HomeMy WebLinkAboutOrd. No. 2005-1148
ORDINANCE NO. 1.148
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LAKE ELSINORE AUTHORIZING THE LEVY OF A
SPECIAL TAX
WHEREAS, on December 28,2004, the City Council (the "Council") of the
City of Lake Elsinore (the "City") adopted Resolution No. 2004-77 stating its
intention to form the City of Lake Elsinore Community Facilities District No.
2004-3 (Rosetta Canyon) (the "CFD") pursuant to the Mello-Roos Community
Facilities Act of 1982, as amended (the "Act"), to finance the purchase,
construction, expansion or rehabilitation of certain real and other tangible property
with an estimated useful life of five years or longer, including public infrastructure
facilities and other governmental facilities, which the City is authorized by law to
construct, own, operate or finance, including but not limited to streets, streetscape,
storm drain, water and sewer facilities, fire station, fire equipment, City fees and
fees of the Elsinore Valley Municipal Water District, and related costs including
designs, inspections, professional fees, annexation fees, connection fees and
acquisition costs (the "Facilities"), and designating portions of the CFD as
Improvement Area No. 1 and Improvement Area No.2; and
WHEREAS, on December 28, 2004, the. Council also adopted Resolution
No. 2004-76 stating its intention and the necessity to incur bonded indebtedness in
the amount of not to exceed $23,000,000 and $28,000,000 for Improvement Area
No.1 and Improvement Area No.2, respectively, to be issued for the purpose of
financing the purchase, construction, expansion or rehabilitation of the Facilities;
and
WHEREAS, notice was published as required by law relative to the
intention of the Council to form the CFD and to incur bonded indebtedness in the
amount not to exceed $23,000,000 and $28,000,000 within the boundaries of
Improvement Area No. 1 and Improvement Area No.2, respectively, of the CFD;
and
WHEREAS, on March 22, 2005, this Council held a noticed public hearing
as required by law relative to the determination to proceed with the formation of
the CFD, the rate and method of apportion and manner of collection of the special
tax to be levied within each Improvement Area No. I and Improvement Area No.2
of the CFD to pay the principal and interest on the proposed bonded indebtedness
of Improvement Area No.1 and Improvement Area No.2 of the CFD, and relative
to the necessity for authorizing the bonds, the purpose for which the bonds are to
45559951.1
be issued, the amount of the proposed debt, the maximum term of the bonds and
the maximum annual rate of interest to be paid; and
WHEREAS, at said hearing all persons desiring to be heard on all matters
pertaining to the formation of the CFD and the incurring of bonded indebtedness
by each Improvement Area No.1 and Improvement Area No.2 of the CFD were
heard and a full and fair hearing was held; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2005 - 3A ("Resolution of Formation") determining the validity of prior
proceedings and established the CFD; and
WHEREAS, the Council subsequent to said hearing adopted Resolution No.
2005 - 1q which called an election within the CFD for March 22, 2005 on
the proposition of incurring bonded indebtedness, levying a special tax and setting
an appropriations limit; and
WHEREAS, on March 22, 2005, an election was held within each
Improvement Area No.1 and Improvement Area No.2 of the CFD in which the
eligible electors approved by more than two-thirds vote the proposition of
incurring bonded indebtedness, levying a special tax, and setting an appropriations
limit;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. A special tax (the "Special Tax") is levied within the boundaries
of each Improvement Area No. 1 and Improvement Area No.2 of the CFD
pursuant to the formulas set forth in Exhibit "A" attached hereto and incorporated
by reference in an amount necessary to pay all of the costs of providing the
Facilities, periodic costs, and costs of the tax levy and collection, and all other
costs including amounts payable with respect to the bonded indebtedness.
Section 3. This legislative body is hereby further authorized each year, by
resolution adopted as provided in section 53340 of the Act, to determine the
specific special tax rate and amount to be levied for the then current or future tax
years, except that the special tax rate to be levied shall not exceed the maximum
rate set forth in Exhibit "A".
Section 3. All of the collections of the Special Tax shall be used as provided
for in the Act and the Resolution of Formation.
45559951.1
Section 4. The above authorized Public Special Tax shall be collected in the
same manner as ordinary ad valorem taxes are collected and shall be subject to the
same penalties and the same procedure and sale in cases of delinquency and
provided for ad valorem taxes; provided, however, the CFD may collect the
Special Tax at a different time or in a different manner if necessary to meet its
financial obligations.
Section 5. The Mayor shall sign this ordinance and the City Clerk shall
attest to such signature. The City Clerk is directed to cause the title and summary
or text of the this ordinance, together with the vote thereon, to be published within
fifteen (15) days after its passage at least once in a newspaper of general
circulation published and circulated within the territorial jurisdiction of the City,
and to post at the main office of the City a certified copy of the full text of the
adopted ordinance along with the names of the Council Members voting for and
against the ordinance.
Section 6. This ordinance relating to the levy of the Special Tax takes effect
and shall be in force from and after 30 days from the date of final passage. A copy
of this ordinance shall be transmitted to the Clerk of the Board of Supervisors of
Riverside County, the Assessor and the Treasurer-Tax Collector of Riverside
County.
-
45559951.1
PASSED, UPON FIRST READING this 22rdday of March
the following roll call vote:
, 2005, by
AYES:
NOES:
COUNCILMEMBERS: HI CKMAN, KELLEY, MAGEE, SCHI FFNER
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: BUCKLEY
ABSTAIN: COUNCILMEMBERS: NONE
PASSED, APPROVED AND ADOPTED this 12thday of April
2005, by the following roll call vote:
AYES:
NOES:
COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, MAGEE
SCHIFFNER
COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: a (
Robert E. Magee,
Ari3~~:
0itU
VickI Kasad, City Clerk
45559951.1
EXHIBIT" A"
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
45559951.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-1
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT No. 2004-3
IMPROVEMENT AREA No.1 (ROSETTA CANYON)
A Special Tax shall be levied on all Assessor's Parcels in City of Lake Elsinore Community
Facilities District No. 2004-3 (Improvement Area No.1) (Rosetta Canyon) ("CFD No. 2004-3 (IA
No. I)") and collected each Fiscal Year commencing in Fiscal Year 2005-2006, in an amount
determined through the application of the Rate and Method of Apportionment as described below.
All of the real property in CFD No. 2004-3 (IA No.1), unless exempted by law or by the
provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the
land area shown on the applicable final map, parcel map, condominium plan, or other
recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2004-3 (IA No.1): the costs of computing
the Special Taxes and preparing the annual Special Tax collection schedules (whether by
the City or designee thereof or both); the costs of collecting the Special Taxes (whether by
the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of
the Trustee (including its legal counsel) in the discharge of the duties required of it under
the Indenture; the costs to the City, CFD No. 2004-3 (IA No.1) or any designee thereof of
complying with arbitrage rebate requirements; the costs to the City, CFD No. 2004-3 (IA
No.1) or any designee thereof of complying with disclosure requirements of the City, CFD
No. 2004-3 (IA No.1) or obligated persons associated with applicable federal and state
securities laws and the Act; the costs associated with preparing Special Tax disclosure
statements and responding to public inquiries regarding the Special Taxes; the costs of the
City, CFD No. 2004-3 (IA No.1) or any designee thereof related to an appeal of the
Special Tax; the costs associated with the release of funds from an escrow account; and the
City's annual administration fees and third party expenses. Administrative Expenses shall
also include amounts estimated by the CFD Administrator or advanced by the City or CFD
No. 2004-3 (IA No.1) for any other administrative purposes of CFD No. 2004-3 (IA No.
