San Marcos City Council
May 14, 2024

PRELIMINARY OFFICIAL STATEMENT DATED _________, 2024This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NEW ISSUE—BOOK-ENTRY ONLY Rating: Insured Bonds: S&P “___” Uninsured Bonds: S&P “___”
In the opinion of Best Best & Krieger LLP, Riverside, California (“Bond Counsel”), subject, however, to certain qualifications described in this Official Statement, under existing statutes, regulations, rulings and judicial decisions, and assuming certain representations and compliance with certain covenants and requirements described herein, the interest on the Bonds is excluded from gross income for federal income tax purposes, and interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income tax. See the caption “CONCLUDING INFORMATION—Tax Matters.” COUNTY OF SAN DIEGO STATE OF CALIFORNIA
$17,240,000*

SAN MARCOS PUBLIC FINANCING AUTHORITY

SPECIAL TAX REVENUE REFUNDING BONDS
SERIES 2024A
Dated: Date of Delivery Due: September 1, as shown on the inside cover page The San Marcos Public Financing Authority Special Tax Revenue Refunding Bonds, Series 2024A (the “Bonds”), are being issued by the San Marcos Public Financing Authority (the “Authority”) pursuant to that certain Indenture of Trust, dated as of _________ 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), and will be secured as described herein. See the caption “SECURITY FOR THE BONDS.” The Bonds are being issued: (i) to finance the purchase by the Authority of 17 series of special tax refunding bonds (the “Special Tax Refunding Bonds”) which are being issued by the City of San Marcos Community Facilities District No. 99-01 (the “Community Facilities District”) for Improvement Areas A1, A2, B1, B2, C1, D1, F2/V2, G3, H1A, H1B, J, M, N1, N2, R1, R2, and V1A (each, an “Improvement Area” and collectively, the “Improvement Areas”); (ii) to provide cash for deposit in the Reserve Fund relating to the Bonds; (iii) to purchase a municipal bond insurance policy (the “Policy”) from [BOND INSURER] (“[BOND INSURER]”) to guarantee payment of principal of and interest on the Bonds maturing on September 1 of the years 20__ through 20__, inclusive; and (iv) to pay certain costs of issuance of the Bonds. The Special Tax Refunding Bonds are being issued pursuant to the MelloRoos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “CFD Act”). Each series of Special Tax Refunding Bonds will be secured by special tax liens on taxable property within the respective Improvement Area, to which such series of Special Tax Refunding Bonds relates. The Special Tax Refunding Bonds are being issued to refund certain outstanding special tax revenue refunding bonds of the Authority, which in turn will effect a redemption of certain special tax refunding bonds of the Community Facilities District issued with respect to each of the Improvement Areas. See the captions “INTRODUCTION—Special Tax Refunding Bonds” and “THE FINANCING PLAN.” The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of The Depository Trust Company (“DTC”), New York, New York. Interest on the Bonds will be payable on March 1 and September 1 of each year, commencing September 1, 2024. Purchasers will not receive certificates representing their interest in the Bonds. Individual purchases of Bonds will be in principal amounts of $5,000 or in any integral multiple of $5,000. Payments of principal and interest will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds.

The Bonds are not subject to optional redemption prior to maturity. The Bonds are subject to mandatory redemption from mandatory redemption of the Special Tax Refunding Bonds prior to maturity as set forth herein. See the caption “THE BONDS—Redemption.” The Bonds are special, limited obligations of the Authority, payable solely from Revenues (as such term is defined herein), consisting of debt service payments on the Special Tax Refunding Bonds received by the Trustee, as assignee of the Authority, the owner of the Special Tax Refunding Bonds, and amounts in certain funds and accounts pledged under the Indenture. Debt service payments on the Special Tax Refunding Bonds are calculated to be sufficient to permit the Authority to pay debt service on the Bonds when due. The City of San Marcos (the “City”) has determined that it will not obligate itself to advance funds from its treasury to cover any delinquency on the Special Tax Refunding Bonds. See the caption “SECURITY FOR THE BONDS.” NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE SAN MARCOS FIRE PROTECTION DISTRICT (THE “FPD”), THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER. EXCEPT FOR THE REVENUES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT, GENERAL OR SPECIAL OBLIGATIONS OF THE CITY OR THE FPD OR GENERAL OBLIGATIONS OF THE AUTHORITY, BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE EXCLUSIVELY FROM REVENUES AS PROVIDED IN THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN.

THE SPECIAL TAX REFUNDING BONDS ARE LIMITED OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT. EACH SERIES OF SPECIAL TAX REFUNDING BONDS IS PAYABLE SOLELY FROM THE ASSETS PLEDGED THEREFOR UNDER THE RESPECTIVE SPECIAL TAX REFUNDING BONDS FISCAL AGENT AGREEMENT (AS SUCH TERM IS DEFINED HEREIN) PURSUANT TO WHICH SUCH SPECIAL TAX REFUNDING BONDS ARE ISSUED. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE FPD, THE AUTHORITY OR THE STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE SPECIAL TAX REFUNDING BONDS.

The scheduled payment of principal of and interest on the Bonds maturing on September 1 of the years 20__ through 20__, inclusive (the “Insured Bonds”), when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Insured Bonds by [BOND INSURER] [INSURER LOGO]
See the caption “SPECIAL RISK FACTORS” for a discussion of certain risk factors that should be considered in addition to the other matters set forth herein when evaluating the investment quality of the Bonds. This cover page contains certain information for quick reference only. It is not a complete summary of the Bonds. Investors should read the entire Official Statement to obtain information essential to the making of an informed investment decision.

MATURITY SCHEDULE
(See inside cover)
The Bonds are offered, when, as and if issued and accepted by the Underwriter, subject to approval as to their validity by Best Best & Krieger LLP, Riverside, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Authority and the City by the City Attorney, for the City by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Disclosure Counsel, for the Underwriter by Anzel Galvan LLP, San Francisco, California, for [BOND INSURER] by its counsel and for the Trustee by its counsel. It is anticipated that the Bonds will be available for delivery in book-entry form through the facilities of DTC on or about _________ , 2024. [STIFEL LOGO]
Dated: _________, 2024
$17,240,000*

SAN MARCOS PUBLIC FINANCING AUTHORITY

SPECIAL TAX REVENUE REFUNDING BONDS
SERIES 2024A

MATURITY SCHEDULE
Base CUSIP®†: 79876A
Maturity Date (September 1)
Principal Amount
Interest Rate
Yield
Price
CUSIP®†

CITY OF SAN MARCOS

CITY COUNCIL/AUTHORITY MEMBERS
Rebecca Jones, Mayor and Chair
Sharon Jenkins, Deputy Mayor and Vice Chair
Maria Nunez, Council Member and Authority Member
Ed Musgrove, Council Member and Authority Member
Mike Sannella, Council Member and Authority Member

CITY/AUTHORITY OFFICIALS
Michelle Bender, City Manager/Executive Director
Phillip Scollick, City Clerk/Secretary
Donna Apar, Finance Director/Treasurer
Helen Holmes Peak, City Attorney/Authority Counsel
Bond Counsel
Best Best & Krieger LLP
Riverside, California
Disclosure Counsel
Stradling Yocca Carlson & Rauth LLP
Newport Beach, California
Municipal Advisor
Fieldman, Rolapp & Associates, Inc.

Irvine, California
Special Tax Consultant
30 Three Sixty Public Finance, Inc.

Carlsbad, California
Trustee/Fiscal Agent
U.S. Bank Trust Company, National Association
Los Angeles, California

No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations, other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the Authority, the City, the FPD or the Community Facilities District. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.

The information set forth herein which has been obtained from parties other than the Authority, the City, the FPD and the Community Facilities District is believed to be reliable but is not guaranteed as to accuracy or completeness by the Authority, the City, the FPD or the Community Facilities District. The information and expressions of opinion stated herein are subject to change without notice. The delivery of this Official Statement shall not, under any circumstances, create any implication that there has been no change in the affairs of the Authority, the City, the FPD or the Community Facilities District since the date hereof.

The Underwriter has provided the following sentence for inclusion in this Official Statement:

The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of its responsibilities to investors under the federal securities laws applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information herein relating to the Bonds, the Authority, the Community Facilities District, the Improvement Areas and the City does not purport to be comprehensive or definitive. All references to the Bonds are qualified in their entirety by reference to the Indenture setting forth the terms and descriptions thereof. The summaries and references to any code, act, resolution, the Indenture or the Special Tax Refunding Bonds Fiscal Agent Agreements (as such term is defined herein), and to other statutes and documents in this Official Statement do not purport to be comprehensive or definitive, and are qualified in their entirety by reference to each statute and document.

IN CONNECTION WITH THIS BOND UNDERWRITING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS DESCRIBED HEREIN AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget,” “intend” or similar words. The achievement of certain results or other expectations contained in such forward-looking statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those that have been projected. No assurance is given that actual results will meet the forecasts set forth herein in any way, regardless of the optimism communicated in the information, and such statements speak only as of the date of this Official Statement. The City, the Community Facilities District, the FPD and the Authority disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this Official Statement to reflect any changes in the expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

The City maintains a website; however, the information presented there is not part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. [BOND INSURER] (“[BOND INSURER]”) makes no representation regarding the Insured Bonds or the advisability of investing in the Insured Bonds. In addition, [BOND INSURER] has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding [BOND INSURER] supplied by [BOND INSURER] and presented under the heading “Bond Insurance” and Appendix G—”Specimen Municipal Bond Insurance Policy.” INTRODUCTION 1
Summary 1
Bond Insurance 2
Reserve Fund 2
The Bonds 2
Special Tax Refunding Bonds 2
No Parity Bonds 3
Risk Factors 3
THE FINANCING PLAN 3
THE BONDS 8
Description of the Bonds 8
Redemption 9
Selection of Bonds of a Maturity for Redemption 10
Notice of Redemption 10
Effect of Redemption 10
Transfers and Exchange 11
Debt Service Schedule 11
SECURITY FOR THE BONDS 12
Repayment of the Bonds 12
Payment of the Special Tax Refunding Bonds 16
Levy and Collection of Special Taxes 17
Rates and Methods of Apportionment of Special Taxes 19
No Teeter Plan 20
Covenant to Foreclose 20
Priority of Lien 21
No Obligation of the City Upon Delinquency 21
Prepayment of Special Taxes 21
BOND INSURANCE 22
THE AUTHORITY 22
THE CITY 22
THE COMMUNITY FACILITIES DISTRICT 22
General 22
Improvement Area A1 23
Improvement Area A2 27
Improvement Area B1 31
Improvement Area B2 35
Improvement Area C1 39
Improvement Area D1 43
Improvement Area F2/V2 47
Improvement Area G3 51
Improvement Area H1A 55
Improvement Area H1B 59
Improvement Area J 63
Improvement Area M 67
Improvement Area N1 71
Improvement Area N2 75
Improvement Area R1 79
Improvement Area R2 83
Improvement Area V1A 87
Estimated Assessed Value-to-Lien Ratios 91
SPECIAL RISK FACTORS 92
The Bonds are Limited Obligations of the Authority 92
The Special Tax Refunding Bonds are Limited Obligations 95 The Special Taxes are Not Personal Obligations of the Owners 95 Potential Early Redemption of Bonds from Prepayments 95 Risks of Real Estate Secured Investments Generally 95
Insufficiency of Special Taxes 96
Bankruptcy and Foreclosure Delays 96
FDIC/Federal Government Interests in Properties 97
Direct and Overlapping Debt 98
Disclosures to Future Purchasers 99
Natural Disasters 99
Property Values 100
Hazardous Substances 100
Cumulative Burden of Parity Taxes and Special Assessments 101 Cyber Security 101
Loss of Tax Exemption 101
California Constitution Article XIIIC and Article XIIID 102 Litigation with Respect to Community Facilities Districts 103 No Acceleration 104
Limited Secondary Market 104
Limitations on Remedies 104
Risks Associated with Bond Insurance 105
CONCLUDING INFORMATION 105
Underwriting 105
Municipal Advisor 106
Legal Opinion; Legal Matters 106
Tax Matters 106
No Litigation 108
Rating 108
Continuing Disclosure 108
Miscellaneous 108
APPENDIX A—INFORMATION REGARDING THE CITY OF SAN MARCOS A-1 APPENDIX B—SUMMARY OF CERTAIN PROVISIONS OF BOND DOCUMENTS B-1 APPENDIX C—FORM OF BOND COUNSEL OPINION C-1
APPENDIX D—FORM OF CONTINUING DISCLOSURE AGREEMENT D-1
APPENDIX E—INFORMATION CONCERNING DTC E-1
APPENDIX F—FORM OF RATES AND METHODS OF APPORTIONMENT F-1 APPENDIX G—SPECIMEN MUNICIPAL BOND INSURANCE POLICY G-1 [AREA MAP]
[AERIAL PHOTO – CFD NO. 99-01]
$17,240,000*

SAN MARCOS PUBLIC FINANCING AUTHORITY

SPECIAL TAX REVENUE REFUNDING BONDS
SERIES 2024A

INTRODUCTION
Summary
This Official Statement is provided to furnish certain information in connection with the issuance and sale by the San Marcos Public Financing Authority (the “Authority”) of $17,240,000* aggregate principal amount of San Marcos Public Financing Authority Special Tax Revenue Refunding Bonds, Series 2024A (the “Bonds”).

The Bonds will be issued pursuant to the provisions of an Indenture of Trust, dated as of _________ 1, 2024 (the “Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), and the provisions of the Marks-Roos Local Bond Pooling Act of 1985, as amended, constituting Article 4 of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”). Capitalized undefined terms used in this Official Statement have the meanings ascribed thereto in Appendix B.

The Bonds are being issued to (i) finance the purchase by the Authority of 17 series of special tax refunding bonds (together, the “Special Tax Refunding Bonds”) which are being issued by the City of San Marcos Community Facilities District No. 99-01 (the “Community Facilities District”) for Improvement Areas A1, A2, B1, B2, C1, D1, F2/V2, G3, H1A, H1B, J, M, N1, N2, R1, R2, and V1A (each, an “Improvement Area” and collectively, the “Improvement Areas”); (ii) provide cash for deposit in the Reserve Fund relating to the Bonds; (iii) purchase a municipal bond insurance policy (the “Policy”) from [BOND INSURER] (the “Insurer”) to guarantee payment of principal of and interest on the Bonds maturing on September 1 of the years 20__ through 20__, inclusive; and (iv) pay certain costs of issuance of the Bonds.

As described under the caption “THE FINANCING PLAN,” the proceeds from the sale of the Special Tax Refunding Bonds issued by the Community Facilities District for the Improvement Areas are being used to refund, on a current basis, the Authority’s outstanding Special Tax Revenue Refunding Bonds, Series 2014A (the “Prior Authority Bonds”), which, in turn, will cause the defeasance of 17 series of special tax refunding bonds (collectively, the “Prior Special Tax Bonds”) issued by the Community Facilities District for the Improvement Areas. See the captions “—Special Tax Refunding Bonds” and “THE FINANCING PLAN” for a description of the Special Tax Refunding Bonds.

As the owner of the Special Tax Refunding Bonds, the Authority, under the Indenture, has pledged the payments of principal and interest that it receives on the Special Tax Refunding Bonds to pay debt service on the Bonds. Such payments, together with certain other amounts as specified in the Indenture, comprise the Revenues. The Revenues will be applied to pay principal of, premium, if any, and interest on the Bonds.

Although there are currently a total of 34 improvement areas within the boundaries of the Community Facilities District, only principal and interest payments received by the Authority from the Special Tax Refunding Bonds issued for the 17 Improvement Areas described herein constitute Revenues available to pay principal of, premium, if any, and interest on the Bonds. See the caption “THE COMMUNITY FACILITIES DISTRICT.” The Special Tax Refunding Bonds are limited obligations of the Community Facilities District payable from the applicable Net Special Tax Revenues (as such term is defined under the caption “SECURITY FOR THE BONDS—Payment of the Special Tax Refunding Bonds—General”) pursuant to the respective Special Tax Refunding Bonds Fiscal Agent Agreements (as such term is defined below under the caption “—Special Tax Refunding Bonds”). Each series of Special Tax Refunding Bonds is a separate and distinct obligation secured by special taxes levied against certain taxable properties within the respective Improvement Area to which such series of Special Tax Refunding Bonds relates. Special taxes from an Improvement Area may only be used to pay debt service on the series of Special Tax Refunding Bonds issued for such Improvement Area. See the caption “SECURITY FOR THE BONDS” for a description of the Net Special Tax Revenues and other funds securing the Special Tax Refunding Bonds.

Bond Insurance
Payment of the principal of and interest on the Insured Bonds, constituting the Bonds maturing on September 1 of the years 20__ through 20__, inclusive, will be insured by the Policy to be issued by [BOND INSURER] concurrently with the issuance of the Bonds. See the caption “BOND INSURANCE.” Payment of the principal of and interest on the Bonds maturing on September 1 of the years 20__ through 20__, inclusive (the “Uninsured Bonds”) are not insured by a municipal bond insurance policy.

Reserve Fund
A Reserve Fund for the Bonds has been established pursuant to the Indenture. The Authority will deposit a portion of the proceeds of the Bonds in an amount equal to $___________, which constitutes the Reserve Requirement as of the date of issuance of the Bonds, in the Reserve Fund. See the caption “SECURITY FOR THE BONDS—Repayment of the Bonds—Establishment and Application of Reserve Fund.” The Bonds
The net proceeds of the Bonds will be used to acquire the Special Tax Refunding Bonds.

The Bonds are payable from and secured by the Revenues. “Revenues” is defined under the Indenture to mean: (a) all amounts derived from the Special Tax Refunding Bonds; and (b) investment income with respect to the funds and accounts established under the Indenture (excepting therefrom the Residual Account and the Rebate Fund). The principal and interest payments on the Special Tax Refunding Bonds received by the Authority, as the owner of the Special Tax Refunding Bonds, are the primary source of funds to repay the Bonds. See the caption “SECURITY FOR THE BONDS.” NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE SAN MARCOS FIRE PROTECTION DISTRICT (THE “FPD”), THE STATE OF CALIFORNIA (THE “STATE”) OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER. EXCEPT FOR THE REVENUES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT, GENERAL OR SPECIAL OBLIGATIONS OF THE CITY OR THE FPD OR GENERAL OBLIGATIONS OF THE AUTHORITY, BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE EXCLUSIVELY FROM REVENUES AS PROVIDED IN THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN.

Special Tax Refunding Bonds
The Special Tax Refunding Bonds will be issued concurrently with the Bonds pursuant to the MelloRoos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the “CFD Act”), and separate Fiscal Agent Agreements, each dated as of _________ 1, 2024 (each, a “Special Tax Refunding Bonds Fiscal Agent Agreement,” and collectively, the “Special Tax Refunding Bonds Fiscal Agent Agreements”), by and between the Community Facilities District and U.S. Bank Trust Company, National Association, as fiscal agent (the “Fiscal Agent”).

Each series of Special Tax Refunding Bonds will be separately payable by special taxes (the “Special Taxes”) levied against certain taxable real property within the boundaries of the applicable Improvement Area. See the caption “SECURITY FOR THE BONDS—Payment of the Special Tax Refunding Bonds.” The Special Taxes collected in one Improvement Area cannot be used to pay debt service on the Special Tax Refunding Bonds of another community facilities district or Improvement Area, as applicable.

THE SPECIAL TAX REFUNDING BONDS ARE LIMITED OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT. EACH SERIES OF SPECIAL TAX REFUNDING BONDS IS PAYABLE SOLELY FROM THE ASSETS PLEDGED THEREFOR UNDER THE RESPECTIVE SPECIAL TAX REFUNDING BONDS FISCAL AGENT AGREEMENT PURSUANT TO WHICH SUCH SPECIAL TAX REFUNDING BONDS ARE ISSUED. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE FPD, THE AUTHORITY OR THE STATE, OR ANY POLITICAL SUBDIVISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE SPECIAL TAX REFUNDING BONDS.

No Parity Bonds
Pursuant to the Indenture, the Authority has covenanted not to create, or permit the creation of, any pledge, lien, charge, or other encumbrance upon the Revenues and other assets pledged or assigned under the Indenture while any of the Bonds are outstanding, except the pledge and assignment created by the Indenture.

Pursuant to each Special Tax Refunding Bonds Fiscal Agent Agreement, the Community Facilities District has covenanted not to issue additional obligations entitled to a lien on the Net Special Tax Revenues of the respective Improvement Area, other than for the purpose of refunding the Special Tax Refunding Bonds relating to such Improvement Area.

Risk Factors
See the caption “SPECIAL RISK FACTORS” for a discussion of certain risk factors which should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds generally.

Brief descriptions of the Bonds, the security for the Bonds, the Special Tax Refunding Bonds, the Community Facilities District, the Improvement Areas, the Authority, the City and other information are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. The descriptions in this Official Statement of the Bonds, the Special Tax Refunding Bonds, the Indenture, the Special Tax Refunding Bonds Fiscal Agent Agreements and other documents are qualified in their entirety by reference to the forms thereof and the information with respect thereto included in the Bonds, the Special Tax Refunding Bonds, the Indenture, the Special Tax Refunding Bonds Fiscal Agent Agreements and other documents.

THE FINANCING PLAN
The Bonds are being issued in order to provide funds to purchase the Special Tax Refunding Bonds, which are described in the following table.

TABLE 1

SPECIAL TAX REFUNDING BONDS
Special Tax Refunding Bonds
Principal Amount*
Final Maturity Date
City of San Marcos Community Facilities District No. 9901 Improvement Area A1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area A1 Special Tax Refunding Bonds”) $742,620.15
September 1, 2032
City of San Marcos Community Facilities District No. 9901 Improvement Area A2 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area A2 Special Tax Refunding Bonds”) 822,878.43
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area B1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area B1 Special Tax Refunding Bonds”) 782,842.58
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area B2 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area B2 Special Tax Refunding Bonds”) 637,337.38
September 1, 2032
City of San Marcos Community Facilities District No. 9901 Improvement Area C1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area C1 Special Tax Refunding Bonds”) 1,321,853.79
September 1, 2034
City of San Marcos Community Facilities District No. 9901 Improvement Area D1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area D1 Special Tax Refunding Bonds”) 681,454.79
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area F2/V2 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area F2/V2 Special Tax Refunding Bonds”) 1,582,990.45
September 1, 2038
City of San Marcos Community Facilities District No. 9901 Improvement Area G3 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area G3 Special Tax Refunding Bonds”) 496,486.10
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area H1A Special Tax Refunding Bonds, Series 2024 (the “Improvement Area H1A Special Tax Refunding Bonds”) 542,815.88
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area H1B Special Tax Refunding Bonds, Series 2024 (the “Improvement Area H1B Special Tax Refunding Bonds”) 526,949.91
September 1, 2034
City of San Marcos Community Facilities District No. 9901 Improvement Area J Special Tax Refunding Bonds, Series 2024 (the “Improvement Area J Special Tax Refunding Bonds”) 2,302,782.23
September 1, 2038
City of San Marcos Community Facilities District No. 9901 Improvement Area M Special Tax Refunding Bonds, Series 2024 (the “Improvement Area M Special Tax Refunding Bonds”) 1,587,703.10
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area N1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area N1 Special Tax Refunding Bonds”) 979,309.36
September 1, 2033
City of San Marcos Community Facilities District No. 9901 Improvement Area N2 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area N2 Special Tax Refunding Bonds”) 957,379.44
September 1, 2034
City of San Marcos Community Facilities District No. 9901 Improvement Area R1 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area R1 Special Tax Refunding Bonds”) 1,080,778.86
September 1, 2034
City of San Marcos Community Facilities District No. 9901 Improvement Area R2 Special Tax Refunding Bonds, Series 2024 (the “Improvement Area R2 Special Tax Refunding Bonds”) 846,628.41
September 1, 2034
City of San Marcos Community Facilities District No. 9901 Improvement Area V1A Special Tax Refunding Bonds, Series 2024 (the “Improvement Area V1A Special Tax Refunding Bonds”) 1,347,189.13
September 1, 2038
* Preliminary, subject to change.

Source: the Underwriter.

Proceeds from the sale of the Special Tax Refunding Bonds, together with certain available funds on hand, including moneys held in certain funds relating to the Prior Special Tax Bonds, will be used to refund the Prior Authority Bonds on _________, 2024.

Pursuant to that cetain Indenture of Trust, dated as of October 1, 2014 (the “Prior Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as successor to U.S. Bank National Association, under which the Prior Authority Bonds were issued, and pursuant to those certain Fiscal Agent Agreements, each dated as of October 1, 2014 (together, the “Prior Fiscal Agent Agreements”), by and between the Community Facilities District and U.S. Bank Trust Company, National Association, as successor to U.S. Bank National Association, under which the Prior Special Tax Bonds were issued, the defeasance of the Prior Authority Bonds will cause a corresponding defeasance of the Prior Special Tax Bonds.

Under that certain Escrow Deposit and Trust Agreement, dated as of _________ 1, 2024 (the “Escrow Agreement”), by and among the Authority, the Community Facilities District and U.S. Bank Trust Company, National Association, as escrow bank (the “Escrow Bank”), on the date the Bonds are issued the Community Facilities District will deliver a portion of the proceeds of the Special Tax Refunding Bonds, together with moneys held in certain funds related to the Prior Authority Bonds and the Prior Special Tax Bonds to the Escrow Bank for deposit in the escrow fund established under the Escrow Agreement (the “Escrow Fund”) and certain securities will be purchased with such amounts. From the moneys and securities, together with all investment income earnings thereon on deposit in the Escrow Fund, the Escrow Bank will pay on September 2, 2024 the redemption price of the Prior Authority Bonds equal to the principal amount thereof to be redeemed, together with interest accrued thereon to the redemption date, without premium. See Tables 2 and 3 below and “MISCELLANEOUS — Verification of Mathematical Accuracy” below.

Upon the foregoing deposits into the Escrow Fund, the Prior Authority Bonds will be defeased pursuant to the provisions of the Prior Indenture as of the date of issuance of the Bonds. The defeasance of the Prior Authority Bonds will cause a corresponding defeasance of the Prior Special Tax Bonds pursuant to the provisions of the respective Prior Fiscal Agent Agreements, as of the date of issuance of the Bonds.

The amounts held by the Escrow Bank in the Escrow Fund are pledged solely to the payment of the Prior Authority Bonds. The funds deposited in the Escrow Funds will not be available for the payments of principal of and interest on the Bonds.

The proceeds from the sale of the Bonds, the Special Tax Refunding Bonds and certain moneys held in funds of the Prior Authority Bonds and the Prior Special Tax Bonds will be used as described in the following two tables, respectively.

TABLE 2

ESTIMATED SOURCES AND USES
BONDS
The estimated sources and uses of funds with respect to the Bonds and amounts transferred by the City and the Community Facilities District to the Trustee are set forth in the following table:

Sources of Funds
Principal Amount of Bonds
$
[Plus/Less] Original Issue [Premium/Discount]
Plus Other Available Moneys(1)
Total Sources
$
Uses of Funds
Special Tax Refunding Bonds Purchase Fund(2)
$
Reserve Fund(3)
Underwriter’s Discount
Costs of Issuance(4)
Total Uses
$
(1) Includes moneys on deposit in funds and accounts of the Prior Authority Bonds and the Prior Special Tax Bonds. (2) Amounts in the Special Tax Refunding Bonds Purchase Fund will be used to purchase the Special Tax Refunding Bonds together with the amount credited to the Reserve Fund and amounts paid as Costs of Issuance. (3) Equal to the Reserve Requirement on the date the Bonds are issued. (4) Includes legal fees, Municipal Advisor fees, printing fees, Trustee fees, Fiscal Agent fees, Escrow Bank fees, Special Tax Consultant fees, premium for the Policy and other Costs of Issuance.

The estimated sources and uses of funds with respect to the Special Tax Refunding Bonds and amounts transferred from the Prior Authority Bonds and Prior Special Tax Bonds are set forth in the following table:
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 3

ESTIMATED SOURCES AND USES
Special Tax Refunding BondS
Improvement Area A1
Improvement Area A2
Improvement Area B1
Improvement Area B2
Improvement Area C1
Improvement Area D1
Improvement Area F2/V2
Improvement Area G3
Improvement Area H1A
Sources of Funds
Principal Amount of Special Tax Refunding Bonds
Plus Share of Premium on Bonds
Plus Other Available Moneys(1)
Total Sources
Uses of Funds
Deposit to Escrow Fund(2)
Share of Reserve Fund
Share of Underwriter’s Discount on Bonds
Share of Costs of Issuance and Other Uses(3)
Total Uses
Improvement Area H1B
Improvement Area J
Improvement Area M
Improvement Area N1
Improvement Area N2
Improvement Area R1
Improvement Area R2
Improvement Area V1A
Total
Sources of Funds
Principal Amount of Special Tax Refunding Bonds
Plus Share of Premium on Bonds
Plus Other Available Moneys(1)
Total Sources
Uses of Funds
Deposit to Escrow Fund(2)
Share of Reserve Fund
Share of Underwriter’s Discount on Bonds
Share of Costs of Issuance and Other Uses(3)
Total Uses
(1) Includes moneys on deposit in funds and accounts of the Prior Authority Bonds and the Prior Special Tax Bonds. (2) To be applied to refund the Prior Authority Bonds, the defeasance of which will cause a corresponding defeasance of the Prior Special Tax Bonds. (3) Includes share of legal fees, Municipal Advisor fees, printing fees, Trustee fees, Fiscal Agent fees, Escrow Bank fees, Special Tax Consultant fees, premium for the Policy and other Costs of Issuance.

