HomeMy WebLinkAboutAD 05-1 BONDLOGISTIX 6.30.08
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds INTERIM ARBITRAGE REBATE ANALYSIS April 16, 2009 For the Computation
Period: December 21, 2005 – June 30, 2008 2711 N. Haskell Avenue Suite 2600 SW, Lockbox 35 Dallas, TX 75204 PH 214 989 2700 FX 214 989 2712 www.blxgroup.com
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Interim Arbitrage Rebate Analysis April 16, 2009 Page i 61210464
TABLE OF CONTENTS Transmittal Letter Opinion of Orrick, Herrington & Sutcliffe LLP Notes and Assumptions The Bonds Schedule A -Summary of Rebate Analysis Schedule B -Sources & Uses of
Funds Schedule C -Annual Debt Service & Production Schedule D -Semi-Annual Debt Service Schedule E -Arbitrage Yield Calculation Rebate Computations Schedule F -Improvement Fund 1. Remaining
Balance Analysis 2. Net Nonpurpose Investments Cash Flow Schedule G -Special Reserve Fund 1. Remaining Balance Analysis 2. Net Nonpurpose Investments Cash Flow Schedule H -Investment
Earnings Fund 1. Remaining Balance Analysis 2. Net Nonpurpose Investments Cash Flow
61210464 April 16, 2009 City of Bakersfield 1501 Truxtun Avenue Bakersfield, California 93301 Re: $15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited
Obligation Improvement Bonds Interim Arbitrage Rebate Analysis Rebate Liability for the Period December 21, 2005 through June 30, 2008 Ladies and Gentlemen: This report (the "Report"),
which is being delivered to you pursuant to our engagement letter, consists of computations and the assumptions on which such computations are based with respect to the rebate liability
of the City of Bakersfield (the "Issuer") in connection with the above-captioned issue (the "Bonds") for the above-referenced period (the "Interim Computation Period"). The computations
herein are based on an analysis of existing laws, regulations, and rulings. The Department of the Treasury ("Treasury") may publish additional regulations and supplement, amend, or interpret
such laws, regulations, and rulings from time to time, with the result that the amount of rebate liability described in the Report may be subject to adjustment under such future pronouncements.
The scope of our engagement was limited to preparing the Report based on information supplied to us. In accordance with our engagement letter (which is incorporated herein by reference),
our engagement did not include determination of whether securities allocable to proceeds of the Bonds were purchased at fair market value within the meaning of the Treasury Regulations,
or an audit or review of the investments acquired with gross proceeds or the payment of debt service on the Bonds. With your permission, we have relied entirely on the information provided
to us without independent verification, and we express no opinion as to the completeness, accuracy, or suitability of such information for purposes of calculating rebate liability with
respect to the Bonds. We have undertaken no responsibility to audit or review the tax-exempt status of interest on the Bonds or any other aspect of the Bond program. We are under no
obligation to consider any information obtained by us pursuant to this engagement for any purpose other than determining such rebate liability. Also, we have no obligation to update
this Report because of any events occurring, changes in existing laws, regulations, or rulings or interpretations thereof, or data or information received, subsequent to the date hereof.
City of Bakersfield April 16, 2009 Page 2 61210464 For the Interim Computation Period December 21, 2005 through June 30, 2008: Allowable Yield on Investments: 5.130196% Cumulative Rebate
Liability: $0.00 Ninety percent (90%) of the Cumulative Rebate Liability (reduced by any applicable computation date credits) is required to be rebated to the United States no later
than 60 days after December 21, 2010 (the end of the fifth Bond Year). Such Cumulative Rebate Liability is subject to change, however, pursuant to computations undertaken up to and including
December 21, 2010. Additionally, should the Bonds be retired prior to December 21, 2010, 100% of the Cumulative Rebate Liability (reduced by any applicable computation date credits)
as of such retirement date will become due and payable within 60 days. This Report is not to be used, circulated, quoted, referred to, or relied upon by any other person without our
express written permission. Very truly yours, Bond Logistix LLC
ORRICK, HERRINGTON & SUTCLIFFE LLP 2711 NORTH HASKELL AVENUE LOCKBOX #35, SUITE 2600 SW DALLAS, TX 75204 tel 214-989-2700 fax 214-989-2712 WWW.ORRICK.COM 61210464 April 16, 2009 City
of Bakersfield 1501 Truxtun Avenue Bakersfield, California 93301 Re: $15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds
Interim Arbitrage Rebate Analysis Rebate Liability for the Period December 21, 2005 through June 30, 2008 Ladies and Gentlemen: This opinion is being delivered to you pursuant to our
engagement to provide certain legal services and accompanies a report (the "Report") prepared on the date hereof by Bond Logistix LLC ("BLX") consisting of computations and the assumptions
on which such computations are based with respect to the rebate liability of the City of Bakersfield (the "Issuer") in connection with the abovecaptioned issue (the "Bonds") for the
above-referenced period (the "Interim Computation Period"). In particular, we note that our opinion is specifically subject to the notes and assumptions contained in the Report. The
opinion expressed herein is based on an analysis of existing laws, regulations, and rulings. The Department of the Treasury ("Treasury") may publish additional regulations and supplement,
amend, or interpret such laws, regulations, and rulings from time to time, with the result that the amount of rebate liability described in the Report and in this opinion may be subject
to adjustment under such future pronouncements. The scope of our engagement was limited to preparing this opinion, based on information supplied to us by you, BLX, and US Bank. In accordance
with our engagement letter (which is incorporated herein by reference), our engagement did not include independent determination of which funds were subject to or exempt from rebate,
