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HomeMy WebLinkAboutCC Reso No 2016-119 CFD 2007-4 Makenna Court Consideration Amendment Rate Method Special Tax Bonded Amount IncreaseRESOLUTION NO. 2016 -119 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007 -4 (MAKENNA COURT), DECLARING ITS INTENTION TO CONSIDER AN AMENDMENT TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX, TO INCREASE THE AMOUNT OF AUTHORIZED BONDED INDEBTEDNESS TO BE INCURRED BY THE DISTRICT AND TO INCLUDE ADDITIONAL SERVICES eiirunR17�TO BE PROVIDED BY THE DISTRICT Whereas, on August 28, 2007, the City Council of the City of Lake Elsinore (City Council) adopted Resolution No. 2007 -156 stating its intention to form the City of Lake Elsinore Community Facilities District No. 2007 -4 (Makenna Court) (Community Facilities District No. 2007 -4 or District) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Act); and, Whereas, on August 28, 2007, the City Council also adopted Resolution No. 2007 -157 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $4,000,000 to finance the facilities and improvements identified in Exhibit "B" to Resolution No. 2007 -156 (collectively, the Improvements); and the incidental expenses to be incurred in financing the Improvements and forming and administering the District (Incidental Expenses); and, Whereas, pursuant to Resolution No. 2007 -156, the City Council also stated its intention to finance parks, open space and storm drain maintenance services (Services) within the District through the levy of a services special tax in accordance with the Rate and Method (as defined below); and, Whereas, a notice calling a Public Hearing (Hearing) on October 9, 2007, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2007 -4 and to incur bonded indebtedness within Community Facilities District No. 2007 -4; and, Whereas, on October 9, 2007, the City Council conducted a noticed Hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2007 -4, issue bonds for the benefit of Community Facilities District No. 2007 -4 to pay for the Improvements and Incidental Expenses and authorize the Rate and Method of apportionment of the special taxes in the form attached as Exhibit "A" to Resolution No. 2007 -156 (Rate and Method) to be levied within Community Facilities District No. 2007 -4 for the purposes described in Resolution No. 2007 -156; and, Whereas, at the October 9, 2007, Hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2007 -4, the levy of the special taxes in accordance with the Rate and Method and the issuance of bonds within Community Facilities District No. 2007 -4 to pay for the cost of the proposed Improvements and Incidental Expenses were heard and a full and fair Hearing was held; and, Whereas, after the Hearing, on October 9, 2007; the City Council adopted, Resolution Nos. 2007- 177 (Resolution of Formation) and 2007 -178 (Resolution to Incur Bonded Indebtedness) which formed the District and called a Special Election on October 9, 2007, within the District on three propositions relating to the levying of the special taxes, the incurring of bonded indebtedness and CC Reso. No. 2016 -119 Page 2 of 4 the establishment of an appropriations limit for the District, which were approved by more than two - thirds vote by the qualified electors on October 9, 2007; and, Whereas, pursuant to Resolution No. 2007 -179, adopted on October 9, 2007, the City Council, acting as the legislative body of Community Facilities District No. 2007 -4, declared the results of the Special Election and directed the recording of a Notice of Special Tax Lien within Community Facilities District No. 2007 -4; and, Whereas, the District has received a petition signed by SAM - McKenna, LLC, a California limited liability company (Owner), which owns land within Community Facilities District No. 2007 -4, the boundaries of which are described herein in Attachment "A," which petition meets the requirements of Section 53332 of the Act, requesting that the District initiate proceedings to (i) approve the new Rate and Method of apportionment for Community Facilities District No. 2007- 4, attached hereto as Attachment "B" (First Amended Rate and Method); (ii) increase the amount of bonded indebtedness authorized to be incurred by the District from $4,000,000 to $6,000,000, to finance the Improvements and the Incidental Expenses and (iii) to include the services set forth in the definition of "Services" in the First Amended Rate and Method as services authorized to be provided by the District; and, Whereas, the District desires to enter into a reimbursement agreement with the Owner, the form of which is on file with the City Clerk (Reimbursement Agreement), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the change proceedings described herein; and, Whereas, the District, the Owner and the Elsinore Valley Municipal Water District (Water District) proposes to enter into a Joint Community Facilities Agreement (JCFA) relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act; and, Whereas, the District and Owner have determined that the proposed development project will annex into the City's existing public safety district (CFD No. 2015 -1) and the City has determined to contribute towards a portion of the actual costs of certain public improvements that will be constructed by the Developer that are of a general benefit to the community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDERAS FOLLOWS: Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District. Section 2. The City