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HomeMy WebLinkAboutCC Reso No 2006-205RESOLUTION NO. 2006-205 R~SOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-9 (TRIESTE) WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City") has received a petition (the "Petition") requesting the institution of proceedings for (i) formation of a community facilities district (the "CFD") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the "AcY'), (ii) authorization of issuance of bonds for the CFD, and (iii) establishment of an appropriations limit for the CFD; and WHEREAS, the Council has deternuned that the Petition complies with the requirements of Government Code Section 53318(c) and now intends to initiate such proceedings; and WHEREAS, it is the intention of the Council to finance parks, open space and storm drain maintenance services that are in addition to those provided in the territory within the CFD prior to the formation of the CFD and do not supplant services already available within the territory proposed to be included in the CFD tl~rough the formation of the CFD subject to the levy of a special tax to pay for such services, being approved at an election to be held within the boundaries of the CFD; and WHEREAS, it is also the intention of the Council to finance the acquisition and construction of the Facilities (as defined below) or any combination thereof through the formation of the CFD, subject to the authorization of bonds and the levy of a special tax to pay lease payments, installment purchase payments ar other payments, or principal and interest on bonds, being approved at an election to be held within the boundaries of the CFD. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAI~ ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORIDER AS FOLLOWS: SECTION 1. The Council hereby determines to instihzte proceedings far the formation of a community facilities district under the terms of the Act. The exterior boundaries of the CFD are hereby specified and described to be as shown on that certain map now on file in the office of the Clerk entitled "Proposed CITY COUNCIL RESOLUTION NO. 2006-205 PAGE 2 OF 6 Boundary of Community Facilities District No. 2006-9 of the City of Lake Elsinore (Trieste)," which map indicates by a boundary line the extent of the territory included in the proposed community facilities district and shall govern for all details as to the extent of the CFD. On the original and one copy of the map of such CFD on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this resolution. The City Clerk shall file the original of such map in his office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so endorsed in the records of the County Recorder, County of Riverside, State of California. SECTION 2. The name of the proposed CFD shall be "City of Lake Elsinare Community Facilities District No. 2006-9 (Trieste)." SECTION 3. Except where funds are otherwise available, it is the intention of the Council to levy annually in accordance with procedures contained in the Act a special t~ (the "Services Special Tax") sufficient to finance a portion of the cost of providing parks, open space and storm drain maintenance services (the "Services") that are in addition to those provided in the territory within the CFD prior to the formation of the CFD and do not supplant services already available within the territory proposed to be included in the CFD, the costs of administering the levy and collection of the Services Special T~ and all other costs of the levy of the Services Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Services Special Tax will be secured by recordation of a continuing lien against all real properiy in the CFD. The schedule of the rate and method of apportionment and manner of collection of the Services Special Tax is described in detail in Exhibit A attached hereto and by this reference incorporated herein. The Services Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. SECTION 4. The faciliries proposed to be financed by the CFD are public infrastructure facilities and other govemmental facilities with an estimated useful life of five years or longer, which the CFD is authorized by law to construct, own or operate and that are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the proposed CFD, including but not limited to Ciry park and traffic signal improvements, City capital facilities fees, Elsinore Valley Municipal Water District water and sewer capital CITY COiJNCIL RESOLUTION NO. 2006-205 PAGE 3 OF 6 facilities fees and Lake Elsinore Unified School District capital fees, and related costs including designs, inspections, professional fees, annexation fees, connection fees and acquisition costs (the "Facilities"). Such Facilities need not be physically located within the CFD. SECTION 5. Except where fiznds are otherwise available, it is the intention of the Council to levy annually in accardance with procedures contained in the Act a special tax (the "Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities, including the principal of and interest on the bonds proposed to be issued to finance the Facilities and other periodic costs, the establishment and replenishment of reserve funds, the remarketing, credit enhancement and liquidity fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to the expiration of one year from the date of completion of facilities (but not to exceed two years), election costs and a11 costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all real property in the CFD. In the first year in which such a Special Tvc is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax is described in detail in E~ibit A attached hereto and by this reference incorporated herein. The Special T~ is based upon the cost of financing the Facilities in the CFD, the demand that each