REVIEW PRESENTATION OF ATHERTON PROPERTY TAXES FOR FISCAL YEAR 2016/17 BY PAULA CONE OF HDL COMPANIES

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1 Item No. 6 Town of Atherton FINANCE COMMITTEE STAFF REPORT TO: FROM: FINANCE COMMITTEE ROBERT BARRON III, FINANCE DIRECTOR DATE: NOVEMBER 15, 216 SUBJECT: REVIEW PRESENTATION OF ATHERTON PROPERTY TAXES FOR FISCAL YEAR 216/17 BY PAULA CONE OF HDL COMPANIES RECOMMENDATION Review the Atherton Tax Analysis performed by HdL for Fiscal 216/17. BACKGROUND Over the past several years HdL companies has provided the Town with property tax analysis. Staff has again tasked HdL to provide the Town with a property tax analysis for FY 216/17. Ms. Paula Cone is present to provide the overview for FY 216/17. In FY 211/12 the assessed value for the Town was $6,373,832,577. For FY 215/16, that value is now $8,794,736,283. Below is a chart reflecting the change in growth of property taxes. Tax Value Growth over 211/12 $6,373,832, /13 $6,949,217, % 213/14 $7,575,935, % 214/15 $8,68,565, % 215/16 $8,791,21,962 9.% 216/17 $9,512,555, % The change from FY 215/16 to 216/17 is $721,353,73. The net taxable value for Atherton increased by 8.21 percent and is slightly more than the countywide increase of 7.54 percent. Atherton was the fourth highest City in San Mateo County for property tax net value change of

2 year-to-year growth. From FY 211/12 to FY 216/17, Atherton has seen a growth of assessed property value by approximately 49 percent. A majority of the $721,353,73 value change is attributed to the residential category. This increase is related to properties that have been held over time and are now selling for greater values. Prior year transfer of ownership counted for $37,26,442. Proposition 8 included $41,79,319 in recaptured value which means properties in Atherton are being fully restored to their Prop 13 taxable values. Atherton saw an increase of $189,44,972 in other positive changes category, which is attributed to residential improvements. The Prop 13 net value change in CPI growth was 1.525% percent and resulted in $113 million in value change. Secured and Unsecured taxes are estimated at $7,923,645 per the HdL analysis. The FY 16/17 budget for Secured and Unsecured taxes was projected at $7,619,42. Ms. Cone is here to discuss the outcome of the analysis and give us an overview of Atherton property tax and possible trends. FISCAL IMPACT None. ATTACHMENTS Atherton 216/17 Tax Summary The Town of Atherton 216/17 Tax review 216/217 Preliminary Tax Reports

3 216/17 PROPERTY TAX REVIEW Total 215/16 $8,791,21, /17 $9,512,555,665 Value Change $721,353,73 to Value Change by Use Category Category $ Change % Change Parcel Adds/Drops Net Change.% Net Value Change from CPI 1.525% Growth 1.29% Unsecured Value Change.% Prior of ship 4.21% Non-Residential New Construction.7% Prop. 8 - Recaptured Value - SFR.47% Prop. 8 - Recaptured Value - Non-SFR.1% Other Changes* 2.15% 336, ,631,11-362,151 37,26,442 5,842,476 41,79,319 89,61 189,44,972 Residential Dry Farm Institutional Miscellaneous Unknown Vacant Unsecured $682,517,35 $3,891,78 $1,327 -$1,788,322 $22,431,74 $14,663,392 -$362,151 > 8.7% 27.1% 1.53% -6.92% 999.9% 5.12% % Total 8.21% 721,353,73 Change by Component Entire City Total 8.21% 3.8% Countywide 7.54% 4.64% 1,M 8,M 6,M 4,M 2,M M 27/8 28/9 Net Taxable Value Change Unsecured Nonunitary Secured 29/1 21/11 211/12 212/13 213/14 214/15 215/16 216/17 Notes: Residential property owned by Paul G. Roberts Trust at 119 Tuscaloosa Avenue was purchased for $35.3 million after this site was completed late last year. 2 residential properties owned by St. Jean Cap Ferrat LLC at 172 Tuscaloosa and the adjoining vacant lot posted an increase of $2 million after these properties were sold for a total of $21 million in 215. Residential property owned by 214 Atherton Avenue LLC at the same address increased by $1.8 million after the price paid in a sale transaction of $19.5 million was reflected on the current tax roll. A residential property and adjacent vacant lot were purchased by MR VC Holdings LLC at 5 Belbrook Way for $17.5 million and the sale price has been apportioned among the 2 properties involved in the sale for a collective increase of $13.9 million. Residential property owned by Scott W. Wagner Trust at 181 Austin Avenue was purchased in 215 for $16 M. The CCPI for is trending at 1.96% through Aug Top 1 Taxpayers Based on Net Values 216/ ATHERTON AVENUE LLC GEORGE R ROBERTS TRUST BITA DARYABARI TRUST PAUL G ROBERTS TRUST new home Tuscaloosa HUWA HOLDING LLC FARZAD NAZEM TRUST ERIC ROBERTS TRUST #34 in SPLENDID WISE LIMITED PINK SUNSET LLC #24 in PARKFIELD PROPERTIES HOLDING LLC Rank Top 1 Taxpayers Based on Net Values 215/ ATHERTON AVENUE LLC GEORGE R ROBERTS TRUST BITA DARYABARI TRUST HUWA HOLDING LLC SPLENDID WISE LIMITED FARZAD NAZEM TRUST PARKFIELD PROPERTIES HOLDING LLC 383 ASSOCIATES LLC #11 in WILLIAM TAI TRUST #12 in FALCON FAMILY HOLDINGS LLC #13 in *Other Changes may include effects of assessment appeals, residential improvements, and changes to secured exemptions, personal property, or utility-owned property values Data Source: San Mateo County Assessor 216/17 Secured and Unsecured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Prepared On 1/11/216 By PC Page 1

4 ATHERTON 216/17 PROPERTY TAX SUMMARY The Town of Atherton experienced a net taxable value increase of 8.2% for the 216/17 tax roll, which was slightly more than the increase experienced countywide at 7.5%. The assessed value increase between 215/16 and 216/17 was $721 million. The change attributed to the 1.525% Proposition 13 inflation adjustment was $114 million, which accounted for 16% of all growth experienced in the city. The largest assessed value increase was reported on a residential property owned by Paul G. Roberts Trust at 119 Tuscaloosa Avenue that was purchased for $35.3 million after this site was completed late last year. This property has a home and guest house for a total of more the 2, square feet of living area on almost 2 acres. This was a near record sale price for a single family home in Atherton. The sale price was an increase of $25 million over the value recorded on this property last year. Two residential properties owned by St. Jean Cap Ferrat LLC at 172 Tuscaloosa and the adjoining vacant lot posted an increase of $2 million after these properties were sold for a total of $21 million in 215. The assessed value of $532,819 was enrolled for the home site for Residential property owned by 214 Atherton Avenue LLC at the same address increased by $1.8 million after the price paid in a sale transaction of $19.5 million was reflected on the current tax roll. A residential property and adjacent vacant lot were purchased by MR VC Holdings LLC at 5 Belbrook Way for $17.5 million and the sale price has been apportioned among the two properties involved in the sale. The housing market continues to improve with sales of homes increasing year over year in most areas of the State. In some areas, the current median has surpassed the median at the height of the real estate bubble. Sale volume is down slightly throughout the state when compared to 215. The majority of sales now seem to be primarily non-distressed properties where the buyer plans to live in the home. This is a departure from the large number of short sales and investor buying experienced over the past several years. The median sale price of a single family home in Atherton from January through August 216 was $5,762,5. This represents a $262,5 (-4.4%) decrease in median sale price from 215. SFR Sales Median Price % Change $3,125, $3,522, % $3,82, 8.45% $3,989, 4.42% $4,42, 1.8% $6,25, 36.31% $5,762,5-4.36% Top 1 s Net Taxable Value 216/17 Tax Shift Summary ERAF I & II VLFAA (est.) % of Total $-1,836,32 $1,19,293 Use Type ATHERTON AVENUE LLC $56,22,947.59% Residential 2. GEORGE R ROBERTS TRUST $5,462,288.53% Residential 3. BITA DARYABARI TRUST $48,19,293.5% Residential 4. PAUL G ROBERTS TRUST $42,83,784.45% Residential 5. HUWA HOLDING LLC $4,61,.43% Residential 6. FARZAD NAZEM TRUST $32,899,623.35% Residential 7. ERIC ROBERTS TRUST $31,784,946.33% Residential 8. SPLENDID WISE LIMITED $31,376,7.33% Residential 9. PINK SUNSET LLC $31,,.33% Residential 1. PARKFIELD PROPERTIES HOLDING LLC $29,65,313.31% Residential Top Ten Total $394,629, %

