HomeMy WebLinkAboutCC Reso No 2003-50RESOLUTION NO. 2003-50
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF LAKE ELSINORE TO ESTABLISH CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2003-2 (CANYON HILLS);
AND DESIGNATING IMPROVEMENT AREAS - WITHIN SAID
COMMUNITY FACILITIES DISTRICT
WHEREAS, the City Council (the "Council") of the City of Lake Elsinore (the "Cit}~')
has received a petition (the "Petition") requesting the institution of proceedings for (i) format~on
of a community facilities district (the "CFD") pursuant to the Mello-Roos Community Facilities
Act of 1982, as amended (the "AcY'), (ii) designation of improvement areas within the CFD, (iii)
authorization of issuance of bonds for each improvement area witlun the CFD, and (iv)
establistunent of an appropriations limit for each improvement azea within the CFD; and
WHEREAS, the Council has determined that the Petition complies with the requirements
of Government Code Section 53318(c) and now intends to initiate such proceedings; and
WHEREAS, it is the intention of the Council to finance fire and paramedic services that
aze in addition to those provided in the territory within the CFD prior to the formation of the
CFD and do not supplant services already available within the territory proposed to be included
in the CFD through the formation of the CFD subject to the levy of a special tax to pay for such
services, being approved at an election to be held within the boundaries of the CFD; and
WHEREAS, it is also the intention of the Council to finance the acquisition and
construction of the Facilities (as defined below) or any combination thereof through the
formation of the CFD, subject to the authorization of bonds and the levy of a special talc to pay
lease payments, installment purchase payments or other payments, or principal and interest on
bonds, being approved at an election to be held within the boundaries of the CFD; and
WHEREAS, pursuant to Section 53350 of the Act, the Council may designate a portion
or portions of the CFD as one or more improvement areas for purposes of financing of, ar
contributing to the financing of, specified public facilities;
NOW, THEREFORE, THE CTTY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Council hereby determines to institute proceedings for the formation
of a community facilities district under the terms of the Act. The exterior boundaries of the CFD
are hereby specified and described to be as shown on that certain map now oa file in the office of
the Clerk entitled "Proposed Boundaries of City of Lake Elsinore Community Facilities District
No. 2003-2 (Canyon Hiils)," which map indicates by a boundary iine the extent of the territory
included in the proposed community facilities district and shall govem for all details as to the
extent of the CFD. On the original and one copy of the map of such CFD on file in the City
Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of
this resolution. The Gity Clerk shall file the original of such map in her office and, within fifteen
45364425.1 ' ~ ~ " .. -
(15) days after the adoption of this Resolution, the City Clerk shall file a copy of such map so
endorsed in the records of the County Recorder, County of Riverside, State of California.
Section 2. The name of the proposed CFD shall be "City of Lake Elsinore
Community Facilities District No. 2003-2 (Canyon Hills)."
Section 3. The Council hereby designates the portions of the CFD as described in
Exhibit A attached hereto, as Improvement Area A, Improvement Area B, Improvement Area C
and Improvement Area D, respectively, of City of Lake Elsinore Community Facilities District
No. 2003-2 (Canyon Hills).
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 t~ (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 prior to the formation of the CFD and do not supplant services already available within
the territory proposed to be included in the CFD, the costs of administering the levy and
collection of the Public Safety Special Tax and all other costs of the levy of the Public Safety
Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees,
election costs, and all other administrative costs oF the tax levy. The Public Safety Special Taac
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 TaY is described in detail in Exhibit B attached hereto and
by this reference incorporated herein.