determination of whether securities allocable to proceeds of the Bonds were purchased at fair market value within the meaning of the Treasury Regulations, or an audit or review of the
investments acquired with gross proceeds or the payment of debt service on the Bonds. With your permission, we have relied entirely on information provided by you and BLX without independent
verification, and we express no opinion as to the completeness, accuracy, or suitability of such information for purposes of calculating rebate liability with respect to the Bonds. We
have undertaken no responsibility to audit or review the tax-exempt status of interest on the Bonds or any other aspect of the Bond program. No opinion is expressed on any matter other
than rebate liability to the
City of Bakersfield April 16, 2009 Page 2 61210464 extent set forth below, and we are under no obligation to consider any information obtained by us pursuant to this engagement for any
purpose other than determining such rebate liability. Also, we have no obligation to update this opinion because of any events occurring, changes in existing laws, regulations, or rulings
or interpretations thereof, or data or information received, subsequent to the date hereof. Based on and subject to the foregoing, and subject to the notes and assumptions contained
in the Report, in our opinion, the computations shown in the Report were performed in accordance with applicable federal law and regulations and reflect the following: For the Interim
Computation Period December 21, 2005 through June 30, 2008: Allowable Yield on Investments: 5.130196% Cumulative Rebate Liability: $0.00 This opinion is not to be used, circulated, quoted,
referred to, or relied upon by any other person without our express written permission. Very truly yours, ORRICK, HERRINGTON & SUTCLIFFE LLP
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Interim Arbitrage Rebate Analysis April 16, 2009 Page 1 61210464
NOTES AND ASSUMPTIONS 1. The Dated Date of the Bonds is December 21, 2005. 2. The Issue Date of the Bonds is December 21, 2005. 3. The Interim Computation Period is December 21, 2005
to June 30, 2008. 4. Consistent with Section 1.5 of the Tax Certificate, the Bonds constitute one issue for federal taxation purposes and are not treated as part of any other issue of
governmental obligations. 5. As set forth in Section 1.6 of the Tax Certificate, the end of the first Bond Year with respect to the Bonds for purposes of determining installment computation
dates is December 21, 2006. Subsequent Bond Years end on each successive December 21 until no Bonds remain outstanding. 6. Computations of yield are based on a 360-day year and semiannual
compounding. 7. For debt service, yield, and investment cash flow purposes, all payments and receipts with respect to the Bonds and proceeds thereof are accurately set forth in the schedules
contained herein. No early redemptions of principal have taken place or been provided for. We are not aware of any hedging arrangement (such as an interest rate swap) that would affect
the yield on the Bonds. For purposes of determining yield on the Bonds, the issue price is based on the offering prices and/or yields contained of the Bonds as set forth in the Official
Statement. 8. The purchase price of each investment is at fair market value, exclusive of brokerage commissions, administrative expenses, or similar expenses and is representative of
an arm's length transaction which did not reduce the rebate amount required to be paid to the United States. 9. The Bonds are not, in whole or in part, "refunding" or "refunded" bonds.
10. The only funds established relating to the Bonds are the Redemption, Improvement, Special Reserve, Investment Earnings, and Rebate Funds. 11. The Redemption Fund constitutes a bona
fide debt service fund and is not taken into account in determining Cumulative Rebate Liability pursuant to Section 148(f)(4)(A)(ii) of the Internal Revenue Code (the "Code"). 12. Through
the Interim Computation Period, the Rebate Fund did not contain gross proceeds of the Bonds.
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Interim Arbitrage Rebate Analysis April 16, 2009 Page 2 61210464
13. The Bonds may qualify as "construction bonds" under Section 148(f)(4)(C) of the Code. The Issuer did not elect to pay the penalty in lieu of rebate as described in Section 148(f)(4)(C)(vii)
of the Code. As there is no rebate liability with respect to the Bonds, we have not determined whether the Issuer has complied with the requirements of the Two-Year Expenditure Exception.
14. The Bonds are eligible for the "18-Month Expenditure Exception" under Section 1.148-7(d)(1)(i) of the Treasury Regulations if gross proceeds of the Bonds are expended for the governmental
purpose of the issue within eighteen months of the Issue Date (see Section 5.4(b) of the Tax Certificate). As there is no rebate liability with respect to the Bonds, we have not determined
whether the Issuer has complied with the requirements of the 18-Month Expenditure Exception. 15. The applicable computation date credits were taken into account when calculating the
Cumulative Rebate Liability with respect to the Bonds. See Schedule A herein. Pursuant to Proposed Treasury Regulations, dated September 26, 2007, for any Bond Year ending on or after
September 26, 2007, a computation date credit in the amount of $1,400 or higher (as adjusted in the future for inflation as described in said Regulations) is applicable. We have assumed
the Issuer has elected to apply this provision of the Proposed Regulations to the Bonds. 16. As set forth in Sections 3.8 and 4.3 of the Tax Certificate, we call to the Issuer's attention
that investment proceeds of the Bonds in the Investment Earnings Fund unspent by the one-year period beginning on the date of receipt may not be invested at a yield that is materially
higher than the yield on the Bonds. If such amounts are invested at a yield above the yield on the Bonds after the applicable temporary period, a yield reduction payment to the United
States may be required to be made pursuant to Treasury Regulations Section 1.148-5(c).