5 Real Estate Trends Home Sales Home sales continue to rebound in many parts of the State but at a slower pace than last year. This is mainly due to inventory and affordability constraints. The reported median price of an existing, single family detached home in California during June 216 was $519,44. This was a 5.5 percent increase from $492,32 in June 215. All Homes Units Sold June-215 Units Sold June-216 % Change Median Price Median Price % Change June-215 June-216 Alameda County 1,925 1, % $655, $75, 7.63% Contra Costa County 1,934 1, % $5, $541, 8.2% Marin County % $93, $96, 3.23% Napa County % $54, $535, -.93% San Francisco County % $1,14, $1,17, 2.63% San Mateo County % $945, $1,7, 13.23% Santa Clara County 2,129 1, % $823, $86, 4.5% Solano County % $349, $375, 7.45% Sonoma County % $485, $529, % Pool of Prop 8 Reduced Values Restored Through In 1978 California voters approved Proposition 8 that allows county assessors to reduce the value of properties below their Proposition 13 taxable values when the real estate market declines. Such reductions are to be restored as the real estate market improves. Now after five years of declining and three years of improved real estate values, county assessors have restored large numbers of those previously reduced home values. The graph below reflects the percentage of assessed values restored in the region as of the start of for residential properties that have not changed ownership from within this pool of reduced values. Assessors will not restore values to their trended Proposition 13 levels until the strength of the market recovery is proven within neighborhoods. We are seeing continued recovery of Proposition 8 reductions in as median prices in most counties continue to move upward. In several of the North Bay counties, the median sale prices currently exceed those experienced in the real estate bubble. As we begin the fiscal year 71.8% of properties in Atherton awaiting restoration of value during have been fully restored. 1% Estimated Percentage of Prop 8 Value Restored Since Percent of Value Recaptured 9% 8% 7% 6% 5% 4% 3% 2% 1% 72.9% 75.% 76.% 78.5% 79.5% 87.5% 87.9% 89.4% % Napa Solano Marin Sonoma Contra Costa San Mateo Alameda Santa Clara County

6 PROPERTY DATA PRELIMINARY PROPERTY TAX REPORTS Revenue Management for Local Government

7 216/17 PROPERTY TAX Section 1: Entire City Contents Section 2: Foreclosure Information Section 3: Resources Values Growth by Use Category Prop 8 Potential Recapture History Comparison of Sale Price to Prop 8 Reduced Value City Growth Comparison Net Taxable Secured Value Changes Secured Value Change History Listing of ship Sales Value History County Sales Comparison by City Roll Summary Use Category Summary Residential Summary Tax Dollar Breakdown Representative General Levy Share Estimate Tax Revenue Weighted Average Shares Nonresidential New Construction Top Ten Taxpayers Top 25 Taxpayers - Secured Top 25 Taxpayers - Unsecured SBE Nonunitary Utilities Parcel Change Listing Secured Lender Owned Listing Median SFR Sales Price Increase Proposition 13 Inflation Adjustments Recapturing Proposition 8 Reductions Description of Tax Reports

8 212/13 TO 216/17 ASSESSED VALUES Unsecured Nonunitary Secured $ - 212/13-213/14-214/15-215/16-216/17 Percent Change $1,5,, $3,,, $4,5,, $6,,, City County $4,235,92,48 I $4,677,22, % I 6.9% $4,982,463,92 6.5% I 6.4% $5,43,46,575 9.% I 8.3% $5,953,68, % I 8.8% $2,885,227,36 I $3,15,554, % I 5.8% $3,317,615,95 6.8% I 5.% $3,596,936, % I 7.2% $3,8,816, % I 6.1% $15,944,256 I $16,376, % I.1% $13,41, % I 2.9% $16,319, % I 6.% $16,2, % I 4.9% $187,45,954 I $223,215, % I 11.5% $244,924, % I 5.1% $252,514, % I 6.3% $257,944, % I -2.5% $2,5,, $5,,, $7,5,, $1,,, City County Gross $7,136,263,772 I $7,799,151,43 9.3% I 6.% $8,313,489, % I 5.6% $9,43,716, % I 7.6% $9,77,499,923 8.% I 7.3% Net Taxable Value $6,949,217,818 I $7,575,935,532 9.% I 5.9% $8,68,565, % I 5.6% $8,791,21,962 9.% I 7.6% $9,512,555, % I 7.5% Data Source: San Mateo County Assessor 212/13 To 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 1

9 216/17 GROWTH BY USE CATEGORY 215/16 to 216/17 Value Growth by Use Category Category 215/16 Net Taxable Value 216/17 Net Taxable Value $ Change % Change Residential 2,483 $8,462,254,824 2,479 $9,14,964,867 (96.1%) $678,71,43 Vacant 77 $286,346, $34,817,615 (3.2%) $18,47,654 Miscellaneous 36 $25,83, $24,42,251 (.3%) -$1,788,322 Unknown $ 4 $22,431,74 (.2%) $22,431,74 Dry Farm 1 $14,46,332 1 $18,297,41 (.2%) $3,891,78 Unsecured [36] $2,276,277 [32] $1,914,126 (.%) -$362,151 Institutional 16 $86, $88,322 (.%) $1,327 Commercial 5 $ 5 $ (.%) $ Recreational 2 $ 2 $ (.%) $ 8.% 6.5% -6.9% > 999.9% 27.% -15.9% 1.5%.%.% TOTALS 2,62 $8,791,21,962 2,621 $9,512,555,665 (1.%) $721,353,73 8.2% Numbers in blue are parcel/assessment counts Value by Major Use Category $1,,, $8,,, 215/16 216/17 Net Value $6,,, $4,,, $2,,, $ Residential Vacant Miscellaneous Unknown Dry Farm Unsecured Institutional Use Category Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 2

10 Roll Prop 8 Parcel Count PROP 8 POTENTIAL RECAPTURE HISTORY Single Family Residential Parcels Real Value of Prop 8 Parcels Inflation Adjusted Peak Taxable Values Potential Recapture % of All Parcels Prop 8 Parcels that have fully Recaptured Increase in Real AV Due to full Recaptures Prop 8 Parcels that have Recaptured Value Increase in Real AV Due to Recaptures ,141,93 157,421,759 9,279, % 3 83, ,157, ,13, ,738,526 68,67, % 7 14,397, ,397, ,854,658 1,84,527, ,672, % 38 32,966, ,239, ,56,781,751 1,37,954, ,172, % 53 49,686, ,797, ,148,259 1,113,989,529 22,841,27 7.6% 69 51,879, ,19, ,78,471 79,33, ,55, % 45 3,674, ,735, ,858,91 638,671,849 94,812, % 35 27,873, ,144, ,4,76 547,367,39 76,966, % 38 19,557, ,79, ,653,65 365,543,6 54,889, % Totals for Single Family Residential Parcels Prop 8 History 1,,, $28,, 8,,, $24,, 6,,, 4,,, 2,,, Potential Recapture Net AV $2,, $16,, $12,, $8,, $4,, $ Recapture Potential Recaptured Value Fully Recaptured The report identifies those parcels which have been granted a value reduction and are eligible for further potential of recaptured value per Proposition 8. The reductions were based on market conditions at the time of assessor review. This calculation is derived from historical transfers of ownership, Assessor applied Proposition 8 reductions and trends in the marketplace relative to median and average home sales and is an estimate of the impact of current adjustments to the assessment roll as of the lien date. The Inflation Adjusted Peak Value is defined as a parcel s highest value after its most recent sale. If a parcel is assessed for a lower value after its most recent sale, then the sales price becomes the peak value. Peak values are inflated annually according to the maximum allowed rate under proposition 13. The count of Prop 8 Parcels that have recaptured value includes both parcels that have been fully recaptured and are no longer in the Prop 8 Parcel Count as well as parcels that have only recaptured a portion of the Inflation Adjusted Peak Values. The Proposition 8 potential value recapturing is shown in the Potential Recapture Column and assumes no future sales transactions. As properties transfer ownership they are removed from the Prop 8 Parcel Count and if sold for more or less will not be eligible for value recapturing per Proposition 8. Data Source: San Mateo County Assessor Combined Tax Rolls; Sales Through 8/31/216 This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone V3. Page 3

