NEW ISSlJE - BOOK-ENTRY-ONLY NO RATING In the opinion of Stradling Y1Jcca Carlson & Rauth, a Professional Corporation, Newport Beach, ("Bond Counsel''), under existing statutes, regulations, rulings and judicial decisions, and assuming certain representations and compliance with certain covenants and requirements described morefully herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of' tax preference purposes of calculating the federal alternative minimum tax imposed on individuals and corporations. in the .further opinion of Bond Counsel. interest (and original issue discount) on the Bonds is exempt .from State California personal income tax. The difference between the issue price of a Bond (the first price at which a substantial amount of Bonds maturiry are to be sold 10 the puhlic) and the stated rede1nption price at m.aturity 1vith respect to such Bond constitutes original issue discount. See "TlL'.( EXEMPTION" herein. County of Ventura State of California $8,800,000 COMMUNITY .FACILITIES DISTRICT NO. 2004-1 (TOWN CENTER PROJECT) 011' THE CITY OF SIMI VALLEY 2005 SPECIAL TAX BONDS Dated: Date of Delivery Due: September 1, as shown on the inside page The Community Facilities District No. 2004-1 (Town Cemer Project) of the City of Simi Valley 2005 Special Tax Bonds (the '·Bonds") are being issued and delivered lo finance various public improvements needed to develop property located within Community Facilities District No. 2004-1 of the City of Simi Valley (the "District"). The District is located in the City of Simi Valley ( the "City"), County of Ventura, California. The Bonds are authorized to be issued pursuant to the Mello-Rous Community Facilities Act of 1982, as amended (Sections 53311 ct seq. of r.he Government Code of the State of California), and pursuant to an Indenture, dated as of January 1, 2005 (the "Indenture"), by and between the District and The Bank of New York TrnstCompany, N.A., as fiscal agent (the "Fiscal Agent"). Interest on the Bonds will be capitalized through February l, 2006. Tbe Bonds are special limited obligations of the District and are payable solely from revenues derived from certain annual Special Taxes (as defined herein) to be levied on and collected from the owners of the taxable land within the District and from certain other funds pledged under the Indenture, all as further described herein. The Special Taxes are to be levied according to the rates and method of apportionment approved by the City Council of the City and the qualified elector within the District. See ''SOURCES OF PAYMENT FOR THE BONDS - Rate and Method of Apportionment" and APPENDIX A-- "RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES." The City Council of tbe City is the legislative body of the District. The Bonds are issuable in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository TrnstCompany, New York, New York ( "DIC"). Individual purchases may he made in principal amounts of $5,000 and integral multiples thereof and v:ill he in book-entry form only. Purchasers of Bonds will not receive certificates representing their benefo:ipJ ownership of the Bonds but will receive credit balances on !he booh of their re�pective nominees. The Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described herein. Interest on 1he Bonds will be payable on March l, 2005 and semiannually thereafter on each September l and March 1. Principal of and interest on the Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to DTC Participants who are obligated to remit such payments to the beneficial owners of the Bonds. See "THE BONDS -- Description of the Bonds" and APPENDIX G - "BOOK-ENTRY-ONLY SYSTEM" herein. Neither the faith and credit nor the taxing power of the City, the County of Ventura, the State of California or any political subdivision f thereo is pledged to the payment of the Bonds. Except for the Special Taxes. no other taxes are pledged to the payment of the Bonds. The Bonds are special limited tax: obligations of the District payable solely from Special Taxes and other amounts held under the Indenture as more fully described herein. The Bonds are subject to optional redemption and mandatory sinking fund redemption prior to maturity as set forth herein. See "THE BONDS - Redemption" herein. CERTAIN EVENTS COULD AFFECT THE ABILITY OF THE DISTRICT TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS WHEN DUK AS A RESULT, THE BONDS INVOLVE SIGNIFICANT RISKS, AND THE BONDS ARE NOT SUITABLE INVESTMENTS FOR ALL INVESTORS. SEE THE SECTION OF THIS OF.FICIAL STATEMENT ENTITLED "SPECIAi, RISK }?ACTORS" FOR A DISCUSSION OF CERTAIN RISK FACTORS THAT SHOULD HE CONSIDERED, IN ADDITION TO THE OTHER MATTERS SET FORTH HEREIN, lN EVALUATING THE INVESTMENT QUALITY OF THE BONDS. 