The Public Safety Special Tax is apportioned to each parcel on the foregoing basis
pursuant to Section 53325.3 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, pazk 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 Tas and all other costs of the levy of the Special Tax and issuance
of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal,
45364425.1
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 tax levy and bond issue. The Special Ta~c 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, transfened 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 Tas is
described in detail in Exhibit C attached hereto and by this reference incorporated herein. The
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 pazcel
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
behalf of the CFD, increase the levy to the extent necessary upon the remaining property wiUun
the CFD which is not delinquent or exempt in order to yield the required payments, subject to the
masimum tax. Under no circumstances, however, shall the Special Taac levied against any pazcel
used for private residential purposes be increased as a consequence of delinquency or default by
the owner of any other pazcel or pazcels within the CFD by more than 10 percent. Furthermare,
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.
Section 7. The Council hereby finds that the proposed Facilities are necessary to
meet increased demands put upon the City as a result of the new development or rehabilitation
within the proposed CFD.
Section 8. A public hearing (the "Hearing") on the establishment of the CFD and the
proposed rate and method of apportionxnent of the Public Safety Special T~ and the Special Tax
shall be held on November 25, 2003, at 7:00 p.m., or as soon thereafter as practicable, at the
chambers of the Council, 183 North Main Street, Lake Elsinore, California 92530.
Section 9. At the time and place set forth above for the hearing, any interested
person, including all persons owning lands or registered to vote within the proposed CFD, may
appear and be heard.
Section 10. Each City officer who is or will be responsible for the Services and the
Facilities to be financed by the CFD, if it is established, is hereby directed to study the proposed
CFD and, at or before the time of the above-mentioned Hearing, file a report with the Council,
and which is to be made a part of the record of the Hearing, containing a brief description of the
Services and the Facilities by type which will in his or her opinion be required to adequately
meet the needs of the CFD and his or her estimate of the cost of providing the Services and the
Facilities. The City Manager is directed to estimate the fair and reasonable cost of all incidental
expenses, including the cost of planning and designing the Facilities to be financed pursuant to
the Act, including the cost of environmental evaluations of such facilities, all costs associated
45364425.1 3 . .._ ~~ . . ~
with the crearion of the CFD, issuance of bonds, determination of the amount of any special
taxes, collection of any special talces, or costs otherwise incurred in order to carry out the
authorized purposes of the City with respect to the CFD, and any other expenses incidental to the
conshuction, completion and inspection of the authorized work to be paid through the proposed
financing.
Section ll. The City may accept advances of funds from any sources, including
private persons or private entities, and is authorized and directed to use such funds for any
authorized purpose, including any cost incurred by the City in creating the CFD. The City may
enter into an agreement to repay all of such funds as aze not expended or committed for any
authorized purpose at the time of the election on the levy of the Public Safety Special Tax and
the Special Taac, if the proposal to levy such taac should fail, and to repay all of such funds
advanced if the levy of the Public Safety Special T~ and the Special Tax shall be approved by
the qualified electors of the CFD.
Section 12. The City Clerk is hereby directed to publish a notice ("Notice") of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of the proposed CFD. Such Notice shall contain information set forth in
Section 53322 of the Act. Such publication shall be completed at least 7 days prior to the date of
the Hearing.
Section 13. The Clerk may send a copy of the Notice by first-class mail, postage
prepaid, to each registered voter and to each landowner within proposed CFD as shown on the
last equalized assessment roll. Said mailing shall be completed not less than fifteen (15) days
prior to the date of the Hearing.
Section 14. Pursuant to Section 53344.1 of the Act, the Council hereby reserves to
itself, in its sole discretion, the right and authority by subsequent resolution to allow any owner
of property within the CFD, subject to the provisions of Section 53344.1 of the Act and those
conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond
indenture or comparable instrument or document, to tender to the CFD treasurer in full payment
or part payment of any installment of the special taxes or the interest or penalties thereon which
may be due or delinquent, but far which a bill has been received, any bond or other obligation
secured thereby, the bond or other obligation to be taken at par and credit to be given for the
accrued interest shown thereby computed to the date of tender.
Section 15. The voting procedure with respect to the establishment of the CFD and the
imposition of the special taac shall be by hand delivered ballot election.