1), including attorney's fees and other costs related to commencing and pursuing to
completion any foreclosure of delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No. I
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-2
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel number.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property in each Zone, as determined in accordance with Section C.l. b. below.
"Authorized Facilities" means those authorized improvements, as listed on Exhibit "A"
to the Resolution of Formation.
"Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property, as determined in accordance with Section C.l.d. below.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2004-3" means City of Lake Elsinore Community Facilities District No.
2004-3 (Rosetta Canyon).
"CFD No. 2004-3 (IA No.1)" means Improvement Area No. 1 of CFD No. 2004-3, as
identified on the boundary map for CFD No. 2004-3.
"CFD No. 2004-3 (IA No.1) Bonds" means any bonds or other debt (as defined in
Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2004-3
and secured solely by Sp.ecial Taxes levied on property within the boundaries of CFD No.
2004-3 (IA No.1) under the Act.
"City" means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the
legislative body ofCFD No. 2004-3 (IA No.1).
"County" means the County of Riverside.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which
the Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a
building permit for new construction was issued after January 1, 2004 and on or before
May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being
levied.
"Final Subdivision" means a subdivision of property by recordation of a final map,
parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant
to California Civil Code 1352 that creates individual lots for which building permits may
be issued without further subdivision.
City of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) -Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-3
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which CFD No. 2004-3 (IA No.1) Bonds are issued, as modified, amended
and/or supplemented from time to time, and any instrument replacing or supplementing
the same.
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for
which a building permit permitting the construction of one or more non-residential units
or facilities has been issued by the City.
"Outstanding Bonds" means all CFD No. 2004-3 (IA No.1) Bonds which are deemed
to be outstanding under the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property
within the boundaries ofCFD No. 2004-3 (IA No.1) that was owned by a property owner
association, including any master or sub-association, as of January 1 of the prior Fiscal
Year.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax
levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property,
or where the Backup Special Tax is being levied, that the ratio of the actual Special Tax
levy to the Maximum Special Tax is equal for all Assessor's Parcels upon which a Backup
Special Tax is being levied. For Undeveloped Property, "Proportionately" means that the
ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal
for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section D below.
"Public Property" means property within the boundaries of CFD No. 2004-3 (IA No.1)
owned by, irrevocably offered or dedicated to, or over, through or under which an
easement for purposes of public right-of-way has been granted, to the federal
government, the State, the County, the City, or any local government or other public
agency, provided that any property leased by a public agency to a private entity and
subject to taxation under Section 53340.1 of the Act shall be taxed and classified
according to its use.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage,
overhang, patio, enclosed patio, or similar area. The determination of Residential Floor
Area for an Assessor's Parcel shall be made by reference to the building permit{s) issued
for such Assessor's Parcel.
City of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 84
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit permitting the construction thereon of one or more residential dwelling
units has been issued by the City.
"Resolution of Formation" means the Resolution of Formation for CFD No. 2004-3 (IA
No.1).
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Developed Property, Taxable Property Owner Association Property, Taxable
Public Property, and Undeveloped Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2004-3 (IA No.1) to: (i) pay debt service on all Outstanding Bonds due in the calendar
year commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2004-3 (IA
No.1) Bonds, including but not limited to, credit enhancement and rebate payments on the
CFD No. 2004-3 (IA No.1) Bonds due in the calendar year commencing in such Fiscal
Year; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or
replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated
Special Tax delinquencies based on the delinquency rate for the Special Tax levy in the
previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized
Facilities to the extent that the inclusion of such amount does not increase the Special Tax
levy on Undeveloped Property; less (vii) a credit for funds available to reduce the annual
Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD
No. 2004-3 (IA No.1) which are not exempt from the Special Tax pursuant to law or
Section E below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not
classified as Developed Property, Taxable Property Owner Association Property, or
Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone 1" means the land geographically identified within the boundaries of zone I as
delineated in Exhibit A to this Rate and Method of Apportionment.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-5
ttZone 2ft means the land geographically identified within the boundaries of zone 2 as
delineated in Exhibit A to this Rate and Method of Apportionment.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2004-3 (IA No.1) shall be
assigned to a Zone and further classified as Developed Property, Taxable Public Property,
Taxable Property Owner Association Property, or Undeveloped Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C and D below. Residential Property shall be assigned
to Land Use Classes 1 through 11 as listed in Table I below based on the Residential
Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class
12.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup Special Tax.
b. Assigned Special Tax
The Assigned Special Tax for each Land Use Class is shown below in
Table 1.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No. I
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-6
TABLE 1
Assigned Special Taxes for Developed Property
Community Facilities District No. 2004-3
Improvement Area No.1
Fiscal Year 2005-2006
1 Residential Property > 3,950 s.f. $2,963.82 per unit $3,247.22 per unit
2 Residential Property 3,701 - 3,950 s.f. $2,874.12 per unit $3,191.43 per unit
3 Residential Property 3,451 - 3,700 s.f. $2,784.41 per unit $3,135.65 per unit
4 Residential Property 3,201 - 3,450 s.f. $2,694.71 per unit $2,995.56 per unit
5 Residential Property 2,951 - 3,200 s.f. $2,605.01 per unit $2,879.24 per unit
6 Residential Property 2,701 - 2,950 s.f. $2,464.59 per unit $2,762.93 per unit
7 Residential Property 2,451 - 2,700 s.f. $2,401.75 per unit $2,690.90 per unit
8 Residential Property 2,201 - 2,450 s.f. $2,338.42 per unit $2,569.83 per unit
9 Residential Property 1,951 - 2,200 s.f. $2,174.55 per unit $2,502.06 per unit
10 Residential Property 1,700 - 1,950 s.f. $2,120.92 per unit $2,420.82 per unit
11 Residential Property < 1,700 s.f. $2,066.79 per unit $2,329.00 per unit
12 Non-Residential Property NA $14,337 per Acre $14,043 per Acre
c. Increase in the Assigned Special Tax
The Assigned Special Taxes identified in Table 1 above shall be
applicable for Fiscal Year 2005-2006, and shall increase thereafter,
commencing on July 1,2006 and on July 1 of each Fiscal Year thereafter,
by an amount equal to two percent (2%) of the Assigned Special Tax for
the previous Fiscal Year.
d. Backuo Soecial Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal $16,285 multiplied by the
Acreage of all Taxable Property, exclusive of any Taxable Property
Owner Association Property and Taxable Public Property, therein. The
Backup Special Tax for each Assessor's Parcel of Residential Property
shall be computed by dividing the Backup Special Tax attributable to the
applicable Final Subdivision by the number of Assessor's Parcels for
which building permits for residential construction have or may be issued
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-7
(i.e., the' number or residential lots). The Backup Special Tax for each
Assessor's Parcel of Non-Residential Property therein shall equal $16,285
multiplied by the Acreage of such Assessor's Parcel.