1bis cover page contains certain information for general reference only. It is not intended to be a summary of the security or terms of this issue. Investors are advised to read the entire OfficialStatement to obtain infmmmion essential to tbc making of an infomiedinvestment decision. fvlATURITY SCHEDULE (See Inside Cover Page) The Bonds are when, as and if issued and accepted by the Underwriter, subject to appmval as to their legality by Stradling Yocca Carlson & Rauth, a Professional Corporation, Nev,,port Beach, California, Bond Counsel, and sul�ject to certain other conditions. Certain legal matters will be passed on for the City and the District by David H. Hirsch, in his capacity as City lHtorney. It is anticipated that the Bonds in book-·enrry form will be available for delivery w DTC in New York, New York, on or about February 17, 2005. STONE & YOUNGBERG LLC Dated: January 26. 2005 MATURITY SCHEDULE (Base CUSIPt: 828630) Maturity Date Principal Interest Maturity Date Principal Interest (September I) Amount Rate Yield CUSIPf (September I) Amount Rate Yield CUSIPf 2006 $ 25,000 2.50% 2.50% AAS 2016 $160,000 4.65% 4.65% AL 1 2007 35,000 2.85 2.85 AB 3 2017 180,000 4.75 4.75 AM9 2008 45,000 3.20 3.20 AC 1 2018 200,000 4.85 4.85 AN7 2009 55,000 3.45 3.45 AD9 2019 220,000 4.95 4.95 AP2 2010 70,000 3.75 3.75 AE7 2020 245,000 5.05 5.05 AQO 2011 80,000 4.00 4.00 AF4 2021 270,000 5.15 5.15 AR8 2012 95,000 4.15 4.15 AG2 2022 295,000 5.20 5.20 AS6 2013 110,000 4.35 4.35 AHO 2023 325,000 5.25 5.25 AT4 2014 125,000 4.45 4.45 AJ6 2024 355,000 5.30 5.30 AU 1 2015 140,000 4.55 4.55 AK3 2025 390,000 5.35 5.35 AV9 $1,930,000 5.40% Term Bonds due September 1, 2029 Price: 99.325, CUSIPf 82863U AZ O $3,450,000 5.50% Term Bonds due September 1, 2034 Price: 100.000, CUSIPf 82863U BE 6 f Copyright 2004, American Bankers Association. CUSIP data herein is provided by Standard & Poor's, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. Neither the Underwriter nor the District takes any responsibility for the accuracy of such data. CITY OF SIMI VALLEY COUNTY OF VENTURA STATE OF CALIFORNIA CITY COUNCIL Paul Miller, Mayor Barbra Williamson, Mayor Pro Tern Glen T. Becerra, Council Member Steven T. Sojka, Council Member Michelle S. Foster, Council Member CITY OFFICIALS Mike Sedell, City Manager David H. Hirsch, City Attorney Steve Elam, Director of Administrative Services Timothy P. Nanson, Director of Public Works Dan Paranick, Deputy City Manager Alice Redondo, Assistant City Clerk BOND COUNSEL REAL ESTATE APPRAISER Stradling Yocca Carlson & Rauth, Cushman & Wakefield, Inc. a Professional Corporation Portland, Oregon Newport Beach, California SPECIAL TAX CONSULTANT FISCAL AGENT David Taussig & Associates, Inc. The Bank of New York Trust Company, N.A. Newport Beach, California Los Angeles, California Except where otherwise indicated, all information contained in this Official Statement has been provided by the City and the District. No dealer, broker, salesperson or other person has been authorized by the City, the District, the Fiscal Agent or the Underwriter to give any information or to make any representations in connection with the offeror sale of the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the District, the Fiscal Agent or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offerto buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers or Owners of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. This OfficialStatement, including any supplement or amendment hereto, is intended to be deposited with a nationally recognized municipal securities depository. The Underwriter has provided the followingsentence forinclusion in this OfficialStatement: 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.