Council, acting as the legislative body of the District, declares its intention to conduct proceedings pursuant to the Act to consider (i) amending and restating the Rate and Method with the First Amended Rate and Method; (ii) increasing the amount of bonded indebtedness authorized to be incurred by the District from $4,000,000 to $6,000,000 and (iii) including the services set forth in the definition of "Services ". in the First Amended Rate and Method as services that the District is authorized to provide, which services shall be in additional to the services set forth in the Resolution of Formation. CC Reso. No. 2016 -119 Page 3 of 4 Section 3. The Improvements proposed to be provided within the District are public facilities as defined in the Act. The Improvements and Incidental Expenses authorized to be financed by the District are described in the Resolution of Formation. The City and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate the Improvements for the benefit of the District. The Services proposed to be provided within the District are public services as defined in the Act, the Services authorized to be financed by the District are described in the Resolution of Formation and the First Amended Rate and Method. Section 4. A Hearing on the levy of special taxes in the District in accordance with the First Amended Rate and Method, the proposed issuance of bonds for the District in an amount not to exceed $6,000,000 and the addition of the services to be provided by the District as set forth in the definition of "Services" in the First Amended Rate and Method, shall be held at 7:00 p.m., or as soon thereafter as practicable, on December 13, 2016, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to submit the proposed First Amended Rate and Method and the proposed issuance of bonds to the qualified electors of the District, a Special Election will be held to authorize the First Amended Rate and Method and the proposed issuance of bonds in accordance with the procedures contained in Government Code Section 53326. If such election is held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the District. Ballots for the Special Election may be distributed by mail or by personal service. Section 5. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the District, may appear and be heard. Section 6. The City Clerk is hereby directed to publish a Notice of the Hearing (Notice) pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area within Community Facilities District No. 2007 -4. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of Community Facilities District No. 2007 -4 at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven days prior to the date of the Hearing. Section 7. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Improvements and Incidental Expenses is Six Million Dollars ($6,000,000). Section 8. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval. CC Reso. No. 2016 -119 Page 4 of 4 Section 9. The City Manager is hereby directed to prepare a cost - sharing /reimbursement agreement, in such form as approved by the City Attorney, providing for the contribution of capital improvement program funds in an amount not to exceed $130,000 for construction of certain public road improvements by the Developer, namely the intersection of Terra Cota Street and Lakeshore Drive, such contribution to be conditioned upon the Developer's consent to annex the proposed development into CFD 2015 -1. The City Manager is further authorized to execute such agreement and to take all necessary and reasonable actions in effecting the intent of this Section 9. Section 10. This Resolution shall be effective upon its adoption. Passed and Adopted this 25th day of October, 2016. Brian a e, Mayor ATTEST: Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2016 -119 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of October 25, 2016 and that the same was adopted by the following vote: AYES: Council Members Hickman, Johnson, and Manos; Mayor Pro Tern Magee and Mayor Tisdale NOES: None ABSENT: None ABSTAIN: None _ i Susan M. Domen, MMC City Clerk PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE REQUESTING INSTITUTION OF CHANGE PROCEEDINGS FOR CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-4 (MAKENNA COURT) 1. The undersigned (the "Owner ") is the owner of more than 10% of the land described in Exhibit A hereto (the "Property"), which land is all of the land included within the boundaries of City of Lake Elsinore Community Facilities District No. 2007 -4 (MaKenna Court) (the "District "). The Property is located within the City of Lake Elsinore (the "City ") in the County of Riverside. 2. The Owner requests, pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the "Mello -Roos Community Facilities Act of 1982" (the "Act "), that the City Council of the City (the "City Council ") institute proceedings to (i) approve the new rate and method of apportionment for the District, attached hereto as Exhibit B (the "First Amended Rate and Method "); (ii) increase the amount of bonded indebtedness authorized to be incurred by the District from $4,000,000 to $6,000,000, to finance certain improvements and incidental expenses (the "Facilities ") of the District previously authorized in connection with the formation of the District and (iii) to revise the services (the "Services ") to be provided by the District to include the services described in the definition "Service Area" in the First Amended Rate and Method, which services shall be in addition to all services previously authorized to be provided by the District. 3. The Owner further requests that the City Council authorize the levy of special taxes in accordance with the First Amended Rate and Method in the District to pay the costs of the Facilities and the Services and the incidental Costs described in paragraph 2 above and to pay principal of, interest and premium, if any, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 2 above. 4. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually levy special taxes for the Facilities on the property within the District for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on the bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District. 1 5. The Owner has advanced to the City the amounts necessary to pay for the costs related to the change proceedings for the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is expected to be governed by the terms of that certain Reimbursement Agreement to be entered into by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Reimbursement Agreement. Dated: September 30, 2016 0 A A R A kf-1W 'XTXT A r r r 2 EXHIBIT A LEGAL DESCRIPTION Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows: 379 - 150 -048 -5 379 - 150 -002 -3 379 - 150 -041 -8 379 -150 -042 -9 379 - 150 -043 -0 379 -150 -050 -6 A -1 EXHIBIT B PROPOSED FIRST AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007-4 (MAKENNA COURT) B- P ATTACHMENT "A" PETITION SIGNED BY SAM - McKenna, LLC (Owner) ATTACHMENT "B" PROPOSED FIRST AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2007 -4 (MAKENNA COURT) AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2007 -4 (MAKENNA COURT) OF THE CITY OF LAKE ELSINORE The following sets forth the Rate and Method of Apportionment for the levy and collection of Special Tax of the City of Lake Elsinore Community Facilities District No. 2007 -4 (Makenna Court) ( "CFD No. 2007 -4 "). The Special Tax shall be levied on and collected 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. 2007 -4 unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided. A. DEFINITIONS "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other recorded County parcel map or similar instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello -Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2 of Title 5 of the California Government Code. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2007 -4 including, but not limited to: the costs of computing the Special Tax for Facilities and preparing the annual Special Tax for Facilities collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2007 -4, or any designee thereof associated with fulfilling the CFD No. 2007 -4 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Tax for Facilities; the costs of the City, CFD No. 2007 -4 or any designee thereof related to an appeal of the Special Tax for Facilities; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2007 -4 for any other administrative purposes of CFD No. 2007 -4, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Tax for Facilities. "CFD Administrator" means an official of the City, or designee thereof, responsible for (i) determining the Special Tax for Facilities Requirement, (ii) determining the Special Tax for Services Requirement, and (iii) providing for the levy and collection of the Special Taxes. "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 for Facilities is being levied, and (ii) that have not been issued a building permit on or before May 11t preceding the Fiscal Year in which the Special Tax for Facilities is being levied. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel Number valid at the time the Special Tax for Facilities is enrolled for the Fiscal Year for which the Special Tax for Facilities is being levied. City of Lake Elsinore Page 1 Community Facilities District No. 2007 -4 (Makenna Court) "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 Special Tax for Facilities" means the Special Tax for Facilities of that name described in Section D below. "Backup Special Tax for Facilities" means the Special Tax for Facilities applicable to each Assessor's Parcel of Developed Property, as determined in accordance with 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 Tax for Facilities within CFD No. 2007 -4 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, reflected on the original construction building permit issued for construction of a Residential Unit, including square footage of internal living space subsequently added to a Residential Unit after issuance of a building permit for expansion or renovation of such Residential Unit. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD" or "CFD No. 20074" means Community Facilities District No. 2007 -4 (Makenna Court) established by the City under the Act. "City" means the City of Lake Elsinore. "City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2007 -4, or its designee. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property, not classified as Approved Property, Undeveloped Property, Provisional Undeveloped Property that are not Exempt Property pursuant to the provisions of Section J. below : (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 for Facilities or Special Tax for Services is being levied, and (ii) a building permit for new construction has been issued on or before May 1St preceding the Fiscal Year in which the Special Tax for Facilities or Special Tax For Services is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tax for Facilities and /or Special Tax-for Services pursuant to Section J, below. "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 City of Lake Elsinore Page 2 Community Facilities District No. 2007 -4 (Makenna Court) 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. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and /or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Category" or "LUC" means any of the categories contained in Section B hereof to which an Assessor's Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor's Parcel as of May 1 preceding the Fiscal Year in which the Special Tax for Facilities is being levied. "Maximum Special Tax for Facilities" means the Maximum Special Tax for Facilities, determined in accordance with Section C, that can be levied by CFD No. 2007 -4 in any Fiscal Year on any Assessor's Parcel. "Maximum Special Tax for Services" means the Maximum Special Tax for Services, as determined in accordance with Section M below that can be levied in any Fiscal Year on any Assessor's Parcel of Developed Property within CFD No. 2007 -4. "Operating Fund" means a fund that shall be maintained for any Fiscal Year to pay for the actual costs of maintenance related to the Services, and the applicable Administrative Expenses. "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Multi- Family Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non- Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) was issued for a non - residential use. The CFD Administrator shall make the determination if an Assessor's Parcel is Non - Residential Property. "Proportionately" means that the ratio of the actual Special Tax for Facilities levy to the applicable Assigned Special Tax for Facilities is equal for all applicable Assessor's Parcels. In case of Developed Property subject to the apportionment of the Special Tax for Facilities under step four of Section F, "Proportionately" in step four means that the quotient of (a) actual Special Tax for Facilities less the Assigned Special Tax for Facilities divided by (b) the Backup Special Tax for Facilities less the Assigned Special Tax for Facilities, 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. City of Lake Elsinore Page 3 Community Facilities District No. 2007 -4 (Makenna Court) "Residential Unit" or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. "Residential Property" means all Assessor's Parcels of Developed Property upon which completed Residential Units have been constructed or for which building permits have been issued for purposes of constructing one or more Residential Units. "Single Family Residential Property" means any Residential Property other than Multi- Family Residential. Property an an Assessor's Parcel. "Services" means maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of such services as determined by the CFD Administrator. "Special Tax for Facilities" means the Special Tax for Facilities to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Undeveloped Property and Provisionally Undeveloped Property to fund the Special Tax for Facilities Requirement. "Special Tax for Facilities Requirement" means that amount required in any Fiscal Year for CFD No. 2007 -4 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the CFD No. 2007 -4 Bonds, including but not limited to, credit enhancement and rebate payments on the CFD No. 2007 -4 Bonds due in the calendar year commencing in such Fiscal Year; (iii) pay a proportionate share of Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay for reasonably anticipated Special Tax for Facilities delinquencies; (vi) pay directly for acquisition or construction of CFD Public Facilities to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on Approved Property or Undeveloped Property; less (vii) a credit for funds available to reduce the annual Special Tax for Facilities levy, as determined by the CFD Administrator pursuant to the Indenture. "Special Tax for Services" means any of the Special Tax for Services authorized to be levied within CFD No. 2007 -4 pursuant to the Act to fund the Special Tax for Services Requirement. "Special Tax for Services Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2007 -4 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of such services as determined by the CFD Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax for Services Requirement include funds for Bonds. "Taxable Property" means all Assessor's Parcels within the boundaries of CFD No. 2007 -4, which are not Exempt Property. "Taxable Unit" means a Residential Unit or an Acre. "Trustee" means the trustee, fiscal agent, or paying agent under the Indenture. City of Lake Elsinore Page 4 Community Facilities District No. 2007 -4 (Makenna Court) "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. B. ASSIGNMENT TO LAND USE CATERGORIES Each Fiscal Year, beginning with Fiscal Year 2017 -18, each Assessor's Parcel within CFD No. 2007 -4 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor's Parcel of axabre- Property 3hall-bi T"urther elassified as'Developed Propertyr pproved Property, Undeveloped Property or Provisional Undeveloped Property. C. MAXIMUM SPECIAL TAX FOR FACILITIES Prior to the issuance of CFD No. 2007 -4 Bonds, the Assigned Special Tax for Facilities on Developed Property (set forth in Table 1), and the Backup Special Tax for Facilities attributable to a Final Map, may be reduced in accordance with, and subject to the conditions set forth in this paragraph. If it is reasonably determined by the CFD Administrator that the overlapping