HomeMy WebLinkAboutCC Reso No 2004-06RESOLUTION NO. 2004-6
RESOLUTION OF FORMATION OF THE CITY COUNCIL OF THE
CITY OF LAKE ELSINORE DETERMINING THE VALIDITY OF
PRIOR PROCEEDINGS AND ESTABLISHING CITY OF LAKE
ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2003-2
(CANYON HILLS)
WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "City")
has heretofore adopted Resolution No. 2003-50 ("Resolution of Intention") stating its intention
to form City of Lake Elsinore Community Facilities District No. '1003-2 (Canyon Hills) (the
"CFD") pursuant to the Melio-Roos Community Facilities Act of 1982, as amended (the "AcY'),
and desi~iating portions of the CFD as Improvement Area A, Improvement Area B,
Improvement Area C, and Improvement Area D; and
WHEREAS, a copy of the Resolution of Intention is on file with the City Clerk and
incorporated herein by reference; and
WHEREAS, pursuant to the Act and in accordance with applicable laws, this Council
held a public hearing on the fonnation of the CFD and the incurring of bonded indebtedness with
respect to the CFD; and
WHEREAS, at said hearing all persons not exempt from the Public Safety Special Tax
and flie Special Tax desiring to be heard on all matters pertaining to the formation of tUe CFD
were heard and a full and fair hearing was held; and
WHEREAS, at said hearing evidence was presented to the Board on said matters before
it, and this Board at the conclusion of said hearing is fully advised in the premises;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Pursuant to Section 53325.1(b) of the Government Code, the Board finds
and determines that the proceedings prior hereto were valid and in conformity with the
requirements of the Act.
Section 2. A community facilities district to be designated "City of Lake Elsinore
Community Facilities District No. 2003-2 (Canyon Hills)" is hereby established pursuant to the
Act.
Section 3. The description and map of the boundaries of the CFD on file in tl~e
Clerk's office and as described in the Resolution of Intention and incorporated herein by
reference, shall be the boundaries of the CFD. The map of the proposed boundaries of the CFD
has been recorded in the Office of the County Recorder of Riverside County, Califomia
(Book 55 of Maps of Assessment and Community Facilities District at page 32 and as Instrument
No. 2003-895870).
4536989I.1
Section 4. 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 taac (the
"Public Safety Special Tax") sufficient to finance a portion of the cost of providing fire and
paramedic services (the "Services") that are in addition to those provided in the territory within
the CFD priar 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 Public Safety Special Tax and all other costs of the levy of the Public Safety
Special Tax, including any foreclosure proceedings, legal, fiscal, and financiai consultant fees,
election costs, and ail other administrative costs of the taac levy. The Public Safety Special Tax
will be secured by recordation of a continuing lien against all non-exempt undeveloped real
property in the CFD. The schedule of the rate and method of apportionment and manner of
collection of the Public Safety Special Tax is described in detail in Exhibit A attached hereto and
by this reference incorporated herein. The Services are more fully described in the report
presented to this Board at the public hearing (the "Report").
The Public Safety Special Tax is apportioned to each parcel on the foregoing basis
pursuant to Section 533253 of the Act.
Section 5. The facilities proposed to be financed by each improvement area of the
CFD are public infrastructure facilities and other governmental 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 streets,
streetscape, park and recreation facilities, storm drain, fire station, other city facilities and water
and sewer facilities and fees of the Elsinore Valley Municipal Water District and related costs
including designs, inspections, professional fees, annexation fees, connection fees and
acquisition costs (the "Facilities"). Such Facilities need not be physically located within the
CFD.
Section 6. 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 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 all 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 ta~c levy and bond issue. The Special Tax will be secured by recordation of a
continuing lien against all non-exempt real property in the CFD. In the first year in which such a
Special Tax 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 Exhibit B attached hereto and by this reference incorporated herein. The
45369891.1
Special Ta~c is based upon the cost of financing the Facilities in the CFD, the demand that each
pazcel will place on the Facilities and the benefit (direct and/or indirect) received by each parcel
from the Facilities.
The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section
533253 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 Taac, the Council shall, on
behaif of the CFD, increase the levy to the extent necessary upon the remaining property within
the CFD which is not delinquent or exempt in order to yield the required payments, subject to the
maximum taac. 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 within the CFD by more than 10 percent. Furthermore,
the maximum special tax 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. The Facilities are more
fully described in the Report.
Section 7. Upon recordation of a Notice of 3pecial Tax Lien pursuant to Section
3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Public
Safety Special Tax and the Special Tax shall attach to all nonexempt real property in the CFD,
and this lien shall continue in force and effect until the Public Safety Special Tax and the Speciai
Tax obligation is prepaid or otherwise pennanently satisfied and the lien canceled in accordance
with law or until collection of the Public Safety Special Taac and the Special TaY by the CFD
ceases.
Section 8. Neither the proposed Public Safety Special Tax nor the Special Tax to be
levied in the CFD has been precluded by protests by owners of one-half or more of the land in
the territory included in the CFD pursuant to Government Code Section 53324.
Section 9. The Report is ordered to be kept on file with the minutes of these
proceedings and open for public inspection.
Section 10. Pursuant to and in compliance with the provisions of Government Code
Section 50075.1, the Board hereby establishes the following accountability measures pertaining
to the levy by the CFD of the Public Safety Special Tax and the Special Tax:
A. Such Public Safety Special Tax and the Special Tax shall be levied for the
specific purposes set forth herein.
B. The proceeds of the levy of such Public Safety Special Tax and the Special Tax
shall be applied only to the specific purposes set forth herein.
C. The CFD shall establish an account or accounts into which the proceeds of such
Public Safety Special Tax and the Special Tax shall be deposited.
D. The City Manager, or his or here designee, acting for and on behalF of the CFD,
shall annually file a report with the Council as required pursuant to Government Code Section
500753.
45369891.1
Section 11. The City Manager, 130 S. Main Street, Lake Elsinore, California 92530,
(909) 674-3124, or his designee, is designated to be responsible for preparing or causing to be
prepared annually a current roll of Public Safety Special Tax and the Special Ta~c levy
obligations by assessor's pazcel number and far estimating fuhue Public Safety Special Taac and
the Special Tax levies pursuant to Section 53340.1 of the Government Code.
Section 12. The voting procedure with respect to the imposition of the Public Safety
Special Tax and the Special Tax, incurring bonded indebtedness and establishing an
appropriations limit of the CFD shail be by hand delivered ballot election.
Section 13. The City Clerk is directed to certify and attest to this Resolution and to
take any and all necessary acts to call, hold, canvass and certify an election or elections on the
incurring bonded indebtedness, the levy of the Special Tax, and the establishment of the
appropriation limit.
PASSED, APPROVED AND ADOPTED this 13th day of January , 2004
CITY OF LAKE ELSINORE
~
By:
Title: M~ r
AT EST:
~~ti ~~~
City Clerk of the City of Lake Elsinore
APP OVED AS TO FORM:
i ~
~~~
ara Leibol , City Attorney
45369891.1
STATE OF CALIFORNIA )
) ss.
COLTNTY OF RIVERSIDE )
I, Vicki Kasad, City Clerk of the City of Lake Elsinore, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of said City at a regular meeting
thereof held on the 13th day of January , 2004, and that it was so adopted by the
following vote:
AYES: COUNCILMEMBERS: HICKMAN, KELLEY, MAGEE, SCHIFFNER, BUCKLEY
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE ~~ /J
By: ~/
City Clerk of the City of Lake Elsinore
45369891.1
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT OF PUBLIC SAFETY SPECIAL TAX
4536989L1
For this Agenda Packet, see Exhibit B of the CFD Report prepared by Harris & Associates
for each Rate and Method of Apportionment
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
(IMPROVEMENT AREA A)
(IMPROVEMENT AREA B)
(IMPROVEMENT AREA C)
(IMPROVEMENT AREA D)
45369891.1
For this Agenda Packet, see Exhibit B of the CFD Report prepared by Harris & Associates
for each Rate and Method of Apportionment
City of Lake Elsinore EXHIBIT "A" October 9, 2003
CPD No. 2003-2 ((Canyon Hills) Page A-1
Rate and Method of Apportionment of Speciai Taxes
RATE AND METHOD OF APPORTIONMENT FOR
COMMUIVITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
(FIRE AND PARAMEDIC SERVICES)
An Annual Special Tax shall be levied on all Undeveloped Property of Community Facilities District
No. 2003-2 (Canyon Hills) of the City of Lake Elsinore ("CFD No. 2003-2") in accordance with this
rate and method of apportionment of special tax as herein set forth. All of the real property within
CFD No. 2003-2, unless exempt by law or by the provisions hereof, shall be taaced far the purposes,
to the extent and in the manner herein provided.
SECTION A
DEFINTIONS
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the
applicable recorded final map or parcel map, or if the land area is not shown on the applicable
recorded final map or parcel map, the land area shall be calculated by the City Engineer.
"AcY' means the Mello-Roos Community Facilities Act of 1982, as amended, Sections 53311 and
following of the California Government Code.
"Additional Public Safety Special Taxes" means all "Maximum Special Taxes" that would have been
collected from developments meeting the criteria for annexation into the Public Safety CFD, as such
criteria is described in the Agreement, from "Developed Mulri-Family Propert~' and "Developed
Residenrial Property" that are not included in the Public Safety CFD, as such quoted terms are
defined in the Public Safety CFD RMA.
"AgreemenY' means the Public Facilities and Services Financing Agreement between Pardee Homes
and the City, dated June 24, 2003.
"Annual Special Tax" means the speciai tax actually levied by CFD No. 2003-2 pursuant to the Act.
"Assessor's Parcel" means a lot or parcel shown on the County Assessor's Parcel Map with an
assigned assessor parcel number.
"Assessor's Parcel Map" means an official map of the County Assessor designa6ng parcels by
assessor parcel number.
"City" means the City of Lake Elsinore, California.
"City Council" means the City Council of the City of Lake Elsinore as the legislative body for CFD
No. 2003-2 under the Act.
"County" means the County of Riverside, California
Ciry of Lake E(sinore
CFD No. 2003-2 (Canyon Hil[s) - Fire and Paramedic Services
City of Lake Elsinore EXHIBIT "A" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page A-2
Rate and Method of Apportionment of Speciai Taxes
"Exempt Property" means any Assessor's Parcel in CFD No. 2003-2 that: (i) is designated as being
exempt from the Annual Special Tax as set forth in Section E herein or (ii) that has been issued a
building permit for residential construction by the City on or prior to March 1 preceding the Fiscal
Year in which the Annual Special Tax is being levied.
"Fire Starion" means the eastside fire station located on or near Railroad Canyon Road providing
service for the Canyon Hills Development area and other areas of the City as more particularly
described in the Agreement.
"Fire Station Cooperation Agreement° means the agreement(s) entered into between the City and
County Fire for operating and staffing fire stations within the City, including the Fire Starion, and
funding the costs of such operation and staffing with ad valorem real property taxes, ad valorem real
property tax increment, parcel charges or assessments.
"Fire Starion Operation" means the staffing of the Fire Station as a three-person facility and annual
operation and maintenance of the Fire Station.
"Fiscal Year" means the period starting July 1 and ending the following June 30
"Holding Fund" means a discrete, interest earning special fund of the City established to hold funds
and administered pursuant to the terms of the Agreement.
"Maximum Annual Special Tax" means the Maximum Annual Special Tax determined in accordance
with Section C that can be levied by CFD No. 2003-2 in any Fiscal Year on an Assessor's Parcel.
"Proportionate Amount of Structural Fire Taxes" means the total amount of Structural Fire Taaces
generated within the City each Fiscal Year divided by the number of fire starions within the City that
are the subject of a Fire Station Cooperation Agreement.
"Public Safety CFD" means the "City of Lake Elsinore Community Faciliries District No. 2003-1
(Law Enforcement, Fire and Paramedic Services)".
