PUBLIC HEARING Stockton City Council June 6, 2006 Proposed Formation City of Stockton Westlake Villages Community Facilities District No. 2006-2 PUBLIC HEARING Stockton City Council June 6, 2006

Prior Action On April 25, 2006 Council adopted resolutions to form this district, including: Approval of the boundary map Intention to form a Community Facilities District (CFD) and Levy a Special Tax Declaring the necessity to incur bonded indebtedness within the proposed CFD Setting a Pubic Hearing of protest for June 6, 2006 If the CFD is approved and when bonds are eventually issued they will not be debt of the City

The Project A.G. Spanos Companies, Pulte Home Corporation (Del Webb), and FCB Homes / Frontiers Community Builders (the Developers) are proposing to develop an 668+ acre master plan development project known as Westlake Villages. 2,622 unit residential community 2 community parks 11 neighborhood parks 2 schools 1 fire station The proposed CFD will require one or more bond issues not-to-exceed $35 million to fund construction of major roads, traffic signals, bridges, sanitary sewer, water, drainage systems, storm water basin, lakes and pump station, parks, public utilities, public access and bike path improvements

Proposed District Boundaries

Special Tax Formula Each taxable parcel within the proposed CFD will pay an annual special tax based on the Special Tax Formula Debt service (principal and interest) Administrative expenses Replenishment of the reserve fund The maximum annual Special Tax in the proposed project area is: $500 to $1,400 per single-family residence depending on the lot size $6,000 per acre for land uses other than single-family residences Maximum annual tax for single family residence: - less than 4,000 sf = $500 - 4,000 sf – 4,999 sf = $750 - 5,000 sf – 5,999 sf = $1,000 - greater than 6,000 sf = $1,400

The Public Hearing Tonight’s election is by landowner Election conducted by a hand delivered ballot At the conclusion of tonight’s hearing, the City Clerk will announce the results. Protests should be limited to persons owning real property within the proposed CFD. Protests are limited to: Boundaries of the proposed district Types of public facilities within the proposed district

Bonded Indebtedness Bonds associated with the formation of the CFD are not being sold at this time. It is anticipated that Council will consider directing the execution of certain financing documents in November or December 2006 The details associated with the sale of bonds will be presented and reviewed by Council at that time

Recommended Actions At the conclusion of the Public Hearing adopt three resolutions: Form the CFD and to levy a special tax Intent to incur bonded indebtedness within the CFD in an amount not-to-exceed $35 million. Conduct a special election and declare the results of the election Adopt an Ordinance levying a special tax within the City of Stockton Westlake Villages Community Facilities District No. 2006-2

Formation Team Co-Bond Counsel The Developer Best Best & Krieger The Law Offices of Timothy Hachman The Developer Pulte Homes