Table of Contents. Sections. Tables. Appendices

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2 Table of Contents Sections Section 1. Bond Profile 1 Section 2. Fund Information 2 Section 3. Special Tax Information 3 Section 4. Owner and Development Status Information 4 Section 5. Payment History 5 Section 6. Senate Bill Tables Table 2-1. Fund Balances as of June 30, Table 3-1. Assigned Annual Special Tax Rates for Developed Property 3 Table 3-2. Special Tax Breakdown 3 Table 4-1. Largest Property Ownership Breakdown 4 Table 4-2. Development Status Information 4 Table 5-1. District Special Tax Delinquency Information 5 Table 6-1. Improvement Fund Balances as of June 30, Appendices Appendix A. Debt Service Schedule Appendix B. Budget Figures Appendix C. Fiscal Year Levy Detail Appendix D. Rate and Method of Apportionment Appendix E. Boundary Map Appendix F. Ordinance

3 Section 1 Bond Profile Community Facilities District No Special Tax Refunding Bonds The information herein for the City of Chino s Community Facilities District No , ( CFD or the District ) was prepared by Albert A. Webb Associates and the City of Chino, as Administrators. Except as otherwise noted all information is current as of June 30, Project Location The District is comprised of approximately 38 acres of land located in the City of Chino, immediately south of Chino Avenue, between Fern Avenue on the west and Euclid Avenue on the east. Project Description The District was formed to finance curbs, gutters, sidewalks, street lights, traffic signal, street signs, grading, adjustment of structural sections, adjustment of manholes, access ramps, fire hydrants, and parkway landscaping, including irrigation. Bond Profile and Principal Amount of Bonds Outstanding The Community Facilities District Special Tax Refunding Bonds (the Bonds ) refunded the outstanding 2004 Special Tax Bonds, previously issued by CFD on March 11, The Refunding Bonds were issued in the aggregate principal amount of $5,815,000, with interest rates ranging from 2.00% to 5.00%, and were issued August 30, Interest on the Bonds is payable semi annually on March 1 and September 1. The final maturity of the Bonds is September 1, The amount of Bonds outstanding as of June 30, 2017, is $5,040,000. This District is one of the six Local Obligations of the City of Chino Public Financing Authority (PFA) Refunding Revenue Bonds, Series of The City of Chino PFA Marks Roos Revenue Pool is also comprised of Community Facilities District Nos , , IA 1, and ; please see separate reports for information regarding these Districts. Annual Report for Fiscal Year Community Facilities District No

4 Section 2 Fund Information Fund Information The Fund Balances for CFD , as of June 30, 2017, are shown in Table 2 1 below: Table 2-1 Fund Balances as of June 30, 2017 Account Balance RESERVE FUND $449, BOND FUND $21.56 SPECIAL TAX PREPAY $0.00 SPECIAL TAX FUND $0.00 ADMIN EXPENSE $0.00 CITY HELD FUND $392, TOTAL $841, Reserve Fund Requirement and Reserve Fund Balance The Reserve Fund must be maintained at the Reserve Requirement which is defined as; at any date of calculation, an amount equal to the least of (i) the then Maximum Annual Debt Service, (ii) 125% of the then average Annual Debt Service, or (iii) 10% of the initial principal amount of the Bonds. The Reserve Fund Requirement as of June 30, 2017 is $448, The balance in the Reserve Fund as of June 30, 2017 is $449, The Reserve Fund is fully funded. Annual Report for Fiscal Year Community Facilities District No

5 Section 3 Special Tax Information Special Tax A Special Tax is collected each year to pay the principal and interest obligations on the Bonds of the District. The amount collected each year is determined by the Special Tax formula and can vary from year to year, but shall not exceed the maximum authorized (or permitted) Special Tax rates. The amount levied for the tax year was $449, The Assigned Special Tax rates for the tax year are: Table 3-1 Assigned Annual Special Tax Rates for Developed Property Land Use Class Building Square Footage Assigned Special Tax Rate Single Family Residential Property Less than 1,299 $1,925 / per Unit Single Family Residential Property 1,300 1,449 $2,025 / per Unit Single Family Residential Property 1,450 1,599 $2,125 / per Unit Single Family Residential Property 1,600 1,749 $2,225 / per Unit Single Family Residential Property 1,750 1,899 $2,325 / per Unit Single Family Residential Property 1,900 2,049 $2,425 / per Unit Single Family Residential Property 2,050 2,199 $2,525 / per Unit Single Family Residential Property 2,200 2,349 $2,625 / per Unit Single Family Residential Property 2,350 2,499 $2,725 / per Unit Single Family Residential Property 2,500 2,649 $2,825 / per Unit Single Family Residential Property 2,650 2,799 $2,925 / per Unit Single Family Residential Property 2,800 2,949 $3,025 / per Unit Single Family Residential Property 2,950 3,099 $3,125 / per Unit Single Family Residential Property 3,100 or Greater $3,225 / per Unit Condominium Unit Less than 1,299 $1,400 / per Unit Condominium Unit 1,300 1,449 $1,500 / per Unit Condominium Unit 1,450 or Greater $1,600 / per Unit Non Residential Property N/A $25,900 / per Acre Special Tax Breakdown Table 3-2 Special Tax Breakdown Percentage of Property Status Total Amount Levied Assigned Special Tax Assigned Special Tax Developed $449, $673, % Annual Report for Fiscal Year Community Facilities District No

