DUBLIN SAN RAMON SERVICES DISTRICT FINANCING ADMINISTRATION

EXHIBIT B -TABLE 2 EXAMPLE ONLY FINANCING ADMINISTRATION AGREEMENT MINIMUM CONNECTION FEE INCREASE A g C Ratio of Connection Fee Revenue Required minimum Rate Stabilization Fund in prior year as a % of increase in divided by Maximum Maximum Annual connection fee Annual Expansion Expansion Projects Projects Debt Service Debt Service for the current ear Greater than 5.0 -- 3.0% Between 5.0 and 4.0 Less than 75% 6.0% Less than 4.0 to 3.0 Less than 87.5% 12.0% Less than 3.0 to 2.0 Less than 100% 18.0% If the Rate Stabilization Fund is less than 5.0 times next years' Maximum Annual Expansion Projects Debt Service, then determine the percentage of the past years' Connection Fee Revenue to next years' Maximum Annual Expansion Projects Debt Service. If this percentage is less than the amounts shown in column B above, then increase the Connection Fee by the amount shown in Column C. Otherwise, the minimum 3% Connection Fee increase applies. EXHIBIT B -EXAMPLE CALCULATION FINANCING ADMINISTRATION AGREEMENT FY 2000/01 ESTIMATED MINIMUM CONNECTION FEE INCREASE Estimated FY 2001/02 Max. Annual Expansion Projects Debt Service Estimated FY 2000/01 Connection Fee Revenue Estimated Rate Stabilization Fund Balance after sale of LAVWMA bonds Ratio of RSF divided by Max Annual Expansion Projects Debt Service If prior year's connection fee revenue is 100% or greater of projected Max Annual Debt Service for the next year, then the minimum 3% connection fee increase would apply. Connection fee revenue as a percent of Max Annual Debt Service For this example: RSF is 3.35 times Max Annual Expansion Projects Debt Service. Prior year's connection fee revenue is greater than 87.5% of projected Max Annual Debt Service for the next year, therefore the Connection Fee increase reverts to the 3% minimum requirement. $10, 456, 000 10, 000, 000 35, 000, 000 3.35 95.6% F:\Jobs\DSRSD\344E.1\FinAdminAgmtExB.xlsMin conn fee incr02/23/2001 ~y/~`~~1• ~ ~/