45364425.1 4
PASSED, APPROVED AND ADOPTED this 14th day of October , 2003.
ATT T:
~ , r'l/~~/t
City Clerk of the City of Lake Elsinore
APPROVED AS TO FORM:
~
Barbara Leibold, ity Attorney
APPROVED UPON THE FOLLOWING VOTE:
AYES: COUNCILMEMBERS: BUCKLEY,
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
HICKMAN, KELLEY, SCHIFFNER, BRINLEY
45364425.1 5
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CITY OF LAKE ELSINORE
' COMMUNITY FACILITIES DISTRICT NO. 2003-2
(CANYON HILLS)
(FIRE AND PARAMEDIC SERVICES)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
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 talc 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 talced 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 applicabie recorded final map or parcel map, the land area shall be
calculated by the City Engineer.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, Sections
53311 and following of the California Government Code.
"Additional Public Safety Special Taxes" means all "Maxnnum Special Taxes" that
would have been collected from developments meeting the criteria for annexation into the
Public Safety CFD, as such criteria is described in the Agreement, from "Developed
Multi-Family Propert~' and "Developed Residential Property" that are not included in
the Public Safety CFD, as such quoted terms are defined in the Public Safety CFD RMA.
"Agreement" means the Public Facilities and Services Financing Agreement between
Pardee Homes and the City, dated June 24, 2003.
"Annual Special Tax" means the special tax actually levied by CFD No. 2003-2
pursuant to the Act.
"Assessor's Parcel" means a lot or parcel shown on the County Assessar's Parcel Map
with an assigned assessor parcel number.
"Assessor's Parcel Map" means an officiai map of the County Assessor designating
parcels by assessor pazcel number.
City of Lake Elsinore
Community Facilities District No. 2003-2
Fire and Paramedic Services
October 9, 2003
Page 1
"City" means the City of Lake Elsinore, California.
"City Council" means the City Council of the City of Lake Elsinore as the tegislative
body for CFD No. 2003-2 under the Act.
"County" means the County of Riverside, California.
"Exempt Property" means any Assessor's Parcel in CFD No. 2003-2 that: (i) is
designated as being exempt from the Annual Special Tax as set forth in Section E herein
or (ii) that has been issued a building permit for residential construction by the City on or
prior to March 1 preceding the Fiscal Year in which the Annual Special Tax is being
levied.
"Fire Station" means the eastside fire station located on or near Railroad Canyon Road
providing service for the Canyon Hills Development azea and other areas of the City as
more particularly described in the Agreement.
"Fire Station Cooperation AgreemenP' means the agreement(s) entered into between
the City and County Fire for operating and staffing fire stations within the City, including
the Fire Station, and funding the costs of such operation and staffing with ad valorem real
property tases, ad valorem real property taac increment, parcel charges or assessments.
"Fire Station Operation" means the staffing of the Fire Station as a three-person facility
and annual operation and maintenance of the Fire Station.
"Fiscal Year" means the period starting July 1 and ending the foilowing June 30.
"Holding Fund" means a discrete, interest earning special fund of the City established to
hoid funds and administered pursuant to the terms of the Agreement.
"Maximum Annual Special Tax" means the M~imum Annual Special Tax determined
in accordance with Section C that can be levied by CFD No. 2003-2 in any Fiscal Year
on an Assessar's ParceL
"Proportionate Amount of Structural Fire Taxes" means the total amount of
Structural Fire Taxes generated within the City each Fiscal Year divided by the number
of fire stations within the City that aze the subject of a Fire Station Cooperation
Agreement.
"Public Safety CFD" means the "City of Lake Elsinore Community Facilities District
No. 2003-1 (Law Enforcement, Fire and Paramedic Services)".
"Public Safety CFD RMA" means the rate and method of apportionment of special tax
of the Public Safety CFD.