11 Roll Prop 8 Parcel Count COMPARISON OF SALE PRICE TO PROP 8 REDUCED VALUE Single Family Residential Parcels Count Real Value of ed Prop 8 Parcels Sale Values of s Recapture Potential Lost Due to Real Value Change % Change Over Real Value Due to Sale ,484,656 7,5, -49,925 1,565, % ,3, 1,73, 1,951,8-1,57, -12.8% ,633,629 41,234, 4,582,915 3,6, % ,37,99 57,956, 1,14, ,91 1.1% ,214,577 61,517, 3,655,541 3,32, % ,42,377 51,974, -4,342,82 16,571, % ,478, 31,225, 2,473,13 1,747, 5.9% ,175, 42,44, -5,826,992 8,869, 26.7% ,27,81 5,, -1,879,292 1,972, % The report identifies those parcels which have been granted a value reduction and are eligible for further potential of recaptured value per Proposition 8. The reductions were based on market conditions at the time of assessor review. This calculation is derived from historical transfers of ownership, Assessor applied Proposition 8 reductions and trends in the marketplace relative to median and average home sales and is an estimate of the impact of current adjustments to the assessment roll as of the lien date. The Inflation Adjusted Peak Value is defined as a parcel s highest value after its most recent sale. If a parcel is assessed for a lower value after its most recent sale, then the sales price becomes the peak value. Peak values are inflated annually according to the maximum allowed rate under Proposition 13. The Count includes parcels that are in the Proposition 8 Parcel Count but have sold during the calendar year. As properties transfer ownership they are removed from the Proposition 8 pool of parcels and, if sold for more or less, will not be eligible for value recapturing per Proposition 8. The Proposition 8 potential value recapturing is shown in the Potential Recapture Column and assumes no sales transactions. Data Source: San Mateo County Assessor Combined Tax Rolls; Sales Through 8/31/216 This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 4

12 City SAN MATEO COUNTY CITY GROWTH COMPARISON 215/16 To 216/17 Net Taxable Value Change Menlo Park 15,95,867,37 Redwood City 2,639,714,989 Foster City 9,367,471,356 Atherton 9,512,555,665 Hillsborough 9,127,467,353 Burlingame 9,79,976,378 San Mateo 22,748,67,373 San Bruno 6,943,137,31 East Palo Alto 2,48,21,721 Belmont 6,171,97,318 San Carlos 9,277,317,514 Woodside 5,73,541,523 South San Francisco 16,456,15,999 Millbrae 4,968,166,672 Pacifica 5,569,87,435 Daly City 1,892,387,246 Brisbane 1,91,32,491 Portola Valley 3,148,195,594 Half Moon Bay 2,755,743,731 Colma 635,893, /17 Net Value Value Change % Change 1,674,92,448 1,844,313,7 789,211, ,353,73 658,167,13 691,621,48 1,616,635, ,257,56 17,776,29 422,879, ,972, ,389, ,218, ,796,743 3,42, ,764,928 92,427,32 136,12,621 93,355,789 13,512, % 9.813% 9.2% 8.25% 7.771% 7.669% 7.65% 7.581% 7.395% 7.356% 6.914% 6.95% 6.3% 5.968% 5.71% 5.56% 5.11% 4.519% 3.56% 2.171% Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren Page 5 & Cone

13 216/17 TOP 4 NET TAXABLE SECURED VALUE CHANGES Parcel Use Category Situs Current Net Taxable Value Net Taxable Value Change Value Change from Prior Residential Roberts Paul G Trust 119 Tuscaloosa Ave $35,3, +$25,53, % Vacant St Jean Cap Ferrat Llc 172 Tuscaloosa Ave $13,147,487 +$12,614,668 +2,368% Residential 214 Atherton Avenue Llc 214 Atherton Ave $19,5, +$1,847, % Residential Schneider David L Trust; Schneider Barbara 59 Selby Ln $16,225, +$1,46, % Residential Wagner Scott W Trust; Wagner Julianne R T 181 Austin Ave $16,, +$1,386, % Residential 95F Llc 95 Fleur Pl $19,84,399 +$9,264, % Residential 216 Park Lane Llc 216 Park Ln $1,2, +$9,174, % Residential Mr Vc Holdings Llc 5 Belbrook Way $11,766,747 +$8,836,38 +31% Vacant 88 Stern Lane Llc 88 Stern Ln $8,87,293 +$8,548,911 +3,39% Vacant St Jean Cap Ferrat Llc $8,122, +$8,3,699 +6,766% Residential Chen Kuo Yu 175 Britton Ave $8,8, +$7,642, % Residential Wise Family Trust 4 Selby Ln $8,121,999 +$7,541,678 +1,3% Residential Jia Ran Llc 8 Reservoir Rd $9,125, +$7,128, % Residential Fischer Joannie S 329 Fletcher Dr $14,213,499 +$7,73, % Vacant Hmk Selby Llc 458 Selby Ln $9,188,12 +$6,833,8 +29% Residential Linda Flora Hldgs Llc 88 Tuscaloosa Ave $7,17,135 +$6,722,585 +2,282% Residential Bccl Worldwide Inc 132 Isabella Ave $17,948,132 +$6,654,68 +59% Residential Nikcevic Paul Trust; Nikcevic Claudia Trust 58 Tuscaloosa Ave $6,75, +$6,41,996 +1,891% Residential Silver Birch Holdings Llc 73 Adam Way $6,599,124 +$6,349,263 +2,541% Residential Woo Myong Shin Trust; Kim Sungkook Trus 1 Sargent Ln $7,869,456 +$6,271, % Residential Ruder Brian J Trust; Ruder Brian J Trust 52 Linda Vista Ave $9,644,874 +$6,19, % Residential Almendral 168 Llc; Ml One Limited 9 Almendral Ave $6,218,45 +$5,875,251 +1,712% Residential Pink Sunset Llc 141 Tuscaloosa Ave $2,552, +$5,816,5 +39% Residential Lv Investors Llc 83 Linda Vista Ave $7,6, +$5,81, % Residential Cs Pacific Llc 97 Juniper Dr $11,5, +$5,76, % Residential 246 Atherton Avenue Llc 246 Atherton Ave $17,22,84 +$5,669, % Residential Liu Jenny Jin; Kuang Duane Ziping 43 Adam Way $5,989,974 +$5,661,27 +1,722% Residential Soemitro Ronny Suhardhanto 97 Mandarin Way $6,8, +$5,636, % Residential Mahowald Christopher W Trust; Mahowald A 8 Faxon Rd $8,675, +$5,598, % Residential Jones Brian David; Jones Kristin Jane 269 Stockbridge Ave $6,5, +$5,217, % Residential Bamdad Rafi; Nabavi Kathy 47 Camino Por Los Arboles $14,536,699 +$5,29,52 +56% Vacant Mr Vc Holdings Llc 8 Belbrook Way $6,,127 +$5,181, % Residential Chandler Mark; Wingate Laurie 73 Parkwood Dr $5,38,824 +$5,11,561 +1,827% Residential 91F Llc 91 Fleur Pl $13,75, +$4,98, +57% Residential 233P Llc 233 Polhemus Ave $6,678,487 +$4,881, % Residential Cloverhouse Llc 355 Stevick Dr $5,1, +$4,878,999 +2,28% Residential Lizards Llc 124 James Ave $5,127,12 +$4,73,569 +1,193% Residential Kwok Jerry Kim; Wu Anny Lingling 134 Stockbridge Ave $5,6, +$4,639, % Residential Levy Daniel A Trust; Levy Esther A Trust 97 Fairview Ave $9,35,725 +$4,57, % Residential Ma Yiming Trust; Chou Heidi Trust 91 Isabella Ave $12,995,2 -$4,841,186-27% Data Source: San Mateo County Assessor 215/16 And 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 6

14 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Tuscaloosa Ave 27 Monti Evelyn E 13,835 75,931 26,766 7, 28 Monti Evelyn E 133,451 77,449 21,9 7, 29 Monti Evelyn E 136,12 78, ,117 7, 21 Monti Evelyn E 135,797 78,89 214,66 7, 211 Monti Evelyn E Trust 136,819 79,42 216,221 7, 212 Athtusc Llc 139,555 8,99 22,545 7,,F 213 Athtusc Llc 6,95, 5, 7,, 214 Athtusc Llc 6,981,553 5,227 7,31, Crimson Tide Realty Trust 7,121,44 3,125, 1,246,44 35,3,F 216 Roberts Paul G Trust 27,635, 7,665, 35,3, Tuscaloosa Ave 27 Moorman Bette D Trust; Fremont Lisa Moorma 128, , ,967 7, 28 Moorman Bette D Trust; Fremont Lisa Moorma 131,21 356,55 487,526 7, 29 Moorman Bette D Trust; Fremont Lisa Moorma 133, , ,276 7, 21 Moorman Bette D Trust; Fremont Lisa Moorma 133, , ,97 7, 211 Moorman Bette D Trust; Fremont Lisa Moorma 134, ,54 499,831 7, 212 Moorman Bette D Trust; Fremont Lisa Moorma 137,13 372,814 59,827 7, 213 Moorman Bette D Trust; Fremont Lisa Moorma 139,753 38,27 52,23 7, 214 St Jean Cap Ferrat Llc 14, , ,383 7, 215 St Jean Cap Ferrat Llc 143, , ,819 7, 13,,F 216 St Jean Cap Ferrat Llc 13,147,487 13,147, Atherton Ave 27 Carpenter Charles H And D Trust 95,145 28,971 34,116 7, 28 Carpenter Charles H And D Trust 97,47 213,15 31,197 7, 29 Carpenter Charles H And D Trust 98, , ,4 7, 21 Carpenter Charles H And D Trust 98, , ,649 7, 211 Pnc Development Llc 99, ,53 318,25 7, 4,5,F 212 Pnc Development Llc 4,, 5, 4,5, 213 Pnc Development Llc 4,8, 51, 4,131, 214 Pnc Development Llc 4,98,523 1,138, 5,236, Atherton Avenue Llc 4,18,411 4,472, 8,652,411 19,5, Atherton Avenue Llc 13,91, 5,59, 19,5, Selby Ln 27 Psychology Associates 552,75 464,57 1,16,132 7, 28 Psychology Associates 563, ,338 1,36,454 7, 29 Psychology Associates 574, ,84 1,57,182 7, 21 Psychology Associates 573,16 481,659 1,54,675 7, 211 Psychology Associates 577,33 485,285 1,62,615 7, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 7

