DAVID TAUSSIG AND ASSOCIATES, INC. DBA DTA

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dta w .FinanceDTA.com C Optional Task: CFD Formation SECTION IV SCOPE OF WORK The central focus of DTA's responsibilities associated with its CFD formation and bond issuance Scope of Work would be to assist the City in structuring the financing program and negotiating the terms of the CFD, as well as preparing an RMA to establish a tax formula for the CFD. In developing the RMA, much of DTA's work would involve imparting information to City staff regarding the allocations of special taxes and preparing detailed quantitative analyses prior to the actual preparation of the RMA for the CFD. DTA's objectives related to these issues shall be as follows: • The special tax formula is structured so it follows the City's approved CFD policies; • There are timely phasings of bond issuances and escrow releases, if applicable, by the CFD based on adequate land value -to -public lien ratios and debt service coverages; • The City's and bondholders' interests are protected through prepayment options and bondholders and the City are protected against changes in development plans through a variety of mechanisms, including backup taxes and one-time special taxes; • Cash flow analyses are prepared that identify the level of public financing required each year; • Appropriate release mechanisms are established so public monies are only expended as improvements are built and/or acquired; • Existing and projected overlapping debt is analyzed to ensure a reasonable total public debt burden on the Project; and • If appropriate, multiple public financing mechanisms (e.g., impact fee revenues) are evaluated in cash flow analyses to complement CFD financing and maximize the feasibility of the Project. DTA has pioneered many innovations now utilized in CFD formations throughout the State. The City's Special Tax Consultant should be able to evaluate the long-term impact that changes in land use, product mix, and absorption have on special tax rates, debt service coverage, and parity bond issues. DTA's proformas have been honed from years of experience modeling cash flows for new districts. Issuers should not make the mistake of refunding or issuing bonds without a proforma offering these features: • "What if" analyses to evaluate changing development scenarios; • Special tax rate projections; • Revenue forecasting; • Debt service coverage calculations; • Parity bond analyses; and • Bond refunding feasibility. DTA prepares a series of such proformas on all of its CFD financings, enabling both issuers and property owners to make informed decisions regarding district formations and bond sales. City of Santa Ana September 8, 2023 Proposal for Consultant Services Related to the Evaluation of an EIFD and a CFD 18