"Public Safety CFD RMA" means the rate and method of apportionment of special tax of the Public
Safety CFD.
"Public Safety CFD Share" equals 83.33% of all "Maximum Special Taxes" levied and collected
from "Developed Multi-Family Properry" and "Developed Residential Propert}~' as defined in the
Public Safety CFD"RMA.
"Public Safety Services" means police, fire and other related public safety services provided directly
by the City or by contract with another public agency including, without limitation, the Fire Station
Operation.
"Public Safety Special Taxes" means the special taxes authorized to be levied by the Public Safety
CFD or any other CFD established by the City to fund Public Safety Services within the area
depicted in E~ibit "C" to the Agreement.
City oflake Elsinore
CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services
City of Lake Elsinore EXHIBIT "A" October 9, 2003
CFD No. 2003•2 (~Canyon Hills) Page A-3
Rate and Method of Apportionment of Special Taxes
"Special Taac RequiremenY' means the amount required in any Fiscal Year to fund actual Fire Starion
Operation costs equal to the lesser of:
1. $939,000 (escalating by 2% per Fiscal Year commencing in Fiscal Year 2004-OS); or
2. The estimated annual Fire Station Operation costs in the Fiscal Year in which CFD
No. 2003-2 special taxes are being levied, less the total of:
a. The Proportionate Amount of Structural Fire Taxes estimated to be generated
in the Fiscal Year in which CFD No. 2003-2 special taxes are being levied. If
the City is unable to enter into a Fire Station Cooperarion Agreement to
provide for the Fire Station Operation or enters into, but subsequently
terminates or modifies such Fire Station Cooperation Agreement so as to
reduce or eliminate the amount of Structural Fire Taxes applied to fund, or as
a credit against, the Fire Station Operation costs, then the City shall calculate
the Proportionate Amount of Structural Fire Taxes pursuant to the Agreement
as if the Fire Station was subject to a Fire Station Cooperation Agreement that
has not been modified or terminated; and
b. The Public Safety CFD Share plus 8333% of the Additional Public Safety
Special Taxes that could have been generated in the Fiscal Year in which
CFD No. 2003-2 special taxes are being levied; and
c. Actual amounts available from the prior Fiscal Year's Public Safety CFD
Share after funding the Fire Station Operation costs and all costs of
administering the levy as set forth in the resolution of intention to establish
CFD No. 2003-2 of the prior Fiscal Year, and Undeveloped Proper[y Annual
Special Taxes after funding the Fire Station Operation costs and all costs of
administering the levy as set forth in the resolution of intention to establish
CFD No. 2003-2 of the prior Fiscal Year; and
d. Actual amounts available in the Holding Fund, excluding the funds
contributed from CFD No. 90-2.
"Sfixctural Fire Taxes" means the ad valorem real properry taxes, ad valorem real property tax
increment, parcel charges or assessments collected within the City and applied to fund, or as a credit
against fire station operation costs, including the Fire Station Operation costs, pursuant to the Fire
Station Cooperation Agreement(s).
"Undeveloped Propert}~' means all Assessor's Parcels in CFD No. 2003-2 that are not Exempt
Properiy.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within the CFD No.
2003-2 shall be classified as Undeveloped Properry or Exempt Property.
City af Lake Elsinore
CFD No. 2003-2 (Canyon Hil[s) - Fire and Paramedic Services
City of Lake Elsinore EXHIBIT "A" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page A-4
Rate and Method of AppoRionment of Special Taxes
SECTION C
MAXIMLJM ANNUAL SPECIAL TAX
The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property for the
Fiscal Year 2003-04 shall be $2,741 per Acre. Commencing in the 2003-04Fiscal Year, and each
Fiscal Year thereafter, the Maximum Annual Special Tax for Undeveloped Property shall increase by
2% per Fiscal Year.
SECTION D
METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX
Commencing in the 2003-04 Fiscal Year, and each Fiscal Year thereafter, the City Council may levy
the Annual Special Tax on all Undeveloped Proper[y at up to the Mvcimum Annual Special Taac rate
in order to fund the Special Tax Requirement. The Annual Special Tax levied on an Assessor's
Parcel of Undeveloped Property in each Fiscal Year shall equal the lesser of (i) the Maximum
Annual Special Tax or (ii) the Special Ta7c Requirement calculated for the Fiscal Year divided by the
total Acreage of Undeveloped Property and mulriplied by the Acreage of the Assessor's Parcel.
SECTION E
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably
offered for dedication, encumbered by or restricted in use by the State of California, Federal or other
local governments, including school districts, (ii) Assessor's Parcels which are owned by, irrevocably
offered for dedication, encumbered by or restricted in use by a homeowners' associarion, (iii)
Assessor's Parcels with public or utility easements making impracfical their utilizarion for other than
the purposes set forth in the easement, and (iv) Assessor's Parcels which are privately owned and are
encumbered by or restricted solely for public uses.
SECTION F
MANNER OF COLLECTION
The Annual Special Tax levied in each Fiscal Year shall be collected in the same manner as ordinary ad
valorem property taxes are collected and shall be subject to the same penalries and the same procedure,
sale, and lien priority in case of delinquency as is provided for ad valorem taxes. The Annual Special
Tax when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and
Highways Code. This lien shall be conrinuing lien and shall secure each levy of Annual Special Tax.
The lien of the Annual Special Taac shall conrinue in force and effect until the Annual Special Tax
ceases to be levied in the manner provided by Section 53330.5 of the Government Code.
SECTION G
TERM OF ANNUAL SPECIAL TAX
The Annual Special Tax may be levied in perpetuity so long as the Fire Station Operafion continues.
City afLake E[sinore
CFD No. 2003-2 (Canyon Hills) - Fire and Paramedic Services
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyo~ Hills) Page B-1
Rate and Method of Apportionment of Speciai Taxes
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
(IMPROVEMENT AREA A)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area A of the Ciry of Lake Elsinore ("City") Community Faciliries
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on
and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the applicarion
of the Rate and Method of Apportionment described below. All of the real properiy within
Improvement Area A, unless exempted by law or by the provisions hereof, shall be taxed for the
purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the
applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall
be calculated by the Cily Engineer.
"AcY' means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1 of Division 2 of Title 5 of the Govemment Code of the State of California.
"Administrative Expenses" means any ordinary and necessary expense incurred by the Cily on behalf
of Improvement Area A related to the determination of the amount of the levy of Special Taxes, the
collection of Special Taxes including the expenses of collecting delinquencies, the administration of
Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to
the administration of Improvement Area A, and costs otherwise incurred in order to carry out the
authorized purposes of CFD No. 2003-2 relating to Improvement Area A.
"Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's
Parcel.
"Aparhnent Propert}~' means all Assessor's Parcels of Residential Property on which one or more
Apariment Units are constructed.
"Aparhnent UniY' means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a
Final Map that was recorded prior to the January 1S1 preceding the Fiscal Year in which the Special
Tax is being levied, and (ii) that have not been issued a building permit on or before March 1~`
preceding the Fiscal Year in which the Special Tax is being levied.
Ciry of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-2
Rate and Method of Apportionment of Special Taxes
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Annual Special Tax" means the Special Tax of that name described in Section D below.
"Backup Annual Special Tax" means the Special Tax of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligarions in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Taxes within Improvement Area A have been pledged.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under
the Act.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body
of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Propert}~' means all Assessor's Parcels of Taxable Property that (i) are included in a
Final Map that was recorded prior to the January 15S preceding the Fiscal Year in which the Special
Tax is being levied, and (ii) a building permit was issued on or before March ls` preceding the Fiscal
Year in which the Special Tas is being levied.
"Exempt Propert}~' means all Assessor's Parcels designated as being exempt from Special Taxes as
provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjushnent, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which building permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30
City ojLake Elsinare
CFD No. 2003-2 (Canyon Hills) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-3
Rate and Method of Apportionment of Special Taues
"Improvement Area A" means Improvement Area A of CFD No. 2003-2, as identified on the
boundary map for CFD No. 2003-2.
"MaJCimum Special Tax" means the malcimum Special Tax, determined in accardance with Section
C, that can be levied by CFD No. 2003-2 within Improvement Area A in any Fiscal Year on any
Assessor's Parcel.
"Non-Residential Properiy" means all Assessor's Parcels of Developed Property for which a building
permit was issued for any type of non-residenrial use.
"Partial Prepayment AmounY' means the amount required to prepay a portion of the Annual Special
Tax obligarion for an Assessor's Parcel, as described in Section H.
"Prepayment AmounP' means the amount required to prepay the Annual Special Tax obligation in
full for an Assessor's Parcel, as described in Secrion G.
"Proportionatel}~' means that the ratio of the Annual Special Tax levy to the applicable Assigned
Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property
subject to the apportionment of the Annual Special Tax under step four of Secfion F,
"Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned
Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special
Tax, is equal for all applicable Assessor's Parcels.
"Provisional Undeveloped Propert}~' means all Assessor's Parcels of Taxable Properiy that would
otherwise be classified as Exempt Property pursuant to the provisions of Section J, but cannot be
classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Section J for Zone 1 or Zone 2 as applicable.
"Residential Property" means all Assessor's Parcels of Developed Property for which a building
permit has been issued for purposes of construcring one or more residential dwelling units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than Aparhnent
Property.
"Single Family UniY' means a residential dwelling unit other than an Apartment Unit.
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area A by
CFD No. 2003-2 pursuant to the Act.
"Special Tax RequiremenY' means the amount required in any Fiscal Year to pay: (i) the debt service
or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such
Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an
escrow account, (iv) any amount required to establish or replenish any reserve funds established in
association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or
construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount
does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step
Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the
Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement.
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - ImprovementArea A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-4
Rate and Method of Apportionment of Special Taxes
"Taxable Property" means all Assessor's Parcels within Improvement Area A, which are not Exempt
Property.
"Undeveloped Propert}~' means all Assessor's Parcels of Taxable Property which are not Developed
Property, Approved Property or Provisional Undeveloped Properry. .
"Zone" means Zone 1 or Zone 2.
"Zone 1" means a specific geographic area as depicted in Eachibit A attached herein.
"Zone 2" means a specific geographic area as depicted in Exhibit A attached herein.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement
Area A shall be assigned to Zone 1 or Zone 2 and shall be classified as Taxable Properiy or Exempt
Property. In addition, each Assessor's Parcei of Taacable Property shall be further classified as
Developed Properry, Approved Property, Undeveloped Property or Provisional Undeveloped
Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residenrial
Property shall further be classified as a Single Family Property or Aparhnent Property, and each
Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based
on its Building Square Footage.
SECTION C
MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non-
Residential Property that is classified as Developed Properry in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Ta~c.
2. Approved Property, Undeveloped Properiy and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel classified as Approved Property,
Undeveloped Property, or Provisional Undeveloped Properiy in any Fiscal Yeu shall be the
Assigned Annual Special Tax.
City ofLake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-5
Rate and Method of Apportionment of Special Taues
SECTION D
ASSIGNED ANNiTAL SPECIAL TAX
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Single Family Property, Aparhnent Properry, or
Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned
Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Year
2003-04 shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1 AND ZONE 2
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $916 per Unit
Single Family Unit 1,175 -1,324 $1,001 per Unit
Single Family Unit 1,325 - 1,449 $1,169 per Unit
Single Family Unit 1,450 - 1,549 $1,177 per Unit
Single Family Unit 1,550 - 1,649 $1,184 per Unit
Single Family Unit 1,650 - 1,749 $1,192 per Unit
Single Family Unit 1,750 - 1,949 $1,276 per Unit
Single Family Unit 1,950 - 2,199 $1,361 per Unit
Single Family Unit 2,200 - 2,699 $1,617 per Unit
Single Family Unit 2,700 - 2,949 $1,702 per Unit
Single Family Unit 2,950 or greater $1,870 per Unit
Aparhnent Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
2.