15 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Selby Ln (Continued) 212 Psychology Associates 588, ,99 1,83,866 7, 213 Owen Signature Homes Inc 6,653 54,889 1,15,542 7, 4,5,F 214 Owen Signature Homes Inc 4,45, 5, 4,5, 215 Schneider 21 Living Trust 4,538,911 1,28, 5,818,911 16,225,F 216 Schneider David L Trust; Schneider Barbara P 1,84, 5,385, 16,225, 7, Austin Ave 29 Sousa Walter J Trust; Sousa Karin Trust 3,6,56 1,638,518 5,239,78 7, 21 Sousa Walter J Trust; Sousa Karin Trust 3,592,26 1,634,634 5,226,66 7, 211 Sousa Walter J Trust; Sousa Karin Trust 3,619,73 1,646,942 5,266,15 7, 212 Sousa Walter J Trust; Sousa Karin Trust 3,691,454 1,679,88 5,371,334 7, 213 Sousa Walter J Trust; Sousa Karin Trust 3,765,283 1,713,477 5,478, Sousa Walter J Trust; Sousa Karin Trust 3,782,377 1,721,256 5,53, Wagner Family Trust 3,857,948 1,755,646 5,613,594 16,,F 216 Wagner Scott W Trust; Wagner Julianne R Tru 14,94, 1,6, 16,, Fleur Pl 27 Karlo Llc; J Budd Llc 6,242,4 1,336,914 7,579, Red Road Llc 6,367,248 1,363,652 7,73,9 8,,F 29 Red Road Llc 4,, 4,, 8,, 21 St Francis Investments Iii 3,99,52 3,99,52 7,981,4 211 St Francis Investments Iii 3,42, 3,42, 6,84, 212 St Francis Investment Iii 5,61, 3,6, 8,67, 213 St Francis Investment Iii 5,722,2 3,121,2 8,843, F Llc 5,748,178 3,135,37 8,883,548 1,64,F F Llc 1,54, 1,54, 17,6,F F Llc 16,91,712 3,712,687 19,84, Park Ln 27 Cheng Domingo And Jennie W Trust 497, , ,95 28 Cheng Domingo Trust; Cheng Jennie Wen Tru 57, , ,32 29 Cheng Domingo Trust; Cheng Jennie Wen Tru 517, , ,67 21 Cheng Domingo Trust; Cheng Jennie Wen Tru 516,17 438,69 954, Cheng Domingo Trust; Cheng Jennie Wen Tru 519, , , Cheng Domingo Trust; Cheng Jennie Wen Tru 53,392 45, , Cheng Domingo 54, ,848 1,, Cheng Domingo Trust 543, ,935 1,5, Park Lane Llc 554, ,164 1,25,477 1,2,F Park Lane Llc 1,15, 5, 1,2, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 8

16 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Belbrook Way 27 Mehran Masud Trust 1,391,813 1,237,166 2,628, Mehran Masud Trust 1,419,649 1,261,99 2,681, Mehran Masud Trust 1,448,41 1,287,147 2,735, Mehran Masud Trust 1,444,69 1,284,96 2,728, Mehran Masud Trust 1,455,486 1,293,765 2,749, Mehran Masud Trust 1,484,595 1,319,64 2,84, Mehran Masud Trust 1,514,286 1,346,32 2,86, Vc Holdings Llc 1,521,16 1,352,142 2,873, Vc Holdings Llc 1,551,552 1,379,157 2,93,79 7, 17,5,F 216 Mr Vc Holdings Llc 1,11,737 1,665,1 11,766, Stern Ln 27 Adelman Barnet R And B C Trust 153,161 78, ,786 7, 28 Adelman Barnet R And B C Trust 156,224 8, ,421 7, 29 Adelman Barnet R And B C Trust 159,348 81,8 241,148 7, 21 Adelman Barnet R And B C Trust 158,97 81,66 24,576 7, 211 Adelman Barnet R And B C Trust 16,167 82,22 242,387 7, 212 Adelman Barnet R And B C Trust 163,37 83, ,234 7, 213 Adelman Barnet R And B C Trust 166,637 85, ,178 7, Stern Lane Llc 167,393 85, ,322 7, Stern Lane Llc 17,737 87, ,382 7, 8,725,F Stern Lane Llc 8,87,293 8,87, (No Situs) 27 Moorman Bette D Trust; Fremont Lisa Moorma 16,125 16, Moorman Bette D Trust; Fremont Lisa Moorma 18,247 18, Moorman Bette D Trust; Fremont Lisa Moorma 11,411 11, Moorman Bette D Trust; Fremont Lisa Moorma 11,149 11, Moorman Bette D Trust; Fremont Lisa Moorma 11,978 11, Moorman Bette D Trust; Fremont Lisa Moorma 113, , Moorman Bette D Trust; Fremont Lisa Moorma 115,46 115, St Jean Cap Ferrat Llc 115, , St Jean Cap Ferrat Llc 118,31 118,31 8,,F 216 St Jean Cap Ferrat Llc 8,122, 8,122, Britton Ave 27 Kopfmann Alfred E Ii And Karen 728,627 24,2 968,827 7, 28 Kopfmann Alfred E Ii 743, ,3 988,22 29 Kopfmann Alfred E Ii 758,62 321,93 1,79,965 7, 21 Kopfmann Alfred E Ii 756, ,139 1,77,44 7, 211 Kopfmann Alfred E Ii 761, ,555 1,85,514 7, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 9

17 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Britton Ave (Continued) 212 Kopfmann Alfred E Ii 777,198 33,25 1,17,223 7, 213 Kopfmann Alfred E Ii 792, ,625 1,129,366 7, 214 Kopfmann Alfred E Ii 796,34 338,151 1,134,491 7, 215 Chen Kuo Y 812,25 344,97 1,157,157 7, 8,8,F 216 Chen Kuo Yu 8,75, 5, 8,8, Selby Ln 27 Lee Charles J And Jean E Trust 137, ,637 52,58 7, 28 Lee Charles J And Jean E Trust 14,71 39,289 53,99 7, 29 Lee Charles J And Jean E Trust 143, ,94 541,69 7, 21 Lee Jean E Trust; Lee Trust 143, ,15 54,324 7, 211 Lee Jean E Trust; Lee Trust 144,252 4,14 544,392 7, 212 Lee Jean E Trust; Lee Dennis E Trust 147,137 48, ,279 7, 213 Lee Family Trust 15,79 416,34 566,383 7, Selby Lane Llc 15,76 418, ,954 7, Selby Lane Llc 153, ,549 58,321 7, 8,,F 216 Wise Family Trust 7,57, ,226 8,121, Reservoir Rd 27 Halperin Robert M And Ruth L 8,327 1,71,248 1,79,575 7, 28 Halperin Robert M And Ruth L 81,933 1,744,452 1,826,385 7, 29 Halperin Robert M And Ruth L 83,571 1,779,341 1,862,912 7, 21 Halperin Robert M And Ruth L 83,372 1,775,123 1,858,495 7, 211 Halperin Robert M And Ruth L 83,999 1,788,489 1,872,488 7, 212 Halperin Robert M And Ruth L 85,678 1,824,258 1,99,936 7, 213 Halperin Robert M And Ruth L 87,391 1,86,743 1,948,134 7, 214 Halperin Robert M And Ruth L 87,787 1,869,19 1,956,977 7, 215 Halperin Robert M And Ruth L 89,54 1,96,536 1,996,76 7, 216 Jia Ran Llc 5,745, 3,38, 9,125, Fletcher Dr 27 Levison David L Trust; Levison Robert M Jr An 93, ,76 275, Levison David L Trust; Levison Robert M Jr An 95, ,34 281,85 29 Levison David L Trust; Levison Robert M Jr An 97, ,46 286,75 21 Levison David L Trust; Levison David L Trust 97, , , Learner James And Pamela B 98,16 19,17 288,177 3,5,F 212 Learner James; Learner Pamela B 3,, 5, 3,5, 213 Learner James; Learner Pamela B 3,6, 58, 3,64, 214 Fischer Joannie S 3,73,892 1,82, 4,875, Fischer Joannie S 3,135,38 4,5, 7,14,38 14,,F 216 Fischer Joannie S 1,147,423 4,66,76 14,213,499 Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 1