6 Section 4 Owner and Development Status Information Largest Property Owner Based on the Total Annual Levy Table 4-1 Largest Property Ownership Breakdown Owner Parcels Total Special Taxes FY % of Total Special Taxes Total AV FY % of Total AV BENEDICT FAMILY TRUST 3 $4, % $971, % YU & QU FAMILY TRUST 2 $3, % $815, % CHOY & CAO FAMILY TRUST 2 $2, % $669, % BAUTISTA, ZENAIDA G 2 $2, % $813, % CHUANG, YU-HSIEN 2 $2, % $784, % CUEVAS, LETICIA 1 $1, % $588, % LEE, DAVID 1 $1, % $587, % RICAFORT, CRISHEL V 1 $1, % $587, % VAKHARIA, JAYESH 1 $1, % $587, % VAKHARIA, ROGER H 1 $1, % $573, % Subtotal 16 $26, % $6,978, % All Others 292 $423, % $112,753, % Total 308 $449, % $119,731, % Property Breakdown by Development Status Table 4-2 Development Status Information Development Status Parcels Total Special Taxes FY % of Total Special Taxes Total AV FY % of Total AV Developed 308 $449, % $119,731, % All Others 0 $ % $0 0.00% Total 308 $449, % $119,731, % Annual Report for Fiscal Year Community Facilities District No

7 Section 5 Payment History Delinquency Rate for the Fiscal Year As of October 4, 2017, the delinquency rate for the District for Fiscal Year is 0.47%. Information Concerning Delinquent Parcels The District s Special Tax delinquency information as of October 4, 2017 is illustrated in Table 5 1 below: Table 5-1 District Special Tax Delinquency Information Fiscal Year Amount Levied Amount Collected Parcels Delinquent Amount Delinquent Percent Delinquent 2006/2007 $19, $19, $ % 2007/2008 $508, $508, $ % 2008/2009 $512, $512, $ % 2009/2010 $513, $513, $ % 2010/2011 $513, $513, $ % 2011/2012 $507, $507, $ % 2012/2013 $454, $454, $ % 2013/2014 $452, $452, $ % 2014/2015 $452, $452, $ % 2015/2016 $455, $455, $ % 2016/2017 $447, $445, $2, % Total $4,837, $4,834, $2, % Status of Foreclosure Actions There are no foreclosure actions pending in the District and there have been no foreclosure sales in the District. Foreclosure Covenant Pursuant to Section of the Mello-Roos Act, each District has covenanted with and for the benefit of the Owners of the Bonds that it shall order, and cause to be commenced as provided in the Fiscal Agent Agreement, and thereafter diligently prosecute to judgment (unless such delinquency is theretofore brought current), an action in the superior court to foreclose the lien of any Special Tax or installment thereof not paid when due as provided in the following paragraph. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale. Such a judicial foreclosure sale is not mandatory under the Mello-Roos Act. However, pursuant to the Fiscal Agent Agreement, the District has covenanted with and for the benefit of the owners of the Bonds to do the following: On or about February 15 and June 15 of each Fiscal Year, the District will compare the amount of Special Taxes that were levied on the preceding December 10 and April 10 installments of the secured property tax bills to the amount of Special Tax Revenues actually received by the District in said installments, and proceed as follows: if the District determines that any single parcel subject to the Special Tax in the District is delinquent in the payment of Special Taxes, then the District will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within forty-five (45) days of such determination, and (if the delinquency remains uncured) shall commence foreclosure proceedings within ninety (90) days of such determination. Annual Report for Fiscal Year Community Facilities District No