If a Final Subdivision includes Assessor's Parcels of Taxable Property for
which building permits for both residential and non-residential
construction may be issued, exclusive of Taxable Property Owner
Association Property and Taxable Public Property, then the Backup
Special Tax for each Assessor's Parcel of Residential Property shall be
computed exclusive of the Acreage and Assessor's Parcels of property for
which building permits for non-residential construction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
Subdivision(s) described in the preceding paragraphs is subsequently
changed or modified, then the Backup Special Tax for each Assessor's
Parcel of Developed Property in such Final Subdivision area that is changed
or modified shall be a rate per square foot of Acreage calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the
changed or modified Final Subdivision area prior to the change or
modification.
2. The result of paragraph 1 above shall be divided by the Acreage of
Taxable Property which is ultimately expected to exist in such changed
or modified Final Subdivision area, as reasonably determined by the
CFD Administrator.
3. The result of paragraph 2 above shall be divided by 43,560. The result
is the Backup Special Tax per square foot of Acreage which shall be
applicable to Assessor's Parcels of Developed Property in such
changed or modified Final Subdivision area for all remaining Fiscal
Years in which the Special Tax may be levied.
1. Release of Obligation to Pay and Disclose Backup Special
Tax
All Assessors' Parcels within CFD No. 2004-3 (IA No.1) will be
relieved simultaneously and permanently from the obligation to
pay and disclose the Backup Special Tax if the CFD Administrator
determines that the annual debt service required for the
Outstanding Bonds, when compared to the Assigned Special Taxes
that may be levied against all Assessors' Parcels of Developed
Property result in 110% debt service coverage (i.e., the Assigned
Special Taxes that may be levied against all Developed Property in
each remaining Fiscal Year based on then existing development in
CFD No. 2004-3 (IA No.1) is at least equal to the sum of (i) the
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Caliyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16. 2004
Page B-8
Administrative Expenses and (ii) 1.10 times maximum annual debt
service, in each remaining Fiscal Year on the Outstanding Bonds).
e. Increase in the Backup Special Tax
On each July 1, commencing on July 1, 2006, the Backup Special Tax
shall be increased by an amount equal to two percent (2%) of the Backup
Special Tax for the previous Fiscal Year.
f Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax levied
on an Assessor's Parcel shall be the sum of the Maximum Special Tax for
all Land Use Classes located on that Assessor's Parcel. The CFD
Administrator's allocation to each type of property shall be final.
2. Taxable Property Owner Association Property, Taxable Public Property,
and Undeveloped Property
The Fiscal Year 2005-2006 Maximum Special Tax for Taxable Property Owner
Association Property, Taxable Public Property, and Undeveloped Property in Zone
1 or Zone 2 shall be $16,285 per Acre, and shall increase thereafter, commencing
on July 1,2006 and on July 1 of each Fiscal Year thereafter, by an amount equal to
two percent (2%) of the Maximum Special Tax for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the City
Council shall levy the Special Tax until the amount of Special Taxes levied equals the
Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 and Zone 2 in an amount equal to 100% of the applicable Assigned Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone 1 and Zone 2 at up to 100% of the
applicable Maximum Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, then the levy of the Special Tax on each Assessor's
Parcel of Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is
determined through the application of the Backup Special Tax shall be increased
Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each
such Assessor's Parcel;
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-9
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax shall be levied Proportionately
on each Assessor's Parcel of Taxable Property Owner Association Property and Taxable
Public Property in Zone 1 and Zone 2 at up to the applicable Maximum Special Tax for
Taxable Property Owner Association Property or Taxable Public Property.
Notwithstanding the above the City Council may, in any Fiscal Year, levy
Proportionately less than 100% of the Assigned Special Tax in step one (above), when (i)
the City Council is no longer required to levy the Special Tax pursuant to steps two
through four above in order to meet the Special Tax Requirement; and (ii) all authorized
CFD No. 2004-3 (IA No.1) Bonds have already been issued or the City Council has
covenanted that it will not issue any additional CFD No. 2004-3 (IA No.1) Bonds
(except refunding bonds) to be supported by the Special Tax.
Further notwithstanding the above, under no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which an occupancy permit for
private residential use has been issued be increased by more than ten percent as a
consequence of delinquency or default by the owner of any other Assessor's Parcel
within CFD No. 2004-3 (IA No.1).
E. EXEMPTIONS
No Special Tax shall be levied on up to 127.43 Acres of Property Owner Association
Property and/or Public Property in CFD No. 2004-3 (IA No.1). Tax-exempt status will
be assigned by the CFD Administrator in the chronological order in which property
becomes Property Owner Association Property or Public Property. However, should an
Assessor's Parcel no longer be classified as Property Owner Association Property or
Public Property, its tax-exempt status will be revoked.
Property Owner Association Property or Public Property that is not exempt from Special
Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the fourth step in Section 0 above, at up to 100% of the
applicable Maximum Special Tax for Taxable Property Owner Association Property or
Taxable Public Property.
F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary
ad valorem property taxes; provided, however, that CFD No. 2004-3 (IA No.1) may
directly bill the Special Tax, may collect Special Taxes at a different time or in a different
manner if necessary to meet its financial obligations, and may covenant to foreclose and
may actually foreclose on delinquent Assessor's Parcels as permitted by the Act.
City of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "8"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-10
G. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2004-3 (IA No.1).
The CFD Administrator shall review the appeal and if the CFD Administrator concurs,
the amount of the Special Tax levied shall be appropriately modified.
The City Council may interpret this Rate and Method of Apportionment for purposes of
clarifying any ambiguity and make determinations relative to the annual administration of
the Special Tax and any landowner or resident appeals. Any decision of the City Council
shall be final and binding as to all persons.
H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
"Buildout" means, for CFD No. 2004-3 (IA No.1), that all expected building permits
have been issued.
"CFD Public Facilities" means either $16,190,781 in 2004 dollars, which shall increase
by the Construction Inflation Index on July 1, 2005, and on each July 1 thereafter, or such
lower number as (i) shall be determined by the CFD Administrator as sufficient to
provide the public facilities to be provided by CFD No. 2004-3 (IA No.1) under the
authorized bonding program for CFD No. 2004-3 (IA No. 1), or (ii) shall be determined
by the City Council concurrently with a covenant that it will not issue any more CFD No.
2004-3 (IA No.1) Bonds (except refunding bonds) to be supported by the Special Taxes
levied under this Rate and Method of Apportionment as described in Section D.
"Construction Inflation Index" means the annual percentage change in the Engineering
News Record Building Cost Index for the City of Los Angeles, measured as of the
calendar year which ends in the previous Fiscal Year. In the event this index ceases to be
published, the Construction Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Engineering News Record
Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are
expected to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-11
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal
payment date following the current Fiscal Year.
1. Prepayment in Full
Only an Assessor's Parcel of Developed Property, or Undeveloped Property for
which a building permit has been issued, may be prepaid. The obligation of the
Assessor's Parcel to pay any Special Tax may be permanently satisfied as
described herein, provided that a prepayment may be made with respect to a
particular Assessor's Parcel only if there are no delinquent Special Taxes with
respect to such Assessor's Parcel at the time of prepayment. An owner of an
Assessor's Parcel intending to prepay the Special Tax obligation shall provide the
CFD Administrator with written notice of intent to prepay. Within 30 days of
receipt of such written notice, the CFD Administrator shall notify such owner of
the prepayment amount for such Assessor's Parcel. The CFD Administrator may
charge a reasonable fee for providing this service. Prepayment must be made not
less than 45 days prior to the next occurring date that notice of redemption of
CFD No. 2004-3 (IA No.1) Bonds from the proceeds of such prepayment may be
given by the Trustee pursuant to the Indenture.
The Special Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus
plus
plus
plus
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Capitalized Interest Credit
Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount shall
be calculated as follows:
Para2raph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Undeveloped Property for
which a building permit has been issued, compute the Assigned Special Tax and
Backup Special Tax for that Assessor's Parcel as though it was already designated
as Developed Property, based upon the building permit which has already been
issued for that Assessor's Parcel.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-12
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total
estimated Assigned Special Taxes for the entire CFD No. 2004-3 (IA No.1) based
on the Developed Property Special Taxes which could be levied in the current
Fiscal Year on all expected development through Buildout of CFD No. 2004-3 (IA
No.1), excluding any Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2004-3 (IA
No.1), excluding any Assessor's Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Previously Issued Bonds to compute the amount of Previously Issued Bonds to be
retired and prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price-l00%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
8. Compute the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date following the current
Fiscal Year until the earliest redemption date for the Previously Issued Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Special Tax Prepayment Amount less the
Future Facilities Amount and the Administrative Fees and Expenses (defined
below) from the date of prepayment until the redemption date for the Previously
Issued Bonds to be redeemed with the prepayment.
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the
amount computed pursuant to paragraph 10 (the "Defeasance Amount").
12. The administrative fees and expenses of CFD No. 2004-3 (IA No.1) are as
calculated by the CFD Administrator and include the costs of computation of the
prepayment, the costs to invest the prepayment proceeds, the costs of redeeming
CFD No. 2004-3 (IA No.1) Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption (the "Administrative Fees and
Expenses").
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No. I
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-13
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a)
the expected reduction in the reserve requirement (as defined in the Indenture), if
any, associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirem~t
(as defined in the Indenture) in effect after the redemption of Previously Issued
Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero. No Reserve
Fund Credit shall be granted if the amount then on deposit in the reserve fund for
the Previously Issued Bonds is below 100% of the reserve requirement (as defined
in the Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the larger quotient computed pursuant to paragraph 3(a)
or 3(b) by the expected balance in the capitalized interest fund or account under
the Indenture after such first interest and/or principal payment (the "Capitalized
Interest Credit").
15. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 13 and 14 (the "Prepayment Amount").
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13
and 14 shall be deposited into the appropriate fund as. established under the Indenture and
be used to retire CFD No. 2004-3 (IA No.1) Bonds or make debt service payments. The
amount computed pursuant to paragraph 7 shall be deposited into the Improvement Fund.
The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2004-3 (IA
No.1).
The Special Tax Prepayment Amount may be insufficient to redeem a full $5,000
increment of CFD No. 2004-3 (IA No.1) Bonds. In such cases, the increment above
$5,000 or integral multiple thereof will be retained in the appropriate fund established
under the Indenture to be used with the next prepayment of CFD No. 2004-3 (IA No.1)
Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's
Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to
any Assessor's Parcel that is prepaid, the City Council shall cause a suitable notice to be
recorded in compliance with the Act, to indicate the prepayment of the Special Tax and
the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such
Assessor's Parcel to pay the Special Tax shall cease.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of lake Elsinore Exhibit "8"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-14
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2004-3 (IA No. I) (after excluding 127.43
Acres of Property Owner Association Property and/or Public Property in CFD No. 2004-
3 (IA No.1) as set forth in Section E) both prior to and after the proposed prepayment is
at least equal to the sum of (i) the Administrative Expenses and (ii) 1.10 times maximum
annual debt service, in each remaining Fiscal Year on the Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel
of Undeveloped Property for which a building permit has been issued may be partially
prepaid. The amount of the prepayment shall be calculated as in Section R.I; except that
a partial prepayment shall be calculated according to the following formula:
PP = [(PE - A) x F] + A
These terms have the following meaning:
PP = the partial prepayment.
PE = the Special Tax Prepayment Amount calculated according to Section R.I.
F = the percentage, expressed as a decimal, by which the owner of the Assessor's
Parcel is partially prepaying the Special Tax.
A = the Administrative Fees and Expenses calculated according to Section R.1.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax and the
percentage by which the Special Tax shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment of
the Special Tax for an Assessor's Parcel within 30 days of the request and may charge a
reasonable fee for providing this service. With respect to any Assessor's Parcel that is
partially prepaid, the City Council shall (i) distribute the funds remitted to it according to
Section R.I, and (ii) indicate in the records of CFD No. 2004-3 (IA No.1) that there has
been a partial prepayment of the Special Tax and that a portion of the Special Tax with
respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the
remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel
pursuant to Section D.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No. I
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-15
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty years commencing with
Fiscal Year 2005-2006, provided however that Special Taxes will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest
and principal payments on the CFD No. 2004-3 (IA No.1) Bonds have been paid; and (ii)
all Authorized Facilities have been constructed.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No. I
City of lake Elsinore Exhibit "B"
CFD No. 20()4.3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8016
R
t--
:~
til-
N~
.....
f't)
J.
o
Ow
l"\ta:::
.0
Oz
z-
(I)
t-...J
OW &J'<
-.. ""'0-
~UJ~fi5~
11. en ~j :z ; ft
~ 0- <_:1
.. 00:::<
w . .,,-0
li ~~~o~
N'F ~l=~
:J ~ S~ ~
(.) (.) c::s (I)
<(
L&..W
~F
-tJ...
~O
~
::!
o
o
I I
I!III
i
I ih I;
Iii! Ii
Je I
N
,.,......
111
t--
l'/.
lIJ~
tii-
N~
J;
......
~
<
I-
Z
ILl
~
o
If
iI
I
II I
I Ii
'f
.-1.1
.11
II
I
~l
I
~
'It
I-
G:i
~
~
o
If
l!
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.1
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-17
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT No. 2004-3
IMPROVEMENT AREA No.2 (ROSETTA CANYON)
A Special Tax shall be levied on all Assessor's Parcels in City of Lake Elsinore Community
Facilities District No. 2004-3 (Improvement Area No.2) (Rosetta Canyon) ("CFD No. 2004-3 (IA
No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2005-2006, in an amount
determined through the application of the Rate and Method of Apportionment as described below.
All of the real property in CFD No. 2004-3 (IA No.2), unless exempted by law or by the
provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an
Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the
land area shown on the applicable final map, parcel map, condominium plan, or other
recorded County parcel map.
"Act" means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5,
Division 2 of Title 5 of the California Government Code.
"Administrative Expenses" means the following actual or reasonably estimated costs
directly related to the administration of CFD No. 2004-3 (IA No.2): the costs of
computing the Special Taxes and preparing the annual Special Tax collection schedules
(whether by the City or designee thereof or both); the costs of collecting the Special
Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the
Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties
required of it under the Indenture; the costs to the City, CFD No. 2004-3 (IA No.2) or
any designee thereof of complying with arbitrage rebate requirements; the costs to the
City, CFD No. 2004-3 (IA No.2) or any designee thereof of complying with disclosure
requirements of the City, CFD No. 2004-3 (IA No.2) or obligated persons associated
with applicable federal and state securities laws and the Act; the costs associated with
preparing Special Tax disclosure statements and responding to public inquiries regarding
the Special Taxes; the costs of the City, CFD No. 2004-3 (IA No.2) or any designee
thereof related to an appeal of the Special Tax; the costs associated with the release of
funds from an escrow account; and the City's annual administration fees and third party
expenses. Administrative Expenses shall also include amounts estimated by the CFD
Administrator or advanced by the City or CFD No. 2004-3 (IA No.2) for any other
administrative purposes of CFD No. 2004-3 (IA No.2), including attorney's fees and
other costs related to commencing and pursuing to completion any foreclosure of
delinquent Special Taxes.
"Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an
assigned Assessor's Parcel number.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-18
"Assessor's Parcel Map" means an official map of the County Assessor of the County
designating parcels by Assessor's Parcel nwnber.
"Assigned Special Tax" means the Special Tax for each Land Use Class of Developed
Property in each Zone, as determined in accordance with Section C.l. b. below.
"Authorized Facilities" means those authorized improvements, as listed on Exhibit "A"
to the Resolution of Formation.
"Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of
Developed Property, as determined in accordance with Section C.1.d. below.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement and providing for the levy and collection of the
Special Taxes.
"CFD No. 2004-3" means City of Lake Elsinore Community Facilities District No.
2004-3 (Rosetta Canyon).
"CFD No. 2004-3 (IA No.2)" means Improvement Area NO.2 of CFD No. 2004-3, as
identified on the boundary map for CFD No. 2004-3.
"CFD No. 2004-3 (IA No.2) Bonds" means any bonds or other debt (as defined in
Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2004-3
and secured solely by Special Taxes levied on property within the boundaries of CFD No.
2004-3 (IA No.2) under the Act.
"City" means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the
legislative body ofCFD No. 2004-3 (IA No.2).
"County" means the County of Riverside.
"Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of
Taxable Public Property and Taxable Property Owner Association Property, for which
the Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a
building permit for new construction was issued after January 1, 2004 and on or before
May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being
levied.
"Final Subdivision" means a subdivision of property by recordation of a final map,
parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant
to California Civil Code 1352 that creates individual lots for which building permits may
be issued without further subdivision.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-19
"Fiscal Year" means the period starting July 1 and ending on the following June 30.
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which CFD No. 2004-3 (IA No.2) Bonds are issued, as modified, amended
and/or supplemented from time to time, and any instrument replacing or supplementing
the same.
"Land Use Class" means any of the classes listed in Table 1.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance
with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for
which a building permit permitting the construction of one or more non-residential units
or facilities has been issued by the City.
"Outstanding Bonds" means all CFD No. 2004-3 (IA No.2) Bonds which are deemed
to be outstanding under the Indenture.
"Property Owner Association Property" means, for each Fiscal Year, any property
within the boundaries ofCFD No. 2004-3 (IA No.2) that was owned by a property owner
association, including any master or sub-association, as of January 1 of the prior Fiscal
Year.
"Proportionately" means for Developed Property that the ratio of the actual Special Tax
levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property,
or where the Backup Special Tax is being levied, that the ratio of the actual Special Tax
levy to the Maximum Special Tax is equal for all Assessor's Parcels upon which a Backup
Special Tax is being levied. For Undeveloped Property, "Proportionately" m~s that the
ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is equal
for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may
similarly be applied to other categories of Taxable Property as listed in Section D below.
"Public Property" means property within the boundaries ofCFD No. 2004-3 (IA No.2)
owned by, irrevocably offered or dedicated to, or over, through or under which an
easement for purposes of public right-of-way has been granted, to the federal
government, the State, the County, the City, or any local government or other public
agency, provided that any property leased by a public agency to a private entity and
subject to taxation under Section 53340.1 of the Act shall be taxed and classified
according to its use.
"Residential Floor Area" means all of the square footage of living area within the
perimeter of a residential structure, not including any carport, walkway, garage,
overhang, patio, enclosed patio, or similar area. The determination of Residential Floor
Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued
for such Assessor's Parcel.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) -Improvement Area No.2
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-20
"Residential Property" means all Assessor's Parcels of Developed Property for which a
building permit permitting the construction thereon of one or more residential dwelling
units has been issued by the City.
"Resolution of Formation" means the Resolution of Formation for CFD No. 2004-3 (IA
No.2).
"Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's
Parcel of Developed Property, Taxable Property Owner Association Property, Taxable
Public Property, and Undeveloped Property to fund the Special Tax Requirement.
"Special Tax Requirement" means that amount required in any Fiscal Year for CFD No.
2004-3 (IA No.2) to: (i) pay debt service on all Outstanding Bonds due in the calendar
year commencing in such Fiscal Year, (ii) pay periodic costs on the CFD No. 2004-3 (IA
No.2) Bonds, including but not limited to, credit enhancement and rebate payments on the
CFD No. 2004-3 (IA No.2) Bonds due in the calendar year commencing in such Fiscal
Year; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or
replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated
Special Tax delinquencies based on the delinquency rate for the Special Tax levy in the
previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized
Facilities to the extent that the inclusion of such amount does not increase the Special Tax
levy on Undeveloped Property; less (vii) a credit for funds available to reduce the annual
Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.
"State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the boundaries of CFO
No. 2004-3 (IA No.2) which are not exempt from the Special Tax pursuant to law or
Section E below.
"Taxable Property Owner Association Property" means all Assessor's Parcels of
Property Owner Association Property that are not exempt pursuant to Section E below.
"Taxable Public Property" means all Assessor's Parcels of Public Property that are not
exempt pursuant to Section E below.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means, for each Fiscal Year, all Taxable Property not
classified as Developed Property, Taxable Property Owner Association Property, or
Taxable Public Property.
"Zone" means Zone 1 or Zone 2, as applicable.
"Zone 1" means the land geographically identified within the boundaries of zone 1 as
delineated in Exhibit A to this Rate and Method of Apportionment.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-21
"Zone 2" means the land geographically identified within the boundaries of zone 2 as
delineated in Exhibit A to this Rate and Method of Apportionment.
B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, all Taxable Property within CFD No. 2004-3 (IA No.2) shall be
assigned to a Zone and further classified as Developed Property, Taxable Public Property,
Taxable Property Owner Association Property, or Undeveloped Property, and shall be
subject to Special Taxes in accordance with this Rate and Method of Apportionment
determined pursuant to Sections C and D below. Residential Property shall be assigned
to Land Use Classes 1 through 11 as listed in Table 1 below based on the Residential
Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class
12.