City of Lake Elsinore
Community Facilities District No. 2003-2
Fire and Pazamedic Services
October 9, 2003
Page 2
"Public Safety CFD Share" equals 8333% of all "Maazimum Special Taa~es" levied and
collected from "Developed Multi-Family Property" and "Developed Residential
Property" as defined in the Public Safety CFD RMA.
"Public Safety Services" means police, fire and other related public safety services
provided directly by the City or by contract with another public agency including,
without limitation, the Fire Station Operation.
"Public Safety Special Taxes" means the special taxes authorized to be levied by the
Public Safety CFD or any other CFD established by the City to fund Public Safety
Services within the area depicted in Exhibit "C" to the Agreement.
"Special Tax Requirement" means the amount required in any Fiscal Year to fund
actual Fue Station 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 taaces are being levied, less the total of:
a. The Proportionate Amount of Structural Fire Taaces estimated to be
generated in the Fiscal Year in which CFD No. 2003-2 special t~es
are being levied. If the City is unable to enter into a Fire Station
Cooperation Agreement to provide for the Fire Station Operation or
enters into, but subsequently terminates or modifies such Fire Station
Cooperation Agreement so as to reduce or eliminate the amount of
Structural Fire Taaces 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 Tases that could have been generated in the Fiscal
Year in which CFD No. 2003-2 special taaces aze being levied; and
c. Actual amounts available from the prior Fiscal Year's Public Safety
CFD Share after funding the Fire Station Operation costs and all costs
of administering the levy as set forth in the resolution of intention to
establish CFD No. 2003-2 of the prior Fiscal Year, and Undeveloped
Property Annual Special Taxes after fixnding 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 Yeaz; and
City of Lake Elsinore
Community Facilities District No. 2003-2
Fire and Paramedic Services
October 9, 2003
Page 3
d. Actual amounts available in the Holding Fund, excluding the funds
contributed from CFD No. 90-2.
"Structural Fire Taxes" means the ad valorem real property taxes, ad valorem real
property tax increment, parcel charges or assessments collected within the City and
applied to fixnd, or as a credit against fire station operation costs, including the Fire
Station Operation costs, pursuant to the Fire Station Cooperation Agreement(s).
"Undeveloped Property" means all Assessor's Parcels in CFD No. 2003-2 that aze not
Exempt Property.
SECTION B
CLASSIFICATION OF ASSESSOR'S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2003-04, each Assessor's Pazcel within the
CFD No. 2003-2 shall be classified as Undeveloped Property or Exempt Property.
SECTION C
MAXIMUM ANNUAL SPECIAL TAX
The Maximum Annual Special Tas for each Assessor's Parcel of Undeveloped Property
for the Fiscal Year 2003-04 shall be $2,741 per Acre. Commencing in the 2004-OS Fiscal
Year, and each Fiscal Year thereafter, the Maximum Annual Speciai Taac for
Undeveloped Property shall increase by 2% per Fiscal Year.
SECTION D
METHOD OF APPORTIONMENT OF THE
ANNUAL SPECIAL TAX
Commencing in the 2003-04 Fiscal Year, and each Fiscal Year thereafter, the City
Council may levy the Annual Special Tax on all Undeveloped Property at up to the
Masimum Annual Special Taac rate in order to fund the Special Tax Requirement. The
Annual Special Tax levied on an Assessor's Pazcel of Undeveloped Property in each
Fiscal Year shall equal the lesser of (i) the Maximum Annual Special Tax or (ii) the
Special Taac Requirement calculated for the Fiscal Year divided by the total Acreage of
Undeveloped Property and multiplied by the Acreage of the Assessor's Parcel.
City of Lake Elsinore
Community Facilities District No. 2003-2
Fire and Paramedic Services
October 9, 2003
Page 4
SECTION E
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parcels which are owned by,
irrevocably offered for dedication, encumbered by ar restricted in use by the State of
California, Federal or other local governments, including school districts, (ii) Assessor's
Parcels which are owned by, irrevocably offered for dedication, encumbered by or
restricted in use by a homeowners' association, (iii) Assessor's Parcels with public or
utility easements making impractical their utilization for other than the purposes set forth
in the easement, and (iv) Assessor's Parcels which are privately owned and are
encumbered by or restricted solely for public uses.