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule A -Summary of Rebate Analysis Issue Date: December 21,
2005 Rebate Computation Date: June 30, 2008 Fund Computation Internal Reference Fund Current Date Gross Rate of Excess Number Description Fund Status Valuation Earnings Return Earnings
1 Improvement Fund Active $9,054,799.03 $1,262,137.67 4.437313% ($208,975.74) 2 Special Reserve Fund Active $1,309,495.00 $141,118.76 4.328432% ($27,537.46) 3 Investment Earnings Fund
Active $1,485,480.24 $82,223.81 3.970370% ($24,777.48) Totals: $11,849,774.27 $1,485,480.24 ($261,290.69) Rebate Summary Arbitrage Yield: 5.130196% Return on Investments: 4.398823% Shortfall
%: -0.731373% Actual Gross Earnings: 1,485,480.24 Allowable Gross Earnings: 1,749,288.97 Excess Earnings: ($261,290.69) FV of Computation Date Credit (12/21/06): ($1,080.31) FV of Computation
Date Credit (12/21/07): ($1,437.73) Cumulative Rebate Liability: ($263,808.73) 61210464.xls Page 1 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule B -Sources & Uses of Funds Bond Prior Bond Other Sources
of Funds Proceeds Proceeds Sources Total Par Amount 15,595,000.00 + Original Issue Premium 17,654.30 -Original Issue Discount 0.00 Net Production 15,612,654.30 15,612,654.30 Accrued
Interest 0.00 0.00 Total Sources: 15,612,654.30 0.00 0.00 15,612,654.30 Uses of Funds Improvement Fund 13,613,174.49 13,613,174.49 Special Reserve Fund 1,309,495.00 1,309,495.00 Redemption
Fund1 541,832.31 541,832.31 Underwriter's Discount 148,152.50 148,152.50 Total Uses: 15,612,654.30 0.00 0.00 15,612,654.30 1 Deposited into the Improvement Fund. 61210464.xls Page 2
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$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Schedule C -Annual Debt Service & Production Period Par Debt Ending Coupon Amount Yield Price Interest
Service Production 09/02/06 541,832.31 541,832.31 09/02/07 4.000% 530,000 3.500% 100.812 777,130.00 1,307,130.00 534,303.60 09/02/08 4.000% 550,000 3.800% 100.503 755,930.00 1,305,930.00
552,766.50 09/02/09 4.000% 575,000 4.000% 100.000 733,930.00 1,308,930.00 575,000.00 09/02/10 4.500% 595,000 4.200% 101.261 710,930.00 1,305,930.00 602,502.95 09/02/11 4.500% 625,000
4.400% 100.493 684,155.00 1,309,155.00 628,081.25 09/02/12 4.550% 650,000 4.550% 100.000 656,030.00 1,306,030.00 650,000.00 09/02/13 4.700% 680,000 4.700% 100.000 626,455.00 1,306,455.00
680,000.00 09/02/14 4.800% 715,000 4.800% 100.000 594,495.00 1,309,495.00 715,000.00 09/02/15 4.900% 745,000 4.900% 100.000 560,175.00 1,305,175.00 745,000.00 09/02/16 5.000% 785,000
5.000% 100.000 523,670.00 1,308,670.00 785,000.00 09/02/17 5.100% 820,000 5.100% 100.000 484,420.00 1,304,420.00 820,000.00 09/02/18 5.150% 865,000 5.150% 100.000 442,600.00 1,307,600.00
865,000.00 09/02/19 5.200% 910,000 5.200% 100.000 398,052.50 1,308,052.50 910,000.00 09/02/20 5.250% 955,000 5.250% 100.000 350,732.50 1,305,732.50 955,000.00 09/02/21 5.300% 1,005,000
5.300% 100.000 300,595.00 1,305,595.00 1,005,000.00 09/02/22 5.350% 1,060,000 5.350% 100.000 247,330.00 1,307,330.00 1,060,000.00 09/02/23 5.400% 1,115,000 5.400% 100.000 190,620.00
1,305,620.00 1,115,000.00 09/02/24 5.400% 1,175,000 5.400% 100.000 130,410.00 1,305,410.00 1,175,000.00 09/02/25 5.400% 1,240,000 5.400% 100.000 66,960.00 1,306,960.00 1,240,000.00 15,595,000
9,776,452.31 25,371,452.31 15,612,654.30 61210464.xls Page 3 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule D -Semi-Annual Debt Service Principal Debt Date Coupon