C. MAXIMUM SPECIAL TAX RATE
1. Developed Property
a. Maximum Special Tax
The Maximum Special Tax for each Assessor's Parcel classified as
Developed Property shall be the greater of (i) the amount derived by
application of the Assigned Special Tax or (ii) the amount derived by
application of the Backup Special Tax.
b. Assigned Special Tax
The Assigned Special Tax for each Land Use Class is shown below in
Table 1.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-22
TABLE 1
Assigned Special Taxes for Developed Property
Community Facilities District No. 2004-3
Improvement Area No.2
Fiscal Year 2005-2006
1 Residential Property > 3,950 s.f. $3,271. 79 per unit $3,565.47 per unit
2 Residential Property 3,701 - 3,950 s.f. $3,174.02 per unit $3,504.87 per unit
3 Residential Property 3,451 - 3,700 s.f. $3,076.25 per unit $3,443.77 per unit
4 Residential Property 3,201 - 3,450 s.f. $2,978.48 per unit $3,290.64 per unit
5 Residential Property 2,951 - 3,200 s.f. $2,880.71 per unit $3,172.60 per unit
6 Residential Property 2,701- 2,950 s.f. $2,727.85 per unit $3,055.06 per unit
7 Residential Property 2,451 - 2,700 s.f. $2,659.26 per unit $2,975.78 per unit
8 Residential Property 2,201 - 2,450 s.f. $2,590.67 per unit $2,844.10 per unit
9 Residential Property 1,951 - 2,200 s.f. $2,411.94 per unit $2,770.55 per unit
10 Residential Property 1,700 - 1,950 s.f. $2,353.03 per unit $2,688.11 per unit
11 Residential Property < 1,700 s.f. $2,294.11 per unit $2,590.62 per unit
12 Non-Residential Property NA $17,817 per Acre $16,754 per Acre
c. Increase in the Assigned Special Tax
The Assigned Special Taxes identified in Table 1 above shall be
applicable for Fiscal Year 2005-2006, and shall increase thereafter,
commencing on July 1,2006 and on July 1 of each Fiscal Year thereafter,
by an amount equal to two percent (2%) of the Assigned Special Tax for
the previous Fiscal Year.
d. Backup Special Tax
The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final
Subdivision in Zone 1 or Zone 2 will equal $19,868 multiplied by the
Acreage of all Taxable Property, exclusive of any Taxable Property
Owner Association Property and Taxable Public Property, therein. The
Backup Special Tax for each Assessor's Parcel of Residential Property
shall be computed by dividing the Backup Special Tax attributable to the
applicable Final Subdivision by the number of Assessor's Parcels for
which building permits for residential construction have or may be issued
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) -Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-23
(i.e., the number or residential lots). The Backup Special Tax for each
Assessor's Parcel of Non-Residential Property therein shall equal $19,868
multiplied by the Acreage of such Assessor's Parcel.
If a Final Subdivision includes Assessor's Parcels of Taxable Property for
which building permits for both residential and non-residential
construction may be issued, exclusive of Taxable Property Owner
Association Property and Taxable Public Property, then the Backup
Special Tax for each Assessor's Parcel of Residential Property shall be
computed exclusive of the Acreage and Assessor's Parcels of property for
which building permits for non-residential construction may be issued.
Notwithstanding the foregoing, if all or any portion of the Final
Subdivision(s) described in the preceding paragraphs is subsequently
changed or modified, then the Backup Special Tax for each Assessor's
Parcel of Developed Property in such Final Subdivision area that is changed
or modified shall be a rate per square foot of Acreage calculated as follows:
1. Determine the total Backup Special Taxes anticipated to apply to the
changed or modified Final Subdivision area prior to the change or
modification.
2. The result of paragraph 1 above shall be divided by the Acreage of
Taxable Property which is ultimately expected to exist in such changed
or modified Final Subdivision area, as reasonably determined by the
CFD Administrator.
3. The result of paragraph 2 above shall be divided by 43,560. The result
is the Backup Special Tax per square foot of Acreage which shall be
applicable to Assessor's Parcels of Developed Property in such
changed or modified Final Subdivision area for all remaining Fiscal
Years in which the Special Tax may be levied.
1. Release of Obligation to Pay and Disclose Backup Special
Tax
All Assessors' Parcels within CFD No. 2004-3 (IA No.2)
will be relieved simultaneously and permanently from the
obligation to pay and disclose the Backup Special Tax if
the CFD Administrator determines that the annual debt
service required for the Outstanding Bonds, when
compared to the Assigned Special Taxes that may be levied
against all Assessors' Parcels of Developed Property result
in 110% debt service coverage (i.e., the Assigned Special
Taxes that may be levied against all Developed Property in
each remaining Fiscal Year based on then existing
development in CFD No. 2004-3 (IA No.2) is at least
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of lake Elsinore Exhibit "B"
CFO No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-24
equal to the sum of (i) the Administrative Expenses and (ii)
1. 10 times maximum annual debt service, in each
remaining Fiscal Year on the Outstanding Bonds).
e. Increase in the Backup Special Tax
On each July 1, commencing on July 1, 2006, the Backup Special Tax
shall be increased by an amount equal to two percent (2%) of the Backup
Special Tax for the previous Fiscal Year.
f Multiple Land Use Classes
In some instances an Assessor's Parcel of Developed Property may
contain more than one Land Use Class. The Maximum Special Tax levied
on an Assessor's Parcel shall be the sum of the Maximum Special Tax for
all Land Use Classes located on that Assessor's Parcel. The CFD
Administrator's allocation to each type of property shall be final.
2. Taxable Property Owner Association Property, Taxable Public Property,
and Undeveloped Property
The Fiscal Year 2005-2006 Maximum Special Tax for Taxable Property Owner
Association Property, Taxable Public Property, and Undeveloped Property in Zone
1 or Zone 2 shall be $19,868 per Acre, and shall increase thereafter, commencing
on July 1, 2006 and on July 1 of each Fiscal Year thereafter, by an amount equal to
two percent (2%) of the Maximum Special Tax for the previous Fiscal Year.
D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the City
Council shall levy the Special Tax until the amount of Special Taxes levied equals the
Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows:
First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in
Zone 1 and Zone 2 in an amount equal to 100% of the applicable Assigned Special Tax;
Second: If additional monies are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor's Parcel of Undeveloped Property in Zone 1 and Zone 2 at up to 100% of the
applicable Maximum Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, then the levy of the Special Tax on each Assessor's
Parcel of Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is
determined through the application of the Backup Special Tax shall be increased
Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each
such Assessor's Parcel;
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-25
Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax shall be levied Proportionately
on each Assessor's Parcel of Taxable Property Owner Association Property and Taxable
Public Property in Zone 1 and Zone 2 at up to the applicable Maximum Special Tax for
Taxable Property Owner Association Property or Taxable Public Property.
Notwithstanding the above the City Council may, in any Fiscal Year, levy
Proportionately less than 100% of the Assigned Special Tax in step one (above), when (i)
the City Council is no longer required to levy the Special Tax pursuant to steps two
through four above in order to meet the Special Tax Requirement; and (ii) all authorized
CFD No. 2004-3 (IA No.2) Bonds have already been issued or the City Council has
covenanted that it will not issue any additional CFD No. 2004-3 (IA No.2) Bonds
(except refunding bonds) to be supported by the Special Tax.
