be paid to the trustee for deposit in the applicable Special Tax Fund upon receipt by the City of Calexico from the Auditor-Controller pursuant to the terms of the Indenture of Trust.

Section 7: The Auditor-Controller shall, at the close of the tax collection period, promptly render to the City Manager or his/her designee a detailed report showing the amounts of the Special Tax installments, penalties, interest, and fees collected, and from which properties collected. Any expenses to be paid to the Auditor-Controller for carrying out the forgoing responsibilities shall be in accordance with a contact, if any, entered into between the district and the Auditor-Controller, pursuant to Section 29304 of the Government Code of the State of California or as otherwise provided by law.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

PASSED, APPROVED AND ADOPTED this 1s' day of June, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Mayor of the City of Calexico
ATTEST:

City Clerk
EXHIBIT "A"
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(HEARTHSTONE)
FISCAL YEAR 2022/23

SPECIAL TAX RATES FOR FACILITIES
Building
Square Maximum Special Tax Applied Special Tax Rate
Land Use Type Footage Rate for Facilities for Facilities Less than or
Residential Property equal to 1,750 $1,849.00 per dwelling unit $1,849.00 per dwelling unit Residential Property 1,751 - 2,000 $2,028.00 per dwelling unit $2,028.00 per dwelling unit Residential Property 2,001 - 2,250 $2,117.00 per dwelling unit $2,117.00 per dwelling unit Residential Property 2,251 - 2,500 $2,260.00 per dwelling unit $2,260.00 per dwelling unit Residential Property 2,501 - 2,750 $2,296.00 per dwelling unit $2,296.00 per dwelling unit Residential Property 2,751 - 3,000 $2,439.00 per dwelling unit $2,439.00 per dwelling unit Residential Property 3,001 - 3,250 $2,581.00 per dwelling unit $2,581.00 per dwelling unit Greater than
Residential Property 3,250 $3,019.00 per dwelling unit $3,019.00 per dwelling unit Non-Residential Property N/A $15,590.00 per acre $15,590.00 per acre Undeveloped Property N/A $15,590.00 per acre $7,846.88 per acre FISCAL YEAR 2022/23

SPECIAL TAX RATES FOR SERVICES
Land Use Type Maximum Special Tax Rate Applied Special Tax Rate Residential Property $608.04 per dwelling unit $608.04 per dwelling unit Non- Residential Property $2,432.14 per acre $2,432.14 per acre Undeveloped Property $2,432.14 per acre $0.00 per acre
MUNICIPALITIES I SCHOOL DISTRICTS I CITIES I COUNTIES I PARK & RECREATION I WATER DISTRICTS | MUNICIPALITIES | SCHOOL DISTRICTS | COMMUNITIES

CALEXICO
Mine Callian Ca Teen Tee

CITY OF CALEXICO
COMMUNITY FACILITIes DISTRICT NO. 2005-1
(HEARTHSTONE)

ANNUAL REPORT
FISCAL YEAR 2022/23

KOPPEL&GRUBER

PUBLIC FINANCE
334 VIA VERA CRUZ, SUITE 256

SAN MARCOS
CALIFORNIA 92078
T. 760.510.0290
F. 760.510.0288
City of Calexico
Diego Favila, Interim City Manager
Sandy Fonseca, Interim Finance Director
City of Calexico
608 Heber Avenue
Calexico, CA 92231
T. 760.768.2110
Bond Counsel
Stradling Yocca Carlson & Rauth, a Professional Corporation 660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
T. 949.725.4000
F. 949.725.4100
Fiscal Agent
Keith Marshall, Vice President
U.S. Bank National Assocation
633 W. Fifth Street, 24th Floor
Los Angeles, CA 90071
T. 213.615.6034
Special Tax Administrator
Scott Koppel/Kara Meverden
Koppel & Gruber Public Finance
334 Via Vera Cruz, Suite 256
San Marcos, CA 92078
T. 760.510.0290
F. 760.510.0288

TABLE OF CONTENTS
SECTION I. INTRODUCTION. ...1
SECTION II. SPECIAL TAX LEVY FOR FY 2022/23 • 2
A. Annual Special Tax Requirement - Facilities. ..2
B. Annual Special Tax Requirement - Services.. ... 2
C. Estimated Administrative Expenses.... .............. 3 D. Distribution of Special Tax - Facilities. .. 3
E. Distribution of Special Tax - Services ... .. 4
SECTION III. SUMMARY OF DELINQUENT SPECIAL TAXES…. ..5
SECTION IV. FUND BALANCES & DESCRIPTIONS.. 6
SECTION V. BACKGROUND OF CFD NO. 2005-1 .. 8
A. Summary Table of Information ... 8
B. CFD No. 2005-1 Background.. ... 8
C. Boundaries... ...9
D. The Bonds..... ....?
SECTION VI. DEVELOPMENT SUMMARY.. ...10

ATTACHMENTS
ATTACHMENT 1 - RATE AND METHOD OF APPORTIONMENT
ATTACHMENT 2 - FY 2022/23 SPECIAL TAX ROLL
ATTACHMENT 3 - DELINQUENCY REPORT
ATTACHMENT 4 - BOUNDARY MAP
ATTACHMENT 5 - DEBT SERVICE SCHEDULE
ATTACHMENT 6 - DEVELOPMENT MAP
SECTION I. INTRODUCTION
This Annual Special Tax Report ("Report") summarizes certain general, financial and administrative information related to Community Facilities District No. 2005-1 (Hearthstone) ("CFD No. 2005-1") of the City of Calexico ("City") and their 2006 Special Tax Bonds ("Bonds"), which were issued on July 12, 2006, in the original principal amount of $14,710,000. The Report outlines the following for CFD No. 2005-1: (I) Special Tax Levy for Fiscal Year 2022/23, (II) Summary of Delinquent Special Taxes, (III) Fund Balances & Descriptions, (IV) Background of CFD No. 2005-1, and (V) Development Summary. The Report also includes Attachments that are referenced by and/or supplement the information outlined herein. All capitalized terms not defined herein are used as defined in the Rate and Method of Apportionment of Special Taxes ("RMA") (see Attachment 1 for a full copy of the RMA).

City of Calexico, Annual Report FY 2022/23
Community Facilities District No. 2005-1 (Hearthstone)
SECTION II. SPECIAL TAX LEVY FOR FY 2022/23
Section Il of the Report contains information for the determination of the Fiscal Year ("FY") 2022/23 Special Tax levy.

A. Annual Special Tax Requirement - Facilities
The Annual Special Tax Requirement for Facilities represents the interest and Annual Special Tax Requirement for Facilities. FY 2021/22 amounts are shown for comparison.

SPECIAL TAX REQUIREMENT FOR FACILITIES PORTION
FY 2022/23 FY 2021/22

SPECIAL TAX COMPONENTS DOLLARS DOLLARS'
Principal Due (September 1) $485,000.00 $460,000.00
Interest Due (March 1) 261.426.25 273.501.25
Interest Due (September 1) 261,426.25 273,501.25
Administrative Expenses 30,693.00 30,290.00
SPECIAL TAX REQUIREMENT $1,038,545.50 $1,037,292.50
Subsequent to the filing of special taxes for FY 2021/22, two property owners prepaid their special taxes, which reduced the overall Special Tax Requirement for Facilities to $1,032,736.30.

B. Annual Special Tax Requirement - Services
The Annual Special Tax Requirement for Services represents the costs of maintaining the public safety services and estimated Administrative Expenses for FY 2022/23.

The Annual Special Tax Requirement for Services for FY 2022/23 is $145,929.60, which is calculated in accordance with the RMA. The table below shows the calculation used to determine the FY 2022/23 Annual Special Tax Requirement for Services. FY 2021/22 amounts are shown for comparison.

SPECIAL TAX REQUIREMENT FOR SERVICES PORTION
SPECIAL TAX COMPONENTS FY 2022/23 DOLLARS FY 2021/22 DOLLARS Public Safety Services Costs $141.616.60 $133.951.80
Administrative Expenses 4,313.00 4.029.00
SPECIAL TAX REQUIREMENT $145,929.60 $137,980.80
City of Calexico, Annual Report FY 2022/23 2
Community Facilities District No. 2005-1 (Hearthstone)
C. Estimated Administrative Expenses
Each year a portion of the Special Tax levy goes to pay the ongoing costs of dministration. The FY 2022/23 Administrative Expenses are shown below follower y a description of each line item. The total Administrative Expenses have beer allocated to the Facilities budget and Services budget based on the proportionate share of the Special Tax Requirement for each funding type. FY 2021/22 amounts are shown for comparison.