18 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Selby Ln 27 Kopel Irene B Trust 2,111,832 61,992 2,173, Kopel Irene B Trust 2,154,68 63,231 2,217, Kopel Irene B Trust 2,197,149 2,197, Kopel Irene B Trust 2,191,941 2,191, Kopel Irene B Trust 2,28,446 2,28, Kopel Irene B Trust 2,252,614 2,252, Kopel Irene B Trust 2,297,666 2,297, Hmk Selby Llc 2,38,97 2,38, Hmk Selby Llc 2,354,212 2,354,212 9,5,F 216 Hmk Selby Llc 9,188,12 9,188, Tuscaloosa Ave 27 Curusis Harry C Trust; Curusis Artemis Trust 13,753 16, ,231 7, 28 Curusis Harry C Trust; Curusis Artemis Trust 15, , ,515 7, 29 Curusis Harry C Trust; Curusis Artemis Trust 17, ,96 274,94 7, 21 Curusis Harry C Trust; Curusis Artemis Trust 17, , ,252 7, 211 Curusis Harry C Trust; Curusis Artemis Trust 18, , ,316 7, 212 Curusis Harry C Trust; Curusis Artemis Trust 11, , ,841 7, 213 Curusis Harry C Trust; Curusis Harry C Trust 112,88 174, ,477 7, 214 Curusis Harry C Trust; Curusis Harry C Trust 113, , ,781 7, 215 Linda Flora Hldgs Llc 115, , ,55 7, 216 Linda Flora Hldgs Llc 6,953,3 63,835 7,17,135 8,1,F Isabella Ave 27 Lee Hwalin Trust 677,85 756,743 1,433,828 7, 28 Lee Hwalin Trust 69, ,877 1,462,53 7, 29 Lee Hwalin Trust 74, ,314 1,491,752 7, 21 Mortazavi Family Trust 72, ,448 1,488,216 7, Isabella Avenue Llc 78,59 791,362 1,499, Isabella Avenue Llc 4,4, 4,4, Isabella Avenue Llc 4,488, 3,125, 7,613, Isabella Avenue Llc 4,58,375 5,356, 9,864, Bccl Worldwide Inc 4,598,452 6,695, 11,293,452 17,7,F 216 Bccl Worldwide Inc 9,945, 7,767, ,519 17,948, Tuscaloosa Ave 27 Elssner Helga Trust; Walberg Ellen Elssner Tr 91, ,811 34,19 7, 28 Elssner Helga Trust; Walberg Ellen Elssner Tr 93, ,67 31,19 7, 29 Elssner Helga Trust; Walberg Ellen Elssner Tr 94, ,48 316,393 7, 21 Elssner Helga Trust; Walberg Ellen Elssner Tr 94,759 22, ,642 7, 211 Elssner Helga Trust; Walberg Ellen Elssner Tr 95, , ,18 7, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 11

19 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Tuscaloosa Ave (Continued) 212 Elssner Helga Trust; Walberg Ellen Elssner Tr 97, , ,377 7, 213 Elssner Helga Trust; Walberg Ellen Elssner Tr 99, ,535 33,863 7, 214 Elssner Helga Trust; Walberg Ellen Elssner Tr 99, , ,364 7, 215 Nikcevic Living Trust 11, , ,4 7, 6,75,F 216 Nikcevic Paul Trust; Nikcevic Claudia Trust 6,7, 5, 6,75, Adam Way 27 Swenson Lloyd L And Lois P 91, , ,144 7, 28 Swenson Lloyd L And Lois P 93, ,52 228,625 7, 29 Swenson Lloyd L And Lois P 94, , ,197 7, 21 Swenson Lloyd L And Lois P 94, , ,643 7, 211 Swenson Lloyd L And Lois P 95, , ,394 7, 212 Swenson Lois P Trust; Swenson Lois P Trust 97, ,7 239,81 7, 213 Swenson Lois P Trust; Swenson Lois P Trust 99, , ,862 7, 214 Silver Birch Holdings Llc 99, ,19 244,968 7, 215 Silver Birch Holdings Llc 11, ,9 249,861 6,5,F 216 Silver Birch Holdings Llc 6,548,362 5,762 6,599, Sargent Ln 27 Levick Douglas G G Iii Trust; Levick Virginia R 796, ,73 1,433,37 7, 28 Levick Douglas G G Iii Trust; Levick Virginia R 812,58 649,464 1,461,972 7, 29 Levick Douglas G G Iii Trust; Levick Virginia R 828, ,453 1,491,211 7, 21 Levick Douglas G G Iii Trust; Levick Virginia R 826,793 66,882 1,487,675 7, 211 Levick Douglas G G Iii Trust; Levick Virginia R 833,18 665,858 1,498,876 7, 212 Levick Douglas G G Iii Trust; Levick Virginia R 849, ,175 1,528,853 7, 213 Levick Douglas G G Iii Trust; Levick Virginia R 866, ,758 1,559,429 7, 214 Chan David Y W Trust 87,65 695,93 1,566,58 7, 215 Chan David Y W Trust 887,999 79,87 1,597,86 7, 7,751,5F 216 Woo Myong Shin Trust; Kim Sungkook Trust 6,986, ,267 7,869, Linda Vista Ave 27 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,787,719 1,464,348 3,252,67 7, 28 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,823,473 1,493,634 3,317,17 7, 29 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,859,942 1,523,56 3,383,448 7, 21 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,855,533 1,519,895 3,375,428 7, 211 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,869,55 1,531,339 3,4,844 7, 212 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,96,895 1,561,965 3,468,86 7, 213 Whelan Harry Gabriel Iii Trust; Whelan Debora 1,945,32 1,593,24 3,538,236 7, 214 Ruder Brian J Trust 1,953,862 1,6,437 3,554,299 7, 215 Ruder Brian J Trust 1,992,9 1,632,413 3,625,313 7, 9,5,F 216 Ruder Brian J Trust; Ruder Brian J Trust 6,39,778 3,335,96 9,644,874 7, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 12

20 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Almendral Ave 27 Mcmicking Henry A And D B Trust 91, ,534 37,832 7, 28 Mcmicking Henry A And D B Trust 93,123 22, ,987 7, 29 Mcmicking Doris B Trust; Mcmicking Henry C 94, ,281 32,266 7, 21 Mcmicking Doris B Trust; Mcmicking Henry C 94, , ,56 7, 211 Mcmicking Henry C Living Trust 95, , ,911 7, 212 Mcmicking Doris B Trust Et Al 97,381 23, ,348 7, 213 Mcmicking Doris B Trust Et Al 99, , ,914 7, 214 Almendral 168 Llc; Ml One Limited 99, , ,433 7, 215 Almendral 168 Llc; Ml One Limited 11, , ,154 7, 6,125,F 216 Almendral 168 Llc; Ml One Limited 6,167,643 5,762 6,218, Tuscaloosa Ave 27 Burns Susan T Trust 2,717,433 2,293,688 5,11,121 7, 28 Burns Susan T Trust 2,771,781 2,339,561 5,111,342 7, 29 Burns Family Trust 2,827,216 2,386,352 5,213,568 7, 21 Burns John M Trust; Dean Robert R Trust 7,, 4,7, 11,7, Tusca Llc 7,52,71 4,735,391 11,788,11 2,4,F Tusca Llc 8,8, 5,3, 14,1, Tusca Llc 8,976, 5,46, 14,382, Tusca Llc 9,16,751 5,43,543 14,447, Pink Sunset Llc 9,196,95 5,539,45 14,735,95 31,,F 216 Pink Sunset Llc 15,322, 5,23, 2,552, Linda Vista Ave 27 Elder David L And Karlene L Trust 82,412 82,412 1,64,824 7, 28 Elder David L And Karlene L Trust 818,46 818,46 1,636,92 7, 29 Elder David L And Karlene L Trust 834, ,829 1,669,658 7, 21 Elder David L And Karlene L Trust 832,85 832,85 1,665,7 7, 211 Elder David L And Karlene L Trust 839, ,121 1,678,242 7, 212 Elder David L And Karlene L Trust 855,93 855,93 1,711,86 7, 213 Elder David L And Karlene L Trust 873,21 873,21 1,746,42 7, 214 Elder David L And Karlene L Trust 876, ,984 1,753,968 7, 215 Lv Investors Llc 894,56 894,56 1,789,12 7, 7,6,F 216 Lv Investors Llc 7,55, 5, 7,6, Juniper Dr 27 Crowell James E Trust; Crowell Lois C Trust 438,18 438,18 876,216 7, 28 Crowell James E Trust; Crowell Lois C Trust 446,87 446,87 893,74 7, 29 Vansomeren Nicholas B And Jacqueli 455,87 455,87 911,614 7, 21 Vansomeren Nicholas B And Jacqueli 454, ,726 99,452 7, 2,9,F 211 Van Someren Nicholas B; Van Someren Jacqu 2,821,84 2,821,84 Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 13