THE BONDS
Description of the Bonds
The Bonds will be issued in fully registered form and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository for the Bonds. Ownership interests in the Bonds may be purchased in book-entry form only in denominations of $5,000 or any integral multiple thereof. The Bonds will be dated their date of delivery. The Bonds will bear interest at the rates per annum and will mature, subject to the redemption provisions set forth below, on the dates and in the principal amounts, all as set forth on the inside cover page of this Official Statement.

Interest on the Bonds is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2024 (each, an “Interest Payment Date”), to the persons in whose names ownership of the Bonds is registered on the Bond register at the close of business on the immediately preceding Record Date, except as provided in the Indenture. “Record Date” means, with respect to any Interest Payment Date, the fifteenth calendar day of the month immediately preceding such Interest Payment Date. Interest on the Bonds will be calculated on the basis of a 360day year comprised of twelve 30day months. Interest on the Bonds will be payable from the Interest Payment Date next preceding the date of authentication of that Bond, unless (i) a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date; (ii) a Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Dated Date provided in the form of the Bonds; or (iii) interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date.

Interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date will be payable to the Person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice of which will be given to such Owner not less than 15 days prior to such Special Record Date. Interest will be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Bond Owners at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date; or by wire transfer made on such Interest Payment Date to any Owner of $1,000,000 or more in aggregate principal amount of Bonds who has requested such transfer pursuant to written notice filed with the Trustee on or before the preceding Record Date.

The principal of and redemption premium, if any, on the Bonds will be paid in lawful money of the United States of America at the Principal Office of the Trustee. Payment of principal on any Bond will be made only upon presentation and surrender of such Bond at the Principal Office of the Trustee at maturity or the prior redemption thereof. The Bonds will mature on September 1 in the principal amounts and years as shown on the inside cover page hereof and are subject to mandatory redemption as described under the caption “—Redemption.” The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., as nominee of DTC. Payment of interest with respect to any Bond registered as of each Record Date in the name of Cede & Co. will be made by wire transfer of same-day funds to the account of Cede & Co. See Appendix E—”INFORMATION CONCERNING DTC.” Redemption
No Optional Redemption. The Bonds are not subject to optional redemption prior to maturity.

Mandatory Redemption of the Bonds from Principal Prepayments of the Special Tax Refunding Bonds. The Bonds are subject to redemption on any Interest Payment Date, prior to maturity, as a whole or in part from such maturities, as are selected by the Authority, from and to the extent of Principal Prepayments with respect to the Special Tax Refunding Bonds at the following redemption prices (expressed as percentages of the principal amount of the Bonds to be redeemed), together with accrued interest thereon to the date of redemption:

Redemption Date
Redemption Price
Any Interest Payment Date prior to March 1, 20__
103%
September 1, 20__ and March 1, 20__
102
September 1, 20__ and March 1, 20__
101
September 1, 20__ and any Interest Payment Date thereafter 100
The redemption of Special Tax Refunding Bonds may only be made from a prepayment of Special Taxes in the Improvement Areas. “SPECIAL RISK FACTORS – Potential Early Redemption from Prepayments.” The Special Tax Refunding Bonds are not subject to optional or mandatory sinking fund redemption prior to maturity.

The principal amount of the Bonds to be redeemed from Principal Prepayments of the Special Tax Refunding Bonds will be the greatest principal amount of Bonds, the redemption price of which is less than or equal to such Principal Prepayments, as specified in a Written Request of the Authority delivered to the Trustee. In the event that a Fiscal Agent for any Series of the Special Tax Refunding Bonds mails notice of redemption of any such Special Tax Refunding Bonds which will produce Principal Prepayments, the Trustee will concurrently mail notice of the redemption of Bonds pursuant to the Indenture, such redemption to occur on the date fixed for redemption of such Special Tax Refunding Bonds. On the date of such redemption of such Special Tax Refunding Bonds, the proceeds of any such redemption will be applied by the Trustee to pay the redemption price of Bonds pursuant to the Indenture.

For purposes of the selection of Bonds for redemption from Principal Prepayments of the Special Tax Refunding Bonds, the Bonds will be selected for redemption among maturities by the Authority (evidenced pursuant to a Written Certificate of the Authority delivered to the Trustee at least 60 days prior to the redemption date or such later date as is acceptable to the Trustee) on such basis that the debt service on the Special Tax Refunding Bonds on each Interest Payment Date will be sufficient to pay debt service on the Bonds on such Interest Payment Date, as will be demonstrated in a report of an Independent Financial Consultant filed with the Trustee; provided, however, that no such report need be filed with the Trustee if, after such redemption, no Bonds will be Outstanding.

Purchase in Lieu of Redemption. In lieu of redemption from Principal Prepayments of the Special Tax Refunding Bonds as set forth above under the caption “—Mandatory Redemption of the Bonds from Principal Prepayments of the Special Tax Refunding Bonds,” moneys in the Redemption Account may be used and withdrawn by the Trustee for the purchase of Outstanding Bonds, upon the filing with the Trustee of a Written Certificate of the Authority requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Written Certificate may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase, unless a greater purchase price is permitted under Chapter 5 of Division 7 of Title 1 of the California Government Code and the Authority determines that it will have sufficient amounts in the Revenue Fund, following such purchase, to pay the principal of and interest on the Bonds as the same become due and payable.

Partial Redemption. In the event that only a portion of any Bond is called for redemption, upon surrender of such Bond the Authority will execute and the Trustee will authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond of Authorized Denominations equal in aggregate principal amount or maturity amount, as applicable, representing the unredeemed portion of the Bond to be redeemed.

Selection of Bonds of a Maturity for Redemption
Whenever provision is made in the Indenture for the redemption of less than all of the Bonds of a maturity, the Trustee will select the Bonds to be redeemed from all Bonds of such maturity not previously called for redemption, by lot in any manner which the Authority in its sole discretion deems appropriate and fair. For purposes of such selection, all Bonds will be deemed to be comprised of separate $5,000 Authorized Denominations and such separate Authorized Denominations will be treated as separate Bonds which may be separately redeemed.

Notice of Redemption
Notice of redemption will be mailed by the Trustee, by first class mail, postage prepaid, to the respective Owners of any Bonds designated for redemption at their addresses appearing on the Registration Books and to the Securities Depositories and the Information Services at least 30 days but not more than 60 days prior to the redemption date. Neither the failure to receive such notice nor any defect in the notice so mailed will affect the sufficiency of the proceedings for redemption of such Bonds or the cessation of accrual of interest on the redemption date. Each notice of redemption will state the redemption date, the place or places of redemption, the CUSIP numbers and the Bond numbers of the Bonds to be redeemed, and in the case of Bonds to be redeemed in part only, the respective Authorized Denominations of the principal amount thereof to be redeemed. Each such notice will also state that on said date there will become due and payable on each of said Bonds the principal amount relating thereto or of said specified portion of the principal thereof in the case of a Bond to be redeemed in part only, plus accrued interest, if any, and through which date such interest will accrue, and that from and after such date interest thereon will cease to accrue and will require that such Bonds be then surrendered at the Principal Office of the Trustee. Neither the failure of any Bond Owner to receive any notice so mailed nor any defect therein will affect the sufficiency of the proceedings for redemption of any Bonds nor the cessation of accrual of interest thereon.

The Authority shall have the right to rescind any notice of redemption prior to maturity on or prior to the date fixed for such redemption prior to maturity. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date so fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default under the Indenture. The Authority and Trustee shall have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Trustee shall mail notice of such recession of redemption in the same manner as the original notice of redemption.

Effect of Redemption
Notice having been given as described under the caption “—Notice of Redemption,” and moneys for the redemption (including the interest to the applicable date of redemption and including any applicable premium), having been set aside in the Redemption Account or any of the accounts therein, the Bonds to be redeemed will become due and payable on said date of redemption, and, upon presentation and surrender thereof at the Principal Office of the Trustee, said Bonds will be paid at the redemption price thereof, together with interest, accrued and unpaid to said date of redemption and premium, if any.

If, on said date of redemption, moneys for the redemption of the Bonds to be redeemed, together with interest to said date of redemption, are held by the Trustee so as to be available therefor on such date of redemption, and, if notice of redemption thereof has been given as aforesaid and not cancelled, then, from and after said date of redemption, interest represented by such Bonds will cease to accrue and become payable. All moneys held by or on behalf of the Trustee for the redemption of Bonds will be held in trust for the account of the Owners of the Bonds so to be redeemed without liability for interest thereon.

Notice of the special redemption of Bonds will be given upon receipt of notice of prepayment of the Special Tax Refunding Bonds. See Appendix B—“SUMMARY OF CERTAIN PROVISIONS OF BOND DOCUMENTS.” Transfers and Exchange
So long as the Bonds remain in book-entry form, transfer and exchange of any of the Bonds will be accomplished in accordance with the provisions of such book-entry system. In the event of termination of such book-entry system with respect to the Bonds, the Bonds may be transferred and exchanged in accordance with the terms of the Indenture. See Appendices B and E herein.

Debt Service Schedule
The following is the debt service schedule for the Bonds, assuming no redemptions other than mandatory sinking fund redemptions.

TABLE 4

DEBT SERVICE SCHEDULE
Year Ending (September 1)
Total Aggregate Bonds Debt Service
Bonds
Principal
Interest
Annual Debt Service
Total
Source: the Underwriter.

SECURITY FOR THE BONDS
Repayment of the Bonds
General. The Bonds are special, limited obligations of the Authority payable solely from and secured solely by the Revenues and other amounts pledged therefor under the Indenture. The Bonds will not be deemed to constitute a debt or liability of the City, the FPD, the Community Facilities District, the State, or any political subdivision thereof, other than the Authority. NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE FPD, THE COMMUNITY FACILITIES DISTRICT, THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER. EXCEPT FOR THE REVENUES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT, GENERAL OR SPECIAL OBLIGATIONS OF THE CITY OR THE FPD, OR GENERAL OBLIGATIONS OF THE AUTHORITY, BUT ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE EXCLUSIVELY FROM REVENUES AS PROVIDED IN THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN. Debt service payments on the Special Tax Refunding Bonds have been calculated to be sufficient to permit the Authority to pay debt service on the Bonds when due. The City has determined that it will not obligate itself to advance funds from its treasury to cover any delinquency on the Special Tax Refunding Bonds.

Subject only to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein, all of the Revenues and any other amounts (including proceeds of the sale of the Bonds) held in any fund or account established pursuant to the Indenture (including the Reserve Fund but excluding the Residual Account and the Rebate Fund) and each of the Fiscal Agent Agreements have been pledged by the Authority to secure the full and timely payment of the principal of and interest and premium, if any, on the Bonds in accordance with their terms and the provisions of the Indenture. Such pledge constitutes a first lien on and security interest in such assets and will attach, be perfected, and be valid and binding from and after delivery of the Bonds by the Trustee, and the Revenues and other items pledged under the Indenture will immediately be subject to the lien of such pledge without any physical delivery thereof or further act.

Subject to the provisions of the Indenture, the Authority has pledged and assigned to the Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues, all of the moneys, and securities in the funds and accounts created under the Indenture (including the Reserve Fund but excluding the Residual Account and the Rebate Fund), as their interests appear, and other amounts pledged in the Indenture, and all of the right, title, and interest of the Authority in the Special Tax Refunding Bonds. The Authority will collect and receive, or cause to be collected and received by the Trustee, all such Revenues, and Revenues collected or received by the Authority, or collected and received by the Trustee on behalf of the Authority, will be deemed to be held, and to have been collected or received, by the Authority, in trust, and will be paid to the Trustee as set forth in the Indenture. The Trustee is also entitled to and may take all steps, actions and proceedings reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, by itself, all of the rights of the Authority and all of the obligations of the Community Facilities District under and with respect to the Special Tax Refunding Bonds.

Revenue Fund. The Authority will establish with the Trustee a special fund designated the “Revenue Fund” which the Trustee will maintain and hold in trust. Within the Revenue Fund, the Trustee will establish special accounts designated as the “Principal Account,” the “Interest Account,” the “Redemption Account” and the “Residual Account.” Such fund and accounts will be held and maintained as separate and distinct funds and accounts. All Revenues, except for investment earnings on the Reserve Fund which will be applied according to the Indenture, will be promptly transferred to the Trustee by the Authority and deposited by the Trustee upon receipt thereof in the Revenue Fund. All Revenues deposited with the Trustee will be held, disbursed, allocated, and applied by the Trustee only as provided in the Indenture.

On or before each Interest Payment Date, the Trustee will transfer all Revenues (other than Revenues representing Principal Prepayments which will be transferred as described in the Indenture) then in the Revenue Fund into the following funds and accounts based upon the following deposit requirements and in the following order of priority, the requirements of each such account (including the making up of any deficiencies in any such account resulting from lack of Revenues sufficient to make any earlier required deposit) at the time of deposit to be satisfied before any deposit is made to any account subsequent in priority:
(a) The Trustee will deposit in the Interest Account an amount which, together with the amounts then on deposit therein, including amounts, if any, transferred by the Trustee from the Reserve Fund pursuant to the Indenture, is sufficient to cause the aggregate amount on deposit in the Interest Account to equal the amount of interest coming due and payable on the Bonds on such Interest Payment Date and any amount of interest previously due and unpaid. (b) The Trustee will deposit in the Principal Account, if necessary, an amount which, together with the amounts then on deposit therein, including amounts, if any, transferred from the Reserve Fund pursuant to the Indenture, is sufficient to cause the aggregate amount on deposit in the Principal Account to equal the amount of principal or mandatory sinking account payment coming due and payable on the Bonds within the Bond Year and any amount of principal previously due and unpaid. (c) The Trustee will deposit in the Reserve Fund, if necessary, an amount which is sufficient to cause the aggregate amount on deposit in the Reserve Fund to equal the Reserve Requirement. (d) On or after any Interest Payment Date on which the amount on deposit in the Revenue Fund was inadequate to make the transfers described in clauses (a) and (b) above as a result of a default in the scheduled payment of principal of and/or interest on the Special Tax Refunding Bonds, the Trustee will immediately notify the Finance Director of the City of the amount of such payment default. In the event that the Trustee receives all or any portion of the principal of and/or interest on the Bonds the payment of which is in default, the Trustee will disburse or transfer such funds in the following order of priority: (i) for deposit in the Reserve Fund such amount as is necessary to replenish the amount of any transfers from the Reserve Fund to the Interest Account and/or the Principal Account resulting from such payment default; and (ii) for deposit in the Revenue Fund any amount remaining following the transfer required pursuant to clause (i). (e) The Trustee will deposit in the Rebate Fund, if necessary, an amount which is sufficient to cause the aggregate amount on deposit in the Rebate Fund to equal the amount of any payment then required to be made to the United States. (f) On June 30, after making the deposits required under clauses (a) through (e) above for the preceding March 1 Interest Payment Date and making the determination that there are adequate revenues on deposit with the Fiscal Agent and available to make the scheduled Debt Service payment on the Special Tax Refunding Bonds due on the following September 1 Interest Payment Date, and on September 1 of each year, after making the deposits required under clauses (a) through (e) above for such September 1 Interest Payment Date, the Trustee will transfer all amounts remaining on deposit in the Revenue Fund to the Residual Account.

The Trustee will deposit in the Redemption Account those Revenues representing Principal Prepayments which are to be used for the mandatory redemption of the Bonds. See Appendix B.

Application of Interest Account. Subject to the provisions of the Indenture, all amounts in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying interest on the Bonds as it becomes due and payable or, at the Written Request of the Authority filed with the Trustee, to apply to the payment of accrued interest on any Bonds purchased by the Authority pursuant to the Indenture in lieu of redemption. Any amounts on deposit in the Interest Account on September 2 of any year during the term of the Bonds will be transferred from the Interest Account to the Revenue Fund for reallocation pursuant to the Indenture.

Application of Principal Account. Subject to the provisions of the Indenture, all amounts in the Principal Account will be used and withdrawn by the Trustee solely to pay the principal or maturity amount, as applicable, of the Bonds upon the stated maturity thereof. Any amounts on deposit in the Principal Account on September 2 of any year during the term of the Bonds will be transferred from the Principal Account to the Revenue Fund for reallocation pursuant to the Indenture.

Application of Residual Account. Amounts in the Residual Account will no longer be considered Revenues and are not pledged to repay the Bonds. So long as the Special Tax Refunding Bonds are outstanding under the terms of the Special Tax Refunding Bonds Fiscal Agent Agreements, on September 2 of each year, the remaining balance in the Residual Account will, except as provided below, be transferred to the Special Tax Fund (as such term is defined in the Special Tax Refunding Bonds Fiscal Agent Agreements) established and held by the Fiscal Agent for each Series of Special Tax Refunding Bonds proportionately based on their respective Proportionate Share. Notwithstanding the foregoing, in the event that the Special Tax Refunding Bonds have been paid in full or defeased, then any amounts in the Residual Account will be paid by the Trustee to the Authority to be used for any lawful purpose.

The amount of the transfer to the Special Tax Fund for a Series of Special Tax Refunding Bonds calculated pursuant to the preceding paragraph will be reduced by the amount of any outstanding deficiency, as of the date of such transfer, in the payment of debt service on such Special Tax Refunding Bonds occurring in the Bond Year ending the September 1st immediately preceding such transfer date.

Establishment and Application of Redemption Account. The Authority will establish a special account within the Revenue Fund designated as the “Redemption Account,” which account the Trustee will maintain and hold in trust as a separate and distinct account within such fund. The Trustee will deposit in the Redemption Account any amounts required or permitted to be applied to the redemption of Bonds pursuant to the Indenture.

Subject to the provisions of the Indenture, all amounts deposited in the Redemption Account will be used and withdrawn by the Trustee solely for the purpose of redeeming the Bonds in the manner and upon the terms and conditions specified in the Indenture at the next succeeding date of redemption for which notice has been given and at the redemption prices then applicable. At any time prior to selection of Bonds for such notice of redemption, the Trustee may, at the Written Request of the Authority, apply amounts on deposit in the Redemption Account to the purchase of such Bonds, for cancellation, at public or private sale, as and when and at prices not exceeding the par amount thereof (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account).

Establishment and Application of Reserve Fund. The Trustee will establish and maintain and hold in trust as a separate and distinct fund designated as the “Reserve Fund.” On the Closing Date, the Trustee will deposit in the Reserve Fund the cash amount specified in the Indenture which will be sufficient to fund the Reserve Requirement as of that date.

There will be maintained in the Reserve Fund an amount of cash equal to the Reserve Requirement. “Reserve Requirement” means, as of any date of calculation, an amount equal to [50%] of the least of (a) 125% of the average Annual Debt Service on the Bonds for that and any subsequent Bond Year; (b) 100% of the Maximum Annual Debt Service on the Bonds for that or any subsequent Bond Year; or (c) 10% of the issue price (within the meaning of section 148 of the Tax Code) of the Bonds.

Moneys in the Reserve Fund will be used solely for the purposes set forth in the Indenture. Subject to the limitations set forth in the following paragraph, amounts in the Reserve Fund will be applied to pay the principal of and interest on the Bonds when due in the event that the moneys in the Interest Account and/or the Principal Account of the Revenue Fund are insufficient therefor. If the amounts in the Interest Account and/or the Principal Account of the Revenue Fund are insufficient to pay the principal of or interest on the Bonds when due, the Trustee will withdraw from the Reserve Fund for deposit in the Interest Account and/or the Principal Account, as applicable, moneys necessary for such purposes.

In addition, cash amounts, if any, in the Reserve Fund may be applied in connection with a mandatory redemption pursuant to the provisions set forth under the caption “THE BONDS—Redemption—Mandatory Redemption of the Bonds from Principal Prepayments of the Special Tax Refunding Bonds” or a defeasance pursuant to the Indenture of the Bonds in whole or in part in accordance with the following sentence, or when the balance therein equals the principal and interest due on the Bonds to and including maturity to pay the principal of and interest due on the Bonds to maturity. Any cash amounts that would otherwise be on deposit in the Reserve Fund following any mandatory redemption or defeasance that will be in excess of the Reserve Requirement following such event will be applied toward such mandatory redemption or defeasance, as applicable.

In the event that the Trustee receives a Written Request of a Community Facilities District notifying the Trustee of the Prepayment of the Special Tax obligation for any parcel within an Improvement Area, and requesting the transfer of the applicable Special Tax Refunding Bonds Prepayment Reserve Fund Credit to the Fiscal Agent for the Series of the Special Tax Refunding Bonds issued for such Improvement Area, the Trustee will transfer from the cash then on deposit in the Reserve Fund not less than five Business Days prior to the redemption date of the Special Tax Refunding Bonds an amount equal to the Special Tax Refunding Bonds Prepayment Reserve Fund Credit to such Fiscal Agent.

The Trustee will, pursuant to a Written Certificate of the Authority, transfer from the cash amount then on deposit in the Reserve Fund on the final maturity date of each Series of Special Tax Refunding Bonds, an amount equal to the Reserve Fund Credit Amount (as such term is defined below) applicable to such Series of Special Tax Refunding Bonds, minus the amount of any transfer previously made necessitated as a result of a deficiency in the scheduled payment of principal of or interest on such Series of Special Tax Refunding Bonds which has not previously been reimbursed. Notwithstanding the foregoing, if the amount of such transfer would result in the balance of the cash following such transfer to be less than the Reserve Requirement applicable following the maturity of such Series of Special Tax Refunding Bonds, the amount of such transfer will be reduced so that such balance equals such Reserve Requirement. The amount to be transferred will be transferred to the Interest Account and the Principal Account as a credit against the payments due on such Series of Special Tax Refunding Bonds on such date with such amount being deposited first to the Interest Account as a credit on the interest due on such Series of Special Tax Refunding Bonds on such date and the balance being deposited to the Principal Account as a credit on the principal due of such Series of Special Tax Refunding Bonds on such date.

The term “Reserve Fund Credit Amount” means, as to a Series of Special Tax Refunding Bonds as of the date of calculation, the cash then on deposit in the Reserve Fund multiplied by the Proportionate Share attributable to such Series of Special Tax Refunding Bonds.

On each September 2nd during the term of the Bonds, the Trustee will calculate the Reserve Requirement for the Bond Year commencing on such September 2nd. If the amount then on deposit in the Reserve Fund exceeds the Reserve Requirement as of the date of such calculation (the “Excess Cash Reserve Fund Amount”), the Trustee will not less than five Business Days thereafter transfer the Excess Cash Reserve Fund Amount from the cash then on deposit in the Reserve Fund to the Revenue Fund.

Investment earnings on the investment of money on deposit in the Reserve Fund will be deposited in the Reserve Fund.

Although the entire Reserve Fund amount may be applied to offset delinquencies in the collection of Special Taxes within an Improvement Area, Special Taxes may only be raised to replenish the Reserve Fund amount within such Improvement Area, in which delinquencies have occurred.

See Appendix B under the caption “INDENTURE—Provisions Related to the Reserve Policy” for further information with respect to the Reserve Policy.

Payment of the Special Tax Refunding Bonds
General. Each Series of Special Tax Refunding Bonds is secured by a first pledge (which pledge will be effected in the manner and to the extent provided in each Special Tax Refunding Bonds Fiscal Agent Agreement) of all of the Net Special Tax Revenues with respect to the Improvement Area relating thereto and all moneys deposited in the applicable Bond Fund and, until disbursed as provided in the Special Tax Refunding Bonds Fiscal Agent Agreements, in the applicable Special Tax Fund. See the captions “THE FINANCING PLAN” and “THE COMMUNITY FACILITIES DISTRICT.” The Special Taxes collected in one Improvement Area cannot be used to pay debt service on the Special Tax Refunding Bonds of another Improvement Area. “Administrative Expenses” means any or all of the following: (i) the fees and expenses of the Fiscal Agent (including the fees and expenses of its counsel); (ii) the expenses of the City or the Community Facilities District in carrying out its duties under the applicable Special Tax Refunding Bonds Fiscal Agent Agreement (including, but not limited to, the levying and collection of the Special Taxes, complying with the disclosure provisions of the CFD Act, the Continuing Disclosure Agreement and the applicable Special Tax Refunding Bonds Fiscal Agent Agreement, including those related to public inquiries regarding the Special Tax and disclosures to Special Tax Refunding Bondowners and the Original Purchaser); (iii) the costs of the City and the Community Facilities District or their designees related to an appeal of the Special Tax; (iv) any costs of the City and the Community Facilities District (including fees and expenses of counsel) to defend the first lien on and pledge of the Special Taxes to the payment of the Special Tax Refunding Bonds or otherwise in respect of litigation relating to the Community Facilities District or the Special Tax Refunding Bonds or with respect to any other obligations of the Community Facilities District; (v) the Proportionate Share of the Authority Administrative Expenses (as such term is defined in Appendix B) allocable to the Special Tax Refunding Bonds; (vi) the Proportionate Share of the salaries of City staff directly related to the carrying out by the City of its obligations under the applicable Special Tax Refunding Bonds Fiscal Agent Agreement or under the Indenture and a proportionate amount of City general administrative overhead related thereto allocable to the Special Tax Refunding Bonds; and (vii) all other costs and expenses of the City, the Community Facilities District and the Fiscal Agent incurred in connection with the discharge of their respective duties under the applicable Special Tax Refunding Bonds Fiscal Agent Agreement, and in the case of the City, in any way related to the administration of the Community Facilities District and all actual costs and expenses incurred in connection with the administration of the Special Tax Refunding Bonds. “Net Special Tax Revenues” means, for each Fiscal Year, all Special Tax Revenues received for the applicable Improvement Area, by the Community Facilities District less an amount equal to the Priority Administrative Expense Amount. “Priority Administrative Expense Amount” means an annual amount equal to $[18,919] for each Improvement Area, or such lesser amount as may be designated by written instruction from an Authorized Officer of the Community Facilities District to be allocated as the first priority of Special Taxes received each Fiscal Year for the payment of Administrative Expenses allocated to the Special Tax Refunding Bonds relating to such Improvement Area. “Special Tax Revenues” means the proceeds received by the Community Facilities District of the Special Taxes levied within the applicable Improvement Area, including any scheduled payments and any prepayments thereof, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest and penalties thereon.

The Net Special Tax Revenues and all moneys deposited into said funds (except as otherwise provided in the Special Tax Refunding Bonds Fiscal Agent Agreements) have been dedicated to the payment of the principal of, and interest and any premium on, the applicable Series of Special Tax Refunding Bonds as provided in the Special Tax Refunding Bonds Fiscal Agent Agreements and in the CFD Act until all of the applicable Series of Special Tax Refunding Bonds have been paid and retired or until moneys or Defeasance Obligations have been set aside irrevocably for that purpose in accordance with the Special Tax Refunding Bonds Fiscal Agent Agreements.

Special Taxes. Pursuant to the CFD Act and the applicable Special Tax Refunding Bonds Fiscal Agent Agreement, the Special Tax Refunding Bonds of a Series will be equally payable from the Net Special Tax Revenues for the applicable Improvement Area, and other amounts in the Special Tax Fund established under the Special Tax Refunding Bonds Fiscal Agent Agreement applicable thereto without priority for number, date of the Special Tax Refunding Bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on and principal of the Special Tax Refunding Bonds and any premiums upon such redemption thereof, will be exclusively paid from the Net Special Tax Revenues and certain other amounts in the Special Tax Fund which have been set aside for the payment of the Special Tax Refunding Bonds. Amounts in the Special Tax Fund constitute a trust fund held for the benefit of the Owners to be applied to the payment of the interest on and principal of the applicable Special Tax Refunding Bonds and, so long as any of such Special Tax Refunding Bonds or interest thereon remain Outstanding, will not be used for any other purpose, except as permitted by the applicable Special Tax Refunding Bonds Fiscal Agent Agreement.

Special Taxes cannot be levied or collected in any Improvement Area to cover a shortfall in the collection of Special Taxes in another Improvement Area. The Special Tax Fund of one Improvement Area is not available to cure any deficiency in the collection of the Special Taxes within any other Improvement Area. Other than amounts on deposit in the Reserve Fund, there are no crosscollateralization or cross-payment provisions in effect with respect to the Improvement Areas. The Special Tax Refunding Bonds Fiscal Agent Agreements do not establish reserve funds in connection with the Special Tax Refunding Bonds.

Principal of and interest and premium, if any, on the Special Tax Refunding Bonds will be paid by the Fiscal Agent to the Trustee, as the registered owner of the Special Tax Refunding Bonds, on behalf of the Authority, out of the Bond Fund and Special Tax Fund established by the Special Tax Refunding Bonds Fiscal Agent Agreement to the extent that funds on deposit in such funds are available therefor.

Limitations on Special Taxes. The amount of Special Taxes that the Community Facilities District may levy in any year is strictly limited by the maximum rates approved by the qualified electors within the applicable Improvement Area, and by Section 53321(d) of the CFD Act as described below under the caption “—Rates and Methods of Apportionment of Special Taxes.” The Special Taxes of a particular Improvement Area are not available to pay principal of, interest on or premium on any Special Tax Refunding Bonds other than the series of Special Tax Refunding Bonds for which they were levied.

