Casitas Municipal Water District Community Facilities District No Casitas Municipal Water District Community Facilities District No. 2013-1 (OJAI) 2017 Special Tax Bonds Bond Financing |April 2017

Financing Overview Eminent domain action resulted in a Settlement Agreement with Golden State Water for the acquisition of its Ojai Water System Approved by Water District Board on April 12, 2017 Judgment amount = $34,481,628 Due on or before June 15, 2017 Judgment Amount includes $913,000 of Golden State ending accounts receivable/billed water charges; will be applied to Ojai Water System capital when collected by Casitas Municipal Water District

Financing Plan Finance Judgment Amount (per Settlement Agreement) Finance estimated Year 1-3 net improvement costs Levy at 90% of Maximum Special Tax in years 1-3 to generate surplus Special Tax for additional capital improvements and reserve for unanticipated capital repairs

Required Facilities Funding Judgment Amount Improvements Years 1-3 Total Bond Proceeds $34,481,628 8,074,000 $42,555,628 Special Tax in Excess of Debt Service Years 1-3 1,572,000 GS Final Billings to Be Collected by CMWD 913,000 $10,559,000 $45,040,628 The Water District will undertake a system evaluation to determine if additional capital improvements are needed depending on the condition of the Ojai Water System assets; the CFD may issue additional bonds for additional major capital improvements to the Ojai Water System Source: Casitas Municipal Water District and Harrell & Company Advisors, LLC

2017 Special Tax Bonds Judgment Amount $34,481,628 Improvements 8,074,000 Subtotal Project Fund 42,555,628 Remainder Acquisition Legal Expenses (Series A) 100,000 Series B Capitalized Interest to September 1, 2017 482,000 Costs of Issuance 495,000 Bond Insurance/Surety Bond Premiums* 467,372 Total Financed Costs $44,100,000 * Reserve Requirement = 75% of MADS for Series B Bonds; Any Additional Bonds require Reserve Fund at 75% of Lesser of 3-Prong Test Source: Harrell & Company Advisors, LLC

CFD 2013-1 Special Tax Bonds $60,000,000 Maximum Authorized Special Tax Bonds District expects to issue $44,100,000 for initial acquisition and improvements IRS limits issue size to what is reasonably expected to be spent in 3 years

Rate and Method of Apportionment RMA has two tax tiers – a low initial tax rate and a higher second tier tax rate after “2nd Bond Issuance” RMA contemplated one initial series of bonds to pay pre- acquisition legal expenses in connection with eminent domain action and a second series to pay for acquisition Special Taxes levied in 2015/16 and 2016/17 were sufficient to pay legal costs, so no 1st Series of bonds was issued 2017 Bonds include a $100,000 Series A Bond so that $40.5 Million Series B Bond can satisfy “2nd Bond Issuance” requirement and trigger higher tax rate 2017 Series A Bonds mature September 1, 2017 (will be paid from 2016/17 special tax collections)

General Special Tax Levy Information 6 classes of residential property + Commercial + Industrial Levy only on Developed Property (building permit) A parcel of Developed Property may contain more than one Land Use Class or Unit and the Maximum Special Tax levied on such parcel is the sum of the Maximum Special Tax for all Land Use Classes/Units located on that parcel. 2% annual increase in Maximum Special Tax

General Special Tax Levy Information Land Parcel Maximum Special Tax 2017/18 Use Square Approx 2016/17 Expected 90% Class Description Footage Acreage Prior to Issuance After 2nd Issuance Max Tax Levy 1 SF Detached Unit 43,560 SF or Larger 1 Acre+ $366.12 $2,265.53 $2,039 2 => 22,000 SF and < 43,560 SF ½-1 Acre 215.42 1,336.80 1,203 3 => 10,000 SF and < 22,000 SF ¼-½ Acre 129.46 802.08 722 4 Less than 10,000 SF <¼ Acre 83.84 519.57 468 5 Condominium Unit N/A 71.10 440.55 396 6 MF Attached Unit 60.48 377.77 340 7 Commercial $0.0531 per SF Floor Area $0.3280 per SF Floor Area $0.30 PSF 8 Industrial $0.0276 per SF Floor Area $0.1721 per SF Floor Area $0.15 PSF

