PALOS VERDES ESTATES 2018/19 PROPERTY TAX SUMMARY. Top 10 Property Owners

PALOS VERDES ESTATES 218/19 PROPERTY TAX SUMMARY The City of Palos Verdes Estates experienced a net taxable value increase of 5.2% for the 218/19 tax roll, which was modestly less than the increase experienced countywide at 6.5%. The assessed value increase between 217/18 and 218/19 was $366 million. The change attributed to the 2% Proposition 13 inflation adjustment was $128 million, which accounted for 35% of all growth experienced in the city. The largest assessed value increase was reported on a residential parcel located at 978 Paseo La Cresta. The owner of the parcel recently completed new construction which was valued at $7.3 million. The sale of a residential parcel to PVM Holdings LLC (1721 Paseo Del Mar) added $7.2 million in additional value to the roll. The sale of a single-family residential parcel located at 79 Via La Cuesta added $6.1 million in new value to the roll. Two of the largest assessed value declines were reported on a residential parcel. The owners of the parcel are eligible for base transfers under Proposition 6. Proposition 6 allows for transfers of the base value from a previous home for owners over 55. A Proposition 6 transfer of a home at 261 Rocky Point Road resulted in a reduction of $2.6 million. A second transfer on a home at 1329 Granvia Altamira resulted in a $1.8 million decline in assessed value. The St. Francis Episcopal Church did not file for their exemption by the close of the roll last year. The exemption was properly applied this year resulting in a $2.4 million decline. The housing market has fully recovered from the recent recession in many urban and coastal areas of the State while housing recovery has tended to lag in more rural and inland areas. Current median home prices, in many regions are at or above the pre-recession peak values. Affordability and inventory constraints are the main contributor to increases in home prices over the last year. The numbers of sales year over year have declined and the lack of significant new home construction in California is one of the main factors affecting supply. The median sale price of a detached single family residential home in Palos Verdes Estates from January through August 218 was $1,8,. This represents a $ (.%) increase in median sale price from 217. Year D-SFR Sales Median Price % Change 218/19 Tax Shift Summary 212 176 $1,411,5 213 21 $1,55, 6.62% 214 186 $1,65, 9.63% 215 23 $1,662,.73% 216 183 $1,74, 4.69% 217 213 $1,8, 3.45% 218 143 $1,8,.% Top 1 Property Owners Owner Net Taxable Value ERAF I & II VLFAA (est.) % of Total $-1,821,458 $1,523,668 Use Type 1. LOWELL W AND LISA B HILL $42,836,69.58% Residential 2. TEI FU CHEN TRUST $34,788,75.47% Residential 3. MASAFUMI MIYAMOTO $15,72,697.21% Residential 4. JOSE A AND BRIGITTE COLLAZO TRUST $14,955,.2% Residential 5. TATIANA VON FURSTENBERG TRUST $14,913,338.2% Residential 6. YI LIN $14,259,591.19% Residential 7. TIMOTHY D ARMOUR TRUST $14,158,378.19% Residential 8. PVM HOLDINGS $14,116,8.19% Residential 9. JACKSON AND JULIE YANG $14,22,338.19% Residential 1. WINSTEP INT'L HOLDINGS USA LLC $13,731,458.18% Residential Top Ten Total $193,484,419 2.6% 99.861.4335 www.hdlcompanies.com

Real Estate Trends Home Sales According to industry experts, price growth isn t the only problem that current home shoppers are facing. The median price increases coupled with the principal and rising interest payments have resulted in double digit percentage increases in the cost of a median-priced home over last year. The reported median price of an existing, single-family detached homes in California during June 218 was $62,76. This was a 8.5 percent increase from $555,42 in June 217. All Homes Units Sold June-217 Units Sold June-218 % Change Median Price Median Price % Change June-217 June-218 Imperial County 146 13-1.96% $214, $224, 4.67% Los Angeles County 8,721 7,54-13.95% $569, $615, 8.8% Orange County 3,574 3,74-13.99% $69, $72, 4.35% Riverside County 4,253 3,425-19.47% $357, $37, 3.64% San Bernardino County 3,179 2,653-16.55% $313, $32, 2.24% San Diego County 4,316 3,798-12.% $54, $565, 4.63% Ventura County 1,141 899-21.21% $569, $61, 7.21% Comparison of Current Median Sale Price to Peak Price Before the Great Recession In 1978 California voters approved Proposition 8 that requires county assessors to reduce the value of properties below their Proposition 13 taxable values when the real estate market declines. These reductions are to be restored as the real estate market improves. One of the gauges of the values to be restored is the progress each community is seeing in the growth of the median sale prices of single family homes. As we have moved through the Great Recession, we have seen the recovery of the real estate home prices in many regions approach or exceed pre-recession peak prices. The graph below provides a comparison of the detached home (excluding Condos and Townhomes) median peak price experienced at the height of the real estate bubble in Palos Verdes Estates and Los Angeles County well as several other counties in this region. Considering these trends, we expect to see that a majority of the homes under review per Proposition 8 will be completely restored in most of the urban and coastal counties. More counties have neared a 9-1% restoration level after our review of the 217-18 data in this segment of residential properties. As we begin the 217-18 fiscal year 8.2% of properties in Palos Verdes Estates awaiting restoration of value since 212-13 have been FULLY restored. Percent of Peak 12% 1% 8% 6% 4% Comparison of Median Sale Price to Pre Recession Peak Price 17% 19% 111% 112% 1% 86% 89% 89% 2% % SAN BERNARDINO COUNTY IMPERIAL COUNTY RIVERSIDE COUNTY VENTURA COUNTY SAN DIEGO COUNTY PALOS VERDES ESTATES ORANGE COUNTY LOS ANGELES COUNTY 714.879.5 www.hdlcompanies.com