parcel will place on the Facilities and the benefit (direct and/or indirect) received by each parcel from the Facilities. The Special T~ is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within the CFD shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon the remaining properiy within the CFD which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax. Under no circumstances, however, shall the Special Tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels CITY COUNCIL RESOLUTION NO. 2006-205 PAGE 4 OF 6 within the CFD by more than 10 percent. Furthermore, the maximum special t~ authorized to be levied against any parcel used for private residential purposes shall not be increased over time in excess of 2 percent per year. SECTION 6. The Council hereby finds that the proposed Facilities are necessary to meet increased demands put upon the City as a result of the new development or rehabilitation within the proposed CFD. SECTION 7. A public hearing (the "Hearing") on the establishment of the CFD and the proposed rate and method of apportionment of the Services Special Tax and the Special Tax shall be held on January 23, 2007, at 7:00 p.m., or as soon thereafter as practicable, at the Lake Elsinore Cultural Center located at 183 North Main Street, Lake Elsinare, California 92530. SECTION 8. 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 proposed CFD, may appear and be heard. SECTION 9. Each City officer who is or will be responsible for the Services and the Facilities to be financed by the CFD, if it is established, is hereby directed to study the proposed CFD and, at or before the time of the above- mentioned Hearing, file a report with the Council, and which is to be made a part of the record of the Hearing, containing a brief description of the Services and the Facilities by type which will in his or her opinion be required to adequately meet the needs of the CFD and his or her estimate of the cost of providing the Services and the Facilities. The City Manager is directed to estimate the fair and reasonable cost of all incidental expenses, including the cost of planning and designing the Facilities to be financed pursuant to the Act, including the cost of environmental evaluations of such facilities, all costs associated with the creation of the CFD, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in arder to carry out the authorized purposes of the City with respect to the CFD, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid tl~rough the proposed financing. SECTION 10. The City may accept advances of funds from any sources, including private persons ar private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in creating the CFD. The City may enter into an agreement to repay all of such funds CITY COUNCIL RESOLUTION NO. 2006-205 PAGE 5 OF 6 as are not expended or committed for any authorized purpose at the time of the election on the levy of the Services Special Tax and the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Services Special Tax and the Special T~ shall be approved by the qualified electors of the CFD. SECTION 11. The City Clerk is hereby directed to publish a notice ("I~lotice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed CFD. Such Notice shall contain information set forth in Section 53322 of the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. SECTION 12. The Clerk may send a copy of the Notice by first-class mail, postage prepaid, to each registered voter and to each landowner within proposed CFD as shown on the last eqnalized assessment roll. Said mailing shall be completed not less than fifteen (15) days prior to the date of the Hearing. SECTION 13. Pursuant to Section 53344.1 of the Act, the Council hereby reserves to itself, in its sole discretion, the right and authority by subsequent resolution to allow any owner of properiy within the CFD, subject to the provisions of Section 53344.1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the CFD treasurer in full payment ar part payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be talcen at par and credit to be given for the accrued interest shown thereby computed to the date of tender. SECTION 14. The voting procedure with respect to the establishment of the CFD and the imposition of the special tax shall be by hand delivered or mailed ballot election. SECTION 15. This Resolution shall take effect from and after the date of its passage and adoption. CITY COi1NCIL RESOLUTION NO. 2006-205 PAGE 6 OF 6 PASSED, APPROVED AND ADOPTED this 12th day of December, 2006. AYES: COUNCILMEMBERS: BUCKLEY, HICKMAN, KELLEY, SCHIFFNER, MAGEE NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE ABSTAIN: COUNCILMEMBERS: NONE ~ , ~ Ro`~ert E. Magee, City of Lake Els'v ATTEST: Frederick y, CMC, City Clerk City of Lake Elsinore AP, OVED AS O T~ j ~ ~ / °~ ~ G°~i~~ ~ , rbara Zeid eibold, City Attorney City of Lake Elsinore EXHIBIT A RATE AND METHOD OF APPORTIONIVIENT RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACII.TTIES DISTRICT No. 2006-9 OF THE CITY OF LAKE ELSINORE (TRIESTE) A Special Tax shall be levied on al] Assessor's Parcels in Community Facilities DistrictNo. 