2017/18 Projected Effective Tax Rates Class 1 Class 2 Class 3 Class 4 Class 5 Class 6 Average AV Less $7,000 HOX (1) $959,300 $678,200 $438,500 $309,200 $482,200 $133,200 Ad Valorem (1.0698%) $10,263 $7,255 $4,691 $3,308 $5,159 $1,425 CFD 2013-1 (2) 2,039 1,203 722 468 396 340 OVSD Sewer Charge 695 All Other Assessments 125 124 103 100 84 54 Total Taxes $13,122 $9,277 $6,211 $4,571 $6,334 $2,514 % of Net AV 1.37% 1.42% 1.48% 1.31% 1.89% (1) Average assessed value for an occupied dwelling unit on a parcel containing only one unit, excluding multifamily attached units for Land Use Class 6, based on assessed value information provided by the Ventura County Assessor as of January 1, 2016. Average assessed value for a Land Use Class 6 unit represents equivalent value per unit with a multifamily structure, based on assessed value information provided by the Ventura County Assessor as of January 1, 2016. (2) Assumed 90% of Maximum Special Tax Source: David Taussig & Associates, Inc.

Estimated Prepayment Prior to Bond Issuance RMA contains a formula for prepayment of the entire special tax obligation prior to issuance of Bonds CFD Public Facilities Costs Per RMA $42,250,000 Construction Index Change from 7/1/14 to 7/1/16 5.48% Inflated Facilities Costs $44,567,371 Total District Class 1 Residential Unit Class 2 Residential Unit Class 3 Residential Unit Class 4 Residential Unit Class 5 Residential Unit Class 6 Residential Unit $44,567,371 $35,020 $20,664 $12,398 $8,031 $6,810 $5,840 Source: David Taussig & Associates, Inc.

Projected Special Tax Levy Year Levy at 90% Max Tax CFD and Bonds Admin Costs Debt Service Year 1-3 Capital Improvements Available For Future Improvements* 2018 $2,594,838 $(50,000) $(2,030,000) $514,838   2019 2,646,734 (51,000) (2,073,000) 522,734 2020 2,699,669 (52,020) (2,113,000) 534,649 2021 2,753,663 (53,060) (2,156,000) $544,603 2022 2,808,736 (54,120) (2,201,000) 553,616 2023 2,864,911 (55,200) (2,243,000) 566,711 2024 2,922,209 (56,300) (2,288,000) 577,909 2025 2,980,653 (57,430) (2,332,000) 591,223 2026 3,040,267 (58,580) (2,382,000) 599,687 2027 3,101,072 (59,750) (2,429,000) 612,322 2028 3,163,093 (60,950) (2,476,000) 626,143 2029 3,226,355 (62,170) (2,525,000) 639,185 2030 3,290,882 (63,410) (2,575,000) 652,472 2031 3,356,700 (64,680) (2,630,000) 662,020 2032 3,423,834 (65,970) (2,680,000) 677,864 2033 3,492,311 (67,290) (2,735,000) 690,021 2034 3,562,157 (68,640) (2,787,000) 706,517 2035 3,633,400 (70,010) (2,845,000) 718,390 2036 3,706,068 (71,410) (2,899,000) 735,658 2037 3,780,189 (72,840) (2,957,000) 750,349 2038 3,855,793 (74,300) (3,021,000) 760,493 2039 3,932,908 (75,790) (3,078,000) 779,118 2040 4,011,566 (77,310) (3,138,000) 796,256 2041 4,091,798 (78,860) (3,201,000) 811,938 2042 4,173,634 (80,440) (3,270,000) 823,194 2043 4,257,106 (82,050) (3,335,000) 840,056 2044 4,342,248 (83,690) (3,400,000) 858,558 2045 4,429,093 (85,360) (3,466,000) 877,733 2046 4,517,674 (87,070) (3,537,000) 893,604 2047 4,608,028 (88,810) (3,607,000) 912,218 * May or May Not be Levied Depending on System Improvement Costs; Determined after System Evaluation Source: Harrell & Company Advisors, LLC

Timing * Interested buyers can call Piper Jaffray & Co. 800-552-0614 Date Action Tuesday, April 25 Received Credit Rating Wednesday, April 26 Board Approval of Financing Documents Thursday, April 27 Receive Bond Insurance Commitment Friday, April 28 Post Preliminary Official Statement Wednesday, May 10 Bond Pricing* Wednesday, May 31 Bond Closing Thursday, June 15 Deadline to Pay Judgment Amount * Interested buyers can call Piper Jaffray & Co. 800-552-0614