Amount Interest Service 03/02/06 153,267.31 153,267.31 09/02/06 388,565.00 388,565.00 03/02/07 388,565.00 388,565.00 09/02/07 4.000% 530,000 388,565.00 918,565.00 03/02/08 377,965.00
377,965.00 09/02/08 4.000% 550,000 377,965.00 927,965.00 03/02/09 366,965.00 366,965.00 09/02/09 4.000% 575,000 366,965.00 941,965.00 03/02/10 355,465.00 355,465.00 09/02/10 4.500% 595,000
355,465.00 950,465.00 03/02/11 342,077.50 342,077.50 09/02/11 4.500% 625,000 342,077.50 967,077.50 03/02/12 328,015.00 328,015.00 09/02/12 4.550% 650,000 328,015.00 978,015.00 03/02/13
313,227.50 313,227.50 09/02/13 4.700% 680,000 313,227.50 993,227.50 03/02/14 297,247.50 297,247.50 09/02/14 4.800% 715,000 297,247.50 1,012,247.50 03/02/15 280,087.50 280,087.50 09/02/15
4.900% 745,000 280,087.50 1,025,087.50 03/02/16 261,835.00 261,835.00 09/02/16 5.000% 785,000 261,835.00 1,046,835.00 03/02/17 242,210.00 242,210.00 09/02/17 5.100% 820,000 242,210.00
1,062,210.00 03/02/18 221,300.00 221,300.00 09/02/18 5.150% 865,000 221,300.00 1,086,300.00 03/02/19 199,026.25 199,026.25 09/02/19 5.200% 910,000 199,026.25 1,109,026.25 03/02/20 175,366.25
175,366.25 09/02/20 5.250% 955,000 175,366.25 1,130,366.25 03/02/21 150,297.50 150,297.50 09/02/21 5.300% 1,005,000 150,297.50 1,155,297.50 03/02/22 123,665.00 123,665.00 09/02/22 5.350%
1,060,000 123,665.00 1,183,665.00 03/02/23 95,310.00 95,310.00 09/02/23 5.400% 1,115,000 95,310.00 1,210,310.00 03/02/24 65,205.00 65,205.00 09/02/24 5.400% 1,175,000 65,205.00 1,240,205.00
03/02/25 33,480.00 33,480.00 09/02/25 5.400% 1,240,000 33,480.00 1,273,480.00 15,595,000 9,776,452.31 25,371,452.31 61210464.xls Page 4 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule E -Arbitrage Yield Calculation Total Discount Present Issue
Factor @Value as of Date Payments 5.130196% 12/21/05 03/02/06 153,267.31 0.99005944 151,743.74 Issue Price Calculation 09/02/06 388,565.00 0.96529859 375,081.25 03/02/07 388,565.00 0.94115699
365,700.67 + Par Amount of Issue 15,595,000.00 09/02/07 918,565.00 0.91761916 842,892.84 + Accrued Interest 0.00 03/02/08 377,965.00 0.89467000 338,153.95 +/-Original Issue Prem/(Disc)
17,654.30 09/02/08 927,965.00 0.87229478 809,459.03 03/02/09 366,965.00 0.85047916 312,096.08 Issue Price: 15,612,654.30 09/02/09 941,965.00 0.82920913 781,085.98 03/02/10 355,465.00
0.80847106 287,383.16 -Qualified Guarantee 0.00 09/02/10 950,465.00 0.78825163 749,205.59 03/02/11 342,077.50 0.76853788 262,899.52 Adjusted Issue Price: 15,612,654.30 09/02/11 967,077.50
0.74931716 724,647.77 03/02/12 328,015.00 0.73057714 239,640.26 Present Value Result: 15,612,654.30 09/02/12 978,015.00 0.71230580 696,645.76 Variance: 0.00 03/02/13 313,227.50 0.69449142
217,533.81 Arbitrage Yield: 5.130196% 09/02/13 993,227.50 0.67712256 672,536.75 03/02/14 297,247.50 0.66018809 196,239.26 09/02/14 1,012,247.50 0.64367714 651,560.58 03/02/15 280,087.50
0.62757912 175,777.07 09/02/15 1,025,087.50 0.61188371 627,234.34 03/02/16 261,835.00 0.59658082 156,205.74 09/02/16 1,046,835.00 0.58166066 608,902.73 03/02/17 242,210.00 0.56711364
137,360.59 09/02/17 1,062,210.00 0.55293043 587,328.23 03/02/18 221,300.00 0.53910194 119,303.26 09/02/18 1,086,300.00 0.52561929 570,980.23 03/02/19 199,026.25 0.51247383 101,995.75
09/02/19 1,109,026.25 0.49965714 554,132.88 03/02/20 175,366.25 0.48716098 85,431.59 09/02/20 1,130,366.25 0.47497735 536,898.36 03/02/21 150,297.50 0.46309842 69,602.53 09/02/21 1,155,297.50
0.45151658 521,635.97 03/02/22 123,665.00 0.44022439 54,440.35 09/02/22 1,183,665.00 0.42921462 508,046.32 03/02/23 95,310.00 0.41848019 39,885.35 09/02/23 1,210,310.00 0.40801422 493,823.70