218/19 PROPERTY TAX REVIEW Total 217/18 $7,75,865,925 218/19 $7,441,925,57 Value Change $366,59,582 Year to Year Value Change by Use Category Category $ Change % Change Parcel Adds/Drops Net Change.% Net Value Change from CPI 2.% Growth 1.81% Unsecured Value Change.1% Cross-Reference Value Change.3% Prior Year Transfer of Ownership 2.53% Prop. 8 - Recaptured Value - SFR.25% Prop. 8 - Recaptured Value - Non-SFR.% Other Changes*.54% 5,589 128,126,512 834,89 2,297,686 178,919,598 17,364,254 248,413 38,262,64 Residential Commercial Institutional Miscellaneous Vacant Cross Reference Unsecured $362,313,64 $1,47,342 -$3,8,49 $11,215 $2,995,218 $2,297,686 $834,89 5.22% 3.74% -94.19% 114.54% 3.99% 11.88% 15.43% Total 5.17% 366,59,582 Change by Component Entire City Total 5.17% Personal Property 19.65% Countywide 6.51% 9.52% 8,M Net Taxable Value Change Unsecured Nonunitary Secured Notes: The vacant category value increase above is the result of one property reclassified as vacant in error. 7,M 6,M 5,M 4,M 3,M 2,M 1,M The institutional category decline is the result of a current year exemption placed on St. Francis Episcopal Church. The exemption was missing in the prior year. The net change is -$2.4 million. The cross-reference increase is due to increases in assessment amounts for Cal Water of +$1.9 million. M 29/1 21/11 211/12 212/13 213/14 214/15 215/16 216/17 217/18 218/19 The unsecured category increase is the result of $5, in additional assessment value at the Palos Verdes Golf Club. The CPI for 219/2 is expected to be 2%. Top 1 Taxpayers Based on Net Values 218/19 LOWELL W AND LISA B HILL TEI FU CHEN TRUST MASAFUMI MIYAMOTO JOSE A AND BRIGITTE COLLAZO TRUST TATIANA VON FURSTENBERG TRUST YI LIN TIMOTHY D ARMOUR TRUST PVM HOLDINGS JACKSON AND JULIE YANG WINSTEP INT'L HOLDINGS USA LLC Rank 1 2 3 4 5 6 7 8 9 1 Top 1 Taxpayers Based on Net Values 217/18 TEI FU CHEN TRUST LOWELL W AND LISA B HILL MASAFUMI MIYAMOTO JOSE A AND BRIGITTE COLLAZO TRUST TATIANA VON FURSTENBERG TRUST YI LIN JACKSON AND JULIE YANG WINSTEP INT'L HOLDINGS USA LLC TIMOTHY D ARMOUR TRUST RICHARD C LUNDQUIST COTRUSTEE *Other Changes may include effects of assessment appeals, residential improvements,multi parcel sales, and changes to secured exemptions, personal property, or utility-owned property values Data Source: Los Angeles County Assessor 218/19 Secured and Unsecured Tax Rolls Prepared On 1/2/218 By NEC This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone

214/15 TO 218/19 ASSESSED VALUES Land Unsecured Nonunitary Secured $ - 214/15-215/16-216/17-217/18-218/19 Percent Change $1,3,, $2,6,, $3,9,, $5,2,, City County $3,899,54,314 I $4,158,779,846 6.7% I 6.5% $4,384,89,512 5.4% I 5.8% $4,66,69,351 5.1% I 6.6% $4,864,292,458 5.6% I 6.7% Improvements $2,25,3,414 I $2,312,312,12 4.9% I 5.4% $2,42,334,847 3.9% I 4.8% $2,54,16,966 4.2% I 5.3% $2,616,52,291 4.5% I 6.3% Personal Property $4,767,718 I $4,538,58-4.8% I 4.6% $4,133,295-8.9% I 5.2% $3,624,42-12.3% I 1.% $4,245,684 17.1% I 4.8% Exemptions $8,225,121 I $8,66,754-1.9% I 3.2% $8,555,398 6.1% I.7% $4,7,917-45.1% I 3.1% $8,81,31 87.4% I 5.4% $1,9,, $3,8,, $5,7,, $7,6,, City County Gross Assessed $6,18,852,446 I $6,475,63,528 6.% I 5.9% $6,79,557,654 4.9% I 5.3% $7,114,421,737 4.8% I 5.8% $7,484,59,433 5.2% I 6.4% Net Taxable Value $6,66,772,43 I $6,433,78,879 6.% I 6.1% $6,748,147,361 4.9% I 5.5% $7,75,865,925 4.9% I 6.% $7,441,925,57 5.2% I 6.5% Data Source: Los Angeles County Assessor 214/15 To 218/19 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

218/19 GROWTH BY USE CATEGORY 217/18 to 218/19 Value Growth by Use Category Category 217/18 Net Taxable Value 218/19 Net Taxable Value $ Change % Change Residential 5,93 $6,934,299,59 5,93 $7,296,612,699 (98.%) $362,313,64 Vacant 95 $75,141,73 94 $78,136,921 (1.%) $2,995,218 Commercial 28 $37,629,755 28 $39,37,97 (.5%) $1,47,342 Cross Reference [12] $19,34,231 [12] $21,637,917 (.3%) $2,297,686 Unsecured [113] $5,41,484 [132] $6,245,374 (.1%) $834,89 Institutional 5 $4,34,92 5 $234,493 (.%) -$3,8,49 Miscellaneous 3 $9,791 3 $21,6 (.%) $11,215 Exempt 26 $ 26 $ (.%) $ 5.2% 4.% 3.7% 11.9% 15.4% -94.2% 114.5%.% TOTALS 5,43 $7,75,865,925 5,429 $7,441,925,57 (1.%) $366,59,582 5.2% Numbers in blue are parcel/assessment counts Assessed Value by Major Use Category $8,,, $7,,, $6,,, 217/18 218/19 $5,,, Net Value $4,,, $3,,, $2,,, $1,,, $ Residential Vacant Commercial Cross Reference Use Category Unsecured Institutional Miscellaneous Data Source: Los Angeles County Assessor 218/19 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