Approved Property, Undeveloped Property and Provisional Undeveloped Proper[y
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Properry shall be subject to an Assigned Annual Special Tax. The
Assigned Annual Special Tas rate for an Assessor's Parcel classified as Approved Property,
City ofLake Elsinore
CFD Na. 2003-2 (Canyon HillsJ - Improvement Area A
City of Lake Eisinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-6
Rate and Method of Apportionment of Special Taxes
Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall
be $12,223 per Acre for Zone 1 and $22,587 per Acre for Zone 2.
Increase in the Assigned Annual Special Tax
On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed
Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property
shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Pazcels of
Developed Properry classified or reasonably expected to be classified as a Single Family Property
within such Final Map area shall be determined by (i) summing the product of (a) the Maximum
Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Properry of each
Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map
area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonabiy
expected to be constructed within such Final Map area. The resulting quotient shall be the Backup
Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area.
The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Properry
rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's
Parcel is located in two Zones, the Masimum Special Tax rate applied shall be the lower of the two
Maximum Special Tax rates.
The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non-
Residential Property or Apartment ProperLy shall be the Maximum Special Tax rate for Undeveloped
Property. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the
applicable Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an
Assessor's Parcel is located in two Zones, the Undeveloped Properiy Maximum Special Tas rate of
each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and
the Backup Annual Special Tax of the Assessors Parcel shall equal the total of the two calculated
amounts.
If a Final Map includes Assessor's Parcels of Developed Properiy which are classified or reasonably
expected to be classified as Single Family Property and Non-Residential Property or Aparirnent
Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or
reasonably expected to be classified as Single Family Property shall be computed exclusive ofthe
allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Property or Aparhnent Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or
to be classified as either Single Family Property, Aparhnent Property or Non-Residential Property
are subsequently changed of modified by recordarion of a lot line adjushnent or similar instrmnent,
then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual
Special Tax that would have been generated if such change did not take place.
City of Lake Elsinore
CFD No. 2003-2 (Canyan Hi[ls) - Improvement Area A
City of Lake Elsinore EXHIBIT "8" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-7
Rate and Method of Apportionment of Special Taxes
On each July 1, commencing July 1, 2004, the Backup Annual Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Yeaz.
SECTION F
METHOD OF APPORTIONMENT OF THE ANNiJAL SPECIAL TAX
Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy
Annual Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Properry at up to 100% of the applicable Assigned Annual Special Tax
rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first
step has been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual
Special Tax applicabie to each such Assessor's Parcel as needed to satisfy the Special
Taac Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of
the Assigned Annual Special Tax applicable to each such Assessor's Pucel as needed
to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tas Requirement after the first
three steps have been completed, then the Annual Special Tax on each Assessor's
Parcel of Developed Properiy whose Maximum Special Tax is the Backup Annual
Special Tax shall be increased Proportionately from the Assigned Annual Special Tax
up to 100% of the Backup Annual Special Tas as needed to satisfy the Special Ta~c
Requirement.
Step Five: If addirional moneys are needed to satisfy the Special Tax Requirement after the fust
four steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to
100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel
as needed to satisfy the Special Tax Requirement.
SECTION G
PREPAYMENT OF ANNUAL SPECIAL TAX
The following definirions apply to this Section G:
"CFD Public Facilities" means $10,900,000 expressed in 2003 dollars, which shall increase by the
Construction Inflation Index on July 1, 2004, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized
City of Lake E[sinore
CFD Na. 2003-2 (Canyon Hil[s) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CfD No. 2003-2 ((Canyon Hills) Page B-8
Rate and Method of Apportionment of Special Taxes
bonding program for Improvement Area A, or (ii) determined by the City Council concurrently with
a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this
Rate and Method of Apportionment.
"Construction Fund" means an account specifically idenrified in the Indenture or funcrionally
equivalent to hold funds, which are currently available for expenditure to acquire or conshuct public
faciliries eligible under Improvement Area A.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record
Building Cost Index for the city of I,os Angeles, measured as of the calendar year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Conshuction 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 construcrion or escrow accounts or funded by the Outstanding Bonds, and
minus public facility costs funded by interest eamings on the Conshucfion Fund actually earned prior
to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special
Taxes which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, exciuding Bonds to be redeemed at a later date with the proceeds of prior
prepayments of Maximum Special Taxes.
The Special Tax obligation of an Assessor's Parcel of Developed Properiy, or an Assessor's Parcel of
Approved Property or Undeveloped Properry for which a building permit has been issued or is
expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Properry may be prepaid
in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding
with respect to such Assessor's Parcel at the rime the Special Tax obligation would be prepaid. The
Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as
described below.
An owner of an AssessoYs Parcel intending to prepay the Annual Special Tax obligation shall
provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice,
the City shall notify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incurred by Improvement Area A in calculating the proper amount of a prepayment.
Within 15 days of receipt of such non-refundable deposit, the Ciry shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemption Premium
plus Future Faciliries Amount
plus Defeasance Cost
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
Ciry of Lake E[sinore
CFD No. 2003-2 (Canyon Hillsf - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-9
Rate and Method of Apportionment of Special Taxes
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For an Assessor's Parcel of Developed Property, compute the Assigned
Annual Special Ta~c applicable to the Assessor's Parcel. For an Assessor's
Parcel of Approved Property or Undeveloped Property, compute the Assigned
Annual Special Tax as though is was already designated as Developed
Property based upon the building permit issued or expected to be issued for
that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped
Properiy compute the Assigned Annual Special Tax for that Assessor's
Parcel.
2. For each Assessor's Parcel of Developed Properry, Approved Property,
Undeveloped Property or Provisional Undeveloped Property to be prepaid,
divide the Assigned Annual Special Tax computed pursuant to paragraph 1
for such Assessor's Parcel by the sum of the estimated Assigned Annual
Special Tax applicable to all Assessor's Parcels of Taxable Property at
buildout, as reasonably determined by the City.
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding
Bonds. The product shall be the "Bond Redempfion AmounY'.
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 Redernprion Amount. This product is the "Redemption
Premium."
5. Compute the Future Facilities Cost.
6. Multiply the quotient computed pursuant to paragraph 2 by the amount
determined pursuant to pazagraph 5. to determine the Future Facilities Cost to
be prepaid (the "Future Facilities AmounY').
7. Compute the amount needed to pay interest on the Bond Redemption Amount
to be redeemed with the proceeds of the Prepayment Amount until the earliest
call date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinveshnent
of the Bond Redemprion Amount plus the Redemption Premium unril the
earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance Cost "
10. Estimate the administrative fees and expenses associated with the
prepayment, including the costs of computarion 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
"Administrarive Fee."
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-10
Rate and Method of Apportionment of Speciai Taxes
i l. Calculate the "Reserve Fund CrediY' as the lesser of: (a) the expected
reducrion 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 fiinds on the prepayment date.
Notwithstanding the foregoing, if the reserve fund requirement is satisfied by
a surety bond or other insYnunent at the rime 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.
12. The Prepayment Amount is equal to the sum of the Bond Redemprion
Amount, the Redemption Premium, the Future Faciliries Amount, the
Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to paragraphs
3, 4, 9, and 11 shall be deposited into the appropriate fund as established
under the bond indenture and used to retire Outstanding Bonds or make debt
service payments. The amount computed pursuant to paragraph 6 shall be
deposited into the Construction Fund. The amount computed pursuant to
paragraph 10 shall be retained by Improvement Area A.
With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council
shall indicate in the records of Improvement Area A that there has been a prepayment of the Special
Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax
obligarion and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of
such Assessor's Parcel to pay such Special Taxes shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that
may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the
regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in
each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX
The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of
Approved Property or Undeveloped Properiy for which a building permit has been issued or is
elcpected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in
this Secrion H. below, may be partially prepaid, provided that there are no delinquent Special Taxes,
penalties, or interest chazges outstanding with respect to such Assessor's Parcel at the fime the
Special Tax obligation would be prepaid.
City of Lake Elsinore
CFD Na. 2003-2 (Canyon Hills) - Improvement Area A
City of Lake Eisinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-11
Rate and Method of Apportionment of Special Taxes
The Partial Prepayment Amount shall be calculated according to the following formula:
PP=PGxF
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
P~ = the Prepayment Amount calculated according to Secrion G.
F= the percent by which the owner of the Assessor's Parcel is partially prepaying
the Special Tax obligation.
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the
records of CFD No. 2003-2 that there has been a partial prepayment of the Special Taz~ obligation
and shall cause a suitable norice to be recorded in compliance with the Act within thirry (30) days of
receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of
the Special Tax obligarion and the partial release of the Special Tax lien on such Assessor's Parcel,
and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Tax that may be levied on Taxable Property after such partial prepayment, net of Administrarive
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments
on all cunently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all
Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes
remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the
extent necessary to reimburse Improvement Area A for uncollected Annual Special Ta~ces associated
wittt the levy of such Annual Special Taxes, but not later than the 2041-42 Fiscal Year.
SECTION J
EXEMPTIONS
The City shall classify as Exempt Properry (i) Assessor's Parcels which are owned by, inevocably
offered for dedication, encumbered by or restricted in use by the State of Califomia, Federal or other
local governments, including school districts, (ii) Assessor's Pazcels 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, inevocably 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 aze privately owned and are encumbered by or restricted
solely for public uses, or (vi) other types of public uses determined by the City Council, provided that
no such classification would reduce the sum of all Taxable Properiy to less than 51.4 Acres for Zone
1 and 6.7 Acres for Zone 2.
City ojLake E[sinare
CFD No. 2003-2 (Canyon Hi[ls) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-12
Rate and Method of Apportionment of Special Taxes
Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 51.4 Acres
for Zone 1 and 6.7 Acres for Zone 2. Assessor's Parcels which cannot be classified as Exempt
Properry because such classification would reduce the Acreage of all Taxable Properiy to less than
51.4 Acres for Zone 1 and 6.7 Acres for Zone 2 will be classified as Provisional Undeveloped
Properiy, and will be subject to Special Taxes pursuant to Step Five in Secrion F.
SECTION K
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file
a written notice of appeal with the City Council not later than twelve months after having paid the
first installment of the Special Tax that is disputed. A representative(s) of Improvement Area A shall
promptly review the appeal, and if necessary, meet with the property owner, consider written and
oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's
decision requires that the Special Tax for an Assessor's Parcel be modified or changed in Favor of the
property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment
shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).
SECTION L
MANNER OF COLLECTION
The Annual Special Tax shall be coilected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that Improvement Area A may collect Annual Special
Taxes at a different time or in a different manner if necessary to meet its financial obligarions.
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hills) -ImprovementArea A
City of Lake Elsinore EXHIBIT "B"
CFD No. 2003-2 ((Canyon Hills)
October 9, 2003
Page 8-13
Rate and Method of Apportionment of Special Taxes
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City ofLake Elsinare
CFD No. 2003-2 (Canyore Hills) - Improvement Area A
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hiils) Page B-14
Rate and Method of AppoRionment of Speciai Taues
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
(IMPROVEMENT AREA B)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area B of the City of Lake Elsinore ("Cit}~') Community Facilities
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on
and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the applicarion
of the Rate and Method of Apportionment described below. All of the real properry within
Improvement Area B, unless exempted by law or by the provisions hereof, shall be taxed for the
purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the
applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall
be calculated by the City Engineer.
"AcY' means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1 of Division 2 of Title 5 of the Govemment Code of the State of California.
"Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf
of Improvement Area B related to the determination of the amount of the levy of Special Taxes, the
collecrion of Special Taxes including the expenses of collecting delinquencies, the administration of
Bonds, the payment of salaries and henefits of any City employee whose duties are directly related to
the administration of Improvement Area B, and costs otherwise incurred in order to carry out the
authorized purposes of CFD No. 2003-2 relating to Improvement Area B.
"Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's
Parcel.
"Apartment Property" means all Assessor's Parcels of Residential Property on which one or more
Aparhnent Units are constructed.