03/02/24 65,205.00 0.39781001 25,939.20 09/02/24 1,240,205.00 0.38786099 481,027.14 03/02/25 33,480.00 0.37816080 12,660.82 09/02/25 1,273,480.00 0.36870320 469,536.15 25,371,452.31
15,612,654.30 61210464.xls Page 5 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule F1 -Improvement Fund Fund 1 Remaining Balance Analysis
Summary-Fund 1 Gross Earnings: $1,262,137.67 Internal Rate of Return: 4.437313% Excess Earnings: ($208,975.74) Computation Security Par Maturity Settlement Settlement Accreted Accrued
Date Type Amount Coupon Date Date Price Yield Price Interest Value Money Market 9 ,054,799.03 N/A N/A N/A 100.000 Variable 100.000 0.00 9,054,799.03 Value as of June 30, 2008: 9,054,799.03
61210464.xls Page 6 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule F2 -Improvement Fund Fund 1 Net Nonpurpose Investments
Cash Flow Net Rebate Calculations IRR Calculations Nonpurpose Muni-Days/Investments Computation FV Factor @FV As Of FV Factor @FV As Of Date Description Cash Flow Date 5.130196% 06/30/08
4.437313% 06/30/08 12/21/05 Deposit (14,155,006.80) 909 1.13644383 (16,086,370.14) 1.11719081 (15,813,843.57) 12/30/05 NPR -w/d 16,629.15 900 1.13500558 18,874.18 1.11596570 18,557.56
01/31/06 NPR -w/d 48,450.08 870 1.13022453 54,759.47 1.11189169 53,871.24 02/28/06 NPR -w/d 46,524.24 842 1.12578039 52,376.08 1.10810271 51,553.64 03/14/06 NPR -w/d 503,076.21 826 1.12324873
565,079.72 1.10594337 556,373.80 03/31/06 NPR -w/d 51,759.97 810 1.12072277 58,008.58 1.10378824 57,132.05 04/28/06 NPR -w/d 51,283.50 782 1.11631599 57,248.59 1.10002687 56,413.23 05/31/06
NPR -w/d 54,384.66 750 1.11130089 60,437.72 1.09574384 59,591.66 06/30/06 NPR -w/d 53,837.18 720 1.10661970 59,577.28 1.09174366 58,776.40 07/31/06 NPR -w/d 58,161.68 690 1.10195822
64,091.74 1.08775808 63,265.84 08/31/06 NPR -w/d 59,196.87 660 1.09731638 64,957.70 1.08378704 64,156.80 09/29/06 NPR -w/d 57,346.26 631 1.09284786 62,670.74 1.07996216 61,931.79 10/04/06
NPR -w/d 391,876.28 626 1.09207926 427,959.96 1.07930406 422,953.66 10/31/06 NPR -w/d 57,917.65 600 1.08809128 63,019.69 1.07588842 62,312.93 11/30/06 NPR -w/d 55,946.87 570 1.08350785
60,618.87 1.07196072 59,972.85 12/29/06 NPR -w/d 57,455.43 541 1.07909556 61,999.90 1.06817757 61,372.60 01/31/07 NPR -w/d 57,366.84 510 1.07439884 61,634.87 1.06414828 61,046.82 02/28/07
NPR -w/d 51,950.52 482 1.07017421 55,596.11 1.06052199 55,094.67 03/30/07 NPR -w/d 57,560.36 450 1.06536640 61,322.87 1.05639278 60,806.35 04/03/07 NPR -w/d 3,503,098.55 447 1.06491678
3,730,508.43 1.05600649 3,699,294.81 04/18/07 NPR -w/d 502,361.80 432 1.06267151 533,845.57 1.05407717 529,528.10 04/30/07 NPR -w/d 40,848.35 420 1.06087870 43,335.14 1.05253625 42,994.37
05/31/07 NPR -w/d 39,375.73 390 1.05640991 41,596.91 1.04869380 41,293.08 06/21/07 NPR -w/d 9,946.64 369 1.05329295 10,476.73 1.04601244 10,404.31 06/29/07 NPR -w/d 37,648.51 361 1.05210796
39,610.30 1.04499277 39,342.42 07/31/07 NPR -w/d 39,270.90 330 1.04752870 41,137.39 1.04105093 40,883.01 08/31/07 NPR -w/d 36,146.10 300 1.04311614 37,704.58 1.03725041 37,492.56 09/28/07
NPR -w/d 35,863.78 272 1.03901452 37,262.99 1.03371578 37,072.96 10/31/07 NPR -w/d 35,712.73 240 1.03434670 36,939.34 1.02969094 36,773.07 11/29/07 NPR -w/d 189,848.29 211 1.03013460
195,569.29 1.02605697 194,795.16 11/30/07 NPR -w/d 30,504.20 210 1.02998966 31,419.01 1.02593189 31,295.23 12/31/07 NPR -w/d 29,043.85 180 1.02565098 29,788.85 1.02218657 29,688.23 01/31/08