Parity Special Tax Refunding Bonds for Refunding Purposes Only. Pursuant to each Special Tax Refunding Bonds Fiscal Agent Agreement, the Community Facilities District has covenanted not to issue additional obligations entitled to a lien on the Net Special Tax Revenues of the respective Improvement Area, other than for the purpose of refunding the Special Tax Refunding Bonds relating to such Improvement Area.

Levy and Collection of Special Taxes
General. The Special Taxes are to be levied and collected by the Treasurer-Tax Collector of the County of San Diego in the same manner and at the same time as ad valorem property taxes; provided, however, that the Community Facilities District may directly bill the Special Tax or collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations.

The Community Facilities District has made certain covenants in the respective Special Tax Refunding Bonds Fiscal Agent Agreements for the purpose of ensuring that the current maximum Special Tax rates and method of collection of the Special Taxes are not altered in a manner that would impair the Community Facilities District’s ability to collect sufficient Special Taxes to pay debt service on the Special Tax Refunding Bonds and Administrative Expenses when due in each Improvement Area. First, the Community Facilities District has covenanted that, to the extent that it is legally permitted to do so, it will not modify the maximum Special Tax rates where such modification would (i) prohibit the Community Facilities District from levying the Special Tax within the respective Improvement Area, in any Fiscal Year at such a rate as would generate Net Special Tax Revenues in such Fiscal Year at least equal to 110% of Annual Debt Service on all Special Tax Refunding Bonds then Outstanding in the respective Improvement Area; (ii) discontinue or cause the discontinuance of such levy; or (iii) permit the prepayment of the Special Tax except as permitted pursuant to the respective rate and method of apportionment. Second, the Community Facilities District has covenanted that in the event that any initiative is adopted by the qualified electors in an Improvement Area, which purports to reduce the minimum or the maximum Special Tax below the levels specified in the respective rate and method of apportionment or to limit the power of the Community Facilities District to levy the Special Taxes within an Improvement Area, it will commence and pursue legal action in order to preserve its ability to comply with such covenants. See the caption “SPECIAL RISK FACTORS—California Constitution Article XIIIC and Article XIIID.” Although the Special Taxes constitute liens on taxable parcels within the Improvement Areas, such taxes do not constitute a personal indebtedness of the owners of such property within the Improvement Areas. Moreover, other liens for taxes and assessments already exist on the property located within the Improvement Areas, and other such liens could come into existence in the future in certain situations without the consent or knowledge of the City or the landowners therein. See the caption “THE COMMUNITY FACILITIES DISTRICT” for a description of the direct and overlapping tax and assessment debt levied within the Improvement Areas. See also the captions “SPECIAL RISK FACTORS—Direct and Overlapping Debt” and “SPECIAL RISK FACTORS—Cumulative Burden of Parity Taxes and Special Assessments.” There is no assurance that property owners will be financially able to pay the annual Special Taxes or that they will pay such taxes even if they are financially able to do so, all as more fully described under the caption “SPECIAL RISK FACTORS—The Special Taxes are Not Personal Obligations of the Owners.” Special Tax Funds. There has been established as a separate fund to be held by the Fiscal Agent under each Special Tax Refunding Bonds Fiscal Agent Agreement, a “Special Tax Fund,” to the credit of which the Community Facilities District or the City on behalf of the Community Facilities District, will deposit, immediately upon receipt, all Special Tax Revenues received from the applicable Improvement Area, by the Community Facilities District or the City on behalf of the Community Facilities District. Moneys in each Special Tax Fund will be held by the Fiscal Agent for the benefit of the Community Facilities District and the Owner of the respective Special Tax Refunding Bonds, will be disbursed as provided below and, pending any disbursement, will be subject to a lien in favor of the Owners of the applicable Special Tax Refunding Bonds.

Special Tax Revenues (with the exception of Special Tax Revenues representing Prepayments) are to be applied by the Fiscal Agent under the applicable Special Tax Refunding Bonds Fiscal Agent Agreement in the following order of priority:

First, to the Administrative Expense Fund an amount equal to the Priority Administrative Expense Amount estimated to be due and payable during the then current Fiscal Year; Second, not later than 10 Business Days prior to each Interest Payment Date, to the Bond Fund: (a) the amount representing past due installments of principal, interest and premium on the Special Tax Refunding Bonds (including any interest thereon pursuant to the Indenture), if any, resulting from the delinquency in the payment of such Special Taxes; and (b) an amount, taking into account any amounts then on deposit in the Bond Fund (other than by reason of the preceding clause (a)) such that the amount in the Bond Fund equals the principal, premium, if any, and interest due on the Special Tax Refunding Bonds on the next Interest Payment Date.

See Appendix B under the caption “FISCAL AGENT AGREEMENTS—Funds and Accounts—Bond Fund” for a description of the application of moneys in the Bond Fund to pay principal of and interest on the Special Tax Refunding Bonds; Third, no later than 10 Business Days prior to each Interest Payment Date, to the Trustee for deposit in the Reserve Fund that amount, in addition to the amount transferred to the Bond Fund pursuant to clause (a) in the second order of priority above, necessary to replenish any draw on the Reserve Fund resulting from the delinquency in the payment of scheduled debt service on the Special Tax Refunding Bonds; Fourth, on September 2 of each year after making the deposits and transfers required under the first two orders of priority above and the transfer, if any, authorized under the third order of priority above, upon receipt of written instructions from an Authorized Officer on or before the preceding June 30, to the Trustee the amount specified in such written instructions necessary for the payment of the Proportionate Share of any rebate amount due and owing to the United States of America by the Authority on the Bonds; Fifth, on September 2 of each year after making the deposits and transfers required under the first four orders of priority above, upon receipt of written instructions from an Authorized Officer, to the Administrative Expense Fund the amount specified in such written instructions necessary for payment of the estimated Administrative Expenses projected to be due and payable in the next Fiscal Year or the reimbursement of any Administrative Expenses incurred during the Fiscal Year ending on such June 30 and not included in any prior transfer made pursuant to the first order of priority above; and Sixth, after September 2 of each year, after making the deposits and transfers pursuant to the first five orders of priority above, moneys then on deposit in the Special Tax Fund will remain therein and will be subsequently deposited or transferred pursuant to the first five orders of priority above.

Amounts constituting Prepayments will be transferred by the Treasurer to the Fiscal Agent and placed by the Fiscal Agent in a segregated account within the applicable Bond Fund designated as the “Prepayment Account” and used to redeem applicable Special Tax Refunding Bonds pursuant to the applicable Special Tax Refunding Bonds Fiscal Agent Agreement. Any such transfer of Prepayments will be accompanied by written instructions executed by the Treasurer or an Authorized Officer directing the Fiscal Agent to place such Prepayments in the Prepayment Account, specifying the amount of the applicable Special Tax Refunding Bonds Prepayment Reserve Fund Credit and requesting that the Authority direct the Trustee to transfer such credit to the Fiscal Agent for deposit in the Prepayment Account.

Rates and Methods of Apportionment of Special Taxes
The Community Facilities District has adopted a Rate and Method of Apportionment of Special Tax (each, a “Rate and Method”) for each Improvement Area, following public hearings and elections conducted pursuant to the provisions of the CFD Act. The Rate and Method for certain Improvement Areas have been amended since their initial adoption. The form of the current Rate and Method for the Improvement Areas are set forth in full in Appendix F hereto.

Pursuant to the Rate and Method for each Improvement Area, the City Council will levy the Special Tax as follows until the amount of the levy equals the Special Tax Requirement (as such term is defined in each Rate and Method) for the Improvement Area: first, the Special Tax will be levied on each Assessor’s Parcel of Developed Property (as such term is defined in each Rate and Method) at up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement; and second, if additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax will be levied on each Assessor’s Parcel of Property Owner Association Property and Public Property (as such terms are defined in each Rate and Method) which is not exempt from the Special Tax pursuant to law or the Rate and Method at up to 100% of the applicable Maximum Special Tax.

Pursuant to California Government Code Section 53321(d), the Special Tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the applicable Improvement Area, by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. Consequently, although the maximum Special Tax prescribed by each Rate and Method could be materially higher than the expected Special Tax levy in a given year, the Special Tax levy cannot be increased for residential property by more than 10% in such year.

Subsequent to the respective approvals by the authorized voters of the Improvement Areas, the Community Facilities District took administrative action to reduce the Maximum Special Tax in the Improvement Areas as permitted by the Rate and Method for each Improvement Area. The forms of the Rates and Methods attached hereto as Appendix F reflect such reduction in the Maximum Special Tax rates of such Improvement Areas.

No Teeter Plan
The Board of Supervisors of the County of San Diego has approved the implementation of the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”), as provided for in Section 4701 et seq. of the Revenue and Taxation Code of the State. As a result of the implementation of the Teeter Plan by the County of San Diego, the County of San Diego apportions secured property taxes and assessments on an accrual basis when due (irrespective of actual collections) to participating local political subdivisions for which the County of San Diego acts as the levying or collecting agency. The Community Facilities District does not participate in the Teeter Plan. As a result, the collection of Special Taxes is subject to delinquency risk. As further described under the caption “SPECIAL RISK FACTORS—Insufficiency of Special Taxes” and “SPECIAL RISK FACTORS—Bankruptcy and Foreclosure Delays,” delinquencies in the payment of Special Taxes could have an adverse effect on the Community Facilities District’s ability to make timely debt service payments on the applicable Special Tax Refunding Bonds, which secure the Bonds. Conversely, the Community Facilities District will benefit from Special Taxes generated by penalties and interest charged on delinquent Special Taxes.

See the caption “THE COMMUNITY FACILITIES DISTRICT” for historical delinquency information with respect to the Improvement Areas.

Covenant to Foreclose
The net proceeds received following a judicial foreclosure sale of land within the Improvement Areas resulting from a landowner’s failure to pay the Special Taxes when due are included within the Net Special Tax Revenues pledged to the payment of principal of and interest on the Special Tax Refunding Bonds under the Special Tax Refunding Bonds Fiscal Agent Agreements.

Pursuant to Section 53356.1 of the CFD Act, in the event of any delinquency in the payment of any Special Tax or receipt by the Community Facilities District of Special Taxes in an amount which is less than the Special Tax levied, the City Council, as the legislative body of the Community Facilities District, may order that Special Taxes be collected by a superior court action to foreclose the lien within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the CFD Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory. The Community Facilities District, however, has covenanted for the benefit of the Owners of the Special Tax Refunding Bonds that they will (i) commence judicial foreclosure proceedings against all parcels owned by a property owner where the aggregate delinquent Special Taxes on such parcels is greater than $5,000 by the October 1 following the close of each Fiscal Year in which such Special Taxes were due; (ii) commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied for such Fiscal Year; and (iii) diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid. Notwithstanding the foregoing, however, the Community Facilities District may elect to defer foreclosure proceedings on any parcel which is owned by a delinquent property owner whose property is not, in the aggregate, delinquent in the payment of Special Taxes for a period of five years or more or in an amount in excess of $10,000 so long as: (1) the amount in the Reserve Fund is at least equal to the Reserve Requirement; and (2) with respect to the Special Tax Refunding Bonds, the Community Facilities District, acting on behalf of the applicable Improvement Area, is not in default in the payment of the principal of or interest on such Special Tax Refunding Bonds.

If foreclosure is necessary and other funds (including amounts in the Reserve Fund) have been exhausted, debt service payments on the applicable series of Special Tax Refunding Bonds could be delayed until the foreclosure proceedings have ended with the receipt of any foreclosure sale proceeds. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by agencies of the federal government and other factors beyond the control of the Authority, the City and the Community Facilities District. See the caption “SPECIAL RISK FACTORS—Bankruptcy and Foreclosure Delays.” Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. See the caption “SPECIAL RISK FACTORS—Property Values.” Although the CFD Act authorizes the Community Facilities District to cause such an action to be commenced and diligently pursued to completion, the CFD Act does not impose on the Community Facilities District, the Authority or the City any obligation to purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such sale. The City does, however, have the ability to use the foreclosure judgment to purchase property by credit bid at a foreclosure sale, in which case the City would have no obligation to pay such credit bid for 24 months. The CFD Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is provided for ad valorem taxes.

Priority of Lien
The Special Taxes levied within the Improvement Areas, and each installment thereof and any interest and penalties thereon, constitute a lien against each of the respective parcels within such Improvement Area, until the same are paid. There are other liens for special taxes and the recurring lien for general property taxes on parcels within the Improvement Areas. See the captions “THE COMMUNITY FACILITIES DISTRICT” and “SPECIAL RISK FACTORS—Direct and Overlapping Debt.” No Obligation of the City Upon Delinquency
The City is under no obligation to transfer any funds of the City into the Redemption Account or the Special Tax Funds for the payment of the principal of or interest on the Special Tax Refunding Bonds if a delinquency occurs in the payment of any Special Taxes. See the caption “—Covenant to Foreclose” for a discussion of the City’s obligation to foreclose Special Tax liens upon delinquencies.

Prepayment of Special Taxes
A property owner may prepay its Special Taxes and thereby cause a partial redemption of the Special Tax Refunding Bonds and the Bonds. See the captions “THE BONDS—Redemption—Mandatory Redemption of the Bonds from Principal Prepayments of the Special Tax Refunding Bonds” and “SPECIAL RISK FACTORS—Potential Early Redemption of Bonds from Prepayments.”

BOND INSURANCE
The information under this caption has been prepared by [BOND INSURER] for inclusion in this Official Statement. None of the Authority, the Community Facilities District, the City or the Underwriter has reviewed this information, nor do the Authority, the Community Facilities District, the City or the Underwriter make any representation with respect to the accuracy or completeness thereof. The following information is not a complete summary of the terms of the Policy (as such term is defined below) and reference is made to Appendix G for a specimen of the Policy. [TO COME FROM BOND INSURER]

THE AUTHORITY
The San Marcos Public Financing Authority was established pursuant to that certain Joint Exercise of Powers Agreement, dated December 14, 1993, as subsequently amended and restated by that certain Amended and Restated Joint Exercise of Powers Agreement, dated as of January 10, 2012, each by and between the City and the FPD. The Authority was created for the purpose of the financing or refinancing of public capital improvements for, and working capital requirements of, the City, the FPD or any other local agency, including a community facilities district created by the City or the FPD, through the construction and/or acquisition by the Authority of such public capital improvements and/or the purchase by the Authority of bonds of the City, the FPD or any other local agency pursuant to bond purchase agreements and/or the lending of funds by the Authority to the City, the FPD or any other local agency. The Authority is governed by a five member board of directors, which is composed of the members of the City Council. The Executive Director of the Authority is the City Manager of the City. The Authority is specifically granted all of the powers specified in the Bond Law, including but not limited to the power to issue bonds and to sell such bonds to public or private purchasers at public or by negotiated sale. The Authority is entitled to exercise powers common to its members and necessary to accomplish the purpose for which it was formed. The Authority has no independent staff, and consequently it will be completely dependent upon the officers and employees of the City to administer its program.

THE AUTHORITY IS NOT OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM (IF ANY) OR INTEREST ON THE BONDS, EXCEPT FROM REVENUES RECEIVED BY THE AUTHORITY AND AMOUNTS IN THE FUNDS PLEDGED UNDER THE INDENTURE. NEITHER THE CITY, THE FPD, NOR COMMUNITY FACILITIES DISTRICT HAS ANY LIABILITY WITH RESPECT TO THE PAYMENT OF THE BONDS, AND NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE, THE CITY, THE FPD, THE AUTHORITY OR THE COMMUNITY FACILITIES DISTRICT IS PLEDGED TO THE PAYMENT OF THE BONDS. THE AUTHORITY HAS NO TAXING POWER.

THE CITY
The City is located approximately 24 miles north of downtown San Diego and 90 miles south of Los Angeles, in the northern coastal/inland region of San Diego County. The City is a charter city, incorporated in 1963 and chartered on July 4, 1994. For more information regarding the City, see Appendix A.

THE COMMUNITY FACILITIES DISTRICT
General
The Community Facilities District was formed in 1999 for the purpose of financing a portion of the public improvements required to support the San Elijo Hills project. San Elijo Hills is a master planned residential community of 1,920 acres located in the southern portion of the City. The San Elijo Hills development is substantially built out and includes approximately [3,400] dwelling units, neighborhood commercial developments, schools and approximately 1,115 acres of public parks and open and recreation space. San Elijo Hills lies east of Rancho Santa Fe Road and generally along San Elijo Road, east of the City of Carlsbad and west of the City of Escondido. Directly north of the site is the Lake San Marcos neighborhood. The topography is considerably hilly with ocean views in addition to valley and canyon views.

There are currently 34 improvement areas within the boundaries of the Community Facilities District. However, only principal and interest payments received by the Authority from the Special Tax Refunding Bonds for the 17 Improvement Areas described below constitute Revenues to the Authority.

Improvement Area A1
General. Improvement Area A1 is located along the south side of Elfin Forest Road, north of San Elijo Road. Improvement Area A1 encompasses a total of 86 detached single family residential units. All 86 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area A1 for the current and prior four Fiscal Years.

TABLE 5

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$58,395,443
$0
$58,395,443
N/A
N/A
N/A
2020-21
59,586,118
0 59,586,118

2.04%
N/A

2.04%
2021-22
60,579,691
0 60,579,691

1.67 N/A

1.67 2022-23
66,094,453
0 66,094,453

9.10 N/A

9.10 2023-24
69,422,157
0 69,422,157

5.03 N/A

5.03 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area A1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 6

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$139,102
86 0
$0

0.00%
0 $0

0.00%
2019-20
136,657
86 0
0 0.00
0 0

0.00 2020-21
136,055
86 0
0 0.00
0 0

0.00 2021-22
139,427
86 0
0 0.00
0 0

0.00 2022-23
140,732
86 0
0 0.00
0 0

0.00 2023-24
139,828
86 N/A
N/A
N/A
2 1,738

2.49 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area A1.

TABLE 7

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
86 $202,103
$139,828

69.19%
(1) All parcels in Improvement Area A1 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area A1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area A1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.35% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area A1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area A1 Debt Report”) for Improvement Area A1, reflecting the issuance of $742,620* aggregate principal amount of Improvement Area A1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area A1 is $69,422,157 for the current Fiscal Year. The Improvement Area A1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area A1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area A1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area A1 (inclusive of the Improvement Area A1 Special Tax Refunding Bonds) is $1,911,352*. The assessed valuetolien ratio for Improvement Area A1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 36.32 to 1*. The valuetolien ratio of individual parcels will vary from this average.

TABLE 8

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area A1
% of Levy Applicable to Improvement Area A1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area A1 Metropolitan Water District(2)
$ 187,910,599
$ 2,430

0.00129%
$ 18,210,000
$ 235
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,763

0.04418%
$ 186,486,613
$ 82,383
Prop M 2006C
1,068,602
472

0.04418
3,315,000
1,464
Prop M 2015 REF
5,563,016
2,458

0.04418
14,005,000
6,187
Prop M 2017D
3,252,950
1,437

0.04418
133,080,000
58,790
Prop M 2017REF
5,531,586
2,444

0.04418
101,770,000
44,958
Prop M 2020 REF
5,610,160
2,478

0.04418
193,120,000
85,314
Prop M 2021
3,095,803
1,368

0.04418
122,140,000
53,957
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 10,288

0.26563%
$ 25,306,060
$ 67,220
Prop K Series 2010B
943,479
2,506

0.26563
102,205,380
271,486
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
11,954

0.26563
105,535,000
280,330
Prop K Series 2020 REF
3,990,837
10,601

0.26563
81,470,000
216,407
Total Overlapping Debt
$ 1,168,732
CFD 99-01, Improvement Area A1 Bonded Indebtedness
$ 742,620*
Estimated Share of Direct and Overlapping Debt
$ 1,911,352*
CFD 99-01, Improvement Area A1 Fiscal Year 2023-24 Assessed Value $ 69,422,157
Value to Lien Ratio

36.32*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area A1 will be approximately 1.36171%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 9

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$807,234
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 8,072.34
Metropolitan Water District

0.00350

28.25 Palomar Community College District, Prop M 2006B

0.00254

20.50 Palomar Community College District, Prop M 2006C

0.00068

5.49 Palomar Community College District, Prop M 2015

0.00354

28.58 Palomar Community College District, Prop M 2017

0.00207

16.71 Palomar Community College District, Prop M 2017D

0.00352

28.41 Palomar Community College District, Prop M 2020

0.00357

28.82 Palomar Community College District, Prop M 2021

0.00197

15.90 San Marcos Unified School District, Prop K Series 2010A

0.01482
119.63
San Marcos Unified School District, Prop K Series 2010B

0.00361

29.14 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
139.01
San Marcos Unified School District, Prop K Series 2020

0.01527
123.26

1.07231%
$ 8,656.06
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area A1(10)
1,625.90
1,463.09
2,350.03(11)
Subtotal Special taxes, Assessments and Charges
$ 2,469.92
$ 2,336.13
$ 4,133.35
Total Property Taxes
$ 10,992.19
$ 12,789.41
Total Effective Tax Rate

1.36171%

1.58435%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00%. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area A1 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area A1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area A2
General. Improvement Area A2 is located along the west side of Elfin Forest Road, north of San Elijo Road. Improvement Area A2 encompasses a total of 85 detached single family residential units. All 85 units have been constructed and sold to individual property owners. In Fiscal Year 2023-24, one parcel within Improvement Area A2 prepaid its Special Tax obligation leaving 84 taxable parcels in Improvement Area A2.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area A2 for the current and prior four Fiscal Years.

TABLE 10

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A2
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$56,131,875
$0
$56,131,875
N/A
N/A
N/A
2020-21
57,662,755
0 57,662,755

2.73%
N/A

2.73%
2021-22
60,036,683
0 60,036,683

4.12 N/A

4.12 2022-23
63,171,628
0 63,171,628

5.22 N/A

5.22 2023-24
65,091,863
0 65,091,863

3.04 N/A

3.04 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area A2 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 11

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A2

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$143,607
85 0
$0

0.00%
0 $0

0.00%
2019-20
139,394
85 0
0 0.00
0 0

0.00 2020-21
141,474
85 1
816

0.58 0
0 0.00
2021-22
141,649
85 1
1,635

1.15 0
0 0.00
2022-23
145,955
85 1
906

0.62 0
0 0.00
2023-24
143,653
84(2)
N/A
N/A
N/A
3 2,453

3.42 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only. (2) In Fiscal Year 2023-24, one parcel within Improvement Area A2 prepaid its Special Tax obligation.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area A2.

TABLE 12

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A2
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
85 $199,521
$143,653

72.00%
(1) All parcels in Improvement Area A2 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area A2’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area A2 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.35% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area A2.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area A2 Debt Report”) for Improvement Area A2, reflecting the issuance of $822,878* aggregate principal amount of Improvement Area A2 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area A2 is $65,091,863 for the current Fiscal Year. The Improvement Area A2 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area A2 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area A2 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area A2 (inclusive of the Improvement Area A2 Special Tax Refunding Bonds) is $1,918,709. The assessed valuetolien ratio for Improvement Area A2 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 33.92 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 13

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A2
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area A2
% of Levy Applicable to Improvement Area A2
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area A2 Metropolitan Water District(2)
$ 187,910,599
$ 2,278

0.00121%
$ 18,210,000
$ 223
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,653

0.04142%
$ 186,486,613
$ 77,244
Prop M 2006C
1,068,602
443

0.04142
3,315,000
1,373
Prop M 2015 REF
5,563,016
2,304

0.04142
14,005,000
5,801
Prop M 2017D
3,252,950
1,347

0.04142
133,080,000
55,123
Prop M 2017REF
5,531,586
2,291

0.04142
101,770,000
42,154
Prop M 2020 REF
5,610,160
2,324

0.04142
193,120,000
79,992
Prop M 2021
3,095,803
1,282

0.04142
122,140,000
50,592
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 9,647

0.24906%
$ 25,306,060
$ 63,027
Prop K Series 2010B
943,479
2,350

0.24906
102,205,380
254,551
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
11,209

0.24906
105,535,000
262,844
Prop K Series 2020 REF
3,990,837
9,940

0.24906
81,470,000
202,908
Total Overlapping Debt
$ 1,095,831
CFD 99-01, Improvement Area A2Bonded Indebtedness
$ 822,878*
Estimated Share of Direct and Overlapping Debt
$ 1,918,709*
CFD 99-01, Improvement Area A2 Fiscal Year 2023-24 Assessed Value $ 65,091,863
Value to Lien Ratio

33.92*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area A2 will be approximately 1.37728%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 14

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA A2
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$774,903
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 7,749.03
Metropolitan Water District

0.00350

27.12 Palomar Community College District, Prop M 2006B

0.00254

19.68 Palomar Community College District, Prop M 2006C

0.00068

5.27 Palomar Community College District, Prop M 2015

0.00354

27.43 Palomar Community College District, Prop M 2017

0.00207

16.04 Palomar Community College District, Prop M 2017D

0.00352

27.28 Palomar Community College District, Prop M 2020

0.00357

27.66 Palomar Community College District, Prop M 2021

0.00197

15.27 San Marcos Unified School District, Prop K Series 2010A

0.01482
114.84
San Marcos Unified School District, Prop K Series 2010B

0.00361

27.97 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
133.44
San Marcos Unified School District, Prop K Series 2020

0.01527
118.33

1.07231%
$ 8,309.36
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area A2(10)
1,710.55
1,490.20
2,375.80(11)
Subtotal Special taxes, Assessments and Charges
$ 2,554.57
$ 2,363.24
$ 4,158.57
Total Property Taxes
$ 10,672.60
$ 12,467.93
Total Effective Tax Rate

1.37728%

1.60897%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00%. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area A2 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area A2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area B1
General. Improvement Area B1 is located along the west side of Elfin Forest Road, north of San Elijo Road. Improvement Area B1 encompasses a total of 93 detached single family residential units. All 93 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area B1 for the current and prior four Fiscal Years.

TABLE 15

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$60,235,747
$0
$60,235,747
N/A
N/A
N/A
2020-21
61,517,525
0 61,517,525

2.13%
N/A

2.13%
2021-22
63,776,794
0 63,776,794

3.67 N/A

3.67 2022-23
68,893,740
0 68,893,740

8.02 N/A

8.02 2023-24
72,532,577
0 72,532,577

5.28 N/A

5.28 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area B1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 16

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$137,844
93 0
$0

0.00%
0 $0

0.00%
2019-20
137,202
93 0
0 0.00
0 0

0.00 2020-21
138,357
93 0
0 0.00
0 0

0.00 2021-22
133,890
93 0
0 0.00
0 0

0.00 2022-23
138,340
93 0
0 0.00
0 0

0.00 2023-24
139,035
93 N/A
N/A
N/A
1 768

1.10 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area B1.

TABLE 17

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
93 $187,141
$139,035

74.29%
(1) All parcels in Improvement Area B1 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area B1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area B1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.19% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area B1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area B1 Debt Report”) for Improvement Area B1, reflecting the issuance of $782,843* aggregate principal amount of Improvement Area B1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area B1 is $72,532,577 for the current Fiscal Year. The Improvement Area B1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area B1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area B1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area B1 (inclusive of the Improvement Area B1 Special Tax Refunding Bonds) is $2,003,939. The assessed valuetolien ratio for Improvement Area B1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 36.20 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 18

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area B1
% of Levy Applicable to Improvement Area B1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area B1 Metropolitan Water District(2)
$ 187,910,599
$ 2,539

0.00135%
$ 18,210,000
$ 246
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,842

0.04616%
$ 186,486,613
$ 86,074
Prop M 2006C
1,068,602
493

0.04616
3,315,000
1,530
Prop M 2015 REF
5,563,016
2,568

0.04616
14,005,000
6,464
Prop M 2017D
3,252,950
1,501

0.04616
133,080,000
61,424
Prop M 2017REF
5,531,586
2,553

0.04616
101,770,000
46,973
Prop M 2020 REF
5,610,160
2,589

0.04616
193,120,000
89,136
Prop M 2021
3,095,803
1,429

0.04616
122,140,000
56,375
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 10,749

0.27753%
$ 25,306,060
$ 70,232
Prop K Series 2010B
943,479
2,618

0.27753
102,205,380
283,649
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
12,490

0.27753
105,535,000
292,890
Prop K Series 2020 REF
3,990,837
11,076

0.27753
81,470,000
226,103
Total Overlapping Debt
$ 1,221,096
CFD 99-01, Improvement Area B1 Bonded Indebtedness
$ 782,843*
Estimated Share of Direct and Overlapping Debt
$ 2,003,939*
CFD 99-01, Improvement Area B1 Fiscal Year 2023-24 Assessed Value $ 72,532,577
Value to Lien Ratio

36.20*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area B1 will be approximately 1.34873%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 19

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$779,920
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 7,799.20
Metropolitan Water District

0.00350

27.30 Palomar Community College District, Prop M 2006B

0.00254

19.81 Palomar Community College District, Prop M 2006C

0.00068

5.30 Palomar Community College District, Prop M 2015

0.00354

27.61 Palomar Community College District, Prop M 2017

0.00207

16.14 Palomar Community College District, Prop M 2017D

0.00352

27.45 Palomar Community College District, Prop M 2020

0.00357

27.84 Palomar Community College District, Prop M 2021

0.00197

15.36 San Marcos Unified School District, Prop K Series 2010A

0.01482
115.58
San Marcos Unified School District, Prop K Series 2010B

0.00361

28.16 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
134.30
San Marcos Unified School District, Prop K Series 2020

0.01527
119.09

1.07231%
$ 8,363.16
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area B1(10)
1,494.99
1,282.83
2,012.27(11)
Subtotal Special taxes, Assessments and Charges
$ 2,339.01
$ 2,155.87
$ 3,795.59
Total Property Taxes
$ 10,519.04
$ 12,158.75
Total Effective Tax Rate

1.34873%

1.55897%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00%. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area B1 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area B1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area B2
General. Improvement Area B2 is located along the south side of Elfin Forest Road, north of San Elijo Road. Improvement Area B2 encompasses a total of 103 detached single family residential units. All 103 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area B2 for the current and prior four Fiscal Years.