Roll Year 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 28 13 179,517,527 212,97,877 32,58,35 2.6% 6 1,325,862 1 3,799,76 29 52 88,274,271 1,36,466,1 156,191,739 1.2% 14 4,76,479 2 6,854,98 21 627 998,855,643 1,24,513,288 241,657,645 12.3% 28 5,2,848 58 7,778,72 211 586 931,814,689 1,174,9,28 242,194,591 11.5% 16 5,322,984 35 6,53,499 212 642 1,38,222,94 1,331,451,276 293,228,336 12.6% 38 11,17,498 49 75,176,117 213 577 1,6,81,175 1,244,477,517 237,676,342 11.3% 157 39,16,722 459 12,85,695 214 397 765,952,58 897,325,978 131,373,47 7.8% 154 31,312,712 328 67,366,956 215 222 473,188,175 549,121,359 75,933,184 4.4% 36 5,949,722 77 14,171,266 216 184 398,75,227 467,546,135 68,84,98 3.6% 25 5,52,45 68 13,915,161 217 145 336,397,656 45,58,776 68,661,12 2.9% 21 8,747,746 55 17,364,254 218 128 29,969,185 361,75,98 7,735,913 2.5% Totals for Single Family Residential Parcels Prop 8 History 8,,, $32,, 7,,, $28,, 6,,, $24,, 5,,, 4,,, 3,,, 2,,, 1,,, 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 Potential Recapture Net AV $2,, $16,, $12,, $8,, $4,, $ 28 29 21 211 212 213 214 215 216 217 218 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 218-19 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 Data Source: Los Angeles County Assessor Combined Tax Rolls; Sales Through 6/3/218 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.

City LOS ANGELES COUNTY CITY GROWTH COMPARISON 217/18 To 218/19 Net Taxable Assessed Value Change Industry 9,293,155,324 Inglewood 9,422,83,371 La Verne 4,694,46,89 Compton 6,654,29,137 Hidden Hills 1,753,19,26 Los Angeles 611,292,199,77 Santa Monica 37,5,442,968 Beverly Hills 34,312,118,9 Lynwood 3,434,834,885 Malibu 16,925,73,561 Vernon 5,392,14,99 Culver City 11,41,1,983 El Segundo 13,83,212,373 South Pasadena 4,857,84,75 Alhambra 9,618,86,951 Azusa 4,81,638,583 West Hollywood 12,199,258,713 Gardena 6,397,613,521 Baldwin Park 4,882,763,579 Hermosa Beach 7,54,414,646 Norwalk 7,78,92,736 El Monte 7,879,938,643 South El Monte 2,36,757,544 Glendora 7,535,9,475 Santa Clarita 32,625,928,276 Whittier 9,85,739,8 Manhattan Beach 18,676,191,358 Pasadena 31,51,227,868 Palmdale 12,93,8,625 San Gabriel 5,35,816,694 Montebello 6,53,428,413 Hawthorne 8,189,99,99 Monrovia 5,695,935,492 Bell 1,865,851,616 Arcadia 16,62,75,687 West Covina 11,931,639,281 Pomona 11,656,73,274 Claremont 5,144,79,983 Downey 11,764,87,372 Huntington Park 2,985,81,243 Lomita 2,386,266,746 Maywood 1,54,556,267 Bellflower 5,511,21,13 Walnut 5,56,5,6 Lawndale 2,382,535,549 La Cañada Flintridge 8,21,748,824 218/19 Net Value Value Change % Change 919,765,521 865,773,543 383,281,928 514,851,884 132,554,89 43,371,277,372 2,622,611,46 2,363,613,924 235,56,79 1,148,547,514 35,772,696 711,299,631 841,218,847 35,813,579 64,5,552 299,718,11 755,156,6 392,217,813 298,176,925 457,698,88 467,716,768 475,713,672 142,18,576 452,783,341 1,898,582,857 57,259,371 1,84,316,91 1,78,412,879 735,217,71 31,11,83 343,337,274 463,737,598 321,4,299 14,768,85 925,64,125 665,119,362 636,952,677 279,89,9 639,312,45 161,916,39 129,182,333 56,931,685 296,79,71 298,11,277 126,952,182 426,375,338 1.984% 1.118% 8.89% 8.386% 8.18% 7.637% 7.618% 7.398% 7.363% 7.28% 6.958% 6.886% 6.872% 6.719% 6.71% 6.644% 6.599% 6.531% 6.54% 6.462% 6.459% 6.425% 6.41% 6.393% 6.179% 6.175% 6.164% 6.83% 6.29% 6.14% 6.13% 6.2% 5.973% 5.949% 5.94% 5.94% 5.78% 5.752% 5.746% 5.735% 5.723% 5.77% 5.677% 5.665% 5.628% 5.614% Data Source: Los Angeles County Assessor 218/19 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