debt burden (as defined in the Statement of Goals and Policies for the Use of the Mello -Roos Community Facilities Act of 1982 adopted by the Council as of the date this Amended and Restated Rate and Method of Apportionment is adopted by City Council, the "Goals and Policies ") calculated pursuant to the Goals and Policies based upon the Assigned Special Tax for Facilities on Developed Property exceeds, the City's maximum level objective set forth in such document, the Assigned Special Tax for Facilities on Developed Property, and the Backup Special Tax for Facilities attributable to a Final Map, may be reduced to the amount necessary to satisfy the City's objective with respect to the maximum overlapping debt burden level with the written consent of the CFD Administrator. The reductions permitted pursuant to this paragraph shall be reflected in an amended notice of Special Tax for Facilities lien which the City shall cause to be recorded by executing a certificate in substantially the form attached hereto as Exhibit "A ". 1. Developed Property The Maximum Special Tax for Facilities for each Assessor's Parcel of Developed Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax for Facilities or (ii) the Backup Special Tax for Facilities. 2. Approved Property, Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for Facilities for each Assessor's Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the applicable Assigned Special Tax for Facilities. D. ASSIGNED SPECIAL TAX FOR FACILITIES 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Single Family Residential Property, Multi - Family Property or Non - Residential Property shall be subject to an Assigned Special Tax for Facilities. City of Lake Elsinore Page 5 Community Facilities District No. 2007 -4 (Makenna Court) The Assigned Special Tax for Facilities applicable to an Assessor's Parcel of Developed Property for Fiscal Year 2017 -18 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR FACILITIES RATES FOR DEVELOPED PROPERTY FISCAL YEAR 2017 -18 2. Approved Pro ert Und eve loped Property and Provisional Undeveloped Pro pert Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2017 -18 shall be $16,583 per Acre. 3. Increase in the Assigned Special Tax for Facilities On each July 1, commencing July 1, 2018, the Assigned Special Tax for Facilities 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. E. BACKUP SPECIAL TAX FOR FACILITIES At the time a Final Map is recorded, the Backup Special Tax for Facilities 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) multiplying (a) the Maximum Special Tax for Facilities rate for Undeveloped Property by (b) the total Acreage of Taxable Property in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property, Acreage classified or reasonably expected to be classified as Multi- Family Residential Property, Acreage classified or reasonably expected to be classified as Non - Residential 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 Residential Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Special Tax for Facilities for each Assessor's Parcel of Single Family Residential Property within such Final Map area. City of Lake Elsinore Page 6 Community Facilities District No. 2007 -4 (Makenna Court) Building Saluare Footage Assigned Special Tax for Facilities $2,301 per RU $2,362per RU Single Family Residential Property Less than or equal to 1,750 sq. ft. Single Family Residential Property 1,751 -1,999 sq. ft. Single Family Residential Property 2,000 — 2,249 sq. ft. $2,485 per RU Single Family Residential Property 2,250 — 2,499 sq. ft. $2,608 per RU Single Family Residential Property 2,500 — 2,749 sq. ft. $2,768 per RU Single Family Residential Property 2,750 — 2,999 sq. ft. $2,854 per RU Single Family Residential Property 3,000 — 3,249 sq. ft. $2,915 per RU Single Family Residential Property 3,250 — 3,500 sq. ft. $3,062 per RU Single Family Residential Property More than or equal to 3,501 sq. ft $3,161 per RU Multi - Family Residential Property N/A $16,583 per Acre Non - Residential Property N/A $16,583 per Acre 2. Approved Pro ert Und eve loped Property and Provisional Undeveloped Pro pert Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be subject to an Assigned Special Tax for Facilities. The Assigned Special Tax for Facilities rate for an Assessor's Parcel classified as Approved Property, Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2017 -18 shall be $16,583 per Acre. 3. Increase in the Assigned Special Tax for Facilities On each July 1, commencing July 1, 2018, the Assigned Special Tax for Facilities 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. E. BACKUP SPECIAL TAX FOR FACILITIES At the time a Final Map is recorded, the Backup Special Tax for Facilities 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) multiplying (a) the Maximum Special Tax for Facilities rate for Undeveloped Property by (b) the total Acreage of Taxable Property in such Final Map area, excluding Acreage classified as Provisional Undeveloped Property, Acreage classified or reasonably expected to be classified as Multi- Family Residential Property, Acreage classified or reasonably expected to be classified as Non - Residential 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 Residential Units reasonably expected to be constructed within such Final Map area. The resulting quotient shall be the Backup Special Tax for Facilities for each Assessor's Parcel of Single Family Residential Property within such Final Map area. City of Lake Elsinore Page 6 Community Facilities District No. 2007 -4 (Makenna Court) The Backup Special Tax for Facilities shall not apply to Multi - Family Residential Property or Non - Residential Property. Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or to be classified as Single Family Residential Property are subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax for Facilities for the area that has been changed or modified shall be recalculated, based on the methodology above, to equal the amount of Backup Special Tax for Facilities that would have been generated if such change did not take Place, On each July 1, commencing July 1, 2018, the Backup Special Tax for Facilities rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. F. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES 1. Special Tax for Facilities Commencing with Fiscal Year 2017 -18 and for each following Fiscal Year, the City Council shall determine the Special Tax for Facilities Requirement and shall levy the Special Tax for Facilities on all Assessor's Parcels of Taxable Property until the aggregate amount of Special Tax for Facilities equals the Special Tax for Facilities Requirement. The Special Tax for Facilities shall be levied for each Fiscal Year as follows: First: The Special Tax for Facilities shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Assigned Special Tax for Facilities to satisfy the Special Tax for Facilities Requirement; Second: If additional moneys are needed to satisfy the Special Tax for Facilities Requirement after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Facilities for Approved Property; Third: If additional monies are needed to satisfy the Special Tax for Facilities Requirement after the first two steps have been completed, the Special Tax for Facilities shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax for Facilities for Undeveloped Property. Fourth: If additional moneys are needed to satisfy the Special Tax for Facilities Requirement after the first three steps have been completed, the Special Tax for Facilities shall be levied on each Assessor's Parcel of Developed Property whose Maximum Special Tax for Facilities is the Backup Special Tax for Facilities and such levy shall be increased Proportionately from the Assigned Special Tax for Facilities up to 100% of the Backup Special Tax for Facilities as needed to satisfy the Special Tax for Facilities Requirement; Fifth: If additional monies are needed to satisfy the Special Tax for Facilities Requirement after the first four steps have been completed, the Special Tax for Facilities shall be levied Proportionately on all Assessor's Parcels of Provisional Undeveloped Property up to 100% of the Maximum Special Tax for Facilities for Provisional Undeveloped Property. City of Lake Elsinore Page 7 Community Facilities District No. 2007 -4 (Makenna Court) Notwithstanding the above, under no circumstances will the Special Tax for Facilities levied in any Fiscal Year against any Assessor's Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax for Facilities applicable to any other Assessor's Parcel be increased by more than ten percent (10 %) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default. G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following additional definti "CFD Public Facilities" means $5,400,000 expressed in 2016 dollars, which shall increase by the Construction Inflation Index on July 1, 2018, 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, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax for Facilities levied under this Amended and Restated 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. 2007 -4. "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 Tax for Facilities 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 Special Tax for Facilities. The Special Tax for Facilities 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 Tax for Facilities, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities 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 Special Tax for Facilities obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such notice, the CFD Administrator shall notify such owner of the Prepayment Amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must City of Lake Elsinore Page 8 Community Facilities District No. 2007 -4 (Makenna Court) be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities - Amount plus Defeasance Cost plus Administrative Fee less Reserve Fund Credit less Capitalized Interest Credit equals 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 Special Tax for Facilities and Backup Special Tax for Facilities, if any, applicable to the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property, compute the Assigned Special Tax for Facilities and the Backup Special Tax for Facilities as though it 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 Special Tax for Facilities 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, (a) divide the Assigned Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Assigned Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the City, and (b) divide the Backup Special Tax for Facilities computed pursuant to paragraph 1 for such Assessor's Parcel by the sum of the estimated Backup Special Tax for Facilities applicable to all Assessor's Parcels of Taxable Property at buildout, as reasonably determined by the CFD Administrator. 