TABLE 20

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B2
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$62,658,553
$0
$62,658,553
N/A
N/A
N/A
2020-21
64,842,221
0 64,842,221

3.49%
N/A

3.49%
2021-22
65,978,076
0 65,978,076

1.75 N/A

1.75 2022-23
71,529,758
0 71,529,758

8.41 N/A

8.41 2023-24
74,499,001
0 74,499,001

4.15 N/A

4.15 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area B2 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 21

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B2

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$125,189
103
0 $0

0.00%
0 $0

0.00%
2019-20
118,709
103
0 0

0.00 0
0 0.00
2020-21
121,416
103
0 0

0.00 0
0 0.00
2021-22
122,025
103
0 0

0.00 0
0 0.00
2022-23
125,733
103
1 666

0.53 1
666

0.53 2023-24
122,563
103
N/A
N/A
N/A
3 1,843

3.01 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area B2.

TABLE 22

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B2
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
103
$175,579
$122,563

69.81%
(1) All parcels in Improvement Area B2 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area B2’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area B2 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.83% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area B2.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area B2 Debt Report”) for Improvement Area B2, reflecting the issuance of $637,337* aggregate principal amount of Improvement Area B2 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area B2 is $74,499,001 for the current Fiscal Year. The Improvement Area B2 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area B2 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area B2 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area B2 (inclusive of the Improvement Area B2 Special Tax Refunding Bonds) is $1,891,538. The assessed valuetolien ratio for Improvement Area B2 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 39.39 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 23

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B2
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area B2
% of Levy Applicable to Improvement Area B2
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area B2 Metropolitan Water District(2)
$ 187,910,599
$ 2,607

0.00139%
$ 18,210,000
$ 253
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,892

0.04741%
$ 186,486,613
$ 88,408
Prop M 2006C
1,068,602
507

0.04741
3,315,000
1,572
Prop M 2015 REF
5,563,016
2,637

0.04741
14,005,000
6,639
Prop M 2017D
3,252,950
1,542

0.04741
133,080,000
63,089
Prop M 2017REF
5,531,586
2,622

0.04741
101,770,000
48,246
Prop M 2020 REF
5,610,160
2,660

0.04741
193,120,000
91,553
Prop M 2021
3,095,803
1,468

0.04741
122,140,000
57,903
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 11,041

0.28505%
$ 25,306,060
$ 72,136
Prop K Series 2010B
943,479
2,689

0.28505
102,205,380
291,339
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
12,829

0.28505
105,535,000
300,831
Prop K Series 2020 REF
3,990,837
11,376

0.28505
81,470,000
232,233
Total Overlapping Debt
$ 1,254,201
CFD 99-01, Improvement Area B2 Bonded Indebtedness
$ 637,337*
Estimated Share of Direct and Overlapping Debt
$ 1,891,538*
CFD 99-01, Improvement Area B2 Fiscal Year 2023-24 Assessed Value $ 74,499,001
Value to Lien Ratio

39.39*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area B2 will be approximately 1.34049%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 24

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA B2
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$723,291
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 7,232.91
Metropolitan Water District

0.00350

25.32 Palomar Community College District, Prop M 2006B

0.00254

18.37 Palomar Community College District, Prop M 2006C

0.00068

4.92 Palomar Community College District, Prop M 2015

0.00354

25.60 Palomar Community College District, Prop M 2017

0.00207

14.97 Palomar Community College District, Prop M 2017D

0.00352

25.46 Palomar Community College District, Prop M 2020

0.00357

25.82 Palomar Community College District, Prop M 2021

0.00197

14.25 San Marcos Unified School District, Prop K Series 2010A

0.01482
107.19
San Marcos Unified School District, Prop K Series 2010B

0.00361

26.11 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
124.55
San Marcos Unified School District, Prop K Series 2020

0.01527
110.45

1.07231%
$ 7,755.92
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area B2(10)
1,189.93
1,066.71
1,704.65(11)
Subtotal Special taxes, Assessments and Charges
$ 2,033.95
$ 1,939.75
$ 3,487.98
Total Property Taxes
$ 9,695.68
$ 11,243.90
Total Effective Tax Rate

1.34049%

1.55455%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00%. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area B2 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area B2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area C1
General. Improvement Area C1 is located along the south side of Elfin Forest Road, west of San Elijo Road. Improvement Area C1 encompasses a total of 162 attached residential townhomes within 39 sixunit and three-unit building structures. All 162 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area C1 for the current and prior four Fiscal Years.

TABLE 25

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA C1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$70,265,214
$0
$70,265,214
N/A
N/A
N/A
2020-21
72,144,884
0 72,144,884

2.68%
N/A

2.68%
2021-22
73,941,988
0 73,941,988

2.49 N/A

2.49 2022-23
79,662,068
0 79,662,068

7.74 N/A

7.74 2023-24
83,993,174
0 83,993,174

5.44 N/A

5.44 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area C1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 26

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA C1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$206,366
162
0 $0

0.00%
0 $0

0.00%
2019-20
199,781
162
4 2,421

1.21 0
0 0.00
2020-21
203,636
162
2 1,747

0.86 0
0 0.00
2021-22
198,346
162
0 0

0.00 0
0 0.00
2022-23
200,550
162
0 0

0.00 0
0 0.00
2023-24
202,019
162
N/A
N/A
N/A
2 1,293

1.28 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area C1.

TABLE 27

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA C1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
162
$267,000
$202,019

75.66%
(1) All parcels in Improvement Area C1 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area C1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area C1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc
Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.37% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area C1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area C1 Debt Report”) for Improvement Area C1, reflecting the issuance of $1,321,854* aggregate principal amount of Improvement Area C1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area C1 is $83,993,174 for the current Fiscal Year. The Improvement Area C1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area C1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area C1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area C1 (inclusive of the Improvement Area C1 Special Tax Refunding Bonds) is $2,735,891. The assessed valuetolien ratio for Improvement Area C1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 30.70 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 28

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA C1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area C1
% of Levy Applicable to Improvement Area C1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area C1 Metropolitan Water District(2)
$ 187,910,599
$ 2,940

0.00156%
$ 18,210,000
$ 285
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 2,133

0.05345%
$ 186,486,613
$ 99,675
Prop M 2006C
1,068,602
571

0.05345
3,315,000
1,772
Prop M 2015 REF
5,563,016
2,973

0.05345
14,005,000
7,485
Prop M 2017D
3,252,950
1,739

0.05345
133,080,000
71,130
Prop M 2017REF
5,531,586
2,957

0.05345
101,770,000
54,395
Prop M 2020 REF
5,610,160
2,999

0.05345
193,120,000
103,220
Prop M 2021
3,095,803
1,655

0.05345
122,140,000
65,282
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 12,448

0.32138%
$ 25,306,060
$ 81,329
Prop K Series 2010B
943,479
3,032

0.32138
102,205,380
328,468
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
14,464

0.32138
105,535,000
339,169
Prop K Series 2020 REF
3,990,837
12,826

0.32138
81,470,000
261,828
Total Overlapping Debt
$ 1,414,037
CFD 99-01, Improvement Area C1 Bonded Indebtedness
$ 1,321,854*
Estimated Share of Direct and Overlapping Debt
$ 2,735,891*
CFD 99-01, Improvement Area C1 Fiscal Year 2023-24 Assessed Value $ 83,993,174
Value to Lien Ratio

30.70*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area C1 will be approximately 1.45386%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 29

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA C1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$518,476
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 5,184.76
Metropolitan Water District

0.00350

18.15 Palomar Community College District, Prop M 2006B

0.00254

13.17 Palomar Community College District, Prop M 2006C

0.00068

3.53 Palomar Community College District, Prop M 2015

0.00354

18.35 Palomar Community College District, Prop M 2017

0.00207

10.73 Palomar Community College District, Prop M 2017D

0.00352

18.25 Palomar Community College District, Prop M 2020

0.00357

18.51 Palomar Community College District, Prop M 2021

0.00197

10.21 San Marcos Unified School District, Prop K Series 2010A

0.01482

76.84 San Marcos Unified School District, Prop K Series 2010B

0.00361

18.72 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722

89.28 San Marcos Unified School District, Prop K Series 2020

0.01527

79.17 1.07231%
$ 5,559.67
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 6.36
$ 6.36
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area C1(10)
1,247.03
1,107.95
1,648.15(11)
Subtotal Special taxes, Assessments and Charges
$ 2,088.31
$ 1,978.25
$ 3,431.47
Total Property Taxes
$ 7,537.93
$ 8,991.15
Total Effective Tax Rate

1.45386%

1.73415%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area C1 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area C1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area D1
General. Improvement Area D1 is located along the east side of Elfin Forest Road, south of San Elijo Road. Improvement Area D1 encompasses a total of 87 detached single family residential units. All 87 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area D1 for the current and prior four Fiscal Years.

TABLE 30

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA D1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$54,187,519
$0
$54,187,519
N/A
N/A
N/A
2020-21
$55,770,946
0 $55,770,946

2.92%
N/A

2.92%
2021-22
$57,406,403
0 $57,406,403

2.93 N/A

2.93 2022-23
$60,985,584
0 $60,985,584

6.23 N/A

6.23 2023-24
$62,813,891
0 $62,813,891

3.00 N/A

3.00 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area D1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 31

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA D1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$122,102
87 2
$1,623

1.33%
0 $0

0.00%
2019-20
123,678
87 1
725

0.59 0
0 0.00
2020-21
122,243
87 1
638

0.52 0
0 0.00
2021-22
119,594
87 0
0 0.00
0 0

0.00 2022-23
119,102
87 0
0 0.00
0 0

0.00 2023-24
119,962
87 N/A
N/A
N/A
0 0

0.00 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area D1.

TABLE 32

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA D1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
87 $164,908
$119,962

72.74%
(1) All parcels in Improvement Area D1 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area D1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area D1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.33% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area D1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area D1 Debt Report”) for Improvement Area D1, reflecting the issuance of $681,455* aggregate principal amount of Improvement Area D1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area D1 is $62,813,891 for the current Fiscal Year. The Improvement Area D1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area D1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area D1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area D1 (inclusive of the Improvement Area D1 Special Tax Refunding Bonds) is $1,738,935. The assessed valuetolien ratio for Improvement Area D1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 36.12 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 33

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA D1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area D1
% of Levy Applicable to Improvement Area D1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area D1 Metropolitan Water District(2)
$ 187,910,599
$ 2,198

0.00117%
$ 18,210,000
$ 213
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,595

0.03997%
$ 186,486,613
$ 74,541
Prop M 2006C
1,068,602
427

0.03997
3,315,000
1,325
Prop M 2015 REF
5,563,016
2,224

0.03997
14,005,000
5,598
Prop M 2017D
3,252,950
1,300

0.03997
133,080,000
53,194
Prop M 2017REF
5,531,586
2,211

0.03997
101,770,000
40,679
Prop M 2020 REF
5,610,160
2,242

0.03997
193,120,000
77,193
Prop M 2021
3,095,803
1,237

0.03997
122,140,000
48,821
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 9,309

0.24034%
$ 25,306,060
$ 60,821
Prop K Series 2010B
943,479
2,268

0.24034
102,205,380
245,643
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
10,817

0.24034
105,535,000
253,646
Prop K Series 2020 REF
3,990,837
9,592

0.24034
81,470,000
195,807
Total Overlapping Debt
$ 1,057,481
CFD 99-01, Improvement Area D1 Bonded Indebtedness
$ 681,455*
Estimated Share of Direct and Overlapping Debt
$ 1,738,935*
CFD 99-01, Improvement Area D1 Fiscal Year 2023-24 Assessed Value $ 62,813,891
Value to Lien Ratio

36.12*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area D1 will be approximately 1.36974%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 34

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA D1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$721,999
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 7,219.99
Metropolitan Water District

0.00350

25.27 Palomar Community College District, Prop M 2006B

0.00254

18.34 Palomar Community College District, Prop M 2006C

0.00068

4.91 Palomar Community College District, Prop M 2015

0.00354

25.56 Palomar Community College District, Prop M 2017

0.00207

14.95 Palomar Community College District, Prop M 2017D

0.00352

25.41 Palomar Community College District, Prop M 2020

0.00357

25.78 Palomar Community College District, Prop M 2021

0.00197

14.22 San Marcos Unified School District, Prop K Series 2010A

0.01482
107.00
San Marcos Unified School District, Prop K Series 2010B

0.00361

26.06 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
124.33
San Marcos Unified School District, Prop K Series 2020

0.01527
110.25

1.07231%
$ 7,742.06
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 CSA 17 Emergency Ambulance Services(9)

36.68 36.68

36.68 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(10)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area D1(11)
1,378.87
1,237.72
1,895.50(12)
Subtotal Special taxes, Assessments and Charges
$ 2,259.57
$ 2,147.44
$ 3,715.50
Total Property Taxes
$ 9,889.50
$ 11,457.56
Total Effective Tax Rate

1.36974%

1.58692%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) The CSA 17 Emergency Ambulance Services charge is applicable on three parcels throughout the Improvement Area. (10) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (11) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area D1 Special Tax Refunding Bonds. (12) Reflects maximum Special Tax rates prescribed by the Improvement Area D1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Fire Protection District, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area F2/V2
General. Improvement Area F2/V2 consists of properties in two zones, Zone F2 and Zone V2.

Zone F2 is located along the western edge of Wild Canyon Drive and the north side of San Elijo Road. Zone F2 consists of 42 detached single family residential units. All 42 units have been constructed and sold to individual property owners. Zone V2 is located at the northeast corner of Wild Canyon Drive and San Elijo Road. Zone V2 consists of 131 detached single family residential units. All 131 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area F2/V2 for the current and prior four Fiscal Years.

TABLE 35

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA F2/V2
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$116,050,576
$0
$116,050,576
N/A
N/A
N/A
2020-21
119,327,704
0 119,327,704

2.82%
N/A

2.82%
2021-22
121,532,051
0 121,532,051

1.85 N/A

1.85 2022-23
128,931,935
0 128,931,935

6.09 N/A

6.09 2023-24
135,170,923
0 135,170,923

4.84 N/A

4.84 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area F2/V2 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 36

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA F2/V2

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$185,854
173
0 $0

0.00%
0 $0

0.00%
2019-20
185,939
173
5 4,841

2.60 1
1,722

0.93 2020-21
191,930
173
4 3,933

2.05 1
1,777

0.93 2021-22
187,000
173
3 5,503

2.94 1
1,732

0.93 2022-23
193,666
173
3 3,076

1.59 1
1,793

0.93 2023-24
196,238
173
N/A
N/A
N/A
3 1,778

1.81 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area F2/V2.

TABLE 37

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA F2/V2
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
173
$713,813
$196,238

27.49%
(1) All parcels in Improvement Area F2/V2 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area F2/V2’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area F2/V2 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,940. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.74% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area F2/V2.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area F2/V2 Debt Report”) for Improvement Area F2/V2, reflecting the issuance of $1,582,990* aggregate principal amount of Improvement Area F2/V2 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area F2/V2 is $135,170,923 for the current Fiscal Year. The Improvement Area F2/V2 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area F2/V2 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area F2/V2 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area F2/V2 (inclusive of the Improvement Area F2/V2 Special Tax Refunding Bonds) is $3,858,612. The assessed valuetolien ratio for Improvement Area F2/V2 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 35.03 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 38

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA F2/V2
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area F2/V2
% of Levy Applicable to Improvement Area F2/V2
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area F2/V2 Metropolitan Water District(2)
$ 187,910,599
$ 4,731

0.00252%
$ 18,210,000
$ 458
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 3,433

0.08602%
$ 186,486,613
$ 160,407
Prop M 2006C
1,068,602
919

0.08602
3,315,000
2,851
Prop M 2015 REF
5,563,016
4,785

0.08602
14,005,000
12,046
Prop M 2017D
3,252,950
2,798

0.08602
133,080,000
114,469
Prop M 2017REF
5,531,586
4,758

0.08602
101,770,000
87,538
Prop M 2020 REF
5,610,160
4,826

0.08602
193,120,000
166,113
Prop M 2021
3,095,803
2,663

0.08602
122,140,000
105,059
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 20,032

0.51720%
$ 25,306,060
$ 130,883
Prop K Series 2010B
943,479
4,880

0.51720
102,205,380
528,606
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
23,276

0.51720
105,535,000
545,827
Prop K Series 2020 REF
3,990,837
20,641

0.51720
81,470,000
421,363
Total Overlapping Debt
$ 2,275,621
CFD 99-01, Improvement Area F2/V2 Bonded Indebtedness
$ 1,582,990*
Estimated Share of Direct and Overlapping Debt
$ 3,858,612*
CFD 99-01, Improvement Area F2/V2 Fiscal Year 2023-24 Assessed Value $ 135,170,923
Value to Lien Ratio

35.03*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area F2/V2 will be approximately 1.18674%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 39
THE COMMUNITY FACILITIES DISTRICT”
IMPROVEMENT AREA F2/V2
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$1,761,326
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 17,613.26
Metropolitan Water District

0.00350

61.65 Palomar Community College District, Prop M 2006B

0.00254

44.74 Palomar Community College District, Prop M 2006C

0.00068

11.98 Palomar Community College District, Prop M 2015

0.00354

62.35 Palomar Community College District, Prop M 2017

0.00207

36.46 Palomar Community College District, Prop M 2017D

0.00352

62.00 Palomar Community College District, Prop M 2020

0.00357

62.88 Palomar Community College District, Prop M 2021

0.00197

34.70 San Marcos Unified School District, Prop K Series 2010A

0.01482
261.03
San Marcos Unified School District, Prop K Series 2010B

0.00361

63.58 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
303.30
San Marcos Unified School District, Prop K Series 2020

0.01527
268.95

1.07231%
$ 18,886.87
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 7.73
$ 7.73
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area F2/V2(10)
2,178.34
1,143.87
4,783.01(11)
Subtotal Special taxes, Assessments and Charges
$ 3,020.99
$ 2,015.54
$ 6,566.33
Total Property Taxes
$ 20,902.41
$ 25,453.20
Total Effective Tax Rate

1.18674%

1.44512%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area F2/V2 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area F2/V2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area G3
General. Improvement Area G3 is located along the south side of San Elijo Road, east of Elfin Forest Road. Improvement Area G3 encompasses a total of 84 attached triplex residential condominium units. All 84 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area G3 for the current and prior four Fiscal Years.

TABLE 40

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA G3
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$37,253,547
$0
$37,253,547
N/A
N/A
N/A
2020-21
38,729,888
0 38,729,888

3.96%
N/A

3.96%
2021-22
39,993,094
0 39,993,094

3.26 N/A

3.26 2022-23
41,654,495
0 41,654,495

4.15 N/A

4.15 2023-24
43,934,142
0 43,934,142

5.47 N/A

5.47 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area G3 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 41

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA G3

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$94,826
84 0
$0

0.00%
0 $0

0.00%
2019-20
91,781
84 2
1,102

1.20 0
0 0.00
2020-21
94,342
84 1
552

0.59 0
0 0.00
2021-22
91,246
84 0
0 0.00
0 0

0.00 2022-23
95,140
84 0
0 0.00
0 0

0.00 2023-24
93,186
84 N/A
N/A
N/A
0 0

0.00 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area G3.

TABLE 42

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA G3
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
84 $125,391
$93,186

74.32%
(1) All parcels in Improvement Area G3 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area G3’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area G3 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 2.40% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area G3.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area G3 Debt Report”) for Improvement Area G3, reflecting the issuance of $496,486* aggregate principal amount of Improvement Area G3 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area G3 is $43,934,142 for the current Fiscal Year. The Improvement Area G3 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area G3 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area G3 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area G3 (inclusive of the Improvement Area G3 Special Tax Refunding Bonds) is $1,236,124. The assessed valuetolien ratio for Improvement Area G3 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 35.54 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 43

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA G3
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area G3
% of Levy Applicable to Improvement Area G3
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area G3 Metropolitan Water District(2)
$ 187,910,599
$ 1,538

0.00082%
$ 18,210,000
$ 149
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,116

0.02796%
$ 186,486,613
$ 52,137
Prop M 2006C
1,068,602
299

0.02796
3,315,000
927
Prop M 2015 REF
5,563,016
1,555

0.02796
14,005,000
3,915
Prop M 2017D
3,252,950
909

0.02796
133,080,000
37,206
Prop M 2017REF
5,531,586
1,546

0.02796
101,770,000
28,452
Prop M 2020 REF
5,610,160
1,568

0.02796
193,120,000
53,991
Prop M 2021
3,095,803
866

0.02796
122,140,000
34,147
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 6,511

0.16810%
$ 25,306,060
$ 42,540
Prop K Series 2010B
943,479
1,586

0.16810
102,205,380
171,811
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
7,565

0.16810
105,535,000
177,408
Prop K Series 2020 REF
3,990,837
6,709

0.16810
81,470,000
136,954
Total Overlapping Debt
$ 739,637
CFD 99-0, Improvement Area G2 Bonded Indebtedness
$ 496,486*
Estimated Share of Direct and Overlapping Debt
$ 1,236,124*
CFD 99-01, Improvement Area G2 Fiscal Year 2023-24 Assessed Value $ 43,934,142
Value to Lien Ratio

35.54*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area G3 will be approximately 1.43175%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 44

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA G3
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$523,026
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 5,230.26
Metropolitan Water District

0.00350

18.31 Palomar Community College District, Prop M 2006B

0.00254

13.28 Palomar Community College District, Prop M 2006C

0.00068

3.56 Palomar Community College District, Prop M 2015

0.00354

18.52 Palomar Community College District, Prop M 2017

0.00207

10.83 Palomar Community College District, Prop M 2017D

0.00352

18.41 Palomar Community College District, Prop M 2020

0.00357

18.67 Palomar Community College District, Prop M 2021

0.00197

10.30 San Marcos Unified School District, Prop K Series 2010A

0.01482

77.51 San Marcos Unified School District, Prop K Series 2010B

0.00361

18.88 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722

90.06 San Marcos Unified School District, Prop K Series 2020

0.01527

79.87 1.07231%
$ 5,608.45
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 6.36
$ 6.36
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area G3(10)
1,109.35
1,009.65
1,492.75 (11)
Subtotal Special taxes, Assessments and Charges
$ 1,950.63
$ 1,879.95
$ 3,276.07
Total Property Taxes
$ 7,488.41
$ 8,884.52
Total Effective Tax Rate

1.43175%

1.69868%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area G2 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area G2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area H1A
General. Improvement Area H1A is located along the north side of Elfin Forest Road, northwest of San Elijo Road. Improvement Area H1A encompasses a total of 55 detached single family residential units. All 55 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area H1A for the current and prior four Fiscal Years.

TABLE 45

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1A
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$39,506,249
$0
$39,506,249
N/A
N/A
N/A
2020-21
40,790,566
0 40,790,566

3.25%
N/A

3.25%
2021-22
42,135,030
0 42,135,030

3.30 N/A

3.30 2022-23
44,290,944
0 44,290,944

5.12 N/A

5.12 2023-24
47,287,173
0 47,287,173

6.76 N/A

6.76 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area H1A for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 46

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1A

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$98,679
55 0
$0

0.00%
0 $0

0.00%
2019-20
96,888
55 0
0 0.00
0 0

0.00 2020-21
96,323
55 0
0 0.00
0 0

0.00 2021-22
98,293
55 0
0 0.00
0 0

0.00 2022-23
102,382
55 0
0 0.00
0 0

0.00 2023-24
98,774
55 N/A
N/A
N/A
1 945

1.91 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area H1A.

TABLE 47

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1A
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
55 $133,293
$98,774

74.10%
(1) All parcels in Improvement Area H1A are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area H1A’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area H1A Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 2.02% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area H1A.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area H1A Debt Report”) for Improvement Area H1A, reflecting the issuance of $542,816* aggregate principal amount of Improvement Area H1A Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area H1A is $47,287,173 for the current Fiscal Year. The Improvement Area H1A Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area H1A Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area H1A is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area H1A (inclusive of the Improvement Area H1A Special Tax Refunding Bonds) is $1,338,902. The assessed valuetolien ratio for Improvement Area H1A as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 35.32 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 48

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1A
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area H1A
% of Levy Applicable to Improvement Area H1A
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area H1A Metropolitan Water District(2)
$ 187,910,599
$ 1,655

0.00088%
$ 18,210,000
$ 160
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,201

0.03009%
$ 186,486,613
$ 56,116
Prop M 2006C
1,068,602
322

0.03009
3,315,000
998
Prop M 2015 REF
5,563,016
1,674

0.03009
14,005,000
4,214
Prop M 2017D
3,252,950
979

0.03009
133,080,000
40,045
Prop M 2017REF
5,531,586
1,665

0.03009
101,770,000
30,624
Prop M 2020 REF
5,610,160
1,688

0.03009
193,120,000
58,112
Prop M 2021
3,095,803
932

0.03009
122,140,000
36,753
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 7,008

0.18093%
$ 25,306,060
$ 45,787
Prop K Series 2010B
943,479
1,707

0.18093
102,205,380
184,924
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
8,143

0.18093
105,535,000
190,948
Prop K Series 2020 REF
3,990,837
7,221

0.18093
81,470,000
147,406
Total Overlapping Debt
$ 796,086
CFD 99-01, Improvement Area H1A Bonded Indebtedness
$ 542,816*
Estimated Share of Direct and Overlapping Debt
$ 1,338,902*
CFD 99-01, Improvement Area H1A Fiscal Year 2023-24 Assessed Value $ 47,287,173
Value to Lien Ratio

35.32*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area H1A will be approximately 1.36461%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 49

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1A
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$859,767
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 8,597.67
Metropolitan Water District

0.00350

30.09 Palomar Community College District, Prop M 2006B

0.00254

21.84 Palomar Community College District, Prop M 2006C

0.00068

5.85 Palomar Community College District, Prop M 2015

0.00354

30.44 Palomar Community College District, Prop M 2017

0.00207

17.80 Palomar Community College District, Prop M 2017D

0.00352

30.26 Palomar Community College District, Prop M 2020

0.00357

30.69 Palomar Community College District, Prop M 2021

0.00197

16.94 San Marcos Unified School District, Prop K Series 2010A

0.01482
127.42
San Marcos Unified School District, Prop K Series 2010B

0.00361

31.04 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
148.05
San Marcos Unified School District, Prop K Series 2020

0.01527
131.29

1.07231%
$ 9,219.37
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area H1A(10)
1,795.88
1,640.03
2,423.50(11)
Subtotal Special taxes, Assessments and Charges
$ 2,639.90
$ 2,513.07
$ 4,206.83
Total Property Taxes
$ 11,732.44
$ 13,426.19
Total Effective Tax Rate

1.36461%

1.56161%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area H1A Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area H1A’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area H1B
General. Improvement Area H1B is located along the north side of Elfin Forest Road, northwest of San Elijo Road. Improvement Area H1B encompasses a total of 49 detached single family residential units. All 49 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area H1B for the current and prior four Fiscal Years.

TABLE 50

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1B
HISTORY OF ASSESSED VALUES (1),(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$35,320,465
$0
$35,320,465
N/A
N/A
N/A
2020-21
36,621,439
0 36,621,439

3.68%
N/A

3.68%
2021-22
37,443,963
0 37,443,963

2.25 N/A

2.25 2022-23
39,053,813
0 39,053,813

4.30 N/A

4.30 2023-24
41,148,740
0 41,148,740

5.36 N/A

5.36 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area H1B for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 51

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1B

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$95,493
49 0
$0

0.00%
0 $0

0.00%
2019-20
88,170
49 0
0 0.00
0 0

0.00 2020-21
90,290
49 0
0 0.00
0 0

0.00 2021-22
88,476
49 0
0 0.00
0 0

0.00 2022-23
92,539
49 0
0 0.00
0 0

0.00 2023-24
89,619
49 N/A
N/A
N/A
0 0

0.00 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area H1B.