City LOS ANGELES COUNTY CITY GROWTH COMPARISON 217/18 To 218/19 Net Taxable Assessed Value Change Rancho Palos Verdes 12,971,266,58 Irwindale 2,567,413,272 Lancaster 11,799,191,42 La Mirada 6,69,574,916 Bradbury 763,131,11 Lakewood 9,655,38,714 Monterey Park 7,651,5,516 Temple City 5,219,651,167 Santa Fe Springs 7,851,781,183 Redondo Beach 16,749,96,796 Pico Rivera 5,17,352,922 Palos Verdes Estates 7,441,925,57 Rolling Hills Estates 3,41,293,315 Artesia 1,711,48,452 Torrance 3,96,152,254 Long Beach 57,41,528,18 Carson 15,231,382,131 La Puente 2,35,532,249 Rosemead 4,656,776,448 San Marino 6,541,444,986 South Gate 5,898,727,23 Bell Gardens 1,85,948,793 Paramount 3,999,245,43 Glendale 31,923,45,24 San Fernando 1,942,294,38 Sierra Madre 2,315,29,928 Covina 5,499,732,315 Diamond Bar 1,3,52,911 San Dimas 5,452,299,664 La Habra Heights 1,462,259,761 Cerritos 9,637,21,915 Calabasas 8,431,648,784 Agoura Hills 5,251,279,267 Avalon 918,537,757 Burbank 23,949,656,68 Signal Hill 2,583,55,616 Rolling Hills 1,68,863,827 Cudahy 815,326,61 Commerce 5,416,316,971 Hawaiian Gardens 96,52,774 Westlake Village 3,564,916,55 Duarte 2,377,45,376 218/19 Net Value Value Change % Change 685,26,976 135,47,7 62,452, 35,423,218 38,786,537 489,98,855 381,52,14 26,244,292 39,976,854 831,589,987 254,658,288 366,59,582 167,58,912 83,157,467 1,499,856,222 2,779,347,959 731,92,759 19,635,831 218,46,98 36,576,97 275,999,936 83,288,41 183,342,59 1,455,155,36 87,66,97 14,486,169 246,813,653 443,469,389 235,166,735 61,295,482 399,424,19 336,298,363 193,297,186 33,84,829 861,346,989 82,443,694 52,147,855 22,819,221 149,711,971 15,785,115 35,991,747-173,99,454 5.576% 5.568% 5.55% 5.527% 5.355% 5.346% 5.248% 5.247% 5.24% 5.224% 5.181% 5.173% 5.168% 5.17% 5.1% 5.88% 5.42% 4.993% 4.921% 4.917% 4.99% 4.835% 4.85% 4.776% 4.727% 4.726% 4.699% 4.626% 4.58% 4.375% 4.324% 4.154% 3.822% 3.736% 3.731% 3.297% 3.22% 2.879% 2.843% 1.772% 1.2% -6.816% Data Source: Los Angeles County Assessor 218/19 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

Single Family Residential Tax Year # SFR Sales Original Values Sale Price GENERAL FUND Valid Sales Price Analysis 218 1/1/18-6/3/18 217 1/1/17-12/31/17 216 1/1/16-12/31/16 215 1/1/15-12/31/15 214 1/1/14-12/31/14 TRANSFER OF OWNERSHIP (214-218) % Change Multifamily, Commercial, Industrial, Vacant Non SFR Sales Original Values Sale Price 18 $144,31,428 $225,595,836 56.3% 4 $8,395,422 $16,475, 96.2% 112 $152,696,85 $242,7,836 58.5% $89,373,986 % Change Total Sales Original Values Totals Sale Values % Change $ Change Est. Revenue Change: $99,291.31 226 $318,24,538 $493,838,976 55.2% 6 $3,793,864 $7,115,24 87.5% 232 $322,34,42 $5,954, 55.6% $178,919,598 Est. Revenue Change: $198,767.8 192 $246,32,254 $396,611,677 61.% 9 $9,246,492 $21,272,823 13.1% 21 $255,548,746 $417,884,5 63.5% $162,335,754 Est. Revenue Change: $18,187.91 212 $253,58,526 $44,199,75 73.6% 5 $7,29,131 $9,38, 28.7% 217 $26,87,657 $449,579,75 72.3% $188,79,93 Est. Revenue Change: $29,28.45 196 $248,263,335 $45,114,374 63.2% 5 $4,15,48 $5,48,342 3.3% 21 $252,413,383 $41,522,716 62.6% $158,19,333 Est. Revenue Change: $175,132.38 * 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, and non-reported document number transfers) Datasource: Los Angeles County 214/15-218/19 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

SALES VALUE HISTORY Detached Single Family Residential Full Value Sales (1/1/24-6/3/218) Year Full Value Sales Average Price Median Price Median % Change 24 234 $1,51,616 $1,332,5 25 194 $1,816,183 $1,645, 23.45% 26 138 $1,955,69 $1,62, -1.52% 27 166 $1,886,258 $1,537, -5.12% 28 13 $1,818,277 $1,6, 4.1% 29 123 $1,731,939 $1,355,5-15.28% 21 175 $1,586,169 $1,475, 8.82% 211 177 $1,573,876 $1,375, -6.78% 212 176 $1,657,915 $1,411,5 2.65% 213 21 $1,692,776 $1,55, 6.62% 214 186 $2,19,97 $1,65, 9.63% 215 23 $2,91,426 $1,662,.73% 216 183 $2,66,383 $1,74, 4.69% 217 213 $2,129,171 $1,8, 3.45% 218 11 $2,29,913 $1,79, -.56% $2,4, Median Price Avg Price $2,, $1,6, Sales Price $1,2, $8, $4, $ 24 25 26 27 28 29 21 211 212 213 214 215 216 217 218 Year *Sales not included in the analysis are quitclaim deeds, trust transfers, timeshares, and partial sales. Data Source: Los Angeles 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