2006-9 of the City of Lake Elsinore ( Trieste) ("CFD No. 2006-9") and collected each Fiscal Yeaz commencing in Fiscal Year 2007-2008, in an amount determined through the application ofthis Rate and Method of Apportionment as desccibed below. Alt of the real property in CFD No. 2006-9, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the estent and in the manner herein provided. A. The terms hereinafter set forth have the following meanings "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on or determined from the applicable Assessor's Parcel Map. Notwithstanding the foregoing, the Acreage attributable to a Condominium shall be computed by the CFD Administrator by dividing the total Acreage for the Final Subdivision in which the Condominium is located, less the Acreage for any Property Owner Association Property and/or Public Property, by the total number of Condominiums to be constructed within such Final Subdivision as determined from the applicable Condominium Plan. "AcP' means the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part I, Division 2 of Title 5 of the California Govemment Code. "Administrative Expenses" means the following actual.or reasonably estimated costs directly related to the administration of CFD No. 2006-9: the costs of computing the Special Taxes and prepating the annual Special Tax wllection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the dischazge of the duties required of it under the Indenture; the costs to the City, CFD No. 2006-9 or any designee thereof of complying with azbitrage rebate requirements; the costs to the CiTy, CFD No. 2006-9 or any designee thereof of complying with disclosure requirements of the CiTy, CFD No. 2006-9 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with prepazing Special Tar disclosure statements and responding to public inquiries regarding the Special Tases; the costs of the CiTy, CFD No. 2006-9 or any designee thereof related to an appeal ofthe Special Tas; the costs associated with the release of funds from an escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated by the CFD Administrator or advanced by the CiTy or CFD No. 2006-9 for any other administrative purposes of CFD No. 2006-9, including attomey's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Tases. City ojLake E[srnore November 7, 2006 Community Fqciliries D'uhicf No. 2006-9 (Trieste) pog¢ ] "Assessor's Parcel" means a lot or pazcel, induding but not limited to Condominiums, to which an Assessor's pazcel number is assigned as determined from an Assessor's Pazcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Pazcel number. "Assigned Special Tax for Facili6es" means the Special Ta~c for Facilities for each Land Use Class of Developed Property, as determined in accordance with Section C.I.(b) below. "Authorized Facilities" means those facilities eligible to be funded by CFD No. 2006-9. "Backup Special Tax for Facilities" means the Special Tas for Facilities applicable to each Assessor's Parcel of Developed Property, as detertnined in accordance with Section C1.(c) below. "Certificate of Occupancy" means a certificate issued by the Ciry that authorizes the actual occupancy of a dwelling unit for habitation by one or more residents. "CFD Administrator" means an official of the CiTy, or designee thereof, responsilile for determining the Special Ta~c Requirement for Facilities, the Special Tax Requirement for Services as determined in accordance with Section I below, and providing for the levy and collection of the Special Taxes. "CFD No. 2006-9" means CommuniTy Facilities District No. 2006-9 of the CiTy of Lake Elsinore (Trieste). "CFD No. 2006-9 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 2006-9 and secured solely by the Special Tax for Facilities levy on property within the boundaries of CFD No. 2006-9 under the Act. "City" means the City of Lake Elsinore "Condominium" means a unitmeeting the statutory definition ofa condominium contained in the California Civil Code, Section 1351, and for which a condominium plan has been recorded pwsuant to Califomia Civil Code, Section 1352. "Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 1352. "Council" means the CiTy Council of the City of Lake Elsinore, acting as the Iegislative body of CFD No. 2006-9. "County" means the County of Riverside City ojLake ELsinore Nnvember 7, 2006 Community FneRifies Dishict No. 2006A (Trieste) pqge Z "Developed Property" means, with respectto the Special Tax for Facilities, for each Fiscal Yeaz, all Taxable Property, exclusive of Taxable Public Proper[y and Ta~cable Property Owner Association Property, for which the Final Subdivision was recorded on or before January I ofthe prior Fiscal Year and a building permit for new construction was issued on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax for Facilities is being levied. "NSnal Subdivision" means a subdivision of property by rewrdation of (i) a final maq or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seg.) that creates individual lots for which building permits may be issued, or (ii) lot line adjustment approved by the City. "I~1sca1 Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2006-9 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. °Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax for Facilities" means the maacimum Special Ta~c for Facilities, determined in accordance with Section C below, that can be levied in any Fiscal Yeaz on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the CiTy, and which is not otherwise Residential Proper[y. "Outstanding Bonds" means all CFD No. 2006-9 Bonds which aze deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, (i) any property within the boundazies of CFD No. 2006-9 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year, (ii) any proper[y located in a Final Subdivision that was recorded as of the May 1 preceding the Fiscal Year in which the Special Taac is being levied and which, as determined from such Final Subdivision, is or will be open space, a common area recreation faciliTy, or a private street, or (iii) any proper[y which, as of the May 1 preceding the Fiscal Yeaz for which the Special Taac is being levied, has been conveyed, irrevocably dedicated, or irrevocably offered to a property owner's association, including any master or sub-association, provided such conveyance, dedication, or offer is submitted to the CFD Administrator by May 1 preceding the Fiscal Year for which the Special Tax is being levied. Notwithstanding the preceding, Property