TABLE 52

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1B
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
49 $119,430
$89,619

75.04%
(1) All parcels in Improvement Area H1B are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area H1B’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area H1B Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 2.25% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area H1B.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area H1B Debt Report”) for Improvement Area H1B, reflecting the issuance of $526,950* aggregate principal amount of Improvement Area H1B Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area H1B is $41,148,740 for the current Fiscal Year. The Improvement Area H1B Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area H1B Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area H1B is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area H1B (inclusive of the Improvement Area H1B Special Tax Refunding Bonds) is $1,219,695. The assessed valuetolien ratio for Improvement Area H1B as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 33.74 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 53

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1B
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area H1B
% of Levy Applicable to Improvement Area H1B
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area H1B Metropolitan Water District(2)
$ 187,910,599
$ 1,440

0.00077%
$ 18,210,000
$ 140
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,045

0.02618%
$ 186,486,613
$ 48,831
Prop M 2006C
1,068,602
280

0.02618
3,315,000
868
Prop M 2015 REF
5,563,016
1,457

0.02618
14,005,000
3,667
Prop M 2017D
3,252,950
852

0.02618
133,080,000
34,847
Prop M 2017REF
5,531,586
1,448

0.02618
101,770,000
26,648
Prop M 2020 REF
5,610,160
1,469

0.02618
193,120,000
50,568
Prop M 2021
3,095,803
811

0.02618
122,140,000
31,982
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 6,098

0.15745%
$ 25,306,060
$ 39,843
Prop K Series 2010B
943,479
1,485

0.15745
102,205,380
160,918
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
7,086

0.15745
105,535,000
166,161
Prop K Series 2020 REF
3,990,837
6,283

0.15745
81,470,000
128,271
Total Overlapping Debt
$ 692,745
CFD 99-01, Improvement Area H1B Bonded Indebtedness
$ 526,950*
Estimated Share of Direct and Overlapping Debt
$ 1,219,695*
CFD 99-01, Improvement Area H1B Fiscal Year 2023-24 Assessed Value $ 41,148,740
Value to Lien Ratio

33.74*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area H1B will be approximately 1.37636%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 54

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA H1B
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$839,770
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 8,397.70
Metropolitan Water District

0.00350

29.39 Palomar Community College District, Prop M 2006B

0.00254

21.33 Palomar Community College District, Prop M 2006C

0.00068

5.71 Palomar Community College District, Prop M 2015

0.00354

29.73 Palomar Community College District, Prop M 2017

0.00207

17.38 Palomar Community College District, Prop M 2017D

0.00352

29.56 Palomar Community College District, Prop M 2020

0.00357

29.98 Palomar Community College District, Prop M 2021

0.00197

16.54 San Marcos Unified School District, Prop K Series 2010A

0.01482
124.45
San Marcos Unified School District, Prop K Series 2010B

0.00361

30.32 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
144.61
San Marcos Unified School District, Prop K Series 2020

0.01527
128.23

1.07231%
$ 9,004.94
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area H1B(10)
1,828.96
1,680.30
2,437.35(11)
Subtotal Special taxes, Assessments and Charges
$ 2,672.98
$ 2,553.34
$ 4,220.67
Total Property Taxes
$ 11,558.28
$ 13,225.61
Total Effective Tax Rate

1.37636%

1.57491%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area H1B Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area H1B’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area J
General. Improvement Area J is located along the west side of Double Peak Drive and the north side of San Elijo Road. Improvement Area J encompasses a total of 71 detached single family residential units. All 71 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area J for the current and prior four Fiscal Years.

TABLE 55

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA J
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$60,407,853
$0
$60,407,853
N/A
N/A
N/A
2020-21
62,663,054
0 62,663,054

3.73%
N/A

3.73%
2021-22
64,785,292
0 64,785,292

3.39 N/A

3.39 2022-23
70,813,975
0 70,813,975

9.31 N/A

9.31 2023-24
74,732,490
0 74,732,490

5.53 N/A

5.53 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area J for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 56

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA J

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$267,584
71 0
$0

0.00%
0 $0

0.00%
2019-20
260,245
71 0
0 0.00
0 0

0.00 2020-21
265,686
71 0
0 0.00
0 0

0.00 2021-22
259,053
71 0
0 0.00
0 0

0.00 2022-23
269,478
71 0
0 0.00
0 0

0.00 2023-24
265,274
71 N/A
N/A
N/A
0 0

0.00 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area J.

TABLE 57

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA J
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
71 $385,705
$265,274

68.78%
(1) All parcels in Improvement Area J are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area J’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area J Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.49% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area J.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area J Debt Report”) for Improvement Area J, reflecting the issuance of $2,302,782* aggregate principal amount of Improvement Area J Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area J is $74,732,490 for the current Fiscal Year. The Improvement Area J Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area J Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area J is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area J (inclusive of the Improvement Area J Special Tax Refunding Bonds) is $3,560,914. The assessed valuetolien ratio for Improvement Area J as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 20.99 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 58

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA J
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area J
% of Levy Applicable to Improvement Area J
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area J Metropolitan Water District(2)
$ 187,910,599
$ 2,616

0.00139%
$ 18,210,000
$ 253
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,898

0.04756%
$ 186,486,613
$ 88,685
Prop M 2006C
1,068,602
508

0.04756
3,315,000
1,576
Prop M 2015 REF
5,563,016
2,646

0.04756
14,005,000
6,660
Prop M 2017D
3,252,950
1,547

0.04756
133,080,000
63,287
Prop M 2017REF
5,531,586
2,631

0.04756
101,770,000
48,397
Prop M 2020 REF
5,610,160
2,668

0.04756
193,120,000
91,840
Prop M 2021
3,095,803
1,472

0.04756
122,140,000
58,085
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 11,075

0.28595%
$ 25,306,060
$ 72,362
Prop K Series 2010B
943,479
2,698

0.28595
102,205,380
292,253
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
12,869

0.28595
105,535,000
301,773
Prop K Series 2020 REF
3,990,837
11,412

0.28595
81,470,000
232,960
Total Overlapping Debt
$ 1,258,132
CFD 99-01, Improvement Area J Bonded Indebtedness
$ 2,302,782*
Estimated Share of Direct and Overlapping Debt
$ 3,560,914*
CFD 99-01, Improvement Area J Fiscal Year 2023-24 Assessed Value $ 74,732,490
Value to Lien Ratio

20.99*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area J will be approximately 1.47163%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 59

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA J
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$1,052,570
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 10,525.70
Metropolitan Water District

0.00350

36.84 Palomar Community College District, Prop M 2006B

0.00254

26.74 Palomar Community College District, Prop M 2006C

0.00068

7.16 Palomar Community College District, Prop M 2015

0.00354

37.26 Palomar Community College District, Prop M 2017

0.00207

21.79 Palomar Community College District, Prop M 2017D

0.00352

37.05 Palomar Community College District, Prop M 2020

0.00357

37.58 Palomar Community College District, Prop M 2021

0.00197

20.74 San Marcos Unified School District, Prop K Series 2010A

0.01482
155.99
San Marcos Unified School District, Prop K Series 2010B

0.00361

38.00 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
181.25
San Marcos Unified School District, Prop K Series 2020

0.01527
160.73

1.07231%
$ 11,286.82
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area J(10)
3,736.24
3,330.12
5,432.47(11)
Subtotal Special taxes, Assessments and Charges
$ 4,580.26
$ 4,203.16
$ 7,215.79
Total Property Taxes
$ 15,489.98
$ 18,502.61
Total Effective Tax Rate

1.47163%

1.75785%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area J Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area J’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area M
General. Improvement Area M is located along the north side of Elfin Forest Road, north of San Elijo Road. Improvement Area M encompasses a total of 107 detached single family residential units. All 107 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area M for the current and prior four Fiscal Years.

TABLE 60

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA M
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$106,945,877
$0
$106,945,877
N/A
N/A
N/A
2020-21
110,662,078
0 110,662,078

3.47%
N/A

3.47%
2021-22
113,422,347
0 113,422,347

2.49 N/A

2.49 2022-23
121,688,430
0 121,688,430

7.29 N/A

7.29 2023-24
130,476,765
0 130,476,765

7.22 N/A

7.22 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area M for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 61

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA M

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$256,537
107
1 $1,092

0.43%
0 $0

0.00%
2019-20
260,248
107
1 2,215

0.85 0
0 0.00
2020-21
258,311
107
0 0

0.00 0
0 0.00
2021-22
251,286
107
0 0

0.00 0
0 0.00
2022-23
258,691
107
0 0

0.00 0
0 0.00
2023-24
257,354
107
N/A
N/A
N/A
1 1,095

0.85 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area M.

TABLE 62

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA M
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
107
$344,472
$257,354

74.71%
(1) All parcels in Improvement Area M are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area M’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area M Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.14% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area M.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area M Debt Report”) for Improvement Area M, reflecting the issuance of $1,587,703* aggregate principal amount of Improvement Area M Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area M is $130,476,765 for the current Fiscal Year. The Improvement Area M Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area M Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area M is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area M (inclusive of the Improvement Area M Special Tax Refunding Bonds) is $3,784,298. The assessed valuetolien ratio for Improvement Area M as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 34.48 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 63

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA M
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area M
% of Levy Applicable to Improvement Area M
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area M Metropolitan Water District(2)
$ 187,910,599
$ 4,567

0.00243%
$ 18,210,000
$ 443
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 3,314

0.08303%
$ 186,486,613
$ 154,837
Prop M 2006C
1,068,602
887

0.08303
3,315,000
2,752
Prop M 2015 REF
5,563,016
4,619

0.08303
14,005,000
11,628
Prop M 2017D
3,252,950
2,701

0.08303
133,080,000
110,494
Prop M 2017REF
5,531,586
4,593

0.08303
101,770,000
84,498
Prop M 2020 REF
5,610,160
4,658

0.08303
193,120,000
160,344
Prop M 2021
3,095,803
2,570

0.08303
122,140,000
101,411
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 19,337

0.49924%
$ 25,306,060
$ 126,338
Prop K Series 2010B
943,479
4,710

0.49924
102,205,380
510,249
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
22,468

0.49924
105,535,000
526,872
Prop K Series 2020 REF
3,990,837
19,924

0.49924
81,470,000
406,730
Total Overlapping Debt
$ 2,196,595
CFD 99-01, Improvement Area M Bonded Indebtedness
$ 1,587,703*
Estimated Share of Direct and Overlapping Debt
$ 3,784,298*
CFD 99-01, Improvement Area M Fiscal Year 2023-24 Assessed Value $ 130,476,765
Value to Lien Ratio

34.48*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area M will be approximately 1.31848%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 64

THE COMMUNITY FACILITIES DISTRICT

IMPROVEMENT AREA M
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$1,219,409
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 12,194.09
Metropolitan Water District

0.00350

42.68 Palomar Community College District, Prop M 2006B

0.00254

30.97 Palomar Community College District, Prop M 2006C

0.00068

8.29 Palomar Community College District, Prop M 2015

0.00354

43.17 Palomar Community College District, Prop M 2017

0.00207

25.24 Palomar Community College District, Prop M 2017D

0.00352

42.92 Palomar Community College District, Prop M 2020

0.00357

43.53 Palomar Community College District, Prop M 2021

0.00197

24.02 San Marcos Unified School District, Prop K Series 2010A

0.01482
180.72
San Marcos Unified School District, Prop K Series 2010B

0.00361

44.02 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
209.98
San Marcos Unified School District, Prop K Series 2020

0.01527
186.20

1.07231%
$ 13,075.84
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area M(10)
2,405.17
2,128.72
3,219.36(11)
Subtotal Special taxes, Assessments and Charges
$ 3,249.19
$ 3,001.76
$ 5,002.68
Total Property Taxes
$ 16,077.60
$ 18,078.53
Total Effective Tax Rate

1.31848%

1.48256%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area M Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area M’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area N1
General. Improvement Area N1 is located along the northwest boundary of the San Elijo Hills master plan, north of Elfin Forest Road. Improvement Area N1 encompasses a total of 84 detached single family residential units which have been constructed and sold to individual property owners. There is currently one undeveloped lot in Improvement Area N1 for which there is no improvement value.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area N1 for the current and prior four Fiscal Years.

TABLE 65

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$65,825,110
$0
$65,825,110
N/A
N/A
N/A
2020-21
68,083,707
0 68,083,707

3.43%
N/A

3.43%
2021-22
70,505,358
0 70,505,358

3.56 N/A

3.56 2022-23
74,943,423
0 74,943,423

6.29 N/A

6.29 2023-24
78,648,150
0 78,648,150

4.94 N/A

4.94 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area N1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 66

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$170,741
84 1
$1,142

0.67%
0 $0

0.00%
2019-20
167,620
84 0
0 0.00
0 0

0.00 2020-21
163,200
84 0
0 0.00
0 0

0.00 2021-22
163,230
84 0
0 0.00
0 0

0.00 2022-23
167,155
84 0
0 0.00
0 0

0.00 2023-24
165,885
84 N/A
N/A
N/A
0 0

0.00 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area N1.

TABLE 67

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Development Status
Number of
Parcels(1)
Maximum
Special Tax(1)
Fiscal Year 2023-24
Special Tax Levy(2)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(3)
Developed
84 $225,055
$165,884

75.38%
Undeveloped
1 0
0 0.00
(1) Reflects Special Tax rates prescribed by Improvement Area N1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (2) Includes debt service on the Improvement Area N1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (3) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.35% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area N1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area N1 Debt Report”) for Improvement Area N1, reflecting the issuance of $979,309* aggregate principal amount of Improvement Area N1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area N1 is $78,648,150 for the current Fiscal Year. The Improvement Area N1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area N1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area N1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area N1 (inclusive of the Improvement Area N1 Special Tax Refunding Bonds) is $2,303,362. The assessed valuetolien ratio for Improvement Area N1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 34.14 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 68

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area N1
% of Levy Applicable to Improvement Area N1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area N1 Metropolitan Water District(2)
$ 187,910,599
$ 2,753

0.00146%
$ 18,210,000
$ 267
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,998

0.05005%
$ 186,486,613
$ 93,332
Prop M 2006C
1,068,602
535

0.05005
3,315,000
1,659
Prop M 2015 REF
5,563,016
2,784

0.05005
14,005,000
7,009
Prop M 2017D
3,252,950
1,628

0.05005
133,080,000
66,604
Prop M 2017REF
5,531,586
2,768

0.05005
101,770,000
50,934
Prop M 2020 REF
5,610,160
2,808

0.05005
193,120,000
96,652
Prop M 2021
3,095,803
1,549

0.05005
122,140,000
61,128
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 11,656

0.30093%
$ 25,306,060
$ 76,154
Prop K Series 2010B
943,479
2,839

0.30093
102,205,380
307,567
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
13,543

0.30093
105,535,000
317,587
Prop K Series 2020 REF
3,990,837
12,010

0.30093
81,470,000
245,168
Total Overlapping Debt
$ 1,324,061
CFD 99-01, Improvement Area N1 Bonded Indebtedness
$ 979,309*
Estimated Share of Direct and Overlapping Debt
$ 2,303,362*
CFD 99-01, Improvement Area N1 Fiscal Year 2023-24 Assessed Value $ 78,648,150
Value to Lien Ratio

34.14*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area N1 will be approximately 1.35308%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 69

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$925,278
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 9,252.78
Metropolitan Water District

0.00350

32.38 Palomar Community College District, Prop M 2006B

0.00254

23.50 Palomar Community College District, Prop M 2006C

0.00068

6.29 Palomar Community College District, Prop M 2015

0.00354

32.75 Palomar Community College District, Prop M 2017

0.00207

19.15 Palomar Community College District, Prop M 2017D

0.00352

32.57 Palomar Community College District, Prop M 2020

0.00357

33.03 Palomar Community College District, Prop M 2021

0.00197

18.23 San Marcos Unified School District, Prop K Series 2010A

0.01482
137.13
San Marcos Unified School District, Prop K Series 2010B

0.00361

33.40 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
159.33
San Marcos Unified School District, Prop K Series 2020

0.01527
141.29

1.07231%
$ 9,921.85
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.02
$ 9.02
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area N1(10)
1,951.58
1,724.90
2,647.71(11)
Subtotal Special taxes, Assessments and Charges
$ 2,795.52
$ 2,597.86
$ 4,431.03
Total Property Taxes
$ 12,519.71
$ 14,352.88
Total Effective Tax Rate

1.35308%

1.55120%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area N1 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area N1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area N2
General. Improvement Area N2 is located along the northwest boundary of the San Elijo Hills master plan, north of Elfin Forest Road. Improvement Area N2 encompasses a total of 76 detached single family residential units. All 76 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area N2 for the current and prior four Fiscal Years.

TABLE 70

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N2
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$58,816,375
$0
$58,816,375
N/A
N/A
N/A
2020-21
62,082,229
0 62,082,229

5.55%
N/A

5.55%
2021-22
63,357,037
0 63,357,037

2.05 N/A

2.05 2022-23
67,451,200
0 67,451,200

6.46 N/A

6.46 2023-24
71,339,584
0 71,339,584

5.76 N/A

5.76 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area N2 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 71

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N2

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$152,451
76 1
$1,042

0.68%
0 $0

0.00%
2019-20
152,669
76 1
2,087

1.37 0
0 0.00
2020-21
153,205
76 1
2,094

1.37 0
0 0.00
2021-22
153,433
76 1
1,008

0.66 0
0 0.00
2022-23
152,830
76 1
1,004

0.66 1
1,004

0.66 2023-24
145,711
76 N/A
N/A
N/A
2 1,873

2.57 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area N2.

TABLE 72

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N2
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
76 $202,312
$145,712

72.02%
(1) All parcels in Improvement Area N2 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area N2’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area N2 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.49% of the Fiscal Year 2023-24Special Tax levy in Improvement Area N2.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area N2 Debt Report”) for Improvement Area N2, reflecting the issuance of $957,379* aggregate principal amount of Improvement Area N2 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area N2 is $71,339,584 for the current Fiscal Year. The Improvement Area N2 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area N2 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area N2 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area N2 (inclusive of the Improvement Area N2 Special Tax Refunding Bonds) is $2,158,391. The assessed valuetolien ratio for Improvement Area N2 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 33.05 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 73

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N2
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area N2
% of Levy Applicable to Improvement Area N2
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area N2 Metropolitan Water District(2)
$ 187,910,599
$ 2,497

0.00133%
$ 18,210,000
$ 242
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,812

0.04540%
$ 186,486,613
$ 84,659
Prop M 2006C
1,068,602
485

0.04540
3,315,000
1,505
Prop M 2015 REF
5,563,016
2,525

0.04540
14,005,000
6,358
Prop M 2017D
3,252,950
1,477

0.04540
133,080,000
60,414
Prop M 2017REF
5,531,586
2,511

0.04540
101,770,000
46,200
Prop M 2020 REF
5,610,160
2,547

0.04540
193,120,000
87,670
Prop M 2021
3,095,803
1,405

0.04540
122,140,000
55,447
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 10,573

0.27296%
$ 25,306,060
$ 69,076
Prop K Series 2010B
943,479
2,575

0.27296
102,205,380
278,984
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
12,285

0.27296
105,535,000
288,073
Prop K Series 2020 REF
3,990,837
10,894

0.27296
81,470,000
222,384
Total Overlapping Debt
$ 1,201,012
CFD 99-01, Improvement Area N2 Bonded Indebtedness
$ 957,379*
Estimated Share of Direct and Overlapping Debt
$ 2,158,391*
CFD 99-01, Improvement Area N2 Fiscal Year 2023-24 Assessed Value $ 71,339,584
Value to Lien Ratio

33.05*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area N2 will be approximately 1.35330%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 74

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA N2
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$938,679
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 9,386.79
Metropolitan Water District

0.00350

31.88 Palomar Community College District, Prop M 2006B

0.00254

23.84 Palomar Community College District, Prop M 2006C

0.00068

6.38 Palomar Community College District, Prop M 2015

0.00354

33.23 Palomar Community College District, Prop M 2017

0.00207

19.43 Palomar Community College District, Prop M 2017D

0.00352

33.04 Palomar Community College District, Prop M 2020

0.00357

33.51 Palomar Community College District, Prop M 2021

0.00197

18.49 San Marcos Unified School District, Prop K Series 2010A

0.01482
139.11
San Marcos Unified School District, Prop K Series 2010B

0.00361

33.89 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
161.64
San Marcos Unified School District, Prop K Series 2020

0.01527
143.34

1.07231%
$ 10,065.55
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area N2(10)
1,917.24
1,764.51
2,662.00(11)
Subtotal Special taxes, Assessments and Charges
$ 2,761.26
$ 2,637.55
$ 4,445.32
Total Property Taxes
$ 12,703.10
$ 14,510.87
Total Effective Tax Rate

1.35330%

1.54588%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area N2 Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area N2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area R1
General. Improvement Area R1 is located south of San Marcos Boulevard on the north and south sides of Via Vera Cruz. Improvement Area R1 encompasses a total of 87 detached single family residential units. All 87 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area R1 for the current and prior four Fiscal Years.

TABLE 75

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R1
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$59,271,746
$0
$59,271,746
N/A
N/A
N/A
2020-21
61,671,992
0 61,671,992

4.05%
N/A

4.05%
2021-22
63,115,596
0 63,115,596

2.34 N/A

2.34 2022-23
67,162,154
0 67,162,154

6.41 N/A

6.41 2023-24
69,953,189
0 69,953,189

4.16 N/A

4.16 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area R1 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 76

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R1

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$164,126
87 0
$0

0.00%
0 $0

0.00%
2019-20
165,461
87 0
0 0.00
0 0

0.00 2020-21
169,180
87 1
2,079

1.23 0
0 0.00
2021-22
168,142
87 0
0 0.00
0 0

0.00 2022-23
169,620
87 1
1,636

0.96 0
0 0.00
2023-24
172,391
87 N/A
N/A
N/A
2 1,663

1.93 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area R1.

TABLE 77

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R1
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
87 $219,461
$172,391

78.55%
(1) All parcels in Improvement Area R1 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area R1’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area R1 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.36% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area R1.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area R1 Debt Report”) for Improvement Area R1, reflecting the issuance of $1,080,779* aggregate principal amount of Improvement Area R1 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area R1 is $69,953,189 for the current Fiscal Year. The Improvement Area R1 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area R1 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area R1 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area R1 (inclusive of the Improvement Area R1 Special Tax Refunding Bonds) is $2,644,306. The assessed valuetolien ratio for Improvement Area R1 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 26.45 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 78

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R1
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area R1
% of Levy Applicable to Improvement Area R1
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area R1 Metropolitan Water District(2)
$ 187,910,599
$ 2,448

0.00130%
$ 18,210,000
$ 237
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,777

0.04451%
$ 186,486,613
$ 83,013
Prop M 2006C
1,068,602
476

0.04451
3,315,000
1,476
Prop M 2015 REF
5,563,016
2,476

0.04451
14,005,000
6,234
Prop M 2017D
3,252,950
1,448

0.04451
133,080,000
59,240
Prop M 2017REF
5,531,586
2,462

0.04451
101,770,000
45,302
Prop M 2020 REF
5,610,160
2,497

0.04451
193,120,000
85,966
Prop M 2021
3,095,803
1,378

0.04451
122,140,000
54,370
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 10,367

0.26766%
$ 25,306,060
$ 67,734
Prop K Series 2010B
943,479
2,525

0.26766
102,205,380
273,562
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
12,046

0.26766
105,535,000
282,474
Prop K Series 2020 REF
3,990,837
10,682

0.26766
81,470,000
218,062
Total Overlapping Debt
$ 1,563,527
CFD 99-01, Improvement Area R1 Bonded Indebtedness
$ 1,080,779*
Estimated Share of Direct and Overlapping Debt
$ 2,644,306*
CFD 99-01, Improvement Area R1 Fiscal Year 2023-24 Assessed Value $ 69,953,189
Value to Lien Ratio

26.45*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District..

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area R1 will be approximately 1.41593%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 79

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R1
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$804,060
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 8,040.60
Metropolitan Water District

0.00350

28.14 Palomar Community College District, Prop M 2006B

0.00254

20.42 Palomar Community College District, Prop M 2006C

0.00068

5.47 Palomar Community College District, Prop M 2015

0.00354

28.46 Palomar Community College District, Prop M 2017

0.00207

16.64 Palomar Community College District, Prop M 2017D

0.00352

28.30 Palomar Community College District, Prop M 2020

0.00357

28.70 Palomar Community College District, Prop M 2021

0.00197

15.84 Palomar Health, 2005A

0.03300
265.34
San Marcos Unified School District, Prop K Series 2010A

0.01482
119.16
San Marcos Unified School District, Prop K Series 2010B

0.00361

29.03 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
138.46
San Marcos Unified School District, Prop K Series 2020

0.01527
122.78

1.10531%
$ 8,887.35
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.07
$ 9.07
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-19

95.64 100.23
100.23
San Marcos CFD No. 99-01, Improvement Area R1(9)
1,981.50
1,685.27
2,522.54(10)
Subtotal Special taxes, Assessments and Charges
$ 2,767.53
$ 2,497.53
$ 3,339.18
Total Property Taxes
$ 11,384.89
$ 12,226.53
Total Effective Tax Rate

1.41593%

1.52060%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area R1 Special Tax Refunding Bonds. (10) Reflects maximum Special Tax rates prescribed by the Improvement Area R1’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area R2
General. Improvement Area R2 is located south of San Marcos Boulevard on the north and south sides of Via Vera Cruz. Improvement Area R2 encompasses a total of 61 detached single family residential units. All 61 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area R2 for the current and prior four Fiscal Years.

TABLE 80

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R2
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$51,712,354
$0
$51,712,354
N/A
N/A
N/A
2020-21
54,100,048
0 54,100,048

4.62%
N/A

4.62%
2021-22
55,672,462
0 55,672,462

2.91 N/A

2.91 2022-23
59,421,768
0 59,421,768

6.73 N/A

6.73 2023-24
62,780,261
0 62,780,261

5.65 N/A

5.65 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area R2 for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 81

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R2

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$136,431
61 0
$0

0.00%
0 $0

0.00%
2019-20
130,772
61 2
2,075

1.59 0
0 0.00
2020-21
133,334
61 0
0 0.00
0 0

0.00 2021-22
129,859
61 0
0 0.00
0 0

0.00 2022-23
136,979
61 0
0 0.00
0 0

0.00 2023-24
137,619
61 N/A
N/A
N/A
4 4,571

6.64 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area R2.

TABLE 82

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R2
SUMMARY OF FISCAL YEAR 2023 -24 SPECIAL TAX LEVY
Number of
Parcels(1)
Maximum
Special Tax(2)
Fiscal Year 2023-24
Special Tax Levy(3)
Fiscal Year 2023-24
Special Tax Levy
As a Percentage of
Maximum Special Tax(4)
61 $178,619
$137,619

77.05%
(1) All parcels in Improvement Area R2 are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area R2’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area R2 Prior Special Tax Bonds and Administrative Expenses in the amount of $18,919. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.89% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area R2.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area R2 Debt Report”) for Improvement Area R2, reflecting the issuance of $846,628* aggregate principal amount of Improvement Area R2 Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area R2 is $62,780,261 for the current Fiscal Year. The Improvement Area R2 Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area R2 Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area R2 is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area R2 (inclusive of the Improvement Area R2 Special Tax Refunding Bonds) is $2,249,833. The assessed valuetolien ratio for Improvement Area R2 as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 27.90 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 83

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R2
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area R2
% of Levy Applicable to Improvement Area R2
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area R2 Metropolitan Water District(2)
$ 187,910,599
$ 2,197

0.00117%
$ 18,210,000
$ 213
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,595

0.03995%
$ 186,486,613
$ 74,501
Prop M 2006C
1,068,602
427

0.03995
3,315,000
1,324
Prop M 2015 REF
5,563,016
2,222

0.03995
14,005,000
5,595
Prop M 2017D
3,252,950
1,300

0.03995
133,080,000
53,165
Prop M 2017REF
5,531,586
2,210

0.03995
101,770,000
40,657
Prop M 2020 REF
5,610,160
2,241

0.03995
193,120,000
77,151
Prop M 2021
3,095,803
1,237

0.03995
122,140,000
48,795
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 9,304

0.24021%
$ 25,306,060
$ 60,789
Prop K Series 2010B
943,479
2,266

0.24021
102,205,380
245,512
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
10,811

0.24021
105,535,000
253,510
Prop K Series 2020 REF
3,990,837
9,587

0.24021
81,470,000
195,702
Total Overlapping Debt
$ 1,403,205
CFD 99-01, Improvement Area R2 Bonded Indebtedness
$ 846,628*
Estimated Share of Direct and Overlapping Debt
$ 2,249,833*
CFD 99-01, Improvement Area R2 Fiscal Year 2023-24 Assessed Value $ 62,780,261
Value to Lien Ratio

27.90*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area R2 will be approximately 1.37884%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 84

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA R2
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$1,029,185
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 10,291.85
Metropolitan Water District

0.00350

36.02 Palomar Community College District, Prop M 2006B

0.00254

26.14 Palomar Community College District, Prop M 2006C

0.00068

7.00 Palomar Community College District, Prop M 2015

0.00354

36.43 Palomar Community College District, Prop M 2017

0.00207

21.30 Palomar Community College District, Prop M 2017D

0.00352

36.23 Palomar Community College District, Prop M 2020

0.00357

36.74 Palomar Community College District, Prop M 2021

0.00197

20.27 Palomar Health, 2005A

0.03300
339.63
San Marcos Unified School District, Prop K Series 2010A

0.01482
152.53
San Marcos Unified School District, Prop K Series 2010B

0.00361

37.15 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
177.23
San Marcos Unified School District, Prop K Series 2020

0.01527
157.16

1.10531%
$ 11,375.68
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-19

95.64 100.23
100.23
San Marcos CFD No. 99-01, Improvement Area R2(9)
2,256.04
2,002.86
2,928.19(10)
Subtotal Special taxes, Assessments and Charges
$ 3,042.10
$ 2,815.16
$ 3,744.82
Total Property Taxes
$ 14,190.84
$ 15,120.50
Total Effective Tax Rate

1.37884%

1.46917%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area R2 Special Tax Refunding Bonds. (10) Reflects maximum Special Tax rates prescribed by the Improvement Area R2’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Improvement Area V1A
General. Improvement Area V1A is located along the east side of Wild Canyon Drive and the north side of San Elijo Road. Improvement Area V1A encompasses a total of 64 detached single family residential units. All 64 units have been constructed and sold to individual property owners.