City LOS ANGELES COUNTY COMPARISON OF MEDIAN SALE PRICE TO PEAK PRICE Detached Single Family Residential Sales (1/1/1999-6/3/218) Peak Median Year 27 Peak Median Price Before Recession 48, Current Median Price 362,5 % Difference Between Peak and Curent -24.5% Current Sales Price at Price of Prior Year BELL GARDENS 25 BELL 27 494, 394,5-2.1% 26 LANCASTER 26 344, 275, -2.1% 25 PALMDALE 26 37, 31, -16.2% 25 HAWAIIAN GARDENS 26 445, 375, -15.7% 25 ROLLING HILLS 25 2,922,5 2,464,75-15.7% 25 ~BRADBURY 26 2,22, 1,88, -15.3% 26 HIDDEN HILLS 28 3,555, 3,125, -12.1% 28 SIGNAL HILL 27 725, 64, -11.7% 26 ~CUDAHY 27 54, 45, -1.7% 26 MAYWOOD 27 46, 415, -9.8% 26 LYNWOOD 26 453, 415, -8.4% 26 ~AVALON 26 979, 9, -8.1% 26 DOWNEY 26 62, 57, -8.1% 26 HUNTINGTON PARK 27 47, 435, -7.4% 26 LA HABRA HEIGHTS 26 1,, 927,5-7.3% 26 ~WESTLAKE VILLAGE 22 2,, 1,867,5-6.6% 22 CALABASAS 26 1,157,5 1,86,5-6.1% 26 SANTA FE SPRINGS 26 55, 477,5-5.4% 26 SOUTH GATE 27 465, 44, -5.4% 26 COMPTON 27 4, 38, -5.% 26 ARTESIA 27 51, 489,25-4.1% 26 PICO RIVERA 26 485, 466, -3.9% 26 SAN FERNANDO 26 5, 48,5-3.9% 26 AGOURA HILLS 27 935, 9, -3.7% 26 COMMERCE 27 446,5 43, -3.7% 27 NORWALK 26 482, 47, -2.5% 26 BELLFLOWER 26 53, 517, -2.5% 26 MONTEBELLO 26 55, 54, -1.8% 26 SOUTH EL MONTE 27 494,25 485,5-1.8% 27 PARAMOUNT 26 46, 452,5-1.6% 26 CARSON 26 53, 525, -.9% 26 LA PUENTE 26 45, 45,.% 26 POMONA 26 418, 42,.5% LOS ANGELES COUNTY UNINC 27 514, 52, 1.2% WHITTIER 26 545, 56, 2.8% BALDWIN PARK 26 445, 46, 3.4% GARDENA 26 519,75 539,5 3.8% ~City has less than 1 sales in any year. *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: Los Angeles 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

LOS ANGELES COUNTY COMPARISON OF MEDIAN SALE PRICE TO PEAK PRICE Detached Single Family Residential Sales (1/1/1999-6/3/218) City Peak Median Year Peak Median Price Before Recession Current Median Price % Difference Between Peak and Curent Current Sales Price at Price of Prior Year MALIBU 28 3,8, 3,95, 3.9% CERRITOS 26 75, 738, 4.7% AZUSA 27 475, 497,75 4.8% WEST COVINA 26 531,5 561, 5.6% LA MIRADA 26 557, 588, 5.6% SAN DIMAS 26 592, 626, 5.7% LAKEWOOD 26 54, 575, 6.5% SANTA CLARITA 26 555, 595, 7.2% COVINA 26 519, 557,75 7.5% INGLEWOOD 26 546, 59, 8.1% LAWNDALE 26 52, 565, 8.7% PALOS VERDES ESTATES 25 1,645, 1,79, 8.8% GLENDORA 27 55, 65, 1.% CLAREMONT 27 62, 685, 1.5% LA VERNE 27 625, 695, 11.2% DIAMOND BAR 26 657,5 735, 11.8% LOMITA 26 619,5 696, 12.3% HAWTHORNE 26 53, 6, 13.2% EL MONTE 26 455, 52, 14.3% ROLLING HILLS ESTATES 27 1,425, 1,63, 14.4% DUARTE 26 49, 562, 14.7% RANCHO PALOS VERDES 25 1,2, 1,39, 15.8% SIERRA MADRE 27 847,5 983,75 16.1% LONG BEACH 26 539, 63, 16.9% MONTEREY PARK 27 55, 65, 18.2% ROSEMEAD 26 495, 585, 18.2% TORRANCE 27 719, 85, 18.2% LOS ANGELES 27 63, 75, 19.% WALNUT 26 679, 811, 19.4% GLENDALE 27 77, 93, 2.8% MONROVIA 26 6, 729,5 21.6% SAN MARINO 21 1,565, 1,93, 23.3% BURBANK 26 664,75 838,75 26.2% PASADENA 27 756,75 959,75 26.8% SAN GABRIEL 26 6, 77, 28.3% ALHAMBRA 26 564, 75, 33.% LA CAÑADA FLINTRIDGE 27 1,35, 1,86, 33.8% SANTA MONICA 28 1,98, 2,687,5 35.7% TEMPLE CITY 27 59, 82, 39.% ~City has less than 1 sales in any year. *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: Los Angeles 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

218/19 ROLL SUMMARY Taxable Property Values Parcels TRAs Values Land Improvements Personal Property Fixtures Aircraft Total Value Secured Nonunitary Utilities Unsecured 5,223 132 4 3 4,83,437,563 2,613,63,851 338,75 1, 3,96,934 2,348,44 $7,444,48,164 $ $6,255,374 Exemptions Real Estate 8,44,31 Personal Property 27, Fixtures 9, Aircraft Homeowners* 23,522,8 Total Exemptions* $8,8,31 $ 1, $1, Total Net Value $7,435,68,133 $ $6,245,374 Combined Values Total Total Values $7,45,735,538 Total Exemptions $8,81,31 Net Total Values $7,441,925,57 * Note: Homeowner Exemptions are not included in Total Exemptions Data Source: Los Angeles County Assessor 218/19 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