ADMINISTRATIVE EXPENSES FY 2022/23 DOLLARS FY 2021/22 DOLLARS SPECIAL TAX FOR FACILITIES:

City Staff and Expenses $19.248.13 $20,503.20
Consultant Fees and Expenses 10.977.80' 9,318.75
County Tax Collection Fees 67.07 68.05
Other Fees and Expenses 400.00 400.00
Subtotal $30,693.00 $30,290.00
SPECIAL TAX FOR SERVICES:

City Staff and Expenses $3.431.37 $3,189.70
Consultant Fees and Expenses 872.20 831.25
County Tax Collection Fees 9.43 9.05
Subtotal $4,313.00 $4,030.00
TOTAL EXPENSES $35,006.00 S34,320.00
Includes fee for arbitrage calculation.

City Staff and Expenses - Includes staff time spent on the administration of CFD No. 2005-1, its accounts and obligations as well as expenses related to CFD No. 2005- 1 including postage, supplies, copying, telephone, and technology costs.

Consultant Fees and Expenses - Includes the City's estimated costs to hire consultants related to the administration of CFD No. 2005-1. Consultants used include attorneys, fiscal agent and the special tax administrator. These consultants monitor the special taxes collected by CFD No. 2005-1, provide for the timely payment of debt service, and compliance with State and Federal laws and reporting requirements.

County Tax Collection Fee - Refers to the processing fee charge by the County of The Cial Counte) chalage a hease in Tale on the Susty hirty has bell. divided between CFD No. 2005-1 and CFD No. 2013-1), plus $20.00 for each fund maintained, plus $0.10 per each billed parcel.

Other Fees and Expenses - This item has been added to protect CFD No. 2005-1 from unanticipated unbudgeted costs.

D. Distribution of Special Tax - Facilities
The Special Taxes for Facilities that CFD No. 2005-1 may levy are limited by the RMA. The number of units and/or acreage levied, the FY 2022/23 Annual Special Tax for Facilities rate (Maximum and Applied), and aggregate levy amount for each City of Calexico, Annual Report FY 2022/23 3
Community Facilities District No. 2005-1 (Hearthstone)
Special Tax for Facilities classification are listed in the following table. (Please see Attachment 2 for a copy of the FY 2022/23 Preliminary Special Tax Roll.) FY 2022/23
FY 2022/23 APPLIED
BUILDING NUMBER OF MAXIMUM ANNUAL PERCENT FY 2022/23

LAND USE SQUARE UNITS/ SPECIAL SPECIAL OF LEVY

CLASS FOOTAGE ACRES' TAX TAX MAXIMUM AMOUNT

RESIDENTIAL PROPERTY
Residential < 1,751 78 $1,849.00 $1,849.00 100.00% $144,222.00 Residential 1,751 - 2,000 19 $2,028.00 $2,028.00 100.00% $38,532.00 Residential 2,001 - 2,250 18 $2,117.00 $2,117.00 100.00% $38,106.00 Residential 2,251 - 2,500 33 $2,260.00 $2,260.00 100.00% $74,580.00 Residential 2,501 - 2,750 20 $2,296.00 $2,296.00 100.00% $45,920.00 Residential 2,751 - 3,000 $2,439.00 $2,439.00 100.00% $0.00 Residential 3,001 - 3,250 32 $2,581.00 $2,581.00 100.00% $82,592.00 Residential > 3,250 33 $3,019.00 $3,019.00 100.00% $99,627.00 Residential -
Partially Prepaid N/A $258.10 $258.10 100.00% $258.10

NON-RESIDENTIAL AND UNDEVELOPED PROPERTIES
Non-Residential N/A $15,590.00 $15,590.00 100.00% $0.00 Undeveloped N/A 65.594 $15,590.00 $7,846.88 50.33% $514,708.25 234 UNITS/
TOTAL3 N/A 65.594 ACRES N/A N/A N/A $1,038,545.35
Excludes six (6) parcels for which the property owner has prepaid 100% of their special tax obligation. 2 One parcel owner prepaid approximately 90.00% of their special taxes. The amount shown in the table above represents the remaining special tax obligation for this parcel.
3 Any difference between the special tax requirement detail in Section I-A above and the actual levy amount is due to rounding.

E. Distribution of Special Tax - Services
Special Taxes for Services that CFD No. 2005-1 may levy are limited by the RMA.

The number of units and/or acreage levied, FY 2022/23 Annual Special Services Tax rate (maximum and applied) and aggregate levy amount for each Special Taxes for Services classification are listed in the following table. (Please see Attachment 2 for a copy of the FY 2022/23 Preliminary Special Tax Roll.) FY 2022/23 FY 2022/23
NUMBER OF MAXIMUM APPLIED PERCENT FY 2022/23

LAND USE UNITS/ SPECIAL ANNUAL LEVY

CLASS ACRES TAX SPECIAL TAX MAXIMUM AMOUNT
Residential 240 $608.04 $608.04 100.00% $145,929.60
Non-Residential $2.432.14 $2.432.14 100.00% $0.00
Undeveloped 65.594 $2,432.14 $0.00 0.00% $0.00
240 UNITS/
TOTAL 65.594 ACRES N/A N/A $145,929.60
Any difference between the special tax requirement detail in Section I-B above and the actual levy amount is due to rounding. Includes six (6) developed parcels that prepaid 100% of their facilities special tax.

City of Calexico, Annual Report FY 2022/23 4
Community Facilities District No. 2005-1 (Hearthstone)
SECTION III. SUMMARY OF DELINQUENT SPECIAL TAXES
Delinquent Special Taxes as of April 13, 2022 for FY 2021/22 and prior fiscal years are summarized in the table below (please see Attachment 3 for a copy of the Delinquency Report):

TOTAL PERCENT
NO. OF TOTAL NO. OF ANNUAL NO. OF ANNUAL ANNUAL OF

FISCAL PARCELS ANNUAL PARCELS DELINQUENT FORECLOSED FORECLOSED UNPAID ANNUAL YEAR LEVIED LEVY DELINQUENT AMOUNT! PARCELS AMOUNT? AMOUNT UNPAID 2008/09 246 $1,553,150.00 0 $0.00 2 $865,795.00 S865,795.00 55.74% 2009/10 246 $1,556,286.00 0 S0.00 2 $865,795.00 $865,795.00 55.63% 2010/11 246 $1,558,679.00 $0.00 $868,969.00 $868,969.00 55.75% 2011/12 246 $1,560,065.00 $0.00 2 $869,656.00 $869,656.00 55.74% 2012/13 246 $1,249,391.00 $0.00 2 $600,354.00 $600,354.00 48.05% 2013/14 246 $1,383,604.00 $3,511.00 2 $718,634.00 $722,145.00 52.19% 2014/15 $1,385,813.00 $721,438.00 0 $0.00 $721,438.00 52.06% 2015/16 246 $1,388,853.10 $722,784.50 $0.00 $722,784.50 52.04% 2016/17 246 $1,159,443.96 3 $503,007.18 0 $0.00 $503,007.18 43.38% 2017/18 246 $1,158,771.38 3 $504,610.46 $0.00 $504,610.46 43.58% 2018/19 246 $1,154,643.20 2 $497,026.74 $0.00 $497,026.74 43.05% 2019/20 246 $1,157,929.32 $503,400.28 $0.00 $503,400.28 43.47% 2020/21 246 $1,229,880.22 $567,957.90 0 $0.00 $567,957.90 46.18% 2021/223 246 $1,170,717.10 9 $259,040.98 $0.00 $259,040.98 44.25% Data was obtained from the Imperial County Auditor-Controller's Office. 2 Data was obtained from Bowie, Arneson, Wiles & Giannone. 3 Includes only first installment collection information; final installment information was not available as of the date of this report.

The City has covenanted to the bondholders of the Bonds that the City will commence and diligently pursue judicial foreclosure proceedings against (i) properties under common ownership with delinquent Special Taxes in the aggregate of $5,000 or more on or about July 1 following the close of the Fiscal Year, and (ii) all properties with delinquent Special Taxes if the amount of Special Taxes collected by the end of the prior Fiscal Year is less than ninety-five percent (95%) of the total amount levied in the prior Fiscal Year on or about July 1.

Collections received from FY 2020/21 Special Taxes did not exceed 95%. In addition, five (5) property owners are delinquent in their payment of Special Taxes in an aggregate amount of more than $5,000. Accordingly, the City has hired a foreclosure attorney and has begun foreclosure proceedings on the delinquent properties.

