City of Port Hueneme Tax Allocation Refunding Bond Analysis Joseph Yew Director 50 California Street, Suite 2650 San Francisco, California 94111 Phone: 415.263.1144 Joseph.Yew@hilltopsecurities.com Phillip Curls Director 16000 Ventura Blvd., Suite 1100 Encino, California 91436 Phone: 310.401.8053 Phillip.Curls@hilltopsecurities.com Tax Allocation Refunding Bond Analysis City of Port Hueneme

Current RDA Tax Allocation Debt Original Issue Amount $3,320,000 $12,210,000   Issue Description R-76 Project 1993 Tax Allocation Refunding Bonds Central Community Project 2004 Subordinate Tax Allocation Refunding Bonds Underlying Ratings (M/SP/F) Baa3 / A- / - Dated Date May 13, 1993 April 8, 2004  Total Aggregate Debt Service of R-76 & Central Community Center Projects  Year Principal Coupon Interest Combined DS 2018 175,000 6.500% 79,950 1,190,000 4.150% 343,950 1,365,000 423,900 1,788,900 2019 185,000 68,575 1,240,000 4.250% 294,565 1,425,000 363,140 1,788,140 2020 195,000 56,550 1,295,000 4.300% 241,865 1,490,000 298,415 1,788,415 2021 210,000 43,875 1,350,000 4.350% 186,180 1,560,000 230,055 1,790,055 2022 225,000 30,225 1,410,000 4.400% 127,455 1,635,000 157,680 1,792,680 2023 240,000 15,600 1,470,000 4.450% 65,415 1,710,000 81,015 1,791,015 2024 2025 2026 2027 TOTALS $1,230,000 $294,775 $7,955,000 $1,259,430 $9,185,000 $1,554,205 $10,739,205 Currently Refundable 1

Preliminary Interest Rate Comparison Short term interest rates in June & early July have remained relatively low. This low range of rates is beneficial to City as it creates an opportunity for refunding savings. 2

Preliminary Refunding Result Summary (Public Sale) Cash Flow savings - $2.4 million Less upfront cash flow savings than Private Sale Largest savings - 2023 (Release of Reserve Fund) City Share of Residual Dist. = 16% $43,300/year savings until 2022 $182,400 savings in 2023 Savings go to General Fund 3

Preliminary Refunding Result Summary (Private Sale) Cash Flow savings - $2.4 million More upfront cash flow savings than Public Requires less staff time & public disclosure City Share of Residual Dist. = 16% $64,000/year savings until 2023 Savings go to General Fund DSRF Release 4

Schedule July 24 July 31 August 7 September 5 September 11 October 9 • Bank Placement RFP from Placement Agent Selection of Bond Counsel July 24 Receive Bank Placement Bids July 31 Placement Bank Selection Distribution of Bond Documents August 7 SA Board Approval of Refunding Transaction September 5 Oversight Board Approval Subordination Letter Requests Distributed September 11 Distribution of Final FCR October 9 Final Bank Credit Approval October 16 Deadline for Subordination Letter Approval October 23 Deadline for DOF Approval November 13 Execute Term Sheet November 20 Close Refunding Bond Transaction November 27 5

Refunding Findings/Recommendations Public Sale Cash Savings of $2.4M to all of the RPTTF taxing entities Savings/revenues to General Fund $43,000 annual cash flow until 2022 $182,000 in 2023 due to Reserve Fund release Private Sale Cash Savings of $2.4M to all of the RPTTF taxing entities Savings/revenues to General Fund $64,000 annual cash flow through 2023 Less staff time and public disclosure Private Sale results in $21,000 more in Annual Cash Flow Savings through 2022 to the General Fund 6