8 Section 6 Senate Bill 165 Senate Bill 165 shall be cited as the Local Agency Special Tax and Bond Accountability Act. This Act requires that any local Special Tax/local bond measure subject to voter approval contain a statement indicating the specific purposes of the Special Tax, requires that the proceeds of the Special Tax be applied to those purposes, requires the creation of an account into which the proceeds shall be deposited, and requires an annual report containing specified information concerning the use of the proceeds. The Act only applies to bonds issued on or after January 1, 2001 in accordance with Sections and of the California Government Code. Some of the requirements of the Act are handled at the formation (bond issuance) of the Special Tax District and others are handled through annual reports. This section of the report intends to comply with Sections and of the California Government Code that states: The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, after the bonds have been issued and at least once a year thereafter. The annual report shall contain all of the following: a. The amount of funds collected and expended. Fiscal Year Revenues (1) Special Taxes Levied $447,533 Less: Delinquency as of 7/6/2017 $2,085 Total Special Taxes Received $445, Expenditures (1)(2) Bond Interest 3/1/2017 $118,375 Bond Interest 9/1/2017 $118,375 Bond Principal 9/1/2017 $205,000 Administrative Expenses (3) $8,804 Surplus Fund Credit ($3,019) Total Expenditures $447,535 City Held Fund Balance 6/30/2017 $392,437 (1) Amount Enrolled for the FY Fiscal Year to pay for Principal, Interest and Administrative Expenses. (2) Due to available surplus funds, amount enrolled was less than projected expenditures. (3) Amount allocated to Administrative Expenses and may not have been expended in its entirety. b. The status of any project required or authorized to be funded as identified in subdivision (a) of Section and Section The District is comprised of approximately 38 acres of land located in the City of Chino, immediately south of Chino Avenue, between Fern Avenue on the west and Euclid Avenue on the east. The District was formed to finance curbs, gutters, sidewalks, street lights, traffic signal, street signs, grading, adjustment of structural sections, adjustment of manholes, access ramps, fire hydrants, and parkway landscaping, including irrigation. This District is one of the six Local Obligations of the City of Chino Public Financing Authority (PFA) Refunding Revenue Bonds, Series of The City of Chino PFA Marks Roos Revenue Pool is also comprised of Community Facilities District Nos , , IA 1, and ; please see separate reports for information regarding these Districts. Annual Report for Fiscal Year Community Facilities District No

9 Section 6 Senate Bill 165 The following table shows the Initial Amount deposited to the Improvement Fund, the amount expended, the District s June 30, 2017 Improvement Fund balance and the project status: Table 6-1 Improvement Fund Balances as of June 30, 2017 District Name Initial Amount Deposited to Improvement Fund (1) Amount Expended June 30, 2017 Balance Project Status CFD $6,082, $6,082, $0.00 Completed (1) Includes Series 2004 initial deposit. Improvements have been completed in the CFD. The Improvement Fund has been closed. Annual Report for Fiscal Year Community Facilities District No

10 APPENDIX A Debt Service Schedule

11 Debt Service Schedule - Current City of Chino CFD PFA 2012 (Original) Payment Date Interest Rate Principal Principal Outstanding Interest Semi Annual Debt Service Annual Debt Service Call Premium 9/1/ % $185, $5,630, $258, $443, $443, % 3/1/2014 $5,630, $127, $127, % 9/1/ % $190, $5,440, $127, $317, $444, % 3/1/2015 $5,440, $124, $124, % 9/1/ % $195, $5,245, $124, $319, $443, % 3/1/2016 $5,245, $121, $121, % 9/1/ % $205, $5,040, $121, $326, $447, % 3/1/2017 $5,040, $118, $118, % 9/1/ % $205, $4,835, $118, $323, $441, % 3/1/2018 $4,835, $114, $114, % 9/1/ % $215, $4,620, $114, $329, $443, % 3/1/2019 $4,620, $109, $109, % 9/1/ % $220, $4,400, $109, $329, $439, % 3/1/2020 $4,400, $106, $106, % 9/1/ % $230, $4,170, $106, $336, $442, % 3/1/2021 $4,170, $101, $101, % 9/1/ % $240, $3,930, $101, $341, $443, % 3/1/2022 $3,930, $97, $97, % 9/1/ % $250, $3,680, $97, $347, $444, % 3/1/2023 $3,680, $92, $92, % 9/1/ % $260, $3,420, $92, $352, $444, % 3/1/2024 $3,420, $85, $85, % 9/1/ % $275, $3,145, $85, $360, $446, % 3/1/2025 $3,145, $78, $78, % 9/1/ % $285, $2,860, $78, $363, $442, % 3/1/2026 $2,860, $71, $71, % 9/1/ % $305, $2,555, $71, $376, $448, % 3/1/2027 $2,555, $63, $63, % 9/1/ % $315, $2,240, $63, $378, $442, % 3/1/2028 $2,240, $56, $56, % 9/1/ % $330, $1,910, $56, $386, $442, % 3/1/2029 $1,910, $47, $47, % 9/1/ % $345, $1,565, $47, $392, $440, % 3/1/2030 $1,565, $39, $39, % 9/1/ % $365, $1,200, $39, $404, $443, % 3/1/2031 $1,200, $30, $30, % 9/1/ % $380, $820, $30, $410, $440, % 3/1/2032 $820, $20, $20, % 9/1/ % $400, $420, $20, $420, $441, % 3/1/2033 $420, $10, $10, % 9/1/ % $420, $0.00 $10, $430, $441, % Totals: $5,815, $3,491, $9,306, $9,306, Bond Issue Date: 8/30/2012 Original Bond Principal: $5,815, Albert A. Webb Associates Page 1 of 1 Execution Time: 8/11/ :48:25 PM

