Reunion East CDD

First Supplemental Special Assessment

Allocation Report

REUNION EAST COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT BONDS, SERIES 2002A SPECIAL ASSESSMENT BONDS, SERIES 2005

FINAL FIRST SUPPLEMENTAL SPECIAL ASSESSMENT ALLOCATION REPORT

OVERVIEW

This First Supplemental Special Assessment Allocation Report relates to the financing of Master Improvements for the Reunion East Community Development District. The District consists of approximately 996 Total Acres which is c111Tently contemplated for single family, multi family, timeshare, commercial and hotel development. The total cost of the Master Improvements to be constrncted by the District is estimated to be approximately $56,520,000. The District previously issued Special Assessment Bond Anticipation Notes, Series 2001, in the amount of $10,000,000 to finance a portion of the Master Improvements and has issued Special Assessment Bonds, Series 2002A, to retire the Notes and to fund additional Master Improvements within the development. The District now proposes to issue Special Assessment Bonds, Series 2005, to fund a portion of the balance of the Master Improvements. The Series 2005 Bonds will be secured by and repaid from special assessments levied on certain Benefited Parcels. The proposed development plan indicating the total number of units of each product type to be developed within the entire District, are shown on Page A - 1 of Exhibit A of this report.

DEFINED TERMS

"Benefited acquisition

Parcels" -  Parcels	of land within the District that	
and/or constrnction	of the Master Improvements.	

receives special benefit from the

"Bonds" - acquisition

Special assessment bonds issued during the life of the project for the constrnction and/or of improvements that provide special benefit to the lands within the District.

"Bond Anticipation Notes" Notes issued in December constrnction.

- (also referred of 2001 in the

to as ''Notes") Special Assessment Bond Anticipation amount of $10,000,000 to finance $9,750,000 of

"District"

-

Reunion East Community Development District

"Equivalent Assessment Unit" - (EAU)	
based on a comparison of the land area	of	
benefit received by each product type.		

An estimate of the relationship between the product types, each product, and is used as a comparison of the estimated

"Master Improvements" -

The  acquisition and/or  constrnction

of

certain infrastrncture that

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First Supplemental Special Assessment

Allocation Report

provides special benefit to all parcels within the District.

"Platted Units" - Residential, hotel, commercial or golf units which have been platted.

"Remaining Units" - Residential, hotel, commercial or golf units remaining to be platted.

"Series 2002A Assessments" -Annual assessments levied over a 30 year period to repay the Series 2002A Bonds. Assessments include principal, interest and applicable collection costs.

"Series 2002A Bonds" - Special Assessment Bonds issued in 2002 to fund the acquisition and/or construction of certain Master Improvements. The bonds will be repaid in 30 annual installments after the capitalized interest period has expired.

"Series 2005 Assessments" -Annual assessments levied over a 30 year period to repay the Series 2005 Bonds. Assessments include principal, interest and applicable collection costs.

"Series 2005 Bonds" - Special Assessment Bonds issued in 2005 to fund the acquisition and/or construction of certain Master Improvements. The bonds will be repaid in 30 annual installments after the capitalized interest period has expired.

"Total Project" - Acquisition and/or construction of approximately $56,520,000 of Master Improvements, including onsite and offsite, that provide benefit to all Benefited Land within the District.

"Total Units" -  Total number of units planned for the Benefited Parcels that make up the District.

REUNION MASTER IMPROVEMENTS

The Master Improvements will include major roads, water and wastewater facilities, landscaping, irrigation, parks and other amenities and associated professional fees. These improvements, which will provide special benefit to all parcels within the District, are estimated to cost, in total, approximately $56,520,000 and are categorized on Page A - 2 of Exhibit A of this report.

The estimated acquisition and construction costs of the Master Improvements identified above were provided by the District Engineer. The plans & specifications are available at the office of the District Engineer. Rizzetta & Company, as Financial Advisor to the District, makes no representation regarding the accuracy or validity of those costs and did not undertake any analysis or verification regarding such costs or their allocation.

PLAN OF FINANCE- SERIES 2002A

The terms and financing assumptions fo:i.- the Series 2002A Bonds have not changed. Proceeds of the Series 2002A Bonds were used to retire the Series 2001 Bond Anticipation Notes, consisting of principal

