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05/23/2016 EXHIBIT A �OCAL GOALS AND POLICIES CITY OF REDWOOD CITY STATEMENT OF LOCAL GOALS AND POLICIES CONCERNING THE USE OF THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED Pursuant to Section 53312.7 of the California Government Code, the City Council of the City of Redwood City (the "City Council") hereby states its goals and policies concerning the use of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the "Act") in providing adequate public infrastructure improvements permitted to be financed pursuant to the Act for property within the City of Redwood City (the "City") and for the refunding of existing debt on land within the City. In addition, the Act may be used to provide for the maintenance, repair, reconstruction and replacement of any of the foregoing infrastructure improvements. The following goals and policies shall apply to each community facilities district (a "CFD") hereafter formed by the City. Any policy or goal stated herein may be supplemented or amended or deviated from, and new goals and policies may be added hereto, from time to time upon a determination by the City Council that such supplement, amendment, deviation or addition is necessary or desirable; and any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with the Act or any other laws of the State of California or federal laws of the United States of America. I. Prioritv that Various Kinds of Public Facilities Shall have for Financina Through the Use of the Act. It is the policy of the City to give first priority to the financing, through the use of the Act, of public infrastructure improvements directly benefiting the City, which improvements may include, but are not limited to, streets, roads, libraries, parks open space and for the refunding of existing debt on land within the CFD. It is also the policy of the City to assist in the financing of other public facilities when to do so will, in the sole discretion of the City Council, acting as the legislative body of the affected CFD, result in a savings to residents or property owners within the City boundaries,for example, by reducing costs of bond issuance and/or administrative expenses; provided that such assistance does not interfere with the financing of public infrastructure improvements directly benefiting the City. I I. Credit Qualitv to be Reauired of Bond Issues, Includina Criteria to be Used in Evaluatina the Credit Qualitv. It is the policy of the City to refrain from the issuance of any CFD bonds unless at the time of issuance of any CFD bonds, (i) special tax revenues from that CFD are reasonably expe�ted to provide at least one hundred ten percent (110%) debt service coverage for each year of the term of such bonds; and (ii) such CFD establishes, and covenants to cause special taxes to be levied in an amount sufficient to maintain, for the term of such bonds (provided, however, that depletion may occur to pay debt service in the last two (2) years of such term), a reserve fund securing such bonds in an amount equaling the lowest of (i) ten percent (10%) of the original proceeds of such bonds, or (ii) the largest amount, for any bond year during the term of such bonds, of principal and interest payable on such bonds, or (iii) one hundred finrenty-five percent ATTY/RE50.0046/CC RESO APPROVING SALE OF BONDS REV:05-24-16 JS Page 7 of 8