218/19 USE CATEGORY SUMMARY BASIC PROPERTY VALUE TABLE Category Parcels Net Taxable Value Revenue Residential 5,93 $7,296,612,699 (98.%) $8,15,997.95 (98.%) Commercial 28 $39,37,97 (.5%) $43,362.41 (.5%) Institutional 5 $234,493 (.%) $26.51 (.%) Miscellaneous 3 $21,6 (.%) $23.33 (.%) Vacant 94 $78,136,921 (1.%) $86,796.55 (1.%) Exempt 26 $ (.%) $. (.%) Cross Reference [12] $21,637,917 (.3%) $24,36.11 (.3%) Unsecured [132] $6,245,374 (.1%) $6,937.55 (.1%) TOTALS 5,429 $7,441,925,57 $8,267,414.42 Net Taxable Value Revenue Others 2.% Others 2.% Residential 98.% Residential 98.% Data Source: Los Angeles County Assessor 218/19 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

SECURED SFR AND COMM/IND VALUE HISTORY Tax Year Entire Region Commercial-Industrial Single Family Residential Secured Values % Change Secured Values % Change Secured Values 1999/ 2,738,565,623 17,31,74 2,629,94,151 % Change 2/1 2,937,125,998 7.25% 18,75,479 9.83% 2,82,389,678 7.24% 21/2 3,144,372,888 7.6% 19,312,64 3.25% 3,22,37,517 7.16% 22/3 3,357,847,22 6.79% 19,139,878 -.89% 3,259,87,822 7.86% 23/4 3,623,833,584 7.92% 2,963,253 9.53% 3,52,466,623 8.% 24/5 3,93,23,33 7.71% 22,611,11 7.86% 3,798,557,52 7.9% 25/6 4,218,88,929 8.9% 24,289,673 7.42% 4,117,734,12 8.4% 26/7 4,573,891,747 8.41% 27,541,882 13.39% 4,459,34,646 8.29% 27/8 4,822,553,599 5.44% 26,76,885-3.3% 4,76,25,52 5.54% 28/9 5,89,863,826 5.54% 27,258, 2.6% 4,967,844,954 5.56% 29/1 5,196,88,642 2.9% 3,743,94 12.79% 5,8,341,771 2.26% 21/11 5,177,444,7 -.36% 3,671,12 -.24% 5,64,79,343 -.31% 211/12 5,318,89,948 2.72% 29,55,127-5.27% 5,25,912,171 2.79% 212/13 5,459,34,17 2.66% 28,894,291 -.55% 5,344,735,624 2.67% 213/14 5,745,77,14 5.25% 29,227,273 1.15% 5,619,658,825 5.14% 214/15 6,59,75,797 5.47% 3,883,536 5.67% 5,924,9,219 5.43% 215/16 6,426,743,21 6.6% 31,727,297 2.73% 6,277,815,92 5.96% 216/17 6,742,382,82 4.91% 35,318,521 11.32% 6,586,32,19 4.91% 217/18 7,7,455,441 4.87% 37,629,755 6.54% 6,896,95,13 4.72% 218/19 7,435,68,133 5.17% 39,37,97 3.74% 7,256,84,945 5.22% Entire Region Total Growth (2 years): $4,697,114,51 Entire Region Average Annual Growth: 5.69% 8,M Entire City Comm/Indus SFR 7,M 6,M 5,M Values 4,M 3,M 2,M 1,M M 1999/ 2/1 21/2 22/3 23/4 24/5 25/6 26/7 27/8 28/9 29/1 Roll Year 21/11 211/12 212/13 213/14 214/15 215/16 216/17 217/18 218/19 Data Source: Los Angeles County Assessor 1999/ to 218/19 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

RESIDENTIAL SUMMARY 218/19 Secured Roll Residential Housing Summary Description Parcels % of Parcels Taxable Value % of Total Value Approx. Units Single Family Residential Detached Attached 4,863 95.3% $6,84,783,14 93.3% 212 4.2% $452,57,841 6.2% 4,863 212 Single Family Residential Totals 5,75 99.5% $7,256,84,945 99.5% 5,75 Multi Unit Residential 2 Units 3 Units 4 Units 5+ Units 1.% $334,992.% 3.1% $2,378,164.% 3.1% $1,333,8.% 19.4% $35,724,798.5% Multi Unit Residential Totals 26.5% $39,771,754.5% 226 Totals 5,11 1.% $7,296,612,699 1.% 5,31 2 9 12 23 Exempt Parcels (Included Above) 8.2% $.% 8 Parcel Counts Taxable Values Detached 95.3% Attached 4.2% Others.4% 3 Units.1% 4 Units.1% Others.% Total: 1.% Detached 93.3% Attached 6.2% Others.5% 3 Units.% 4 Units.% Others.% Total: 1.% Data Source: Los Angeles 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

PROPERTY TAX DOLLAR BREAKDOWN $.3317 Los Angeles County $.296 Palos Verdes Peninsula Unified School District $.1554 Educational Aug. Fund Impound $.113 Tax District #1 $.754 Educational Rev. Augmentation Fund $.353 Palos Verdes Library Dist. Maint. $.311 LA City Community College District $.1413 South Bay Cities Sanitation Dist. Operating $.128 La County Flood Control Maint. $.86 County School Service Fund- Palos Verdes $.762 La County Ffw $.289 Childrens Instil. Tuition Fund $.182 La County Flood Dr. Imp. District Maint. $.146 County School Services $.93 Develop. Center Handicapped Minor- Palos Verdes $.32 La Community College Children's Center Fund $.19 La County West Vector Control Dist. $.18 Wtr Replenishment Dist. Of So. Cal $.12 La County Accum. Cap. Outlay $ 1. ATI (Annual Tax Increment) Ratios for Tax Rate Area 7112, Excluding Redevelopment Factors & Additional Debt Service Data Source: Los Angeles County Assessor 218/19 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

Agency 1.5 95.3 4.1 224.1 4. 57.6 85.4 67.8 3.7 95.6 7.31 4.21 3.1 4.15 66.25 95.7 85.2 61.1 35.9 1.2 218/19 WEIGHTED AVERAGE SHARES ATI Revenue by Agency for all NON SA TRAs within Selected Agency Agency Description Weighted Avg Share Los Angeles County 33.17653% Palos Verdes Peninsula Unified School District 2.965288% Educational Aug. Fund Impound 15.53551% Tax District #1 11.34838% Educational Rev. Augmentation Fund 7.53936% Palos Verdes Library Dist. Maint. 3.527592% LA City Community College District 3.19234% South Bay Cities Sanitation Dist. Operating 1.299396% LA County Flood Control Maint. 1.27655% County School Service Fund- Palos Verdes.86469% LA County FFW.761863% Childrens Instil. Tuition Fund.289149% LA County Flood DR. IMP. District Maint..181589% County School Services.145693% Co. Sanitation Dist. No. 5 Operating.12751% Develop. Center Handicapped Minor- Palos Verdes.9325% LA Community College Children's Center Fund.3215% LA County West Vector Control Dist..193% WTR Replenishment Dist. of So. Cal.17972% LA County Accum. Cap. Outlay.11747% Los Angeles County 33.2% Palos Verdes Peninsula Unified School District 21.% Educational Aug. Fund Impound 15.5% Tax District #1 11.3% Educational Rev. Augmentation Fund 7.5% Palos Verdes Library Dist. Maint. 3.5% LA City Community College District 3.1% South Bay Cities Sanitation Dist. Operating 1.3% LA County Flood Control Maint. 1.% County School Service Fund- Palos Verdes.9% Others 1.7% Total: 1.% 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: 218/19 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

LOS ANGELES COUNTY - 218/19 REPRESENTATIVE GENERAL LEVY SHARE ESTIMATE Estimate of City Representative Share of the General Levy City City Rate* Other Rates* Total Los Angeles.2629.2629 South Pasadena.24.24 San Marino.2364.2364 Pomona.2335.2335 Sierra Madre.2191.2191 Long Beach.2166.2166 Pasadena.219.219 Hermosa Beach.23.23 Burbank.1847.1847 La Verne.1816.1816 West Hollywood.1639.148.1787 Monrovia.1744.1744 Beverly Hills.1742.1742 Avalon.1665.1665 Redondo Beach.1654.1654 Alhambra.1443.199.1643 Monterey Park.1578.1578 Covina.1541.1541 Azusa.1492.1492 Manhattan Beach.1462.1462 San Fernando.1456.1456 Inglewood.149.149 Downey.1397.1397 Santa Monica.1393.1393 West Covina.1351.31.1382 Glendale.1357.1357 Calabasas.472.82.1292 Torrance.122.122 Baldwin Park.952.254.126 Claremont.1142.1142 Palos Verdes Estates.113.113 Lynwood.113.113 Gardena.1116.1116 San Gabriel.164.164 Culver City.143.143 Palmdale.663.374.137 Lomita.666.361.126 Irwindale.19.19 La Puente.658.349.17 Compton.14.14 La Habra Heights.14.14 San Dimas.658.335.993 Montebello.986.986 El Monte.984.984 Glendora.982.982 Arcadia.96.96 City City Rate* Other Rates* Total Hawthorne.948.948 La Mirada.671.276.947 Rosemead.668.271.939 Temple City.666.271.937 Norwalk.663.263.925 Duarte.689.233.922 Bell Gardens.92.92 Pico Rivera.667.225.892 Westlake Village.639.24.879 Cerritos.68.193.873 Hidden Hills.588.22.88 Industry.794.794 Huntington Park.735.735 Vernon.728.728 Whittier.717.717 Malibu.74.74 Commerce.679.679 Signal Hill.678.678 Carson.674.674 Paramount.672.672 La Cañada Flintridge.67.67 Rolling Hills Estates.669.669 South El Monte.667.667 Bellflower.666.666 Artesia.665.665 Lawndale.662.662 Lancaster.661.661 Cudahy.659.659 Rolling Hills.649.649 Maywood.639.639 Rancho Palos Verdes.637.637 El Segundo.632.632 Santa Fe Springs.625.625 South Gate.615.615 Bradbury.614.614 Agoura Hills.585.585 Lakewood.584.584 Hawaiian Gardens.56.56 Bell.537.537 Walnut.52.52 Diamond Bar.519.519 Santa Clarita.164.271.434 County Average:.15.61.1111 *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: Los Angeles County Assessor 218/19 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

General Fund Summary - Non SA TRAs Roll SEC UTIL UNS PROPERTY TAX REVENUE - 218/19 Estimated Revenue, Assuming Zero Delinquency, County Admin Fees Not Deducted Non SA TRAS Taxable Value $7,435,68,133 $ $6,245,374 General Fund Rate Revenue Debt Rate.11348385 $8,45,916.31.. $...11338857 $7,59.7. Debt Revenue Total Revenue TOTAL $7,441,925,57.11348377 $8,412,976.1. $. $8,412,976.1 + Aircraft $ $. $. $. $. $. $. $8,45,916.31 $. Total Before Adjustment for AB-8 Growth $7,441,925,57.11348377 $8,412,976.1. $. $8,412,976.1 + Adjustment for AB-8 Growth (Net effective Total Revenue Loss/Gain) -$145,561.59 $-145,561.59 Non SA TRAs Total $7,441,925,57.1119241 $8,267,414.42 $8,267,414.42 SB 2557 County Admin Fees (Prior Year Actual Amount) -$16,57.23 $7,59.7 Unitary Revenue (Prior Year) $54,162.2 VLF Revenue (Estimated) $1,523,668.3 Homeowner Exemption revenues are included in the revenue model used for this report Data Source: Los Angeles County Assessor 218/19 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