SECTION F
MANNER OF COLLECTION
The Annual Special Taac levied in each Fiscal Year shall be collected in the same manner
as ordinary ad valorem property taaces are collected and shall be subject to the same
penalties and the same procedure, sale, and lien priority in case of delinquency as is
provided for ad valorem taxes. The Annual Special Tax when levied shall be secured by
the lien imposed pursuant to Section 3115.5 of the Sireets and Highways Code. This lien
shall be continuing lien and shall secure each levy of Annual Special Tas. The lien of the
Annual Special Tax shall continue in force and effect until the Annual Special Tas 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 Ta~c may be levied in perpetuity so long as the Fire Station Operation
continues.
City of Lake Elsinore
Community Facilities District No. 2003-2
Fire and Paramedic Services
October 9, 2003
Page 5
RATE AND METHOD OF APPORTIONMENT FOR
COMMUlVITY 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 e`~1
Special Taxes in Improvement Area A of the City of Lake Elsino 'ty")
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An al ga • al
and collected in CFD No. 2003-2 each Fiscal Year, in an amoun etermi
of the Rate and Method of Apportionment described ~q~All o~~~
Improvement Area A, uniess exempted by law or by~~rovisions hereof,
purposes, to the extent, and in the manner herein pro~~d. ~~,
A
The terms hereinafter set forth have the
"Acre or Acreage" mea
Map, or if the land area i;
applicable Final Map, ~ i
be calculated by the City
"AcN' means~'e~~
Part 1 of Di~sion 2 of
of an As"~~;
~vy and collection of
Community Facilities
Tax shall be levied on
ough the application
1 properiy within
s l~be taxed for the
shown on an Assessor's Parcel
the Assess~r's Parcel "Ivlap, the land area as shown on the
a not shown a th~e applicable Final Map, the land area shall
= r.~~~
. ~~,
ies Fac111fies Act of 1982, as amended, being Chapter 2.5,
~ernment Code of the State of California.
"Administra~xpenses" s an~rdinary and necessary expense incuned by the City on
behalf of Impro e, ent Area A. ted to the determination of the amount of the levy of Special
Talces, the collecti~ Specia ' aaces including the expenses of collecting delinquencies, the
administration ofBon F~ : e p, ent of salaries and benefits of any City employee whose duries aze
directly related to the adxn -- ation of Improvement Area A, and costs otherwise incurred in order
to carry out the authorize urposes 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.
"Apartment Property" means all Assessor's Parcels of Residential Property on which one or more
Apartment Units are constructed.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 1
"Apartment Unit" means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parceis of Taacable Property: (i) that are included in a
Final Map that was recorded prior to the January 1 St preceding the Fiscal Year in which the Special
Taac is being levied, and (ii) that have not been issued a building perxnit on or before March lst
preceding the Fiscal Year in which the Special Taac is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an As ;• o~'s Parcel Map with an
assigned Assessor's Pazcel Number.
"Assessor's Parcel Map" means an official map of the Assess"~of the"(~.~" ty designating parcels
by Assessor's Parcel Number. „ x~ LL
"Assessor's Parcel Number" means that number ass'~`"" d to an, ssessor's Parce =-~ ~ e ounty for
purposes of identification. =~ ~
"Assigned Annnal Speciai Tax" means the Special Taac oft~~~~aatne described in Section D below.
"Backup Annual Special Tax" means the ~~e't~%~~,aac of that na~~,esc~ ~,r~bed in Section E below.