Historic Assessed Values. The table below sets forth historic assessed values within Improvement Area V1A for the current and prior four Fiscal Years.

TABLE 85

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA V1A
HISTORY OF ASSESSED VALUES(1)(2)
Fiscal Year
Residential Property Net Assessed Value
Other Property Net Assessed Value
Total Property Net Assessed Value
Increase/ (Decrease) in Residential Property Net Assessed Value Increase/ (Decrease) in Other Property Net Assessed Value Increase/ (Decrease) in Total Property Net Assessed Value 2019-20
$45,195,627
$0
$45,195,627
N/A
N/A
N/A
2020-21
46,519,483
0 46,519,483

2.93%
N/A

2.93%
2021-22
47,663,081
0 47,663,081

2.46 N/A

2.46 2022-23
49,808,940
0 49,808,940

4.50 N/A

4.50 2023-24
52,484,650
0 52,484,650

5.37 N/A

5.37 (1) Assessed values as of January 1 of Fiscal Year shown provided by the San Diego County Assessor. Assessed value is calculated as the sum of land value and improvement value net of exemptions. (2) Excludes parcels, if any, for which Special Tax obligation has been prepaid.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Assessor.

Delinquency History. The following table summarizes the historical delinquencies for Improvement Area V1A for the last five Fiscal Years and the first installment for Fiscal Year 2023-24.

TABLE 86

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA V1A

HISTORY OF DELINQUENCIES
Fiscal Year End Delinquencies(1)
Delinquencies as of January 2, 2024(1)
Fiscal Year
Amount Levied
Parcels Levied
Parcels Delinquent
Amount Delinquent
Percent Delinquent
Parcels Delinquent
Amount Delinquent
Percent Delinquent
2018-19
$167,592
64 0
$0

0.00%
0 $0

0.00%
2019-20
167,169
64 0
0 0.00
0 0

0.00 2020-21
163,911
64 1
1,241

0.76 0
0 0.00
2021-22
159,359
64 0
0 0.00
0 0

0.00 2022-23
164,305
64 0
0 0.00
0 0

0.00 2023-24
165,209
64 N/A
N/A
N/A
1 1,243

1.50 (1) As of June 30 for Fiscal Years 2018-19 through 2022-23. Delinquencies for Fiscal Year 2023-24 are for the first installment only.

Sources: 30 Three Sixty Public Finance, Inc. and San Diego County Auditor-Controller.

Fiscal Year 2023-24 Special Tax Levy. The following table summarizes the Fiscal Year 2023-24 Special Tax levy for Improvement Area V1A.

TABLE 87

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA V1A
SUMMARY OF FISCAL YEAR 2023-24 SPECIAL TAX LEVY
Number of Parcels(1)
Maximum Special Tax(2)
Fiscal Year 2023-24 Special Tax Levy(3)
Fiscal Year 2023-24 Special Tax Levy as a Percentage of Maximum Special Tax(4) 64 $ 238,709
$165,209

69.21%
(1) All parcels in Improvement Area V1A are classified as Developed Property. (2) Reflects Special Tax rates prescribed by Improvement Area V1A’s Rate and Method. However, pursuant to Government Code § 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. (3) Includes debt service on the Improvement Area V1A Prior Special Tax Bonds and Administrative Expenses in the amount of $19,708. (4) Fiscal Year 2023-24 Special Tax Levy column divided by Maximum Special Tax column.

Source: 30 Three Sixty Public Finance, Inc.

Based on ownership set forth in the tax roll for Fiscal Year 2023-24, no property owner is responsible for more than 1.64% of the Fiscal Year 2023-24 Special Tax levy in Improvement Area V1A.

Direct and Overlapping Debt. Set forth below is the statement of direct and overlapping debt (the “Improvement Area V1A Debt Report”) for Improvement Area V1A, reflecting the issuance of $1,347,189* aggregate principal amount of Improvement Area V1A Special Tax Refunding Bonds. The table indicates that the assessed value of the Taxable Property (as such term is defined in the Rate and Method) within Improvement Area V1A is $52,484,650 for the current Fiscal Year. The Improvement Area V1A Debt Report has been derived from data assembled and reported to the Authority by 30 Three Sixty Public Finance, Inc. None of the Authority, the Community Facilities District, the City nor the Underwriter has independently verified the information in the Improvement Area V1A Debt Report and do not guarantee its completeness or accuracy.

The property within Improvement Area V1A is subject to existing taxes and assessments which secure debt. The estimated portion of such debt allocable to Improvement Area V1A (inclusive of the Improvement Area V1A Special Tax Refunding Bonds) is $2,230,776. The assessed valuetolien ratio for Improvement Area V1A as a whole, calculated by dividing the Fiscal Year 2023-24 assessed value by the total amount of direct and overlapping debt, is 23.53 to 1*. The valuetolien ratio of individual parcels will vary from this average. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 88

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA V1A
ESTIMATED FISCAL YEAR 2024-25 OVERALL DIRECT AND OVERLAPPING DEBT BASED ON FISCAL YEAR 2023-24 ASSESSOR’S ROLL VALUES
Overlapping Debt(1)
Estimated Total Levy
Estimated Levy Applicable to Improvement Area V1A
% of Levy Applicable to Improvement Area V1A
Estimated Total Outstanding Overlapping Debt
Estimated Outstanding Overlapping Debt Applicable to Improvement Area V1A Metropolitan Water District(2)
$ 187,910,599
$ 1,837

0.00098%
$ 18,210,000
$ 178
Palomar Community College District
Prop M 2006B
$ 3,991,542
$ 1,333

0.03340%
$ 186,486,613
$ 62,283
Prop M 2006C
1,068,602
357

0.03340
3,315,000
1,107
Prop M 2015 REF
5,563,016
1,858

0.03340
14,005,000
4,677
Prop M 2017D
3,252,950
1,086

0.03340
133,080,000
44,447
Prop M 2017REF
5,531,586
1,847

0.03340
101,770,000
33,990
Prop M 2020 REF
5,610,160
1,874

0.03340
193,120,000
64,499
Prop M 2021
3,095,803
1,034

0.03340
122,140,000
40,793
San Marcos Unified School District
Prop K Series 2010A
$ 3,873,228
$ 7,778

0.20082%
$ 25,306,060
$ 50,820
Prop K Series 2010B
943,479
1,895

0.20082
102,205,380
205,249
Prop K Series 2010C
0 0
N/A
0 N/A
Prop K Series 2017 REF
4,500,472
9,038

0.20082
105,535,000
211,936
Prop K Series 2020 REF
3,990,837
8,014

0.20082
81,470,000
163,608
Total Overlapping Debt
$ 883,586
CFD 99-01, Improvement Area V1A Bonded Indebtedness
$ 1,347,189*
Estimated Share of Direct and Overlapping Debt
$ 2,230,776*
CFD 99-01, Improvement Area V1A Fiscal Year 2023-24 Assessed Value $ 52,484,650
Value to Lien Ratio

23.53*
* Preliminary, subject to change.
(1) As of April 1, 2024 for Metropolitan Water District, Palomar Community College District, and San Marcos Unified School District. Excludes PACE assessment debt. (2) Excludes MWD’s share of State general obligation bonds pursuant to its State water contract.

Sources: 30 Three Sixty Public Finance, Inc., Metropolitan Water District, Official Statements for Palomar Community College District, Palomar Health, San Diego County Assessor, and San Marcos Unified School District.

Estimated Average Effective Tax Rate. The Special Tax Consultant has calculated that the total effective tax rate within Improvement Area V1A will be approximately 1.45936%, as shown in the following table. The estimated tax rates and amounts presented below are based on currently available information. The actual amounts charged may vary and may increase or decrease in future years. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
TABLE 89

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREA V1A
EFFECTIVE TAX RATE(1)
Fiscal Year 2023-24 Net Assessed Value(2)
$820,073
Ad Valorem Property Taxes
Fiscal Year
2023-24
Tax Rate
Fiscal Year
2023-24
Tax Amount(3)
Base Property Tax Rate

1.00000%
$ 8,200.73
Metropolitan Water District

0.00350

28.70 Palomar Community College District, Prop M 2006B

0.00254

20.83 Palomar Community College District, Prop M 2006C

0.00068

5.58 Palomar Community College District, Prop M 2015

0.00354

29.03 Palomar Community College District, Prop M 2017

0.00207

16.98 Palomar Community College District, Prop M 2017D

0.00352

28.87 Palomar Community College District, Prop M 2020

0.00357

29.28 Palomar Community College District, Prop M 2021

0.00197

16.16 San Marcos Unified School District, Prop K Series 2010A

0.01482
121.53
San Marcos Unified School District, Prop K Series 2010B

0.00361

29.60 San Marcos Unified School District, Prop K Series 2010C

0.00000

0.00 San Marcos Unified School District, Prop K Series 2017

0.01722
141.22
San Marcos Unified School District, Prop K Series 2020

0.01527
125.23

1.07231%
$ 8,793.72
Special Taxes, Assessments and Charges(4)
Fiscal Year
2023-24
Average Rates
Estimated
Fiscal Year
2024-25
Average Rates
Fiscal Year
2024-25
Average
Maximum Rates
Vector Disease Control(5)
$ 9.10
$ 9.10
$ 13.44
Mosquito Surveillance(6)

2.28 2.28

2.28 MWD Water Standby Charge(7)

11.50 11.50

11.50 CWA Water Availability(8)

10.00 10.00

10.00 San Marcos CFD 98-01
354.06
361.14
361.14
San Marcos CFD 98-02 Citywide
303.48
318.05
318.05
San Marcos CFD No. 98-02, IA F-9 (Active Tax)
153.60
160.97
160.97
San Marcos CFD No. 98-02, IA F-9 (Dormant Tax)(9)

0.00 0.00
905.94
San Marcos CFD No. 99-01, Improvement Area V1A(10)
2,581.39
2,301.09
3,729.83(11)
Subtotal Special taxes, Assessments and Charges
$ 3,425.41
$ 3,174.13
$ 5,513.15
Total Property Taxes
$ 11,967.85
$ 14,306.87
Total Effective Tax Rate

1.45936%

1.74459%
(1) Based on (i) Fiscal Year 2023-24 assessed values and ad valorem tax rates and (ii) estimated and maximum Fiscal Year 2024-25 special taxes, assessments and charges. (2) Net of exemptions.
(3) Fiscal Year 2023-24 tax rate multiplied by Fiscal Year 2023-24 average net assessed value. (4) Excludes property assessed clean energy debt.
(5) Vector disease control charge increases annually by the lesser of the change in the Consumer Price Index for the San Diego Region or 5.00. (6) Mosquito surveillance charge does not currently escalate. (7) Maximum MWD water availability charge is $11.50 per acre or parcel. (8) Maximum CWA water availability charge is currently greater of $10 per acre or parcel. (9) Levied only if homeowners’ association fails to maintain certain park, trail, median landscaping, open space and drainage facilities and provide certain brush management services. (10) Estimated Fiscal Year 2024-25 average special tax rate based on projected debt service for Improvement Area V1A Special Tax Refunding Bonds. (11) Reflects maximum Special Tax rates prescribed by the Improvement Area V1A’s Rate and Method. However, pursuant to Government Code Section 53321(d), the Special Tax for public facilities levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by owner of any other parcel within the Improvement Area by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults.

Source: 30 Three Sixty Public Finance, Inc., San Diego County Auditor-Controller, San Diego County Water Authority, San Diego County Vector Control District, and Metropolitan Water District.

Estimated Assessed Value-to-Lien Ratios
The following tables set forth the number of parcels within various ranges of estimated assessed valuetolien ratios for each Improvement Area based on the Fiscal Year 2023-24 assessed valuation and the total outstanding principal amount of the Special Tax Refunding Bonds relating to such Improvement Area. As summarized below, the estimated assessed value-to-lien ratio for all parcels within the Improvement Areas is approximately 31.88 to 1*, but the ratios over individual parcels vary widely. The value of the individual parcels is significant because, in the event of a delinquency in payment, the Community Facilities District’s only remedy is to foreclose on the delinquent parcel. A parcel with a lower value-to-lien ratio may be less likely to sell at foreclosure or provide sale proceeds adequate to pay all delinquent Special Tax installments.

TABLE 90

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREAS A1, A2, B1, B2, C1, D1, F2/V2, G3, H1A, H1B, J, M, N1, N2, R1, R2, AND V1A

SUMMARY OF ESTIMATED ASSESSED VALUETOLIEN BY RATIO
(FISCAL YEAR 2023-24)*
Estimated Assessed Value-toLien
Number of Parcels
Fiscal Year 2023-24 Special Tax
Percentage of Fiscal Year 2023-24 Special Tax
Fiscal Year 2023-24 Maximum Special Tax
Percentage of Fiscal Year 2023-24 Maximum Special Tax
Allocable Share of Special Tax Refunding Bonds(1)
Percentage of Total Special Tax Refunding Bonds
Allocable Share of Direct and Overlapping Debt(2)(3)
Fiscal Year
2023-24 Assessed Value
Estimated Assessed Value to Debt(4)
Greater than 40:1
320
$456,953

17.22%
$723,867

17.73%
$2,727,636

15.82%
$6,757,535
$327,367,302

48.44:1
30:1 to 39.99:1
556
908,313

34.22 1,468,117

35.96 5,685,828

32.98 13,480,848
462,265,418

34.29:1
20:1 to 29.99:1
575
1,088,201

41.00 1,607,781

39.38 7,258,007

42.10 15,751,613
399,597,466

25.37:1
10:1 to 19.99:1
70 190,856

7.19 268,841

6.59 1,499,654

8.70 2,653,362
46,218,877

17.42:1
5:1 to 9.99:1
4 8,731

0.33 12,093

0.30 62,290

0.36 122,677
775,611

6.32:1
Less than 5.1
1 1,266

0.05 1,814

0.04 6,584

0.04 19,542
84,056

4.30:1
Totals
1,526
$2,654,320
100.00%
$4,082,513
100.00%
$17,240,000
100.00%
$38,785,576
$1,236,308,730

31.88:1
* Preliminary, subject to change.
(1) Allocated based on the Fiscal Year 2023-24 Special Tax levy. (2) Includes overlapping debt from Metropolitan Water District, Palomar Community College District, San Marcos Unified School District, and Palomar Health. (3) The Allocable Share of Debt and Overlapping Debt were estimated by multiplying the Fiscal Year 2023-24 assessed value of subject parcels by the applicable Fiscal Year 2023-24 tax rate. Assessed valuation and tax rates provided by County of San Diego Auditor-Controller Property Tax Services. (4) Calculated by dividing the Fiscal Year 2023-24 Net Assessed Value column by the Allocable Share of Direct and Overlapping Debt column.

Source: 30 Three Sixty Public Finance, Inc.

TABLE 91

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREAS A1, A2, B1, B2, C1, D1, F2/V2, G3, H1A, H1B, J, M, N1, N2, R1, R2, AND V1A

ESTIMATED ASSESSED VALUETOLIEN SUMMARY
Fiscal Year 2022-23
Fiscal Year 2023-24
Area
Principal Amount of Special Tax Refunding Bonds*
Direct and Overlapping Debt
Net Assessed Value
Estimated Net Assessed Value to Direct and Overlapping Debt(1)* Net Assessed Value
Estimated Net Assessed Value to Direct and Overlapping Debt(1)* Improvement Area A1
$742,620
$1,911,352
$66,094,453

34.58:1
$69,422,157

36.32:1
Improvement Area A2
822,878
1,918,709
63,171,628

32.92:1
65,091,863

33.92:1
Improvement Area B1
782,843
2,003,939
68,893,740

34.38:1
72,532,577

36.20:1
Improvement Area B2
637,337
1,891,538
71,529,758

37.82:1
74,499,001

39.39:1
Improvement Area C1
1,321,854
2,735,891
79,662,068

29.12:1
83,993,174

30.70:1
Improvement Area D1
681,455
1,738,935
60,985,584

35.07:1
62,813,891

36.12:1
Improvement Area F2/V2
1,582,990
3,858,612
128,931,935

33.41:1
135,170,923

35.03:1
Improvement Area G3
496,486
1,236,124
41,654,495

33.70:1
43,934,142

35.54:1
Improvement Area H1A
542,816
1,338,902
44,290,944

33.08:1
47,287,173

35.32:1
Improvement Area H1B
526,950
1,219,695
39,053,813

32.02:1
41,148,740

33.74:1
Improvement Area J
2,302,782
3,560,914
70,813,975

19.89:1
74,732,490

20.99:1
Improvement Area M
1,587,703
3,784,298
121,688,430

32.16:1
130,476,765

34.48:1
Improvement Area N1
979,309
2,303,362
74,943,423

32.54:1
78,648,150

34.14:1
Improvement Area N2
957,379
2,158,391
67,451,200

31.25:1
71,339,584

33.05:1
Improvement Area R1
1,080,779
2,644,306
67,162,154

25.40:1
69,953,189

26.45:1
Improvement Area R2
846,628
2,249,833
59,421,768

26.41:1
62,780,261

27.90:1
Improvement Area V1A
1,347,189
2,230,776
49,808,940

22.33:1
52,484,650

23.53:1
Total
$17,240,000
$38,785,576
$1,175,558,308

30.31:1
$1,236,308,730

31.88:1
* Preliminary, subject to change.
(1) Calculated by dividing the Net Assessed Value column by the Direct and Overlapping Debt column.

Source: 30 Three Sixty Public Finance, Inc.

SPECIAL RISK FACTORS
There are certain risks associated with the purchase of the Bonds and the following information should be considered by prospective investors in evaluating the Bonds. However, the following does not purport to be an exhaustive listing of the risks and other considerations which may be relevant to an investment in the Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. If any risk factor materializes to a sufficient degree, it alone could delay or preclude payment of principal of or interest on the Bonds.

The Bonds are Limited Obligations of the Authority
Funds for the payment of the principal of and the interest on the Bonds are derived from debt service payments on the Special Tax Refunding Bonds, which are derived only from annual payments of Special Taxes. The amount of annual installments of Special Taxes that are collected could be insufficient to pay principal of and interest on the Special Tax Refunding Bonds due to non-payment of such Special Taxes levied or due to insufficient proceeds received from a judicial foreclosure sale of land within the Improvement Areas following delinquency. The City’s and Community Facilities District’s legal obligations with respect to any delinquent Special Taxes are limited to: (1) payments from the Reserve Fund to the extent of funds on deposit therein; and (2) the institution of judicial foreclosure proceedings under certain circumstances with respect to any parcels for which Special Taxes are delinquent. See the caption “SECURITY FOR THE BONDS—Covenant to Foreclose.” The Bonds cannot be accelerated in the event of any default.

The obligation to pay Special Taxes does not constitute a personal obligation of the current or subsequent owners of the respective parcels which are subject to such liens. Enforcement of Special Tax payment obligations by the Community Facilities District is limited to judicial foreclosure in the Superior Court of California, County of San Diego. There is no assurance that any current or subsequent owner of a parcel subject to a Special Tax lien will be able to pay the amounts due or that such owner will choose to pay such amounts even though financially able to do so. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
The number of parcels subject to the Special Taxes in each year in which the Bonds are outstanding, assuming no further prepayment of Special Taxes, is set forth in the below table.

TABLE 92
COMMUNITY FACILITIES DISTRICT NOS. 99-01
Number of Residential Parcels Per Improvement Area
CFD No. 99-01 Improvement Area
Total(3)
Levy Year
A1
A2
B1
B2
C1
D1
F2/V2(1)
G3
H1A
H1B
J
M
N1
N2
R1
R2
V1A
All Areas
2024
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2025
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2026
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2027
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2028
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2029
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2030
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2031
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2032
86 84
93 103
162
87 173
84 55
49 71
107
84 76
87 61
64 1,526
2033
84 93
162
87 173
49 71
76 87
61 64
1,007
2034
162
173
71 64
470
2035
173
71 64
308
2036
173
71 64
308
2037
173
71 64
308
2038
173
71 64
308
Source: 30 Three Sixty Public Finance, Inc.

The Special Tax Refunding Bonds are Limited Obligations The obligation of the Community Facilities District, as the issuer of the Special Tax Refunding Bonds, to advance the amount of delinquencies to the Trustee, as the registered holder of the Special Tax Refunding Bonds, is strictly limited to funds on deposit in the Reserve Fund established and held by the Trustee pursuant to the Indenture. The City has no liability for any payments due on the Special Tax Refunding Bonds issued by the Community Facilities District.

Failure by owners of the parcels to pay Special Tax installments when due, delay in foreclosure proceedings, or the inability of the City or the Community Facilities District to sell parcels which have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of Special Taxes levied against such parcels may result in the inability of the City or the Community Facilities District to make full or timely payments of debt service on the Bonds, which may in turn result in the depletion of the Reserve Fund and the inability of the Authority to make full or timely payment on the Bonds.

The Special Taxes collected in one Improvement Area cannot be used to pay debt service on the Special Tax Refunding Bonds of another Improvement Area, as applicable.

The Special Taxes are Not Personal Obligations of the Owners An owner of a taxable parcel is not personally obligated to pay the Special Tax. Rather, the Special Tax is an obligation which is secured only by a lien against the taxable parcel. If the value of a taxable parcel is not sufficient, taking into account other liens imposed by public agencies, to secure fully the Special Tax, the Community Facilities District has no recourse against the owner and their only remedy is to pursue judicial foreclosure on the delinquent parcel.

Potential Early Redemption of Bonds from Prepayments
Property owners within the Improvement Areas are permitted to prepay their Special Taxes at any time. Such prepayments will result in a redemption of Special Tax Refunding Bonds on the first March 1 or September 1 which is more than 30 days following the receipt of the prepayment. The proceeds of the Special Tax Refunding Bonds so redeemed will then be used to make a mandatory redemption of the Bonds. The Bonds will be called from the proceeds of the Special Tax Refunding Bonds redeemed from prepayments as set forth under the caption “THE BONDS—Redemption—Mandatory Redemption of the Bonds from Principal Prepayments of the Special Tax Refunding Bonds.” Risks of Real Estate Secured Investments Generally
The Bondowners will be subject to the risks generally incident to an investment secured by real estate, including, without limitation: (i) adverse changes in local market conditions, such as changes in the market value of real property in the vicinity of the Community Facilities District, the supply of or demand for competitive properties in such area and the market value of comparable residential property in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to threatened and endangered species and hazardous materials) and fiscal policies; and (iii) natural disasters (including, without limitation, earthquakes, tsunamis, fires, landslides and floods), which may result in uninsured losses.

Because assessed values do not necessarily indicate fair market values, the declines in fair market values in recent years may have been even greater than the declines in assessed valuations. No assurance can be given that the individual homeowners will pay Special Taxes in the future or that they will be able to pay such Special Taxes on a timely basis. See the caption “—Bankruptcy and Foreclosure Delays” for a discussion of certain limitations on the Community Facilities District’s ability to pursue judicial proceedings with respect to delinquent parcels.

Insufficiency of Special Taxes
Notwithstanding the fact that the maximum Special Taxes that may be levied in each Improvement Area exceed debt service due on the related series of Special Tax Refunding Bonds, the Special Taxes collected could be inadequate to make timely payment of debt service either because of nonpayment or because property becomes exempt from taxation as permitted in the Rates and Methods for each Improvement Area.

In the event of significant delinquencies in an Improvement Area, causing a default in payment of debt service on the related series of Special Tax Refunding Bonds and depletion of all amounts on deposit in the Reserve Fund, there would not be sufficient Special Tax Revenues to pay the full amount of annual debt service on the Bonds until the delinquent Special Taxes were collected through foreclosure action or otherwise. See the caption “—Bankruptcy and Foreclosure Delays” for a discussion of potential delays in foreclosure actions.

The CFD Act provides that, if any property within the Improvement Areas that is not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or devise, the Special Tax will continue to be levied on and enforceable against the public entity that acquired the property. In addition, the CFD Act provides that, if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the CFD Act have not been tested in the courts. In particular, insofar as the CFD Act requires payment of the Special Tax by a federal entity acquiring property in the Community Facilities District, it may be unconstitutional. See the caption “—FDIC/Federal Government Interests in Properties.” If for any reason property in a Community Facilities District becomes exempt from taxation by reason of ownership by a nontaxable entity such as the federal government or another public agency, subject to the limitation of the maximum authorized rates, the Special Tax will be reallocated to the remaining taxable properties in the Community Facilities District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon the timely payment of the Special Tax. Moreover, due to the problems of collecting taxes from public agencies, if a substantial portion of land within the Improvement Areas were to become owned by public agencies, collection of the Special Tax might become more difficult and could result in collections of the Special Tax which might not be sufficient to pay principal of and interest on the Bonds when due, and a default could occur with respect to the payment of such principal and interest.

Bankruptcy and Foreclosure Delays
Bankruptcy, insolvency and other laws generally affecting creditors’ rights could adversely impact the interests of owners of the Bonds in at least two ways. First, the payment of property owners’ taxes and the ability of the Community Facilities District to foreclose the lien of delinquent unpaid Special Taxes pursuant to its covenant to pursue judicial foreclosure proceedings set forth in the Special Tax Refunding Bonds Fiscal Agent Agreements (see the caption “SECURITY FOR THE BONDS—Covenant to Foreclose”) may be limited by bankruptcy, insolvency or other laws generally affecting creditors’ rights or by the laws of the State relating to judicial foreclosure. In addition, the prosecution of a foreclosure could be delayed for many reasons, including crowded local court calendars or lengthy procedural delays.

Second, the United States Bankruptcy Code might prevent moneys on deposit in the Special Tax Fund from being applied to pay interest on the Bonds and/or to redeem Bonds if bankruptcy proceedings were brought by or against a landowner and if the court found that any of such landowner had an interest in such moneys within the meaning of Section 541(a)(1) of the United States Bankruptcy Code.

Although a bankruptcy proceeding would not cause the lien of the Special Taxes to become extinguished, the amount and priority of any Special Tax lien could be modified if the value of the property falls below the value of the lien. If the value of the property is less than the lien, such excess amount could be treated as an unsecured claim by a bankruptcy court. In addition, the bankruptcy of a property owner could result in a stay of enforcement or other delay in procuring Superior Court foreclosure proceedings or adversely affect the ability or willingness of a property owner to pay the Special Taxes. If enough parcels were involved in bankruptcy proceedings, court delays would increase the likelihood of a delay or default in payment of the principal of, and interest on, the Bonds and the possibility of delinquent tax installments not being paid in full.

The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel’s approving legal opinion) will be qualified as to the enforceability of the various legal instruments, including the Bonds and the Special Tax Refunding Bonds, by moratorium, bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally, by the application of equitable principles and by the exercise of judicial discretion in appropriate cases.

Other laws generally affecting creditors’ rights or relating to judicial foreclosure may affect the ability to enforce payment of Special Taxes or the timing of enforcement of Special Taxes. For example, the Soldiers and Sailors Civil Relief Act of 1940 affords protections such as a stay in enforcement of the foreclosure covenant, a six-month period after termination of military service to redeem property sold to enforce the collection of a tax or assessment and a limitation on the interest rate on the delinquent tax or assessment to persons in military service if a court concludes that the ability to pay such taxes or assessments is materially affected by reason of such service.

FDIC/Federal Government Interests in Properties
General. The ability of the Community Facilities District to foreclose the lien of delinquent unpaid Special Tax installments may be limited with regard to properties in which the Federal Deposit Insurance Corporation (the “FDIC”), the Drug Enforcement Agency, the Internal Revenue Service, or other federal agencies such as the Federal National Mortgage Association (“FNMA”) or Freddie Mac, has or obtains an interest.

The supremacy clause of the United States Constitution reads as follows: “This Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the contrary notwithstanding.” The foregoing is generally interpreted to mean that, unless the United States Congress has otherwise provided, if a federal governmental entity owns a parcel that is subject to Special Taxes within the Improvement Areas but does not pay taxes and assessments levied on the parcel (including Special Taxes), the applicable State and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.

Moreover, unless the United States Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the Community Facilities District wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Taxes and preserve the federal government’s mortgage interest. In Rust v. Johnson 597 F.2d 174 (9th Cir. 1979), the United States Court of Appeal, Ninth Circuit (the “Ninth Circuit”), held that FNMA is a federal instrumentality for purposes of this doctrine, and not a private entity, and that, as a result, an exercise of state power over a mortgage interest held by FNMA constitutes an exercise of state power over property of the United States. For a discussion of risks associated with taxable parcels within the Improvement Areas becoming owned by the federal government, federal government entities or federal government sponsored entities, see the caption “—Insufficiency of Special Taxes.” The Community Facilities District has not undertaken to determine whether any federal governmental entity currently has, or is likely to acquire, any interest (including a mortgage interest) in any of the parcels subject to the Special Taxes within the Improvement Areas and therefore expresses no view concerning the likelihood that the risks described above will materialize while the Bonds are outstanding.