Owner Association Property shall not include any property on which Condominiums aze or will be located. City ofLakeElsinore November 7, 2006 Community Faci[i6es Distrtct Nn. 2006-9 (Trieste) poge 3 "Proportionately" means for Developed Property thattheratio ofthe actual Special Ta~c for Facilities levy to the Assigned Special Tax for Facilities is equal for all Assessor's Parcels of Developed Property. For Undeveloped Property, "Proportionately" means that the ratio of the actual Special Taac for Facilities levy per Acre to the Ma~cimum Special Tax for Facilities per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term "Proportionately" may similarly be applied to other categories of Taacable Property as listed in Section D below. "Public Property" means property within the bounduies of CFD No. 2006-9 owned by, irrevocably offered or dedicated to, or over, through or under which an easement for purposes of public use has been granted, to the federal govemment, the State, the County, the City, or any local government or other public agency, provided that any proper[y leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. "Residential Floor Area" means all of the square footage of living azea within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, encbsed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. Such determination shall be final following the issuance of a Certificate of Occupancy for the dwelling unit. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Speciai Tax" means any of the special taxes authorized to be levied by CFD No. 2006-9 pursuant to the Act. . ~ "Special Tax for Facilities" means the special tas to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property, Taxable Property Owner Association Property, Ta~cable Public Property, and Undeveloped Property to fund the Special Ta~ Requirement for Facilities. "Special Tax Requirement for Facilities" means that amount required in any Fiscal Yeaz for CFD No. 2006-9 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. 2006-9 Bonds, including but not limited to, credit enhancement and rebate payments on the CFD No. 2006-9 Bonds due in the calendar year commencing in such Fiscal Yeaz; (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 based on the delinquency rate for the Special Tax for Facilities levy in the previous Fiscal Year; (vi) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such amount does not increase the Special Tax for Facilities levy on Undeveloped Property; less (vii) a credit for funds available to reduce City ojLake Elsinore ~ November 7, 2006 Community Facilities D'utricl No. 2006-9 (Trieste) pnge q the annual Special Tax for Facilities levy, as detertnined by the CFD Administrator pursuant to the Indenture. "State" means the State of Califomia. "Taxable Property" means all ofthe Assessor's Parcels within the boundaries of CFD No. 2006-9 which are not exempt from the Special Tas for Facilities pursuant to law or Section E below. "Taxable Property Owner Association Property" means all Assessor's Pazcels of Property Owner Association Property that aze not exempt pursuant to Section E below. "Taxable Public Proper[y" means all Assessor's Parcels of Public Proper[y that aze not exempt pursuant to Section E below. "Trustee" means the trustee or fiscal agert under the Indentwe. "Undeveloped Property" means, for each Fiscal Year, all Ta~cable Property not classified as Developed Property, Tvcable Property Owner Association Property, or Taacable Public Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Proper[y within CFD No. 2006-9 shall be classified as Developed Proper[y, Taxable Public Property, Taxable Property Owner Association Property, orUndeveloped Proper[y, and shall be subject to the Special Tax for Facilities in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D below. Residential Property shall be assigned to Land Use Classes 1 through 3 as listed in Tabie 1 below based on the Residential Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class 4. C. MAXIMi7M SPECIAL TAX FOR FACII.ITIES Prior to the issuance of CFD No. 2006-9 Bonds, the Assigned Special Taac for Facilities on Developed Property (set forth in Table 1), and the Backup Special Tax for Facilities attributable to a Final Subdivision, may be reduced in accordance with, and subject to the conditions set forth in this pazagraph. 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, the "Goals and Policies") calculated pursuantto 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 Ta~c for Facilities attributable to a Final Subdivision, may be reduced to the amount necessaty 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 City ojLake Elsinore November 7, 2006 Community Faci[ilies Disdict No. 2006-9 (TriesteJ p¢qe S amended notice of Special Tax lien which the City shall cause to be recorded by executing a certificate in substantially the form at[ached hereto as Exhibit "A". Develoned Pronertv (a) Maximum Special Tas for Facilities The Maximum Special Tax for Facilities for each Assessor's Pazcel classified as Developed Property shall be the geater of (i) the amount derived by application of the Assigned Special Tax for Facilities or (ii) the amount derived by application of the Backup Special Ta~c for Facilities. (b) Assigned Special Tax for Facilities The Assigned Special Ta~c for Facilities for each Land Use Class is shown below in Table 1. TABLE 1 Assigned Special Tax for Facilities for Developed Property Community Facilities District No. 2006-9 The Backup Special Tax for Facilities attributable to a Final Subdivision will equal $31,966 multiplied by the Acreage ofall Taacable Property, exclusive ofany Ta~cable Property Owner Association Property and Tvcable Public Property, therein. The Backup Special Tas for Facilities for each Assessor's Parcel ofResidential Property shall