3. Multiply the larger quotient computed pursuant to paragraph 2(a) or 2(b) 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 larger quotient computed pursuant to paragraph 2(a) or 2(b) 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 redemption date for the Outstanding Bonds. City of Lake Elsinore Page 9 Community Facilities District No. 2007 -4 (Makenna Court) 8. Determine the actual Special Tax for Facilities levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 9. Estimate the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium until the earliest redemption date for the Outstanding Bonds. 1, 0. Add the amounts computed ;pursuant to paragraph 7 and 8 and subtract the amount computed pursuant to paragraph 9. This difference is the "Defeasance Cost." 11. 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." 12. 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 0. 13. If any capitalized interest for the Outstanding Bonds will not have been expended as of the date immediately following the first interest and /or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 2(a) or 2(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and /or principal payment. This amount is the "Capitalized Interest Credit." 14, The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Cost, and the Administrative Fee, less the Reserve Fund Credit and the Capitalized Interest Credit. 15. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 10, 12, and 13 shall be deposited into the appropriate fund as established under the 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 11 shall be retained by CFD 2007 -4. The Special Tax for Facilities prepayment amount may be insufficient to redeem a full $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments. With respect to a Special Tax for Facilities obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of CFD 2007 -4 that there has been a prepayment of the Special Tax for Facilities obligation and shall cause a suitable notice to be recorded in compliance with the Act City of Lake Elsinore Page 10 Community Facilities District No. 2007 -4 (Makenna Court) within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax for Facilities obligation and the release of the Special Tax for Facilities lien on such Assessor's Parcel and the obligation of such Assessor's Parcel to pay such Special Tax for Facilities shall cease. Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax for Facilities 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. H. PARTIAL PREPAYMENT OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities 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 Tax for Facilities, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the Special Tax for Facilities obligation would be prepaid. The Partial Prepayment Amount shall be calculated according to the following formula: PP= (PG — A)xF +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 for Facilities obligation. A = the Administration Fee calculated according to Section G. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax for Facilities and the percentage by which the Special Tax for Facilities shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for Facilities for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City Council shall (i) distribute the funds remitted to it according to Section G, and (ii) shall indicate in the records of CFD No. 2007 -4 that there has been a partial prepayment of the Special Tax for Facilities 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 for Facilities obligation to indicate the partial prepayment of the Special Tax for Facilities obligation and the partial release of the Special Tax for Facilities lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax for Facilities shall cease. Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax for Facilities 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. City of Lake Elsinore Page 11 Community Facilities District No. 2007 -4 (Makenna Court) 1. TERMINATION OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities shall cease not later than the 2057 -2058 Fiscal Year, however, the Special Tax for Facilities will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on Bonds for which the Special Tax for Facilities has been pledged have been paid; (ii) all authorized facilities for CFD No. 2007 -4 have been acquired, (iii) no delinquent Special Tax for Facilities remain uncollected and (iv) all other obligations of CFD No. 2007 -4 have been satisfied. J. EXEMPTIONS The City shall classify as Exempt Property, in order of priority, (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) Assessor's Parcels restricted to 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 14.24 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 14.24 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 14.24 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax for Facilities pursuant to step five in Section F. K. MANNER OF COLLECTION OF SPECIAL TAX FOR FACILITIES The Special Tax for Facilities shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2007 -4 may collect Special Tax for Facilities at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. L. APPEALS RELATING TO SPECIAL TAX FOR FACILITIES Any property owner claiming that the amount or application of the Special Tax for Facilities is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax for Facilities that is disputed. The CFD Administrator 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 for Facilities, and rule on the appeal. If the CFD Administrator's decision requires that the Special Tax for Facilities 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 