"Aparhnent UniY' means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a
Final Map that was recorded prior to the January lst preceding the Fiscal Year in which the Special
City ofLake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area B
City of Lake Elsinore EXHIBIT "8" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-15
Rate and Method of AppoRionment of Special Taxes
Tax is being levied, and (ii) that have not been issued a building permit on or before March Ist
preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Annual Special Tax" means the Special Tax of that name described in Secrion D below
"Backup Annual Special Tax" means the Special Tax of that name described in Section E below.
"Bonds" means any obiigation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Taxes within Improvement Area B have been pledged.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD No. 2003-2" means Community Faciliries District No. 2003-2 established by the City under
the Act.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislarive Body
of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Propert}>' means all Assessor's Parcels of Taxable Property that: (i) are included in a
Final Map that was recorded prior to the January lst preceding the Fiscal Year in which the Special
Tax is being levied, and (ii) a building permit was issued on or before March lst preceding the Fiscal
Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes as
provided for in Secrion J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or ]ot line
adjustment, pursuant to the Subdivision Map Act (California Govemment Code Section 66410 et
seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which building permits may be issued without further subdivision.
Ciry of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Lmprovement Area B ~
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hiils) Page B-16
Rate and Method of AppoRionment of Special Taxes
"Fiscal Year° means the period commencing on July 1 of any year and ending the following June 30.
"Improvement Area B" means Improvement Area B of CFD No. 2003-2, as idenrified on the
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the maximum Special Tas, determined in accordance with Section
C, that can be levied by CFD No. 2003-2 within Improvement Area B in any Fiscal Year on any
Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building
permit was issued for any type of non-residential use.
"Partial Prepayment AmounY' means the amount required to prepay a portion of the Annual Special
Tax obligation for an Assessor's Parcel, as described in Section H.
"Prepayment AmounY' means the amount required to prepay the Annual Special Tax obligation in
full for an Assessor's Parcel, as described in Section G.
"Proportionately" means that the ratio of the Annual Special Tax levy to the applicable Assigned
Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property
subject to the apportionment of the Annual Specia( Tax under step four of Section F,
"Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned
Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special
Tax, is equal for all applicable Assessor's Parcels.
"Provisional Undeveloped Property~' means all Assessor's Parcels of Tasable Property that would
otherwise be classified as Exempt Properiy pursuant to the provisions of Section J, but cannot be
classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Section J for Zone 1, Zone 2 or Zone 3 as
applicable.
"Residential Propert}~' means all Assessor's Parcels of Developed Properiy for which a building
permit has been issued for purposes of conshucring one or more residential dwelling units.
"Single Family Property" means a11 Assessor's Parcels of Residenrial Property other than Apartment
Property.
"Single Family UniP' means a residential dwelling unit other than an Aparhnent Unit.
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area B by
CFD No. 2003-2 pursuant to the Act.
"Special Tax RequiremenP' means the amount required in any Fiscal Year to pay: (i) the debt service
or the periodic costs on all outstanding Bonds due in the Calendar Yeaz that commences in such
Fiscal Year, (ii) Administrative Eacpenses, (iii) the costs associated with the release of funds from an
escrow account, (iv) any amount required to establish or replenish any reserve funds established in
association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or
construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount
City of Lake E[sinore
CFD Na. 2003-2 (Canyon Hills) - Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-17
Rate and Method of Apportionment of Special Taxes
does not cause an increase in the levy of Special Taac on Undeveloped Property as set forth in Step
Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the
Bonds pursuant to any applicable bond indenture, fiscal agenYagreement, or hust agreement.
"Taxable Property" means all Assessor's Parcels within Improvement Area B, which are not Exempt
Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed
Property, Approved Property or Provisional Undeveloped Property.
"Zone" means Zone 1, Zone 2 or Zone 3
"Zone 1" means a specific gebgraphic area as depicted in Eachibit A attached herein.
"Zone 2" means a specific geographic area as depicted in E~chibit A attached herein.
"Zone 3" means a specific geographic area as depicted in Exhibit A attached herein.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Pazcel within Improvement
Area B shall be assigned to Zone 1, Zone 2 or Zone 3 and shall be classified as Taxable Property or
Exempt Property. In addition, each Assessor's Parcel of Taxable Property shall be further classified
as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped
Property. In addi6on, each Assessor's Parcel of Developed Ptoperty shall further be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential
Property shall further be classified as a Single Family Property or Apartment Property, and each
Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based
on its Building Square Footage.
If an Assessor's Parcel of Developed Property lies within both Zone 2 and Zone 3 it shall be deemed
to lie entirely within Zone 3 and shall be subject to the Assigned A~nnual Special Tax rates for Zone
3.
SECTION C
MAXIMUM SPECIAL TAX
1. Developed Properiy
The Maximum Special Tax for each Assessor's Parcel of Residential Proper[y or Non-
Residential Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax.
City af Lake E[sinore
CFD No. 2003-2 (Canyon Hil[s) - Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-18
Rate and Method of Apportionment of Special Taues
2. Approved Property, Undeveloped Properiy and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel classified as Approved Property,
Undeveloped Property, or Provisional Undeveloped Properiy in any Fiscal Year shall be the
Assigned Annual Special Tax.
SECTION D
ASSIGNED ANNUAL SPECIAL TAX
1. Developed Property
Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or
Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned
Annual Special Tax applicable to an Assessor's Parcel of Developed Properry for Fiscal Year
2003-04 shall be determined pursuant to Tables 1 and 2 below.
TABLE 1
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1 AND ZONE 2
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $1,025 per Unit
Single Family Unit 1,175 - 1,324 $1,116 per Unit
Single Family Unit 1,325 - 1,549 $1,264 per Unit
Single Family Unit 1,550 - 1,649 $1,355 per Unit -
Single Family Unit 1,650 -1,749 $1,445 per Unit
Single Family Unit 1,750 - 1,949 $1,497 per Unit
Single Family Unit 1,950 - 2,199 $1,548 per Unit
Single Family Unit 2,200 - 2,449 $1,730 per Unit
Single Family Unit 2,450 - 2,699 $1,821 per Unit
Single Family Unit 2,700 - 2,949 $1,913 per Unit
Single Family Unit 2,950 or greater $2,094 per Unit
Aparhnent Unit N/A $600 per Unit
Non-Residential Properry N/A $5,000 per Acre
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) -ImprovementArea B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-19
Rate and Method of Apportionment of Special Taues
TABLE 2
ASSIGNED ANNLTAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 3
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $807 per Unit
Single Family Unit 1,175 - 1,324 $898 per Unit
Single Family Unit 1,325 - 1,549 $1,046 per Unit
Single Family Unit 1,550 - 1,649 $1,137 per Unit
Single Family Unit 1,650 - 1,749 $1,227 per Unit
Single Family Unit 1,750 - 1,949 $1,279 per Unit
Single Family Unit 1,950 - 2,199 $1,316 per Unit
Single Family Unit 2,200 - 2,449 $1,489 per Unit
Single Family Unit 2,450 - 2,699 $1,575 per Unit
Single Family Unit 2,700 - 2,949 $1,705 per Unit
Single Family Unit 2,950 or greater $1,876 per Unit
Apartment Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
2.
Approved Property, Undeveloped Property and Provisional Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Property shall be subject to an Assigned Annual Special Taac. The
Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property,
Undeveloped Property and Provisional Undeveloped Property for Fiscal Year 2003-04 shall
be $35,825 per Acre for Zone 1, $13,297 per Acre for Zone 2 and $11,940 per Acre for Zone
3.
Increase in the Assigned Annual Special Tax
On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed
Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property
shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hil[s) -ImprovementArea B
City of Lake Eisinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyon Hilis) Page B-20
Rate and Method of Apportionment of Special Taxes
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of
Developed Properry classified or reasonably expected to be classified as a Single Family Properiy
within such Final Map area shall be determined by (i) summing the product of (a) the Mvcimum
Special Tax rate for Undeveloped Property by (b) the total Acreage of Taacable Properly of each
Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map
area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably
expected to be constructed within such Final Map area. The resulting quorient shall be the Backup
Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area.
The Maacimum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property
rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's
Parcel is located in two Zones, the Maximum Special Taac rate applied shall be the lower of the rivo
Maximum Special Tax rates.
The Backup Annual Special Tax for all Assessor's Parcels of Developed Property classified as Non-
Residenrial Property or Aparhnent Property shall be the Maximum Special Tax rate for Undeveloped
Properiy. The Maximum Special Tax rate(s) applied in the preceding sentence shall be the
applicable Undeveloped Properiy rate of the Zone in which the Assessor's Parcel is located. If an
Assessor's Parcel is located in two Zones, the Undeveloped Properiy Maacimum Special Tax rate of
each Zone shall be multiplied by the Acreage of the Assessor's Parcel within the applicable Zone and
the Backup Annual Special Tax of the Assessors Parcel shall equal the total of the two calculated
amounts.
If a Final Map includes Assessor's Parcels of Developed Property which are classified or reasonably
expected to be classified as Single Family Property and Non-Residential Property or Aparhnent
Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or
reasonably eacpected to be classified as Single Family Properiy shall be computed exclusive of the
allocable portion oftotal Acreage attributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Property or Aparhnent Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or
to be classified as either Single Family Property, Aparhnent Property or Non-Residential Property
are subsequently changed of modified by recordation of a lot line adjustment or similar instruxnent,
then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual
Special Tax that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2004, the Backup Annual Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX
Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy
Annual Special Taxes on all Taxable Property in accordance with the following steps:
City oj'Lake Elsinore
CFD No. 2003-2 (Canyon Hi[Isf - Improvement Area B
City of Lake Elsinore EXHIBIT "8" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page 6-21
Rate and Method of Apportionment of Special Taxes
Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Annual Special Tax
rates in Tables 1 and 2 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to sarisfy the Special Tax Requirement after the first
step has been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual
Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special
Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Properiy up to 100% of
the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed
to sarisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Annual Special Talc on each Assessor's
Parcel of Developed Property whose Maximum Special Taac is the Backup Annual
Special Tax shall be increased Proportionately from the Assigned Annual Special Tax
up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Ta7c
Requirement.
Step Five: If additional moneys are needed to sarisfy the Special Tax Requirement after the first
four steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Properiy up to
100% of the Assigned Annual Special Ta~c applicable to each such Assessor's Parcel
as needed to satisfy the Special Tax Requirement.
SECTION G
PREPAYMENT OF ANNUAL SPECIAL TAX
The following definitions apply to this Section G:
"CFD Public Faciliries" means $30,300,000 expressed in 2003 dollars, which shall increase by the
Conshucrion Inflarion Index on July 1, 2004, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized
bonding program for Hnprovement Area B, or (ii) determined by the City Council concurrently with
a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this
Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or consriuct public
faciliries eligible under Improvement Area B.
City of Lake E[sinore
CFD No. 200.?-2 (Canyon Hi1Gs) - Improvement Area B
City of lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyo~ Hiils) Page B-22
Rate and Method of Apportionment of Special Taxes
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record
Building Cost Index for the ciry of Los Angeles, measured as of the calendar yeu which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Conshuction Inflation Index
shall be another index as detemuned by the City that is reasonably comparable to the Engineedng
News-Record Building Cost Index for the city of Los Angeles.
"Fuhue Facilities Costs" means the CFD Public Facilities minus public facility costs available to be
funded through existing construction or escrow accounts or funded by the Outstanding Bonds, and
minus public facility costs funded by interest earnings on the Construction Fund actually earned prior
to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special
Taxes which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior
prepayments of Maximum Special Taxes.
The Special Tas obligarion of an Assessor's Parcel of Developed Properiy, or an Assessor's Parcel of
Approved Property or Undeveloped Property for which a building permit has been issued or is
e~cpected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid
in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding
with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The
Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as
described below.
An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall
provide the City with written notice of intent to prepay, and within 5 days of receipt of such norice,
the City shall norify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incurred by Improvement Area B in calculating the proper amount of a prepayment.
Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemprion Amount
plus Redemprion Premium
plus Future Facilities Amount
plus Defeasance Cost
plus Administrative Fee
less Reserve Fund Credit
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
For an Assessor's Parcel of Developed Properiy, compute the Assigned
Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's
Parcel of Approved Property or Undeveloped Property, compute the Assigned
Annual Special Tax as though is was already designated as Developed
Property based upon the building permit issued or expected to be issued for
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Impravement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-23
Rate and Method of Apportionment of Special Taxes
that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped
Property compute the Assigned Annual Special Tax for that Assessor's
Parcel.
2. Far each Assessor's Parcel of Developed Properly, Approved Property,
Undeveloped Property ar Provisional Undeveloped Properiy to be prepaid,
divide the Assigned Annual Special Tax computed pursuant to pangraph 1
for such Assessor's Parcel by the sum of the estimated Assigned Annual
Special Tax applicable to all Assessor's Parcels of Tasable Property at
buildout, as reasonably determined by the City.
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding
Bonds. The product shall be the "Bond Redemprion Amount".
4. Multiply the Bond Redemption Amount by the applicable redemption
premium, if any, on the Outstanding Bonds to be redeemed with the proceeds
of the Bond Redemption Amount. This product is the "Redemption
Premium."
5. Compute the Future Facilities Cost.
6. Multiply the quotient computed pursuant to paragraph 2 by the amount
determined pursuant to paragraph 5. to determine the Future Facilifies Cost to
be prepaid (the "Future Facilities AmounP').
7. Compute the amount needed to pay interest on the Bond Redemprion Amount
to be redeemed with the proceeds of the Prepayment Amount until the earliest
call date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinvestment
of the Bond Redemption Amount plus the Redemption Premium until the
earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance Cost "
10. Estimate the administrative fees and expenses associated with the
prepayment, including the costs of computarion of the Prepayment Amount,
the costs of redeeming Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
11. Calculate the "Reserve Fund Credit" as the lesser of: (a) the elcpected
reducrion in the applicable reserve requirements, if any, associated with the
redemprion 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 sarisfied by
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-24
Rate and Method of Apportionment of Special Ta~ces
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.
12. The Prepayment Amount is equal to the sum of the Bond Redempfion
Amount, the Redemption Premium, the Future Facilities Amount, the
Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to paragraphs
3, 4, 9, and 11 shall be deposited into the appropriate fund as established
under the bond indenture and used to retire Outstanding Bonds or make debt
service payments. The amount computed pursuant to paragraph 6 shall be
deposited into the Construction Fund. The amount computed pursuant to
paragraph 10 shall be retained by Improvement Area B.
With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council
shall indicate in the records of Improvement Area B that there has been a prepayment of the Special
Tax obligation and shall cause a suitable norice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Ta7c
obligarion and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of
such Assessor's Parcel to pay such Special Taxes shall cease.
Norivithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that
may be levied on Taxable Property, net of Administrafive Expenses, shall be at least 1.1 times the
regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in
each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX
The Special Tax obligafion of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of
Approved Property or Undeveloped Property for which a building permit has been issued or is
expected to be issued, or and Assessor's Parcel of Provisional Undeveloped Property, as calculated in
this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes,
penalries, or interest charges outstanding with respect to such Assessor's Parcel at the time the
Special Tax obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP=PGxF
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated according to Section G.
F= the percent by which the owner of the Assessor's Parcel is partially prepaying
the Special Tax obligation.
City ofLake Elsinore
CFD No. 2003-2 (Canyon Hi[ls) - Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-25
Rate and Method of Apportionment of Special Taxes
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the
records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligation
and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of
receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of
the Special Taac obligation and the partial release of the Special Tax lien on such Assessor's Parcel,
and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Taac that may be levied on Taxable Property after such partial prepayment, net of Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments
on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Annual Special Tas shall be levied on all
Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes
remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the
extent necessary to reimburse Improvement Area B for uncollected Annual Special Taxes associated
with the levy of such Annual Special Taxes, but not later than the 2043-44 Fiscal Year.
SECTION J
EXEMPTIONS
The City shall classify as Exempt Properiy (i) Assessor's Parcels which aze owned by, irrevocably
offered for dedication, encumbered by or restricted in use by the State of California, Federal or other
local govemments, 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
organizarion, (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 utilily easements making impractical their utilization for other than the purposes set forth in the
easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted
solely for public uses, or (vi) other types of public uses determined by the City Council, provided that
no such classificarion would reduce the sum of all Taxable Properry to less than 27.4 Acres for Zone
1, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3.
Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 27.4 Acres
for Zone l, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3. Assessor's Parcels which cannot be
classified as Exempt Property because such classification would reduce the Acreage of all Taxable
Property to less than 27.4 Acres for Zone 1, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3 will be
classified as Provisional Undeveloped Properiy, and will be subject to Special Taxes pursuant to Step
Fivein Secrion F.
Ciry of Lake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-26
Rate and Method of Apportionment of Special Taues
SECTION K
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file
a written norice of appeal with the City Council not later than twelve months after having paid the
first installment of the Special Tax that is disputed. A representafive(s) of Improvement Area B shall
promptly review the appeal, and if necessary, meet with the property owner, consider written and
oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's
decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the
property owner, a cash refund shall not be made (except for the last year of levy), but an adjushnent
shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).
SECTION L
MANNER OF COLLECTION
The Annual Special Tax shall be collected in the same manner and at the same rime as ordinary ad
valorem property tases, provided, however, that Improvement Area B may collect Annual Special
Taxes at a different time or in a different manner if necessary to meet its financial obligations.
Ciry of Lake E[sinore
CFD No. 2003-2 (Canyon Hi[!s) - Improvement Area B
City of Lake Elsinore EXHIBIT "B"
CFD No. 2003-2 ((Canyon Hills)
October 9, 2003
Page B-27
Rate and Method of Appo~tionment of Speciai Taxes
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City of Lake Elsinore
CFD No. 2003-2 (Canyon Hi[ls) -Improvement Area B
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-28
Rate and Method of Apportionment of Special Taxes
RATE AND METHOD OF APPORTIONMENT FOR
COMMLTNITY FACILITIES DISTRICT NO. 2003-2
OF THE CTTY OF LAKE ELSINORE
(CANYON HILLS)
(IMPROVEMENT AREA C)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special Taxes in Improvement Area C of the City of Lake Elsinore ("City") Community Faciliries
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Tax shall be levied on
and collected in CFD No. 2003-2 each Fiscal Year, in an amount determined through the application
of the Rate and Method of Apportionment described below. All of the real property within
Improvement Area C, unless exempted by law or by the provisions hereof, shall be taxed for the
purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the
applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall
be calculated by the City Engineer.
"AcY' means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means any ordinary and necessary expense incurred by the City on behalf
of Improvement Area C related to the determination of the amount of the levy of Special Taxes, the
collection of Special Taxes including the expenses of collecting delinquencies, the administration of
Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to
the administration of Improvement Area C, and costs otherwise incurred in order to carry out the
authorized purposes of CFD No. 2003-2 relating to Improvement Area C.
"Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's
Pazcel.
"Aparhnent Property" means all Assessor's Parcels of Residential Property on which one or more
Apartment Units are constructed.
"Aparhnent Unit" means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Propert}~' means all Assessor's Parcels of Taxable Property: (i) that aze included in a
Final Map that was recorded prior to the January lst preceding the Fiscal Year in which the Special
Tas is being levied, and (ii) that have not been issued a building permit on or before March lst
preceding the Fiscal Year in which the Special Tax is being levied.
Ciry of Lake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area C ~
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-29
Rate and Method of Apportionment of Special Taxes
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Annual Special Tax" means the Special Tax of that name described in Section D below.
"Backup Annual Special Ta~c" means the Special Tas of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which SpeciaT Taxes within Improvement Area C have been pledged.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under
the Act.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body
of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Propert}~' means all Assessor's Parcels of Taxable Proper[y that: (i) are included in a
Final Map that was recorded prior to the January ist preceding the Fiscal Year in which the Special
Tax is being levied, and (ii) a building permit was issued on or before March 1 st preceding the Fiscal
Year in which the Special Tax is being levied.
"Exempt Propert~' means all Assessor's Parcels designated as being exempt from Special Taaces as
provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjushnent, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which building permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) -ImprovementArea C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-30
Rate and Method of Apportionment of Special Ta~ces
"Improvement Area C" means Improvement Area C of CFD No. 2003-2, as identified on the
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the masimum Special Tax, determined in accordance with Secrion
C, that can be levied by CFD No. 2003-2 within Improvement Area C in any Fiscal Year on any
Assessor's Parcel.
"Non-Residential Propert}~' means all Assessor's Parcels of Developed Properiy for which a building
permit was issued for any type of non-residenrial use.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Annual Special
Tax obligation for an Assessor's Pucel, as described in Section H.
"Prepayment Amoun£' means the amount required to prepay the Annual Special Tax obligarion in
full for an Assessor's Pazcel, as described in Section G.
"Proportionatel}~' means that the ratio of the Annual Special Tax levy to the applicable Assigned
Annual Special Tax is equal for all applicable Assessor's Parcels. In case of Developed Property
subject to the apportionment of the Annual Special Tax under step four of Section F,
"Proportionately" in step four means that the quorient of (a) Annual Special Tax less the Assigned
Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special
Tax, is equal for all applicable Assessor's Parcels.
"Provisional Undeveloped Properiy" means all Assessor's Parcels of Taxable Property that would
otherwise be classified as Exempt Properiy pursuant to the provisions of Section J, but cannot be
classified as Exempt Property because to do so would reduce the Acreage of all Ta~ble Properry
below the required minimum Acreage set forth in Section J for Zone 1 or Zone 2 as applicable.
"Residential Properiy" means all Assessor's Parcels of Developed Properly for which a building
permit has been issued for purposes of conshucting one or more residential dwelling units.
"Single Family Propert}~' means all Assessor's Parcels of Residenrial Property other than Aparhnent
Property.
"Single Family UniY' means a residential dwelling unit other than an Aparhnent Unit.
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area C by
CFD No. 2003-2 pursuant to the Act.
"Special Ta1c RequiremenY' means the amount required in any Fiscal Year to pay: (i) the debt service
or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such
Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an
escrow account, (iv) any amount required to establish or replenish any reserve funds established in
association with the Bonds, and (v) the collection or accumularion of funds for the acquisition or
construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount
does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in Step
Three of Section F, less (vi) any amounts available to pay debt service or other periodic costs on the
Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or hust agreement.
Ciry of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-31
Rate and Method of AppoRionment of Special Taxes
"Taxable Propert}~' means all Assessor's Parcels within Improvement Area C, which are not Exempt
Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed
Properry, Approved Properiy or Provisional Undeveloped Property.
"Zone" means Zone 1 or Zone 2.
"Zone P' means a specific geographic area as depicted in Exhibit A attached herein.
"Zone 2" means a specific geographic area as depicted in Exhibit A attached herein.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement
Area C shall be assigned to Zone I or Zone 2 and shall be classified as Taxable Property or Exempt
Properry. In addirion, each Assessor's Parcel of Taatable Property shall be further classified as
Developed Property, Approved Property, Undeveloped Proper[y or Provisional Undeveloped
Property. In addirion, each Assessor's Parcel of Developed Property shall further be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential
Property shall further be classified as a Single Family Property or Aparhnent Property, and each
Single Family Properry shall be assigned to its appropriate Assigned Annual Special Tax rate based
on its Building Square Footage.
If an Assessor's Parcel of Developed Property lies within both Zone 1 and Zone 2 it shall be deemed
to lie entirely within Zone 2 and shall be subject to the Assigned Annual Special Tax rates for Zone
2.
SECTION C
MAXIMUM SPECIAL TAX
Developed Properiy
The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non-
Residential Property that is classified as Developed Properry in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax.