City of Calexico, Annual Report FY 2022/23 5
Community Facilities District No. 2005-1 (Hearthstone)
SECTION IV. FUND BALANCES & DESCRIPTIONS
The balances as of April 30, 2022 of the funds, accounts and subaccounts established pursuant to the Fiscal Agent Agreement ("FAA") executed in association with the Bonds are shown in the table below. The funds are currently being held by U.S. Bank National Association, acting as fiscal agent ("Fiscal Agent").

ACCOUNT

FUND, ACCOUNT, SUBACCOUNT NUMBER BALANCE
Special Tax Fund 103605000 $0.83
Interest Account 103605001 $0.00
Principal Account 103605002 $0.00
Administrative Expenses Account 103605003 $49,478.66
Reserve Account 103605005 $137,444.57
Project Account 103605006 $0.00
City Account 103605007 $0.01
School District Account 103605008 $0.02
Surplus Fund 103605011 $0.00
Redemption Account 103605012 $0.00
Prepayment Account 103605013 $0.00
The following provides a description of the major funds, accounts and sub-accounts:

Special Tax Fund
The Fiscal Agent deposits monies collected from the payment of Special Tax Revenues (or any proceeds from the sale of property collected pursuant to the foreclosure provisions of the FAA) and Special Tax Prepayments into this fund to be held in trust and transferred on the dates, in the amounts and in the priority as set forth in the FAA.

Interest and Principal Accounts
On or before each Interest Payment Date, the Fiscal Agent shall deposit enougl noney, together with any amounts already on deposit, to pay the required principa of, interest, and any premium on the Bonds.

Administrative Expense Account
The Fiscal Agent holds this account for payment of Administrative Expenses as defined in the FAA. Interest earnings from investments of this account are retained in this account.

City of Calexico, Annual Report FY 2022/23 6
Community Facilities District No. 2005-1 (Hearthstone)
Reserve Account
Monies in the Reserve Account are held in trust for the payment of the principal, interest and any premium on the Bonds. Amounts exceeding the Reserve Requirement shall be transferred to the Interest Account and Principal Account at the request of the City in accordance with the FAA. The Reserve Requirement, as of any date of calculation, is equal to the lesser of (1) 10% of the initial principal amount of the Bonds and any parity bonds; (2) the Maximum Annual Debt Service on the Bonds and any parity bonds; or (3) 125% of the average Annual Debt Service on the Bonds and any parity bonds.

The Reserve Requirement as of March 31, 2022 was $1,007,852.50. The City has drawn monies from the Reserve Fund to pay a portion of the debt service payments on the Bonds. The Fiscal Agent has filed event notices through the repository ("EMMA") for the Municipal Securities Rulemaking Board ("MSRB") notifying bondholders of these unscheduled draws on the Reserve Fund.

Acquisition and Construction Fund
Project Account
Monies in the Project Account of the Acquisition and Construction Fund shall be disbursed for the payment or reimbursement of the costs of the design, acquisition and construction of authorized facilities. More specifically, the funds deposited in the Project Account established in connection with the Bonds will be used to finance mprovements to Cole and Meadows Roads, sewer lift station and sewer lines retention basin, and required impact fees for both the City and the School District.

City of Calexico, Annual Report FY 2022/23 7
Community Facilities District No. 2005-1 (Hearthstone)
SECTION V. BACKGROUND OF CFD No. 2005-1
A. Summary Table of Information
The following table shows information related to the formation of CFD No. 2005-1 and the outstanding bond issue for CFD No. 2005-1:

CFD FORMATION
Date of Resolution of Intention to Establish January 8. 2005 Resolution of Intention Number 05-33
Date of Resolution of Formation September 20, 2005
Resolution of Formation Number 05-62
2006 BOND ISSUE OF CFD No. 2005-1
Bond Issuance Amount $14.710,000
Interest Rate Range 4.00% - 5.55%
Final Maturity September 1, 2036
Foreclosure Covenants < 95% aggregate Special Tax
levy or > $5.000 per owner
Bonds Subject to Arbitrage Yes
Bond Rating Not rated
County Fund Number 92110
B. CFD No. 2005-1 Background
On January 8, 2005, the City Council of the City of Calexico adopted a resolution of intention to form a community facilities district under the Act, to levy a special tax and to incur bonded indebtedness for the purpose of financing public improvements to meet the needs of new development. After conducting a noticed public hearing, the City Council adopted resolutions establishing CFD No. 2005-1, providing for a special tax, approving the proposed rate and method of appointment of the special tax and approving the issuance of bonded indebtedness to finance the authorized facilities, and calling a special election to submit to the qualified electors within CFD No. 2005- 1 the propositions to levy the special tax and the issuance of bonds.

On September 20, 2005, an election was held within CFD No. 2005-1 in which the landowners) eligible to vote approved the levy of special tax and the issuance of bonds in an amount not to exceed $15,000,000.

CFD No. 2005-1 consists of approximately 75 taxable acres comprising a master- within the CFD.

City of Calexico, Annual Report FY 2022/23 8
Community Facilities District No. 2005-1 (Hearthstone)
C. Boundaries
CFD No. 2005-1 is located within the City of Calexico, north of Cole Road, south of the central main canal, west of Meadows Road and approximately one quarter of a mile east of State Highway 111. A reduced map of the boundaries of CFD No. 2005-1 titled "Map of Proposed Boundaries of Community Facilities District No. 2005-1 (Hearthstone)" is incorporated herein as Attachment 4.

A full-scale map is on file with the Clerk of the City of Calexico and was recorded with the County Recorder in the County of Imperial in Book 23 of Maps of Assessment and Community Facilities Districts, Pages 10 through 13, Document No. 200514120.

D. The Bonds
Authority of Issuance
Bonds are authorized to be issued by the City under the Act, as amended, and other applicable laws of the State of California.

Purpose of the Bonds
Bonds were issued on July I2, 2006 in the amount of $14,710,000, the proceeds of which were used primarily to finance the costs of acquisition and construction of authorized facilities within CFD No. 2005-1. A current debt service schedule for the Bonds is incorporated herein as Attachment 5.

Foreclosure Covenants
The City has covenanted to the bondholders of the Bonds that the City will, on or about July 1 of each Fiscal Year, compare the amount of Special Taxes levied to the District to the amount of Special Taxes received by the District, and will, within 90 days of such determination, commence and diligently pursue judicial foreclosure proceedings against (i) properties under common ownership with delinquent Special Taxes in the aggregate of $5,000 or more and (ii) all properties with delinquent Special Taxes if the total amount of delinquent Special Taxes for the prior Fiscal Year for the entire District is less than ninety-five percent (95%) of the total amount levied in the prior Fiscal Year.
delinquencies and will assist in pursuing each delinquency.

Arbitrage Covenants
The City has covenanted that it will determine whether any portion of investment from any account established by the FAA must be rebated to the Federal Government. The next installment calculation is scheduled for 2022.

City of Calexico, Annual Report FY 2022/23 9
Community Facilities District No. 2005-1 (Hearthstone)
SECTION VI. DEVELOPMENT SUMMARY
CFD No. 2005-1 is planned to be developed with four hundred and fifty-seven (457) single- family residential units. As of March 1, 2022, building permits have been issued for twc hundred and forty (240) total taxable units of residential property. The following table summarizes the planned number of units and the number of units with a Special Tax levy for FY 2021/22 by Land Use Class. Please see Attachment 6 for a copy of the current Development Map.

BUILDING SQUARE NUMBER OF UNITS

LAND USE CLASS FOOTAGE PLANNED NUMBER OF UNITS
Residential Property <1,751 41 79
Residential Property 1,751 - 2,000 23 19
Residential Property 2,001 - 2,250 72 18
Residential Property 2,251 - 2,500 35 35
Residential Property 2,501 - 2,750 56 22
Residential Property 2.751 - 3,000
Residential Property 3,001 - 3,250 73 33
Residential Property > 3,250 157 34
TOTAL 457 UNITS 240 UNITS
City of Calexico, Annual Report FY 2022/23 10
Community Facilities District No. 2005-1 (Hearthstone)
ATTACHMENT 1

RATE AND METHOD OF APPORTIONMENT
FOR CFD NO. 2005-1 (HEARTHSTONE)
City of Calexico, Annual Report FY 2022/23
Community Facilities District No. 2005-1 (Hearthstone)

RATE AND METHOD OF APPORTIONMENT

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
(Hearthstone)
The following sets forth the Rate and Method of Apportionment for the levy and collection of pecial Taxes of the City of Calexico ("City") Community Facilities District No. 2005- Hearthstone) ("CFD No. 2005-1"). The Special Tax shall be levied on and collected in CFD No of Apportionmen deserted below. Alte real propery in FED No 2051, unless empret by herein provided.