Special Tax for Facilities on that Assessor's Parcel in the subsequent Fiscal Year(s). City of Lake Elsinore Page 12 Community Facilities District No. 2007 -4 (Makenna Court) The City Council may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration and levy of the Special Tax for Facilities and any landowner or resident's appeals. Any decision of the City Council shall be final and binding as to all persons. M. SPECIAL TAX FOR SERVICES Commencing with Fiscal Year 2017 -18 and for each following Fiscal Year, the City Council shall deterM —i a -tVe Special Tax- fcsrSLsrvlces- Requirement _and -shall- Fevythe Special Tax for-Services-on all Assessor's Parcels of Developed Property until the aggregate amount of Special Tax for Services equals the Special Tax for Services Requirement. The Special Tax for Services shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax for Services Requirement; Developed Property a. Maximum Special Tax for Services The Maximum Special Tax for Services for each Assessor's Parcel of Developed Property for Fiscal Year 2017 -18 is identified in Table 2 below: TABLE 2 MAXIMUM SPECIAL TAX FOR SERVICES FOR DEVELOPED PROPERTY Land Use Category Taxable Unit Maximum Special Tax Per Taxable Unit 1. Single Family Residential Property RU $307 2. Multi - Family Residential Property RU $154 3. Non - Residential Property Acre _ $685 On each July 1, commencing on July 1, 2018 the Maximum Special Tax for Services for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982 -84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0 %), whichever is greater. N. DURATION OF SPECIAL TAX FOR SERVICES The Special Tax for Services shall be levied in perpetuity to fund the Special Tax for Services Requirement, unless no longer required as determined at the sole discretion of the City Council. O. MANNER OF COLLECTION The Special Tax for Services shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2007 -4 may collect the Special Tax for Services at a different time or in a different manner if necessary to meet its funding requirements. City of Lake Elsinore Page 13 Community Facilities District No. 2007 -4 (Makenna Court) P. APPEALS RELATING TO SPECIAL TAX FOR SERVICES Any property owner claiming that the amount or application of the Special Tax for Services is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax for Services that is disputed. The CFD Administrator 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 for Services, and rule on the appeal. If the CFD Administrator's decision requires that the Special Tax for Services for an — .A- s- sessor's- .Parel-b @4-, rodi Pied- of- oha -nged- in- favo.r..of _the..proper-ty.owner, - -a .cash..refund-shalLnot be. made (except for the last year of levy), but an adjustment shall be made to the Special Tax for Services on that Assessor's Parcel in the subsequent Fiscal Year(s). The City Council may interpret this Amended and Restated Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax for Services and any landowner or residents appeals. Any decision of the City Council shall be final and binding as to all persons. City of Lake Elsinore Page 14 Community Facilities District No. 2007 -4 (Makenna Court) EXHIBIT "A" CITY OF LAKE ELSINORE AND CFD NO. 2007 -4 CERTIFICATE 1. Pursuant to Section C of the Amended and Restated Rate and Method of Apportionment of Special Tax for Facilities (the "RMA "), the City of Lake Elsinore (the "City ") and Community Facilities District No. 2007 -4 of the City of Lake Elsinore ( "CFD No. 2007 -4 ") hereby agree to a reduction in the Assigned Special Tax for Facilities for Developed Property and /or Undeveloped Property as necessary to accomp s as reduction to th—e accup 'peciaTTaxfor Facilities: a) The information in the RMA relating to the Assigned Special Tax for Facilities for Developed Property and /or Undeveloped Property within CFD No. 2007 -4 shall be modified as follows: Description Building Square Footage Assigned Special Tax for Facilities Single Family Residential Property Less than or equal to 1,750 sq. ft. $ per RU Single Family Residential Property 1,751 -1,999 sq. ft. $ per RU Single Family Residential Property 2,000 — 2,249 sq. ft. $ per RU Single Family Residential Property 2,250 — 2,499 sq. ft. $ per RU Single Family Residential Property 2,500 -2,749 sq. ft. $ per RU Single Family Residential Property 2,750 — 2,999 sq. ft. $ per RU Single Family Residential Property 3,000 -3,249 sq. ft. $ per RU Single Family Residential Property 3,250 -3,500 sq. ft. $ per RU Single Family Residential Property More than or equal to 3,501 sq. ft $ per RU Multi - Family Residential Property N/A $ per Acre Non - Residential Property N/A $ _ per Acre Undeveloped Property N/A $ per Acre 2. The Special Tax for Facilities rates for Developed Property and Undeveloped Property may only be modified prior to the issuance of Bonds. 3. Upon execution of the Certificate by the City and CFD No. 2007 -4 the City shall cause an amended notice of Special Tax for Facilities lien to be recorded reflecting the modifications set forth herein. By execution hereof, the undersigned acknowledges, on behalf of the City of Lake Elsinore and CFD No. 2007 -4, receipt of this Certificate and modification of the RMA as set forth in this Certificate. CITY OF LAKE ELSINORE By: CFD Administrator Date: COMMUNITY FACILITIES DISTRICT NO. 2007 -4 OF THE CITY OF LAKE ELSINORE M Assistant City Manager Date: City of Lake Elsinore Page 15 Community Facilities District No. 2007 -4 (Makenna Court)