be computed by dividing the Backup Special Tax for Facilities attributable to the applicable Final Subdivision by the number of Assessor's Parcels and/or residential units for which building permiu for residential construction have or may be issued (i.e., the number or residential lots and/or units). The Backup Special Tas for Facilities for each Assessor's Pazcel of Non-Residential Proper[y therein shall equal $31,966 multiplied by the Acreage of such Assessor's Parcel. City ojLpke EGrinore November 7, 2006 Communiry Facililies District No. 200b9 (Trieste) puge 6 (c) Backup Special Tax for Facilities If a Final Subdivision includes Assessor's Parcels of Tasable Properiy for which building permits for both residential and non-residential construction may be issued, exclusive of Taxable Proper[y Owner Association Property and Tvcable Public Property, then the Backup Special Tax for Facilities for each Assessor's Pazcel of Residential Property shall be computed exclusive of the Acreage and Assessor's Parcels of property for which building permits for non-residential construction may be issued. Notwithstanding the foregoing, if all or any portion of the Final Subdivision(s) described in the preceding paragraphs is subsequently changed or modified by recordation of a lot line adjustment or similaz instrument, and only if the CFD Adminisfrator determines that such change or modification results in a decrease in the number ofAssessor's Parcels of Taxable Property for which building permits for residential construction have or may be issued within such Final Subdivision, then the Backup Special Tax for Facilities for each Assessor's Parcel of Developed Property that is part of the lot line adjustment or similar instrument for such Final Subdivision shall be a rate per Acre as calculated below. The Backup Special Tas for Facilities previously determined for an Assessor's Parcel ofDeveloped Property that is not a part of the lot line adjustment or similar instrument for such Final Subdivision shall not be recalculated. 1. Determine the total Backup Special TaY for Facilities anticipated to apply to the changed or modified portion of the Final Subdivision area prior to the change or modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Taacable Property which is ultimately expected to exist in such changed or modified portion of the Final Subdivision area, as reasonably determined by the CFD Administrator. 3. The result of paragraph 2 above shall be the Backup Special Tax for Facilities per Acre which shall be applicable to Assessor's Pucels of Developed Proper[y in such changed or modified portion ofthe Final Subdivision area for all remaining Fiscal Years in which the Special Tas for Facilities may be levied. (d) Multiple Land Use Classes In some instances an Assessor's Pazcel ofDeveloped Property may contain more than one Land Use Class. The Mvcimum Special Tvc for Facilities levied on an Assessor's Pazcel shall be the sum ofthe Maacimum Special Tax for Facilities for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's allocation to each Type of property shall be final. City of Lnke E[sittore Novembe~ 7, 2006 Cammunity FacJities Drstrict Na. 200b9 (Trieste) ppg¢ 7 2. Taxable Property Owner Association Prouertv Tvcable Public Prooertv and Undeveloued Prouertv The Masimum Special Tas for Facilities for Taxable Property Owner Association Property, Taacable Public Property, and Undeveloped Property shall be $31,966 per Acre. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR FACILITIES Commencing with Fiscal Year 2007-2008 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement for Facilities and levy the Special Tax for Facilities until the amount of Special Tas for Facilities levy equals the Special Tas Requirement for Facilities. The Special Tas for Facilities shall be levied each Fiscal Year as follows: First: The Special Tax for Facilities shall be levied on each Assessor's Parcel ofDeveloped Property in an amount equal to 100% ofthe applicable Assigned Special Tax for Facilities; Second: If additional monies aze needed to satisfy the Special Taac Requirement for Facilities after the first step has been completed, the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Facilities for Undeveloped Property; Third: If additional monies aze needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the levy of the Special Tax for Facilities on each Assessor's Parcel ofDeveloped Property whose Ma~cimum Special Tax for Facilities is determined through the application of the Backup Special Tax for Facilities shall be increased in equal percentages from the Assigned Special Tax for Facilities up to the Maacimum Special Tax for Facilities for each such Assessor's Parcel; Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been wmpleted, then the Special Tax for Facilities shall be levied Proportionately on each Assessor's Parcel of Tasable Property Owner Association Property and Tasable Public Property at up to 100% of the Maximum Special Tas for Facilities for Tasable Property Owner Association Property or Tasable Public Property. Notwithstanding the above, the Council may, in any Fiscal Year, levy Proportionately less than 100% of the Assigned Special Taac for Facilities in step one (above), when (i) the Council is no longer required to levy the Special Tax for Facilities pursuant to steps two through four above in order to meet the Special Ta~c Requirement for Facilities; (ii) all authorized CFD No. 2006-9 Bonds have already been issued or the Council has covenanted that it will not issue any additional CFD No. 2006-9 Bonds (except refunding bonds) to be supported by the Special Tas for Facilities; and (iii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developer for the construction and/or acquisition of such facilities have been paid as permitted by law. City ojLake Elsinore November 7, 2006 Community Faci[itles District No. 2006-9 (Trieste) pag¢ g Further notwithstanding the above, under no circumstances will the Special Tax for Facilities levied against any Assessor's Parcel of Residential Property for which a CeRificate of Ocwpancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2006-9. E. EXEMPTIONS No Special Tas for Facilities shall be levied on up to 23 Acres of Property Owner Association Property and/or Public Property in CFD No. 2006-9. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked. Property Owner Association Property or Public Propertythat is not exempt from Special Tas for Facilities under this section shall be subject to the levy of the Special Tas for Facilities and shal( be tased Proportionately as part of the four[h step in Section D above, at up to 100% of the Maximum Special Tax for Facilities for Tasable Property Owner Association Property or Tasable Public Property. F. MANNER OF COLLECTION The Special Tax for Facilities shall be collected in the same manner and at the same time as ordinaty ad valorem property taxes; provided, however, that CFD No. 2006-9 may directly bill the Special Tax for Facilities, may collect the Special Tas 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 foredose on delinquent Assessor's Parcels as permitted by the Act. G. PREPAYMENT OF SPECIAL TAX FOR FACILITIES The following additional definitions apply to this Section G: "Buildout" means, for CFD No. 2006-9, that all expected building permits for dwelling units to be constructed in CFD No. 2006-6 have been issued, as reasonably determined by the CFD Administrator. "CFD Public Facilities" means either $3,564,033 in 2006 dollars, which shall increase by the Construction Inflation Index on July 1, 2007, and on each 7uly 1 thereafter, or such lower number as(i) shall be determined by the CFD Administrator as sufficient to provide funding for all of the Authorized Facilities, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more CFD No. 2006-9 Bonds (except refunding bonds) to be supported by the Special Tax for Facilities levy under this Rate and Method of Apportionment as described in Section D above. Ciry ojLake Elsinore November 7, 2006 Community Faci[ities District No. 2006-9 (Trieste) pqg¢ 9 "Construction Inflation Index" means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Adminisffatorthat is reasonably comparable to the EngineeringNews Record Building Cost Index for the CiTy of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) costs of Authorized Facilities previously paid from the Lnprovement Fund, (ii) moneys curzertly on deposit in the Improvement Fund available to pay costs of Authorized Facilities, and (iii) moneys curtently on deposit in an escrow fund that are expected to be available to finance the cost of Authorized Facilities. "Improvement Fund" means an account specifically identified in the Indenture to hold funds which ate currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that aze deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full Only an Assessor's Parcel of Developed Property, or Undeveloped Property for which a building permit has been issued, may be prepaid. The obligation ofthe Assessor's Pazcel to pay the Special Tax for Facilities may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particulaz Assessor's Parcel only ifthere aze no delinquent Special Tases with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special TaY for FaciliUes obligation shall provide the CFD Administrator with written notice of intent to prepay. W ithin 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD AdminisVator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice oF redemption of CFD No. 2006-9 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. The Special Tas for Facilities Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit City ojLake EGstnore November 7, 2006 Cammunity FacilitlesDisbictNo. 2006A(Triute) pa$e ]p less Capitalized Interest Credit Total: equals Special Tax for Facilities Prepayment Amount As of the proposed date of prepayment, the Special Tas for Facilities Prepayment Amount shall be calculated as follows: Paraeraoh No.: Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels ofDeveloped Property, compute the Assigned Special Taac for Facilities and Backup Special Tax for Facilities. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued, compute the Assigned Special Ta~c for Facilities and Backup Special Tas for Facilities for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has atready been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax for Facilities computed pursuantto paragraph 2 by the total estimated Assigned Special Tax for Facilities for the entire CFD No. 2006-9 based on the Developed Proper[y Special Taac for Facilities which could be levied in the current Fiscal Year on all expected development through Buildout of CFD No. 2006-9, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Ta~c for Facilities computed pursuant to paragraph 2 by the total estimated Backup Special Tar for Facilities at Buildout for the entire CFD No. 2006-9, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the luger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption AmounP'). 5. Multiply the Bond Redemption Amount computed pursuant to pazagraph 4 by the applicable redemption premium (e.g., the redemption price-100%), if any, on the Previously Issued Bonds to be redeemed (the "Redemption Premium"). 6. Compute the current Future Facilities Costs. 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to pazagraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities AmounY'). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal paym~t date following the current Fiscal Yeaz until the earliest redemption date for the Previously Issued Bonds. City ojLake Elsinore November 7, 2006 Community Facilitiu District No. 2006-9 (Trreste) pag¢ p] 9. Determine the Special Tax for Facilities levied on the Assessor's Parcel in the curzent Fiscal Year which has not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tas for Facilities Prepayment Amount less the Future Facilities Amount and the Adminishative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subhact the amount computed pursuant to paragraph 10 (the "Defeasance AmounY'). 12. The administrative fees and expenses of CFD No. 2006-9 ue as calculated by the CFD Administrator and include the wsts of computation ofthe prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2006-9 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. The reserve fund credit (the "Reserve Fund CrediP') shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subhacting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be ganted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100% of the reserve requirement (as defined in the Indenhve). 14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Yeaz, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to pazagraph 3(a) or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment(the "Capitalizedlnterest CrediP'). 15. The Special Tax for Facilities prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Special Tax for Facilities Prepayment AmounY'). From the Special Taac for Facilities Prepayment Amount, the amounts computed pursuant to pazagraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture and be used to retire CFD No. 2006-9 Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the City of Lnke Elsinore November 7, 2006 Communiry Facilities District No. 2006-9 (Trieste) Page 72 Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2006-9. The Special Tax for Facilities Prepayment Amount may be insufficient to redeem a full $5,000 increment of CFD No. 2006-9 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No. 2006-9 Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax for Facilities levy as determined under paragraph 9(above), the CFD Administrator shall remove the current Fiscal Year's Special Tax for Facilities levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Pazcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Special Tax for Facilities and the release of the Special Taac for Facilities lien on such Assessor's ~ Parcel, and the obligation ofsuch Assessor's Parcel to paythe Special Tas forFacilities shall cease. Notwithstanding the foregoing no Special Taac for Facilities prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Ma~cimum Special Tax for Facilities that may be levied on Taxable Proper[y within CFD No. 2006-9 (after excluding 23 Acres ofProperty OwnerAssociation Property and/or Public Property in CFD No. 2006- 9 as set forth in Section E) both prior to and after the proposed prepayment is at least equal to the sum of (i) the Administrative Expenses, as defined in Section A above, and (ii) 1.10 times maximum annual debt service, in each remaining Fiscal Year on the Outstanding Bonds. 2. Prepayment in Part The Special Tax for Facilities on an Assessor's Pazcel of Developed Property or an Assessor's Parcel ofUndeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section G.1; except that a partial prepayment shall be calculated according to the following formula: PP = I(PE - A) x F] + A These terms have the following meaning PP = the partial prepayment. PE = the Special Tax for Facilities Prepayment Amount calculated according to Section G.1. F= the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Taac for Facilities. A= the Administrative Fees and Expenses calculated according to Section G.1. City ojLake Elsinore November 7, 2006 Community Facilities District No. 2006-9 (Trieste) Pnge 13 The owner of any Assessor's Pazcel who desires such prepayment shall notify the CFD Adminislrator of such owner's intent to partial ly prepay the Special Taac for Facilities and the percentage by which the Special Tax for Facilities shall be prepaid. The CFD AdminisVator 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 ofthe request and may charge a reasonable fee for providingthis service. With respectto any Assessor's Pazcel that is partially prepaid, the Council shall (i) distribute the funds remitted to it according to Section G1, and (ii) indicate in the records of CFD No. 2006-9 that there has been a partial prepayment of the Special Tax for Facilities and that a portion of the Special Tax for Facilities with respect to such Assessor's Pazcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Ta~c for Facilities, shal I continue to be levied on such Assessor's Parcel pursuant to Section D above. H. TERM OF SPECIAL TAX FOR FACILITIES The Special Ta~c for Facilities shall be levied for a period not to exceed forty yeazs commencing with Fiscal Yeaz 2007-2008, provided however that the Special Tax for Facilities will cease to be levied in an eadier Fiscal Year if the CFD Administrator has detexmined (i) that all required interest and principal payments on the CFD No. 2006-9 Bonds have been paid; (ii) all Authorized Facilities have been constructed and/or acquired and all reimbursements to the developer for the construction and/or acquisition of such facilities have been paid as permitted by law; and (iii) all other obligations ofCFDNo. 