12 APPENDIX B Budget Figures

13 CITY OF CHINO CFD , 2012 Special Tax Refunding Bonds BUDGET REPORT FISCAL YEAR Debt Service: Item Prior Year Current Year Difference Note/Comment March Interest Due $118, $114, ($4,100.00) September Interest Due $118, $114, ($4,100.00) September Principal Due $205, $215, $10, Total Debt Service $441, $443, $1, Administration: Item Prior Year Current Year Difference Note/Comment District Admin (City) $4, $4, $ Fiscal Agent $ $ $0.00 Tax Consultant (Webb) $3, $3, $68.67 Contract Amount Arbitrage Rebate & Rebate Liability Reports $ $0.00 ($282.36) Total Administration $8, $8, $75.46 Total Requirement $450, $452, $1, Rounding Adjustment ($1.67) ($1.44) $0.23 Credit to Levy ($3,019.06) ($2,959.17) $59.89 Credit due to Surplus Funds Actual Levy $447, $449, $1, Other: Item Prior Year Current Year Difference Note/Comment Auditor Controller 1 $92.40 $0.30 $92.40 $0.00 Total Other $92.40 $92.40 $ Added after the levy is submitted Factors: (Pre Credit) Notes: Levy % Difference 0.43% No Optional Redemption prior to 9/1/2022 per PFA 2012 Administration % of Levy 1.98% City % of Levy 0.99% Maximum Authorized Tax (update annually) $693, Bonds Outstanding prior to levy $4,835, Delinquency Rate for FY % as of 4/10/2017 Delinquency Rate for FY % as of 4/10/2017 Current # of parcels 308 Final Maturity 2033

14 APPENDIX C Fiscal Year Levy Detail

15 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, Albert A. Webb Associates Page 1 of 10 Execution Time: 9/5/ :05:10 AM

16 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D3 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D3 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, Albert A. Webb Associates Page 2 of 10 Execution Time: 9/5/ :05:10 AM

17 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D2 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D11 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, Albert A. Webb Associates Page 3 of 10 Execution Time: 9/5/ :05:10 AM

18 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D3 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, Albert A. Webb Associates Page 4 of 10 Execution Time: 9/5/ :05:10 AM

19 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, Albert A. Webb Associates Page 5 of 10 Execution Time: 9/5/ :05:10 AM

20 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due CONDO 3 1 $1, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D11 1 $2, SFR-D9 1 $2, SFR-D9 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D11 1 $2, SFR-D10 1 $2, $0.01 $1, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D1 1 $1, $0.01 $1, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D2 1 $2, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D3 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, Albert A. Webb Associates Page 6 of 10 Execution Time: 9/5/ :05:10 AM

21 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D3 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D3 1 $2, SFR-D2 1 $2, SFR-D3 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D6 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, Albert A. Webb Associates Page 7 of 10 Execution Time: 9/5/ :05:10 AM

22 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D4 1 $2, SFR-D2 1 $2, SFR-D4 1 $2, SFR-D10 1 $2, $0.01 $1, SFR-D7 1 $2, SFR-D11 1 $2, SFR-D7 1 $2, SFR-D9 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D6 1 $2, SFR-D4 1 $2, SFR-D3 1 $2, SFR-D4 1 $2, SFR-D6 1 $2, SFR-D3 1 $2, Albert A. Webb Associates Page 8 of 10 Execution Time: 9/5/ :05:10 AM

23 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due SFR-D4 1 $2, SFR-D6 1 $2, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, Albert A. Webb Associates Page 9 of 10 Execution Time: 9/5/ :05:10 AM