SECTION A

DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Communities Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of CFD No. 2005-1 related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2005-1, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2005-1.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number within the boundaries of CFD No. 2005-1. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 1 "Assigned Special Tax for Facilities" means the Special Tax of that name described in Section D below.
"Backup Special Tax for Facilities" means the Special Tax of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, "Building Permit" means a permit for new construction for a residential dwelling. For purposes of this definition, "Building Permit" shall not include permits for construction or installation of, retaining walls, utility improvements, or other such improvements not intended for human habitation.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January I of any year and ending the following December 31.
"CFD No. 2005-1" means Community Facilities District No. 2005-1 (La Jolla Palms) established by the City under the Act.
"City" means the City of Calexico.
"City Council" means the City Council of City of Calexico, acting as the legislative body of CFD No. 2005-1, or its designee.
"Consumer Price Index" means the index published monthly by the U.S. Department of Labor Statistics for all urban consumers in the Los Angeles-Riverside-Orange County area. "County" means the County of Imperial.
"Developed Property" means all Assessor's Parcels for which Building Permits were issued on or before March 1 of the prior Fiscal Year, provided that such Assessor's Parcels were included in a Ase Map fare is assorded on or a Lot, a reasond bly determined by yet and that each such "Exempt Property" means all Assessors' Parcels designated as being exempt from Special Taxes in Section J.
"Final Map" means a subdivision of property evidenced by the recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or the recordation of a condominium plan pursuant to California Civil Code City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 2 1352 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June

30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Lot" means an individual legal lot created by a Final Map, identified by an Assessor's Parcel Number, for which a Building Permit could be issued.
"Maximum Special Tax" means the Maximum Special Tax for Facilities and Maximum Special Tax for Services.
"Maximum Special Tax for Facilities" means the maximum Special Tax, determined in accordance with Section C.l.a. that can be levied by CFD No. 2005-1 in any Fiscal Year on any Assessor's Parcel.
"Maximum Special Tax for Services" means the maximum Special Tax, determined in accordance with Section C.I.b. that can be levied by CFD No. 2005-1 in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of a Final Map designated for any type of non-residential use.
"Operating Fund" means a fund that shall be maintained for CFD No. 2005-1 for any Fiscal Year to pay for the actual Public Safety Services Costs, and applicable share of Administrative Expenses. "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax for Facilities obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Special Tax for Facilities obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that i) the ratio of the actual Special Tax for Facilities levy to the applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels and ii) the ratio of the actual Special Tax for Services levy to the applicable Maximum Special Tax for Services is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax for Facilities under step three of Section F.I., "Proportionately" in step three means that the quotient of (a) the actual Special Tax for Facilities levy less the Assigned Special Tax for Facilities divided by (b) the Backup Special Tax for Facilities less the Assigned Special Tax for Facilities, is equal for all applicable Assessor's Parcels.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 3 "Public Safety Services Costs" means CFD No. 2005-I's fair share of the estimated and reasonable costs of providing police services and fire protection and suppression services, including but not limited to the allocable share of (i) the costs of contracting services, (ii) related facilities, equipment. vehicles, ambulances and paramedics, fire apparatus, supplies, (iii) salaries and benefits of City and Fire District staff that directly provide police services and fire protection and suppression services, respectively, and (iv) City and Fire District overhead costs associated with providing such services within the District..
"Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential dwelling units. "Special Tax" means Special Tax for Facilities and Special Tax for Services. "Special Tax for Facilities" means any of the special taxes authorized to be levied by CFD No. 2005-1 pursuant to the Act to fund the Special Tax Requirement for Facilities. "Special Tax for Services" means any of the special taxes authorized to be levied by CFD No. 2005-1 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement" means Special Tax Requirement for Facilities and Special Tax Requirement for Services.
"Special Tax Requirement for Facilities" means for CFD No. 2005-1 that amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (iil) the costs associated with the release of funds from an escrow account, and (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2005-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax for Facilities on Undeveloped Property, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture. "Special Tax Requirement for Services" means the amount determined in any Fiscal Year for CFD No. 2005-1 equal to (i) the budgeted Public Safety Services Costs (ii) Administrative Expenses, and (iii) anticipated delinquent Special Taxes for Services based on the delinquency rate in CFD No. 2005-1 for the previous Fiscal Year, less (iv) the Operating Fund Balance. "Taxable Property" means all Assessor's Parcels within CFD No. 2005-1 which are not Exempt Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 4

SECTION B

CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2006-07, each Assessor's Parcel within CFD No. shall further be classified as Residential Property or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAXES
Developed Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel of Residential Property that is classified as Developed Property in any Fiscal Year shall be the amount determined by the greater of (i) the application of the Assigned Special Tax for Facilities in Table 1 or (ii) the application of the Backup Special Tax for Facilities. The Maximum Special Tax for each Assessor's Parcel of Non-Residential Property that is classified as Developed Property in any Fiscal Year shall be the Assigned Annual Special Tax for Facilities in Table 1.
b. The Maximum Special Tax for Services for each Assessor's Parcel of Residential Property that is classified as Developed Property for Fiscal Year 2006-07 shall be $420 per unit. The Maximum Special Tax for Services for each Assessor's Parcel of Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be $1,680 per Acre. On each July 1, commencing July 1, 2007, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year.

Undeveloped Property
a. The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Undeveloped Property in any Fiscal Year shall be the Assigned Special Tax for Facilities in Table 1.
b. The Maximum Special Tax for Services for each Assessor's Parcel of Undeveloped Property tor Fiscal Year 2006-07 shall be $ 1,680 per acre. On each July 1, commencing uly 1, 2007, the Maximum Special Tax for Services for the prior Fiscal Year shall be adjusted by an amount equal to the percentage change in the Consumer Price Index for the Calendar Year ending in December of the prior Fiscal Year.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 5

SECTION D

ASSIGNED SPECIAL TAXES FOR FACILITES

ASSIGNED SPECIAL TAX FOR FACILITIES
Land Use Type Building Square Footage Assigned Special Tax for Facilities Residential Property Less than or equal to 1,750 $1,849 per dwelling unit Residential Property 1,751-2,000 $2,028 per dwelling unit Residential Property 2,001-2,250 $2,117 per dwelling unit Residential Property 2,251-2,500 $2,260 per dwelling unit Residential Property 2,501-2,750 $2,296 per dwelling unit Residential Property 2,751-3,000 $2,439 per dwelling unit Residential Property 3,001-3,250 $2,581 per dwelling unit Residential Property Greater than 3,250 $3.019 per dwelling unit Non-Residential Property N/A $15,590 per Acre
Undeveloped Property N/A $15,590 per Acre

SECTION E

BACKUP SPECIAL TAX FOR FACILITIES
When a Final Map is recorded the Backup Special Tax for Facilities for Residential Property, Non- Residential Property, and Undeveloped Property shall be determined as specified below.

Each Fiscal Year, each Assessor's Parcel of Residential Property or Undeveloped Property to be classified as Residential Property upon its development within a Final Map shall be the rate per Lot calculated according to the following formula:

R xA
B =-
L
The terms above have the following meanings:
= Backup Special Tax for Facilities per Lot in each Fiscal Year
R = Maximum Special Tax for Facilities rate per Acre for Undeveloped Property for the applicable Fiscal Year
A = Acreage classified or to be classified as Residential Property in such Final Map.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 6 L Lots in the Final Map which are classified or to be classified as Residential Property.

Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding paragraph is subsequently changed or modified, then the Backup Special Tax for Facilities for each Assessor's Parcel of Developed Property classified or to be classified as Residential Property in such Final Map area that is changed or modified shall be a rate per square foot of Acreage calculated as follows:

Determine the total Backup Special Tax for Facilities anticipated to apply to the changed or modified Final Map area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property classified or to be classified as Residential Property which is ultimately expected to exist in such changed or modified Final Map area, as reasonably determined by the City.

The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special Tax for Facilities per square foot of Acreage which shall be applicable to Assessor's Parcels of Developed Property classified as Residential Property in such changed or modified Final Map area for all remaining Fiscal Years in which the Special Tax for Facilities may be

SECTION F

METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES

AND THE SPECIAL TAX FOR SERVICES
Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Facilities on all Taxable Property within CFD No. 2005-1 until the amount of Special Tax for Facilities equals the Special Tax Requirement for Facilities in For Pacific i all accordance with the following steps:

Step One: The Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax for Facilities rates in Table 1 as needed to satisfy the Special Tax Requirement for Facilities.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Undeveloped Property pursuant to Section J., at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Step Three: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then for each Assessor's City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 7 Parcel of Developed Property whose Maximum Special Tax for Facilities is the Backup Special Tax for Facilities shall be increased Proportionately from the Assigned Special Tax for Facilities up to 100% of the Backup Special Tax for Facilities as needed to satisfy the Special Tax Requirement for Facilities.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property classified as Undeveloped Property pursuant to Section J. at up to 100% of the Assigned Special Tax for Facilities applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Facilities.

2. Commencing Fiscal Year 2006-07 and for each subsequent Fiscal Year, the City Council shall levy a Special Tax for Services on all Taxable Property within CFD No. 2005-1 until the amount of Special Tax for Services equals the Special Tax Requirement for Services in accordance with the following steps:

Step One: The Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for Services as needed to satisfy the Special Tax Requirement for Services.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement for Services after the first step has been completed, the Maximum Special Tax for Services shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within a Final Map, at up to 100% of the Maximum Special Tax for Services applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement for Services.

Under no circumstances will the Special Tax for Facilities or the Special Tax for Services levied against any Assessor's Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel or Parcels within CFD No. 2005- ! by more than ten (10) percent of the Special Tax that would be levied in that Fiscal Year, if there vere no delinquencies, pursuant to California Government Code Section 53321(d), as in effect or the date of formation of CFD No. 2005-1.

SECTION G

PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The following definitions apply to this Section G:
"CFD Public Facilities" means $12,500,000 expressed in 2005 dollars, which shall increase by the Construction Inflation Index on January 1, 2006
Conster as i Shal be determind anyte City 5 ulcion tach aidary therafacitres under he authorized bonding program for CFD No. 2005-1, or (ii) shall be determined by the City Council City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 8 concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2005-1.
"Construction Inflation Index" means the annual percentage change in the Engineering News- Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Tax for Facilities which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes for Facilities.

The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Undeveloped Property for which a Building Permit has been issued or an Assessor's Parcel of Undeveloped Property that is classified as Undeveloped Property pursuant to Section J. may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor's Parcel intending to prepay the Special Tax for Facilities obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2005-1 in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the prepayment The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance
City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 9 plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

1. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities applicable to the Assessor's Parcel. For Assessor's Parcels of Undeveloped Property, excluding any Undeveloped Property pursuant to Section J., compute the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities applicable to the Assessor's Parcel as though it was already designated as Developed Property based upon the Building Permit issued or to be issued for that Assessor's Parcel. For Assessor's Parcels of Undeveloped Property, classified as Undeveloped Property pursuant to Section J., compute the Assigned Special Tax for Facilities.

2. For each Assessor's Parcel of Developed Property, Undeveloped Property or Undeveloped Property pursuant to Section J. to be prepaid, (a) divide the Assigned Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City, and (b) divide the Backup Special Tax for Facilities, if any, computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Backup Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City.

3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) by Outstanding Bonds. The product shall be the "Bond Redemption Amount".

4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium."
If all the Bonds authorized to be issued by CFD No. 2005-1 have not been issued, compute the Future Facilities Cost.

6. Multiply the larger quotient computed pursuant to paragraph 2 (a) or 2 (b) by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount").

7. Compute the amount needed to pay interest on the Bond Redemption Amount from the first Bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 10 Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest redemption date for the Outstanding Bonds.

9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance."

10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee."

11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (s) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date.

Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than

0. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit.

With respect to a Special Tax for Facilities obligation that is prepaid pursuant to this Section G., the City Council shall indicate in the records of CFD No. 2005-1 that there has been a prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes for Facilities shall cease.

Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for Facilities that may be levied on Taxable Property, net of Administrative Expenses, shall be at leas

1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.

SECTION H

PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES
The Special Tax for Facilities obligation of an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a Building Permit has been issued and will be classified as Developed Property in the next Fiscal Year, as calculated in this Section H. below, may City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 11 be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid.

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = (Po-A) x F + A
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

Po= he Prepayment Amount calculated according to Section G F= the percent by which the owner of the Assessor's Parcel is partiall prepaying the Special Tax for Facilities obligation.

A = the Administrative Fee calculated according to Section G.

With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CPD No. 2005-1 that there has been a partial prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax for Facilities obligation, to indicate the partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax for Facilities shall cease.

Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Taxes for Facilities that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year.

SECTION I

TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax for Facilities shall be levied on all Assessor's Parcels subject to the Special Tax for Facilities. If any delinquent Special Tax for Facilities remain uncollected prior to or after all Bonds are retired, the Special Tax for Facilities may be levied to the extent necessary to reimburse CFD No. 2005-1 for uncollected Special Taxes for Facilities associated with the levy of such Special Tax for Facilities, but not later than the 2046-2047 Fiscal Year. The Special Tax for Services shall be levied as long as it is needed to meet the Special Tax Requirement for Services, as determined at the sole discretion of the City Council.

City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 12

SECTION J

EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels owned by the State of California, Federal or other local governments, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels used exclusively by a homeowners' association, or (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to less than 69.87 Acres. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 69.87 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 69.87 Acres will continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly.

SECTION K

APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representatives) of FD No. 2005-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).

The City Council may interpret this Rate and Method of Apportionment of Special Taxes for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the City Council shall be binding as to all persons.

SECTION L

MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem Pime or alien manner it necesar op me is iami obligatine pecial Tax ata diferent City of Calexico May 12, 2005
Community Facilities District No. 2005-1 (Hearthstone) Page 13 ATTACHMENT 2
FISCAL YEAR 2022/23 SPECIAL TAx RoLL
Special Taxes levied in FY 2022/23 for CFD No. 2005-1 are shown on the following pages.

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-491-003-000 NOT AVAILABLE UNDEVELOPED 172,160.54
059-492-001-000 1000 SPUD MORENO ST 2,251 - 2.500 $ 2,868.04 059-492-002-000 1004 SPUD MORENO ST 2,501 - 2,750 $ 2,904.04 059-492-003-000 1008 SPUD MORENO ST 1,751 - 2,000 $ 2,636.04 059-492-004-000 1012 SPUD MORENO ST 2,251 - 2,500 S 2.868.04 059-492-005-000 1018 SPUD MORENO ST 2,251 - 2,500 2,868.04 059-492-006-000 1024 SPUD MORENO ST 1,751 - 2,000 $ 2,636.04 059-492-007-000 1028 SPUD MORENO ST 2,251 - 2,500 S 2,868.04 059-492-008-000 1032 SPUD MORENO ST < 1,751 2,457.04
059-492-009-000 1036 SPUD MORENO ST 2,251 - 2.500 2,868.04 059-492-010-000 1040 SPUD MORENO ST 2,501 - 2,750 S 2,904.04 059-492-011-000 1035 F TORRES ST 3.001 - 3,250 3,189.04 059-492-012-000 1031 F TORRES ST > 3,250 S 3.627.04
059-492-013-000 1029 F TORRES ST > 3,250 $ 3,627.04
059-492-014-000 1025 F TORRES ST 3,001 - 3,250 $ 3,189.04 059-492-015-000 1021 F TORRES ST 2,001 - 2,250 $ 2,725.04 059-492-016-000 1017 F TORRES ST > 3,250 3,627.04
059-492-017-000 1013 F TORRES ST 3,001 - 3,250 $ 3,189.04 059-492-018-000 1009 F TORRES ST > 3,250 S 3,627.04
059-492-019-000 1005 F TORRES ST 3.001 - 3,250 S 3,189.04 059-492-020-000 1001 F TORRES ST > 3,250 3,627.04
059-493-001-000 2476 H NAJERA AVE 2,501 - 2,750 $ 2,904.04 059-493-002-000 2472 H NAJERA AVE 1,751 - 2,000 2.636.04 059-493-003-000 2468 H NAJERA AVE 2,251 - 2,500 2,868.04 059-493-004-000 2464 H NAJERA AVE 2,501 - 2,750 $ 2,904.04 059-493-005-000 2462 H NAJERA AVE < 1,751 2,457.04
059-493-006-000 2458 H NAJERA AVE 2.251 - 2,500 2,868.04 059-493-007-000 2454 H NAJERA AVE 2,501 - 2,750 S 2,904.04 059-493-008-000 1013 F HERRERA ST 2.251 - 2.500 2,868.04 059-493-009-000 1017 F HERRERA ST 2,501 - 2.750 2,904.04 059-493-010-000 1021 F HERRERA ST 2,251 - 2,500 2,868.04 059-493-011-000 1025 F HERRERA ST 1,751 - 2,000 2,636.04 059-493-012-000 1029 F HERRERA ST 2,251 - 2,500 2,868.04 059-493-013-000 1033 F HERRERA ST 2,501 - 2,750 $ 2,904.04 059-493-014-000 2459 G FIGUEROA AVE 2,251 - 2,500 $ 2,868.04 059-493-015-000 2461 G FIGUEROA AVE <1.751 $ 2,457.04
059-493-016-000 2469 G FIGUEROA AVE 1.751 - 2,000 $ 2,636.04 KOPPEL GRUBER Page 1 of 7
Prepared by PURLIC PANANCE