2. Approved Property, Undeveloped Properiy and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel classified as Approved Property,
Undeveloped Properiy, or Provisional Undeveloped Property in any Fiscal Year shall be the
Assigned Annual Special Tax.
Ciry of Lake Elsinore
CFD No. 2003-2 (Canyon Hi[Is) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page 632
Rate and Method of Apportionment of Special Taxes
SECTION D
ASSIGNED ANNLTAL SPECIAL TAX
Developed Property
Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Property, or
Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned
Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Yeaz
2003-04 shall be determined pursuant to Tables 1 and 2 below.
TABLE i
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $1,107 per Unit
Single Family Unit 1,175 - 1,324 $1,205 per Unit
Single Family Unit 1,325 - 1,549 $1,365 per Unit
Single Family Unit 1,550 - 1,649 $1,463 per Unit
Single Family Unit 1,650 - 1,749 $1,561 per Unit
Single Family Unit 1,750 - 1,949 $1,617 per Unit
Single Family Unit 1,950 - 2,199 $1,668 per Unit
Single Family Unit 2,200 - 2,449 $1,859 per Unit
Single Family Unit 2,450 - 2,699 $1,974 per Unit
Single Family Unit 2,700 - 2,949 $2,002 per Unit
Single Family Unit 2,950 or greater $2,146 per Unit
Aparhnent Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hil[s) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyon Hilis) Page B-33
Rate and Method of Apportionment of Special Ta~ces
TABLE 2
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $872 per Unit
Single Family Unit 1,175 - 1,324 $970 per Unit
Single Family Unit 1,325 - 1,549 $1,130 per Unit
Single Family Unit 1,550 - 1,649 $1,228 per Unit
Single Family Unit 1,650 - 1,749 $1,326 per Unit
Single Family Unit 1,750 - 1,949 $1,381 per Unit
Single Family Unit 1,950 - 2,199 $1,451 per Unit
Single Family Unit 2,200 - 2,449 $1,642 per Unit
Single Family Unit 2,450 - 2,699 $1,756 per Unit
Single Family Unit 2,700 - 2,949 $1,785 per Unit
Single Family Unit 2,950 or greater $1,928 per Unit
Aparhnent Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
2.
3.
Approved Property, Undeveloped Property and Provisional Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Property shall be subject to an Assigned Annual Special Taac. The
Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property,
Undeveloped Properry and Provisional Undeveloped Property for Fiscal Year 2003-04 shall
be $12,241 per Acre for Zone 1 and $11,493 per Acre for Zone 2.
Increase in the Assigned Annual Special Tax
On each July I, commencing July 1, 2004, the Assigned Special Tax rate for Developed
Property, Approved Property, Undeveloped Properiy and Provisional Undeveloped Property
shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
City ofLake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area C
EXHIBIT "B" October 9, 2003
City of Lake Eisinore Page B-34
CFD No. 2003-2 ((Canyon Hills)
Rate and Method of Apportionment of Special Taxes
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of
Developed Property classified or reasonably expecY Oo be ciassified as a Single Family Property
within such Final Map area shall be determined b the total Acgeage of T xable(Property of each
Special Tax rate for Undeveloped Property by (b)
Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map
area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably
expected to be constructed within such Final Map area. The resulting quorient shall be the Backup
Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area.
The Maximum Special Tas rate(s) applied in (i) above shall be t ro ded, howevere if aneAS essorts
rate for the Zone in which each Assessor's Parcel is located; p
Parcel is located in two Zones, the Maximum Special Tax rate applied shall be the lower of the two
Maximum Special Tax rates.
The Backup Annual Special Taac for all Assessor's Parcels of Developed Property classified as Non-
Residential Properry ar Apartment Property sh(1)beptpe Maximum Special Tax rate for Undeveloped
Properly. The Maximum Special Tax rate s a lied in the preceding sentence shall be the
applicable Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an
Assessor's Parcel is located in two Zones, the Undeveloped Properry Maximum Special Tax rate of
each Zone shall be mulriplied by the Acreage of the Assessor's Parcel within the applicable Zone and
the Backup Annual Special Taac of the Assessors Parcel shall equal the total of the two calculated
amounts.
If a Final Map includes Assessor's Parcels of Developed Properiy which are classified or reasonably
expected to be classified as Single Family Property and Non-Residential Property or Aparhnent
Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or
reasonably expected to be classified as Single Family Property shall be computed exclusive of the
allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Properiy or Apartment Property.
Notwithstanding the foregoing, if Assessor's Parcels a~ n~1PPodePTOOr NonhR sidenrialSP operty
to be classified as either Single Family Property, Ap P m'
are subsequently changed of modified by recordation of a lot line adjushnent or similar instrument,
then the Backup Annual Special Tax st~all be recalculated to equal the amount of Backup Annual
Special Tax that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2004, the Backup Annual Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAI. TAX
Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy
Annual Special Ta~ces on all Taxable Property in accordance with the following steps:
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvemenr Area C
EXHIBIT "B" October 9, 2003
City of Lake Elsinore Page B-35
CFD No. 2003•2 ((Canyon Hilis)
Rate and Method of Apportionment of Special Taxes
Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Pazcel of
Developed Property at up to 100% of the applicable Assigned Annual Special Tax
rates in Tables i and 2 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Ta~c Requirement after the first
step has been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor's Parcel of Approved Properry at up to 100% of the Assigned Annual
Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special
Taac Requirement.
Step Three: If addirional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Properry up to 100% of
the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed
to sarisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to sarisfy the Special Tax Requirement after the first
three steps have been completed, then the Annual Special Tax on each Assessor's
Parcel of Developed Property whose Maximum Special Tax is the Backup Annual
Special Tax shall be increased Proportionately from the Assigned Annual Special Tax
up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax
Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first
four steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Properry up to
100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel
as needed to satisfy the Special Tax Requirement.
SECTION G
pREPAYMENT OF ANNUAL SPECIAL TAX
The following definitions apply to this Section G:
"CFD Public Facilities" means $10,300,000 expressed in 2003 dollars, which shall increase by the
Construction Inflarion Index on July 1, 2004, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized
bonding program for Improvement Area C, or (ii) determined by the City Council concurrently with
a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this
Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or funcrionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct public
facilities eligible under Ixnprovement Area C.
City of Lake Elsinore
CFD No. 2003-2 (Canyon HiUs) - Improvement Area C
City of Lake Elsinore EXHIBtT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-36
Rate and Method of AppoRionment of Special Taxes
"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 Inflarion Index
shall be another index as determined by the City that is reasonably comparabte 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 conshuction 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
Taaces which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior
prepayments of Maximum Special Taxes.
The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of
Approved Property or Undeveloped Properiy for which a building permit has been issued or is
expected to be issued, or an Assessor's Parcel of Provisional Undeveloped Property may be prepaid
in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding
with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The
Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as
described below.
An owner of an Assessor's Parcel intending to prepay the Annual Special Tax obligation shall
provide the City with written norice of intent to prepay, and within 5 days of receipt of such notice,
the City shall notify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incuned by Improvement Area C in calculating the proper amount of a prepayment.
Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemption Amount
plus Redemprion Premium
plus Future Faciliries Amount
plus Defeasance Cost
plus Administrarive Fee
less Reserve Fund 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 Annual
Special Taac applicable to the Assessor's Parcel. For an Assessor's Parcel of
Approved Property or Undeveloped Properiy, compute the Assigned Annual
Special Tax as though is was already designated as Developed Property based
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-37
Rate and Method of AppoRionment of Special Taues
upon the building percnit issued or expected to be issued for that Assessor's
Parcel. For an Assessor's Parcel of Provisional Undeveloped Property compute
the Assigned Annual Special Tax for that Assessor's Parcel.
2. For each Assessor's Parcel of Developed Proper[y, Approved Property,
Undeveloped Property or Provisional Undeveloped Property to be prepaid,
divide the Assigned Annual Special Tax computed pursuant to paragraph 1
for such Assessor's Parcel by the sum of the estimated Assigned Annual
Special Tax applicable to all Assessor's Parcels of Taxable Property at
buildout, as reasonably deternuned by the City.
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding
Bonds. The product shall be the "Bond Redemption AmounY'.
4. Multiply the Bond Redemprion 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 "Redemprion
Premium."
5. Compute the Future Facilities Cost
6. Multiply the quotient computed pursuant to paragraph 2 by the amount
determined pursuant to paragraph 5. to determine the Future Faciliries Cost to
be prepaid (the "Future Facilities AmounP').
7. Compute the amount needed to pay interest on the Bond Redemption Amount
to be redeemed with the proceeds of the Prepayment Amount until the earliest
call date for the Outstanding Bonds.
8. Estimate the amount of interest earnings to be derived from the reinvestment
of the Bond Redemprion Amount plus the Redemption Premium until the
earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance Cost "
10. Esrimate the administrative fees and expenses associated with the
prepayment, including the costs of computation of the Prepayment Amount,
the costs of redeeming Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
11. Calculate the "Reserve Fund CrediY' 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
redemprion of Outstanding Bonds as a result of the prepayment from the
balance in the applicable reserve funds on the prepayment date.
City of Lake Elsinore
CFD No. 2003-2 (Canyan Hil[s) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyon Hills) Page B-38
Rate and Method of Apportionment of Special Taxes
Norivithstanding 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.
12. The Prepayment Amount is equal to the sum of the Bond Redemprion
Amount, the Redemption Premium, the Future Faciliries Amount, the
Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to paragraphs
3, 4, 9, and 11 shall be deposited into the appropriate fund as established
under the bond indenture and used to retire Outstanding Bonds or make debt
service payments. The amount computed pursuant to paragraph 6 shall be
deposited into the Construcrion Fund. The amount computed pursuant to
paragraph 10 shall be retained by Ixnprovement Area C.
With respect to Special Tax obligation that is prepaid pursuant to this Secrion G, the City Council
shall indicate in the records of Improvement Area C that there has been a prepayment of the Special
Taac obligation and shall cause a suitable notice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax
obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of
such Assessor's Parcel to pay such Special Taxes shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that
may be levied on Taxable Property, net of Administrarive Expenses, shall be at least 1.1 times the
regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in
each future Fiscal Year.
SECTION H
PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX
The Special Taac obligarion of an Assessor's Parcel of Developed Properiy, or an Assessor's Parcel of
Approved Property or Undeveloped Properiy 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 Secrion H. below, may be partially prepaid, provided that there are no delinquent Special Taxes,
penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time the
Special Tax obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP=PGxF
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 Tas obligation.
City ofLake E[sinore
CFD Na. 2003-2 (Canyon HiUs) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003•2 ((Canyon Hilis) Page B39
Rate and Method of Apportionment of Special Taxes
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the
records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tvc obligation
and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of
receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of
the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel,
and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Tax that may be levied on Taacable Property after such partial prepayment, net of Administrative
Expenses, shall be at least l.l times the regularly scheduled annual interest and principal payments
on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax shall be levied on all
Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Special Taxes
remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the
extent necessary to reimburse Improvement Area C for uncollected Annual Special Taxes associated
with the levy of such Annual Special Taxes, but not later than the 2045-46 Fiscal Year.
SECTION J
EXEMPTIONS
The City shall classify as Exempt Properiy (i) Assessor's Parcels which are owned by, irrevocably
ofFered for dedicarion, 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 ta~ces 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 utilizarion for other than the purposes set forth in the
easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted
solely for public uses, or (vi) other types of public uses determined by the City Council, provided that
no such classification would reduce the sum of all Taxable Property to less than 5.4 Acres for Zone 1
and 58.2 Acres for Zone 2.
Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classificaYion would reduce the sum of all Taxable Property to less than 5.4 Acres
for Zone 1 and 58.2 Acres for Zone 2. Assessor's Parcels which cannot be classified as Exempt
Property because such classification would reduce tlte Acreage of all Taxable Property to less than
5.4 Acres for Zone 1 and 58.2 Acres for Zone 2 will be classified as Provisional Undeveloped
Property, and will be subject to Special Taxes pursuant to Step Five in Section F.