Further notwithstanding the above, under no circumstances will the Special Tax levied
against any Assessor's Parcel of Residential Property for which an occupancy permit for
private residential use has been issued be increased by more than ten percent as a
consequence of delinquency or default by the owner of any other Assessor's Parcel
within CFD No. 2004-3 (IA No.2).
E. EXEMPTIONS
No Special Tax shall be levied on up to 74.81 Acres of Property Owner Association
Property and/or Public Property in CFD No. 2004-3 (IA No.2). Tax-exempt status will
be assigned by the CFD Administrator in the chronological order in which property
becomes Property Owner Association Property or Public Property. However, should an
Assessor's Parcel no longer be classified as Property Owner Association Property or
Public Property, its tax-exempt status will be revoked.
Property Owner Association Property or Public Property that is not exempt from Special
Taxes under this section shall be subject to the levy of the Special Tax and shall be taxed
Proportionately as part of the fourth step in Section D above, at up to 100% of the
applicable Maximum Special Tax for Taxable Property Owner Association Property or
Taxable Public Property.
F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary
ad valorem property taxes; provided, however, that CFD No. 2004-3 (IA No.2) may
directly bill the Special Tax, may collect Special Taxes at a different time or in a different
manner if necessary to meet its financial obligations, and may covenant to foreclose and
may actually foreclose on delinquent Assessor's Parcels as permitted by the Act.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2Q04.3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-26
G. APPEALS
Any landowner or resident who feels that the amount of the Special Tax levied on their
Assessor's Parcel is in error may submit a written appeal to CFD No. 2004-3 (IA No.2).
The CFD Administrator shall review the appeal and if the CFD Administrator concurs,
the amount of the Special Tax levied shall be appropriately modified.
The City Council may interpret this Rate and Method of Apportionment for purposes of
clarifYing any ambiguity and make determinations relative to the annual administration of
the Special Tax and any landowner or resident appeals. Any decision of the City Council
shall be final and binding as to all persons.
H. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
"Huildout" means, for CFD No. 2004-3 (IA No.2), that all expected building permits
have been issued.
"CFD Public Facilities" means either $17,514,938 in 2004 dollars, which shall increase
by the Construction Inflation Index on July 1, 2005, and on each July 1 thereafter, or such
lower number as (i) shall be determined by the CFD Administrator as sufficient to
provide the public facilities to be provided by CFD No. 2004-3 (IA No.2) under the
authorized bonding program for CFD No. 2004-3 (IA No.2), or (ii) shall be determined
by the City Council concurrently with a covenant that it will not issue any more CFD No.
2004-3 (IA No.2) Bonds (except refunding bonds) to be supported by the Special Taxes
levied under this Rate and Method of Apportionment as described in Section D.
"Construction Inflation Index" means the annual percentage change in the Engineering
News Record Building Cost Index for the City of Los Angeles, measured as of the
calendar year which ends in the previous Fiscal Year. In the event this index ceases to be
published, the Construction Inflation Index shall be another index as determined by the
CFD Administrator that is reasonably comparable to the Engineering News Record
Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously paid from the Improvement Fund, (ii) moneys currently on deposit in the
Improvement Fund, and (iii) moneys currently on deposit in an escrow fund that are
expected to be available to finance the cost of CFD Public Facilities.
"Improvement Fund" means an account specifically identified in the Indenture to hold
funds which are currently available for expenditure to acquire or construct CFD Public
Facilities eligible under the Act.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-27
"Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are
deemed to be outstanding under the Indenture after the first interest and/or principal
payment date following the current Fiscal Year.
1. Prepayment in Full
Only an Assessor's Parcel of Developed Property, or Undeveloped Property for
which a building permit has been issued, may be prepaid. The obligation of the
Assessor's Parcel to pay any Special Tax may be permanently satisfied as
described herein, provided that a prepayment may be made with respect to a
particular Assessor's Parcel only if there are no delinquent Special Taxes with
respect to such Assessor's Parcel at the time of prepayment. An owner of an
Assessor's Parcel intending to prepay the Special Tax obligation shall provide the
CFD Administrator with written notice of intent to prepay. Within 30 days of
receipt of such written notice, the CFD Administrator shall notify such owner of
the prepayment amount for such Assessor's Parcel. The CFD Administrator may
charge a reasonable fee for providing this service. Prepayment must be made not
less than 45 days prior to the next occurring date that notice of redemption of
CFD No. 2004-3 (IA No.2) Bonds from the proceeds of such prepayment may be
given by the Trustee pursuant to the Indenture.
The Special Tax Prepayment Amount (defined below) shall be calculated as
summarized below (capitalized terms as defined below):
Bond Redemption Amount
plus
plus
plus
plus
less
less
Total: equals
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
Capitalized Interest Credit
Prepayment Amount
As of the proposed date of prepayment, the Special Tax Prepayment Amount shall
be calculated as follows:
Paraeraph No.:
1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax
and Backup Special Tax. For Assessor's Parcels of Undeveloped Property for
which a building permit has been issued, compute the Assigned Special Tax and
Backup Special Tax for that Assessor's Parcel as though it was already designated
as Developed Property, based upon the building permit which has already been
issued for that Assessor's Parcel.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "8"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-28
3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total
estimated Assigned Special Taxes for the entire CFD No. 2004-3 (IA No.2) based
on the Developed Property Special Taxes which could be levied in the current
Fiscal Year on all expected development through Buildout of CFD No. 2004-3 (IA
No.2), excluding any Assessor's Parcels which have been prepaid, and
(b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total
estimated Backup Special Taxes at Buildout for the entire CFD No. 2004-3 (IA
No.2), excluding any Assessor's Parcels which have been prepaid.
4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
Previously Issued Bonds to compute the amount of Previously Issued Bonds to be
retired and prepaid (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the
applicable redemption premium (e.g., the redemption price-lOO%), if any, on the
Previously Issued Bonds to be redeemed (the "Redemption Premium").
6. Compute the current Future Facilities Costs.
7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the
amount determined pursuant to paragraph 6 to compute the amount of Future
Facilities Costs to be prepaid (the "Future Facilities Amount").
8. Compute. the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date following the current
Fiscal Year until the earliest redemption date for the Previously Issued Bonds.
9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal
Year which has not yet been paid.
10. Compute the minimum amount the CFD Administrator reasonably expects to
derive from the reinvestment of the Special Tax Prepayment Amount less the
Future Facilities Amount and the Administrative Fees and Expenses (defined
below) from the date of prepayment until the redemption date for the Previously
Issued Bonds to be redeemed with the prepayment. .
11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the
amount computed pursuant to paragraph 10 (the "Defeasance Amount").
12. The administrative fees and expenses of CFD No. 2004-3 (IA No.2) are as
calculated by the CFD Administrator and include the costs of computation of the
prepayment, the costs to invest the prepayment proceeds, the costs of redeeming
CFD No. 2004-3 (IA No.2) Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption (the "Administrative Fees and
Expenses").