"Bonds" means any obhgation to repay a sum o'f~mon ~I` ~ b~gations in the form ofbonds,
notes, certificates ofparticipa ' w ~~o~~n~g-term leas`e~~.~s s fro ernment agencies, or loans from
banks, other financial inst ~ ons;~p ~ te business ., or indivi als, or long-term contracts, or any
refunding thereof, to w ,pecial 'F~es within v~ovement Area A have been pledged.
"Building Square
exclusive of g~~~
building pe~ ap~
December 31.
Parcei.
footage ofassessable internal living space,
; space, as determined by reference to the
means the "= d co~encing January 1 of any year and ending the following
"CFD No. 2003-2" s Comt~iunity Facilities District No. 2003-2 established by the City under
the Act.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Taxable Property that (i) are included in a
Final Map that was recorded prior to the January 15` preceding the Fiscal Year in which the Special
Taac is being levied, and (ii) a building permit was issued on or before Mazch ls` preceding the Fiscal
Year in which the Special Tax is being levied.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 2
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Tases
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~a~d~ing the following June
30.
"Improvement Area A" means Improvement Area A of CF `'o: 3-2, as identified on the
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the maxunum S
C, that can be levied by CFD No. 2003-2 within
Assessor's Pazcel.
"Non-Resideutial Property" means all Assessor's Pazce~
building permit was issued for any type of i o~,residential use~
"Partial Prepayment Amount" means the
Special Taac obligation far an Assessor's Par~
"Prepayment Amount"
full for an Assessor's P~
"Proportionately"
Annual Specia
subject to ,~t~ ap~
"Yroporttoitat ly" 1n step Yo
Annual ~pec ax divided
Tas, is equal fo ,;;_l~applical
in
to
ed in acco ~ance with Section
A in any Y ar on any
Properiy for which a
to pre~ a portion of the Annual
t~Sect~on H.
Annual Special Taac obligation in
~'f~er~~. '.e u~pecial Taaz levyto the applicable Assigned
for lica ssor's Parcels. In case ofDeveloped Property
~ oY Annuai Special Taac under step four of Section F,
~~rteans t ~uotient of (a) Annual Special Taac less the Assigned
5 the Ba p Annual Special Talc less the Assigned Annual Special
e t~~essorrs Parcels.
"Provisional Undev~e°t d Pr¢'~erty" means all Assessor's Parcels ofTaacable Properiy that would
otherwise be classified ~~ipt Property pursuant to the provisions of Section J, but cannot be
classified as Exempt Prop • because to do so would reduce the Acreage of all Taxable Property
below the required minim~m Acreage set forth in Section J for Zone 1 or Zone 2 as applicable.
"Residential Property" means all Assessor's Parcels of Developed Properiy for which a building
permit has been issued for purposes of constnxcting one or more residential dwelling units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than
Apartment Property.
"Single Family Unit" means a residential dwelling unit other than an Apartment Unit.
City of Lake Elsinore
Community Facilities District No. 2003-2
Ixnprovement Area A
October 9, 2003
Page 3
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area A
by CFD No. 2003-2 pursuant to the Act.
"Special Tax Requirement" means the amount required in any Fiscal Yeaz to pay: (i) the debt
service or the periodic costs on all outstanding Bonds due in the Calendaz Year that commences in
such Fiscal Yeaz, (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 pr ided that the inclusion of
such amount does not cause an increase in the levy of Special Tax on =~;~eloped Property as set
forth in Step Three of Section F., less (vi) any amounts available to p ebt service or other periodic
costs on the Bonds pursuant to any applicable bond indentur -, s ent agreement, or trust
agreement. e~,
"Taxable Property" means ail Assessor's Parcels
Exempt Property.
~
"Undeveloped Property" means all Assessor's Pat
Developed Property, Approved Property or Provisional
"Zone" means Zone 1 or Zone 2.
"Zone 1" means a specific geographic area as
"Zoue 2" means a
area as del3a~ted in
which are not
Property.
are not
herein.
A attached herein.
