DUBLIN SAN RAMON SERVICES DISTRICT FINANCING ADMINISTRATION

Level is calculated, if any portion of District Bonds or LAVWMA Bonds, as the case may be, is in variable rate form, the calculation shall be determined by multiplying the remaining variable rate debt by the rate quoted in the "Stone & Youngberg Municipal Market Update" for 30 year insured AAA/aaa California Municipal Bonds (or as stated in an equivalent publication in the event said Municipal Market Update ceases to be published during the Term hereof) in the first week in August of each year. The Maximum Annual Expansion Projects Debt Service upon which Bond Target Level is calculated shall be reviewed by the parties and adjusted annually by the tenth (10th) day of September, or as soon thereafter as practicable, to reflect District's and LAVWMA's redemption of said Bonds. The above method also shall serve as a guideline for determining the Administrative Target Level; provided, that nothing herein contained shall be deemed to amend or supersede provisions in the Bond Documents pertaining to District Bonds and LAVWMA Bonds regarding maintenance of the Bond Target Level. (d) Administrative Target Level. From and after the Effective Date, and so long as Bonds are outstanding, and after taking into consideration adjustments to the Regional Connection Fee sufficient to generate revenues corresponding to annual obligations to pay for all Regional Facilities Expansion Projects undertaken by District as of the Effective Date of this Agreement, in calculating the annual adjustments to the Regional Connection Fee, District shall take into consideration an adjustment as provided is subparagraph (e) below, which shall generate revenues sufficient to achieve the Administrative Target Level, i.e., five times (5x) the then Maximum Annual Expansion Projects Debt Service for such outstanding Bonds. Said Target Level shall be adjusted annually in conjunction with adjustments to the Bond Target Level. In Fiscal Year Agmt-41 12 f/sh/sh/DSRSD DES:r 12/S~OOr