PROPOSED MARCH LANE / HOLMAN ASSESSMENT DISTRICT 2003-01 PUBLIC HEARING Stockton City Council November 4, 2003

BACKGROUND February 2003, Award Homes, Inc. requested that the City initiate the formation of the March Lane / Holman Assessment District Project No. 2003-01 August 26, 2003, Council adopted Resolution No. 03-0503 Stating an intention to order improvements in the proposed District; Accepting a petition of property owners; and Approving a proposed boundary map

BACKGROUND (cont.) Additionally, Council adopted Resolution No. 03-0504, which: Preliminarily approved an Engineer’s Report; and Scheduled a Public Hearing for protests and Property Owner Assessment Ballot tabulation to be held on November 4, 2003.

DISTRICT LOCATION Blossom Ranch Community Area Total land area of 92± acres Boundaries include: North – KB Home Camera Estates Community East – Holman Road West – APN 092-12-5; and South – Lot lines extending approx. 500 feet south of the centerline of March Lane.

PROPOSED IMPROVEMENTS In general, the work within the proposed District consists of: Street improvements and related infrastructure located within the street rights-of-way and/or public easements; Storm drainage lines; Sanitary sewer and domestic water lines; and Landscaping, masonry walls and street lighting systems.

ESTIMATED COST It is estimated that the public improvements to be financed with bond proceeds will total approximately $3.1 million including: Design engineering and surveying; Cost and expense of construction of improvements; District formation and financing costs, capitalized interest, legal consultants and administrative support.

SOURCES & USES OF FUNDS Schedules showing a Summary of Bond Terms, Sources and Uses of Funds, Cost of Issuance and Debt Service are provided in the staff report. Par amount of the bonds is projected to be $3.1MM; Underwriter proposes an average coupon rate of 5.84%; A reserve fund will be established in the amount of approximately $110,345; The issue includes capitalized interest of approximately $112,286; The cost of issuance is approximately $96,290, with an Underwriter’s Discount est. to be $46,500.

Assessment & Annual Payments The project area is expected to be subdivided into 296 single-family residential lots. The assessment lien per residential unit is projected to be approximately $10,500.00; The annual payment per residential unit is projected to be approximately $780.00; The monthly payment per residential unit is projected to be approximately $65.00.

PUBLIC HEARING Government Code §53753(d) requires Council to conduct a public hearing prior to the formation of the proposed District and levying of an assessment. A notice of public hearing and Assessment Ballots were mailed to all property owners within the proposed District. All returned ballots will be tabulated at the end of the public hearing to determine if owners are in favor of the proposed assessment.

RECOMMENDATION At the conclusion of the public hearing, adopt two Resolutions, which trigger the following actions: Overrule protests; Approve a Final Engineer’s Report; Levy assessments & order acquisition of improvements; Approve the issuance of Limited Obligation Improvement Bonds; Approve the form of the Fiscal Agent Agreement, the Bond Purchase Contract, the Preliminary Official Statement, and the Continuing Disclosure Agreement, and Authorize execution of related documents in respect to the issuance, sale and delivery of said bonds.