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	Allocation Report	
amount of $10,000,000 plus accrued interest through August 7, 2002 of $397,222	fora total of $10,397,222	
and to finance the construction and/or acquisition of an additional $31,338,000	of Master Improvements	
described above.  The Series 2002A Bonds had a par amount of $54,145,000, and included the construction	
fund, amount to retire the Notes, capitalized interest, original issue discounts, if any, reserves and issue costs.	
These bonds are expected to be repaid by assessments levied on Benefited Parcels	as identified on Page A - 5	
of Exhibit A of this Report.		
The annual debt service on the Series 2002A Bonds is $4,507,581 and includes principal plus interest.	
This is based on an issue of$54,145,000, an August 1, 2002 dated date, a 7.33% average coupon rate and 21	
months of capitalized interest through the May 1, 2004 interest payment date.	The annual debt service	
payment was then adjusted to allow for early payment discounts of 4% and collection fees for the Tax	
Collector' office of 2%, resulting in a total estimated annual assessment, including principal, interest, early	
payment discounts and collection costs of $4,795,299.		
PLAN OF FINANCE- SERIES 2005		
Proceeds of the Series 2005 Bonds will be used to finance the construction and/or acquisition of	
approximately $15,334,472 of Master Improvements described above. The Series 2005 Bonds will require a	
par amount of $18,880,000, and includes the construction fund, capitalized interest, original issue discounts, if	
any, reserves and issue costs.  These bonds are expected to be repaid by assessments levied on Benefited	
Parcels as identified on Page A - 5 of Exhibit A of this Report.		
The annual debt service to retire the Series 2005 Bonds is estimated to be $1,330,295 and includes	
principal plus interest.  This is based on an issue size of $18,880,000, a March 1,	2005 dated date, a 5.80%	
coupon rate, a May 1, 2036 maturity date and 20 months of capitalized interest through the November 1, 2006	
interest payment date.   The annual debt service payment was then adjusted to allow for early payment	
discounts of 4% resulting in a total estimated annual assessment, including principal, interest, early payment	
discounts and collection costs of $1,385,724.		
ALLOCATION METHODOLOGY		
As described above, the District contemplates issuing Bonds to finance the construction and/or	
acquisition of the Master Improvements.  This debt is to be allocated among the Benefited Parcels in	
proportion to the benefit received from the construction of the Master Improvements pursuant to the	
allocation methodology described herein.		

The methodology will

consist

of

a 2 step process

as

follows:

Step

1:

Assessment Tables

Series 2002A:

The initial individual per unit

step was to establish a master assessment table that will serve as assessments that will be levied on the Benefited Parcels ofland

the basis for determining within the District. This

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Allocation Report

assessment table has now been modified so that the principal amount per unit is calculated based on the present value of the adopted annual assessment using the actual pricing and financing terms of the Series 2002A Bonds.

Series 2005:

The assessment table for the Series 2005 Bonds reflects the adopted annual debt service assessment and an estimate of the principal per unit calculated using the present value of the adopted annual assessment using the estimated pricing and financing terms of the Series 2005 Bonds.

The assessment methodology remains unchanged and is based on an allocation factor using Equivalent Assessment Units for each land use as a percentage of total EAUs for all land use types planned for development within the District. The EAU factors for each product are listed below.

Land Use

EAU

Factor

Commercial Hotel/Condo less Multi Family Single Family Golf

than 700

sf

1.00 1.00 1.50 2.00 1.00

Step 2:

Assignment

Of

Assessment

To

Parcels

As parcels ofland are sold by the developer and land use is determined, an assessment equal to the per unit assessment will be assigned to each unit within the parcel. This will be done first using the Series 2002A assessment table until such time that the Series 2002A principal has been allocated completely. After the Series 2002A principal has been fully assigned, all future assignments for the balance of the development will be based on the Series 2005 assessment table.

MODIFICATIONS AND REVISIONS

Allocation of costs and benefit for the Master Improvements is based on the expected or planned number of units within each land use that will be achieved when the Benefited Parcels are platted into individual lots or units. In order to ensure sufficient revenue from such special assessments is received from the subsequent platting of the lands within the District into individual lots or units, the District will be required to perform a "true-up" analysis which would require a periodic computation to determine the total Platted Units and the planned number of Remaining Units within each product type.

As units are platted, if the assessment revenue anticipated to be generated from the sum of the Platted Units and the Remaining Units is equal to or greater than that of the Total Units, no action would be required at that time. However, if the assessment revenue anticipated to be generated from the sum of the Platted Units and the Remaining Units is less than that of the Total Units, the Developer will be obligated to immediately remit, to the Trustee, for deposit into the redemption account pursuant to the Trust Indenture, the total assessment for the difference between the Total Units and the sum of the Platted Units and the Remaining

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Allocation Report

Units. This total assessment is the principal amount of the Bonds allocated to each unit based on the methodology described herein plus applicable interest and as shown on the Final Assessment Roll in Exhibit A of this report. The true-up computation will be required each time additional lots within the District are platted.

In the event that additional land not currently subject to the assessments as described herein is developed in such a manner as to receive special benefit from the Master Improvements also described herein, it is contemplated that this assessment methodology will be re-applied to include such additional land. The additional land will, as a result of re-applying this allocation methodology, then be allocated an appropriate share of the special assessments while all currently assessed lands will receive a relative reduction in their assessments.