21 216/17 TOP 25 SECURED VALUE CHANGE HISTORY LISTING Juniper Dr (Continued) 212 Van Someren Nicholas B; Van Someren Jacqu 2,877,55 1,1, 3,977, Van Someren Nicholas B; Van Someren Jacqu 2,935,55 2,719, 5,654, Van Someren Nicholas B; Van Someren Jacqu 2,948,38 2,731,344 5,679, Cs Pacific Llc 3,7,288 2,785,916 5,793,24 11,5,F 216 Cs Pacific Llc 8,335, 3,165, 11,5, Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 14

22 Single Family Residential Tax # SFR Sales Original Values Sale Price GENERAL FUND Valid Sales Price Analysis 216 1/1/16-8/31/ /1/15-12/31/ /1/14-12/31/ /1/13-12/31/ /1/12-12/31/12 TRANSFER OF OWNERSHIP ( ) % Change Multifamily, Commercial, Industrial, Vacant Non SFR Sales Original Values Sale Price 59 $221,778,421 $444,21,1 1.3% 1 $3,87,262 $1,, 162.7% 6 $225,585,683 $454,21,1 11.3% $228,615,417 % Change Total Sales Original Values Totals Sale Values % Change $ Change Est. Revenue Change: $191, $286,735,943 $622,634, % 5 $2,413,115 $54,775, 168.3% 94 $37,149,58 $677,49,5 12.5% $37,26,442 Est. Revenue Change: $35, $391,493,227 $689,24, % 7 $27,398,628 $6,19, 119.7% 122 $418,891,855 $749,214, % $33,322,371 Est. Revenue Change: $276, $358,739,34 $586,816, 63.6% 1 $9,129, $9,8, 7.4% 16 $367,868,34 $596,616, 62.2% $228,747,66 Est. Revenue Change: $19, $322,941,128 $59,451, % 2 $13,156,173 $16,4, 24.7% 12 $336,97,31 $66,851,45 8.6% $27,753,744 Est. Revenue Change: $225, * Sale value is a sum of all Full Value Parcel Sales (Sales not included in the analysis are quitclaim deeds, trust transfers, partial sales, timeshares, multiple parcel transactions and non-reported document number transfers) Datasource: San Mateo County 212/13-216/17 Secured Tax Roll And County Recorder This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 15

23 SALES VALUE HISTORY Single Family Residential Full Value Sales (1/1/22-8/31/216) Full Value Sales Average Price Median Price Median % Change $2,318,128 $1,827, $2,16,814 $1,852,5 1.37% $2,87,871 $2,75, 48.45% 25 3 $2,493,25 $2,175, -2.91% $2,887,636 $2,6, 19.54% $3,448,25 $3,125, 2.19% $4,96,354 $3,975, 27.2% $4,18,522 $3,18, -2.% $3,73,83 $3,125, -1.73% $4,142,326 $3,522, % $4,99,345 $3,82, 8.45% $5,499,917 $3,989, 4.42% $5,851,968 $4,42, 1.8% $6,947,939 $6,25, 36.31% $7,425,96 $5,762,5-4.36% $8,, Median Price Avg Price $7,, $6,, Sales Price $5,, $4,, $3,, $2,, $1,, $ *Sales not included in the analysis are quitclaim deeds, trust transfers, timeshares, and partial sales. Data Source: San Mateo County Recorder This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 16

24 City ATHERTON BELMONT BRISBANE BURLINGAME COLMA DALY CITY EAST PALO ALTO FOSTER CITY HALF MOON BAY HILLSBOROUGH MENLO PARK MILLBRAE PACIFICA PORTOLA VALLEY REDWOOD CITY SAN BRUNO SAN CARLOS SAN MATEO SAN MATEO COUNTY UNINCORPORAT SOUTH SAN FRANCISCO WOODSIDE SAN MATEO COUNTY 216 COUNTY SALES COMPARISON BY CITY Single Family Residential Sales (1/1/215-8/31/216) 215 Sale Count Sale Count Median Sales Price 6,25, 1,425, 742,5 1,68, 687, 79, 595, 1,57,5 1,, 4,5, 1,9, 1,25, 77, 2,8, 1,135, 717, 1,46, 93, 1,3, 734,5 3,512,5 216 Median Sales Price 5,762,5 1,425, 75, 1,79, 8, 75, 75, 1,27, 95, 3,85, 1,875, 1,336, 81, 3,25, 1,225, 82, 1,515, 1,17,5 1,325, 82,5 3,85, Median % Change SAN MATEO COUNTY (Entire Region) 5,531 3,698 97, 1,5, 8.25 *Sales not included in the analysis are quitclaim deeds, trust transfers, partial sales, timeshares, multiple parcel transactions and non-reported document number transfers. Data Source: San Mateo County Recorder This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 17

25 216/17 ROLL SUMMARY Taxable Values Parcels TRAs Values Fixtures Aircraft Total Value Secured Nonunitary Utilities Unsecured 2, ,952,791,347 3,793,48,353 14,693,897 1,521, ,522 5,89,82 1,38,792 5,44 $9,762,486,745 $ $8,13,178 Real Estate 237,67,226 12,993,889 Fixtures 1,244,91 Aircraft s* 1,374, Total * $251,845,26 $ 5,757,32 341,732 $6,99,52 Total Net Value $9,51,641,539 $ $1,914,126 Combined Values Total Total Values $9,77,499,923 Total $257,944,258 Values $9,512,555,665 Net Aircraft Values $ * Note: are not included in Total Totals do not Include Aircraft Values or Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 18

26 216/17 USE CATEGORY SUMMARY BASIC PROPERTY VALUE TABLE Category Parcels Net Taxable Value Revenue Residential 2,479 $9,14,964,867 (96.1%) $7,61,637.7 (96.%) Commercial 5 $ (.%) $. (.%) Dry Farm 1 $18,297,41 (.2%) $15, (.2%) Institutional 16 $88,322 (.%) $75.65 (.%) Miscellaneous 36 $24,42,251 (.3%) $2,84.46 (.3%) Recreational 2 $ (.%) $. (.%) Vacant 78 $34,817,615 (3.2%) $255, (3.2%) Unsecured [32] $1,914,126 (.%) $1, (.%) Unknown 4 $22,431,74 (.2%) $19, (.2%) TOTALS 2,621 $9,512,555,665 $7,923, Net Taxable Value Revenue Others.7% Vacant 3.2% Others.7% Vacant 3.2% Residential 96.1% Residential 96.% Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 19

27 RESIDENTIAL SUMMARY 216/17 Secured Roll Residential Housing Summary Description Parcels % of Parcels Taxable Value % of Total Value Approx. Units Single Family Residential Detached 2, % $9,57,2, % Single Family Residential Totals 2, % $9,57,2, % 2,46 Other Misc 19.8% $83,763,87.9% Other Totals 19.8% $83,763,87.9% Totals 2,479 1.% $9,14,964,867 1.% 2,46 2,46 Parcel Counts Taxable Values Detached 99.2% Others.8% Total: 1.% Detached 99.1% Others.9% Total: 1.% Data Source: San Mateo County Assessor Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 2

28 PROPERTY TAX DOLLAR BREAKDOWN $.151 ERAF Share of San Mateo County $.131 San Mateo County $.1664 Menlo Park City Elementary General Purpose $.1868 ERAF Share of Menlo Park Fire District $.1383 Menlo Park Fire District $.1556 Sequoia High General Purpose $.1987 ERAF Share of Atherton General Fund $.857 Atherton General Fund $.676 San Mateo Junior Colllege General Purpose $.352 County Education Tax $.344 County Library $.183 Mid-penninsula Regional Open Space $.1458 Sequoia Hospital District $.351 County Harbor District $.28 Bay Area, Air Pollution $.191 Mosquito Abatement $.176 Atherton Channel Drainage $ 1. ATI (Annual Tax Increment) Ratios for Tax Rate Area 1-1, Excluding Redevelopment Factors & Additional Debt Service Data Source: San Mateo County Assessor 216/17 Annual Tax Increment Tables This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 21

29 City SAN MATEO COUNTY - 216/17 REPRESENTATIVE GENERAL LEVY SHARE ESTIMATE Estimate of City Representative Share of the General Levy before ERAF Shifts Applied by County Auditor City Rate* Other Rates* East Palo Alto Foster City Redwood City Belmont Pacifica Daly City Hillsborough San Mateo Burlingame South San Francisco Brisbane Millbrae San Bruno San Carlos Menlo Park Atherton Colma Half Moon Bay Woodside Portola Valley County Average: Total *The City tax rate is based on the largest non-redevopment Tax Rate Area in each city; other rates include city-governed overlaying districts such as lighting or maintenance districts. Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 22

30 General Fund Summary - Non SA TRAs Roll SEC UTIL UNS PROPERTY TAX REVENUE - 216/17 Estimated Revenue, Assuming Zero Delinquency, County Admin Fees Not Deducted Non SA TRAS Taxable Value $9,51,641,539 $ $1,914,126 General Fund Rate Revenue Debt Rate $9,767, $ $2, Debt Revenue Total Revenue TOTAL $9,512,555, $9,769, $. $9,769, Aircraft $ $. $. $. $. $. $. $9,767,234.4 $. Total Before Adjustments $9,512,555, $9,769, $. $9,769, Adjustment for AB-8 Growth (Net effective Total Revenue Loss) -$9, $-9, Adjustment for ERAF (From Basic Non-Aircraft Tax Rate Revenue Only) -$1,836, $1,836,31.98 Non SA TRAs Total $9,512,555, $7,923, SB 2557 County Admin Fees (Prior Actual ) $2,12.79 $7,923, $72, Unitary Revenue (Prior ) $43,59. VLF Revenue (Estimated) $1,19, Exemption revenues are included in the revenue model used for this report Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 23

31 Agency ERAF ERAF 7157-ERAF ERAF ERAF ERAF 796-ERAF 751-ERAF ERAF ERAF ERAF 216/17 WEIGHTED AVERAGE SHARES ATI Revenue by Agency for all NON SA TRAs within Selected Agency Agency Description Weighted Avg Share Sequoia High General Purpose % Menlo Park Fire District % San Mateo County % ERAF Share of San Mateo County % Menlo Park City Elementary General Purpose % Atherton General Fund % San Mateo Junior Colllege General Purpose % Las Lomitas Elementary % Redwood City Elementary General Purpose % County Education Tax % County Library % ERAF Share of Atherton General Fund % ERAF Share of Menlo Park Fire District % Mid-Penninsula Regional Open Space % Sequoia Hospital District % ERAF Share of County Library.73877% County Harbor District % Bay Area, Air Pollution.22616% Fair Oaks Sewer Distribution.19614% Mosquito Abatement % ERAF Share of Fair Oaks Sewer Distribution % Atherton Channel Drainage.86582% ERAF Share of County Harbor District.85568% ERAF Share of Mosquito Abatement.32373% ERAF Share of Atherton Channel Drainage.1517% County Fire Protection.819% Menlo Park Lighting.878% ERAF Share of Menlo Park Lighting.828% San Francisquito Creek Flood Zn 1.682% ERAF Share of San Francisquito Creek Flood Zn 1.132% University Heights Drainage.1% ERAF Share of University Heights Drainage.% Sequoia High General Purpose 15.1% Menlo Park Fire District 13.4% San Mateo County 12.7% ERAF Share of San Mateo County 1.2% Menlo Park City Elementary General Purpose 8.9% Atherton General Fund 8.3% San Mateo Junior Colllege General Purpose 6.6% Las Lomitas Elementary 5.% Redwood City Elementary General Purpose 4.8% County Education Tax 3.4% Others 11.5% Total: 1.% NOTES: The share calculations do not take into account any override revenue. In counties where ERAF is not included in the TRA factors it may not be represented in the listing above. In those counties, the shares for non-school and non-fire district taxing entities will likely be adjusted by the Auditor-Controller and will be lower than shown. Data Source: 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 24

32 216/17 WEIGHTED AVERAGE SHARES ATI Revenue by Agency for all NON SA TRAs within Selected Agency Agency Agency Description Weighted Avg Share 1.% NOTES: The share calculations do not take into account any override revenue. In counties where ERAF is not included in the TRA factors it may not be represented in the listing above. In those counties, the shares for non-school and non-fire district taxing entities will likely be adjusted by the Auditor-Controller and will be lower than shown. Data Source: 216/17 Combined Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 25

33 Parcel NONRESIDENTIAL NEW CONSTRUCTION 215/16 TO 216/17 TAX YEARS - IN PARCEL NUMBER ORDER Use Category Prior Current Percent Change Dry Farm Menlo Circus Club 11,688,792 15,382, % Institutional Menlo School 74,18,569 76,42, % 2 Parcels Listed 85,869,361 91,82, % This calculation reflects the 216/17 increase in taxable values for this city due to non-residential new construction as a percentage of the total taxable value increase (as of the 216 lien year roll date). This percentage may be used as an alternative to the change in California per-capita personal income for calculating a taxing agency's annual adjustment of its Appropriation Limit pursuant to Article XIIIB of the State Constitution as Amended by Proposition 111 in June, 199. Total Change in Non-Residential Valuation Due to New Development Less Automatic 1.525% Assessors's Inflation Adjustment 5,932,954-9,478 Actual Change in Non-Residential Valuation Change in Total Value = Alternate 217/18 Appropriations Limit Factor 5,842, ,353,73.81% Includes taxable primary parcels with known nonresidential use codes, no prior lien year transfers, and improvement value increases greater than 1.5% Change in Total Value is the assessed value change of the locally assessed secured and unsecured tax rolls. Data Source: San Mateo County Assessor 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 26

34 216/17 TOP TEN PROPERTY TAXPAYERS Top s Based On Net Values Secured Unsecured Combined Primary Use & % of Primary Agency Parcels Value Net AV Parcels Value Residential 1) 237 ATHERTON AVENUE LLC 3 $56,22,947.59% $56,22,947.59% Atherton General Fund % of Net AV Value % of Net AV Residential 2) GEORGE R ROBERTS TRUST 4 $5,462,288.53% $5,462,288.53% Atherton General Fund Residential 3) BITA DARYABARI TRUST 2 $48,19,293.5% $48,19,293.5% Atherton General Fund Residential 4) PAUL G ROBERTS TRUST 2 $42,83,784.45% $42,83,784.45% Atherton General Fund Residential 5) HUWA HOLDING LLC 1 $4,61,.43% $4,61,.43% Atherton General Fund Residential 6) FARZAD NAZEM TRUST 4 $32,899,623.35% $32,899,623.35% Atherton General Fund Residential 7) ERIC ROBERTS TRUST 4 $31,784,946.33% $31,784,946.33% Atherton General Fund Residential 8) SPLENDID WISE LIMITED 1 $31,376,7.33% $31,376,7.33% Atherton General Fund Residential 9) PINK SUNSET LLC 2 $31,,.33% $31,,.33% Atherton General Fund Residential 1) PARKFIELD PROPERTIES HOLDING LLC 2 $29,65,313.31% $29,65,313.31% Atherton General Fund Top Ten Total 25 $394,629, % $.% $394,629, % City Total $9,51,641,539 $1,914,126 $9,512,555,665 Top s last edited on 8/25/16 by MaheaV using sales through 6/3/16 (Version R.1) Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls and the SBE Non Unitary Tax Roll This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 27

35 216/17 TOP 25 PROPERTY TAXPAYERS - SECURED Top Taxpayers Based On Net Taxable Values (Number of Parcels) Value 1) 237 ATHERTON AVENUE LLC (3) $56,22,947 2) GEORGE R ROBERTS TRUST (4) $5,462,288 3) BITA DARYABARI TRUST (2) $48,19,293 4) PAUL G ROBERTS TRUST (2) $42,83,784 5) HUWA HOLDING LLC (1) $4,61, 6) FARZAD NAZEM TRUST (4) $32,899,623 7) ERIC ROBERTS TRUST (4) $31,784,946 8) SPLENDID WISE LIMITED (1) $31,376,7 9) PINK SUNSET LLC (2) $31,, 1) PARKFIELD PROPERTIES HOLDING LLC (2) $29,65,313 11) 383 ASSOCIATES LLC (1) $29,611,843 12) WILLIAM TAI TRUST (3) $29,44,3 13) FALCON FAMILY HOLDINGS LLC (1) $28,44,959 14) JO LYNN ALLEN TRUST (1) $28,54,434 15) SREEKANTH RAVI TRUST (2) $27,453,739 16) KING DOMAIN LIMITED (1) $25,888,366 17) NOAHS PARK PLACE LLC (1) $25,18, 18) GEORGE T ARGYRIS TRUST (3) $24,563,833 19) CALIFORNIA WATER SERVICE COMPANY (22) $23,855,542 2) MANOUTCHEHR MOVASSATE TRUST (3) $23,49,494 21) JOSEPH S LACOB TRUST (2) $23,385,152 22) MATHEW ZAHERI (3) $23,91,76 23) OCEANWIDE INT'L PROPERTIES CO (1) $22,625,13 24) MAKENA BEACH LLC (1) $22,174,4 25) SHIBUMI LLC (1) $21,891,552 The 'Est. Total Revenue' for each owner is the estimated revenue for that owner; the 'Est. Incr 1% Revenue' estimated the revenue apportioned as 1% increment Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level. Top s last edited on 8/25/16 by MaheaV using sales through 6/3/16 (Version R.1) Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls and the SBE Non Unitary Tax Roll This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 28