'S PARCELS
Each Fis~~~il. ~ ar, begimm~g ` isca °'ar~~003-04, each Assessor's Parcel within Improvement
Area A shall igned to Zo ~~or Zor,~} 2 and shall be classified as Taacable Property or Exempt
Property. In a~i-~ each Ass""'sor's Pazcel of Taxable Property shall be further classified as
Developed Prope = pproved,~~roperiy, Undeveloped Property or Provisional Undeveloped
Properry. In addition, •, oh As ~sor's Parcel of Developed Property shall further be classified as
Residential Property or ~. -' esidential Property. Lastly, each Assessor's Parcel of Residential
Property shall further be ~; ssified as a Single Family Properiy or Aparhnent Properiy, and each
Single Family Property shall be assigned to its appropriate Assigned Annuai Special Tax rate based
on its Building Square Footage.
SECTION C
MAXIMUM SPECIAL TAX
i. Developed Pronertv
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 4
The Maximum Special Taat for each Assessor's Parcel of Residential Property or Non-
Residential Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax.
2. Approved Propertv, Undeveloped Propertv and Provisional Undeveloped Propertv
The Maximum Special Ta~c for each Assessor's Pazcel classified as Approved Property,
Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the
Assigned Annual Special Taac. ~
SECTION D
ASSIGNED ANNUAL
Develoned Propertv
Each Fiscal Year, each Assessor's Parcel ofl
Non-Residential Properiy shall be subj ect to
Annual Special Taac applicable to a Assessc
2003-04 shall be determined nursu 'na~n_Ta
ASSI ~~. ~°~ ~ ANNUAL ~~~IAL 1'~";r^;,;
FOR DEVE ` OPERTY , ITHIN Z~
~ FO ~,FISCAL Y R 2003-04
~~ ~
T
apartm- rroperry,or
:cial T . The Assigned
Property for Fiscal Year
ATES
1 AND ZONE 2
Land Use T e~~ ~~ ~Bu]tl~i ~are Foota e Rate
Sin ~a"~'~~',,~Jnit '` ~~~; han 1,175 $916 erUnit
~ ~ "
S~'n~leFamil~`~7~~Y~,, '~ ~` 1 175 -1 324
, ,
$1,001perUnit
~~~le Family U ~ 1,325 -1,449 $1,169 per Unit
Sin1'~ amilyUnit'~ ,~ 1,450-1,549 $1,177 erUnit
Singl ,°y~~~; ilyUnit , 1,550-1,649 $1,184 erUnit
Sin le Fa~Unit ,~'' 1,650 -1,749 $1,192 er Unit
Single Famil it 1,750 -1,949 $1,276 er Unit
Single Family 1,950 - 2,199 $1,361 er Unit
Single Famil nit 2,200 - 2,699 $1,617 per Unit
Sin le Famil Unit 2,700 - 2,949 $1,702 er Unit
Sin le Famil Unit 2,950 or greater $1,870 er Unit
Aparhnent Unit N/A $600 per Unit
Non-Residential Properiy N/A $5,000 per Acre
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 5
2. Approved PropertV, Undeveloped PropertV and Provisional Undeveloped PropertV
Each Fiscal Yeaz, each Assessor's Parcel of Approved Property, Undeveloped Properiy 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 Yeaz 2003-04 shall
be $12,223 per Acre for Zone 1 and $22,587 per Acre for Zone 2.
3. Increase in the AssiEned Annual Special Tax
On each July 1, commencing July 1, 2004, the Assigned
Properiy, Approved Properiy, Undeveloped Property an
shall be increased by two percent (2.00%) of the amo
Taac rate for Developed
al Undeveloped Properly
3~the priorFiscal Year.