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area C ~
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-40
Rate and Method of Apportionment of Special Taxes
SECTION K
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file
a written notice of appeal with the Ciry Council not later than twelve months after having paid the
first installment of the Special Tax that is disputed. A representarive(s) of Improvement Area C shall
promptly review the appeal, and if necessary, meet with the property owner, consider written and
oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's
decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the
property owner, a cash refund shall not be made (except for the last year of levy), but an adjustment
shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).
SECTION L
MANNER OF COLLECTION
The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem properry taxes, provided, however, that Improvement Area C may collect Annual Special
Taxes at a different time or in a different manner if necessary to meet its financial obligations.
Ciry of Lake Elsinore
CFD No. 200.?-2 (Canyon Hills) - Improvement Area C
City of Lake Eisinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-41
Rate and Method of Apportionment of Special Taxes
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Ciry ofLake E[sinore
CFD No. 2003-2 (Canyan Hi[ls) - Improvement Area C
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-42
Rate and Method of Apportionment of Special Taxes
RATE AND METHOD OF APPORTIONNIENT FOR
COMMUIVITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
(IMPROVEMENT AREA D)
The following sets forth the Rate and Method of Apportionment for the levy and collection of
Special TaJCes in Improvement Area D of the City of Lake Elsinore ("Cit}~') Community Facilities
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An Annual Special Ta~c shall be levied on
and collected in CFD No. 2003-2 each Fiscal Year, in an amount deternuned through the applicarion
of the Rate and Method of Apportionment described below. All of the real properry within
Improvement Area D, unless exempted by law or by the provisions hereof, shall be taxed for the
purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel
Map, or if the land area is not shown on the Assessor's Parcel Map, the land azea as shown on the
applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall
be calculated by the City Engineer.
"Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrarive Expenses" means any ordinary and necessary expense incurred by the City on behalf
of Improvement Area D related to the determinarion of the amount of the levy of Special Taxes, the
collection of Special Taxes including the expenses of collecting delinquencies, the administrarion of
Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to
the administration of Improvement Area D, and costs otherwise incurred in order to carry out the
authorized purposes of CFD No. 2003-2 relating to Improvement Area D.
"Annual Special Tax" means the Special Tax actually levied in any Fiscal Year on any Assessor's
Parcel.
"Aparhnent Property" means all Assessor's Parcels of Residential Property on which one or more
Aparhnent Units are constructed.
"Aparhnent UniY' means a dwelling unit within a building comprised of attached residenrial units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a
Final Map that was recorded prior to the January lst preceding the Fiscal Year in which the Special
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hi[[s) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-43
Rate and Method of Apportionment of Special Taxes
Tax is being levied, and (ii) that have not been issued a building permit on or before March lst
preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with an
assigned Assessor's Parcel Number.
"Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by
Assessor's Parcel Number.
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for
purposes of identification.
"Assigned Annual Special Tax" means the Special Tatc of that name described in Secrion D below.
"Backup Annual Special Tax" means the Special Tax of that name described in Section E below.
"Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds,
notes, certificates of participation, long-term leases, loans from government agencies, or loans from
banks, other financial insritutions, private businesses, or individuals, or long-term contracts, or any
refunding thereof, to which Special Taxes within Improvement Area D have been pledged.
`Building Square Footage" or `BSF" means the square footage of assessable internal living space,
exclusive of garages or other structures not used as living space, as determined by reference to the
building permit application for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD No. 2003-2" means Community Facilities District No. 2003-2 established by the City under
the Act.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body
of CFD No. 2003-2, or its designee.
"County" means the County of Riverside
"Developed Propert}~' means all Assessor's Pazcels of Taxable Property that: (i) are included in a
Final Map that was recorded prior to the January lst preceding the Fiscal Year in which the Special
Tvc is being levied, and (ii) a building permit was issued on or before March lst preceding the Fiscal
Year in which the Special Tax is being levied.
`Bxempt Propert}~' means ali Assessor's Parcels designated as being exempt from Special Taxes as
provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjushnent, pursuant to the Subdivision Map Act (California Government Code Section 66410 et
seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates
individual lots for which building permits may be issued without further subdivision.
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-44
Rate and Method of Apportionment of Special Taxes
"Fiscal Year" means the period commencing on July 1 of any year and ending the following June 30.
"Improvement Area D" means Improvement Area D of CFD No. 2003-2, as identified on the
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section
C, that can be levied by CFD No. 2003-2 within Improvement Area D in any Fiscal Year on any
Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building
permit was issued for any type of non-residenrial use.
"Partial Prepayment AmounY' means the amount required to prepay a portion of the Annual Special
Tax obligation for an Assessor's Parcel, as described in Secrion H.
"Prepayment AmounY' means the amount required to prepay the Annual Special Tax obligation in
full for an Assessor's Parcel, as described in Section G.
"Proportionatel}~' means that the ratio of the Annual Special Tax levy to the applicable Assigned
Annual Special Taac is equal for all applicable Assessor's Parcels. In case of Developed Properry
subject to the apportionment of the Annual Special Tax under step four of Section F,
"Proportionately" in step four means that the quotient of (a) Annual Special Tax less the Assigned
Annual Special Tax divided by (b) the Backup Annual Special Tax less the Assigned Annual Special
Tax, is equal for all applicable Assessor's Parcels.
"Provisional Undeveloped Properiy" means all Assessor's Parcels of Taxable Property that would
otherwise be classified as Exempt Propetty pursuant to the provisions of Secrion J, but cannot be
classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property
below the required minimum Acreage set forth in Section J for Zone l, Zone 2 or Zone 3 as
applicable.
"Residential Propedy" means all Assessor's Parcels of Developed Properiy for which a building
permit has been issued for purposes of construcring one or more residenrial dwelling units.
"Single Family Propert}~' means all Assessor's Parcels of Residential Property other than Aparhnent
Properiy.
"Single Family UniY' means a residenrial dwelling unit other than an Aparhnent Unit.
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area D by
CFD No. 2003-2 pursuant to the Act.
"Special Tax RequiremenY' means the amount required in any Fiscal Year to pay: (i) the debt service
or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such
Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an
escrow account, (iv) any amount required to establish or replenish any reserve funds established in
association with the Bonds, and (v) the collection or accumularion of funds for the acquisition or
construction of facilities authorized by CFD No. 2003-2 provided that the inclusion of such amount
City ofLake Elsinare
CFD No. 2003-2 (Canyan Hills) - Impravement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CPD No. 2003•2 ((Canyon Hills) Page B-45
Rate and Method of Apportionment of Special Taxes
does not cause an increase in the levy of Special Tax on Undeveloped Properry as set forth in Step
Three of Section F., less (vi) any amounts available to pay debt service or other periodic costs on the
Bonds pursuant to any applicable bond indenture, fiscal agent agreement, or trust agreement.
"Taxable Property" means all Assessor's Parcels within Improvement Area A, which are not Exempt
Property.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed
Properry, Approved Property or Provisional Undeveloped Property.
"Zone" means Zone 1, Zone 2 or Zone 3.
"Zone 1" means a specific geographic area as depicted in E~ibit A attached herein.
"Zone 2" means a specific geographic area as depicted in Exhibit A attached herein.
"Zone 3" means a specific geographic area as depicted in Exhibit A attached herein.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Parcel within Improvement
Area D shall be assigned to Zone 1, Zone 2 or Zone 3 and shall be classified as Taxable Property or
Exempt Property. In addirion, each Assessor's Parcel of Taxable Property shall be further classified
as Developed Property, Approved Property, Undeveloped Properiy or Provisional Undeveloped
Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential
Property shall further be classified as a Single Family Property or Aparhnent Property, and each
Single Family Property shall be assigned to its appropriate Assigned Annual Special Tax rate based
on its Building Square Footage.
SECTION C
MAXIMUIVI SPECIAL TAX
1. Developed Properiy
The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non-
Residenrial Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax.
2. Approved Properiy, Undeveloped Properry and Provisional Undeveloped Property
The Maximum Special Tax for each Assessor's Parcel classified as Approved Properry,
Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the
Assigned Annual Special Tax.
City of Lake E[sinore
CFD No. 2003-2 (Canyon Hil[s) - Improvement Area D
City of Lake Elsinore EXHIBIT "B"
CFD No. 2003•2 ((Canyon Hilis)
October 9, 2003
Page B-46
Rate and Method of Apportionment of Special Taxes
SECTION D
ASSIGNED ANNUAL SPECIAL TAX
1. Developed Proper[y
Each Fiscal Year, each Assessor's Parcel of Single Family Property, Apartment Properly, or
Non-Residential Property shall be subject to an Assigned Annual Special Tax. The Assigned
Annual Special Tax applicable to an Assessor's Parcel of Developed Property for Fiscal Yeaz
2003-04 shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1,ZONE 2 AND ZONE 3
FOR FISCAL YEAR 2003-04
Land Use Type Building Square Footage Rate
Single Family Unit Less than 1,175 $1,120 per Unit
Single Family Unit 1,175 - 1,324 $1,223 per Unit
Single Family Unit 1,325 - 1,449 $1,428 per Unit
Single Family Unit 1,450 - 1,549 $1,473 per Unit
Single Family Unit 1,550 - 1,649 $1,517 per Unit
Single Family Unit 1,650 - 1,749 $1,562 per Unit
Single Family Unit 1,750 - 1,949 $1,606 per Unit
Single Family Unit 1,950 - 2,199 $1,651 per Unit
Single Family Unit 2,200 - 2,449 $1,856 per Unit
Single Family Unit 2,450 - 2,699 $1,959 per Unit
Single Family Unit 2,700 - 2,949 $2,019 per Unit
Single Family Unit 2,950 - 3,299 $2,173 per Unit
Single Family Unit 3,300 - 3,649 $3,219 per Unit
Single Family Unit 3,650 or greater $3,733 per Unit
Apartment Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
Ciry of Lake Elsinore
CFD Na. 2003-2 (Canyan Hi[[s) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hiils) Page B-47
Rate and Method of Apportionment of Special Taxes
2. Approved Property, Undeveloped Property and Provisional Undeveloped Property
Each Fiscal Year, each Assessor's Parcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Properiy shall be subject to an Assigned Annual Special Tax. The
Assigned Annual Special Tax rate for an Assessor's Parcel classified as Approved Property,
Undeveloped Proper[y and Provisional Undeveloped Property for Fiscal Year 2003-04 shall
be $14,068 per Acre for Zone 1, $6,907 per Acre for Zone 2 and $41,467 per Acre for Zone
3.
Increase in the Assigned Annual Special Tax
On each July 1, commencing July 1, 2004, the Assigned Special Tax rate for Developed
Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property
shall be increased by two percent (2.00°/o) of the amount in effect in the prior Fiscal Year.
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the time a Final Map is recorded, the Backup Annual Special Tax for all Assessor's Parcels of
Developed Property classified or reasonably expected to be classified as a Single Family Properiy
within such Final Map area shall be determined by (i) summing the product of (a) the Maacimum
Special Tax rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each
Assessor's Parcel in such Final Map area, excluding Acreage classified as Provisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exempt Properry in such Final Map
area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably
expected to be conshucted within such Final Map area. The resulting quotient shall be the Backup
Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map area.
The Maximum Special Tax rate(s) applied in (i) above shall be the applicable Undeveloped Property
rate for the Zone in which each Assessor's Parcel is located; provided, however, if an Assessor's
Parcel is located in two Zones, the Maacimum Special Tax rate applied shall be the lower of the two
Maximum Special Tax rates.
The Backup Annual Special Tax for all Assessor's Parcels of Developed Properiy classified as Non-
Residential Properiy or Aparhnent Property shall be the Maximum Special Tax rate far Undeveloped
Properry. The Maximum Special Taac rate(s) applied in the preceding sentence shall be the applicable
Undeveloped Property rate of the Zone in which the Assessor's Parcel is located. If an Assessor's
Parcel is located in two Zones, the Undeveloped Property Maacimum Special Tax rate of each Zone
shall be mulriplied by the Acreage of the Assessor's Parcel within the applicable Zone and the Backup
Annual Special Tax of the Assessars Parcel shall equal the total of the two calculated amounts.