36 216/17 TOP 25 PROPERTY TAXPAYERS - UNSECURED Top Taxpayers Based On Net Taxable Values (Number of Parcels) Value 1) COMCAST (3) $97,15 2) DE LAGE LANDEN FINANCIAL SERVICES (1) $12,914 3) ADT LLC (1) $96,415 4) LYNDON ROBERT RIVE (2) $94,238 5) JOHN AND LAURA FOSTER LIVING (1) $87,412 6) KU CHAMPIONS LLC (1) $72,752 7) ROBERT A OYSTER (1) $66,879 8) RABBIT OFFICE AUTOMATION RABBBIT (1) $59,256 9) DIRECTV LLC (1) $5,63 1) KNOX PLAYSCHOOLS INC (1) $48, 11) F CLAY JUDD TRUST (1) $37,659 12) SODEXO AMERICA LLC (1) $36,657 13) ALFRED OR KAREN PACE (1) $35,213 14) NATIONAL CONSTRUCTION RENTALS (1) $24,953 15) THAO A PHAN (1) $24,816 16) GRAYHAWK LEASING LLC (1) $24, 17) TEWARI MANISH (1) $16,17 18) WILLIAM KENNETT (1) $14,75 19) TRAVIS A WALKER (1) $13,361 2) DAVID BOUCHER DOUGLAS (1) $13,119 21) DISH NETWORK LLC (1) $11,33 22) MAILFINANCE INC (1) $11,116 23) LUKE WILLIAM CLAUSON (1) $9,511 24) ROBERT BRIAN WILLIAMS (1) $9,62 25) J WILLIAM GURLEY (1) $8,636 The 'Est. Total Revenue' for each owner is the estimated revenue for that owner; the 'Est. Incr 1% Revenue' estimated the revenue apportioned as 1% increment Although these estimated calculations are performed on a parcel level, county auditor/controllers' offices neither calculate nor apportion revenues at a parcel level. Top s last edited on 8/25/16 by MaheaV using sales through 6/3/16 (Version R.1) Data Source: San Mateo County Assessor 216/17 Combined Tax Rolls and the SBE Non Unitary Tax Roll This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 29

37 SBE ASSESSED NONUNITARY UTILITIES - 216/17 TAX YEAR Company Parcels Parcel Improvement Map Number TRA Value Value Total Value Company Parcel Data Source: State Board of Equalization 216/17 Utility Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 3

38 216/17 PARCEL CHANGE LISTING Dropped Parcel Added Parcel TRA Use Category Situs Dropped Net Taxable Value Added Net Taxable Value Vacant Linda Flora Holdings Llc 93 Camino Por Los Arboles $12,23,4 $ Linda Flora Holdings Llc 93 Camino Por Los Arboles $ $5,789, Linda Flora Holdings Llc 83 Camino Por Los Arboles $ $6,599, Residential Dunlevie Bruce W Trust; Dunlevie Elizabeth W 25 Valparaiso Ave $3,34,752 $ Residential Dunlevie Bruce W Trust; Dunlevie Elizabeth W 8 Santiago Ave $6,856,348 $ Dunlevie Bruce W Trust; Dunlevie Elizabeth W 25 Valparaiso Ave $ $6,858, Dunlevie Bruce W Trust; Dunlevie Elizabeth W 25 Valparaiso Ave $ $3,183,825 3 Dropped Parcels 4 Added Parcels Totals: $22,94,14 $22,431,74 Data Source: San Mateo County Assessor 215/16 And 216/17 Secured Tax Rolls This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 31

39 216/17 SECURED LENDER OWNED LISTING Parcel TRA Residential Parcels In Name Order Situs Address Use Code Descr. Taxable Value $ Change % Change Last Valid Sale Date Last Valid Sale Price Records This report is a computer generated listing using common words for banks, mortgage, lending, and savings and loan companies. Some proper names may therefore be included that are not lending institutions and some lending institutions may not be included. This listing includes sales transactions through 8/31/216 and may be subject to changes as REO properties are acquired or sold from lending institutions. Data Source: San Mateo County Assessor 216/17 Secured Tax Roll This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 32

40 MEDIAN SFR SALES PRICE INCREASE Percent change in median price June June 216 Data Source: DataQuick This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 33

41 PROPOSITION 13 INFLATION ADJUSTMENTS Roll Assessor Applied Inflation Adjustments Prop 13 Cumulative Adjustments Statewide Actual CCPI Annual Statewide Actual CPI Cumulative Prop 13 Taxes on * $1, (CPI Cap) Taxes W/O Prop 13* $1, (Actual CPI) % 1.%.% 1.% $1, $1, % 12.% 6.25% 16.25% $1,2 $1, % 14.4% 7.17% % $1,4 $1, % 16.12% 8.23% % $1,61 $1, % 18.24% 9.83% % $1,82 $1, % 11.41% 17.32% 158.8% $1,14 $1, % % 7.13% 17.12% $1,126 $1, % % 11.14% 189.7% $1,149 $1, % 116.2% 1.% 19.96% $1,16 $1, % % 5.% 2.51% $1,183 $2, % 12.7% 5.1% 21.74% $1,27 $2, % % 4.4% 22.1% $1,231 $2, % % 2.95% % $1,256 $2, % 128.9% 5.16% % $1,281 $2, % 13.65% 4.73% % $1,37 $2, % % 4.758% % $1,333 $2, % % 6.4% % $1,359 $2, % % 3.4% % $1,387 $2, % % 3.44% % $1,414 $2, % % 2.31% 3.68% $1,443 $3, % % 1.194% 34.27% $1,46 $3, % % 1.115% 37.66% $1,476 $3, % 15.54% 2.399% 315.5% $1,55 $3, % % 2.81% 321.6% $1,536 $3, % 156.4% 1.853% % $1,564 $3, % % 3.214% 338.9% $1,595 $3, % % 4.172% % $1,627 $3, % % 3.215% % $1,66 $3, % % 2.459% % $1,693 $3, % % 1.867% % $1,725 $3, % 175.9% 3.665% % $1,759 $3, % % 4.596% % $1,794 $4, % 183.1% 2.269% 42.73% $1,83 $4, % % 3.38% % $1,867 $4, % 19.4% 3.477% 45.7% $1,94 $4, % % -.237% 449.% $1,899 $4, % %.753% % $1,914 $4, % % 2.889% % $1,952 $4, % % 3.81% % $1,991 $4, % 2.1%.454% % $2, $4, % 24.1% 1.998% 491.6% $2,4 $4, % 27.12% 1.525% 499.1% $2,71 $4,991 Totals $63,5 $128,523 *Assumes the tax rate is limited to one percent per Proposition 13 although pre-proposition 13 tax rates were not so limited. This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 34

42 PROPOSITION 13 INFLATION ADJUSTMENTS Roll Assessor Applied Inflation Adjustments Prop 13 Cumulative Adjustments Statewide Actual CCPI Annual Statewide Actual CPI Cumulative Prop 13 Taxes on * $1, (CPI Cap) Taxes W/O Prop 13* $1, (Actual CPI) 18% 16% Assessor Applied Inflation Adjustment California Consumer Price Index 5% Annual Adjustment 14% 12% 1% 8% 6% 4% 2% 4% 3% 2% 1% Cummulative Adj. % -2% % *Assumes the tax rate is limited to one percent per Proposition 13 although pre-proposition 13 tax rates were not so limited. This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 35

43 Recapturing Proposition 8 Reductions Proposition 13 caps the growth of a property s assessment at no more than 2% each year unless the market value of property falls lower. When property values decline Proposition 8 which was passed by the voters in 1978 allows the property to be temporarily assessed at the lower value. Once reduced, the assessed value and property taxes may increase by more than 2% a year as the property values rise during a real estate recovery. The recaptured values can be adjusted upward to the annually adjusted Proposition 13 cap (blue line below). YEAR 1: The $5, Sales Price of a newly purchased home is used as the Prop 13 Base Value. YEAR 2: The market value rises to $55,, but the Prop 13 assessed value for taxation is $51,. ($5, plus 2% CPI YEARS 3-6: Market value falls below Proposition 13 value and the assessor reduces the value to the lower value per proposition 8. YEAR 7: Market value is $59,, however the assessed value used for taxation is $563,81. ($5, plus the 2% CPI increase applied for each year after base year) This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Page 36