Parcel NONRESIDENTIAL NEW CONSTRUCTION 217/18 TO 218/19 TAX YEARS - IN PARCEL NUMBER ORDER Use Category Owner Prior Year Improvements Current Year Improvements Percent Change Parcels Listed +.% + This calculation reflects the 218/19 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 218/19 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 2.% Assessors's Inflation Adjustment Actual Change in Non-Residential Valuation Change in Total Assessed Value = Alternate 219/2 Appropriations Limit Factor 366,59,582.% Includes taxable primary parcels with known nonresidential use codes, no prior lien year transfers, and improvement value increases greater than 2.% Change in Total Assessed Value is the assessed value change of the locally assessed secured and unsecured tax rolls. Data Source: Los Angeles County Assessor 218/19 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

MEDIAN SFR SALES PRICE INCREASE Percent change in median price June 217 - June 218 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

PROPOSITION 13 INFLATION ADJUSTMENTS Roll Year Assessor Applied Inflation Adjustments Prop 13 Cumulative Adjustments Statewide Actual CCPI Annual Statewide Actual CPI Cumulative Prop 13 Taxes on Property* $1, (CPI Cap) Property Taxes W/O Prop 13* $1, (Actual CPI) 1975-76.% 1.%.% 1.% $1, $1, 1976-77 2.% 12.% 6.25% 16.25% $1,2 $1,63 1977-78 2.% 14.4% 7.17% 113.87% $1,4 $1,139 1978-79 2.% 16.12% 8.23% 123.24% $1,61 $1,232 1979-8 2.% 18.24% 9.83% 135.35% $1,82 $1,354 198-81 2.% 11.41% 17.32% 158.8% $1,14 $1,588 1981-82 2.% 112.62% 7.13% 17.12% $1,126 $1,71 1982-83 2.% 114.87% 11.14% 189.7% $1,149 $1,891 1983-84 1.% 116.2% 1.% 19.96% $1,16 $1,91 1984-85 2.% 118.34% 5.% 2.51% $1,183 $2,5 1985-86 2.% 12.7% 5.1% 21.74% $1,27 $2,17 1986-87 2.% 123.12% 4.4% 22.1% $1,231 $2,2 1987-88 2.% 125.58% 2.95% 224.62% $1,256 $2,246 1988-89 2.% 128.9% 5.16% 236.21% $1,281 $2,362 1989-9 2.% 13.65% 4.73% 247.38% $1,37 $2,474 199-91 2.% 133.27% 4.758% 259.15% $1,333 $2,592 1991-92 2.% 135.93% 6.4% 275.74% $1,359 $2,757 1992-93 2.% 138.65% 3.4% 284.12% $1,387 $2,841 1993-94 2.% 141.42% 3.44% 293.89% $1,414 $2,939 1994-95 2.% 144.25% 2.31% 3.68% $1,443 $3,7 1995-96 1.19% 145.97% 1.194% 34.27% $1,46 $3,43 1996-97 1.11% 147.59% 1.115% 37.66% $1,476 $3,77 1997-98 2.% 15.54% 2.399% 315.5% $1,55 $3,15 1998-99 2.% 153.55% 2.81% 321.6% $1,536 $3,216 1999-1.853% 156.4% 1.853% 327.56% $1,564 $3,276 2-1 2.% 159.53% 3.214% 338.9% $1,595 $3,381 21-2 2.% 162.72% 4.172% 352.19% $1,627 $3,522 22-3 2.% 165.97% 3.215% 363.52% $1,66 $3,635 23-4 2.% 169.29% 2.459% 372.46% $1,693 $3,725 24-5 1.867% 172.45% 1.867% 379.41% $1,725 $3,794 25-6 2.% 175.9% 3.665% 393.31% $1,759 $3,933 26-7 2.% 179.42% 4.596% 411.39% $1,794 $4,114 27-8 2.% 183.1% 2.269% 42.73% $1,83 $4,27 28-9 2.% 186.67% 3.38% 434.95% $1,867 $4,349 29-1 2.% 19.4% 3.477% 45.7% $1,94 $4,51 21-11 -.237% 189.95% -.237% 449.% $1,899 $4,49 211-12.753% 191.38%.753% 452.38% $1,914 $4,524 212-13 2.% 195.21% 2.889% 465.45% $1,952 $4,655 213-14 2.% 199.11% 3.81% 479.79% $1,991 $4,798 214-15.454% 2.1%.454% 481.97% $2, $4,82 215-16 1.998% 24.1% 1.998% 491.6% $2,4 $4,916 216-17 1.525% 27.12% 1.525% 499.1% $2,71 $4,991 217-18 2.% 211.26% 2.619% 512.17% $2,113 $5,122 218-19 2.% 215.49% 2.962% 527.34% $2,155 $5,273 Totals $67,273 $138,918 Annual Adjustment 18% 16% 14% 12% 1% 8% 6% 4% 2% % Assessor Applied Inflation Adjustment California Consumer Price Index 6% 5% 4% 3% 2% 1% Cummulative Adj. -2% 1975 1978 1981 1984 1987 199 1993 1996 1999 22 25 28 211 214 217 % *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

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