24 Fiscal Year Assessment Roll City of Chino CQ88ST01 - CFD APN Class Unit Count Assigned Tax Rounding Adjustment Total Due CONDO 3 1 $1, CONDO 1 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, CONDO 3 1 $1, CONDO 3 1 $1, CONDO 1 1 $1, Totals: 308 $673, $1.44 $449, Summary by Class Class CQ88ST01 - CFD Parcels Amount to Levy CONDO 1 CONDO 3 SFR-D1 SFR-D10 SFR-D11 SFR-D2 SFR-D3 SFR-D4 SFR-D6 SFR-D7 SFR-D9 Total: 24 $22, $51, $1, $3, $60, $48, $31, $100, $43, $42, $43, $449, Albert A. Webb Associates Page 10 of 10 Execution Time: 9/5/ :05:10 AM

25 APPENDIX D Rate and Method of Apportionment

26 RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX COMMUNITY FACILITIES DISTRICT NO OF THE CITY OF CHINO A Special Tax (capitalized terms are defined in Section A) shall be applicable to each Parcel of Taxable Property within the boundaries of Community Facilities District No (hereinafter CFD No ). The amount of Special Tax to be levied each Fiscal Year commencing in Fiscal Year upon a Parcel shall be determined through the application of the Rate and Method of Apportionment described below. All of the real property in CFD No , unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS Acre or Acreage means the land area of an Assessor s Parcel as shown on an Assessor s Parcel Map or as calculated from the applicable Assessor s Parcel Map by the City. Act means the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. Administrative Expenses means all actual or reasonably estimated costs and expenses of the District to carry out its duties in administering CFD No , as allowed by the Act, which shall include without limitation costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, litigation involving CFD No , continuing disclosure responsibilities of the District as imposed by applicable laws and regulations, communication with bondholders, and normal administrative expenses. Assessor s Parcel Map means an official map of the Assessor of the County designating parcels by assessor s parcel number. Assessor s Parcel Number means that number assigned to a parcel by the County for purposes of identification. Assigned Annual Special Tax means the Special Tax of that name described in Section C below. Backup Annual Special Tax means the Special Tax of that name described in Section C below. Bond(s) means any bonds or other indebtedness (as defined in the Act) secured by the levy of Special Taxes on behalf of CFD No Building Permit means a permit for the construction of residential, commercial, industrial, or other structures.

27 Building Square Footage or BSF means the square footage of internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor s Parcel and subject to verification and recomputation by City staff. Calendar Year means the period commencing January 1 of any year and ending the following December 31. City Council means the City Council of the City of Chino, acting as the Legislative Body of CFD No , or its designee. Condominium Property means all Assessor s Parcels of Residential Property on which Condominium Units may be constructed resulting from recordation of a condominium map or similar instrument that creates individual lots or airspace for which building permits may be issued without further subdivision. Condominium Unit means a residential dwelling unit with its own Assessor s Parcel resulting from the recordation of a condominium map or similar instrument that creates individual lots or airspace. Construction Fund means an account specifically identified in the Fiscal Agent Agreement to hold funds that are available for expenditure to acquire or construct public facilities eligible under the Act. County means the County of San Bernardino. Developed Property means all Parcels of Taxable Property, which (a) are included in a Final Map which was recorded prior to March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied, and (b) are the location for a Building Permit which was issued prior to March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied. Exempt Property means any Parcel, which is exempt from Special Taxes pursuant to Section E below. Final Map means (i) a final map, or portion thereof, approved by the County or City pursuant to the Subdivision Map Act (California Government Code Section et seq.) that creates individual lots for which building permits may be issued, or (ii) for condominiums, a final map approved by the County or City and a condominium plan recorded pursuant to California Civil Code Section 1352 creating such individual lots. The term Final Map shall not include any Assessor s Parcel Map or subdivision map or portion thereof that does not create individual lots for which a Building Permit may be issued, including Parcels that are designated as a remainder parcel. Fiscal Agent Agreement means the documents pursuant to which the Bonds are issued.