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-493-017-000 2471 G FIGUEROA AVE 2.251 - 2,500 S 2,868.04 059-493-018-000 2475 G FIGUEROA AVE 2,501 - 2,750 $ 2,904.04 059-493-019-000 2476 A ZUNIGA CT > 3,250 $ 3,627.04
059-493-020-000 2472 A ZUNIGA CT 3.001 - 3,250 $ 3,189.04 059-493-021-000 2468 A ZUNIGA CT > 3,250 3,627.04
059-493-022-000 2464 A ZUNIGA CT 3,001 - 3,250 866.14
059-493-023-000 2462 A ZUNIGA CT > 3,250 $ 3.627.04
059-493-024-000 2461 A ZUNIGA CT > 3,250 S 3.627.04
059-493-025-000 2465 A ZUNIGA CT 3,001 - 3,250 $ 3,189.04 059-493-026-000 2469 A ZUNIGA CT 3.001 - 3,250 S 3,189.04 059-493-027-000 2471 A ZUNIGA CT > 3,250 3,627.04
059-493-028-000 2475 A ZUNIGA CT 3.001 - 3,250 $ 3,189.04 059-494-001-000 1044 F TORRES ST 2,001 - 2,250 S 2,725.04 059-494-002-000 1048 F TORRES ST > 3,250 $ 3,627.04
059-494-003-000 1052 F TORRES ST 2,001 - 2,250 2,725.04 059-494-004-000 1056 F TORRES ST > 3,250 $ 3,627.04
059-494-005-000 1060 F TORRES ST 3,001 - 3,250 3,189.04 059-494-006-000 1064 F TORRES ST 2,001 - 2,250 2.725.04 059-494-007-000 1068 F TORRES ST > 3,250 3.627.04
059-494-008-000 1069 EL BERRO AVE 2,501 - 2,750 2,904.04 059-494-009-000 1065 EL BERRO AVE < 1,751 2,457.04
059-494-010-000 1061 EL BERRO 2,251 - 2,500 2,868.04
059-494-011-000 1057 EL BERRO AVE 1,751 - 2,000 $ 2,636.04 059-494-012-000 1053 EL BERRO < 1,751 2,457.04
059-494-013-000 1049 EL BERRO AVE 2,251 - 2,500 2,868.04 059-494-014-000 1045 EL BERRO AVE 2,501 - 2,750 2,904.04 059-495-001-000 1044 EL BERRO AVE 2,251 - 2,500 2,868.04 059-495-002-000 1048 EL BERRO AVE 2,501 - 2,750 2,904.04 059-495-003-000 1052 EL BERRO AVE 1,751 - 2,000 $ 2,636.04 059-495-004-000 1056 EL BERRO AVE <1,751 2,457.04
059-495-005-000 1060 EL BERRO AVE 2,251 - 2,500 2,868.04 059-495-006-000 1064 EL BERRO AVE 1,751 - 2,000 2,636.04 059-495-007-000 1068 EL BERRO PREPAID S 608.04
059-495-008-000 1069 F HERRERA ST > 3,250 S 3,627.04
059-495-009-000 1065 F HERRERA ST > 3,250 3,627.04
059-495-010-000 1061 F HERRERA ST > 3,250 3,627.04
059-495-011-000 1057 F HERRERA ST 2,001 - 2,250 $ 2,725.04 Prepared by KOPPEL GRUBER Page 2 of7

LIC PINANCY

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL
LER

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-495-012-000 1053 F HERRERA ST 3.001 - 3,250 3,189.04 059-495-013-000 1049 F HERRERA ST 2,001 - 2,250 S 2,725.04 059-495-014-000 1045 F HERRERA ST > 3,250 3,627.04
059-496-001-000 1084 SPUD MORENO ST < 1,751 $ 2,457.04
059-496-002-000 1080 SPUD MORENO ST 1,751 - 2,000 $ 2,636.04 059-496-003-000 1076 SPUD MORENO ST 2,501 - 2,750 2,904.04 059-496-004-000 1072 SPUD MORENO ST 2,001 - 2,250 2,725.04 059-496-005-000 1068 SPUD MORENO ST 3,001 - 3,250 3,189.04 059-496-006-000 1064 SPUD MORENO ST > 3,250 3,627.04
059-496-007-000 1056 SPUD MORENO ST UNDEVELOPED 1,177.02 059-496-008-000 1052 SPUD MORENO ST UNDEVELOPED 1,177.02 059-496-009-000 1048 SPUD MORENO ST UNDEVELOPED 1.177.02 059-496-010-000 1044 SPUD MORENO ST UNDEVELOPED 1,365.34 059-496-011-000 1045 F TORRES ST 3,001 - 3,250 3,189.04 059-496-012-000 1049 F TORRES ST 3,001 - 3,250 $ 3,189.04 059-496-013-000 1053 F TORRES ST 2,001 - 2,250 2,725.04 059-496-014-000 1057 F TORRES ST 3,001 - 3,250 3,189.04 059-496-015-000 1061 F TORRES ST PREPAID 608.04
059-496-016-000 1065 F TORRES ST 2,001 - 2,250 2,725.04 059-496-017-000 1069 F TORRES ST 2,001 - 2,250 2,725.04 059-496-018-000 1073 F TORRES ST > 3,250 3,627.04
059-496-019-000 1077 F TORRES ST 3,001 - 3,250 3,189.04 059-496-020-000 2476 M LLANOS CT 2,001 - 2,250 2,725.04 059-496-021-000 2472 M LLANOS CT 3,001 - 3,250 $ 3,189.04 059-496-022-000 2468 M LLANOS CT > 3,250 $ 3,627.04
059-496-023-000 2464 M LLANOS CT 2,001 - 2,250 2,725.04 059-496-024-000 2462 M LLANOS CT > 3,250 $ 3,627.04
059-496-025-000 2458 M LLANOS CT 3,001 - 3,250 3,189.04 059-496-026-000 2454 M LLANOS CT > 3,250 3.627.04
059-496-027-000 2452 M LLANOS CT 3,001 - 3,250 $ 3,189.04 059-496-028-000 2448 M LLANOS CT 3,001 - 3,250 3,189.04 059-496-029-000 2444 M LLANOS CT > 3,250 S 3,627.04
059-496-030-000 1076 F HERRERA ST 3,001 - 3,250 $ 3.189.04 059-496-031-000 1072 F HERRERA ST 3,001 - 3,250 3,189.04 059-496-032-000 1068 F HERRERA ST > 3,250 S 3,627.04
059-496-033-000 1064 F HERRERA ST 2,001 - 2,250 $ 2,725.04 059-496-034-000 1060 F HERRERA ST 2,001 - 2,250 $ 2,725.04 Prepared by KOPPEL GRUBER Page 3 of 7