If the total number of units developed in a particular parcel increases after assessments are assigned and fixed to that parcel, then additional assessments will be assigned to that parcel resulting in a higher assessment for the parcel as a whole but no change in per unit assessments.

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Reunion East CDD

First Supplemental Special Assessment
Allocation Report

EXHIBIT A

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REUNION EAST

COMMUNITY DEVELOPMENT DISTRICT

SPECIAL ASSESSMENT BONDS, SERIES 2002A

TABLE 1:  REVISED OVERALL PROJECT STATISTICS		
	SUMMARY OF LAND USE			
		Total	Total	Total	
Planned Use	EAU/Unit	Units	EAUs	Acres	
Commercial	1.00	404	404.00	18.94	
Hotel/Condo	1.00	404	404.00.	23.75	
Multi Family	1.50	2,809	4213.50	176.40	
Single Family	2.00	775	1550.00	176.23	
Golf	1.00	2.90	2.90	2.90	
Total		4,395	6574.40	398.22	

3/9/2005	A-1	Reunion East 2002A Supplemental (Final)

REUNION EAST

COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT BONDS, SERIES 2002A

TABLE 2:  TABLE OF ASSESSMENTS - SERIES 2002A BONDS (1)

	Per Unit Assessment		
		Annual		
Land Use	Princi);!al {1}	Assessment	Units	
Commercial	$10,664	$925	lKSf	
Hotel/Condo	$10,664	$925	Room	
Multi Family	$16,001	$1,388	Unit	
Single Family	$21,339	$1,851	Lot	
Golf	$32,868	$2,851		

(1) Estimated based on present value of adopted annual debt service assessments at Series 2002A bond terms.

3/9/2005	A-2	Reunion East 2002A Supplemental (Final)

REUNION EAST COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT BONDS, SERIES 2002A

TABLE 3:  FINANCING

Average Coupon Rate

Term (Years)

Principal Amortization Installments

INFORMATION - SERIES 2002A BONDS

7.33% 32 30

ISSUE SIZE

Construction Fund

Retire Series 2001 Bond Anticipation Notes

Capitalized Interest (Months)

Debt Service Reserve Fund

Underwriter's Discount

+ Premium I - Discount

Cost of Issuance

Rounding

21 8.79% 2.00%

(1)

$54,145,000		
$30,980,402	(2)	
$10,397,222	(3)	
$6,616,621	(2)	
$4,762,052		
$1,082,900		
$201,900		
$102,500		
$1,403		

ANNUAL ASSESSMENT Annual Debt Service (Principal plus Interest) Collection Costs and Discounts @ TOTAL ANNUAL ASSESSMENT

	$4,507,581	
4.00%	$187,816	
	$4,695,397	

(1) (2) (3)

Based on an August 1, 2002 dated date and capitalized through the May 1, 2004 interest payment date. Net funded. Calculated as follows:

Par amount of Bond Anticipation Notes Accrued Interest Total Payoff

$10,000,000 $397,222 $10,397,222

3/9/2005

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Reunion East 2002A Supplemental (Final)

REUNION EAST

COMMUNITY DEVELOPMENT DISTRICT

SPECIAL ASSESSMENT BONDS, SERIES 2005

TABLE 4:  FINANCING INFORMATION - SERIES 2005 BONDS		
CouponRatc		5.80%		
Term (Years)		32		
Principal Amortization Installments		30		
ISSUE SIZE		$18,880,000		
Construction Fund		$15,334,472	(2)	
Capitalized Interest (Months)	20  (1)	$1,697,633	(2)	
Debt Service Reserve Fund	7.05%	$1,330,295	(3)	
Underwriter's Discount	1.84%	$347,600		
+ Premium / - Discount		$0		
Cost of Issuance		$170,000		
Rounding		$0		
ANNUAL ASSESSMENT				
Annual Debt Service (Principal plus Interest)		$1,330,295		
Collection Costs and Discounts @	4.00%	$55,429		
TOTAL ANNUAL ASSESSMENT		$1,385,724		

(1)	Based on a March 1, 2005 dated date and capitalized throngh the November 1, 2006 interest payment date.

(2)	Net fnnded.

(3)	Based on maximum annual debt service

3/9/2005	A-4	Reunion East 2002A Supplemental (Final)

REUNION EAST

COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT BONDS, SERIES 2005

TABLE 5:  TABLE OF ASSESSMENTS - SERIES 2005 BONDS

	Per Unit Assessment		
		Annual		
Land Use	Princil!al {l)	Assessment	Units	
Commercial	$12,489	$925	lKSf	
Hotel/Condo	$12,489	$925	Room	
Multi Family	$18,741	$1,388	Unit	
Single Family	$24,992	$1,851	Lot	

(1) Estimated based on present value of adopted annual debt service assessments at Series 2005 bond terms.

3/9/2005	A-5	Reunion East 2002A Supplemental (Final)