FDIC. In the event that any financial institution making any loan which is secured by real property within the Improvement Areas is taken over by the FDIC, and prior thereto or thereafter the loan or loans go into default, resulting in ownership of the property by the FDIC, then the ability of the Community Facilities District to collect interest and penalties specified by State law and to foreclose the lien of delinquent unpaid Special Taxes may be limited. The FDIC’s policy statement regarding the payment of state and local real property taxes (the “Policy Statement”) provides that property owned by the FDIC is subject to state and local real property taxes only if those taxes are assessed according to the property’s value, and that the FDIC is immune from real property taxes assessed on any basis other than property value. According to the Policy Statement, the FDIC will pay its property tax obligations when they become due and payable and will pay claims for delinquent property taxes as promptly as is consistent with sound business practice and the orderly administration of the institution’s affairs, unless abandonment of the FDIC’s interest in the property is appropriate. The FDIC will pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent that the interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including interest) on FDIC-owned property are secured by a valid lien (in effect before the property became owned by the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the FDIC is subject to levy, attachment, garnishment, foreclosure or sale without the FDIC’s consent. In addition, the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without the FDIC’s consent.

The Policy Statement states that the FDIC generally will not pay non-ad valorem taxes, including special assessments, on property in which it has a fee interest unless the amount of tax is fixed at the time that the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent that it purports to secure the payment of any such amounts. Special taxes imposed under the CFD Act and a special tax formula which determines the special tax due each year are specifically identified in the Policy Statement as being imposed each year and therefore covered by the FDIC’s federal immunity. The Ninth Circuit issued a ruling on August 28, 2001 in which it determined that the FDIC, as a federal agency, is exempt from CFD Act special taxes.

The Community Facilities District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency in the payment of Special Taxes on a parcel within any Improvement Area if the FDIC has or obtains an interest, although prohibiting the lien of the Special Taxes from being foreclosed at a judicial foreclosure sale could reduce or eliminate the number of persons willing to purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Fund and perhaps, ultimately, if enough property were to become owned by the FDIC, a default in payment on the Bonds.

Direct and Overlapping Debt
Neither the Authority, the City nor the Community Facilities District have control over the amount of additional debt payable from taxes or assessments levied on all or a portion of the property within the Improvement Areas which may be incurred in the future by other governmental agencies having jurisdiction over all or a portion of the property within the Improvement Areas. Other public agencies may issue additional indebtedness on property within the Improvement Areas at any time. Furthermore, nothing prevents the owners of property within the Improvement Areas from consenting to the issuance of additional debt by other governmental agencies which would be secured by taxes on a parity with the Special Taxes or assessments which would be subordinate to the Special Taxes. To the extent that such indebtedness is payable from assessments, other special taxes levied pursuant to the CFD Act or taxes, such assessments, special taxes and taxes will be secured by liens on the property within the Improvement Areas.

Accordingly, the debt on the property within the Improvement Areas could increase, without any corresponding increase in the value of the property therein. The imposition of such additional indebtedness could reduce the willingness and ability of the property owners within the Improvement Areas to pay the Special Taxes when due. See the caption “—Cumulative Burden of Parity Taxes and Special Assessments.” Moreover, in the event of a delinquency in the payment of Special Taxes, no assurance can be given that the proceeds of any foreclosure sale of property with delinquent Special Taxes would be sufficient to pay the delinquent Special Taxes. See the caption “—Property Values.” Disclosures to Future Purchasers
The willingness or ability of an owner of a parcel to pay the Special Tax even if the value of the parcel is sufficient may be affected by whether or not the owner was given due notice of the Special Tax authorization at the time the owner purchased the parcel, was informed of the amount of the Special Tax on the parcel should the Special Tax be levied at the maximum tax rate and the risk of such a levy, and, at the time of such a levy, has the ability to pay it as well as pay other expenses and obligations. The Community Facilities District has caused a notice of the Special Tax lien to be recorded in the Office of the Recorder of the County of San Diego against each parcel. While title companies normally refer to such notices in title reports, there can be no guarantee that such reference will be made or, if made, that a prospective purchaser or lender will consider such Special Tax obligation in the purchase of a property within the Improvement Areas or lending of money thereon.

The CFD Act requires the subdivider (or its agent or representative) of a subdivision to notify a prospective purchaser or long-term lessor of any lot, parcel, or unit subject to a Mello-Roos special tax of the existence and maximum amount of such special tax using a statutorily prescribed form. California Civil Code § 1102.6b requires that in the case of transfers other than those covered by the above requirement, the seller must at least make a good faith effort to notify the prospective purchaser of the special tax lien in a format prescribed by statute. Failure by an owner of the property to comply with the above requirements, or failure by a purchaser or lessor to consider or understand the nature and existence of the Special Tax, could adversely affect the willingness and ability of the purchaser or lessor to pay the Special Tax when due.

Natural Disasters
The Community Facilities District, like all California communities, may be subject to unpredictable seismic activity, fires due to the vegetation and topography, tsunamis, high winds, landslides or flooding in the event of unseasonable rainfall. The occurrence of seismic activity, fires, tsunamis, high winds, landslides or flooding in or around the Community Facilities District could result in substantial damage to properties in the Community Facilities District which, in turn, could substantially reduce the value of such properties. As a result of the occurrence of such an event, a substantial portion of the property owners may be unable or unwilling to pay the Special Tax installments when due, and the Reserve Fund may eventually become depleted. In addition, the value of land in the Improvement Areas could be diminished in the aftermath of such natural events, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Tax installments.

In recent years, wildfires have caused extensive damage throughout the State, including to a limited degree within the County. In some cases outside of the County, these fires have burned thousands of acres and destroyed hundreds and in some cases thousands of homes. Several fires which occurred in recent years damaged or destroyed property in areas that were not previously considered to be at risk from such events. Some commentators believe that climate change will lead to even more frequent and damaging wildfires in the future.

The City is periodically subject to large-scale wildfires and is expected to be subject to wildfires in the future. The Community Facilities District is located adjacent to open space on several sides and is located in a designated high fire hazard severity zone. Wildfires have burned hundreds of acres at a time and destroyed dozens of homes and structures in and around the Community Facilities District and the City generally. In 1996, the Harmony Grove Fire destroyed five structures in the City and damaged 22 others, and in 2014, the Cocos Fire destroyed five structures in the City and damaged 4 others. The homeowners association for homes in the Community Facilities District takes an active role in regular brush management in and around the Community Facilities District.

There is a risk of property within the Community Facilities District being destroyed by wildfires and no assurance can be given as to the severity or frequency of wildfires within the vicinity of the Community Facilities District. The area also experiences high winds known as Santa Ana winds which frequently accompany and magnify the intensity of wildfires.

Property Values
The value of the property within the Improvement Areas is an important factor in evaluating the investment quality of the Bonds. In the event that a property owner defaults in the payment of a Special Tax installment, the Community Facilities District’s only remedy is to judicially foreclose on that property. Prospective purchasers of the Bonds should not assume that the property within the Improvement Areas could be sold for the assessed values described herein at a foreclosure sale for delinquent Special Tax installments or for an amount adequate to pay delinquent Special Tax installments.

The assessed values set forth in this Official Statement do not represent market values arrived at through an appraisal process and generally reflect only the sales price of a parcel when acquired by its current owner, increased or decreased annually by an amount determined by the County Assessor based on current market conditions, generally not to exceed an increase of more than 2% per fiscal year from the date of purchase (except in the case of new construction subsequent to such acquisition). No assurance can be given that a parcel could actually be sold for its assessed value. The actual market value of the property is subject to future events such as downturn in the economy, occurrences of certain acts of nature and the decisions of various governmental agencies as to land use, all of which could adversely impact the value of the land in the Improvement Areas which is the security for the Special Tax Refunding Bonds, which secure the Bonds. As discussed herein, many factors could adversely affect property values within the Improvement Areas.

No assurance can be given that the estimated value-to-lien ratios as set forth herein will be maintained over time. As discussed herein, many factors which are beyond the control of the Community Facilities District could adversely affect the property values within the Improvement Areas. The Community Facilities District does not have any control over the amount of additional indebtedness that may be issued by other public agencies, the payment of which through the levy of a tax or an assessment is on a parity with the Special Taxes. A decrease in the assessed values in the Improvement Areas or an increase in the indebtedness secured by taxes and amounts with parity liens on property in the Improvement Areas, or both, could result in a lowering of the value-to-lien ratio of the property in the Improvement Areas.

Hazardous Substances
A claim with regard to a hazardous substance on a parcel of land subject to any of the Special Taxes can result in a significant potential reduction in the value of the parcel. In general, the owners and operators of a parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is well known, but State laws with regard to hazardous substances are also stringent and similar in effect. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of a parcel whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels within the Improvement Areas be affected by a hazardous substance, is to reduce the marketability and value by the costs of remedying the condition because the prospective purchaser of such a parcel will, upon becoming the owner of such parcel, become obligated to remedy the condition just as the seller of such a parcel is obligated to remedy the condition.

Hazardous substance liabilities may arise in the future with respect to any of the parcels within the Improvement Areas resulting from the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may arise from the method of handling such substance. These possibilities could significantly affect the value of a parcel and could result in substantial delays in completing planned development on parcels that are currently undeveloped.

Cumulative Burden of Parity Taxes and Special Assessments Property within the Improvement Areas is subject to taxes imposed by public agencies that also have jurisdiction over the land within the Improvement Areas. See the caption “THE COMMUNITY FACILITIES DISTRICT.” The Special Taxes constitute a lien against the parcels of land on which they have been levied. Such lien is on a parity with all special taxes or assessments levied by other agencies and is co-equal to and independent of the lien for general property taxes, regardless of when they are imposed upon the same property.

Neither the Authority, the City nor the Community Facilities District have control over the ability of other entities to issue indebtedness secured by ad valorem taxes, special taxes or assessments levied on all or a portion of the property within the Improvement Areas. In addition, the owners of the property within the Improvements Areas may, without the consent or knowledge of the Authority, the City or the Community Facilities District, petition other public agencies to issue public indebtedness secured by ad valorem taxes, special taxes or assessments. The property within the Improvement Areas is subject to a number of overlapping tax and assessment liens, some of which secure outstanding indebtedness. See the captions “THE COMMUNITY FACILITIES DISTRICT.” Cyber Security
The City, like other public and private entities, relies on a large and complex technology environment to conduct its operations, and consequently faces the threat of cybersecurity incidents. Such incidents can result from unintentional events, or from deliberate attacks by unauthorized entities or individuals attempting to gain access to the City’s information technology systems to misappropriate assets or information or to cause operational disruption and damage. The City and its departments face cyber threats from time to time, including but not limited to hacking, viruses, malware, phishing, distributed denial-of-service, and other attacks on computers, networks, and systems. The City has not experienced a major cyberattack that resulted in a material compromise of the system, data loss, or financial loss.

In fall 2019, the City suffered a cyber attack in which its network was penetrated, although no data was accessed. The City contracts with a third party vendor to monitor its network and has implemented best practices and recommendations to prevent cyber attacks in the future. Although the County carries cyber liability insurance, the cost of any such disruption or remedying damage caused by future attacks could be substantial. The City will continue to assess cyber threats and protect its data and systems.

The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation, the County and the Trustee. No assurance can be given that the City and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Owners of the Bonds.

Loss of Tax Exemption
As discussed under the caption “CONCLUDING INFORMATION—Tax Matters,” in order to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds, the Authority, the City and the Community Facilities District have covenanted in the Indenture and the Special Tax Refunding Bonds Fiscal Agent Agreements, respectively, not to take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest on the Bonds under Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”). Interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date that the Bonds were issued, as a result of acts or omissions of the Authority, the City or the Community Facilities District in violation of the Code. Should such an event of taxability occur, the Bonds are not subject to early redemption and will remain Outstanding to maturity or until redeemed under the mandatory redemption provisions of the Indenture.

California Constitution Article XIIIC and Article XIIID On November 5, 1996, the voters of the State approved Proposition 218, the so-called “Right to Vote on Taxes Act.” Proposition 218 added Articles XIIIC and XIIID to the State Constitution, which contain, among other things, a number of provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.

Among other things, Section 3 of Article XIIIC states that “… the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge.” The CFD Act provides for a procedure which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the CFD Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the CFD Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. On July 1, 1997, a bill was signed into law by the Governor of the State enacting Government Code Section 5854, which states that:
“Section 3 of Article XIIIC of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution.” Accordingly, although the matter is not free from doubt, it is likely that the initiative has not conferred on the voters the power to repeal or reduce Special Taxes if such reduction would interfere with the timely retirement of the Special Tax Refunding Bonds. The provisions of the initiative relating to the exercise of the initiative power have not been interpreted by the courts and no assurance can be given as to the outcome of any such litigation.

It may be possible, however, for voters or the City Council, acting as the legislative body of the Community Facilities District, to reduce the Special Taxes in a manner which does not interfere with the timely repayment of the Bonds, but which does reduce the maximum amount of Special Taxes that may be levied in any year below the existing levels. Furthermore, no assurance can be given with respect to the future levy of the Special Taxes in amounts greater than the amount necessary for the timely retirement of the Bonds. Therefore, no assurance can be given with respect to the levy of Special Taxes for Administrative Expenses. Nevertheless, to the maximum extent that the law permits it to do so, the Community Facilities District has covenanted that it will not initiate proceedings under the CFD Act to reduce the maximum Special Tax rates on parcels within the Improvement Areas, to less than an amount equal to 110% of maximum annual debt service on the respective Special Tax Refunding Bonds. The Community Facilities District has further covenanted that, in the event that an initiative is adopted which purports to alter the respective Rates and Methods, the Community Facilities District will commence and pursue legal action in order to preserve their ability to comply with the foregoing covenant. See the caption “SECURITY FOR THE BONDS—Levy and Collection of Special Taxes—General.” However, no assurance can be given as to the enforceability of the foregoing covenants.

The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at the current time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. See the caption “—Limitations on Remedies.” Litigation with Respect to Community Facilities Districts Shapiro. The California Court of Appeal, Fourth Appellate District, Division One, issued its opinion in City of San Diego v. Melvin Shapiro (2014) 228 Cal.App.4th 756 (the “San Diego Decision”). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego (“San Diego”). The CCFD is a financing district much like a community facilities district established under the provisions of the CFD Act. The CCFD is comprised of all of the real property in San Diego. However, the special tax to be levied within the CCFD was to be levied only on hotel properties located within the CCFD.

The election authorizing the special tax was limited to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel is located. Thus, the election was not a registered voter election. Such approach to determining who would constitute the qualified electors of the CCFD was modeled after Section 53326(c) of the CFD Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the special tax. The Court held that the CCFD special tax election was invalid under the California Constitution because Article XIIIA, Section 4 thereof and Article XIIIC, Section 2 thereof require that the electors in such an election be the registered voters within the district.

Horizon. The Sacramento County Superior Court issued a ruling in Horizon Capital Investments, LLC v. City of Sacramento et al. (Case No. 34-2017-80002661). As described below, this case involved an election to approve the levy of a special tax within a community facilities district (“CFD”) formed under the CFD Act.

In 2017, the City of Sacramento initiated proceedings to form a CFD to finance certain costs to operate and maintain a streetcar line. As permitted by the CFD Act, the proposed district included non-contiguous parcels of non-residential property. Because there were fewer than 12 registered voters residing within the territory of the proposed CFD, the City Council submitted the special tax proposed to be levied within the proposed CFD to the owners of land within the proposed CFD, as required by the CFD Act. The proposed special tax received the requisite two-thirds vote in the landowner election.

Petitioners Horizon Capital Investments, LLC et al. filed a writ of mandate and complaint for reverse validation and declaratory relief. Petitioners argued, and the superior court agreed in its final ruling, that under section 4(a) of article XIII A of the California Constitution (which provides that “Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such district [sic], may impose special taxes on such district…”) the phrase “qualified electors” means the registered voters of the entire City of Sacramento and not just the owners of the property within the boundaries of the proposed CFD. Citing the San Diego Decision, the tentative ruling states that the phrase “qualified electors of the district” refers to the registered voters of the entity imposing the special tax, which in this case was the City of Sacramento. Because the vote within the proposed CFD was by landowners only and not by all registered voters in the City of Sacramento, the final ruling states that the special tax is invalid.

The superior court’s final ruling is not binding upon other courts within the State and does not directly apply to the District, the Special Taxes, or the Bonds. The City of Sacramento did not appeal the superior court’s ruling.

The Special Tax Elections in the Community Facilities District and the Improvement Areas. With respect to the San Diego Decision, the facts of such case show that there were thousands of registered voters within the CCFD (viz., all of the registered voters in San Diego). The elections held in the Community Facilities District and the Improvement Areas had less than 12 registered voters at the time of the election to authorize the Special Taxes. In the San Diego Decision, the court expressly stated that it was not addressing the validity of landowner voting to impose special taxes pursuant to the CFD Act in situations where there are fewer than 12 registered voters. Thus, by its terms, the court’s holding in the San Diego Decision does not apply to the Special Tax election in the Improvement Areas. Moreover, Section 53341 of the CFD Act provides that any “action or proceeding to attack, review, set aside, void or annul the levy of a special tax…shall be commenced within 30 days after the special tax is approved by the voters.” Similarly, Section 53359 of the Act provides that any action to determine the validity of bonds issued pursuant to the Act be brought within 30 days of the voters approving the issuance of such bonds. The petitioners in Horizon filed the writ of mandate within 30 days of the landowner election. Voters in the Improvement Areas approved their respective taxes over two decades ago. Based on Sections 53341 and 53359 of the Act and analysis of existing laws, regulations, rulings and court decisions, the Community Facilities District believes that no successful challenge to the Special Taxes being levied in accordance with the Rate and Methods may now be brought.

No Acceleration
Under the Indenture and the Special Tax Refunding Bonds Fiscal Agent Agreements, neither the Bonds nor the Special Tax Refunding Bonds, respectively, are subject to acceleration in the event of payment default or in the event that interest on the Bonds becomes included in gross income for federal income tax purposes. Similarly, there is no provision in the CFD Act, the Indenture or the Special Tax Refunding Bonds Fiscal Agent Agreements for the acceleration of the Special Taxes in the event of a payment default by an owner of a parcel within an Improvement Area or otherwise, or upon any adverse change in the tax status of interest on the Bonds.

Limited Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Although the Community Facilities District has committed to provide certain financial and operating information on an annual basis, there can be no assurance that such information will be available to Bondowners on a timely basis. See the caption “CONCLUDING INFORMATION—Continuing Disclosure.” The failure to provide the required annual financial information does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information, or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price.

Limitations on Remedies
Remedies available to the Owners may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest and premium, if any, on the Bonds or to preserve the taxexempt status of interest on the Bonds.

Bond Counsel has limited its opinion as to the enforceability of the Bonds, the Indenture and the Special Tax Refunding Bonds Fiscal Agent Agreements to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion. Additionally, the Bonds are not subject to acceleration in the event of the breach of any covenant or duty under the Indenture. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay in the exercise of, or limitations on or modifications to, the rights of the Owners.

Enforceability of the rights and remedies of the Owners of the Bonds, and the obligations incurred by the Community Facilities District, may become subject to the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against governmental entities in the State. See the captions “—Bankruptcy and Foreclosure Delays,” and “—FDIC/Federal Government Interests in Properties.” Risks Associated with Bond Insurance
In the event that the Authority defaults in the payment of principal of or interest on the Insured Bonds when due, the Owners of the Insured Bonds will have a claim under the Policy for such payments. See the caption “BOND INSURANCE.” In the event that the Insurer becomes obligated to make payments on the Insured Bonds, no assurance can be given that such event will not adversely affect the market for the Insured Bonds. In the event that the Insurer is unable to make payments of principal of or interest on the Insured Bonds when due under the Policy, the Insured Bonds will be payable solely from Revenues and amounts that are held in certain funds and accounts established under the Indenture, as described under the caption “SECURITY FOR THE BONDS.” The long-term credit rating on the Insured Bonds is dependent in part on the financial strength of the Insurer and its claims-paying ability. The Insurer’s financial strength and claims-paying ability are predicated upon a number of factors which could change over time. If the long-term ratings of the Insurer are lowered, such event could adversely affect the market for the Insured Bonds. See the caption “CONCLUDING INFORMATION—Rating.” None of the Authority, the City, the Community Facilities District or the Underwriter has made an independent investigation of the claimspaying ability of the Insurer, and no assurance or representation regarding the financial strength or projected financial strength of the Insurer is being made by the Authority, the City, the Community Facilities District or the Underwriter in this Official Statement. Therefore, when making an investment decision with respect to the Insured Bonds, potential investors should carefully consider the ability of the Authority to pay principal and interest on the Bonds, assuming that the Policy is not available to pay principal and interest on the Insured Bonds, and the claims-paying ability of the Insurer through final maturity of the Insured Bonds.

So long as the Policy remains in effect and the Insurer is not in default of its obligations thereunder, the Insurer has certain notice, consent and other rights under the Indenture and will have the right to control all remedies in the event of a default under the Indenture as to the Insured Bonds. The Insurer is not required to obtain the consent of the Owners of the Insured Bonds with respect to the exercise of remedies. See Appendix B

CONCLUDING INFORMATION
Underwriting
The Bonds are being purchased by Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) pursuant to a Bond Purchase Agreement, dated _________ , 2024 (the “Purchase Agreement”), by and among the Underwriter, the Authority and the Community Facilities District. The Underwriter has agreed to purchase the Bonds at a price of $_________ (being the aggregate principal amount thereof, [plus/less] a net original issue [premium/discount] of $_________ and less an Underwriter’s discount of $_________). The Purchase Agreement provides that the Underwriter will purchase all of the Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions.

The initial public offering prices stated on the inside front cover of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices.

The Underwriter and its affiliates are full service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, principal investment, hedging, financing and brokerage services. The Underwriter and its affiliates have, from time to time, performed, and may in the future perform, various financial advisory and investment banking services for the City, the Authority or the Community Facilities District, for which they received or will receive customary fees and expenses.

In the ordinary course of their various business activities, the Underwriter and its affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities, which may include credit default swaps) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve securities and instruments of the City, the Authority or the Community Facilities District.

The Underwriter and its affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments.

Municipal Advisor
Fieldman, Rolapp & Associates, Inc. has acted as Municipal Advisor (the “Municipal Advisor”) to the City in conjunction with the issuance of the Bonds. The Municipal Advisor has assisted in matters related to the planning, structuring, execution, and delivery of the Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Bonds. The Municipal Advisor has not audited, authenticated, or otherwise independently verified the information set forth in this Official Statement, or any other related information available, with respect to accuracy and completeness of disclosure of such information. Because of this limited participation, the Municipal Advisor makes no guaranty, warranty, or other representation with respect to the accuracy or completeness of this Official Statement, or any other matter related to this Official Statement.

Legal Opinion; Legal Matters
The legality of the Bonds and certain other legal matters are subject to the approval of Best Best & Krieger LLP, Bond Counsel. Bond Counsel will render an opinion with respect to the validity and enforceability of the Bonds and the Indenture, and a copy of the opinion will accompany each Bond. Such opinion will be subject to the various assumptions, exceptions and limitations stated therein. Bond Counsel also will render an opinion with respect to the validity and enforceability of the Special Tax Refunding Bonds. See Appendix C. Certain legal matters will be passed upon for the Authority and the City by the City Attorney, for the City by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Disclosure Counsel, for the Underwriter by Anzel Galvan LLP, San Francisco, California, for [BOND INSURER] by its counsel and for the Trustee by its counsel. Payment of the fees and expenses of Bond Counsel, Disclosure Counsel and the Trustee is contingent upon the sale and delivery of the Bonds. Bond Counsel and Disclosure Counsel have from time to time represented the Underwriter in connection with various matters unrelated to the Bonds or the Special Tax Refunding Bonds.

Tax Matters
In the opinion of Best Best & Krieger LLP, Riverside, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, interest on the Bonds is excluded from gross income for federal income tax purposes. In the further opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income tax. Interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, for tax years beginning after December 31, 2022, interest on the Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. Bond Counsel notes that interest on the Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals.

Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of interest on the Bonds is based upon certain representations of fact and certifications made by the Community Facilities District and others and is subject to the condition that the Community Facilities District complies with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”) that must be satisfied subsequent to the issuance of the Bonds to assure that interest on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Community Facilities District has covenanted to comply with all such requirements.

Should the interest on the Bonds become includable in gross income for federal income tax purposes, the Bonds are not subject to early redemption as a result of such occurrence and will remain outstanding until maturity or until otherwise redeemed in accordance with the Indenture.

Current and future legislative proposals, if enacted into law, clarification of the Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Bond Owners from realizing the full current benefit of the tax status of such interest. Legislative proposals are announced from time to time which generally would limit the exclusion from gross income of interest on obligations like the Bonds to some extent for taxpayers who are individuals and whose income is subject to higher marginal income tax rates. Other proposals have been made that could significantly reduce the benefit of, or otherwise affect, the exclusion from gross income of interest on obligations like the Bonds. The introduction or enactment of any such legislative proposals, clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, and regarding the impact of future legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

Bond Counsel’s opinion may be affected by action taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds. Bond Counsel has not undertaken to determine, or to inform any person, whether any such action or events are taken or do occur, or whether such actions or events may adversely affect the value or tax treatment of a Bond, and Bond Counsel expresses no opinion with respect thereto.

The Internal Revenue Service (the “IRS”) has initiated an expanded program for auditing tax-exempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit (or by an audit of similar bonds).

Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross income for federal income tax purposes provided the Community Facilities District and the Authority continue to comply with certain requirements of the Code, the accrual or receipt of interest on the Bonds may otherwise affect the tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient’s particular tax status and other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. Accordingly, all potential purchasers should consult their tax advisors before purchasing any of the Bonds.

No Litigation
There is no action, suit or proceeding pending or, to the best knowledge of the City, the Community Facilities District and the Authority, threatened at the present time restraining or enjoining the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any proceedings of the City, the Community Facilities District or the Authority taken with respect to the execution or delivery thereof. A no litigation opinion rendered by the City Attorney will be required to be delivered to the Underwriter simultaneously with the delivery of the Bonds.

Rating
S&P has assigned a rating of “__” to the Uninsured Bonds. S&P has assigned the Insured Bonds the rating of “___” based upon the delivery of the Policy by [BOND INSURER] at the time of issuance of the Insured Bonds and the underlying rating of “___” without respect to the delivery of the Policy. There is no assurance that any credit rating given to the Bonds will be maintained for any period of time or that the ratings may not be lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant. Any downward revision or withdrawal of such ratings may have an adverse effect on the market price of the Bonds. Such ratings reflect only the views of S&P and an explanation of the significance of such ratings may be obtained from S&P.

Continuing Disclosure
The Community Facilities District, for itself and as agent for the Authority, have covenanted for the benefit of holders and beneficial owners of the Bonds: (1) to provide certain financial information and operating data (the “Annual Report”) relating to the Community Facilities District and the property in the Improvement Areas not later than nine months after the end of the Community Facilities District’s and the Authority’s Fiscal Year (currently June 30), commencing with the report for Fiscal Year 2023-24; and (2) to provide notices of the occurrence of certain enumerated events. The Annual Report will be filed by the Community Facilities District or a dissemination agent appointed by the Community Facilities District with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/ (“EMMA”). The notices of enumerated events will be timely filed by the Community Facilities District or a dissemination agent appointed by the Community Facilities District with EMMA. The specific nature of the information to be contained in the Annual Report or the notices of enumerated events is set forth in the Continuing Disclosure Agreement. See Appendix D. These covenants have been made in order to assist the Underwriter in complying with Rule 15c212(b)(5) of the Securities and Exchange Commission (the “Rule”).

It should be noted that the Community Facilities District is required to file certain financial statements with the Annual Report. This requirement has been included in the Continuing Disclosure Agreement solely to satisfy the provisions of the Rule. The inclusion of this information does not mean that the Bonds are secured by any resources or property of the Community Facilities District, the Authority or the City other than as described in this Official Statement. See the captions “SPECIAL RISK FACTORS—The Bonds are Limited Obligations of the Authority” and “SPECIAL RISK FACTORS—The Special Tax Refunding Bonds are Limited Obligations.” [CONTINUING DISCLOSURE COMPLIANCE TO COME]
The full text of the Continuing Disclosure Agreement is set forth in Appendix D.

Miscellaneous
All of the preceding summaries of the Indenture, the Special Tax Refunding Bonds Fiscal Agent Agreements, applicable legislation, agreements and other documents are made subject to the provisions of such documents and legislation and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the City for further information in connection therewith.

This Official Statement does not constitute a contract with the purchasers of the Bonds.

Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized.

The execution and delivery of this Official Statement have been authorized by the members of the Board of Directors of the Authority and by the members of the City Council, as the legislative body of the Community Facilities District.

SAN MARCOS PUBLIC FINANCING AUTHORITY
By:

Executive Director
City of San Marcos Community Facilities District No. 99-01 By:

City Manager
APPENDIX A

INFORMATION REGARDING THE CITY OF SAN MARCOS
The following information relating to the City of San Marcos and the County of San Diego, California is supplied solely for purposes of information. Neither the City nor the County is obligated in any manner to pay principal of or interest on the Bonds or to cure any delinquency or default on the Bonds. The Bonds are payable solely from the sources described in the Official Statement.