NPR -w/d 24,731.53 150 1.02133057 25,259.07 1.01845491 25,187.95 02/29/08 NPR -w/d 18,270.38 121 1.01717148 18,584.11 1.01486060 18,541.89 03/31/08 NPR -w/d 13,981.95 90 1.01274428 14,160.14
1.01103243 14,136.20 04/30/08 NPR -w/d 15,451.08 60 1.00847824 15,582.08 1.00734149 15,564.51 05/30/08 NPR -w/d 15,140.69 30 1.00423017 15,204.74 1.00366403 15,196.17 06/30/08 NPR -w/d
14,376.63 0 1.00000000 14,376.63 1.00000000 14,376.63 06/30/08 Balance1 9,054,799.03 0 1.00000000 9,054,799.03 1.00000000 9,054,799.03 Earnings: 1,262,137.67 Excess Earnings: (208,975.74)
(0.00) 2 See Schedule F1 -Remaining Balance Analysis. 61210464.xls Page 7 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule G1 -Special Reserve Fund Fund 2 Remaining Balance Analysis
Summary -Fund 2 Gross Earnings: $141,118.76 Internal Rate of Return: 4.328432% Excess Earnings: ($27,537.46) Computation Security Par Maturity Settlement Settlement Accreted Accrued
Date Type Amount Coupon Date Date Price Yield Price Interest Value Money Market 1,309,495.00 N/A N/A N/A 100.000 Variable 100.000 0.00 1,309,495.00 Value as of June 30, 2008: 1,309,495.00
61210464.xls Page 8 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule G2 -Special Reserve Fund Fund 2 Net Nonpurpose Investments
Cash Flow Net Rebate Calculations IRR Calculations Nonpurpose Muni-Days/Investments Computation FV Factor @FV As Of FV Factor @FV As Of Date Description Cash Flow Date 5.130196% 06/30/08
4.328432% 06/30/08 12/21/05 Deposit (1,309,495.00) 909 1.13644383 (1,488,167.51) 1.11418928 (1,459,025.29) 12/30/05 NPR -w/d 1,538.38 900 1.13500558 1,746.07 1.11299711 1,712.21 01/31/06
NPR -w/d 4,482.17 870 1.13022453 5,065.86 1.10903240 4,970.87 02/28/06 NPR -w/d 4,304.01 840 1.12546362 4,844.01 1.10508182 4,756.28 03/31/06 NPR -w/d 4,890.48 810 1.12072277 5,480.87
1.10114531 5,385.13 04/28/06 NPR -w/d 4,919.12 782 1.11631599 5,491.29 1.09748388 5,398.65 05/31/06 NPR -w/d 5,216.58 750 1.11130089 5,797.19 1.09331430 5,703.36 06/30/06 NPR -w/d 5,164.07
720 1.10661970 5,714.66 1.08941971 5,625.84 07/31/06 NPR -w/d 5,578.88 690 1.10195822 6,147.69 1.08553899 6,056.09 08/31/06 NPR -w/d 5,678.17 660 1.09731638 6,230.75 1.08167210 6,141.92
09/29/06 NPR -w/d 5,500.66 631 1.09284786 6,011.38 1.07794719 5,929.42 10/31/06 NPR -w/d 5,703.44 600 1.08809128 6,205.86 1.07397958 6,125.38 11/30/06 NPR -w/d 5,525.03 570 1.08350785
5,986.41 1.07015386 5,912.63 12/29/06 NPR -w/d 5,674.00 541 1.07909556 6,122.79 1.06646862 6,051.14 01/31/07 NPR -w/d 5,665.26 510 1.07439884 6,086.75 1.06254326 6,019.58 02/28/07 NPR
-w/d 5,130.37 480 1.06987309 5,488.84 1.05875828 5,431.82 03/30/07 NPR -w/d 5,684.37 450 1.06536640 6,055.94 1.05498678 5,996.94 04/30/07 NPR -w/d 5,471.95 420 1.06087870 5,805.08 1.05122872
5,752.27 05/31/07 NPR -w/d 5,571.54 390 1.05640991 5,885.83 1.04748404 5,836.10 06/29/07 NPR -w/d 5,329.01 361 1.05210796 5,606.69 1.04387687 5,562.83 07/31/07 NPR -w/d 5,562.68 330
1.04752870 5,827.07 1.04003466 5,785.38 08/31/07 NPR -w/d 5,120.06 300 1.04311614 5,340.82 1.03632986 5,306.07 09/28/07 NPR -w/d 5,080.07 272 1.03901452 5,278.27 1.03288395 5,247.12
10/31/07 NPR -w/d 5,058.67 240 1.03434670 5,232.42 1.02895980 5,205.17 11/30/07 NPR -w/d 4,325.28 210 1.02998966 4,454.99 1.02529445 4,434.69 12/31/07 NPR -w/d 4,200.29 180 1.02565098
4,308.03 1.02164216 4,291.19 01/31/08 NPR -w/d 3,576.65 150 1.02133057 3,652.94 1.01800288 3,641.04 02/29/08 NPR -w/d 2,642.24 120 1.01702837 2,687.23 1.01437656 2,680.23 03/31/08 NPR
-w/d 2,022.05 90 1.01274428 2,047.82 1.01076316 2,043.81 04/30/08 NPR -w/d 2,234.52 60 1.00847824 2,253.46 1.00716263 2,250.53 05/30/08 NPR -w/d 2,189.63 30 1.00423017 2,198.89 1.00357492
2,197.46 06/30/08 NPR -w/d 2,079.13 0 1.00000000 2,079.13 1.00000000 2,079.13 06/30/08 Balance 1 1,309,495.00 0 1.00000000 1,309,495.00 1.00000000 1,309,495.00 Earnings: 141,118.76 Earnings:
(27,537.46) 0.00 1 See Schedule G1 -Remaining Balance Analysis. 61210464.xls Page 9 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule H1 -Investment Earnings Fund Fund 3 Remaining Balance Analysis
Summary-Fund 3 Gross Earnings: $82,223.81 Internal Rate of Return: 3.970370% Excess Earnings: ($24,777.48) Computation Security Par Maturity Settlement Settlement Accreted Accrued Date
Type Amount Coupon Date Date Price Yield Price Interest Value Money Market 1,485,480.24 N/A N/A N/A 100.000 Variable 100.000 0.00 1,485,480.24 Value as of June 30, 2008: 1,485,480.24
61210464.xls Page 10 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule H2 -Investment Earnings Fund Fund 3 Net Nonpurpose Investments
Cash Flow Net Rebate Calculations IRR Calculations Nonpurpose Muni-Days/Investments Computation FV Factor @FV As Of FV Factor
@FV As Of Date Description Cash Flow Date 5.130196% 06/30/08 3.970370% 06/30/08 12/30/05 Trn frm Imprv (16,629.15) 900 1.13500558 (18,874.18) 1.10327924 (18,346.60) 12/30/05 Trn frm
S Resv ( 1,538.38) 900 1.13500558 (1,746.07) 1.10327924 (1,697.26) 01/31/06 Trn frm Imprv (48,450.08) 870 1.13022453 (54,759.47) 1.09967056 (53,279.13) 01/31/06 Trn frm S Resv ( 4,482.17)
870 1.13022453 (5,065.86) 1.09967056 (4,928.91) 02/28/06 Trn frm Imprv (46,524.24) 840 1.12546362 (52,361.34) 1.09607368 (50,993.99) 02/28/06 Trn frm S Resv ( 4,304.01) 840 1.12546362
(4,844.01) 1.09607368 (4,717.51) 03/31/06 Trn frm Imprv (51,759.97) 810 1.12072277 (58,008.58) 1.09248857 (56,547.18) 03/31/06 Trn frm S Resv ( 4,890.48) 810 1.12072277 (5,480.87) 1.09248857
(5,342.79) 04/28/06 Trn frm Imprv (51,283.50) 782 1.11631599 (57,248.59) 1.08915304 (55,855.58) 04/28/06 Trn frm S Resv ( 4,919.12) 782 1.11631599 (5,491.29) 1.08915304 (5,357.67) 05/31/06
Trn frm Imprv (54,384.66) 750 1.11130089 (60,437.72) 1.08535348 (59,026.58) 05/31/06 Trn frm S Resv ( 5,216.58) 750 1.11130089 (5,797.19) 1.08535348 (5,661.83) 06/30/06 Trn frm Imprv
(53,837.18) 720 1.10661970 (59,577.28) 1.08180344 (58,241.25) 06/30/06 Trn frm S Resv ( 5,164.07) 720 1.10661970 (5,714.66) 1.08180344 (5,586.51) 07/31/06 Trn frm Imprv (58,161.68) 690
1.10195822 (64,091.74) 1.07826500 (62,713.70) 07/31/06 Trn frm S Resv ( 5,578.88) 690 1.10195822 (6,147.69) 1.07826500 (6,015.51) 08/31/06 Trn frm Imprv (59,196.87) 660 1.09731638 (64,957.70)
1.07473814 (63,621.13) 08/31/06 Trn frm S Resv ( 5,678.17) 660 1.09731638 (6,230.75) 1.07473814 (6,102.55) 09/29/06 Trn frm Imprv (57,346.26) 631 1.09284786 (62,670.74) 1.07133980 (61,437.33)
09/29/06 Trn frm S Resv ( 5,500.66) 631 1.09284786 (6,011.38) 1.07133980 (5,893.08) 10/31/06 Trn frm Imprv (57,917.65) 600 1.08809128 (63,019.69) 1.06771898 (61,839.77) 10/31/06 Trn
frm S Resv ( 5,703.44) 600 1.08809128 (6,205.86) 1.06771898 (6,089.67) 11/30/06 Trn frm Imprv (55,946.87) 570 1.08350785 (60,618.87) 1.06422661 (59,540.15) 11/30/06 Trn frm S Resv (
5,525.03) 570 1.08350785 (5,986.41) 1.06422661 (5,879.88) 12/29/06 Trn frm Imprv (57,455.43) 541 1.07909556 (61,999.90) 1.06086152 (60,952.25) 12/29/06 Trn frm S Resv ( 5,674.00) 541
1.07909556 (6,122.79) 1.06086152 (6,019.33) 01/31/07 Trn frm Imprv (57,366.84) 510 1.07439884 (61,634.87) 1.05727611 (60,652.59) 01/31/07 Trn frm S Resv ( 5,665.26) 510 1.07439884 (6,086.75)