28 Fiscal Year means the period commencing July 1 of any year and ending the following June 30. Land Use Class means any of the classes listed in Table 1 in Section C. Maximum Special Tax means the highest Special Tax rate that can be levied by the City Council as determined in accordance with Sections C and D below in any Fiscal Year to satisfy the Special Tax Requirement. Non-Residential Property means all Parcels of Developed Property for which a Building Permit has been issued for any type of non-residential use. Outstanding Bonds means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prepayment of Maximum Special Taxes. Parcel means a lot or parcel shown on an Assessor s Parcel Map with an assigned Assessor Parcel Number as of January 1 preceding each Fiscal Year. Partial Prepayment Amount means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor s Parcel, as described in Section H. Prepayment Amount means the amount required to prepay the Annual Special Tax obligation in full for an Assessor s Parcel, as described in Section H. Property Owner s Association Property means any Parcel which, as of January 1 st preceding the Fiscal Year in which the Special Tax is being levied, has been conveyed, dedicated to, or irrevocably dedicated to a property owner s association, including master or sub-association. Proportionately means that the ratio of the actual Annual Special Tax levy to the applicable Special Tax is equal for all applicable Assessor s Parcels. Public Property means any Parcel within the boundaries of CFD No that is used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, a city, or any other public agency, provided however that any property leased by a public agency to a private entity and subject to taxation under Section of the Act shall be taxed and classified in accordance with its use. Redemption Amount means the principal amount of the Bonds to be paid with the proceeds of a prepayment or partial prepayment. Residential Property means all Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. Single Family Residential Property means all Parcels of Residential Property for which a building permit has been issued for purposes of constructing one residential dwelling unit on a single family lot.

29 Special Tax(es) means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property to fund the Special Tax Requirement. Special Tax Requirement means that amount required in any Fiscal Year to pay: (1) Debt service, for the calendar year which commences in such Fiscal Year, of the Bonds of CFD No , (2) Administrative Expenses attributable to such Bonds and the levy and collection of the Special Tax, (3) Costs of credit enhancement for such Bonds, (4) Replenishment of the reserve fund for such Bonds or accumulation of funds for future Bond payments, including any amount required to be rebated to the United States of America with respect to such Bonds, (5) Directly for construction of CFD No facilities eligible under the Act; less (6) A credit for funds available to reduce the annual Special Tax levy, as determined pursuant to the Fiscal Agent Agreement. Taxable Property means all Parcels in CFD No which are not exempt from the levy of Special Taxes pursuant to the Act or Section E below. Undeveloped Property means all Parcels of Taxable Property which are not Developed Property, or Public Property and/or Property Owner s Association Property that is not Exempt Property pursuant to the provisions of Section E. B. ASSIGNMENT TO LAND USE CLASS For each Fiscal Year (commencing with the Fiscal Year), each Parcel within CFD No shall be classified either as Developed Property, Undeveloped Property, or Public Property and/or Property Owner s Association Property that is not Exempt Property pursuant to the provisions of Section E and shall be subject to the levy of the Special Tax in accordance with the rates and method of apportionment set forth in Sections C and D below. Within Developed Property, all parcels shall be further classified as Single Family Residential Property, Condominium Unit, or Non Residential Property C. MAXIMUM SPECIAL TAX The following steps shall obtain the Maximum Special Tax applicable to each Parcel: 1. Developed Property Maximum Special Tax The Maximum Special Tax for each Parcel classified as Developed Property, shall be the greater of: (i) The amount derived by application of the Assigned Special Tax, or (ii) The amount derived by application of the Backup Special Tax. a. Assigned Special Tax

30 The Assigned Special Tax for each Parcel of Developed property shall be obtained by multiplying one of the following: (i) The number of dwelling units for the Parcel, for Parcels classified as Single Family Residential Property, by the Assigned Special Tax for the parcel s Land Use Class shown in Table 1. (ii) The number of dwelling units for the Parcel, for Parcels classified as a Condominium Unit, by the Assigned Special Tax for the parcel s Land Use Class shown in Table 1. (iii) The Acreage of the Parcel, for Parcels classified as Non-Residential Property, by the Assigned Special Tax for the parcel s Land Use Class shown in Table 1. TABLE 1 Assigned Special Tax Rates for Developed Property in CFD No by Land Use Class Land Use Class Building Square Footage Assigned Special Tax Single Family Residential Property Less than 1,299 $ 1,925 per Unit Single Family Residential Property 1,300-1,449 $ 2,025 per Unit Single Family Residential Property 1,450-1,599 $2,125 per Unit Single Family Residential Property 1,600-1,749 $ 2,225 per Unit Single Family Residential Property 1,750-1,899 $ 2,325 per Unit Single Family Residential Property 1,900-2,049 $ 2,425 per Unit Single Family Residential Property 2,050-2,199 $2,525 per Unit Single Family Residential Property 2,200-2,349 $2,625 per Unit Single Family Residential Property 2,350-2,499 $2,725 per Unit Single Family Residential Property 2,500-2,549 $2,825 per Unit Single Family Residential Property 2,650-2,799 $2,925 per Unit Single Family Residential Property 2,800-2,949 $3,025 per Unit Single Family Residential Property 2,950-3,099 $3,125 per Unit Single Family Residential Property 3,100 or Greater $3,225 per Unit Condominium Unit Less than 1,299 $ 1,400 per Unit Condominium Unit 1,300-1,449 $ 1,500 per Unit Condominium Unit 1,400 or Greater $ 1,600 per Unit Non Residential Property N/A $ 25,900 per Acre b. Backup Special Tax Each Fiscal Year, each Assessor s Parcel of Developed Property classified as Single Family Residential Property shall be subject to a Backup Annual Special Tax. In each Fiscal Year, the Backup Annual Special Tax rate for Developed Property, classified as Single Family Residential Property within a Final Map shall be $2,290 per Lot.

