Stone &Youngberg
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NEW ISSUE NOT RATED In the opinion of Rutan & Tucker LLP, Costa Mesa, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income and earnings. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "LEGAL MATTERS - Tax Exemption." $2,580,000 COMMUNITY FACILITIES DISTRICT NO. 2003-4 OF THE MENIFEE UNION SCHOOL DISTRICT 2005 SPECIAL TAX BONDS Dated: Date of Delivery Due: September 1, as shown on inside cover Authority for Issuance. The bonds captioned above (the "Bonds") are being issued under the Mello-Roos Community Facilities Act of 1982 (the "Act") and a Fiscal Agent Agreement, dated as of June 1, 2005, by and between the Community Facilities District No. 2003-4 of the Menifee Union School District (the "Community Facilities District") and U.S. Bank National Association, as fiscal agent (the "Fiscal Agent"). The Board of Education (the "Board") of the Menifee Union School District (the "School District"), acting as legislative body of the Community Facilities District, and the eligible landowner voters in the Community Facilities District, have authorized the issuance of bonds in an aggregate principal amount not to exceed $4,000,000. The Bonds are the only series of bonds to be issued under this authorization. See "THE BONDS -Authority for Issuance." Security and Sources of Payment. The Bonds are payable from proceeds of Net Special Taxes (as defined herein) levied on property within the Community Facilities District according to the rate and method of apportionment of special tax approved by the Board and the eligible landowner voters in the Community Facilities District. The Bonds are secured by a first pledge of all revenues derived from the Net Special Taxes and the moneys deposited in certain funds held by the Fiscal Agent under the Fiscal Agent Agreement. See "SECURITY FOR THE BONDS." Use of Proceeds. The Bonds are being issued to (i) finance the acquisition and construction of certain school facilities and improvements to be owned and operated by the School District of benefit to the property in the Community Facilities District, (ii) fund a reserve fund for the Bonds, (iii) fund capitalized interest on the Bonds through September 1, 2006, (iv) pay certain administrative expenses of the Community Facilities District, and (v) pay the costs of issuing the Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS" and "FACILITIES TO BE FINANCED WITH PROCEEDS OF THE BONDS." Bond Terms. Interest on the Bonds is payable on March 1, 2006 and semiannually thereafter on each September 1 and March 1. The Bonds will be issued in denominations of $5,000 or integral multiples of $5,000. The Bonds, when delivered, will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Company ("OTC"), New York, New York. OTC will act as securities depository for the Bonds. See "THE BONDS -General Bond Terms" and "APPENDIX E -OTC and the Book-Entry Only System." Redemption. The Bonds are subject to optional redemption and mandatory sinking fund redemption before maturity. See "THE BONDS - Redemption." THE BONDS, THE INTEREST THEREON, AND ANY PREMIUMS PAYABLE ON THE REDEMPTION OF ANY OF THE BONDS, ARE NOT AN INDEBTEDNESS OF THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT, THE STATE OF CALIFORNIA (THE "STATE") OR ANY OF ITS POLITICAL SUBDIVISIONS, AND NEITHER THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED IN THIS OFFICIAL STATEMENT), THE STATE NOR ANY OF ITS POLITICAL SUBDIVISIONS IS LIABLE ON THE BONDS. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE SCHOOL DISTRICT, THE COMMUNITY FACILITIES DISTRICT (EXCEPT TO THE LIMITED EXTENT DESCRIBED IN THIS OFFICIAL STATEMENT) OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. OTHER THAN THE SPECIAL TAXES, NO TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT A GENERAL OBLIGATION OF THE COMMUNITY FACILITIES DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE COMMUNITY FACILITIES DISTRICT PAYABLE SOLELY FROM THE SPECIAL TAXES AS MORE FULLY DESCRIBED IN THIS OFFICIAL STATEMENT. MATURITY SCHEDULE (see inside cover) This cover page contains certain information for quick reference only. It is not a summary of the issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the Bonds involves risks which may not be appropriate for some investors. See "BONDOWNERS' RISKS" for a discussion of special risk factors that should be considered in evaluating the investment quality of the Bonds. The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Rutan & Tucker LLP, Costa Mesa, California, Bond Counsel, and subject to certain other conditions. Jones Hall, A Professional Law Corporation, San Francisco, California is acting as Disclosure Counsel. Certain legal matters will be passed on for the School District and the Community Facilities District by Rutan & Tucker LLP, special counsel to the Community Facilities District, and for the Property Owner by its counsel Pillsbury Winthrop Shaw Pittman LLP, Century City, California. It is anticipated that the Bonds, in book-entryform, will be available for delivery on or aboutJuly 14, 2005. STONE &YOUNGBERG LLC The date of this Official Statement is: June 28, 2005 MATURITY SCHEDULE $1,270,000 Serial Bonds (Base CUSIPt: 586810) Maturity Principal Interest (September 1) Amount Rate Yield Price CU SI Pt 2007 $ 45,000 3.050% 3.050% 100.000% MJ9 2008 45,000 3.300 3.300 100.000 MK6 2009 50,000 3.650 3.650 100.000 ML4 2010 50,000 3.850 3.850 100.000 MM2 2011 50,000 4.000 4.000 100.000 MNO 2012 55,000 4.150 4.150 100.000 MPS 2013 55,000 4.250 4.250 100.000 MQ3 2014 60,000 4.350 4.350 100.000 MR1 2015 60,000 4.450 4.450 100.000 MS9 2016 65,000 4.550 4.550 100.000 MT7 2017 65,000 4.650 4.650 100.000 MU4 2018 70,000 4.750 4.750 100.000 MV2 2019 75,000 4.850 4.850 100.000 MWO 2020 75,000 4.875 4.900 99.729 MX8 2021 80,000 4.875 4.950 99.167 MY6 2022 85,000 5.000 5.000 100.000 MZ3 2023 90,000 5.050 5.050 100.000 NA7 2024 95,000 5.000 5.080 99.022 NBS 2025 100,000 5.100 5.100 100.000 NC3 $575,000 5.125% Term Bond due September 1, 2030, Price: 99.643% CUSIPt No. 586810 ND1 $735,000 5.200% Term Bond due September 1, 2035, Price: 100.000% CUSIPt No. 586810 NE9 t Copyright 2005, American Bankers Association. CUSIP data herein are provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc., and are provided for convenience of reference only. Neither the Community Facilities District, the School District nor the Underwriter assumes any responsibility for the accuracy of these CUSIP data. GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations with respect to the Bonds other than as contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized. No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the School District, the Community Facilities District, any other parties described in this Official Statement, or in the condition of property within the Community Facilities District since the date of this Official Statement. Use of this Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract with the purchasers of the Bonds. Preparation of this Official Statement. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.