If a Final Map includes Assessor's Parcels of Developed Properly which are classified or reasonably
eacpected to be classified as Single Family Property and Non-Residential Property or Apartment
Property, then the Backup Annual Special Tax for each Assessor's Parcel which is classified or
reasonably expected to be ciassified as Single Family Property shall be computed exclusive of the
allocable portion oftotal Acreage ariributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Property or Aparhnent Property.
City of Lake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area D
City of Lake Elsinore EXHIBIT "B"
CFD No. 2003•2 ((Canyon Hills)
October 9, 2003
Page B-48
Rate and Method of AppoRionment of Special Taxes
Norivithstanding the foregoing, if Assessor's Parcels of Developed Property which are classified or
to be classified as either Single Family Property, Apartment Properry or Non-Residential Property
are subsequently changed of modified by recordarion of a lot line adjustment or similar instrument,
then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual
Special Tax that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2004, the Backup Annual Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONMENT OF THE ANNiJAL SPECIAL TAX
Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Year, the City Council shall levy
Annual Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Annual Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Properry at up to 100% of the applicable Assigned Annual Special Tax
rates in Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to sarisfy the Special Tax Requirement after the first
step has been completed, the Annual Special Tax shall be levied Proportionately on
each Assessor's Parcel of Approved Property at up to 100% of the Assigned Annual
Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special
Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first
two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Properiy up to 100% of
the Assigned Annual Special Tax applicable to each such Assessor's Parcel as needed
to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first
three steps have been completed, then the Annual Special Tax on each Assessor's
Parcel of Developed Property whose Maximum Special Tax is the Backup Annual
Special Tax shall be increased Proportionately from the Assigned Annual Special Tax
up to 100% of the Backup Annual Special Tax as needed to satisfy the Special Tax
Requirement.
Step Five: If additional moneys are needed to sarisfy the Special Tax Requirement after the first
four steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to
100% of the Assigned Annual Special Tax applicable to each such Assessor's Parcel
as needed to satisfy the Special Tax Requirement.
Ciry ofLake Elsinore
CFD No. 2003-2 (Canyon Hil[s) - Impravement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-49
Rate and Method of Apportionment of Special Taxes
SECTION G
PREPAYMENT OF ANNUAL SPECIAL TAX
The following definitions apply to this Section G
"CFD Public Facilities" means $19,200,000 expressed in 2003 dollars, which shall increase by the
Construction Inflation Index on July 1, 2004, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized
bonding program for Improvement Area D, or (ii) determined by the City Council concurrently with
a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this
Rate and Method of Apportionment.
"Conshuction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or conshuct public
facilities eligible under Improvement Area D.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record
Building Cost Index for the city of Los Angeles, measured as of the calendar year which ends in the
previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index
shall be another index as determined by the City that is reasonably comparable to the Engineering
News-Record Building Cost Index for the city of Los Angeles.
"Future Faciliries Costs" means the CFD Public Facilities minus public facility costs available to be
funded through exisring construction or escrow accounts or funded by the Outstanding Bonds, and
minus public facility costs funded by interest earnings on the Construcrion Fund actually earned prior
to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issued and secured by the levy of Special
Taxes which will remain outstanding after the first interest and/or principal payment date following
the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior
prepayments of Maximum Special Taxes.
The Special Tas obligation of an Assessor's Parcel of Developed Properry, 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 Properiy may be prepaid
in full, provided that there are no delinquent Special Taxes, penalties, or interest charges outstanding
with respect to such Assessor's Parcel at the time the Special Tax obligation would be prepaid. The
Prepayment Amount for an Assessor's Parcel eligible for prepayment shall be determined as
described below.
An owner of an Assessor's Parcel intending to prepay the Annual Speciai Taac obligarion shall
provide the City with written notice of itttent to prepay, and within 5 days of receipt of such notice,
the City shall notify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incurred by Improvement Area D in calculating the proper amount of a prepayment.
Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
Ciry ojLake Elsinore
CFD No. 2003-2 (Canyon Hills) - Improvement Area D
City of Lake Eisinore EXHIBIT "B"
CFD No. 2003•2 ((Canyon Hills)
October9,2003
Page B-50
Rate and Method of Apportionment of Special Taxes
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
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
Annual Special Tax applicable to the Assessor's Parcel. For an Assessor's
Parcel of Approved Property or Undeveloped Property, compute the Assigned
Annual Special Tax as though is was already designated as Developed
Properly based upon the building permit issued or expected to be issued for
that Assessor's Parcel. For an Assessor's Parcel of Provisional Undeveloped
Properiy compute the Assigned Annual Special Tax for that Assessor's
Parcel.
2. For each Assessor's Parcel of Developed Property, Approved Property,
Undeveloped Property or Provisional Undeveloped Properry to be prepaid,
divide the Assigned Annual Special Tax computed pursuant to paragraph 1
for such Assessor's Parcel by the sum of the estimated Assigned Annual
Special Tax applicable to all Assessor's Parcels of Taxable Properry at
buildout, as reasonably determined by the City.
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding
Bonds. The product shall be the "Bond Redemption AmounP'.
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 Redemprion Amount. This product is the "Redemption
Premium."
5. Compute the Future Facilities Cost.
6. Multiply the quotient computed pursuant to paragraph 2 by the amount
determined pursuant to pazagraph 5. to determine tite Future Facilities Cost to
be prepaid (the "Future Facilities AmounY').
7. Compute the amount needed to pay interest on the Bond Redemption Amount
to be redeemed with the proceeds of the Prepayment Amount unril the earliest
call date for the Outstanding Bonds.
Gity ofLake Elsinore
CFD No. 2003-2 (Canyon HiQs) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-51
Rate and Method of Apportionment of Speciai Taxes
8. Estimate the amount of interest earnings to be derived from the reinveshnent
of the Bond Redemption Amount plus the Redemption Premium until the
earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance Cost "
10. Estimate the administrative fees and expenses associated wittt the
prepayment, including the costs of computation of the Prepayment Amount,
the costs of redeeming Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
11. Calculate the "Reserve Fund CrediY' 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 inshument at the rime 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.
12. The Prepayment Amount is equal to the sum of the Bond Redemprion
Amount, the Redemption Premium, the Future Facilities Amount, the
Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to paragraphs
3, 4, 9, and 11 shail be deposited into the appropriate fund as established
under the bond indenture and used to retire Outstanding Bonds or make debt
service payments. The amount computed pursuant to paragraph 6 shall be
deposited into the Construction Fund. The amount computed pursuant to
paragraph 10 shall be retained by Improvement Area D.
With respect to Special Ta7c obligation that is prepaid pursuant to this Section G, the City Council
shall indicate in the records of Improvement Area D that there has been a prepayment of the Special
Tax obligation and shall cause a suitable notice to be recorded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax
obligation and the release of the Special Tax lien on such Assessor's Parcel, and the obligarion of
such Assessor's Parcel to pay such Special Taxes shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax that
may be levied on Taxable Property, net of Administrative Expenses, shall be at least 1.1 times the
regularly scheduled annual interest and principal payments on all cunently Outstanding Bonds in
each future Fiscal Year.
City af Lake Elsinore
CFD Nn. 2003-2 (Canyon Hil[s) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-52
Rate and Method of Apportionment of Special Taxes
SECTION H
PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX
The Special Tax obligation of an Assessor's Parcel of Developed Property, or an Assessor's Parcel of
Approved Properiy 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 Properry, as calculated in
this Section H. below, may be partially prepaid, provided that there are no delinquent Special Taxes,
penalties, or interest charges outstanding with respect to such Assessor's Parcel at the rime the
Special Tax obligarion would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP=PGxF
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated according to Section G.
F= the percent by which the owner of the Assessor's Parcel is partially prepaying
the Special Tax obligation.
With respect to any Assessor's Parcel that is partially prepaid, the City Council shall indicate in the
records of CFD No. 2003-2 that there has been a partial prepayment of the Special Tax obligarion
and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of
receipt of such partial prepayment of the Special Tax obligation, to indicate the partial prepayment of
the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel,
and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Tax that may be levied on Taacable Properiy after such partial prepayment, net of Administrative
Eacpenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments
on all currently Outstanding Bonds in each future Fiscal Year.
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Annual Special Taac shall be levied on all
Assessor's Parcels subject to the Annual Special Tax. If any delinquent Annual Speciat Taxes
remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to the
extent necessary to reimburse Improvement Area D for uncollected Annual Special Taxes associated
with the levy of such Annual Special Talces, but not later than the 2046-47 Fiscal Year.
City ofLake E[sinore
CFD No. 2003-2 (Canyon Hil[s) - Improvement Area D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hilis) Page B-53
Rate and Method of Apportionment of Special Taxes
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by, irrevocably
offered for dedication, encumbered by or restricted in use by the State of Califomia, 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 properiy taaces 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 impracrical their utilization for other than the purposes set forth in the
easement, (v) Assessor's Parcels which are privately owned and are encuxnbered by or restricted
solely for public uses, or (vi) other types of public uses determined by the City Council, provided that
no such classificarion would reduce the sum of all Taxable Property to less than 60.8 Acres for Zone
1, 40.1 Acres for Zone 2 and 5.2 Acres for Zone 3.
Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 60.8 Acres
for Zone 1, 40.1 Acres for Zone 2 and 5.2 Acres for Zone 3. Assessor's Parcels which cannot be
classified as Exempt Property because such classification would reduce the Acreage of all Taxable
Property to less than 60.8 Acres for Zone 1, 40.1 Acres for Zone 2 and 5.2 Acres for Zone 3 will be
classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step
Five in Section F.
SECTION K
APPEALS
Any properiy owner claiming that the amount or applicarion of the Special Tax is not correct may file
a written notice of appeal with the City Council not later than rivelve months after having paid the
first installment of the Special Tax that is disputed. A representative(s) of Improvement Area D shall
promptly review the appeal, and if necessary, meet with the properiy owner, wnsider written and
oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative's
decision requires that the Special Tax for an Assessor's Parcel be modified or changed in fauor of the
properiy owner, a cash refund shall not be made (except for the last year of levy), but an adjustment
shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s).
SECTION L
MANNER OF COLLECTION
The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taJCes, provided, however, that Improvement Area D may collect Annual Special
Tases at a different time or in a different manner if necessary to meet its financial obligarions.
City of Lake Elsinore
CFD Na. 2003-2 (Canyon Hil[s) -ImprovementArea D
City of Lake Elsinore EXHIBIT "B" October 9, 2003
CFD No. 2003-2 ((Canyon Hills) Page B-54
Rate and Method of Apportionment of Special Taxes
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City of Lake Elsinore
CFD No. 2003-2 (Canyon Hi[ls) - Improvement Area D
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE )
I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution duly adopted by
the City Council of the City of Lake Elsinore at a Regular Meeting of said Council on the
13~h of January, 2004, and that it was so adopted by the following vote:
AYES: COUNCILMEMBERS:
HICKMAN, KELLEY, MAGEE,
SCHIFFNER,BUCKLEY
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
A TAIN: COUNCILMEMBERS:
,~ n ~
( ~,,l,C~1if~ y
'4~LCHI KA. AL), C~"+~IC, CITY CLERK/
I~iTJMAr~T R~S(?UP.CES DIRECTOR
i~ITY OF LAKE ELSINORE
(Si fiI.)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE)
NONE
NONE
NONE
I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE EIISINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. 2004-6 of said Council, and that the same has not been amended or
repealed.
DA"F~; January 28, 2004
~~~~~~
`d~CHI KASAD, CMC, CITY CLERK/
I:rJit~AN RESOURCES DIRECTOR
CITY OF LAKE ELSINORE
(SEAL)