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL
CER

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-496-035-000 1056 F HERRERA ST 3.001 - 3,250 CA GA 3,189.04 059-496-036-000 1052 F HERRERA ST > 3,250 3.627.04
059-496-037-000 1048 F HERRERA ST 3,001 - 3,250 $ 3,189.04 059-496-038-000 1044 F HERRERA ST > 3,250 $ 3.627.04
059-496-039-000 1040 F HERRERA ST 2,001 - 2,250 $ 2,725.04 059-496-040-000 1036 F HERRERA ST 1,751 - 2,000 2,636.04 059-496-041-000 1032 F HERRERA ST 2,251 - 2,500 2,868.04 059-496-042-000 1028 F HERRERA ST 1,751 - 2,000 2,636.04 059-496-043-000 1024 F HERRERA ST 2,501 - 2,750 608.04
059-496-044-000 1020 F HERRERA ST 1,751 - 2,000 2,636.04 059-496-045-000 1016 F HERRERA ST 1,751 - 2.000 2,636.04 059-496-046-000 1012 F HERRERA ST 2,501 - 2,750 2,904.04 059-496-047-000 1008 F HERRERA ST 2,251 - 2,500 608.04
059-496-048-000 1004 F HERRERA ST 2,501 - 2,750 $ 2,904.04 059-496-049-000 1000 F HERRERA ST 2,251 - 2,500 S 2,868.04 059-496-050-000 2451 H NAJERA AVE 2,251 - 2,500 $ 2,868.04 059-496-051-000 2455 H NAJERA AVE PREPAID 608.04
059-496-052-000 2459 H NAJERA AVE 2,251 - 2,500 2,868.04 059-496-053-000 2461 H NAJERA AVE 2,251 - 2,500 2,868.04 059-496-054-000 2465 H NAJERA AVE 2,251 - 2,500 2,868.04 059-496-055-000 2469 H NAJERA AVE 1,751 - 2,000 2,636.04 059-496-056-000 2471 H NAJERA AVE 2,251 - 2,500 2,868.04 059-496-057-000 2475 H NAJERA AVE 2,501 - 2,750 2,904.04 059-500-003-000 NOT AVAILABLE UNDEVELOPED $ 337,651.24
059-521-001-000 1015 PLAYA DEL NORTE <1,751 $ 2,457.04
059-521-002-000 1017 PLAYA DEL NORTE < 1,751 $ 2,457.04 059-521-003-000 1021 PLAYA DEL NORTE < 1.751 $ 2.457.04 059-521-004-000 1025 PLAYA DEL NORTE < 1.751 2.457.04
059-521-005-000 1029 PLAYA DEL NORTE < 1.751 2,457.04
059-521-006-000 1031 PLAYA DEL NORTE <1,751 2,457.04
059-521-007-000 1035 PLAYA DEL NORTE < 1,751 2,457.04
059-521-008-000 1039 PLAYA DEL NORTE < 1,751 $ 2,457.04 059-521-009-000 1043 PLAYA DEL NORTE <1,751 2,457.04
059-521-010-000 1045 PLAYA DEL NORTE < 1,751 $ 2,457.04 059-521-011-000 1047 PLAYA DEL NORTE < 1,751 $ 2.457.04 059-521-012-000 1049 PLAYA DEL NORTE < 1.751 2.457.04
059-521-013-000 1051 PLAYA DEL NORTE < 1,751 $ 2.457.04 KOPPEL GRUBER Page 4 of 7
Prepared by PURBIC PINANCY

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-521-014-000 1053 PLAYA DEL NORTE < 1.751 2.457.04
1055 PLAYA DEL NORTE < 1,751 6A GA 2.457.04
059-521-015-000
059-521-016-000 1057 PLAYA DEL NORTE < 1.751 $ 2.457.04 059-521-017-000 1059 PLAYA DEL NORTE < 1,751 $ 2,457.04 059-521-018-000 2608 VAJO STATION < 1,751 2.457.04
059-521-019-000 2604 VAJO STATION < 1,751 2,457.04
059-521-020-000 2600 VAJO STATION < 1,751 $ 2,457.04
059-522-001-000 2608 DEL NORTE ST < 1,751 2,457.04
059-522-002-000 2606 DEL NORTE ST < 1,751 2,457.04
059-522-003-000 2604 DEL NORTE ST < 1.751 $ 2,457.04
059-522-004-000 2600 DEL NORTE ST < 1.751 S 2,457.04
059-522-005-000 1018 PLAYA DEL NORTE < 1.751 2.457.04
059-522-006-000 1024 PLAYA DEL NORTE < 1,751 2,457.04
059-522-007-000 1026 PLAYA DEL NORTE <1,751 2,457.04
059-522-008-000 1028 PLAYA DEL NORTE < 1,751 2,457.04
059-522-009-000 1032 PLAYA DEL NORTE < 1,751 2,457.04
059-522-010-000 1034 PLAYA DEL NORTE < 1,751 2,457.04
059-522-011-000 1035 PASEO DEL OCASO < 1,751 2,457.04
059-522-012-000 1031 PASEO DEL OCASO < 1.751 S 2,457.04 059-522-013-000 1029 PASEO DEL OCASO <1,751 S 2,457.04
059-522-014-000 1025 PASEO DEL OCASO < 1,751 2.457.04
059-522-015-000 1021 PASEO DEL OCASO <1,751 2,457.04
059-522-016-000 1017 PASEO DEL OCASO < 1,751 2,457.04
059-523-001-000 1042 PLAYA DEL NORTE < 1,751 $ 2,457.04 059-523-002-000 1048 PLAYA DEL NORTE <1,751 6A GA 2,457.04 059-523-003-000 1052 PLAYA DEL NORTE < 1,751 2,457.04
059-523-004-000 3007 VAJO STA < 1,751 $ 2,457.04
059-523-005-000 2601 VAHO < 1,751 $ 2,457.04
059-523-006-000 1053 PASEO DEL OCASO <1,751 2.457.04
059-523-007-000 1049 PASEO DEL OCASO < 1,751 2,457.04
059-523-008-000 1043 PASEO DEL OCASO < 1,751 S 2,457.04 059-524-001-000 1012 PASEO DEL OCASO < 1,751 2,457.04
059-524-002-000 1018 PASEO DEL OCASO <1,751 $ 2,457.04
059-524-003-000 1024 PASEO DEL OCASO <1,751 2,457.04
059-524-004-000 1028 PASEO DEL OCASO < 1.751 2.457.04
059-524-005-000 1032 PASEO DEL OCASO < 1,751 2,457.04
059-524-006-000 1036 PASEO DEL OCASO <1,751 2,457.04
Prepared by KoPPEL GRUBER Page 5 of 7

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL
BER

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-524-007-000 2517 G FIGUEROA AVE 2,251 - 2,500 $ 2,868.04 059-524-008-000 2513 G FIGUEROA AVE 2,501 - 2,750 2,904.04 059-524-009-000 2509 G FIGUEROA AVE 2,251 - 2,500 $ 2,868.04 059-524-010-000 2505 G FIGUEROA AVE 2,501 - 2,750 $ 2,904.04 059-524-011-000 2501 G FIGUEROA AVE 2,251 - 2,500 2,868.04 059-524-012-000 1035 SPUD MORENO ST 2,501 - 2,750 $ 2,904.04 059-524-013-000 1031 SPUD MORENO ST 2,251 - 2,500 2,868.04 059-524-014-000 1029 SPUD MORENO ST 1,751 - 2,000 2,636.04 059-524-015-000 1025 SPUD MORENO ST 2,251 - 2,500 S 2,868.04 059-524-016-000 1021 SPUD MORENO ST 1,751 - 2,000 S 2,636.04 059-524-017-000 1017 SPUD MORENO ST 2,251 - 2,500 2,868.04 059-524-018-000 1013 SPUD MORENO ST 1,751 - 2,000 S 2,636.04 059-524-019-000 1012 SOLEDAD < 1,751 2,457.04
059-524-020-000 1018 SOLEDAD 2,251 - 2,500 2,868.04
059-524-021-000 1024 SOLEDAD 2,251 - 2,500 S 2,868.04
059-524-022-000 1028 SOLEDAD 2,501 - 2,750 2,904.04
059-524-023-000 1032 SOLEDAD 2,501 - 2,750 2,904.04
059-524-024-000 1029 SOLEDAD 2,251 - 2,500 $ 2,868.04
059-524-025-000 1025 SOLEDAD 2,251 - 2,500 2,868.04
059-524-026-000 1021 SOLEDAD 1,751 - 2,000 2,636.04
059-524-027-000 1017 SOLEDAD < 1,751 2,457.04
059-524-028-000 1013 SOLEDAD < 1,751 2,457.04
059-525-001-000 1076 PASEO DEL OCASO PREPAID 608.04
059-525-002-000 1072 PASEO DEL OCASO < 1,751 $ 2,457.04 059-525-003-000 1068 PASEO DEL OCASO < 1,751 $ 2,457.04 059-525-004-000 1064 PASEO DEL OCASO < 1,751 2,457.04
059-525-005-000 1060 PASEO DEL OCASO 1,751 - 2,000 $ 2,636.04 059-525-006-000 1056 PASEO DEL OCASO < 1,751 $ 2,457.04 059-525-007-000 1052 PASEO DEL OCASO < 1.751 $ 2.457.04 059-525-008-000 1048 PASEO DEL OCASO < 1,751 2,457.04
059-525-009-000 1044 PASEO DEL OCASO < 1,751 6A 6A 1 2,457.04 059-525-010-000 1040 PASEO DEL OCASO < 1,751 $ 2,457.04 059-525-011-000 1045 VIA BARRANCA > 3,250 $ 3,627.04
059-525-012-000 1049 VIA BARRANCA 2,001 - 2,250 2,725.04 059-525-013-000 1053 VIA BARRANCA >3,250 3,627.04
059-525-014-000 1057 VIA BARRANCA 3.001 - 3,250 3.189.04 059-525-015-000 1061 VIA BARRANCA > 3,250 3.627.04
KOPPEL GRUBER Page 6 of 7
Prepared by PURLIC PINANC