The City of San Marcos, California (the “City”) is located approximately 24 miles north of downtown San Diego and 90 miles south of Los Angeles, in the northern coastal/inland region of San Diego County (the “County”). The Cerros Las Posas, Merriam and San Marcos foothills and a series of valleys are the chief topographic features. The City is accessible to San Diego, Orange, Imperial, San Bernardino, Riverside and Los Angeles Counties. The City is situated along the State Highway 78 Freeway corridor and is bordered by Escondido to the east, Vista to the north and west, Carlsbad to the south and west, and unincorporated areas of the County to the north and south.

Municipal Government
The City is a charter city, incorporated in 1963 and chartered on July 4, 1994. The City operates under a council/manager form of government. The City Council is comprised of five council members, elected at large on a staggered basis for a term of four years. The Mayor is directly elected for a four-year term. The City Council appoints the City Manager and the City Attorney. Public services are typically through independent, special services districts and by contractual agreements with the County.

Assessed Valuations
For assessment and collection purposes, property is classified either as “secured” or unsecured,” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing Stateassessed property and property the taxes on which are a lien on real property sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the “unsecured roll.” Shown below is a summary of assessed valuations in the City for Fiscal Years 2019 through 2023.

CITY OF SAN MARCOS

ASSESSED VALUATIONS
Fiscal Years 2019 through 2023
Fiscal Year
Ended June 30
Local Secured
Unsecured
Less Exemptions
Total
2019
$12,991,489,372
$370,104,590
$(503,189,791)
$12,742,402,229
2020
13,815,539,662
379,261,628
(548,057,005)
13,615,649,280
2021
14,506,330,312
384,186,012
(559,042,771)
14,235,534,377
2022
15,119,698,651
313,927,047
(570,825,511)
14,679,684,927
2023
16,204,222,773
399,106,990
(595,248,906)
15,760,566,567
Source: City of San Marcos Finance Department.

Revenues and Expenditures

CITY OF SAN MARCOS
GENERAL GOVERNMENTAL REVENUES BY SOURCE(1)
Fiscal Years 2019 through 2023
Fiscal Year Ended June 30
Category
2019
2020
2021
2022
2023
Taxes/Special Assessments
$ 37,396,482
$ 35,074,453
$ 35,336,432
$ 38,014,722
$ 40,963,794
Licenses & Permits
4,829,046
4,982,848
5,758,317
6,229,489
6,577,183
Intergovernmental
22,558,222
30,208,872
50,774,854
50,768,628
54,411,026
Service Charges
16,112,574
15,608,463
17,466,496
20,530,129
19,271,585
Developer Fees
5,217,642
7,775,654
7,826,185
12,959,166
13,654,904
Fines & Forfeits
498,336
389,034
257,569
68,465
1,241,181
Use of Money & Property
11,496,722
19,363,307
8,782,267
15,259,941
12,021,546
Miscellaneous
1,873,724
1,556,989
1,163,325
1,617,335
3,286,479
TOTALS
$ 99,982,748
$ 114,959,620
$ 127,365,445
$ 145,447,875
$ 151,427,698
(1) Includes General, Special Revenue, Debt Service and Capital Projects funds.

Source: City of San Marcos Finance Department.

CITY OF SAN MARCOS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION(1)
Fiscal Years 2019 through 2023
Fiscal Year Ended June 30
Category
2019
2020
2021
2022
2023
General Government
$ 21,862,137
$ 24,474,209
$ 22,215,742
$ 31,048,583
$ 33,833,175
Community Development
4,795,779
9,921,546
13,323,540
12,240,828
12,840,820
Public Safety
37,782,655
39,103,687
42,204,560
42,816,495
43,091,788
Highways & Streets
18,575,680
18,682,862
18,038,640
17,536,047
25,010,953
Culture & Recreation
3,759,978
3,416,437
3,248,975
4,084,656
4,472,130
Tax Increment Distribution to Other Governmental Agencies -
-
-
-
-
SERAF Payment
-
-
-
-
-
Capital Outlay
19,258,698
16,762,011
31,070,090
24,629,033
45,066,432
Debt Service
1,015,343
1,127,449
1,337,180
1,186,937
1,133,516
TOTALS
$ 107,050,270
$ 113,488,201
$ 131,438,727
$ 133,542,579
$ 165,448,814
(1) Includes General, Special Revenue, Debt Service and Capital Projects funds.

Source: City of San Marcos Finance Department.

Tax Levies, Collections and Delinquencies
Set forth below is a summary of the secured property tax levies, collection delinquencies, and total collections for Fiscal Years 2019 through 2023.

CITY OF SAN MARCOS

PROPERTY TAX LEVIES AND COLLECTIONS
Fiscal Years 2019 through 2023
Collected within the Fiscal Year of the Levy
Total Collections to Date
Fiscal Year Ended June 30
Taxes Levied for the Fiscal Year(1)
Amount
Percentage of Levy
Delinquent Collections(2)
Amount
Percentage
2019
$8,110,254
$7,879,445

97.15%
$87,121
$7,966,566

98.23%
2020
8,257,634
7,990,099

96.76 118,209
8,108,308

98.18 2021
8,671,538
8,522,190

98.28 102,059
8,624,249

99.45 2022
9,291,999
8,889,705

95.67 88,509
8,978,214

96.62 2023
9,925,652
9,530,480

96.02 N/A
9,530,480

96.02 (1) The amounts presented include City and Fire District property taxes. (2) Includes prior years’ delinquent collections, escapes, penalties and interest.

Source: City of San Marcos Finance Department.

Population
The City had an estimated 94,530 as of January 1, 2023. The following is a tabulation of population data for the City.

CITY OF SAN MARCOS

POPULATION DATA
Calendar Year
Population
2019
96,865
2020
97,281
2021
93,236
2022
93,829
2023
94,530
Source: 1970 figure is from the U.S. Bureau of the Census. All other figures have been estimated by the Demographic Research Unit, California State Department of Finance as of January 1 of each year listed.

Employment and Industry
The City’s total labor force, the number of persons who work or are available for work, averaged 43,300 in calendar year 2023. The number of employed workers in the labor force averaged 41,600.

The following table sets forth information regarding the size of the labor force, employment and unemployment rates for the City for calendar years 2019 through 2023.

CITY OF SAN MARCOS

LABOR FORCE, EMPLOYMENT AND UNEMPLOYMENT
Calendar Years 2019 through 2023
Calendar Year
Labor Force
Employed
Unemployed
Unemployment Rate
2019
42,400
41,100
1,300

3.1%
2020
41,500
38,000
3,500

8.4 2021
41,500
39,200
2,300

5.6 2022
42,700
41,300
1,400

3.3 2023
43,300
41,600
1,700

3.8 Source:  U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics Information and Analysis and State of California Employment Development Department.

Regional Employment
Employment data by industry is not separately reported on an annual basis for the City but is compiled for the San Diego-Carlsbad-San Marcos Metropolitan Statistical Area (the “MSA”), which includes all of the County. The following table represents the Annual Average Labor Force and Industry Employment for the MSA for the period from calendar years 2019 through 2023.

SAN DIEGO-CARLSBAD-SAN MARCOS

METROPOLITAN STATISTICAL AREA

ANNUAL AVERAGE EMPLOYMENT BY INDUSTRY
Calendar Years 2019 through 2023
Calendar Years Ended December 31
2019
2020
2021
2022
2023
Total, All Industries
1,512,800
1,395,000
1,451,000
1,540,800
1,561,000
Total Farm
9,700
9,200
9,000
9,600
9,500
Mining and Logging
400
300
300
400
300
Construction
84,000
81,300
83,800
87,600
89,800
Manufacturing
115,700
113,800
114,400
116,900
115,100
Trade, Transportation and Utilities
224,000
207,800
216,800
222,400
223,100
Information
23,500
22,100
21,500
22,100
21,900
Financial Activities
76,500
74,800
76,200
76,900
72,700
Professional and Business Services
255,800
248,300
265,300
282,500
276,000
Educational and Health Services
216,600
210,900
216,700
228,300
243,200
Leisure and Hospitality
201,700
144,800
161,600
193,100
201,600
Other Services
56,400
44,800
47,500
54,400
57,100
Government
248,600
237,100
237,900
246,600
251,300
Source: State of California Employment Development Department. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
The following table sets forth the principal employers in the City for the Fiscal Year ending June 30, 2023.

CITY OF SAN MARCOS

PRINCIPAL EMPLOYERS
Fiscal Year 2023
Employer
Products/Services
Number of Employees
San Marcos Unified School District
Education
3,519
California State University San Marcos
Education
1,995
Palomar Community College
Education
2,014
Hunter Industries, Inc.

Manufacturing – Plastic Products
766
United Parcel Service
Services – Delivery
551
Southern California Permanente Medical Group
Services – Health Care
454
Costco Wholesale
Retail – Variety Store
370
Lusardi Construction Co.

Contractor – Construction
250
North County Health Project
250
Hughes Circuits Inc.

Manufacturing – Electronics
238
Hollandia Dairy Inc.

Dairy
230
Fluid Components International
Manufacturing – Miscellaneous
217
Wal-Mart Stores, Inc.

Retail – Department Store
216
Manpower of San Diego
210
Home Depot #6656
Retail – Building Supplies
193
Diamond Environmental Services LP
Services – Waste Facility
175
Oncore Manufacturing Services
Manufacturing - Miscellaneous
160
Southern Contracting
Contractor – Electrical
150
Falmat Inc.

Retail – Wire Products
143
Winco Foods
Grocery – Supermarket
136
Total(1)
12,247
(1) Total Employment as used above represents the total employment of all employers located within the City of San Marcos limits.

Source: City of San Marcos.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Commerce
The following shows the taxable transactions of the City for calendar years 2019 through 2023, as provided by the California State Board of Equalization.

CITY OF SAN MARCOS

TAXABLE TRANSACTIONS
(In Thousands)
Calendar Years 2019 through 2023
2019
2020
2021
2022
2023
Retail Stores:

Apparel stores
$ 55,549
$ 37,569
$ 57,927
$ 59,265
$ 57,685
General merchandise stores
231,744
210,581
247,290
295,930
293,356
Food stores
70,177
77,505
77,174
82,091
89,788
Eating and drinking places
194,587
151,711
198,287
234,585
246,643
Home furnishings and appliances
142,588
120,879
148,279
154,825
131,905
Building materials and farm implements
160,367
179,617
211,740
231,872
223,977
Auto dealers and auto supplies
115,124
113,374
13,198
110,195
110,164
Service stations
101,368
68,761
106,422
119,443
107,707
Other retail stores
106,092
98,668
117,927
123,710
120,841
Retail Stores Totals
1,177,596
1,058,664
1,298,244
1,411,918
1,382,068
All Other Outlets
348,305
301,873
366,942
403,435
396,009
Totals All Outlets
$ 1,525,901
$ 1,360,537
$ 1,665,186
$ 1,815,353
$1,778,007
Source: California State Board of Equalization.

Construction
A summary of the value of the building permits issued in the City during Fiscal Years 2018 through 2022 is shown in the following table:

CITY OF SAN MARCOS
Building Construction Valuations
Fiscal Years 2018 through 2022
Fiscal Year
Residential(1)
Commercial
Other
Total
2018
$ 104,676,481
$ 46,290,512
$6,697,912
$ 157,664,905
2019
40,366,851
67,486,691
8,462,534
116,316,076
2020
42,219,739
5,856,718
6,202,734
54,479,191
2021
24,280,662
58,099,961
8,560,669
90,941,292
2022
154,929,115
29,074,982
4481,897
188,485,994
(1) Does not include mobile homes.

Source: City of San Marcos Building Department.

Transportation
Primary access to the City is provided by State Route 78, which is a major transportation corridor that extends in a general east-west direction from Escondido (Interstate 15) to Oceanside (Interstate 5). State Route 78 is one of the few major transportation corridors linking the coastal areas of the County to inland North County. The City can be accessed at various off-ramps from the highway, including Nordahl Road, Twin Oaks Valley Road, San Marcos Boulevard, Las Posas Road, Rancho Santa Fe Road, and Woodland Parkway. This network of roads provides access to the various neighborhoods and districts dispersed throughout the community.

Interstate 5, along the coast (via State Highway 78), and Interstate 15, inland, provide full freeway access to the City from Los Angeles to the north and San Diego to the south.

Daily bus connections serve the City, passenger rail service on Southern Pacific Railway is 30 minutes to the west in Oceanside and San Diego’s Lindbergh International Airport is 35 minutes to the south of the City. The City is connected by the Sprinter light rail service to Amtrak and Metrolink train service in Oceanside, as well as the Escondido Transit Center to the east.

The North County Area is served by the AT&SF Railroad, a part of the transcontinental line linked with major rail networks. A number of industrial parcels throughout the City and the North County region are served by rail.

The smaller McClellan-Palomar Airport in Carlsbad is within minutes of North County cities and is popular among executives who have based nearly 100 corporate aircraft at full-service facilities. Commercial service is offered to San Diego, Los Angeles, Orange County and other southern California and Arizona locations. Air cargo service also may expand as industry expands in North County.

Access to the San Diego Harbor and the Port of San Diego from the City is convenient via rail and freeway connections.

Utilities and Other Local Services
The City provides a wide range of services to its residents, including basic local services such as planning, public works, community services, recreation and parks and fire protection. Police services are provided by the County Sheriff’s Department by contract. Vallecitos Water District provides domestic water service and sanitary sewer services, as well as water sewage treatment. Natural gas and electric power currently are supplied only by San Diego Gas & Electric Company. Telephone service is provided by multiple providers.

APPENDIX B

SUMMARY OF CERTAIN PROVISIONS OF BOND DOCUMENTS
The following is a summary of selected provisions of the Indenture and the Fiscal Agent Agreements. The provisions of each Fiscal Agent Agreement are substantially equivalent, except where specified otherwise in this summary. This summary does not purport to be complete or definitive and is qualified in its entirety by reference to the full terms of the documents summarized herein. Purchasers of the Bonds are referred to the complete text of each respective document, copies of which are available upon request from the Trustee.

APPENDIX C

FORM OF BOND COUNSEL OPINION
Upon issuance of the Bonds, Best Best & Krieger LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:

APPENDIX D

FORM OF CONTINUING DISCLOSURE AGREEMENT
Upon issuance of the Bonds, the Community Facilities District proposes to enter into a Continuing Disclosure Agreement in substantially the following form:

This Continuing Disclosure Agreement, dated as of _________ 1, 2024 (the “Disclosure Agreement”), is entered into by and among the City of San Marcos Community Facilities District 9901 (the “District”), for itself and as agent for the San Marcos Public Financing Authority (the “Issuer”), and U.S. Bank Trust Company, National Association, as dissemination agent (the “Dissemination Agent”), in connection with the issuance by the Issuer of its $________________ San Marcos Public Financing Authority Special Tax Revenue Refunding Bonds, Series 2024A (collectively, the “Bonds”). The Bonds are being issued pursuant to an Indenture of Trust, dated as of _________ 1, 2024 (the “Indenture”), by and between the Issuer and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The District and the Dissemination Agent hereby covenant and agree as follows:

Section 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being executed and delivered by the District, acting as the agent of the Issuer, for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.

Section 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

Annual Report. The term “Annual Report” means any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Agreement.

Beneficial Owner. The term “Beneficial Owner” means any person which: (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries); or (b) is treated as the owner of any Bonds for federal income tax purposes.

Disclosure Representative. The term “Disclosure Representative” means the City Manager or the Finance Director of the City of San Marcos, or their designee, or such other officer or employee as the District shall designate in writing to the Dissemination Agent from time to time.

Dissemination Agent. “Dissemination Agent” means, initially, U.S. Bank Trust Company, National Association, or any successor Dissemination Agent designated in writing by the District which has filed with the thencurrent Dissemination Agent a written acceptance of such designation.

EMMA. The term “EMMA” means the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/.

Financial Obligation. The term “Financial Obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule.

Fiscal Year. The term “Fiscal Year” means the one-year period ending on the last day of June of each year.

Listed Events. The term “Listed Events” means any of the events listed in Sections 5(a) or (b) of this Disclosure Agreement.

Official Statement. The term “Official Statement” means the final Official Statement, dated _________ , 2024, relating to the Bonds.

Participating Underwriter. The term “Participating Underwriter” means the original underwriter of the Bonds required to comply with the Rule in connection with the offering of the Bonds.

Rule. The term “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

Section 3. Provision of Annual Reports.
(a) The District shall, or shall cause the Dissemination Agent by written direction to such Dissemination Agent to, not later than nine months after the end of the District’s and the Issuer’s Fiscal Year, provide to EMMA an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Agreement; provided, however, that the audited financial statements of the District and the Issuer, if any are prepared, may be submitted separately from and later than the balance of the Annual Report if they are not available by the date required above for the filing of the Annual Report.

An Annual Report shall be provided at least annually notwithstanding any Fiscal Year longer than 12 calendar months. The District’s and the Issuer’s Fiscal Year is currently effective from July 1 to the immediately succeeding June 30 of the following year. The District will promptly notify EMMA, the Dissemination Agent and the Participating Underwriter of a change in the District’s or the Issuer’s Fiscal Year dates in the manner provided in Section 5(a). (b) So long as the Dissemination Agent is an entity other than the District, then the provisions of this Section 3(b) shall apply. Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report to EMMA and the Participating Underwriter, the District shall provide the Annual Report to the Dissemination Agent. If by fifteen (15) Business Days prior to such date the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the District to determine if the District will be filing the Annual Report in compliance with subsection (a). The District shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. If the Dissemination Agent is an entity other than the District, it may conclusively rely upon such certification of the District and shall have no duty or obligation to review such Annual Report. (c) If the District is the Dissemination Agent and the District is unable to provide to EMMA and the Participating Underwriter an Annual Report by the date required in subsection (a), the District shall send a notice to EMMA, the Participating Underwriter and the Dissemination Agent in the manner prescribed by the Municipal Securities Rulemaking Board. If the Dissemination Agent is other than the District and if the Dissemination Agent is unable to verify that an Annual Report has been provided to EMMA and the Participating Underwriter by the date required in subsection (a), the Dissemination Agent shall send a notice to EMMA and the Participating Underwriter, in the form prescribed by the Municipal Securities Rulemaking Board. (d) The Dissemination Agent, if other than the District, shall promptly after receipt of the Annual Report, file a report with the District and the Issuer certifying that the Annual Report has been filed pursuant to this Disclosure Agreement and stating the date that it was filed.

Section 4. Content of Annual Reports. The Annual Report shall contain or include by reference to files available on EMMA the following:
(a) Financial Statements. The audited financial statements of the District and the Issuer, if any have been prepared, for the most recent Fiscal Year of the District and the Issuer then ended. If the audited financial statements are being prepared and are not available by the time that the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain any available unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. Audited financial statements, if any, of the District and the Issuer shall be audited by such auditor as shall then be required or permitted by State law or the Indenture. Audited financial statements, if prepared by the District and the Issuer, shall be prepared in accordance with generally accepted accounting principles as prescribed for governmental units by the Governmental Accounting Standards Board; provided, however, that the District and the Issuer may from time to time, if required by federal or state legal requirements, modify the basis upon which its financial statements are prepared. In the event that the District and the Issuer shall modify the basis upon which its financial statements are prepared, the District shall provide a notice of such modification to EMMA, including a reference to the specific federal or state law or regulation specifically describing the legal requirements for the change in accounting basis. (b) Financial and Operating Data.
(i) the principal amount of Bonds outstanding;
(ii) the balance in each fund under the Indenture and the Fiscal Agent Agreements; (iii) the Reserve Requirement;
(iv) a summary of Special Tax delinquencies for each Improvement Area as of the July 1 preceding the date of the Annual Report, the status of any judicial foreclosure proceedings initiated by the District as a result of the delinquency in the payment of special taxes and the summary of the results of foreclosure sales, if available; (v) a summary of the number of parcels on which the Special Taxes were levied, the assessed value of such parcels for the then-current Fiscal Year and the amount of Special Taxes levied for each Improvement Area; and (vi) the principal amount of prepayments of the special taxes with respect to the Improvement Areas for the preceding Fiscal Year.

Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the District, the Issuer or related public entities, which have been submitted to EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The District shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the District shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not more than ten (10) Business Days after the event:

1. principal and interest payment delinquencies;

2. unscheduled draws on debt service reserves reflecting financial difficulties;

3. unscheduled draws on credit enhancements reflecting financial difficulties;

4. substitution of credit or liquidity providers, or their failure to perform;

5. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability or of a Notice of Proposed Issue (IRS Form 5701-TEB);

6. defeasances;

7. tender offers;

8. bankruptcy, insolvency, receivership or similar proceedings of the obligated person;

9. ratings changes; and

10. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.

Note: For the purposes of the event identified in subparagraph (8), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. (b) Pursuant to the provisions of this Section 5, the District shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material:

1. unless described in Section 5(a)(5), other notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other events affecting the tax status of the Bonds;

2. modifications to the rights of Bond holders;

3. Bond calls;

4. release, substitution or sale of property securing repayment of the Bonds;

5. nonpayment related defaults;

6. the consummation of a merger, consolidation, or acquisition involving the District or the sale of all or substantially all of the assets of the District, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms;

7. appointment of a successor or additional trustee or the change of the name of a trustee; and

8. incurrence of a Financial Obligation of the obligated person, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders. (c) If the District determines that knowledge of the occurrence of a Listed Event under subsection (b) would be material under applicable federal securities laws, and if the Dissemination Agent is other than the District, the District shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to file a notice of such occurrence with EMMA in a timely manner not more than ten (10) Business Days after the event. (d) If the District determines that the Listed Event under subsection (b) would not be material under applicable federal securities laws and if the Dissemination Agent is other than the District, the District shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence. (e) The District hereby agrees that the undertaking set forth in this Disclosure Agreement is the responsibility of the District and, if the Dissemination Agent is other than the District, the Dissemination Agent shall not be responsible for determining whether the District’s instructions to the Dissemination Agent under this Section 5 comply with the requirements of the Rule.

Section 6. Termination of Reporting Obligation. The obligations of the District and the Dissemination Agent under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under Section 5(a) hereof.

Section 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent appointed by the District may resign by providing thirty (30) days written notice to the District, and upon appointment of a new Dissemination Agent hereunder.

Section 8. Amendment.
(a) This Disclosure Agreement may be amended, by written agreement of the parties, without the consent of the Owners if all of the following conditions are satisfied: (1) such amendment is made in connection with a change in circumstances that arises from a change in legal (including regulatory) requirements, a change in law, or a change in the identity, nature or status of the District or the type of business conducted thereby; (2) this Disclosure Agreement as so amended would comply with the requirements of the Rule as of the date of this Disclosure Agreement, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; (3) the District shall have delivered to the Dissemination Agent an opinion of a nationally recognized bond counsel or counsel expert in federal securities laws, addressed to the District, to the same effect as set forth in clause (2) above; (4) the District shall have delivered to the Dissemination Agent an opinion of nationally recognized bond counsel or counsel expert in federal securities laws, addressed to the District, to the effect that the amendment does not materially impair the interests of the Owners or Beneficial Owners; and (5) the District shall have delivered copies of such opinion and amendment to the Participating Underwriter. (b) This Disclosure Agreement also may be amended by written agreement of the parties upon obtaining consent of the Owners in the same manner as provided in the Indenture for amendments to the Indenture with the consent of the Owners of the Bonds; provided that the conditions set forth in Section 8(a)(1), (2), (3), (4) and (5) have been satisfied. (c) To the extent that any amendment to this Disclosure Agreement results in a change in the type of financial information or operating data provided pursuant to this Disclosure Agreement, the first Annual Report provided thereafter shall include a narrative explanation of the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. (d) If an amendment is made to the basis on which financial statements are prepared, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Such comparison shall include a quantitative and, to the extent reasonably feasible, qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information.

Section 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the District shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

Section 10. Default. In the event of a failure of the District or the Dissemination Agent to comply with any provision of this Disclosure Agreement, any Owner or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandamus or specific performance by court order, to cause the District and/or the Dissemination Agent to comply with their respective obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the District or the Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel performance.

Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the District agrees to indemnify and save the Dissemination Agent, and its officers, directors, employees and agents, harmless against any loss, expense, tax, expense, claim and liability which it may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the costs and expenses (including attorneys’ fees and expenses) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. Any Dissemination Agent other than the District shall be paid: (i) compensation by the District for its services provided hereunder in accordance with a schedule of fees to be mutually agreed to; and (ii) all fees and expenses, legal fees and expenses, disbursements and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall process the rights, powers, privileges, protections, benefits, indemnitees and immunities that it possesses as trustee under the Indenture. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

Section 12. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the District, the Issuer, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 13. Notices. Notices with respect to this Disclosure Agreement should be sent in writing to:

If to the District: City of San Marcos Community Facilities District 99-01 c/o City of San Marcos
One Civic Center Drive
San Marcos, California 92069
Attention: City Manager
If to the Dissemination Agent: U.S. Bank Trust Company, National Association Corporate Trust Services
1 California St, Ste 1000
San Francisco, CA 94111
If to the Participating Underwriter: Stifel, Nicolaus & Company, Incorporated 2121 Avenue of the Stars, Suite 2150
Los Angeles, CA 90067
Section 14. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof.

Section 15. State of California Law Governs. The validity, interpretation and performance of this Disclosure Agreement shall be governed by the laws of the State of California.

Section 16. Counterparts. This Disclosure Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The exchange of copies of this Disclosure Agreement and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Disclosure Agreement as to the parties hereto and may be used in lieu of the original Disclosure Agreement and signature pages for all purposes.

Section 17. Merger. Any organization or entity into which the Dissemination Agent may be converted or merged, or with which it may be consolidated, or any person succeeding to all or substantially all of the Dissemination Agent’s corporate trust business shall be the successor Dissemination Agent and succeed to the rights, powers, duties, immunities and privileges as its predecessor without the filing of any paper or any further act.

IN WITNESS WHEREOF, the parties have caused their duly authorized officer to execute and deliver this Disclosure Agreement on the date first written above.

City of San Marcos Community Facilities District 9901
By:

Name:

Title:

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Dissemination Agent By:

Name:

Title:

APPENDIX E

INFORMATION CONCERNING DTC
The information in this Appendix concerning DTC and DTC’s book-entry only system has been obtained from sources that the Authority, the Community Facilities District, the City, the Trustee, the Fiscal Agent and the Underwriter believe to be reliable, but none of the Authority, the Community Facilities District, the City, the Trustee, the Fiscal Agent or the Underwriter takes any responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, premium, if any, accreted value and interest on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered bond will be issued for each annual maturity of the Bonds, each in the aggregate principal amount of such annual maturity, and will be deposited with DTC.

DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the posttrade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized bookentry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive bonds representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee, the Fiscal Agent or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

A Bond Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Trustee. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Trustee’s DTC account.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered.

The Authority may decide to discontinue use of the system of book-entry only transfers through DTC (or a successor securities depository). In that event, bonds will be printed and delivered to DTC.

THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE.

APPENDIX F

FORM OF RATES AND METHODS OF APPORTIONMENT OF SPECIAL TAX

THE COMMUNITY FACILITIES DISTRICT
IMPROVEMENT AREAS IMPROVEMENT AREAS A1, A2, B1, B2, C1, D1, F2/V2, G3, H1A, H1B, J, M, N1, N2, R1, R2, AND V1A (CONSOLIDATED) The Rate and Method of Apportionment of Special Tax with respect to each Improvement Area within the Community Facilities District is substantially identical, with the exception of the Improvement Area referenced and certain information unique to each Improvement Area presented in Tables 1 through 4. Set forth on the following pages is a composite form of the Rate and Method of Apportionment of Special Tax for each Improvement Area, with the applicable information for each Improvement Area included in Tables 1 through 4. Accordingly, each Rate and Method of Apportionment of Special Tax is not provided.

APPENDIX G

SPECIMEN MUNICIPAL BOND INSURANCE POLICY
4869-8193-8354v8/200085-0014
9 4869-8193-8354v8/200085-0014
11 4869-8193-8354v8/200085-0014
25 4869-8193-8354v8/200085-0014
9 4869-8193-8354v8/200085-0014
11 4869-8193-8354v8/200085-0014
105
4869-8193-8354v8/200085-0014
106
4869-8193-8354v8/200085-0014
108
4869-8193-8354v8/200085-0014
123
4869-8193-8354v8/200085-0014
109
4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
A-9
4869-8193-8354v8/200085-0014
A-1
4869-8193-8354v8/200085-0014
B-41
4869-8193-8354v8/200085-0014
B-1
4869-8193-8354v8/200085-0014
C-2
4869-8193-8354v8/200085-0014
C-1
4869-8193-8354v8/200085-0014
D-7
4869-8193-8354v8/200085-0014
D-1
4869-8193-8354v8/200085-0014
E-2
4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
2 4869-8193-8354v8/200085-0014
i
4869-8193-8354v8/200085-0014
52 4869-8193-8354v8/200085-0014
4869-8193-8354v8/200085-0014
* Preliminary, subject to change.
* Preliminary, subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2024 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the Underwriter, the Authority, the City nor the Community Facilities District or their agents or counsel assume responsibility for the accuracy of such numbers. * Preliminary, subject to change.
* Preliminary, subject to change.
* Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.
* Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.

Preliminary, subject to change.
* Preliminary, subject to change.

Stradling Yocca Carlson & Rauth
Draft of 04/26/24

TABLE OF CONTENTS
(continued)
Page Page

TABLE OF CONTENTS
Page Page