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-29
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a)
the expected reduction in the reserve requirement (as defined in the Indenture), if
any, associated with the redemption of Previously Issued Bonds as a result of the
prepayment, or (b) the amount derived by subtracting the new reserve requirement
(as defined in the Indenture) in effect after the redemption of Previously Issued
Bonds as a result of the prepayment from the balance in the reserve fund on the
prepayment date, but in no event shall such amount be less than zero. No Reserve
Fund Credit shall be granted if the amount then on deposit in the reserve fund for
the Previously Issued Bonds is below 100% of the reserve requirement (as defined
in the Indenture).
14. If any capitalized interest for the Previously Issued Bonds will not have been
expended as of the date immediately following the first interest and/or principal
payment following the current Fiscal Year, a capitalized interest credit shall be
calculated by multiplying the larger quotient computed pursuant to paragraph 3(a)
or 3(b) by the expected balance in the capitalized interest fund or account under
the Indenture after such first interest and/or principal payment (the "Capitalized
Interest Credit").
15. The Special Tax prepayment is equal to the sum of the amounts computed
pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to
paragraphs 13 and 14 (the "Prepayment Amount").
From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13
and 14 shall be deposited into the appropriate fund as established under the Indenture and
be used to retire CFD No. 2004-3 (IA No.2) Bonds or make debt service payments. The
amount computed pursuant to paragraph 7 shall be deposited into the Improvement Fund.
The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2004-3 (IA
No.2).
The Special Tax Prepayment Amount may be insufficient to redeem a full $5,000
increment of CFD No. 2004-3 (IA No.2) Bonds. In such cases, the increment above
$5,000 or integral multiple thereof will be retained in the appropriate fund established
under the Indenture to be used with the next prepayment of CFD No. 2004-3 (IA No.2)
Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
under paragraph 9 (above), the CFD Administrator shall remove the current Fiscal Year's
Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to
any Assessor's Parcel that is prepaid, the City Council shall cause a suitable notice to be
recorded in compliance with the Act, to indicate the prepayment of the Special Tax and
the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such
Assessor's Parcel to pay the Special Tax shall cease.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page B-30
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the
time of such proposed prepayment, the amount of Maximum Special Taxes that may be
levied on Taxable Property within CFD No. 2004-3 (IA No.2) (after excluding 74.81
Acres of Property Owner Association Property and/or Public Property in CFD No. 2004-
3 (IA No.2) as set forth in Section E) both prior to and after the proposed prepayment is
at least equal to the sum of (i) the Administrative Expenses and (ii) 1.10 times maximum
annual debt service, in each remaining Fiscal Year on the Outstanding Bonds.
2. Prepayment in Part
The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel
of Undeveloped Property for which a building permit has been issued may be partially
prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that
a partial prepayment shall be calculated according to the following formula:
PP = [(PE - A) x F) + A
These terms have the following meaning:
PP = the partial prepayment.
PE = the Special Tax Prepayment Amount calculated according to Section H.l.
F = the percentage, expressed as a decimal, by which the owner of the Assessor's
Parcel is partially prepaying the Special Tax.
A = the Administrative Fees and Expenses calculated according to Section H.1.
The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD
Administrator of such owner's intent to partially prepay the Special Tax and the
percentage by which the Special Tax shall be prepaid. The CFD Administrator shall
provide the owner with a statement of the amount required for the partial prepayment of
the Special Tax for an Assessor's Parcel within 30 days of the request and may charge a
reasonable fee for providing this service. With respect to any Assessor's Parcel that is
partially prepaid, the City Council shall (i) distribute the funds remitted to it according to
Section H.1, and (ii) indicate in the records of CFD No. 2004-3 (IA No.2) that there has
been a partial prepayment of the Special Tax and that a portion of the Special Tax with
respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the
remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel
pursuant to Section D.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) -Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-31
I. TERM OF SPECIAL TAX
The Special Tax shall be levied for a period not to exceed forty years commencing with
Fiscal Year 2005-2006, provided however that Special Taxes will cease to be levied in an
earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest
and principal payments on the CFD No. 2004-3 (IA No.2) Bonds have been paid; and (ii)
all Authorized Facilities have been constructed.
city of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon) - Improvement Area No.2
City of Lake Elsinore Exhibit "B"
CFD No. 2004-3 (Rosetta Canyon)
Rate and Method of Apportionment of Special Taxes
December 16, 2004
Page 8-32
.....
...
...
~~
t5l-
N~
-
I")
J.
o
Ow
""0:::
"0
Oz
Z-
(I)
I-....J
OW &J ..c
~..... g~ i
Q. (I).. .:5X ~;~
~ 0- ..c - :::J
- oa::..c
~ (I) 1L. j! l5 ~.
owO... 0
N~Eti.E
00 ($(1)
<(
u..W
jtF=
-La..
~O
2
::!
o
o
I I
i!'1 i
i
I ib I,
I f ij 'j
l~ I
......
!I)
...
4'\/""
"".~
~~
~
""'
N
:i
~
-<
I-
2:
hJ
~
o
If
iI
I
" I
. Ii
. fi-
~J,I
i.n
II
I
~l
i
1ri'
...
N.
w:Q
51-
N~
~
....
~
-<
I-
GJ
~
~
o
f
:!
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area No.2
City of Lake Elsinore
CFD No. 2004-3 (Rosetta Canyon)
EXHIBIT "C"
Property Owner List
March 15, 2005
Page C-1
City of Lake Elsinore
Community Facilities District No. 2004.3
(Rosetta Canyon)
APN
347-110-027
347-120-017
347-120-018
347-120-020
347-120-021
347-120-023
347-330-025
347-330-048
347-340-002
347-340-006
347-340-007
347-340-010
347-340-013
349-240-069
349-400-020
349-400-021
349-410-001
349-410-002
349-410-003
349-410-004
349-410-016
349-420-001
349-420-002
349-430-006
349-430-014
349-430-016
349-430-018
Property Owner List
Owner
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
CENTEX HOMES
Grand Total
Acreage
37.35
6.54
5.69
62.10
12.94
9.35
0.60
9.05
20.14
0.33
18.51
0.64
21.21
0.25
14.69
5.00
3.43
4.51
2)6
2.06
16.47
6.52
11.19
8.94
16.60
1.74
55.04
353.25
Q:\ELSINORE\CFD 2004-3 Rosetta Canyon (Centex)\Reports\Rosetta Cyn cfd 2004-3 rpt-finaLdoc
-
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE)
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY
CERTIFY that the foregoing Ordinance was introduced and read by title only on the 22nd day of
March, 2005, and presented for second reading by title only for adoption on the 12th day of
April, 2005, and approved, by the following roll call vote:
AYES:
COUNCILMEMBERS:
BUCKLEY, HICKMAN, KELLEY,
SCHIFFNER, MAGEE
NOES:
COUNCILMEMBERS:
NONE
ABSENT:
COUNCILMEMBERS:
NONE
n.B~l~ fOUNCILMEMBERS:
, ~S~ CLERK
CITY Of_LAKE ELSINORE
NONE
(SEAL:t .
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE)
I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy
of Ordinance No. 1148 of said Council, and that the same has not been amended or repealed.
D~D:APril 15,2005
0\,-f\.~ I
-~~YCLERK
-t-:lTY OELAKE ELSINORE
(S?AL)