31 Each Fiscal Year, each Assessor s Parcel of Developed Property classified as a Condominium Unit shall be subject to a Backup Annual Special Tax. In each Fiscal Year, the Backup Annual Special Tax rate for Developed Property, classified as a Condominium Unit within a Final Map shall be $1,500 per Condominium Unit. Notwithstanding the foregoing, if all or any portion of Tentative Tract Map 16248, as approved by the City Council as of the date of this Rate and Method, is subsequently changed or modified, then the Backup Annual Special Tax rate for each Assessor s Parcel of Developed Property classified or to be classified as Single Family Residential Property in such Final Map area that is changed or modified shall be $0.61 per square foot of Acreage. Notwithstanding the foregoing, if all or any portion of Tentative Tract Map 16248, as approved by the City Council as of the date of this Rate and Method, is subsequently changed or modified, then the Backup Annual Special Tax rate for each Assessor s Parcel of Developed Property classified or to be classified as Condominium Property in such Final Map area that is changed or modified shall be $0.54 per square foot of Acreage. 3. Undeveloped Property The Maximum Special Tax for Undeveloped Property in CFD No in any Fiscal Year shall be $25,900 per Acre. 4. Public Property or Property Owner s Association Property that is not Exempt Property pursuant to the provisions of Section E: The Maximum Special Tax for Public Property or Property Owner s Association Property that is not Exempt Property pursuant to the provisions of Section E in CFD No shall be $25,900 per Acre. The Special Tax obligation for such property must be prepaid in whole pursuant to Section H. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property within CFD until the amount of Annual Special Taxes equals the Special Tax Requirement in accordance with the following steps: First: The Special Tax shall be levied Proportionately on all Parcels of Developed Property, up to 100 percent of the Assigned Special Tax, as needed to satisfy the Special Tax Requirement; Second: If additional funds are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Parcels of Undeveloped Property up to 100 percent of the Maximum Special Tax;

32 Third: If additional funds are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax; Notwithstanding the above, under no circumstances will the Special Taxes levied against any Parcel of Residential Property be increased by more than ten percent (10%) per Fiscal Year as a consequence of delinquency or default by the owner of any other parcel within the District. E. EXEMPTIONS AND ACQUISITION BY PUBLIC ENTITY EXEMPTIONS As of the date of formation of CFD No , the City shall classify as Exempt Property: (i) Assessor s Parcels owned by the State of California, Federal or other local governments, (ii) Assessor s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii)assessor s Parcels used exclusively by a homeowners association, or (iv) Assessor s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, provided that no such classification would reduce the sum of all Taxable Property to less than Acres. Notwithstanding the above, the City Council shall not classify an Assessor s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than Acres. Assessor s Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than Acres will continue to be classified as Undeveloped Property, and will continue to be subject to Special Taxes accordingly. ACQUISITION BY PUBLIC ENTITY If property within the boundary of CFD No that is subject to the special tax levied by CFD No is acquired by a public entity, the special tax shall continue to be levied on the property acquired and shall be enforceable against the public entity that acquired the property. However, the special tax obligation of the property so acquired may be prepaid and satisfied pursuant to the PREPAYMENT OF SPECIAL TAX OBLIGATION provisions provided below. F. MANNER OF COLLECTION OF SPECIAL TAXES The special taxes which shall be levied in each fiscal year shall be collected in the same manner as ordinary ad valorem property taxes or in such other manner as directed by the City Council and shall be subject to the same penalties and the same foreclosure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. However, under agreements for the sale of the bonds to be issued in the CFD, a shorter foreclosure period may be required.