2006- 9 have been satisfied. I. SPECIAL TAX FOR SERVICES The following additional definitions apply to this Section L• "Developed Multifamily Unit" means a residential dwelling unit within a building in which each of the individual dwel ling units has or shall have at least one common wall with another dwelling unit and a building pertnit has been issued by the City for such dwelling unit on or prior to May 1 preceding the Fiscal Year in which the Special Tas for Services is being levied. "Developed Single Family Unit" means a residential dwelling unit other than a Developed Multifamily Unit on an Assessor's Parcel for which a building permit has been issued by the City on or prior to May 1 preceding the Fiscal Yeaz in which the Special Tas for Services is being levied. "Maximum Special Tax for Services" means the maximum Special Tax for Services that can be levied by CFD No. 2006-9 in any Fiscal Yeaz on any Assessor's Parcel. "Operating Fund" means a fund that shall be maintained for CFD No. 2006-9 for any Fiscal Year to pay for the ac[ual costs of maintenance related to the Service Area, and the applicable Administrative Expenses. City ofLake EGrinore November 7, 2006 Community Facilities Distric! No. 2006-9 (Trieste) Pape 14 "Operating Fund Balance" means the amount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Service Area" means parks, open space, and storm drains. "Special Tax for Services" means any of the special taaces authorized to be levied within CFD No. 2006-9 pursuant to the Act to fund the Special Tax Requirement for Services. "Special Tax Requirement for Services" means the amount determined in any Fiscal Year for CFD No. 2006-9 equal to (i) the budgeted costs directly related to the Service Area, including maintenance, repair and replacement of certain components of the Service Area which have been accepted and maintained or aze reasonably expected to be accepted and maintained during the curcent Fiscal Yeaz, (ii) pay a proportionate shaze of Administrative Expenses, and (iii) anticipated Special Tax for Services delinquencies based on the delinquency rate for the Special Tax for Services levy in CFD No. 2006-9 for the previous Fiscal Year, less (iv) the Operating Fund Balance, as determined bythe CFD AdminisVator. 1. Rate and Method of Apportionment of the Special Tax for Services Commencing with Fiscal Year 2007-2008 and for each subsequent Fiscal Year, the Council shall levy the Special Tax for Services on (i) all Assessor's Parcels containing a Developed Single Family Unit or Developed Multifamily Unit and (ii) all Assessor's Parcels of Non- Residential Property, up to the applicable Maximum Special Tax for Services to fund the Special Tas Requirement for Services. The Maacimum Special Ta~c for Services for Fiscal Year 2007-2008 shall be $251.78 per Developed Single Family Unit, $125.89 per Developed Multifamily Unit, and $567.02 per Acre for each Assessor's Parcel ofNon-Residential Property. On each July 1, commencing July 1, 2008, the Maximum Special Tax for Services shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Yeaz. 2. Duration of the Special Tax for Services The Special Tax for Services shall be levied in perpetuity to fund the Special Tax Requirement for Services, unless no longer required as determined at the sole discretion of the Council. 3. Collecrion of the Special Tax for Services 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. 2006-9 may collect the Special Tax for Services at a different time or in a different manner if necessary to meet its funding requirements. City oJLake EGsinore November 7, 2006 Community Facili~ies District No. 20069 (Tries[e) Page IS J. APPEALSAND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tvc levied on their Assessor's Parcel is in error may submit a written appea( to CFD No. 2006-9. The CFD Administrator shall review the appeal and if the CFD Administrator concurs, the amount of the Special Tax levied shall be appropriately modified. The Council may interpretthis Rate and Method of Apportionment forpurposes ofclarifying any ambiguity and make determinations relative to the annual administration ofthe Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. K:ICL/GNf5215hapoJ/GrouplTriesleVLLIA1Tries(e CFD RMA DsoJt 2.doc Revised: f 5[/[a Deleted: la/6/06 D21EtCd:77H0/O6 ~a City ojLake Elsinore Novem6er 7, 2006 Communiry Faci[ities Distric! No. 2006-9 (Triesfe) Page 16 EXFIIBIT A CERTIFICATE TO AMEND SPECIAL TAX FOR FACILITIES CITY OF LAKE ELSINORE AND CFD No. 2006-9 CERTIFICATE 1. Pursuant to Section C of the Rate and Method of Apportionment, the City of Lake Elsinore ("City") and Community Facilities District No. 2006-9 of the City of Lake Elsinore ("CFD No. 2006-9") hereby agree to a reduction in the Assigned Special Tax for Facilities for Developed Property, and the Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No. 2006-9: (a) The information in Table 1 relating to the Assigned Special Taac for Facilities for Developed Property within CFD No. 2006-9 shall be modified as follows: ~,~~~u~--~.~ L~aind='~s"~ ~~..q. t L 3~ir^~~~~r~ L~£~a~~~~~~ "~ . ~ ~ ~ 3 ~ {~ „ ~S~ ~ ~, r. ~ $~ ~ _~~~~~~~ ~ , ,-'~'`~-e3~'~ ~~ 5 ~~ eaza~" ~~~"s- ,~~K~I7~~C~~~. ~ ~~~itl~ei~ ~ ~n~~~re~~ s,~~~ tzesz~: 1 Residential Property More than 2,100 sq. ft. $ per unit Z Residential Proper[y 1,800 - 2,100 sq. ft. $ per unit 3 Residential Proper[y Less than 1,800 sq. ft. $_ per unit 4 Non-Residential Property NA $_ per Acre (b) The Backup Special Tax for Facilities attributable to a Final Subdivision within CFD No. 2006-9, as stated in Section C.1.(c), shall be reduced from $31,966 per Acre to $_ per Acre. 2. The Special Tax for Facilities may only be modified prior to the first issuance of CFD No. 2006- 9 Bonds. 3. Upon execution of the Certificate by the City and CFD No. 2006-9, the Ciry shall cause an amended notice of Special Taac lien for CFD No. 2006-9 to be recorded reflecting the modifications set forth herein. By execution hereof, the undersigned acknowledges, on behalf of the CiTy and CFD No. 2006-9, receipt of this Certificate and modification ofthe Rate and Method of Apportionment as set forth in this Certificate. CITY OF LAKE ELSINORE By: CFD Administrator COMMLJNITY FACI[,TTIES DISTRICT NO. 2006-9 OF Tf~ CITY OF LAKE ELSINORE By: