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HomeMy WebLinkAboutOrd. Nos 2004-1114-1135 - ! ORDINANCE NO. 1114 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A PUBLIC SAFETY SPECIAL TAX AND A SPECIAL TAX WHEREAS, on October 14, 2003, the City Council (the "Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2003-50 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2003-2 (Canyon Hills) (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "AcC), to finance a portion of the cost of providing fire and paramedic services (the "Services") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD, and 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 or operate (the "Facilities"), and designating portions of the CFD as Improvement Area A, Improvement Area B, Improvement Area C and Improvement Area D; and WHEREAS, on October 14, 2003, the Council also adopted Resolution No. 2003-51 stating its intention and the necessity to incur bonded indebtedness in the amount of not to exceed $14,000,000, $37,000,000, $13,000,000 and $24,000,000 for Improvement Area A, Improvement Area B, Improvement Area C and Improvement Area D, 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 $14,000,000, $37,000,000, $13,000,000 and $24,000,000 within the boundaries oflmprovement Area A, Improvement Area B, Improvement Area C and Improvement Area D, respectively, of the CFD; and WHEREAS, on November 25, 2003, and continuing on January 13, 2004, this Council held a noticed public hearing as required by law relative to the determination to proceed with the fonnation of the CFD, the rate and method of apportionment and manner of collection of the special tax to be levied within the CFD to pay for the Services and the rate and method of apportion and manner of collection of the special tax to be levied within each Improvement Area to pay the principal and interest on the proposed bonded indebtedness of each Improvement Area of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to 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 of the Improvement Areas of the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-6 detem1ining the validity of prior proceedings and established the CFD; and 45381343.1 WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-7 which called an election within the CFD for January 13, 2004 on the proposition of incurring bonded indebtedness, levying a special tax and setting an appropriations limit; and WHEREAS, on January 13, 2004, an election was held within 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 "Public Safety Special Tax") is levied within the boundaries of the CFD pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to pay all of the costs of providing the Services, periodic costs, and costs of the tax levy and collection, and all other costs. Section 2. A special tax (the "Special Tax") is levied within the boundaries of each Improvement Area of the CFD pursuant to the formulas set forth in Exhibit "B" 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 detemline 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" or Exhibit "B," as applicable. Section 3. All of the collections of the Public Safety Special Tax and Special Tax shall be used as provided for in the Act and Resolution No. 2004-6 of the Council. Section 4. The above authorized Public Safety Special Tax and the 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 Public Safety Special Tax and 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 Public Safety Special Tax and the Special Tax takes effect and shall be in force from and after 30 days from the date of final 45381343.1 - 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. PASSED, APPROVED AND ADOPTED this 13th day of January , 2004. CITY OF LAKE ELSINORE A TrEST: f\ \ .~. '\ '/) (,' ) 1...----~<-<V0"-' o--;>c' l City Clerk of the City of Lake Elsinore APPROVED AS TO FORM: B ., 45381343.1 - STATE OF CALIFORNIA ) ) ss. ) '" COUNTY OF RIVERSIDE I, Vickie Kasad, City Clerk of the City of Lake Elsinore, do hereby certify that the foregoing Ordinance was duly adopted by the City Council of said City at a regular meeting thereof held on the 13th day of January , 2004, and that it was so adopted by the following vote: ABSTAIN: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NONE NONE ( ! NO?\ (1/ j By: '---) '-/'"'(~>,..... /L 0 ~.~<:>------c1' City Clerk of the City of Lake Elsinore AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: - 45381343.1 - STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY I ' CERTIFY that the foregoing Ordinance was introduced and read by title only for adoption on the 13th day of January, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BRINLEY - ~BS'FAIN: COUNCILMEMBERS: ,\~ ) ,1 I ; .-.'...." /1 -Vf2l<i~sib:g~ICLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1114 of said Council, and that the same has not been amended or repealed. DA-1~EI);. January 28, 2004 . '}~ I .;.' t ,'. , i ((/\j.,-",/\-r-;'l,\, ' i l/( ,1......~-'- 1".---; r-.:"i ViCKI kASAD, CITY CLERK CITy OF LAKE ELSINORE (SEAL) EXHIBIT" A" RATE AND METHOD OF APPORTIONMENT OF PUBLIC SAFETY SPECIAL TAX 45381343.1 For this Agenda Packet, see Exhibit B of the CFD Report prepared by Harris & Associates for each Rate and Method of Apportionment ~, 45381343.1 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX (IMPROVEMENT AREA A) (IMPROVEMENT AREA B) (IMPROVEMENT AREA C) (IMPROVEMENT AREA D) For this Agenda Packet, see Exhibit B of the CFD Report prepared by Harris & Associates for each Rate and Method of Apportionment k EI . EXHIBIT "A" City of La e Slnore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page A-1 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) (FIRE AND PARAMEDIC SERVICES) An Annual Special Tax shall be levied on all Undeveloped Property of Community Facilities District No. 2003-2 (Canyon Hills) of the City of Lake Elsinore ("CFD No. 2003-2") in accordance with this rate and method of apportionment of special tax as herein set forth. All of the real property within CFD No. 2003-2, unless exempt by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. SECTION A DEFINTIONS "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 the Assessor's Parcel Map, the land area as shown on the applicable recorded final map or parcel map, or if the land area is not shown on the applicable recorded final map or parcel map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and following of the California Government Code. "Additional Public Safety Special Taxes" means all "Maximum Special Taxes" that would have been collected from developments meeting the criteria for annexation into the Public Safety CFD, as such criteria is described in the Agreement, from "Developed Multi-Family Property" and "Developed Residential Property" that are not included in the Public Safety CFD, as such quoted terms are defined in the Public Safety CFD RMA. "Agreement" means the Public Facilities and Services Financing Agreement between Pardee Homes and the City, dated June 24, 2003. "Annual Special Tax" means the special tax actually levied by CFD No. 2003-2 pursuant to the Act. "Assessor's Parcel" means a lot or parcel shown on the County Assessor's Parcel Map with an assigned assessor parcel number. "Assessor's Parcel Map" means an official map of the County Assessor designating parcels by assessor parcel number. "City" means the City of Lake Elsinore, California. "City Council" means the City Council of the City of Lake Elsinore as the legislative body for CFD No. 2003-2 under the Act. "County" means the County of Riverside, California. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services EXHIBIT "A" City of lake Elsinore CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page A-2 "Exempt Property" means any Assessor's Parcel in CFD No. 2003-2 that: (i) is designated as being exempt from the Annual Special Tax as set forth in Section E herein or (ii) that has been issued a building permit for residential construction by the City on or prior to March 1 preceding the Fiscal Year in which the Annual Special Tax is being levied. "Fire Station" means the eastside fire station located on or near Railroad Canyon Road providing service for the Canyon Hills Development area and other areas of the City as more particularly described in the Agreement. "Fire Station Cooperation Agreement" means the agreement(s) entered into between the City and County Fire for operating and staffing fire stations within the City, including the Fire Station, and funding the costs of such operation and staffing with ad valorem real property taxes, ad valorem real property tax increment, parcel charges or assessments. "Fire Station Operation" means the staffing of the Fire Station as a three-person facility and annual operation and maintenance of the Fire Station. "Fiscal Year" means the period starting July 1 and ending the following June 30. "Holding Fund" means a discrete, interest earning special fund of the City established to hold funds and administered pursuant to the terms of the Agreement. "Maximum Annual Special Tax" means the Maximum Annual Special Tax determined in accordance with Section C that can be levied by CFD No. 2003-2 in any Fiscal Year on an Assessor's Parcel. "Proportionate Amount of Structural Fire Taxes" means the total amount of Structural Fire Taxes generated within the City each Fiscal Year divided by the number of fire stations within the City that are the subject of a Fire Station Cooperation Agreement. "Public Safety CFD" means the "City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services)". "Public Safety CFD RMA" means the rate and method of apportionment of special tax of the Public Safety CFD. "Public Safety CFD Share" equals 83.33% of all "Maximum Special Taxes" levied and collected from "Developed Multi-Family Property" and "Developed Residential Property" as defined in the Public Safety CFD RMA. "Public Safety Services" means police, fire and other related public safety services provided directly by the City or by contract with another public agency including, without limitation, the Fire Station Operation. "Public Safety Special Taxes" means the special taxes authorized to be levied by the Public Safety CFD or any other CFD established by the City to fund Public Safety Services within the area depicted in Exhibit "c" to the Agreement. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services EXHIBIT "A" City of Lake Elsinore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page A-3 "Special Tax Requirement" means the amount required in any Fiscal Year to fund actual Fire Station Operation costs equal to the lesser of: 1. $939,000 (escalating by 2% per Fiscal Year commencing in Fiscal Year 2004-05); or 2. The estimated annual Fire Station Operation costs in the Fiscal Year in which CFD No. 2003-2 special taxes are being levied, less the total of: a. The Proportionate Amount of Structural Fire Taxes estimated to be generated in the Fiscal Year in which CFD No. 2003-2 special taxes are being levied. If the City is unable to enter into a Fire Station Cooperation Agreement to provide for the Fire Station Operation or enters into, but subsequently terminates or modifies such Fire Station Cooperation Agreement so as to reduce or eliminate the amount of Structural Fire Taxes applied to fund, or as a credit against, the Fire Station Operation costs, then the City shall calculate the Proportionate Amount of Structural Fire Taxes pursuant to the Agreement as ifthe Fire Station was subject to a Fire Station Cooperation Agreement that has not been modified or terminated; and b. The Public Safety CFD Share plus 83.33% of the Additional Public Safety Special Taxes that could have been generated in the Fiscal Year in which CFD No. 2003-2 special taxes are being levied; and c. Actual amounts available from the prior Fiscal Year's Public Safety CFD Share after funding the Fire Station Operation costs and all costs of administering the levy as set forth in the resolution of intention to establish CFD No. 2003-2 of the prior Fiscal Year, and Undeveloped Property Annual Special Taxes after funding the Fire Station Operation costs and all costs of administering the levy as set forth in the resolution of intention to establish CFD No. 2003-2 of the prior Fiscal Year; and d. Actual amounts available in the Holding Fund, excluding the funds contributed from CFD No. 90-2. "Structural Fire Taxes" means the ad valorem real property taxes, ad valorem real property tax increment, parcel charges or assessments collected within the City and applied to fund, or as a credit against fire station operation costs, including the Fire Station Operation costs, pursuant to the Fire Station Cooperation Agreement(s). "Undeveloped Property" means all Assessor's Parcels in CFD No. 2003-2 that are not Exempt Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within the CFD No. 2003-2 shall be classified as Undeveloped Property or Exempt Property. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services EXHIBIT "A" City of Lake Elsinore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page A-4 SECTION C MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property for the Fiscal Year 2003-04 shall be $2,741 per Acre. Commencing in the 2003-04Fiscal Year, and each Fiscal Year thereafter, the Maximum Annual Special Tax for Undeveloped Property shall increase by 2% per Fiscal Year. SECTION D METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing in the 2003-04 Fiscal Year, and each Fiscal Year thereafter, the City Council may levy the Annual Special Tax on all Undeveloped Property at up to the Maximum Annual Special Tax rate in order to fund the Special Tax Requirement. The Annual Special Tax levied on an Assessor's Parcel of Undeveloped Property in each Fiscal Year shall equal the lesser of (i) the Maximum Annual Special Tax or (ii) the Special Tax Requirement calculated for the Fiscal Year divided by the total Acreage of Undeveloped Property and multiplied by the Acreage of the Assessor's Parcel. SECTION E EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, and (iv) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses. SECTION F MANNER OF COLLECTION The Annual Special Tax levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The Annual Special Tax when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be continuing lien and shall secure each levy of Annual Special Tax. The lien of the Annual Special Tax shall continue in force and effect until the Annual Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code. SECTION G TERM OF ANNUAL SPECIAL TAX The Annual Special Tax may be levied in perpetuity so long as the Fire Station Operation continues. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services . EXHIBIT "B" City of lake ElSinore CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-1 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) (IMPROVEMENT AREA A) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in Improvement Area A of the City of Lake Elsinore ("City") Community Facilities District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area A, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of Improvement Area A related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area A, and costs otherwise incurred in order to carry out the authorized purposes ofCFD No. 2003-2 relating to Improvement Area A. "Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's Parcel. "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. "Apartment Unit" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 15t preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before March 15t preceding the Fiscal Year in which the Special Tax is being levied. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A EXHIBIT "B" City of Lake Elsinore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-2 "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Backup Annual Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes within Improvement Area A have been pledged. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under the Act. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body ofCFD No. 2003-2, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit was issued on or before March 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as provided for in Section J. "Final Map" 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. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A . EXHIBIT "B" City of Lake Elsinore CFD No. 2003.2 {(Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-3 "Improvement Area A" means Improvement Area A of CFD No. 2003-2, as identified on the boundary map for CFD No. 2003-2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2003-2 within Improvement Area A 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 was issued for any type of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax under step four of Section F, "Proportionately" in step four m.eans that the quotient of (a) Annual Special Tax less the Assigned Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section J for Zone 1 or Zone 2 as applicable. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Single Family Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any of the special taxes authorized to be levied within Improvement Area A by CFD No. 2003-2 pursuant to the Act. "Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A C. f L k EI . EXHIBIT "B" Ity 0 a e slnore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-4 "Taxable Property" means all Assessor's Parcels within Improvement Area A, which are not Exempt Property. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. "Zone" means Zone I or Zone 2. "Zone I" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 2" means a specific geographic area as depicted in Exhibit A attached herein. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement Area A shall be assigned to Zone I or Zone 2 and shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Apartment Property, and each Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based on its Building Square Footage. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax. 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax. city of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-5 SECTION D ASSIGNED ANNUAL SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2003-04 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 1 AND ZONE 2 FOR FISCAL YEAR 2003-04 Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $916 per Unit Single Family Unit 1,175 -1,324 $1,001 per Unit Single Family Unit 1,325 - 1,449 $1,169 per Unit Single Family Unit 1,450 - 1,549 $1,177 per Unit Single Family Unit 1,550 - 1,649 $1,184 per Unit Single Family Unit 1,650 - 1,749 $1,192 per Unit Single Family Unit 1,750 - 1,949 $1,276 per Unit Single Family Unit 1,950 - 2,199 $1,361 per Unit Single Family Unit 2,200 - 2,699 $1,617 per Unit Single Family Unit 2,700 - 2,949 $1,702 per Unit Single Family Unit 2,950 or greater $1,870 per Unit Apartment Unit N/A $600 per Unit Non-Residential Property N/A $5,000 per Acre 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property, City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-6 Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall be $12,223 per Acre for Zone 1 and $22,587 per Acre for Zone 2. 3. Increase in the Assigned Annual Special Tax On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP ANNUAL SPECI~ TAX At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map area shall be determined by (i) summing the product of (a) the Maximum Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area. The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax rate applied shall be the lower of the two Maximum Special Tax rates. The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non- Residential Property or Apartment Property shall be the Maximum Special Tax rate for Undeveloped Property. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the applicable Undeveloped Property rate of the Zone in which. the Assessor's Parcel is located. If an Assessor's Parcel is located in two Zones, the Undeveloped Property Maximum Special Tax rate of each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and the Backup Annual Special Tax of the Assessors Parcel shall equal the total of the two calculated amounts. If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Apartment Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or reasonably expected to be classified as Single Family Property shall be computed exclusive of the allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified as Non-Residential Property or Apartment Property. Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as either Single Family Property, Apartment Property or Non-Residential Property are subsequently changed of modified by recordation of a lot line adjustment or similar instrument, then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual Special Tax that would have been generated if such change did not take place. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-7 On each July 1, commencing July I, 2004, the Backup Annual Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION F METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property in accordance with the following steps: Step One: Step Two: Step Three: Step Four: Step Five: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax rates in Table 1 to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Annual Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Annual Special Tax shall be increased Proportionately from the Assigned Annual Special Tax up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. SECTION G PREPAYMENT OF ANNUAL SPECIAL TAX The following definitions apply to this Section G: "CFD Public Facilities" means $10,900,000 expressed in 2003 dollars, which shall increase by the Construction Inflation Index on July 1,2004, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-8 bonding program for Improvement Area A, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under Improvement Area A. "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Taxes which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes. The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area A in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor's Parcel. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): plus plus plus plus less equals Bond Redemption Amount Redemption Premium Future Facilities Amount Defeasance Cost Administrative Fee Reserve Fund Credit Prepayment Amount City of Lake Elsinore CFD No. 1003-1 (Canyon Hills) - Improvement Area A . EXHIBIT "B" City of Lake Elsinore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-9 As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For an Assessor's Parcel of Developed Property, compute the Assigned Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property, compute the Assigned Annual Special Tax as though is was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute the Assigned Annual Special Tax for that Assessor's Parcel. 2. For each Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the "Bond Redemption Amount". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium. " 5. Compute the Future Facilities Cost. 6. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance Cost." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A C. f L k EI . EXHIBIT "B" Ity 0 a e smore CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-10 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than O. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, and 11 shall be deposited into the appropriate fund as established under the bond indenture and used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 10 shall be retained by Improvement Area A. With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area A that there has been a prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION H PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 6-11 The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG X F The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the extent necessary to reimburse Improvement Area A for uncollected Annual Special Taxes associated with the levy of such Annual Special Taxes, but not later than the 2041-42 Fiscal Year. SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 51.4 Acres for Zone 1 and 6.7 Acres for Zone 2. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-12 Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 51.4 Acres for Zone 1 and 6.7 Acres for Zone 2. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 51.4 Acres for Zone 1 and 6.7 Acres for Zone 2 will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. SECTION K APPEALS Any property owner claiming that the amount or application ofthe Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) ofImprovement Area A shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor ofthe property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area A may collect Annual Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-13 N I tt') o Ow No:: 0.0 Z Z- en I- ...J f3 Uw ~ 0:: W,...N I-~~< en<(...J4I o ...J s: ~ CJ) 0lL. ~ !Z LaJ Z 41 I- >- ~~ ~....-o u- tt: <u ~ La... W - >-j!: I- -tJ... ~o ~ ~ o u ... ('Ill ... c-..a .., & 6 6 6 6 ~ ~ ~ ~ ~ IIIII I ~ X ~ 1 ~ ~ ~ I I ~ IIIII - '1"'" I i I I I I City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area A City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-14 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) (IMPROVEMENT AREA B) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in Improvement Area B of the City of Lake Elsinore ("City") Community Facilities District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area B, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of Improvement Area B related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area B, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2003-2 relating to Improvement Area B. "Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's Parcel. "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. "Apartment Unit" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-15 Tax is being levied, and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Backup Annual Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes within Improvement Area B have been pledged. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under the Act. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body ofCFD No. 2003-2, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as provided for in Section J. "Final Map" 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. 1003-1 (Canyon Hills) - Improvement Area B I . EXHIBIT "B" City of Lake E smore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-16 "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. "Improvement Area B" means Improvement Area B of CFD No. 2003-2, as identified on the boundary map for CFD No. 2003-2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2003-2 within Improvement Area B 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 was issued for any type of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel, as described in Section G. - "Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section J for Zone I, Zone 2 or Zone 3 as applicable. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Single Family Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any of the special taxes authorized to be levied within Improvement Area B by CFD No. 2003-2 pursuant to the Act. "Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-17 does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. "Taxable Property" means all Assessor's Parcels within Improvement Area B, which are not Exempt Property. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. "Zone" means Zone 1, Zone 2 or Zone 3. "Zone 1" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 2" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 3" means a specific geographic area as depicted in Exhibit A attached herein. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS - Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement Area B shall be assigned to Zone 1, Zone 2 or Zone 3 and shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Apartment Property, and each Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based on its Building Square Footage. If an Assessor's Parcel of Developed Property lies within both Zone 2 and Zone 3 it shall be deemed to lie entirely within Zone 3 and shall be subject to the Assigned Nnnual Special Tax rates for Zone 3. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ({Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-18 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax. SECTION D ASSIGNED ANNUAL SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2003-04 shall be determined pursuant to Tables 1 and 2 below. TABLE 1 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 1 AND ZONE 2 FOR FISCAL YEAR 2003-04 - Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $1,025 per Unit Single Family Unit 1,175 - 1,324 $1,116 per Unit Single Family Unit 1,325 - 1,549 $1,264 per Unit Single Family Unit 1,550 - 1,649 $1,355 per Unit- Single Family Unit 1,650 - 1,749 $1,445 per Unit Single Family Unit 1,750 - 1,949 $1,497 per Unit Single Family Unit 1,950 - 2,199 $1,548 per Unit Single Family Unit 2,200 - 2,449 $1,730 per Unit Single Family Unit 2,450 - 2,699 $1,821 per Unit Single Family Unit 2,700 - 2,949 $1,913 per Unit Single Family Unit 2,950 or greater $2,094 per Unit Apartment Unit N/A $600 per Unit Non-Residential Property N/A $5,000 per Acre City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B k EI . EXHIBIT "B" City of La e smore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-19 TABLE 2 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 3 FOR FISCAL YEAR 2003-04 Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $807 per Unit Single Family Unit 1,175 - 1,324 $898 per Unit Single Family Unit 1,325 - 1,549 $1,046 per Unit Single Family Unit 1,550 - 1,649 $1,137 per Unit Single Family Unit 1,650 - 1,749 $1,227 per Unit Single Family Unit 1,750 - 1,949 $1,279 per Unit Single Family Unit 1,950 - 2,199 $1,316 per Unit Single Family Unit 2,200 - 2,449 $1,489 per Unit Single Family Unit 2,450 - 2,699 $1,575 per Unit Single Family Unit 2,700 - 2,949 $1,705 per Unit Single Family Unit 2,950 or greater $1,876 per Unit Apartment Unit N/A $600 per Unit Non-Residential Property N/A $5,000 per Acre 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall be $35,825 per Acre for Zone 1, $13,297 per Acre for Zone 2 and $11,940 per Acre for Zone 3. 3. Increase in the Assigned Annual Special Tax On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B k EI . EXHIBIT "B" City of La e slnore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-20 SECTION E BACKUP ANNUAL SPECIAL TAX At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map area shall be determined by (i) summing the product of (a) the Maximum Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area. The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax rate applied shall be the lower of the two Maximum Special Tax rates. - The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non- Residential Property or Apartment Property shall be the Maximum Special Tax rate for Undeveloped Property. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the applicable Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an Assessor's Parcel is located in two Zones, the Undeveloped Property Maximum Special Tax rate of each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and the Backup Annual Special Tax of the Assessors Parcel shall equal the total of the two calculated amounts. If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Apartment Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or reasonably expected to be classified as Single Family Property shall be computed exclusive of the allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified as Non-Residential Property or Apartment Property. Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as either Single Family Property, Apartment Property or Non-Residential Property are subsequently changed of modified by recordation of a lot line adjustment or similar instrument, then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1, 2004, the Backup Annual Special Tax rate shall be increased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year. SECTION F METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property in accordance with the following steps: City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ({Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-21 Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax rates in Tables 1 and 2 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Annual Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Annual Special Tax shall be increased Proportionately from the Assigned Annual Special Tax up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax Requirement. - Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. SECTION G PREPAYMENT OF ANNUAL SPECIAL TAX The following definitions apply to this Section G: "CFD Public Facilities" means $30,300,000 expressed in 2003 dollars, which shall increase by the Construction Inflation Index on July 1,2004, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for Improvement Area B, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under Improvement Area B. City of Lake Elsinore CFD No. 1003-1 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFO No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-22 "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Taxes which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes. - The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area B in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor's Parcel. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): plus plus plus plus less equals Bond Redemption Amount Redemption Premium Future Facilities Amount Defeasance Cost Administrative Fee Reserve Fund Credit Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For an Assessor's Parcel of Developed Property, compute the Assigned Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property, compute the Assigned Annual Special Tax as though is was already designated as Developed Property based upon the building permit issued or expected to be issued for City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-23 that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute the Assigned Annual Special Tax for that Assessor's Parcel. 2. For each Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the "Bond Redemption Amount". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium." 5. Compute the Future Facilities Cost. 6. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance Cost." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area B City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-24 a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than O. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, and 11 shall be deposited into the appropriate fund as established under the bond indenture and used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 10 shall be retained by Improvement Area B. With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area B that there has been a prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes shall cease. - Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION H PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG x F The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-25 With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the extent necessary to reimburse Improvement Area B for uncollected Annual Special Taxes associated with the levy of such Annual Special Taxes, but not later than the 2043-44 Fiscal Year. - SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 27.4 Acres for Zone 1,56.6 Acres for Zone 2 and 31.0 Acres for Zone 3. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 27.4 Acres for Zone 1, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 27.4 Acres for Zone 1,56.6 Acres for Zone 2 and 31.0 Acres for Zone 3 will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-26 SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) ofImprovement Area B shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. Ifthe representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor ofthe property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area B may collect Annual Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-27 N I tt') o Ow No::: -0 Oz Z- OO f- ...J (I) o w ~ - 0 a::: 1J.J _N f-~CIl 00 < ::I < 25 ...J :i: ~ z (/) I.&.. ~g~ 1J.J0zw - ::e f->-~~ ...J J- "-" 0 0- 0::: <(0 ~ l.L. 1J.J - >-iE f- -I.&.. ~O ::E ::E o o .. CO! ... CO! l') 6 6 ! ! ! I I I I I IIIII I .. H ... H l') .1: J: da cL da I I I I I IIIII ~I i I . I I City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area B City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ({Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-28 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) (IMPROVEMENT AREA C) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in Improvement Area C of the City of Lake Elsinore ("City") Community Facilities District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area C, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of Improvement Area C related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area C, and costs otherwise incurred in order to carry out the authorized purposes ofCFD No. 2003-2 relating to Improvement Area C. "Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's Parcel. "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. "Apartment Unit" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. City of Lake ELsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of Lake Elsinore EXHIBIT "B" CFO No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-29 "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Backup Annual Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes within Improvement Area C have been pledged. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. - "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under the Act. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2003-2, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as provided for in Section 1. "Final Map" 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. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C k EI . EXHIBIT "B" City of La e smore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-30 "Improvement Area C" means Improvement Area C of CFD No. 2003-2, as identified on the boundary map for CFD No. 2003-2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2003-2 within Improvement Area C 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 was issued for any type of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section J for Zone 1 or Zone 2 as applicable. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Single Family Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any of the special taxes authorized to be levied within Improvement Area C by CFD No. 2003-2 pursuant to the Act. "Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-31 - "Taxable Property" means all Assessor's Parcels within Improvement Area C, which are not Exempt Property. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. "Zone" means Zone 1 or Zone 2. "Zone 1" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 2" means a specific geographic area as depicted in Exhibit A attached herein. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS - Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement Area C shall be assigned to Zone 1 or Zone 2 and shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Apartment Property, and each Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based on its Building Square Footage. If an Assessor's Parcel of Developed Property lies within both Zone 1 and Zone 2 it shall be deemed to lie entirely within Zone 2 and shall be subject to the Assigned Annual Special Tax rates for Zone 2. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax. 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C - City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-32 SECTION D ASSIGNED ANNUAL SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2003-04 shall be determined pursuant to Tables 1 and 2 below. TABLE 1 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 1 FOR FISCAL YEAR 2003-04 Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $1,107 per Unit Single Family Unit 1,175 -1,324 $1,205 per Unit Single Family Unit 1,325 - 1,549 $1,365 per Unit Single Family Unit 1,550 - 1,649 $1,463 per Unit Single Family Unit 1,650 - 1,749 $1,561 per Unit Single Family Unit 1,750 - 1,949 $1,617 per Unit Single Family Unit 1,950 - 2,199 $1,668 per Unit Single Family Unit 2,200 - 2,449 $1,859 per Unit Single Family Unit 2,450 - 2,699 $1,974 per Unit Single Family Unit 2,700 - 2,949 $2,002 per Unit Single Family Unit 2,950 or greater $2,146 per Unit Apartment Unit N/A $600 per Unit Non- Residential Property N/A $5,000 per Acre City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-33 TABLE 2 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 2 FOR FISCAL YEAR 2003-04 - Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $872 per Unit Single Family Unit 1,175 -1,324 $970 per Unit Single Family Unit 1,325 - 1,549 $1,130 per Unit Single Family Unit 1,550 - 1,649 $1,228 per Unit Single Family Unit 1,650 - 1,749 $1,326 per Unit Single Family Unit 1,750 - 1,949 $1,381 per Unit Single Family Unit 1,950 - 2,199 $1,451 per Unit Single Family Unit 2,200 - 2,449 $1,642 per Unit Single Family Unit 2,450 - 2,699 $1,756 per Unit Single Family Unit 2,700 - 2,949 $1,785 per Unit Single Family Unit 2,950 or greater $1,928 per Unit Apartment Unit N/A $600 per Unit Non-Residential Property N/A $5,000 per Acre 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall be $12,241 per Acre for Zone 1 and $11,493 per Acre for Zone 2. 3. Increase in the Assigned Annual Special Tax On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area C City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-34 SECTION E BACKUP ANNUAL SPECIAL TAX At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map area shall be determined by (i) summing the product of (a) the Maximum Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area. The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax rate applied shall be the lower of the two Maximum Special Tax rates. - The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non- Residential Property or Apartment Property shall be the Maximum Special Tax rate for Undeveloped Property. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the applicable Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an Assessor's Parcel is located in two Zones, the Undeveloped Property Maximum Special Tax rate of each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and the Backup Annual Special Tax of the Assessors Parcel shall equal the total of the two calculated amounts. If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Apartment Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or reasonably expected to be classified as Single Family Property shall be computed exclusive of the allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified as Non-Residential Property or Apartment Property. Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as either Single Family Property, Apartment Property or Non-Residential Property are subsequently changed of modified by recordation of a lot line adjustment or similar instrument, then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1,2004, the Backup Annual Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION F METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property in accordance with the following steps: City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ({Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-35 Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax rates in Tables 1 and 2 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Annual Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Annual Special Tax shall be increased Proportionately from the Assigned Annual Special Tax up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax Requirement. - Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. SECTION G PREPAYMENT OF ANNUAL SPECIAL TAX The following definitions apply to this Section G: "CFD Public Facilities" means $10,300,000 expressed in 2003 dollars, which shall increase by the Construction Inflation Index on July 1,2004, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for Improvement Area C, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under Improvement Area C. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-36 "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Taxes which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes. - The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area C in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor's Parcel. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): plus plus plus plus less equals Bond Redemption Amount Redemption Premium Future Facilities Amount Defeasance Cost Administrative Fee Reserve Fund Credit Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For an Assessor's Parcel of Developed Property, compute the Assigned Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property, compute the Assigned Annual Special Tax as though is was already designated as Developed Property based City of Lake Elsinore CFD No. 1003-1 (Canyon Hills) - Improvement Area C City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-37 upon the building permit issued or expected to be issued for that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute the Assigned Annual Special Tax for that Assessor's Parcel. 2. For each Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the "Bond Redemption Amount". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium." 5. Compute the Future Facilities Cost. 6. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance Cost." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." II. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area C City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-38 Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than O. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, and 11 shall be deposited into the appropriate fund as established under the bond indenture and used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 10 shall be retained by Improvement Area C. With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area C that there has been a prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION H PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG x F The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-39 With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the extent necessary to reimburse Improvement Area C for uncollected Annual Special Taxes associated with the levy of such Annual Special Taxes, but not later than the 2045-46 Fiscal Year. SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 5.4 Acres for Zone 1 and 58.2 Acres for Zone 2. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 5.4 Acres for Zone 1 and 58.2 Acres for Zone 2. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 5.4 Acres for Zone 1 and 58.2 Acres for Zone 2 will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-40 SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of Improvement Area C shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor ofthe property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area C may collect Annual Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-41 - N I tt) o OLtJ No::: O~ z- CJ) ..... ...J (I) o LtJ ~ - 0 a::: LtJ ...... N ..... ~ ~ < ~<_I.IJ o ...J :I: ~ CJ) LL Z I- wO~i5 i= >- <S~ ~J--O 0- a: <eO ~ lL. LtJ - >-F!: ..... -lL. ~O ~ ~ o o i 1 I ~ 1 I I I I I IIIII ... COol ... COol II) 6 6 c!. c!. c!. I I I I I IIIII I '1\' I i . i I City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area C City of lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-42 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-2 OF THE CITY OF LAKE ELSINORE (CANYON HILLS) (IMPROVEMENT AREA D) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in Improvement Area D of the City of Lake Elsinore ("City") Community Facilities District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area D, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of Improvement Area D related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area D, and costs otherwise incurred in order to carry out the authorized purposes ofCFD No. 2003-2 relating to Improvement Area D. "Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's Parcel. "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. "Apartment Unit" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-43 Tax is being levied, and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Backup Annual Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes within Improvement Area D have been pledged. - "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under the Act. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body ofCFD No. 2003-2, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as provided for in Section 1. "Final Map" 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. 2003-2 (Canyon Hills) - Improvement Area D City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-44 "Fiscal Year" means the period commencing on July I of any year and ending the following June 30. "Improvement Area D" means Improvement Area D of CFD No. 2003-2, as identified on the boundary map for CFD No. 2003-2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2003-2 within Improvement Area D 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 was issued for any type of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel, as described in Section G. - "Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section J for Zone 1, Zone 2 or Zone 3 as applicable. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Single Family Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any of the special taxes authorized to be levied within Improvement Area D by CFD No. 2003-2 pursuant to the Act. "Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-45 does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. "Taxable Property" means all Assessor's Parcels within Improvement Area A, which are not Exempt Property. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. "Zone" means Zone 1, Zone 2 or Zone 3. "Zone 1" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 2" means a specific geographic area as depicted in Exhibit A attached herein. "Zone 3" means a specific geographic area as depicted in Exhibit A attached herein. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS - Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement Area D shall be assigned to Zone 1, Zone 2 or Zone 3 and shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Apartment Property, and each Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based on its Building Square Footage. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax. 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D - City of lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-46 SECTION D ASSIGNED ANNUAL SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2003-04 shall be determined pursuant to Table I below. TABLE 1 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY WITHIN ZONE 1,ZONE 2 AND ZONE 3 FOR FISCAL YEAR 2003-04 Land Use Type Building Square Footage Rate Single Family Unit Less than 1,175 $1,120 per Unit Single Family Unit 1,175 -1,324 $1,223 per Unit Single Family Unit 1,325 - 1,449 $1,428 per Unit Single Family Unit 1,450 - 1,549 $1,473 per Unit Single Family Unit 1,550 - 1,649 $1,517 per Unit Single Family Unit 1,650 - 1,749 $1,562 per Unit Single Family Unit 1,750 - 1,949 $1,606 per Unit Single Family Unit 1,950 - 2,199 $1,651 per Unit Single Family Unit 2,200 - 2,449 $1,856 per Unit Single Family Unit 2,450 - 2,699 $1,959 per Unit Single Family Unit 2,700 - 2,949 $2,019 per Unit Single Family Unit 2,950 - 3,299 $2,173 per Unit Single Family Unit 3,300 - 3,649 $3,219 per Unit Single Family Unit 3,650 or greater $3,733 per Unit Apartment Unit N/A $600 per Unit Non-Residential Property N/A $5,000 per Acre City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) -Improvement Area D City of lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-47 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall be $14,068 per Acre for Zone 1, $6,907 per Acre for Zone 2 and $41,467 per Acre for Zone 3. 3. Increase in the Assigned Annual Special Tax On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP ANNUAL SPECIAL TAX - At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map area shall be determined by (i) summing the product of (a) the Maximum Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area. The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's Parcel is located in two Zones, the Maximum Special Tax rate applied shall be the lower of the two Maximum Special Tax rates. The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non- Residential Property or Apartment Property shall be the Maximum Special Tax rate for Undeveloped Property. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the applicable Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an Assessor's Parcel is located in two Zones, the Undeveloped Property Maximum Special Tax rate of each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and the Backup Annual Special Tax ofthe Assessors Parcel shall equal the total of the two calculated amounts. If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Apartment Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or reasonably expected to be classified as Single Family Property shall be computed exclusive of the allocable portion oftotal Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified as Non-Residential Property or Apartment Property. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-48 Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as either Single Family Property, Apartment Property or Non-Residential Property are subsequently changed of modified by recordation of a lot line adjustment or similar instrument, then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1,2004, the Backup Annual Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION F METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property in accordance with the following steps: Step One: Step Two: - Step Three: Step Four: Step Five: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax rates in Table 1 to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Annual Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Annual Special Tax shall be increased Proportionately from the Assigned Annual Special Tax up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax Requirement. If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel ofProvisiona1 Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-49 SECTION G PREPAYMENT OF ANNUAL SPECIAL TAX The following definitions apply to this Section G: "CFD Public Facilities" means $19,200,000 expressed in 2003 dollars, which shall increase by the Construction Inflation Index on July 1,2004, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for Improvement Area D, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under Improvement Area 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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Taxes which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes. The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area D in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the Prepayment Amount of such Assessor's Parcel. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-50 The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): plus plus plus plus less equals Bond Redemption Amount Redemption Premium Future Facilities Amount Defeasance Cost Administrative Fee Reserve Fund Credit Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For an Assessor's Parcel of Developed Property, compute the Assigned Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property, compute the Assigned Annual Special Tax as though is was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute the Assigned Annual Special Tax for that Assessor's Parcel. 2. For each Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax computed pursuant to paragraph I for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the "Bond Redemption Amount". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium. " 5. Compute the Future Facilities Cost. 6. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-51 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance Cost." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than O. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, and 11 shall be deposited into the appropriate fund as established under the bond indenture and used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 10 shall be retained by Improvement Area D. With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area D that there has been a prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D C f L k EI . EXHIBIT "B" ity 0 a e Slnore CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page B-52 SECTION H PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Approved Property or Undeveloped Property for which a building permit has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = PG x F The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the extent necessary to reimburse Improvement Area D for uncollected Annual Special Taxes associated with the levy of such Annual Special Taxes, but not later than the 2046-47 Fiscal Year. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003-2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-53 SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 60.8 Acres for Zone 1,40.1 Acres for Zone 2 and 5.2 Acres for Zone 3. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 60.8 Acres for Zone 1, 40.1 Acres for Zone 2 and 5.2 Acres for Zone 3. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 60.8 Acres for Zone 1,40.1 Acres for Zone 2 and 5.2 Acres for Zone 3 will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. SECTION K APPEALS Any property owner claiming that the amount or application ofthe Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of Improvement Area D shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area D may collect Annual Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D City of Lake Elsinore EXHIBIT "B" CFD No. 2003.2 ((Canyon Hills) Rate and Method of Apportionment of Special Taxes October 9, 2003 Page 8-54 - N I t') o Ol.&J No:;: 0.0 Z z- CJ) ~Gi ~ a::: l.&J _2 ..... ~ ~ c( ~< _UJ o ...J J: ~ CJ)LL. 0 ~ ~ L&J % UJ ~ >- <S~ ~............o u- 0::: <(u ~ La.. l.&J - >-iE ..... -LL. 50 :2 :2 o U 1 ~ 1 ~ ~ ~ I I I I IIIII ... C\l .. C\l II) 6 6 c!a c!a c!a I I I I I IIIII I ~I i I i I City of Lake Elsinore CFD No. 2003-2 (Canyon Hills) - Improvement Area D ORDINANCE NO. 1115 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO.5 (LA LAGUNA PHASE II) AND ANNEXATION AREA NO.6 (VILLA MARTINIQUE) ANNEXED TO SAID DISTRICT WHEREAS, on January 13, 2004, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 48 stating its intention to annex certain property ("Annexation Area No.5 (La Laguna Phase II)") into City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, on January 13, 2004, the Council adopted Resolution No. 49 stating its intention to annex certain property ("Annexation Area No. 6 (Villa Martinique)") into the District pursuant to the Act; and - WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) into the District; and WHEREAS, on February 24,2004 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No. 5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) to finance certain public services; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 5 (La Laguna Phase II) and Annexation Area No. 6 (Villa Martinique) were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-~ determining the validity of prior proceedings relative to the annexation of Annexation Area No. S (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique), annexed Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) into the District and authorized the levy of a special tax within Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique); and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-JL which called an election within Annexation Area No. 5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) for February 24,2004 on the proposition of levying a special tax; and 45367598.1 WHEREAS, on February 24, 2004 an election was held within each Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) in which the eligible electors approved by more than two-thirds vote the proposition of levying a special tax; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: Section 1. A special tax is levied within the boundaries of Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to fmance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) prior to the annexation of Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) into the District, periodic costs, and costs of the tax levy and collectiolJ.. . Section 2. 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 next fiscal year, 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 Resolution No. 2004-l of the Council. Section 4. The above authorized 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. 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. 45367598.1 2 INTRODUCED AND APPROVED UPON FIRST READING this 24th day of February, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, SCHIFFNER, KELLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS; NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 9th day of March, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MEGEE, KELLEY, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE AfST: . 2tJ}~ L~) VICKI KASAD, CMC, CIty CLERK! HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE APPROVED AS TO LEGAL FORM: EXHIBIT "A" BEFORE THE CITY COUNCIL-OF THE CITY OF LAKE ELSINORE IN ITS CAP ACITY AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) IN THE MATTER OF Authorizing the Levy of a Special Tax Within Annexation Area No.5 (La Laguna Phase II) and Annexation Area No. 6 (Villa Martinique) Annexed to City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) ) ORDINANCE NO. 2004 -11 \,{ SUMMARY ) ) ) ) ) ) The ordinance authorizes levy of an annual special tax within Annexation Area No.5 (La Laguna Phase II) and Annexation Area No. 6 (Villa Martinique) annexed to City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District"), collected in the same manner as ordinary ad valorem taxes, in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No. 5 (La Laguna Phase II) and Annexation Area No. 6 (Villa Martinique) prior to the annexation of Annexation Area No.5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique) to the District, which is necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within Annexation Area No. 5 (La Laguna Phase II) and Annexation Area No.6 (Villa Martinique). DATED: Jv\ D-.i- c\r- . 15 - 45367598.1 ,2004 CITY OrAKE E~SINORE By: 20'G~" ~J Vicki Kasad, City C erk 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 24th day of February, 2004, and presented for second reading by title only for adoption on the 9th day of March, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE SENT: COUNCILMEMBERS: NONE NONE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 1115 of said Council, and that the same has not been amended or repealed. - erA D: March 1.5' 2004 , tJJ . )/ J CA.- lr~d_ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1116 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, REPEALING SECTION 2.46 OF THE LAKE ELSINORE MUNICIPAL CODE AND ADOPTING A NEW SECTION 2.46 RELATING TO THE PUBLIC SAFETY ADVISORY COMMISSION. WHEREAS, the City of Lake Elsinore first established a Public Safety Commission in 1984; and WHEREAS, the Public Safety Commission has been inactive since about 1988; and WHEREAS, the Lake Elsinore City Council now desires to revise and reactivate the Commission, as the Public Safety Advisory Commission. NOW, THEREFORE, the Lake Elsinore City Council does hereby repeal in its entirety, Section 2.46 of the Lake Elsinore Municipal Code; and replaced Section 2.46 as follows: . SECTION 2.46.010 - DEFINITION. "Public Safety" is that which is related to Police, Fire, Code Enforcement Services and civil disaster within the City of Lake Elsinore. SECTION 2.46.020 - CREATION OF A PUBLIC SAFETY ADVISORY COMMISSION. A Public Safety Advisory Commission is established. SECTION 2.46.030 - MEMBERSHIP. The Public Safety Advisory Commission shall consist of five members. Members of the Public Safety Advisory Commission shall: (1) reside within the City of Lake Elsinore; or (2) be an owner of a business that is established and currently licensed inside the City of Lake Elsinore. Members shall be subject to routine background check to be administered by the Police Department. SECTION 2.46.040 - APPOINTMENT - REMOVAL. The Members of the Public Safety Advisory Commission shall be appointed by each member of the City Council and may be removed at hislher pleasure, but subject to the approval by the majority vote of the City Council. Upon its creation the Mayor shall select the Chairman of the Commission. The initial term of the Chairman shall run through December 31, 2004, at which time the Chairman shall be selected by a majority vote of the membership of the Commission. Page Two - Ordinance No. 1116 SECTION 2.46.050 - TERM OF OFFICE. The Members of the Public Safety Advisory Commission shall be appointed for a term of two years, said two year term shall commence on July I ofthe respective year in which appointed. Those members of the Public Safety Advisory Commission serving as of the date of this amendment shall serve until July I, 2006, except for the Chairman and Vice-Chairman, whose initial terms would run until December 31, 2004. All members are subject to potential re- appointment pursuant to Section 2.46.040. SECTION 2.46.060 - DUTIES AND RESPONSIBILITIES. A. The Commission shall serve as a conduit of information from the residents and business people of Lake Elsinore to their Public Safety, Code Enforcement and Emergency Services Professionals. B. The Commission shall serve as an additional set of eyes and ears that shall complement staff s efforts in their attempt to be proactive. C. The Commission shall create and maintain a link on the City's web site encouraging citizens input and providing a complaint or contact form, which may be submitted, on-line. D. The Commission shall seek out additional input and maintain a dialogue with various City organizations including but not limited to Lake Elsinore Marine Search and Rescue, Neighborhood Watch Groups, Homeowners' Associations, the Chamber of Commerce and the Downtown Merchants Association, etc. E. The Commission shall report to the City Council on a regular basis, and all recommendations shall be forwarded to the City Council for consideration. F. The Commission shall consider assisting the City Council, City Manager or other Public Safety Professionals with disaster preparedness and crisis management. G. The Commission shall consider and evaluate the cost and benefits of creating a Citizens' Action Patrol. Page Three - Ordinance No. 1116 H. The Commission shall actively and aggressively seek out funding programs such as grants to fund Public Safety related programs, projects and equipment needs for the City of Lake Elsinore. 1. The Commission shall limit its activities to those enumerated above. However, the Commission may request of the City Council additional duties and responsibilities (i.e. changes to Section 2.46 of the LEMC). Such requests may be granted by a majority vote of the City Council. SECTION 2.46.070 - MEETINGS. A. The Commission shall be subject to the laws governing public agencies and a quorum must be present in order to hold a meeting or take any action. B. Printed agendas and backup material shall be prepared for each meeting. C. Minutes of each meeting shall be prepared and distributed to all City Council Members and available upon request for public review at City Hall or on the City's website. D. If a Commissioner cannot attend a meeting or is going to be late, he/she shall contact the City Manager's Office. Failure to be present at four regularly scheduled meetings in anyone calendar year may be cause for removal from the Commission by the Mayor and City Council. E. The Commission shall be authorized to meet as often as twice a month, but not less than once a quarter. F. The Chief of Police and the Fire Chief or a member of their respective staffs may attend the regularly scheduled meetings, but are not voting members of the Commission. SECTION 2.46.080 - OBLIGATIONS AND EXPENSES. The Public Safety Advisory Commission shall incur no obligations or expenses of any kind, without obtaining prior written authorization and approval by the City Council. Page Four - Ordinance No. 1116 SECTION 2.46.090 - TERMINATION. The Commission may be terminated at any time by a simple majority vote of the City Council. EFFECTIVE DATE: This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 9th day of March, 2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, BUCKLEY NOES: COUNCILMEMBERS: SCHIFFNER ABSENT: COUNCILMEMBERS: NONE ABSTAIN: . COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 23rd day of March ,2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ATTEST: EY, MAYOR LAKE ELSINORE Page Five - Ordinance No. 1116 iiL ~<>vc\ VICKI KASAD, CMC, CITY CLERK! HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE APPROVED AS TO LEGAL FORM: ~7', BARBARA L~~LD, CITY ATTORNEY CITY OF LAKE ELSINORE 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 gthday of March, 2004, and presented for second reading by title only for adoption on the 23rd day of March, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE (~v iOUNCILMEMBERS VICKI KAS~CLERK CITY OF LAKE ELSINORE NONE (SEAL) STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 1116 of said Council, and that the same has not been amended or repealed. CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1117 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2003-02 CHANGING THE ZONING DESIGNATION OF A PARCEL SPECIFICALLY DESCRIBED AS APN (S) 363-240-002, 003, 004, 008, 009 AND 016 FROM R-l SINGLE FAMILY RESIDENTIAL DISTRICT TO R-2 MEDIUM DENSITY RESIDENTIAL DISTRICT UNDER THE ZONING ORDINANCE WHEREAS, Daigle Homes LLC, has initiated proceedings to change the zoning designation of the subject parcels known as APN(s) 363-240-002, 003, 004, 008, 009 and 016 from R-1 Single Family Residential District to R-2 Medium Density Residential District;. WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on January 20, 2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2003-02 by adopting Planning Commission Resolution No. 2004-03 recommending to the City Council approval of Zone Change No. 2003-02; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on March 09, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Zone Change No. 2003-02, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004-01 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project and recommends City Council certification, based upon the following findings and determinations: SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Zone Change No. 2003-02 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. City Council Ordinance No. 1117 Page 2 The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issue identified by staff relates to the traffic impacts of the proposed density. Staff, concluded, based on the Traffic Impact Report, that the Level of Service for the intersections in the Study Area will not be degraded as a result of this project. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the subject condominium project is consistent with GOAL 1.0 of the General Plan Housing Element, obligating the City to provide "decent housing opportunities and a satisfYing living environment for residents of Lake Elsinore ". SECTION TWO: ZONING RECLASSIFICATION This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: Assessor's Parcel Numbers 363-240-002, 003, 004, 008, 009 AND 016: TO R-2 MEDIUM DENSITY RESIDENTIAL DISTRICT UNDER THE ZONING ORDINANCE UNDER THE ZONING ORDINANCE Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. City Council Ordinance No. 1117 Page 3 INTRODUCED AND APPROVED UPON FIRST READING this 23 day of March, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE 13th PASSED, APPROVED AND ADOPTED UPON SECOND READING this:tltk day of April, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS r - ~1t1~:fMj yi.cki K~ad', City Clerk 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 23rd day of March, 2004, and presented for second reading by title only for adoption on the 13th day of April, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: n~B~~~ -~:t COUNCILMEMBERS: 'l,-:..:-n J '()~~~._- ~ VICKI KASAD, Ctry C ERK CITY O~LAKEELSINORE NONE NONE .. (SEAL) '. - .- 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. 1117 of said Council, and that the same has not been amended or repealed. DA!ED: April 14, 2004 0(.'./'\~.j -uJ2,~ .L~b.+ VICKI KASAD, qTY CLERK J1TY Of LAKE.ELSINORE -cS~AL) - ORDINANCE NO. 1118 AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 6.04.020 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING ANIMAL CONTROL FEE SCHEDULE. WHEREAS, Chapter 6.04 of the Lake Elsinore Municipal Code establishes animal control within the City of Lake Elsinore; and WHEREAS, Section 6.04.020 of the Lake Elsinore Municipal Code sets the Animal Control Fee Schedule. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 2: follows. That dog licenses of Section 6.04.020 is amended and restated as Dog Licenses: 1 Year 2 Year 3 Year Unaltered Dog $ 50.00 $100.00 $150.00 Altered Dog $ 15.00 $ 20.00 $ 25.00 Senior Citizen owned (Age 62) - (Altered Dog) $ 6.00 $ 7.00 $ 8.00 PASSED, UPON FIRST READING this 23rdday of March following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY , 2004, by the NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED this 13tlday of April following roll call vote: , 2004, by the AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NONE NONE 1 ABSTAIN: COUNCILMEMBERS: - ~EST: . ~~~~ Vicki Kasad, City Clerk - 2 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 23rd day of March, 2004, and presented for second reading by title only for adoption on the 13th day of April, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE r;~STAIN: . COUNCILMEMBERS: ~l:JCLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1118 of said Council, and that the same has not been amended or repealed. : April 14, 2004 -7LI CKI KA AD, CITY CLERK - CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1119 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AUTHORIZING THE LEVY OF A SPECIAL TAX WHEREAS, on March 23, 2004, the City Council (the "Council") of the City of Lake Elsinore (the "City") adopted Resolution No. 2004-18 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2004-1 (City Center Townhomes) (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 or operate (the "Facilities"); and WHEREAS, on March 23, 2004, the Council also adopted Resolution No. 2004-19 stating its intention and the necessity to incur bonded indebtedness in the amount not to exceed $5,000,000 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 $5,000,000 within the boundaries of the CFD; and WHEREAS, on April 27, 2004, 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 apportionment and manner of collection of the special tax to be levied within the CFD to pay the principal and interest on the proposed bonded indebtedness of the CFD, and relative to the necessity for authorizing the bonds, the purpose for which the bonds are to 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 the CFD were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-11..\ determining the validity of prior proceedings and established the CFD; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004-;)..S' which called an election within the CFD for April 27, 2004 on the proposition of incumng bonded indebtedness, levying a special tax and setting an appropriations limit; and WHEREAS, on April 27, 2004, an election was held within 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; 45440407.1 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 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 2. 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 Resolution No. 2004- ?-4 . pfthe CounciL Section 4. The above authorized 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 as 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 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. 45440407.1 INTRODUCED AND PASSED UPON FIRST READING by title only this 27th day of April, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS; NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING by title only this 25th day of May, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE - ABSTAIN: COUNCILMEMBERS: NONE . j)~ y~ VICKI KASAD, CMC, CITY CLERK! HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE APPROVED AS TO FORM: - 45440407.1 EXHIBIT" A" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX .; , ,"') , RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2004-1 OF THE CITY OF LAKE ELSINORE (CITY CENTER TOWNHOMES) The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Taxes in the City of Lake Elsinore ("City") Community Facilities District No. 2004-1 (City Center Townhomes) (tlCFD No. 2004-1 tl). An Annual Special Tax shall be levied on and collected in CFD No. 2004-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within CFD No. 2004-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. SECTION 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 the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf of CFD No. 2004...1 related to the determination of the amount of the levy of Special Taxes, the collection of Special Taxes including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2004-1 ,and costs otherwise incurred in order to carry out the authorized purposes ofCFD No. 2004-1 relating to CFD No. 2004-1. "Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's Parcel. "Apartment Property" means all Assessor's Parcels of Residential Property on which one or more Apartment Units are constructed. "Apartment Unit" means a dwelling unit within a building comprised of attached residential units available for rental by the general public, not for sale to an end user, and under common management. City of Lake Elsinore Community Facilities District No. 2004-1 - - -;t~[\' I "Assessor's Parcel" means a lot or parcel ofland designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identification. "Assigned Annual Special Tax" means the Special Tax of that name described in Section D below. "Backup Annual Special Tax" means the Special Tax of that name described in Section E below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Taxes within CFD No. 2004-1 have been pledged. "Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel. "Ca.lendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 2004-1" means Community Facilities District No. 2004-_ established by the City under the Act. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body ofCFD No. 2004-1, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as provided for in Section 1. "Final Map" 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. "Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30. City of Lake Elsinore Community Facilities District No. 2004-1 March 15, 2004 .;t,.~'" J-. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C, that can be levied by CFD No. 2004-1 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 was issued for any type of non-residential use. "Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special Tax obligation for an Assessor's Parcel, as described in Section H. "Prepayment Amount" means the amount required to prepay the Annual Special Tax obligation in full for an Assessor's Parcel, as described in Section G. "Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax under step four of Section F, "Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special Tax, is equal for all applicable Assessor's Parcels. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be classified as ExemptProperty because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section J as applicable. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Single Family Property" means all Assessor's Parcels of Residential Property other than Apartment Property. "Single Family Unit" means a residential dwelling unit other than an Apartment Unit. "Special Tax" means any of the special taxes authorized to be levied by CFD No. 2004-1 pursuant to the Act. "Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition Or construction of facilities authorized by CFD No. 2004-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement. City of Lake Elsinore Community Facilities District No. 2004-1 ~~J~ .l\1; )rlA .,; > /i "Taxable Property" means all Assessor's Parcels within CFD No. 2004-1, which are not Exempt Property . "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, or Provisional Undeveloped Property. SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year, beginning with Fiscal Year 2004-05, each Assessor's Parcel within CFD No. 2004-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential Property shall further be classified as a Single Family Property or Apartment Property, and each Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based on its Building Square Footage. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non- Residential Property that is classified as Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor's Parcel classified as Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax. SECTION D ASSIGNED ANNUAL SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property,or Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2004-05 shall be determined pursuant to Table 1 below. TABLE 1 City of Lake Elsinore Community Facilities District No. 2004-1 March 15,2004 ASSIGNED ANNUAL SPECIAL TAX RATES FOR DEVELOPED PROPERTY FOR FISCAL YEAR 2004-05 Land Use T e Residential Pro e Residential Pro e Residential Property Residential Pro e Residential Pro e A artment Unit Non-Residential Pro e Buildin S uare Foota e Less than 1 000 1,000 - 1,199 1,200 - 1,399 1,400 - 1,499 1,500 or greater N/A N/A Rate $1 182 er Unit $1 333 er Unit $1,661 per Unit $1,770 er Unit $1,839 er Unit $18,957 er Acre $18,957 er Acre 2. Undeveloped Property and Provisional Undeveloped Property Each Fiscal Year, each Assessor's Parcel of Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax. The Assigned Annual Special Tax rate for an Assessor's Parcel classified as Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2004-05 shall be $18,957 per Acre. 3. Increase in the Assi2ned Annual Special Tax On each July 1, commencing July 1, 2005, the Assigned Special Tax rate for Developed Property, Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION E BACKUP ANNUAL SPECIAL TAX At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified or reasonably expected to be classified as a Single Family Property within such Final Map area shall be determined by (i) summing the product of (a) the Maximum Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area. The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non- Residential Property or Apartment Property shall be the Maximum Special Tax rate for Undeveloped Property . - City of Lake Elsinore Community Facilities District No. 2004-1 l' 1 .', . ;," If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably expected to be classified as Single Family Property and Non-Residential Property or Apartment Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or reasonably expected to be classified as Single Family Property shall be computed exclusive of the allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected to be classified as Non-Residential Property or Apartment Property. Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as either Single Family Property, Apartment Property or Non-Residential Property are subsequently changed of modified by recordation of a lot line adjustment or similar instrument, then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual Special Tax that would have been generated if such change did not take place. On each July 1, commencing July 1,2005, the Backup Annual Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. SECTION F METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing Fiscal Year 2004-05 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Taxes on all Taxable Property in accordance with the following steps: Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax rates in Table 1 to satisfy the Special Tax Requirement. Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 1000,10 of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the Annual Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is the Backup Annual Special Tax shall be increased Proportionately from the Assigned Annual Special Tax up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax Requirement. , Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement. City of Lake Elsinore Community Facilities District No. 2004-1 March 15,2004 SECTION G PREPAYMENT OF ANNUAL SPECIAL TAX The following definitions apply to this Section G: "CFD Public Facilities" means $2,335,683 expressed in 2004 dollars, which shall increase by the Construction Inflation Index on July 1,2005, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2004-1 , or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible under CFD No. 2004-1. "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 City 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 public facility costs available to be funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment. "Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special Taxes which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes. The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued or is expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as described below. An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 2004-1 in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the City shall notify C such owner of the Prepayment Amount of such Assessor's Parcel. City of Lake Elsinore Community Facilities District No. 2004-1 March 15, 2004 ,. '~ The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): plus plus plus plus less equals Bond Redemption Amount Redemption Premium Future Facilities Amount Defeasance Cost Administrative Fee Reserve Fund Credit Prepayment Amount As of the date of prepayment, the Prepayment Amount shall be calculated as follows: 1. For an Assessor's Parcel of Developed Property, compute the Assigned Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's Parcel of Undeveloped Property, compute the Assigned Annual Special Tax as though is was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute the Assigned Annual Special Tax for that Assessor's Parcel. 2. F or each Assessor's Parcel of Developed Property, Undeveloped Property or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the "Bond Redemption Amount". 4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the "Redemption Premium. II 5. Compute the Future Facilities Cost. 6. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5. to determine the Future Facilities Cost to be prepaid (the "Future Facilities Amount"). 7. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds. City of Lake Elsinore Community Facilities District No. 2004-1 March 15,2004 8. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest call date for the Outstanding Bonds. 9. Subtract the amount computed pursuant to paragraph 8 from the amount computed pursuant to paragraph 7. This difference is the "Defeasance Cost." 10. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the "Administrative Fee." 11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicabl~ reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than O. 12. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance, and the Administrative Fee, less the Reserve Fund Credit. 13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, and 11 shall be deposited into the appropriate fund as established under the bond indenture and used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 6 shall be deposited into the Construction Fund. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 2004-1. With reSpect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of CFD No. 2004-1 that there has been a prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such Special Taxes shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. City of Lake Elsinore Community Facilities District No. 2004-1 March 15, 2004 SECTION H PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX The Special Tax: obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued or is expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP = ((PG -A) x F) + A The terms above have the following meanings: PP = the Partial Prepayment Amount. PG = the Prepayment Amount calculated according to Section G. F = the percent by which the owner of the Assessor's Parcel is partially prepaying the Special Tax obligation. A= the Administrative Fees and Expenses calculated according to Section G. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the records ofCFD No. 2004-1 that there has been a partial prepayment of the Special Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax: obligation, to indicate the partial prepayment of the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax: that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. SECTION I TERMINATION OF SPECIAL TAX For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all Assessor's Parcels subject to the Annual Special Tax:. If any delinquent Annual Special Taxes remain uncollected prior to or after all Bonds are retired, the Annual Special Tax: may be levied to City of Lake Elsinore Community Facilities District No. 2004-1 March 15, 2004 ... ,"'", the extent necessary to reimburse CFD No. 2004-1 for uncollected Annual Special Taxes associated with the levy of such Annual Special Taxes, but not later than the 2042-43 Fiscal Year. SECTION J EXEMPTIONS The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of Cali fomi a, Federal or other local governments, including school districts, (ii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (iii) other types of public uses determined by the City Council, (iv) Assessor's Parcels which are privately owned and are encumbered by or restricted solely for public uses, (v) Assessor's Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, or (vi) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, provided that no such classification would reduce the sum of all Taxable Property to less than 13.43 Acres. Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 13.43 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 13.43 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section F. At such time an Assessor's Parcel must be classified as Provisional Developed Property, the following hierarchy shall be used to determine which Assessor's Parcel will be taxed to ensure that the Taxable Property is not less than 13.43 acres: First, an Assessor's Parcel as designated in (vi) above Second, an Assessor's Parcel as designated in (v) above Third, an Assessor's Parcel as designated in (iv) above Fourth, an Assessor's Parcel as designated in (iii) above Fifth, an Assessor's Parcel as designated in (ii) above Sixth, an Assessor's Parcel as designated in (i) above SECTION K APPEALS Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) ofCFD No. 2004-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made (except for the last year of City of Lake Elsinore Community Facilities District No. 2004-1 March 15,2004 - :,_.,. .~ JO levy), but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). SECTION L MANNER OF COLLECTION The Annual 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. 2004-1 may collect Annual Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. City of Lake Elsinore Community Facilities District No. 2004-1 March 15,2004 ....~"'"..,~' -.~. . ~ _... ~'.4' 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 27th day of April, 2004, and presented for second reading by title only for adoption on the 25th day of May, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE SENT: COUNCILMEMBERS: NONE ~aCILMEMBERS: VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1119 of said Council, and that the same has not been amended or repealed. DA ED: June 2, 2004 , <L " - j VICKIKASAD,CI~CItRK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1120 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2004-03 CHANGING THE ZONING DESINGNATION OF A PARCEL SPECIFICALLY DESCRIBED AS APN (S) 363-540-010, 011, 012 AND 013 FROM R-1 SINGLE FAMILY RESIDENTIAL DISTRICT TO C-2 GENERAL COMMERCIAL DISTRICT UNDER THE ZONING ORDINANCE WHEREAS, Robert Gregory, has initiated proceedings to change the zoning designation of the subject parcels known as APN(s) 363-540-010, 011, 012 and 013 from R-l Single Family Residential District to C-2 General Commercial District;. WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on May 4, 2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2004-03 by adopting Planning Commission Resolutiort No. 2004-60 recommending to the City Council approval of Zone Change No. 2004- 04;an~ WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on May 25, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Zone Change No. 2004-03, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004-04 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project and recommends City Council certification, based upon the following findings and determinations: SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Zone Change No. 2004-03 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. City Council Ordinance No. 1120 Page 2 The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issues identified by staff relate to the reduction of housing stock and traffic impacts of the proposed project. Staff, concluded that there would be a minimal reduction in the total housing stock of the Low Medium Density areas. Further, based on the Traffic Study Report, it was concluded that the Level of Service for the intersections in the Study Area will not be degraded as a result of this project. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the automobile dealership is consistent with the Land Use Designation of General Commercial of the General Plan Land Use Element, "to encourage the consolidation of centers of activity (i.e. automobile dealerships) with direct access to major roads and freeways ". SECTION TWO: ZONING RECLASSIFICATION This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: Assessor's Parcel Numbers 363-540-010, 011, 012 AND 013: TO C-2 GENERAL COMMERCIAL DISTRICT UNDER THE ZONING ORDINANCE Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). c - City Council Ordinance No. 1120 Page 3 SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 25th day of May, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of June, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS. f;ST:t I UuQ~ ~ Vicki Kasad, City Clerk ST ATE 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 25th day of May, 2004, and presented for second reading by title only for adoption on the 8th day of June, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE SENT: COUNCILMEMBERS: NONE , . ~:~~ JOUNCILMEMBERS: ~~~ l(y~ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1120 of said Council, and that the same has not been amended or repealed. 2)TE~:,Juny~ VI~&AD' CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1121 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING SPECIFIC PLAN NO. 93-3, AMENDMENT NO.7, AN AMENDMENT FOR THE REMOVAL OF PARCELS WITHIN APPROVED LIBERTY SPECIFIC PLAN SPECIFICALLY DESCRIBED AS APN 370-050- 013. WHEREAS, the Alesco Development LLC, has initiated proceedings to remove APN's 370-050- 013 from the Liberty Specific Plan therefore triggering Amendment No.7 to the Liberty Specific Plan. WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on May 4, 2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Amendment No. 7 to SP No. 93-3 by adopting Planning Commission Resolution No. 2004-53 recommending to the City Council approval of Specific Plan No. 93-3, Amendment No.7; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this itt~m on May 25,2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Specific Plan No. 93-3, Amendment No.7, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004-03 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of ends City Council certification, based upon the following findings and determinations: SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Specific Plan No. 93-3, Amendment No.7 have been made as follows: 1. The proposed Specific and General Plan Amendment will not be; a) detrimental to the health, safety, comfort or general welfare ofthe persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed Specific and General Plan Amendment has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issues identified by staff relate to the Land Use and the Circulation Element of the General Plan. Staff, concluded, based on the Net Traffic Generation Forcast, prepared by Linscott, Law & Greenspan, that the traffic impacts of this land use change will reduce the traffic impacts to Corydon Street. 2. The proposed Specific and General Plan Amendment will permit reasonable development of the area consistent with its constraints and will make the area more compatible with adjacent properties. Ordinance No. 1121 Page Two The proposed Specific and General Plan Amendment will allow the applicant to develop the site with the proposed 70,000 square foot industrial building and will in turn bring about a site more compatible with the previously approved projects along Corydon Street to the west. 3. The proposed Specific and General Plan Amendment would establish a land use density and usage more in character with the subject property's location, access, and constraints. The proposed Specific and General Plan Amendment would establish a usage more in conformance with the recently approved Industrial Condominium project to the west and will subsequently be more in character with the subject properties location, access and constraints. 4. The proposed Specific and General Plan Amendment will not have a significant effect on the environment. The proposed Specific and General Plan Amendment was included within the description of the project's Initial Study. Based on the Initial Study, staff intends to adopt a Mitigated Negative Declaration, which concluded with mitigations that the project will not have a significant effect on the environment. SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 25th day of May, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NONE NONE NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 8th day of June, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NONE NONE Ordinance No. 1121 Page Three ATtEST: . ~ 2)k d Vicki Kasad, City Clerk 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 25th day of May, 2004, and presented for second reading by title only for adoption on the 8th day of June, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: ~ . \AB~~AJt'I:. JCOUNCILMEMBERS: ?J~",-- J;~ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE NONE NONE (SEAL) 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. 1121 of said Council, and that the same has not been amended or repealed. ~~~ooe 1~:Oj VICKI KAS~ITY CLERK CITY OF LAKE. ELSINORE (SEAL) ORDINANCE NO. 1122 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2004-04 CHANGING THE ZONING DESIGNATION OF THE PARCEL SPECIFICALLY DESCRIBED AS APN 370-050-013 FROM EAST LAKE SPECIFIC PLAN GENERAL COMMERCIAL TO M-l LIMITED MANUFACTURING DISTRICT UNDER THE ZONING ORDINANCE WHEREAS, the Alesco Development Company, LLC, has initiated proceedings to remove APN No. 370-050-013 from the East Lake Specific Plan General Commercial to M-l Limited Manufacturing District under the Zoning Ordinance. WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on May 4, 2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2004-04 by adopting Planning Commission Resolution No. 2004-55 recommending to the City Council approval of Zone Change No. 2004- 04; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on May 25, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Zone Change No. 2004-04, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004-03 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project and recommends City Council certification, based upon the following findings and determinations: SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Zone Change No. 2004-04 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. City Council Ordinance No. 1122 Page No.2 The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issues identified by staff relates to the land use and traffic impacts of the proposed land use change. First, staff concluded, that the proposed Zone Change would pro~ide a welcomed increase in employment opportunities in the City. Additionally, staff determined, based on the Net Traffic Generation Forcast, prepared by Linscott, Law & Greenspan, that the proposed Zone Change would potentially generate less traffic than the current land use designation. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the subject industrial project is consistent with GOAL 1.0 of the General Plan Land Use Element, obligating the City to assist developers in providing an increase in employment opportunities for residents of Lake Elsinore. Further, based on staff's analysis, the proposed project meets or exceeds the required development standards contained in the LEMC. SECTION TWO: ZONING RECLASSIFICATION This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: Assessor's Parcel Number: 370-050-013 TO M-I LIMITED MANUF ACTURING UNDER THE ZONING ORDINANCE Approval is based on the following: I. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). City Council Ordinance No. 1122 Page No.3 SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 25th day of May, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this ."B (h day of June, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: ),<77 Vicki Kasad, City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI ~SAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREBY CERTIFY that the foregoing Ordinance was introduced and read by title only on the 25th day of May, 2004, and presented for second reading by title only for adoption on the 8th day of June, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: , \ ~S~IN' . 2lCL (yu(/ VICKI AD, CITY CLERK CITY OF LAKE ELSINORE COUNCILMEMBERS: NONE COUNCILMEMBERS: NONE (SEAL) 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. 1122 of said Council, and that the same has not been amended or repealed. ;(EQ~: Jkune 1.:' 2004j ZL<- ~ B~ VICKI KA AD, CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1123 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION AREA NO.7 (CITY CENTER TOWNHOMES PHASE II) AND ANNEXATION AREA NO.8 (VISCAYA) ANNEXED TO SAID DISTRICT WHEREAS, on April 13, 2004, the City Council (the "Council") of the City of Lake Elsinore, California (the "City") adopted Resolution No. 2004-20 stating its intention to annex certain property ("Annexation Area No.7 (City Center Townhomes Phase II)") into City of Lake Elsinore Community Facilities District No. 2003-1 (Law Enforcement, Fire and Paramedic Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, (the "Act"); and WHEREAS, on April 13, 2004, the Council adopted Resolution No. 2004-21 stating its intention to annex certain property ("Annexation Area No. 8 (Viscaya)") into the District pursuant to the Act; and WHEREAS, notice was published as required by law relative to the intention of the Council to annex Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) into the District; and WHEREAS, on May 25, 2004 this Council held a noticed public hearing as required by law relative to the determination to proceed with the annexation of Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) into the District and the rate and method of apportionment and manner of collection of the special tax to be levied within Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) to finance certain public services; and - WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the annexation of Annexation Area No. 7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) were heard and a full and fair hearing was held; and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004- .3 S'. determining the validity of prior proceedings relative to the annexation of Annexation Area No. 7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya), annexed Annexation Area No. 7 (City Center Townhomes Phase II) and Annexation Area No. 8 (Viscaya) into the District and authorized the levy of a special tax within Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya); and WHEREAS, the Council subsequent to said hearing adopted Resolution No. 2004- 3Co which called an election within Annexation Area No. 7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) for May 25, 2004 on the proposition of levying a special tax; and 45367598.1 ... '" . WHEREAS, on May 25, 2004 an election was held within each Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) in which the eligible electors approved by more than two-thirds vote the proposition oflevying a special tax; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-1 (LAW ENFORCEMENT, FIRE AND PARAMEDIC SERVICES), DOES ORDAIN AS FOLLOWS: Section 1. A special tax is levied within the boundaries of Annexation Area No. 7 (City Center Townhomes Phase II) and Annexation Area No. 8 (Viscaya) pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference in an amount necessary to finance a portion of the cost of providing law enforcement, fire and paramedic services that are in addition to those provided in the territory within Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No. 8 (Viscaya) prior to the annexation of Annexation Area No.7 (City Center Townhomes Phase II) and Annexation Area No.8 (Viscaya) into the District, periodic costs, and costs of the tax levy and collection. Section 2. 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 next fiscal year, 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 Resolution No. 2004- .:)5" of the Council. Section 4. The above authorized 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. 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 ofthe City, and to post at the main office ofthe 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. - 45367598.1 2 INTRODUCED AND PASSED upon first reading by title only, this 25th day of May, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED upon second reading by title only, this 8th day of June, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ATfEST: ?J:Jl~r~ VICKI KASAD, CMC, CITY CLERK! HUMAN RESOURCES DIRECTOR CITY OF LAKE ELSINORE APPROVED AS TO FORM: ORDINANCE NO. 1124 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE TO ESTABLISH A LOCAL DEVELOPMENT MITIGATION FEE FOR FUNDING THE PRESERVATION OF NATURAL ECOSYSTEMS IN ACCORDANCE WITH THE WESTERN RIVERSIDE COUNTY MULTIPLE SPECIES HABITAT CONSERVATION PLAN WHEREAS, the City Council of the City of Lake Elsinore ("City") finds that the ecosystems of the City and western Riverside County, and the vegetation communities and sensitive species they support are fragile, irreplaceable resources that are vital to the general welfare of all residents; WHEREAS, these vegetation communities and natural areas contain habitat value which contributes to the City's and the region's environmental resources; WHEREAS, special protections for these vegetation communities and natural areas must be established to prevent future endangerment of the plant and animal species that are dependent upon them; WHEREAS, adoption and implementation of this Ordinance will help to enable the City to achieve the conservation goals set forth in the Western Riverside County Multiple Species Habitat Conservation Plan ("MSHCP"), adopted by the City Council on January 13, 2004, to implement the associated Implementing Agreement executed by the City Council on January 13, 2004, and to preserve the ability of affected property owners to make reasonable use of their land consistent with the requirements ofthe National Environmental Policy Act ("NEP A"), the California Environmental Quality Act ("CEQA"), the Federal Endangered Species Act ("FESA"), the California Endangered Species Act (liCE SA "), the California Natural Community Conservation Planning Act ("NCCP Act") and other applicable laws; WHEREAS, the purpose and intent of this Ordinance is to establish a Local Development Mitigation Fee to assist in the maintenance of biological diversity and the natural ecosystem processes that support this diversity; the protection of vegetation communities and natural areas within the City and western Riverside County which are known to support threatened, endangered or key sensitive populations of plant and wildlife species; the maintenance of economic development within the City by providing a streamlined regulatory process from which development can proceed in an orderly process; and the protection of the existing character of the City and the region through .' the implementation of a system of reserves which will provide for permanent open space, community edges, and habitat conservation for speCies covered by the MSHCP; RVPIJB/MO/65!1751 Page 1 WHEREAS, the findings set forth herein are based on the MSHCP and the studies referenced therein, and the estimated acquisition costs for such property as set forth in the MSH CP, a copy of which is on file in the City Clerk's office; WHEREAS, pursuant to Article 11, Section 7 of the California Constitution, the City is authorized to enact measures that protect the health, safety and welfare of its citizens; WHEREAS, pursuant to Government Code sections 66000 et seq., the City is empowered to impose fees and other exactions to provide necessary funding and public facilities required to mitigate the negative effect of new development projects; WHEREAS, on January 13, 2004 the City Council took action on the MSHCP and the associated Implementing Agreement, and made appropriate findings pursuant to CEQA; and WHEREAS, pursuant to Government Code sections 66016, 66017 and 66018, the City has: (a) made available to the public, at least ten (10) days prior to its public hearing, data indicating the estimated cost required to provide the facilities and infrastructure for which these development fees are levied and the revenue sources anticipated to provide those facilities and infrastructure; (b) mailed notice at least fourteen (14) days prior to this meeting to all interested parties that have requested notice of new or increased development fees; and (c) held a duly noticed, regularly scheduled public hearing at which oral and written testimony was received regarding the proposed fees. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. FINDINGS. The City Council finds and determines as follows: A. The preservation of vegetation communities and natural areas within the City and western Riverside County which support species covered by the MSH CP is necessary to protect and promote the health, safety and welfare of all the citizens of the City by reducing the adverse direct, indirect and cumulative effects of urbanization and development and providing for permanent conservation of habitat for species covered by the MSHCP. - B. It is necessary to enact and implement certain development impact fees to ensure that all new development within the City pays its fair share of the costs of acquiring and preserving vegetation communities and natural areas within the City and the region which are known to support plant and wildlife species covered by the MSHCP. J C. A proper funding source to pay the costs associated with mitigating the direct, indirect and cumulative impacts of development to the natural ecosystems within the City and the region, as identified in the MSHCP, is a development impact fee for residential, commercial, and industrial development. The amount of the fee is determined by the nature and extent of the impacts from the development to the identified natural ecosystems and or the relative cost of mitigating such impacts. RVPUBIMO/6511751 Page 2 D. The MSHCP and the Nexus Fee Report, a copy of which is on file in the City Clerk's office, provides a basis for the imposition of development impact fees on new construction. E. The use of the development impact fees to mitigate the impacts to the City's and the region's natural ecosystems is reasonably related to the type and extent of impacts caused by development within the City. F. The costs of funding the proper mitigation of natural ecosystems and biological resources impacted by development within the City and the region are apportioned relative to the type and extent of impacts caused by the development. G. The facts and evidence provided to the City establish that there is a reasonable relationship between the need for preserving the natural ecosystems in the City and the region, as defined in the MSHCP, and the direct, indirect and cumulative impacts to such natural ecosystems and biological resources created by the types of development on which the fee will be imposed, and that there is a reasonable relationship between the fee's use and the types of development for which the fee is charged. This reasonable relationship is described in more detail in the MSHCP and the Nexus Fee Report. H. The cost estimates for mitigating the impact of development on the City's and the region's natural ecosystem and biological resources, as set forth in the MSHCP, are reasonable and will not exceed the reasonably estimated total of these costs. I. The fee set forth herein does not reflect the entire cost ofthe lands which need to be acquired in order to implement the MSHCP and mitigate the impact caused by new development. Additional revenues will be required from other sources. The City Council finds that the benefit to each development project is greater than the amount of the fee to be paid by the project. J. The fees collected pursuant to this Ordinance shall be used to finance the acquisition of the natural ecosystems and certain improvements described or identified in the MSHCP. SECTION 2. ADMINISTRATIVE RESPONSmILITY. The Community Development Director of the City shall be responsible for the administration of this Ordinance. Detailed administrative procedures concerning the implementation of this Ordinance may be established and set forth in a resolution adopted by the City Council. SECTION 3. DEFINITIONS. As used in this Ordinance, the following terms shall have the following meanings: "City" means the City of Lake Elsinore, California. "City Council" means the City Council of the City of Lake Elsinore, California. RVPUB/MO/65R751 Page 3 "Certificate of Occupancy" means a certificate of occupancy issued by the City in accordance with all applicable ordinances, regulations, and rules of the City and state law. "Credit" means a credit allowed pursuant to Section 11 of this Ordinance, which may be applied against the development impact fee paid. "Development Project" or "Project" means any project undertaken for the purpose of development pursuant to the issuance of a building permit by the City pursuant to all applicable ordinances, regulations, and rules of the City and state law. "Final Inspection" means a final inspection of a project as defined by the building codes of the City. "Gross Acreage" means the total property area as shown on a land division map of record, or described through a recorded legal description of the property. This area shall be bounded by road right-of-way and/or legal property lines. "Local Development Mitigation Fee" or "Fee" means the development impact fee imposed pursuant to the provisions of this Ordinance. "Multiple Species Habitat Conservation Plan" or "MSHCP" means the Western Riverside County Multiple Species Habitat Conservation Plan, adopted by the City Council on January 13, 2004. "MSHCP Conservation Area" has the same meaning and intent as such term is defined and utilized in the MSHCP. "Ordinance" means this Ordinance No. .l.1..2H. of the City of Lake Elsinore, California. "Proj ect Area" means the area, measured in acres, from the adjacent road right -of-way line to the limits of project improvements. Project Area includes all project improvements and areas that are disturbed as a result of the project improvements on an owner's Gross Acreage, including all areas depicted on the forms required to be submitted to the City pursuant to this Ordinance and/or other applicable development ordinance or regulation of the City. Except as otherwise provided herein, the Project Area is the area upon which the project will be assessed the,Local Development Mitigation Fee. "Resiqential Unit" means a building or portion thereofused by one family;and containing but one kitchen, which unit is designed or occupied for residential purposes, including single-family, multiple-family dwellings, and mobile homes on a permanent foundations, but not including hotels and motels. . RVPlffiIMO/6511751 Page 4 - "Revenue" or "Revenues" means any funds received by the City pursuant to the provisions of this Ordinance for the purpose of defraying all or a portion of the cost of acquiring and preserving vegetation communities and natural areas within the City and the region which are known to support threatened, endangered or key sensitive populations of plant and wildlife species. "Western Riverside County Regional Conservation Authority" means the governing body established pursuant to the MSHCP that is delegated the authority to oversee and implement the provisions of the MSHCP. SECTION 4. LOCAL DEVELOPMENT MITIGATION FEE. To assist in providing Revenue to acquire and preserve vegetation communities and natural areas within the City and western Riverside County which are known to support threatened, endangered or key sensitive populations of plant and wildlife species, a Local Development Mitigation Fee shall be paid for each Development Project or portion thereofto be constructed within the City. The following fee shall be paid for each Development Project to be constructed within the City. The fees are calculated using an Equivalent Benefit Unit methodology: . Residential, density less than 8.0 dwelling units per acre - $1,651 per dwelling unit . Residential, density between 8.1 and 14.0 dwelling units per acre - $1,057 per dwelling unit - . Residential, density greater than 14.1 dwelling units per acre - $859 per dwelling unit · Commercial - $5,620 per acre · Industrial - $5,620 per acre A. The amount of the Local Development Mitigation Fee shall be calculated on the basis of the acreage of the Project Area, in accordance with the following: 1. The Project Area shall be determined by City staff based on the subdivision map, plot plan, and other information submitted to or required by the City. 2. An applicant may elect, at his or her own expense, to have a Project Area dimensioned, calculated, and certified by a registered civil engineer or licensed land surveyor. The engineer or land surveyor shall prepare a wet-stamped letter of certification of the Project Area dimensions and a plot plan exhibit thereto that clearly delineates the Project Area. Upon receipt of the letter of certification and plot plan exhibit, the City shall calculate the Local Development Mitigation Fee required to be paid based on the certified Project Area. 3. Where construction or other improvements on Project Area are prohibited due to legal restrictions on the Project Area, such as Federal Emergency Management Agency designated ~ RVPUBIMO/65R751 Page 5 floodways or areas legally required to remain in their natural state, that portion ofthe Project Area so restricted shall be excluded for the purpose of calculating the Local Development Mitigation Fee. SECTION 5. IMPOSITION OF THE LOCAL DEVELOPMENT MITIGATION FEE. Notwithstanding any other provision of the City's Municipal Code, no permit shall be issued for any Development Project except upon the condition that the Local Development Mitigation Fee applicable to such Development Project has been paid. SECTION 6. PAYMENT OF LOCAL DEVELOPMENT MITIGATION FEE. A. The Local Development Mitigation Fee shall be paid in full in accordance with applicable law. B. The Local Development Mitigation Fee shall be assessed one time per lot or parcel, except when additional construction or improvement on the lot or parcel results in the disturbance of additional area. C. The Local Development Mitigation Fee required to be paid under this Ordinance shall be the fee in effect at the time of payment. - D. Notwithstanding anything in the City's Municipal Code, or any other written documentation to the contrary, the Local Development Mitigation Fee shall be paid whether or not the Development Project is subject to conditions of approval by the City imposing the requirement to pay the fee. E. If all or part of the Development Project is sold prior to payment of the Local Development Mitigation Fee, the Project shall continue to be subject to the requirement to pay the fee as provided herein. SECTION 7. REFUNDS. There shall be no refund of all or part of any Local Development Mitigation Fee paid under this Ordinance except in cases of overpayment or miscalcutation of the applicable fee. Only in cases of overpayment or miscalculation of the fee will the person or entity that paid the Local Development Mitigation Fee be entitled to a refund. SECTION 8. ACCOUNTING AND DISBURSEMENT OF COLLECTED LOCAL DEVELOPMENT MITIGATION FEES. A. All fees paid pursuant to this Ordinance shall be deposited, invested, aCcounted for, and expended in accbrdance with Section 66006 of the Government Code and all other applicable provisions oflaw. B. Subject to the provisions ofthis section, all fees collected pursuant to this Ordinance shall be remitted to the Western Riverside County Regional Conservation Authority at least quarterly, and will be expended solely for the purpose of acquiring and preserving vegetation RVPIJB/MO/658751 Page 6 communities and natural areas within the City and the region which support species covered in the MSHCP in accordance with the provisions ofthe MSHCP. C. The City may recover the costs of administering the provisions of this Ordinance using the Revenues generated by the fees, in an amount and subject to the rules and regulations established by the Western Riverside County Regional Conservation Authority. SECTION 9. AUTOMATIC ANNUAL FEE ADJUSTMENT. The fee established by this Ordinance shall be revised annually by means of an automatic adjustment at the beginning of each fiscal year based on the average percentage change over the previous calender year set forth in the Construction Price Index for the Los Angeles metropolitan area. The first fee adjustment shall not be made prior to a minimum of ten (10) months subsequent to the effective date of this Ordinance. SECTION 10. EXEMPTIONS. The following types of construction shall be exempt from the provisions of this Ordinance: A. Reconstruction or improvements that are damaged or destroyed by fire or other natural causes. B. Rehabilitation, remodeling, or minor additions to an existing Development Project. C. Secondary residential units, constructed on developed residential property and meeting all state and City requirements for such units. D. Existing improvements that are converted from an existing permitted use to a different permitted use, provided that no additional area of the property is disturbed as a result of such conversion. E. Development on a Project Area that is currently or has been previously improved. F. Guest houses or dwellings, as permitted by law. SECTION 11. FEE CREDITS AND WAIVERS. Any Local Development Mitigation Fee credit that may be applicable to a Development Project, or any partial or full waiver of a Local Development Mitigation Fee that may be applicable to a Development Project, shall be determined by the City in cooperation with the Western Riverside County Regional Conservation Authority, . i, which shall have an auditing role in this process. ' SECTION 12. SEVERABILITY. This Ordinance and the various parts, sections, and clauses thereof, are hereby declared to be severable. If any part, sentence, paragraph, section, or clause is adjudged unconstitutional or invalid, the remainder of this Ordinance shall be affected thereby. If any part, sentence, paragraph, section, or clause of this Ordinance, or its application to any person entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall R\nPlnBn\1()/65R751 Page 7 affect only such part, sentence, paragraph, section, or clause of this Ordinance, or person or entity; and shall not affect or impair any of the remaining provision, parts, sentences, paragraphs, sections, or clauses of this Ordinance, or its application to other persons or entities. The City Council hereby declares that this Ordinance would have been adopted had such unconstitutional or invalid part, sentence, paragraph, section, or clause of this Ordinance not been included herein; or had such person or entity been expressly exempted from the application of this Ordinance. SECTION 13. EFFECTIVE DATE. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it, or a summary of it, to be published in a newspaper published and circulated in the City of Lake Elsinore, and thereupon and thereafter this Ordinance shall take effect and be in force according to law. PASSED, UPON FffiST READING this 13th day of July, 2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: KELLEY ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED this 27th day of July, 2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: KELLEY ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE A~EST: C().~:. lJ Vicki Kasad, City Clerk RVPlffi/MO/65R751 Page 8 B RVPlffi1MO/65R751 Page 9 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 13th day of July, 2004, and presented for second reading by title only for adoption on the 27th day of July, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: KELLEY ABSENT: COUNCILMEMBERS: NONE ~WUNCILMEMBERS: ICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1124 of said Council, and that the same has not been amended or repealed. : August 24, 2004 - ORDINANCE NO. 1126 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING EAST LAKE SPECIFIC PLAN AMENDMENT NO.6 WHEREAS, Laing - CP Lake Elsinore LLC (Laing) has submitted an application for the East Lake Specific Plan Amendment No.6. The approximate 707-acre East Lake Specific Plan Amendment No. 6 area is located within the central portion of the East Lake area and is generally bounded by Malaga Road to the north, Mission Trail Road on the east, and future Bundy Canyon Road on the south; and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on April 6, 2004 made its report upon the desirability and made its recommendations in favor of the East Lake Specific Plan No. 6 by adopting Planning Commission Resolution No. 2004-37 recommending to the City Council approval of the East Lake Specific Plan No. 6; and WHEREAS, the City Council of the City of Lake Elsinore convened at a regular meeting held on April 27, 2004. Public testimony was received and discussed. The matter was deferred to a City Council Study Session on June 10, 2004. Public testimony was received and discussed. The City Council held a duly noticed public hearing on July 27, 2004, for the purposes of considering the East Lake Specific Plan No.6; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on July 27, 2004; and WHEREAS, the conditions recommended by the Planning Commission will be incorporated into the East Lake Specific Plan No. 6 to ensure that the issues ~dentified by the Planning Commission have been resolved. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council has considered the proposed East Lake Specific Plan No. 6, prior to approving such proposal. The City Council finds and determines that the Supplemental Environmental Impact Report for East Lake Specific Plan Amendment No.6 and Associated Applications is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the East Lake Specific Plan No.6, based upon the following findings and determinations: 1. The Supplemental EIR has been prepared, submitted and reviewed in accordance with requirements of the California Environmental Quality Act and the City's CEQA requirements, and is complete and adequate in its evaluation of all environmental effects of the East Lake Specific Plan Amendment No.6 and associated discretionary approvals. The - -- ORDINANCE NO. 1126 PAGE 2 East Lake Specific Plan Amendment No.6 and associated discretionary approvals will result in significant unavoidable air quality and noise impacts regardless of the adoption of feasible mitigation measures. A Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. The Supplemental EIR, which was prepared in accordance with Section 15163 of the State CEQA Guidelines, includes tlie Draft EIR, Response to Comments document, Mitigation Monitoring Program, Statement of Findings and Facts, and Statement of Overriding Considerations. The Supplemental EIR concluded that unavoidable adverse impacts related to air quality and noise will result with the proposed project regardless of implementation of those mitigation measures approved with the original 1993 Final East Lake EIR and those mitigation measures contained in the Supplemental EIR. The Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. 2. The proposed applications will result in significant unavoidable cumulative air quality and noise impacts, regardless of mitigation measures. A Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. The Supplemental EIR concludes that air quality and noise impacts resulting with the proposed applications will be significant and unavoidable, regardless of the adoption of feasible mitigation measures. The prepared Statement. of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. 3. The proposed applications may result in a signification effect on the environment, either directly or indirectly, as a result of significant unavoidable air quality and noise impacts, regardless of mitigation measures. A Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. The Supplemental EIR concludes that air quality and noise impacts resulting with the proposed applications will be significant and unavoidable, regardless of the adoption of feasible mitigation measures. These impacts may result in a signification effect on the environment. The prepared Statement of Overriding. Considerations "balances" the proposed project against its unavoidable environmental effects. 2 ORDINANCE NO. 1126 PAGE 3 4. The City Council finds the Supplemental Environmental Impact Report for East Lake Specific Plan Amendment No. 6 to be complete and adequate and provides appropriate environmental documentation for the project and fully complies with the requirements of CEQA, the State CEQA Guidelines, and the City's environmental clearance procedures. The Supplemental EIR, which was prepared in accordance with Section 15163 of the State CEQA Guidelines, includes the Draft EIR, Response to Comments document, Mitigation Monitoring Program, Statement of Findings and Facts, and Statement of Overriding Considerations. The Supplemental EIR concluded that unavoidable adverse impacts related to air quality and noise will result with the proposed project regardless of implementation of those mitigation measures approved with the original 1993 Final East Lake EIR and those mitigation measures contained in the Supplemental EIR. The Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. 5. In accordance with Section 15091 of the CEQA Guidelines, the Statement of Findings included within the Supplemental EIR makes written findings for each significant environment effect associated with the proposed applications. 6. The City Council finds that all significant effects on the environment associated with the approval of the proposed applications have. been eliminated or substantially lessened where feasible and that the remaining air quality and. noise impacts found to be unavoidable, are acceptable due to overriding concerns. 7. The City Council finds that the Supplemental EIR reflects the City's independent judgment and analysis. SECTION 2. Upon the recommendation ofthe Planning Commission and based upon the Findings adopted herein, the City Council hereby approves and adopts the East Lake Specific Plan No.6. In this regard the City Council makes the following Findings based upon substantial evidence contained in the record of these proceedings: 1. Specific Plan Amendment No. 6 meets the City's Specific Plan criteria for content and required implementation of the General Plan established by Section 65450 et seq. of the California Government Code and Section 17.99 of the City of Lake Elsinore Municipal Code. . The Specific Plan Amendment No. 6 document includes sections describing revisions to the Land Use Plan, Circulation Plan, Infrastructure Plan, Public Services Plan, Grading Plan, Open Space Plan, Design Guidelines, Development Regulations, and Implementation. The document adequately provides the necessary land use controls and standards to regulate future development and design of the East Lake Phase 1 area. 3 ORDINANCE NO. 1126 - PAGE 4 2. Specific Plan Amendment No. 6 shall be implemented consistently with the Goals, Policies and Objectives of the General Plan; and with any other applicable plans or policies adopted by the City. The Specific Plan Amendment No.6 document is consistent with the General Plan and other plans and policies of the City. The document adequately provides the necessary land use controls and standards to regulate future development and design of the East Lake Phase 1 area. 3. Those issues, standards, guidelines, and requirements not addressed in the East Lake Specific Plan Amendment No.6 will revert to the 1993 East Lake Specific Plan, City Municipal Code and/or Zoning Code in effect at the time future projects are proposed. The Specific Plan Amendment No.6 document includes sections describing revisions to the Land Use Plan, Circulation Plan, Infrastructure Plan, Public Services Plan, Grading Plan, Open Space Plan, Design Guidelines, Development Regulations, and Implementation. The document adequately provides the necessary land use controls and standards to regulate future development and design of the East Lake Phase 1 area. Those standards, guidelines, and requirements that are silent in the document, will revert to the original 1993 East Lake Specific Plan, City Municipal Code, and Zoning Code. 4. Development standards and regulations contained in East .Lake Specific Plan Amendment No.6 supersede applicable City ordinances and codes, unless specifically stated to the contrary. Approval of Specific Plan Amendment No.6 shall not be interpreted as waiving compliance with other Federal or State laws or City Codes. The Specific Plan Amendment No. 6 document includes sections describing revisions to the Land Use Plan, Circulation Plan, Infrastructure Plan, Public Services Plan, Grading Plan, Open Space Plan, Design Guidelines, Development Regulations, and Implementation. The document adequately provides the necessary land use controls and standards to regulate future development and design of the East Lake Phase 1 area. Those standards, guidelines, etc. that are silent in the document, will revert to the original 1993 East Lake Specific Plan, City Municipal Code, and Zoning Code. 5. Location of East Lake Specific Plan Amendment No.6 allows future development to be well-integrated with its surroundings. . The proposed project will construct residential and commercial uses, park areas, a golf course, a proposed elementary school, and open space areas. These proposed land uses are compatible with surrounding uses and activities which also include commercial and residential uses. 6. Specific Plan Amendment No.6 will be adequately serviced by existing and/or future public facilities and services. 4 ., ( ....., . -"-. ~- , ORDINANCE NO. 1126 PAGEs Future development is cQnditioned and required to acquire will-serve letters and clearances from public services and utility agencies, prior to construction. 7. Overall design of Specific Plan Amendment No. 6 will produce attractive, efficient and stable development. The proposed project will construct residential and commercial uses, park areas, a golf course, a proposed elementary school, and open space areas. These proposed land uses are compatible with surrounding uses and activities which also include commercial and residential uses. As shown in the Specific Plan Amendment No.6 document, these proposed land uses will be attractive, efficient, and stable. Future development requires Design Review approval which ensures attractive projects are constructed. 8. Specific Plan Amendment No.6 will not be detrimental to the health, safety, comfort or general welfare of the persons residing or working near the project area or within the City, nor will it be injurious to property or improvements in the project area or within the City. Future projects require Design Review approval which ensures safe development is constructed within the Phase 1 area. Future development is also required to comply with the Uniform Building Code and applicable Municipal Code regulations which further ensures safety and welfare. SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. PASSED; UPON FIRST READING this 27th day of July, 2004, by the following vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: BUCKLEY ABSENT: COUNCILMEMBERS: NONE ABSTENTIONS: COUNCILMEMBERS: NONE~ " s ORDINANCE NO. 1126 - PAGE 6 PASSED, UPON SECOND READING this 26 of August, 2004, by the following vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: BUCKLEY ABSENT: COUNCILMEMBERS: NONE ABSTENTIONS: COUNCILMEMBERS: NONE (SEAL) APPR9VED AS TO FORM: , 6 -- 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 27th day of July, 2004, and presented for second reading by title only for adoption on the 26th day of August, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: BUCKLEY ABSENT: COUNCILMEMBERS: NONE - NONE (SEAL) STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 1126 of said Council, and that the same has not been amended or repealed. ORDINANCE NO. 1127 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, REPEALING ORDINANCE NO. 956 AND APPROVING AN AMENDMENT IN PART AND TERMINATION IN PART OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY AND EASTLAKE COMMUNITY BUILDERS WHEREAS, on June 8, 1993, the City Council of the City of Lake Elsinore adopted Ordinance No. 956 approving a Development Agreement between the City and Eastlake Community Builders dated June 23, 1993 (the "Orig~nal Agreement") which covered approximately 3,000 acres of real property within the East Lake Specific Plan; and WHEREAS, on December 26, 2002, the City's Redevelopment Agency, Laing-CP Lake Elsinore LLC and Civic Partners - Elsinore LLC entered into a Disposition and Development Agreement (the "DDA") which contemplates an amendment to the East Lake Specific Plan and termination of certain prior agreements relating to the development of the Specific Plan area; and WHEREAS, Laing - CP Lake Elsinore LLC (Laing) is requesting the Original Agreement be amended in part relating only to approximately 706.25 acres comprising its project as described in the East Lake Specific Plan Amendment No.6 (the "Amended Development Agreement") and that the balance of the Original Agreement be terminated as contemplated by the DDA and agreed to by the parties thereto pursuant to a Settlement Agreement entered into concurrent with the DDA; and WHEREAS, California Government Code Sections 65864 through 68569.5 authorizes municipalities to enter into development agreements with persons having a legal or equitable interest in real property in order to strengthen the public planning process, provide greater certainty in the development process and reduce the economic costs of development; and WHEREAS, pursuant to Government Code Section 65865, the City has adopted rules and regulations establishing procedures and requirements for consideration of development agreements set forth in Chapter 19.12 of the Lake Elsinore Municipal Code; and WHEREAS, in accordance with City rules and regulations, the Planning Commission of the City of Lake Elsinore at a regular meeting held on April 6, 2004 made its recommendation in favor of the Amended Development Agreement by adopting Planning Commission Resolution No. 2004-39 recommending to the City Council approval of the Amended Development . Agreement; and WHEREAS, the City Council of the City of Lake Elsinore convened at a regular meeting held on April 27, 2004 during which public testimony was received and discussed and at the conclusion of which the matter was deferred to a City Council Study Session on June 10, 2004 during which additional public testimony was received and discussed; and ORDINANCE NO. 1127 PAGE 2 - WHEREAS, notice of a public hearing of the City Council on July 27, 2004 to consider the Amended Development Agreement was duly published on July 15, 2004 in the Press Enterprise. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION I. Findings. The City Council held a duly noticed public hearing on the Amended Development Agreement on July 27,2004 and based on the information presented, the City Council makes~the following findings in accordance with Section 19.12.080 of the Lake Elsinore Municipal Code. 1. The Amended Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan. The Amended Development Agreement vests the certain development rights for the project which includes land uses consistent with the General Plan and addresses funding mechanisms and procedures to ensure the East Lake Specific Plan Amendment No.6 project is constructed and implemented in accordance with the General Plan. 2. The Amended Development Agreement is compatible with the uses authorized in, and the regulations prescribed for in the East Lake Specific Plan Amendment No.6 document, which is where the real property is located. - The Amended Development Agreement vests the certain de'(relopment rights for the project as described in and consistent with the East lake Specific Plan Amendment No.6. 3. The Amended Development Agreement conforms to the public convenience and general welfare and reflects good land use practices. The Amended Development Agreement vests cert;lin development rights for the project which will include residential and commercial uses, park areas, a golf course, a proposed elementary school, and open space areas. These proposed land uses are compatible with surrounding uses and activities which also include commercial and residential uses. As shown in the Specific Plan Amendment No. 6 document, these proposed land uses reflect good land use practices and will conform to the public welfare. 4. The Amended Development Agreement will not be detrimental to the health, safety and general welfare of the community. The Amended Development Agreement provides for the development of residential and commercial uses, park areas, a golf course, a proposed elementary school, and open space areas in accordance with Specific Plan Amendment No. 6 and subject to the conditions of approval and all applicable mitigation measures. These proposed land uses are compatible with surrounding uses and activities which also include commercial and residential uses. The conditions of approval and mitigation measures will assure that such development is completed without detrimental impacts on the health, safety and general welfare of the community. 2 ORDINANCE NO. 1127 PAGE 3 5. The Amended Development Agreement will not adversely affect the orderly development of property or the preservation of property values. The Amended Development Agreement provides for the development of residential and commercial uses, park areas, a golf course, a proposed elementary school, and open space areas in accordance with Specific Plan Amendment No. 6 and subject to the conditions of approval and all applicable mitigation measures. As shown in the Specific Plan Amendment No.6 document, these proposed land uses will be constructed in orderly phases, will preserve habitat areas as appropriate and will not adversely affect property values. 6. The Amended Development Agreement is consistent with the provisions of Government Code Section 65864-65869.5. The form and content of the Amended Development Agreement is consistent with the requirements of the Government Code. SECTION 2. CEOA. The City has properly reviewed and assessed the Amended Development Agreement pursuant to the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.), the CEQA Guidelines (Title 14, California Code of Regulations Section 15000 et seq.), and the City's local guidelines and finds that the Supplemental EIR in connection with the East Lake Specific Plan Amendment No. 6 and associated discretionary approvals address all potential environmental impacts. The Supplemental EIR finds that significant unavoidable air quality and noise impacts will result regardless of mitigation measures. A Statement of Overriding Considerations has been prepared in accordance with Section 15093 of the CEQA Guidelines. This Statement of Overriding Considerations "balances" the proposed project against its unavoidable environmental effects. SECTION 3. Approval of Amended Development Agreement. The City Council approves the First Amended and Restated Development Agreement between the City of Lake Elsinore and Laing. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Amended Development Agreement on behalf of the City of Lake Elsinore. SECTION 4. Repeal of Ordinance No. 956 and Termination of Original Agreement in Part. The City Council hereby repeals Ordinance No..956 and terminates the Original Agreement in all respects as to all real property not included as the approximately 706.25 acres of "Developer Property" as defined in the Amended Development Agreement. SECTION 5. Recordation. The City Clerk is directed to transmit the Amended Development Agreement to the County Recorder for recordation no later than ten (10) days after the adoption of this Ordinance. SECTION 6. Effective Date. This Ordinance shall be in full force and effective 30 days from and after the date of its passage. 3 ORDINANCE NO. 1127 PAGE 4 SECTION 7. Postin~ and Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the manner required by law. PASSED, UPON FIRST READING this 27th day of July, 2004, by the following vote: AYES: COUNCILMEMBERS: KELLEY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: HICKMAN, BUCKLEY ABSENT: COUNCILMEMBERS: NONE ABSTENTIONS: COUNCILMEMBERS: NONE PASSED, UPON SECOND READING this 26 of August, 2004, by the following vote: AYES: COUNCILMEMBERS: KELLEY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: HICKMAN, BUCKLEY ABSENT: COUNCILMEMBERS: NONE - ABSTENTIONS: COUNCILMEMBERS: NONE " \ ! - (SEAL) ~ .) 4 -- STATE OF CALIFORNIA ) COUNTY OF RlVERSIDE ) 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 27th day of July, 2004, and presented for second reading by title only for adoption on the 26th day of August, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: KELL Y, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: HICKMAN, BUCKLEY SENT: COUNCILMEMBERS: NONE - OUNCILMEMBERS: NONE - (SEAL}. STATE OF CALIFORNIA) COUNTY OF RlVERSIDE ) 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. 1127 of said Council, and that the same has not been amended or repealed. DAfD~ Se lember 2,2004 Vrk. : ...Y~~SAD. Cf..:ry LERK CfTY Oi~LAKE ELSINORE -rsEAL)':';' . ORDINANCE NO. 1128 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2004-09, CHANGING THE ZONING DESIGNATION FROM "RR - RURAL RESIDENTIAL" TO "Rl - SINGLE FAMILY RESIDENTIAL," UNDER THE ZONING ORDINANCE, ON APPROXIMATELY 31.25:t ACRES LOCATED SOUTHEAST OF HIGHWAY 74, NORTHEAST OF INTERST ATE 15, AND EAST OF THE INTERSECTION OF CONARD AVENUE AND THIRD STREET, AND KNOWN AS ASSESSOR'S PARCEL NOS. 347-330-019, -045, -046, -050 THRU -053. WHEREAS, an application has been filed with the City of Lake Elsinore by Wasson Canyon Investments, L.P. to change the zoning designation on approximately 31.252:: acres of unimproved property from "RR - Rural Residential" to "R-l" Single Family Residential;" and - WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on September 7, 2004, made its report upon the desirability of the proposed project and made its recommendations in favor of Zone Change No. 2004-09 by adopting Planning Commission Resolution No. 2004-127 recommending to the City Council approval of Zone Change No. 2004-09; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on September 28, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered proposed Zone Change No. 2004- 09 prior making a decision. The City Council finds and determines that Mitigated Negative Declaration No. 2004-06 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project. Although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. ORDINANCE NO. 1128 ZONE CHANGE NO. 2004-09 SEPTEMBER 28, 2004 PAGE 20F4 SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore Municipal Code, the following findings for the approval of Zone Change No. 2004-09 have been made as follows: 1. The proposed amendment will not be (1) detrimental to the health, safety, comfort, or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, (2) injurious to property or improvements in the neighborhood or within the City. a. The proposed zoning of R-l Single Family Residential brings the entire site into conformance with the General Plan designation already on the property of Low Medium Density Residential, 6 dwelling units per acre b. The proposed zoning of R-l Single Family Residential is the most similar zoning to the residential development occurring within the adjacent Ramsgate Specific Plan. - c. The proposed R-l zone provides development standards that protect the public healthy, safety and general welfare of persons residing or working within the neighborhoods in the area or within the City. The proposed project shall comply with these standards. d. The project site constitutes an island of existing RR - Rural Residential zoning, between the residential uses in the Ramsgate Specific Plan, R-l zoning to the south, and existing residential neighborhoods to the west. 2. The proposed amendment will be consistent with the latest General Plan. a. The proposed R-l zoning is consistent with the existing General Plan designation of Low Medium Density Residential, 6 dwelling units per acre. SECTION 3: ZONING RECLASSIFICATION The Official Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: Assessor's Parcel Numbers 347-330-019, -045, -046, -050 thru -053, to "Rl - SINGLE FAMILY RESIDENTIAL" UNDER THE ZONING ORDINANCE - ORDINANCE NO. 1128 ZONE CHANGE NO. 2004-09 SEPTEMBER 28, 2004 PAGE 30F4 Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan, and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. The City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located, and has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). ....... SECTION 4: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 28th day of September, 2004 by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: BUCKLEY ABSTAIN: COUNCILMEMBERS: NONE ./ ---< ORDINANCE NO. 1128 ZONE CHANGE NO. 2004-09 SEPTEMBER 28, 2004 PAGE 40F4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this lzth day of October, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE - I - ~;i2~ ~~ ViCklLyn~ad, City Clerk B (SEAL) - 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 28th day of September, 2004, and presented for second reading by title only for adoption on the 12th day of October, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE - ABSENT: COUNCILMEMBERS: (J. ~Sf4>. I COUNCILMEMBERS: 2)~~ VICKI kASAD, CITY CLERK CiTY OF LAKE ELSINORE NONE NONE (SEAL) > 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. 1128 of said Council, and that the same has not been amended or repealed. D'7...D:Oc~ober_19, 2004 ~~LERK cr:ry DF LAKE ELSINORE (SEAL J ORDINANCE NO. 1129 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING ZONE CHANGE NO. 2004-01, CHANGING THE ZONING DESIGNATION FROM "RR- RURAL RESIDENTIAL" TO "Rl - SINGLE F AMIL Y RESIDENTIAL," UNDER THE ZONING ORDINANCE, ON IO:!: ACRES LOCATED APPROXIMATELY TWO MILES NORTHEAST OF THE INTERSTATE IS/STATE HIGHWAY 74 (CENTRAL AVENUE) INTERCHANGE, AT THE SOUTHERN END OF TRELLIS LANE, SOUTH OF SHARON STREET, AND KNOWN AS ASSESSOR'S PARCEL NOS. 347-110-021. WHEREAS, an application has been filed with the City of Lake Elsinore by The Sauls Company to change the zoning designation on approximately 10::!:: acres of unimproved property from "RR - Rural Residential" to "R-1" Single Family Residential;" and - WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on August 17, 2004, made its report upon the desirability of the proposed project and made its recommendations in favor of Zone Change No. 2004-01 by adopting Planning Commission Resolution No. 2004-116 recommending to the City Council approval of Zone Change No. 2004-01; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on October 12,2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered proposed Zone Change No. 2004- 01 prior making a decision. The City Council finds and determines that Mitigated Negative Declaration No. 2004-05 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project. Although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. , " ORDINANCE NO. 1129 ZONE CHANGE NO. 2004-01 OCTOBER 12, 2004 PAGE 20F4 SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore Municipal Code, the following findings for the approval of Zone Change No. 2004-01 have been made as follows: 1. The proposed amendment will not be (1) detrimental to the health, safety, comfort, or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, (2) injurious to property or improvements in the neighborhood or within the City. a. The proposed zoning of R-l Single Family Residential is the most similar zoning to the residential development occurring within the adjacent Ramsgate Specific Plan. If the subject property had remained part of a future specific plan, there is every likelihood that a transition such as the one proposed would have been designed for the area. b. The proposed R-l zone provides development standards that protect the public health, safety and general welfare of persons residing or working within the neighborhoods in the area or within the City. The proposed project shall comply with these standards. 2. The proposed amendment will be consistent with the latest General Plan. a. The proposed R-l zoning is consistent with the existing General Plan designation of "Future Specific Plan F," which accommodates residential development at a maximum density of 6 dwelling units per acre. The General Plan identifies issues to be addressed in this area, namely hillside grading, compatibility of development to adjacent uses, and impacts to biological resources. These issues were reviewed, addressed and considered by the Initial Environmental Study and within the design of this project. SECTION 3: ZONING RECLASSIFICATION The Official Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: Assessor's Parcel Numbers 347-110-021 to "Rl - SINGLE FAMILY RESIDENTIAL" UNDER THE ZONING ORDINANCE ORDINANCE NO. 1129 ZONE CHANGE NO. 2004-01 OCTOBER 12, 2004 PAGE 30F4 Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan, and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. The City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located, and has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). - SECTION 4: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 12th day of October, 2004 by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NONE NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ORDINANCE NO. 1129 ZONE CHANGE NO. 2004-01 OCTOBER 12, 2004 PAGE 40F4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 26th day of October, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE - (SEAL) --- 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 12th day of October, 2004, and presented for second reading by title only for adoption on the 26th day of October, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELL Y, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE SENT: COUNCILMEMBERS: NONE - ,\~S1\~: ycorCILMEMBERS: VI~~D~ERK CITY OF LAKE ELSINORE NONE (SEAL) STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of rdinance No. 1129 of said Council, and that the same has not been amended or repealed. PI. E~: o~~ 200j C I KASA~~ERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1131 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE NO. 2004-11 CHANGING THE ZONING DESIGNATION OF THE PARCELS SPECIFICALLY DESCRIBED AS APN(S) 363-172-004, 013 AND 020 FROM C-l NEIGHBORHOOD COMMERCIAL TO C-2 GENERAL COMMERCIAL DISTRICT UNDER THE ZONING ORDINANCE WHEREAS, the City of Lake Elsinore, has initiated proceedings to change the zoning designation of the subject parcels known as APN(s) 363-172-004, 013 and 020 from C-l Neighborhood Commercial District to C-2 General Commercial District; WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on October 19, 2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2004-11 by adopting Planning Commission Resolution No. 2004-149, recommending to the City Council approval of Zone Change No. 2004-11; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on November 09, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Zone Change No. 2004-11, prior to approving suc~ proposal. The City Council finds and determines that this project is consistent with the City's General Plan Environmental Impact Report (EIR). Under the General Plan EIR, the subject site is designated as General Commercial. Therefore, no further environmental clearance is necessary. SECTION 2. That in accordance with State Planning and Zoning Law and the City of Lake Elsinore, the following findings for the approval of Zone Change No. 2004-11 have been made: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. Considering that the General Plan City Council Ordinance No. 1131 Page 2 has designated the property General Commercial, staff concluded that the area will not be degraded as a result of this project. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the amendment to the Zoning Map is consistent with GOAL 1.0, Objective 1.2 of the General Plan Land Use Element, obligating the City to encourage the development of commercial land uses and revitalization of existing commercial uses that strengthen the city's economic base and offer a range of enterprises that serve the needs of the residents and visitors. SECTION TWO: ZONING RECLASSIFICATION This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: ASSESSOR'S PARCEL NUMBERS 363-172-004, 013 AND 020 TO C-2 GENERAL COMMERICAL DISTRICT UNDER THE ZONING ORDINANCE. Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the commercial needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 3: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. City Council Ordinance No. 1131 Page 3 INTRODUCED AND APPROVED UPON FIRST READING this 9th day of November, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS:- NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED UPON SECOND READING this 23rd day of November, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HI CKMAN, KELLEY, MAGEE, SCHI FFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMB 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 9th day of November, 2004, and presented for second reading by title only for adoption on the 23rdday of November, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE (l\~BS~~ I COUNCILMEMBERS: ~~~CLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1131 of said Council, and that the same has not been amended or repealed. ~~D: ~4' 2004 a~SAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1132 AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT WITH CASTLE & COOKE LAKE ELSINORE OUTLET CENTERS, INC. WHEREAS, Castle & Cooke Lake Elsinore Outlet Centers, Inc., a California limited liability company ("C&CLEOC, Inc.") herein owns approximately 205 acres within the limits of the City east of the 1-15 Freeway and adjacent to Nichols Road and which more particularly described in Exhibit "A" to the attached Development Agreement (the "Property"). WHEREAS, on October 15, 1995, City and Horizon/Glen Outlet Centers Limited Partnership, a Delaware limited partnership, a prior owner of the Property, entered into that certain Agreement to Develop and Operate Shopping Center dated October 15, 1995 (the "Original Development Agreement"). WHEREAS, subsequent thereto, C&CLEOC, Inc. succeeded to all of Horizon/Glen Outlet Centers Limited Partnership's rights, title and interests in and to the Original Development Agreement; WHEREAS, there was a dispute between the City and C&CLEOC, Inc. concerning the respective rights and obligation of the Original Development Agreement to which representatives of the parties have negotiated a resolution that provides for amending the Original Development Agreement. WHEREAS, California Government Code Sections 65864 through 68569.5 authorizes municipalities to enter into development agreements with .persons having a legal or equitable interest in real property in order to strengthen the public planning process, provide greater certainty in the development process and reduce the economic costs of development; WHEREAS, pursuant to Government Code Section 65865 the City has adopted rules and regulations establishing procedures and requirements for consideration of development agreements as set forth in Chapter 19.12 of the Lake Elsinore Municipal Code; WHEREAS, the City and C&CLEOC, Inc. have prepared a development agreement which amends and restates the Original Development Agreement entitled Amended and Restated Agreement to Develop and Operate Shopping Center, attached hereto (the "Amended Development Agreement") with respect to the Property, and proceedings have been taken with respect to the Amended Development Agreement in accordance with the City's rules and regulations; and - WHEREAS, following a duly noticed public hearing on October 19,2004, the Planning Commission of the City of Lake Elsinore approved certain findings and recommended approval of the proposed Amended Development Agreement by the City Council. WHEREAS, in accordance with the terms of the Amended Development Agreement, the City Council desires to terminate the Original Development Agreement with respect to the Property; and Ordinance re Outlet eelIer Development Agmt 1l0304.doc - WHEREAS, the City Council desires to amend and restate the Original Development Agreement with respect to the Property by approving the Amended Development Agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1: FINDINGS The City Council held a duly noticed public hearing on the Amended Development Agreement on November 9, 2004 and based on the information presented, the City Council makes the followip.g findings in accordance with Section 19.12.080 of the Lake Elsinore Municipal Code: 1. The Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan. 2. The Development Agreement is compatible with the uses authorized in, and the regulations prescribed for in the General Plan. 3. The Development Agreement is in conformity with public convenience, general welfare and good land use practices. 4. The Development Agreement will not be detrimental to the health, safety and general welfare of the community. 5. The Development Agreement will not adversely affect the orderly development of property or the preservation of property values. 6. The Development Agreement is consistent with the provisions of Government Code Sections 65864-65869.5. SECTION 2: CEQA The City has properly reviewed and assessed the Amended Development Agreement pursuant to the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.), the "CEQA Guidelines" (Title 14, California Code of Regulations Section 15000 et seq.) and the City's local guidelines promulgated thereunder (hereinafter collectively referred to as "CEQA") and that the Amended Development Agreement has complied with the requirements of the CEQA under the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. As a restatement of the project approved in 1995, the Amended Development Agreement does not have the potential to cause an environmental impact and will not result in any physical impact on the environment beyond the project approved in 1995. C&CLEOC, Inc. and the City shall prepare all necessary and appropriate environmental documentation in connection with all future development approvals, which shall be subject to CEQA evaluation and any required mitigation measures. Ordinance re Outlet Certer Development Agmt l10304.doc 2 SECTION 3: AGREEMENT APPROV AL OF AMENDED DEVELOPMENT The City Council hereby approves the Amended Development Agreement between the City of Lake Elsinore and Castle & Cooke Lake Elsinore Outlet Centers, Inc., attached hereto as Exhibit A and incorporated herein by reference. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Amended Development Agreement on behalf of the City of Lake Elsinore. SECTION 4: RECORDATION The City Clerk is directed to transmit the Amended Development Agreement to the County Recorder for recordation no later than ten (l0) days after the adoption of this Ordinance. SECTION 5: TERMINATION The City of Lake Elsinore hereby terminates that certain Original Development Agreement with respect to the Property. SECTION 6: SEVERABILITY If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 7: . NOTICE OF ADOPTION The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. SECTION 8: EFFECTIVE DATE This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. PASSED, UPON FIRST READING this 9th day of November, 2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE Ordinance re Outlet Certer Development Agmt II 0304.doc 3 PASSED, APPROVED AND ADOPTED this 11. day of November ,2004, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: , Mayor ST: . ,~D:.1d Vicki Kasad, -ity Clef - Ordinance re Outlet Certer Development Agmt l10304.doc 4 - 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 9th day of November, 2004, and presented for second reading by title only for adoption on the 23fdday of November, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ~BSENT: COUNCILMEMBERS: NONE - A~ST~~ fOUNCILMEMBERS: KI SA~ CLERK CITY OF LAKE ELSINORE NONE (SEAL) 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. 1132 of said Council, and that the same has not been amended or repealed. ORDINANCE NO. 1133 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 2.08.025 OF THE LAKE ELSINORE MUNICIPAL CODE CHANGING THE DATE OF THE CITY'S GENERAL MUNICIPAL ELECTION AND ADDING SECTION 2.08.026 PROVIDING FOR THE EXTENSION OF TERMS WHEREAS, General Municipal Elections in the City of Lake Elsinore are held on the first Tuesday after the first Monday in November of odd-numbered years; WHEREAS, California Election Code Sections 1301 and 10403.5 authorize the City to change the date of general municipal elections to coincide with the election dates of the statewide direct primary, statewide general election or the day of school district elections; and - WHEREAS, the City Council finds that its goals of encouraging maximum voter turn-out will be promoted by changing the City's General Municipal Election date from the first Tuesday after the first Monday of November in each odd-numbered year to coincide with the statewide general election on the first Tuesday after the first Monday in each even-numbered year and that the City's request to consolidate the City's General Municipal Elections with the statewide general election conducted on the first Tuesday after the first Monday in November of even- numbered years is in the best interests of the voters of the City of Lake Elsinore. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS: SECTION 1. Change in General Municipal Election Date. That Section 2.08.025 of the Lake Elsinore Municipal Code is hereby amended as follows: "Section 2.08.025 City Council Elections. Commencing November 2006, general municipal elections shall be held in the City of Lake Elsinore on the first Tuesday after the first Monday in November of each even-numbered year. All other municipal elections, which may be held by authority of the constitution and laws of the State of California, shall be known as special municipal elections." SECTION 2. Extension of Terms of Office. That Section 2.08.026 is added to the Lake Elsinore Municipal Code as follows: "Section 2.08.026 Extension of Terms. A. The term of those Councilmembers of the City of Lake Elsinore whose office would have, prior to the adoption of Ordinance 1133, expired following the November 2005 general municipal election shall be extended for twelve months until the November 2006 general municipal election pursuant to Elections Code Section 10403.5. PAGE TWO - ORDINANCE NO. 1133 - B. The term of those Councilmembers of the City of Lake Elsinore and the elected City Treasurer whose office would have, prior to the adoption of Ordinance 1133, expired following the November 2007 general municipal election shall be extended for twelve months until the November 2008 general municipal election pursuant to Elections Code Section 10403.5." SECTION 4. Severability. If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5. Transmittal to County. The City Clerk is hereby directed to transmit a copy of this Ordinance to the Clerk of the Board of Supervisors of the County of Riverside, together with the request that said Board approve the change of the City of Lake Elsinore General Municipal Elections to the first Tuesday after the first Monday in each even-numbered year to allow consolidation with the statewide general election and provide the City with notice of such approval. SECTION 6. Effective Date and Operational Dates. This Ordinance shall take effect - thirty (30) days after its final passage and shall become operative upon approval by the Riverside County Board of Supervisors. Within 30 days of the operative date, the City Clerk shall cause a notice to be mailed to all registered voters of the City of Lake Elsinore informing them of the change in the general municipal election date. SECTION 7. Posting and Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the manner required by law. PASSED, UPON FIRST READING this 23rd day of November, 2004, by the following vote: AYES: NOES: ABSENT: ABSTENTIONS: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: HICKMAN, MAGEE, BUCKLEY KELLEY, SCHIFFNER NONE NONE PASSED, UPON SECOND READING this 14th of December, 2004, by the following vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, BUCKLEY City COlUlCil Ordinance Amending Section 2.08.025 2 11117/04 PAGE THREE - ORDINANCE NO. 1133 NOES: ABSENT: ABSTENTIONS: 2)R &J Vicki Kasad, City Clerk (SEAL) - COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: City COlUlcil Ordinance Amending Section 2.08.025 KELLEY, SCHIFFNER NONE NONE Thomas , May City of Lake Elsi 3 11/17/04 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 23 rd day of November, 2004, and presented for second reading by title only for adoption on the 14th day of December, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, MAGEE, BUCKLEY NOES: COUNCILMEMBERS: KELLEY, SCHIFFNER ABSENT: COUNCILMEMBERS: NONE ,~~.ST\A . 0JL VICKI KASA , CITY CLERK CITY OF LAKE ELSINORE CILMEMBERS: NONE (SEAL) 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. 1133 of said Council, and that the same has not been amended or repealed. Df'ED:\ JanlJl!fY 12,2005 Z. ))~ (\- "J~ CKI KASA , CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1134 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING ZONE CHANGE (PRE-ZONE) NO. 2004-04 CHANGING THE ZONING DESIGNATION OF THE PARCELS SPECIFICALL Y DESCRIBED AS APN(s) 349-400-005, 349- 430-011 & 012 AND A PORTION OF 349-430-006 TO R-l SINGLE FAMILY RESIDENTIAL DISTRICT UNDER THE ZONING ORDINANCE SUBJECT TO COMPLETION OF ANNEXATION NO. 71. WHEREAS, an application, authorized by Jack and Betty Luster and Everada Merritt (Property owners) and filed by Dave Mello, Cent ex Home-Inland Empire initiating proceedings to change the zoning (pre-zoning) designation of the subject parcels known as APN(s) 349-400- 005,349-430-011 & 012 and a portion of 349-430-006 to R-l Single Family Residential District under the Zoning Ordinance subject to the completion of Annexation No. 71; and WHEREAS, the Planning Commission of the City of Lake Elsinore at a regular meeting held on December 7,2004 made its report upon the desirability of the proposed project and made its recommendations in favor of said Zone Change No. 2004-04 by adopting Planning - Commission Resolution No. 2004-160 recommending to the City Council approval of Zone Change No. 2004-04; and WHEREAS, public notice of said application has been given, and the City Council has considered evidence presented by the Community Development Department and other interested parties at a public hearing held with respect to this item on December 14, 2004; NOW THEREFORE, the City Council of the City of Lake Elsinore DOES HEREBY RESOLVE as follows: SECTION 1. The City Council has considered the proposed Zone Change (Pre-Zone) No. 2004-04, prior to making a decision to approve the proposed amendment to the Land Use Designation and establish a Zoning Designation. The City Council finds and determines that Mitigated Negative Declaration No. 2004-09 is adequate and prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) which analyzes environmental effects of the proposed project, based upon the following findings and determinations: 1. Revisions in the project plans or proposals made by or agreed to by the applicant before a proposed mitigated negative declaration and initial study are released for public review would avoid the effects or mitigate the effects to a point where clearly no significant effects would occur; and CITY COUNCIL ORDINANCE NO. 1134 ZONE CHANGE (PRE-ZONE) NO. 2004-04 PAGE 2 The applicant has made revisions to the project or has agreed to specific conditions, which would avoid the effects or mitigate the effects of the project to a point where no significant effects would occur. 2. There is no substantial evidence, in the light of the whole record before the agency, that the project as revised may have significant effect on the environment. Pursuant to the evidence received in the light of the whole record presented to staff the project will not have a significant effect on the environment considering the applicable Conditions of Approval and Mitigation Monitoring Program. SECTION 2. That in accordance with State Planning and Zoning law and the City of Lake Elsinore the following findings for the approval of Zone Change (Pre-Zone) No. 2004-04 have been made as follows: 1. The proposed zone change will not be; a) detrimental to the health, safety, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City, or b) injurious to the property or improvements in the neighborhood or within the City. The proposed Zone Change has been analyzed relative to its potentiality to be detrimental to the health, safety, comfort and welfare of the persons residing or working within the neighborhood of the proposed amendment. The primary issue identified by staff relates to the traffic impacts of the proposed density. Staff, concluded, based on the Traffic Analysis, that the Level of Service for the intersections in the Study Area will not be degraded as a result of this project upon completion of the annexation. 2. The proposed action will be consistent with the Goals, Objectives, and Policies of the General Plan and the development standards established with the Lake Elsinore Municipal Code (LEMC). Based on its analysis, staff has concluded that the requested amendment to the General Plan Land Use Map and the corresponding Zone Change, allowing the development of the subject project, upon completion of the annexation is consistent with GOAL 1. 0 of the General Plan Housing Element, obligating the City to provide "decent housing opportunities and a satisfYing living environment for residents of Lake Elsinore". CITY COUNCIL ORDINANCE NO. 1134 - ZONE CHANGE (PRE-ZONE) NO. 2004-04 PAGE 3 SECTION 3 (ZONING RECLASSIFICATION). This Zoning Map of the City of Lake Elsinore, California, is hereby amended by changing, reclassifying and rezoning the following described property, to wit: ASSESSOR'S PARCEL NUMBERS 349-400-005, 349-430-011 & 012 AND A PORTION OF 349-430-006: TO R-1 SINGLE F AMIL Y RESIDENTIAL DISTRICT UNDER THE ZONING ORDINANCE UNDER THE ZONING ORDINANCE Approval is based on the following: 1. The proposed Zoning is consistent with the Goals, Policies, and Objectives in the General Plan. 2. The proposed Zoning is consistent with the General Plan and the various land uses authorized by the Ordinance are compatible with the objectives, policies, general land uses, and programs specified in the Plan. (Government Code Section 65860). 3. Reasons why the City has considered the effect of Zoning Ordinances on the regional housing needs in which the City is located and how the City has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Government Code Section 65863.6). SECTION 4: This Ordinance shall take effect thirty (30) days after the date of its final passage. The City Clerk shall certify as to adoption of this Ordinance and cause this Ordinance to be published and posted in the manner required by law. INTRODUCED AND APPROVED UPON FIRST READING this 14TH day of December, 2004, upon the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE CITY COUNCIL ORDINANCE NO. 1134 ZONE CHANGE (PRE-ZONE) NO. 2004-04 PAGE 4 PASSED, APPROVED AND ADOPTED UPON SECOND READING this 28 day of Deeemher,- 2804, upon the following roll call vote: AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE AfEST: I I 2)~D.'A' )~~FO\ ABSTAIN: COUNC[LMEMBE~~ Robe~t E. MafJee, Mayor City of Lake Elsinore Vicki Kasad, City Clerk 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 14th day of December, 2004, and presented for second reading by title only for adoption on the 28th day of December, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE - ~: }/ COIDTLMEMBERS: CKIKASA~ CITY OF LAKE ELSINORE NONE (SEAL) STATE OF CALIFORNIA) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 1134 of said Council, and that the same has not been amended or repealed. ,R~~D: D~~er 30,/004 (();Jt~~ VICKI KASAD, CITY CLERK CITY OF LAKE ELSINORE (SEAL) ORDINANCE NO. 1135 AN ORDINANCE OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 8.32 OF THE LAKE ELSINORE MUNICIPAL CODE REGARDING WEED AND RUBBISH ABATEMENT WHEREAS, Chapter 8.32 of the Lake Elsinore Municipal Code establishes the procedures for weed and rubbish abatement for'the City of Lake Elsinore; and WHEREAS, it is the purpose and intent ofthe City Council ofthe City of Lake Elsinore to amend and restate Chapter 8.32 ofthe Lake Elsinore Municipal Code in order to enhance fire prevention practices and eliminate public nuisances in the City of Lake Elsinore; and THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ORDAINS AS FOLLOWS: SECTION 1: That Subsection B. of Section 8.32.010 of Chapter 8.32 ofthe Lake Elsinore Municipal Code is hereby redesignated as Subsection C. of Section 8.32.010. That Subsection B. of Section 8.32.010 of Chapter 8.32 ofthe Lake Elsinore Municipal Code is hereby added as follows: B. "Rubbish, refuse and dirt" includes unused or discarded matter having no substantial market value, which is exposed to the elements and is not enclosed by any structure or otherwise consist of such matter as trash, rubble, asphalt, and accumulated dirt from other sites or for which there is no City approved grading permit. That Subsection D. of Section 8.32.010 of Chapter 8.32 ofthe Lake Elsinore Municipal Code is hereby added as follows: D. designee. That Subsection C. of Section 8.32.010 of Chapter 8.32 ofthe Lake Elsinore Municipal Code is hereby redesignated as Subsection E. of Section 8.32.0 I 0, and is hereby amended to add as follows: "Superintendent of Public Works" means the Director ofCommunity Services or 6. Any accumulation of dry grasses or other flammable vegetation within fifty (50) feet of any above ground flammable liquid. 7. Trees, if determined to increase the fire hazard, due to mortality, insect infestation, disease, or lack of maintenance. I f" SECTION 2: That Section 8.32.035 is hereby added to Chapter 8.32 ofthe Lake Elsinore Municipal Code as follows: 8.32.035 Weed Abatement Guidelines The Superintendent of Public Works shall prepare weed abatement guidelines to assist property owners in meeting the requirements of this chapter. Such guidelines shall be available to the public at no charge. SECTION 3: That Section 8.32.040, within the second sentence, the words "same calendar year" are hereby deleted and such deleted words are replaced as follows: "within the one year period following adoption of the resolution as provided in this chapter" SECTION 4: That Section 8.32.055 is hereby added to Chapter 8.32 of the Lake Elsinore Municipal Code as follows: 8.32.055 Recurrent Rubbish - Abatement Notice At the time it adopts the resolution as provided in this chapter, the City Council may also find and declare that rubbish, refuse and dirt on specified parcels of property are recurrent nUIsances. Such recurrent nuisances shall be abated in accordance with the provisions of this chapter, provided that upon the second and any subsequent occurrence of such nuisance on the same parcel or parcels within the same one year period, no further hearings need be held and it shall be sufficient to mail a postcard notice to the owner of the property as they and their addresses appear upon the current assessment roll. The notice shall refer to and describe the property and shall state that rubbish, refuse and dirt of a recurrent nature are present on the property and that same constitute a public nuisance which must be abated by removal of such rubbish, refuse and dirt, and that otherwise they will be removed and the nuisance will be abated by City authorities, in which case the cost of such removal shall be assessed upon the parcel and lands from which or in front of which such rubbish, refuse and dirt are removed and that, upon confirmation, such cost will constitute a fine upon such parcel or lands until paid. SECTION 4: SEVERABILITY If any provision, clause, sentence or paragraph of this ordinance or the application thereofto any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance and are hereby declared to be severable. SECTION 5: NOTICE OF ADOPTION The City Clerk shall certify as to adoption ofthe Ordinance and cause this Ordinance to be published and posted in the manner required by law. 2 SECTION 6: EFFECTIVE DATE This Ordinance shall take effect thirty (30) days after the date of its passage. The City Clerk shall certify as to adoption of the Ordinance and cause this Ordinance to be published and posted in the manner required by law. PASSED, UPON FIRST READING this ~ day of December , 2004, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER BUCKLEY NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE PASSED, APPROVED AND ADOPTED this ~ day of December ,20011, by the following roll call vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE f~t~J Vicki Kasad, City Clerk 3 - 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 14th day of December, 2004, and presented for second reading by title only for adoption on the 28th day of December, 2004, and approved, by the following roll call vote: AYES: COUNCILMEMBERS: HICKMAN, KELLY, MAGEE, SCHIFFNER, BUCKLEY NOES: COUNCILMEMBERS: NONE - , B~T~J')/ C;lCILMEMBERS: K~. VICKI KASAD, CITY CL RK CITY OF LAKE ELSINORE COUNCILMEMBERS: NONE NONE (SEAL) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS: CITY OF LAKE ELSINORE) I, VICKI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE, DO HEREB Y CERTIFY that the above and foregoing is a full, true and correct copy of Ordinance No. 1135 of said Council, and that the same has not been amended or repealed. ~ED' ,_Dle b 30, 2004 ~ I CKI KASA , CIT~RK CITY OF LAKE ELSINORE (SEAL)