33 The special taxes when levied shall be secured by the lien imposed pursuant to Section of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of special taxes. The lien of the special taxes shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with Section of the Government Code, or until the special taxes cease to be levied in the manner provided by Section of the Government Code. G. REVIEW AND INTERPRETATION Any landowner that believes that the amount of the special tax is in error may file a notice with the CFD appealing the levy of the special tax. A representative of the CFD appointed by the City Council will review the appeal and, if necessary, meet with the applicant. If the findings of the CFD representative verify that the amount of special tax should be modified or corrected, a recommendation will be made to the City Council of the CFD, and as appropriate the special tax levy shall be corrected or modified. If the representative finds that the special tax should not be modified or corrected, the applicant shall be notified in writing of the findings of the representative. If the applicant does not agree to the findings, the applicant may appeal directly to the City Council. Interpretations may be made by the City Council by resolution for purposes of clarifying any vagueness or ambiguity as it relates to any category, tax rate, method of apportionment, definition, etc., applicable to this Rate and Method of Apportionment of Special Tax. H. PREPAYMENT OF SPECIAL TAX 1. Prepayment in Full: The Maximum Special Tax obligation of a Parcel may be fully prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein; provided that if there are delinquent Special Taxes with respect to such Parcel at the time of prepayment, such delinquent Special Taxes, interest, and penalties shall also be paid. An owner of a Parcel intending to prepay the Maximum Special Tax obligation shall provide CFD No with written notice of intent to prepay and within 5 days of receipt of such notice, CFD No shall notify such owner of the amount of the nonrefundable deposit determined to cover the costs to be incurred by CFD No in calculating the proper amount of a prepayment. Within 15 days of receipt of such nonrefundable deposit, CFD No shall notify such owner of the prepayment amount for such Parcel. As of the date of prepayment, the Prepayment Amount shall be calculated as follows: a.i. For all Parcels of Developed Property, compute the Assigned Special Taxes and the Backup Special Taxes applicable to the Assessor s Parcel. For all Assessor s Parcels of Undeveloped Property, excluding any Undeveloped Property pursuant to Section E., compute the Assigned Special Taxes and the Backup Special Taxes applicable to the Assessor s Parcel as though it was already designated as Developed Property based upon the Building Permit issued or to be issued for that Assessor s Parcel. For Assessor s Parcels of Undeveloped Property compute the Assigned Special Tax.

34 a.ii. For each Assessor s Parcel of Developed Property or Undeveloped Property to be prepaid, (a) divide the Assigned Special Taxes computed pursuant to paragraph a.i. for such Assessor s Parcel by the sum of the estimated Assigned Special Taxes applicable to all Assessor s Parcels of Taxable Property at build out, as reasonably determined by the City, and (b) divide the Backup Special Tax computed pursuant to paragraph a.i. for such Assessor s Parcel by the sum of the estimated Backup Special Taxes applicable to all Assessor s Parcels of Taxable Property at build out, as reasonably determined by the City. a.iii. Multiply the larger quotient computed pursuant to paragraph a.ii.(a) or a.ii(b) by Outstanding Bonds. The product shall be the Bond Redemption Amount. b. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the Redemption Premium. c.i. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. c.ii. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. c.iii. Subtract the amount computed pursuant to paragraph c.ii. from the amount computed pursuant to paragraph c.i. This difference is the Defeasance Cost. d. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the Administrative Fee. e. Calculate the Reserve Fund Credit as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than 0. This amount in the Reserve Fund Credit f. The Prepayment Amount shall equal the following: a. Bond Redemption Amount, plus b. Redemption Premium, plus c. Defeasance Amount, plus d. Administrative Fees and Expenses, less e. Reserve Fund Credit.

35 With respect to an Annual Special Tax obligation that is prepaid pursuant to this Section H, the City Council shall indicate in the records of CFD No that there has been a prepayment of the Annual Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Annual Special Tax obligation and the release of the Annual Special Tax lien on such Assessor s Parcel, and the obligation of such Assessor s Parcel to pay such Annual Special Taxes shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Annual Special Taxes that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all Outstanding Bonds in each future Fiscal Year. 2. Prepayment in Part The Maximum Special Tax of a Parcel of Developed Property may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1., except that a partial prepayment shall be calculated according to the following formula: PP = P x F These terms shall have the following meaning: PP = the partial prepayment amount. P = the Prepayment Amount calculated according to Section H.1. F = the percent by which the owner of the Parcel is partially prepaying the Maximum Special Tax. The owner of a Parcel who desires to partially prepay the Maximum Special Tax shall follow the same procedures described in Section H.1. with respect to deposits, notices and calculation timeframes, and shall additionally provide the CFD No an indication of the percentage by which the Maximum Special Tax shall be prepaid. With respect to any Parcel that is partially prepaid, CFD No shall indicate in the records of CFD No that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Assigned Special Tax and Backup Special Tax equal to the outstanding percentage ( F) of the remaining Assigned Special Tax and Backup Special Tax shall continue to be authorized to be levied on such Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for the period necessary to satisfy the Special Tax Requirement, but in no event shall it be levied after Fiscal Year

36 APPENDIX E Boundary Map

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38 APPENDIX F Ordinance

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