1.05727611 (5,989.74) 02/28/07 Trn frm Imprv (51,950.52) 480 1.06987309 (55,580.46) 1.05381790 (54,746.39) 02/28/07 Trn frm S Resv ( 5,130.37) 480 1.06987309 (5,488.84) 1.05381790 (5,406.48)
03/30/07 Trn frm Imprv (57,560.36) 450 1.06536640 (61,322.87) 1.05037100 (60,459.73) 03/30/07 Trn frm S Resv ( 5,684.37) 450 1.06536640 (6,055.94) 1.05037100 (5,970.70) 04/30/07 Trn
frm Imprv (40,848.35) 420 1.06087870 (43,335.14) 1.04693538 (42,765.58) 04/30/07 Trn frm S Resv ( 5,471.95) 420 1.06087870 (5,805.08) 1.04693538 (5,728.78) 05/31/07 Trn frm Imprv (39,375.73)
390 1.05640991 (41,596.91) 1.04351099 (41,089.01) 05/31/07 Trn frm S Resv ( 5,571.54) 390 1.05640991 (5,885.83) 1.04351099 (5,813.96) 06/29/07 Trn frm Imprv (37,648.51) 361 1.05210796
(39,610.30) 1.04021139 (39,162.41) 06/29/07 Trn frm S Resv ( 5,329.01) 361 1.05210796 (5,606.69) 1.04021139 (5,543.30) 07/31/07 Trn frm Imprv (39,270.90) 330 1.04752870 (41,137.39) 1.03669578
(40,711.98) 07/31/07 Trn frm S Resv ( 5,562.68) 330 1.04752870 (5,827.07) 1.03669578 (5,766.81) 08/31/07 Trn frm Imprv (36,146.10) 300 1.04311614 (37,704.58) 1.03330488 (37,349.94) 08/31/07
Trn frm S Resv ( 5,120.06) 300 1.04311614 (5,340.82) 1.03330488 (5,290.58) 09/28/07 Trn frm Imprv (35,863.78) 272 1.03901452 (37,262.99) 1.03015006 (36,945.07) 09/28/07 Trn frm S Resv
( 5,080.07) 272 1.03901452 (5,278.27) 5,278.27) 1.03015006 (5,233.23) 10/31/07 Trn frm Imprv (35,712.73) 240 1.03434670 (36,939.34) 1.02655633 (36,661.13) 10/31/07 Trn frm S Resv ( 5,058.67)
240 1.03434670 (5,232.42) 1.02655633 (5,193.01) 11/30/07 Trn frm Imprv (30,504.20) 210 1.02998966 (31,419.01) 1.02319860 (31,211.85) 11/30/07 Trn frm S Resv ( 4,325.28) 210 1.02998966
(4,454.99) 1.02319860 (4,425.62) 12/31/07 Trn frm Imprv (29,043.85) 180 1.02565098 (29,788.85) 1.01985185 (29,620.42) 12/31/07 Trn frm S Resv ( 4,200.29) 180 1.02565098 (4,308.03) 1.01985185
(4,283.67) 01/31/08 Trn frm Imprv (24,731.53) 150 1.02133057 (25,259.07) 1.01651605 (25,140.00) 01/31/08 Trn frm S Resv ( 3,576.65) 150 1.02133057 (3,652.94) 1.01651605 (3,635.72) 02/29/08
Trn frm Imprv (18,270.38) 120 1.01702837 (18,581.49) 1.01319116 (18,511.39) 02/29/08 Trn frm S Resv ( 2,642.24) 120 1.01702837 (2,687.23) 1.01319116 (2,677.09) 03/31/08 Trn frm Imprv
(13,981.95) 90 1.01274428 (14,160.14) 1.00987715 (14,120.05) 03/31/08 Trn frm S Resv ( 2,022.05) 90 1.01274428 (2,047.82) 1.00987715 (2,042.02) 04/30/08 Trn frm Imprv (15,451.08) 60
1.00847824 (15,582.08) 1.00657397 (15,552.65) 04/30/08 Trn frm S Resv ( 2,234.52) 60 1.00847824 (2,253.46) 1.00657397 (2,249.21) 05/30/08 Trn frm Imprv (15,140.69) 30 1.00423017 (15,204.74)
1.00328160 (15,190.38) 61210464.xls Page 11 EMH
$15,595,000 City of Bakersfield Assessment District No. 05-1 (City in the Hills) Limited Obligation Improvement Bonds Schedule H2 -Investment Earnings Fund Fund 3 Net Nonpurpose Investments
Cash Flow Net Rebate Calculations IRR Calculations Nonpurpose Muni-Days/Investments Computation FV Factor @FV As Of FV Factor @FV As Of Date Description Cash Flow Date 5.130196% 06/30/08
3.970370% 06/30/08 05/30/08 Trn frm S Resv ( 2,189.63) 30 1.00423017 (2,198.89) 1.00328160 (2,196.82) 06/30/08 Trn frm Imprv (14,376.63) 0 1.00000000 (14,376.63) 1.00000000 (14,376.63)
06/30/08 Trn frm S Resv ( 2,079.13) 0 1.00000000 (2,079.13) 1.00000000 (2,079.13) 06/30/08 Balance 1 1,485,480.24 0 1.00000000 1,485,480.24 1.00000000 1,485,480.24 Earnings: 82,223.81
Excess Earnings: (24,777.48) 0.00 1 See Schedule H1 -Remaining Balance Analysis. 61210464.xls Page 12 EMH