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
FISCAL YEAR 2022/23 PRELIMINARY TAX ROLL
EaR

CALEXICO

ASSESSOR'S TAX CLASS SQUARE

PARCEL NUMBER SITUS ADDRESS FOOTAGE LEVY
059-525-016-000 1065 VIA BARRANCA 3.001 - 3,250 3,189.04 059-525-017-000 1069 VIA BARRANCA 2.001 - 2,250 $ 2,725.04 059-525-018-000 1073 VIA BARRANCA 3.001 - 3,250 3,189.04 059-525-019-000 1077 VIA BARRANCA 3.001 - 3,250 $ 3,189.04 059-525-020-000 1080 VIA BARRANCA 3,001 - 3,250 $ 3,189.04 059-525-021-000 1076 VIA BARRANCA > 3,250 3,627.04
059-525-022-000 1072 VIA BARRANCA 3,001 - 3,250 $ 3,189.04 059-525-023-000 1068 VIA BARRANCA > 3,250 3,627.04
059-525-024-000 1064 VIA BARRANCA 3.001 - 3,250 3,189.04 059-525-025-000 1060 VIA BARRANCA > 3,250 3.627.04
059-525-026-000 1056 VIA BARRANCA 3,001 - 3,250 3,189.04 059-525-027-000 1052 VIA BARRANCA > 3,250 3,627.04
059-525-028-000 1048 VIA BARRANCA 2,001 - 2,250 2,725.04 059-525-029-000 1044 VIA BARRANCA 3,001 - 3,250 3,189.04 059-525-030-000 1045 SPUD MORENO ST < 1,751 2,457.04
059-525-031-000 1049 SPUD MORENO ST < 1,751 2,457.04
059-525-032-000 1053 SPUD MORENO ST < 1,751 $ 2,457.04
059-525-033-000 1057 SPUD MORENO ST < 1,751 2,457.04
059-525-034-000 1065 SPUD MORENO ST < 1,751 2,457.04
059-525-035-000 1069 SPUD MORENO ST < 1.751 2,457.04
059-525-036-000 1073 SPUD MORENO ST < 1.751 2,457.04
059-525-037-000 1077 SPUD MORENO ST < 1,751 S 2,457.04
059-525-038-000 1081 SPUD MORENO ST < 1,751 S 2,457.04
059-525-039-000 1085 SPUD MORENO ST < 1,751 2.457.04
Total Levy $ 1,184,474.88
Total Parcel Count 246
Prepared by Koppie GRUBER Page 7 of 7
ATTACHMENT 3

DELINQUENCY REPORT
The following page shows the delinquent FY 2021/22 special taxes for CFD No. 2005-1.

FIRST INSTALLMENT DELINQUENCY REPORT
FISCAL YEAR 2021/2022

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1
COUNTY FUND NUMBER: 92110

LEVY AND DELINQUENCY SUMMARY
as of: April 13, 2022
Total Amount Levied: $1,170,717.10 Total Amount Delinquent: $259,040.98 Total Parcels Levied: 246 Number of Parcels Delinquent: 9 Total Amount Collected: $326,317.57 Delinquent Percentage: 44.25%

DELINQUENCY DETAIL
Assessors Parcel Applied Special Delinquent
Vumber Owner** Mailing Address** Tax Amount Amount
059-491-003-000 PCG-LA JOLLA PALMS, L P 2030 MAIN ST $ 170,217.54 $ 85,108.77 059-492-019-000 O CAMPO DANIEL & ORTEGA 1005 F TORRES ST $ 2,581.00 $ 1,290.50 059-492-019-000 O CAMPO DANIEL & ORTEGA 1005 F TORRES ST $ 574.92 $ 287.46 059-493-013-000 PACHECO LUIS 1033 F HERRERA ST $ 2,296.00 $ 1,148.00 059-493-013-000 PACHECO LUIS 1033 F HERRERA ST $ 574.92 $ 287.46 059-496-007-000 HIRJ HOLDINGS LLC 1056 F TORRES ST $1,163.74 $ 581.87 059-496-008-000 HIRJ HOLDINGS LLC 1056 F TORRES ST $1,163.74 $581.87 059-496-009-000 HIRJ HOLDINGS LLC 1056 F TORRES ST $ 1,163.74 $581.87 059-496-010-000 HIRJ HOLDINGS LLC 1056 F TORRES ST $ 1,349.94 $ 674.97 059-500-003-000 PCC-LA JOLLA PALMS LP 2030 MAIN ST $ 333,840.50 $ 166,920.25 059-525-019-000 HEREDIA MARCO A 1077 VIA BARRANCA $ 2,581.00 $ 1,290.50 *• Information based on 2021/2022 Secured Roll data.

Printed on: April 25, 2022 KOPPEL GRUBER Page 1 of 2

BLIC FINANC

DELINQUENCY DETAIL
Assessors Parcel Applied Special Delinquent
Number Owner** Mailing Address** Tax Amount Amount
059-525-019-000 HEREDIA MARCO A 1077 VIA BARRANCA $ 574.92 $ 287.46 Total Delinquent Amount: $ 259,040.98
** Information based on 2021/2022 Secured Roll data.

Printed on: April 25, 2022 KOPPEL GRUBER Page 2 of 2
ATTACHMENT 4

BOUNDARY MAP
The following page shows the recorded boundary map for CFD No. 2005-1.

Assess. CommFae Dist 2-35
sed basdess.

Alago Were

MEADOWS
RD.

COLE PROPOSED BOUNDARIES
MuniFinancial COMMUNITY FACILITIES DISTRICT NO. 2005-1
(HEARTHSTONE)

STATE OF CALFCIA
ATTACHMENT 5

DEBT SERVICE SCHEDULE
The following page shows the debt service schedule for the Bonds.

CITY OF CALEXICO
$14,710,000 COMMUNITY FACILITIES DISTRICT NO. 2005-1 (HEARTHSTONE) 2006 SPECIAL TAX BONDS

DEBT SERVICE SCHEDULE
CUSIP Coupon Rate Maturity Date Principal Interest Total Debt 129515AL6 5.25% 09-01-2022 $ 460,000.00 $ 547,002.50 $ 1,007,002.50 129515AL6 5.25% 09-01-2023 $ 485,000.00 $ 522,852.50 $ 1,007,852.50 129515AL6 5.25% 09-01-2024 $ 510,000.00 $ 497,390.00 $ 1,007,390.00 129515AL6 5.25% 09-01-2025 $ 535,000.00 $ 470,615.00 $ 1,005,615.00 129515AL6 5.25% 09-01-2026 $ 560,000.00 $ 442,527.50 $ 1,002,527.50 129515AM4 5.50% 09-01-2027 $ 590,000.00 $ 413,127.50 $ 1,003,127.50 129515AM4 5.50% 09-01-2028 $ 625,000.00 $ 380,812.50 $ 1,005,812.50 129515AM4 5.50% 09-01-2029 $ 655,000.00 $ 346,597.50 $ 1,001,597.50 129515AM4 5.50% 09-01-2030 $ 690,000.00 $ 310,772.50 $ 1,000,772.50 129515AM4 5.50% 09-01-2031 $ 730,000.00 $273,047.50 $ 1,003,047.50 129515AM4 5.50% 09-01-2032 $ 770,000.00 $ 233,160.00 $ 1,003,160.00 129515AM4 5.50% 09-01-2033 $ 810,000.00 $ 191,110.00 $ 1,001,110.00 129515AM4 5.50% 09-01-2034 $ 850,000.00 $ 146,907.50 $ 996,907.50 129515AM4 5.50 % 09-01-2035 $ 900,000.00 $ 100,552.50 $ 1,000,552.50 129515AM4 5.50 % 09-01-2036 $ 945,000.00 $ 51,490.00 $ 996,490.00 $ 10,115,000.00 $ 4,927,965.00 $ 15,042,965.00
Prepared by: KoPEL GRUBER
As of: 04-13-2022 Page 1 of 1
ATTACHMENT 6

DEVELOPMENT MAP
The following page shows the development map for CFD No. 2005-1.

CITY OF CALEXICO
COMMUNITY FACILITIES DISTRICT NO. 2005-1 (HEARTHSTONE)
AS OF MARCH 1, 2022
Playa del Norte
Paseo del Ocaso-
Playa del Norte
Via Barranca
Soledad Ct
Spud Merene St-
F Torres St-
Zuniga Ct- *-tanos Ct
-El Berro
La Jolla Palms Blvd-
Legend
F Herrera St
Developed Property
Undeveloped Property

Calexico City CouncilJune 1, 2022

Calexico City Council
June 1, 2022