BACKUP
At the time a Final Map is recorded, the B"'
Developed Property classified or reasonably g
within such Final Map area shall be determin~~t
Special Tax rate for Undeveloped Property by"(b
Assessor's Parcel in such F' ea, excludii`
Property and any Acreag -Easonab ected to ~
area, and (ii) dividing~ne .sults in by the U
expected to be constructed wi • suc~ ' al Map
Annual Special o chA or s e;;,;a~
The MaYim ~ ~~ ecra ~ ~ ~ ~~ ~ te(s) ~ ~ ~ ~ ~ ed in (i~
rate for the~Zone in which • Asse ' P. ce:
Parcel is~loe ~d,in two Zones, Max~ Spe~
Maximum ne'~a~,Tax rates L~~`^
for all Assessor's Parcels of
o be classi v"Single Family Property
~°~ ing the oduct of (a) the Maximum
thc,. o a e of Tasable Property of each
;;~Acreage cl ified as Provisional Undeveloped
~, l~assified as Exempt Property in such Final Map
ta • u~7ber of Singie Family Units reasonably
~re~`~''I'he resulting quotient shall be the Backup
?re•veloped Property within such Final Map area.
ive shall be the applicable Undeveloped Property
is located; provided, however, if an Assessor's
al Taac rate applied shall be the lower of the two
The Backup Annua •;p e~al Ta1c~r all Assessor's Parcels of Developed Propertyclassified as Non-
Residential Property or r= ; e t Property shall be the Maacnnum Special Taac rate far Undeveloped
Property. The Maximu ecial Tax rate(s) applied in the preceding sentence shall be the
applicable Undeveloped toperty 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 Ma7cimum Special Taac 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 Pazcel 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 Properry 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
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 6
allocable portion oftotal Acreage attributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Property or Apartment Property.
Notwithstanding the foregoing, if Assessor's Parcels of Developed Properiy which aie ciassified 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 instrument,
then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual
Special Taac that would have been generated if such change did not take place.
On each July 1, commencing July 1, 2004, the Backup Annual ~
two percent (2.00%) of the amount in effect in the prior Fiscal
SECTION F
METHOD OF APPORTIONMENT OF T]
Commencing Fiscal Year 2003-04 and for each si
Annual Special Taaces on all Ta~cable Property in
Step One: The Annual Special Tax shaJ:lbe levied Pr
Developed Property at up to ~~' ~° of the
rates in Table 1 to satisfy the ~aac
Step Two: If additional moneys are needed t~ ati
~ step has been ~~1~ted, the Ann ~~" pe<
each Assessi~Pard ~f Approve ~ ~~ arop~
Special~ ~.j ~ licabl~ each such A es
Tax Require , .
Step Three:
Step Four:
two
Assigned
l~d to sati
three
~, `°r~t~ shall be increased by
;
on each Assessor's Parcel of
~signed Annual Special Tas
ax Requirement after the first
be levied Proportionately on
f up to 100°/a of the Assigned Annual
Parcel as needed to satisfy the Special
~• neede~~'tisfy the Special Tax Requirement after the first
~ee ` ompleted, the Annual Special Ta~c shall be levied
each ssor's Pazcel of Undeveloped Property up to 100% of
aal Sp~¢eial Tax applicable to each such Assessor's Pazcel as
~~ Special Tax Requirement.
~s are needed to satisfy the Special Tax Requirement after the first
en completed, then the Annual Special Tas on each Assessor's
Parcel of D~'"~eloped Property whose Maximum Special Tax is the Backup Annual
Special Tax shall be increased Proportionately from the Assigned Annual Special
Tas up to 100% of the Backup Annual Special Taac as needed to satisfy the Special
Tas Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tas Requirement after the first
four steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor's Pazcel ofProvisional Undeveloped Properiy up to
100% ofthe Assigned Annual Special Taac applicable to each such Assessor's Parcel
as needed to satisfy the Special Tax Requirement.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 7
SECTION G
PREPAYMENT OF ANNUAL SPECIAL TAX
The following definitions apply to this Section G:
"CFD Pubtic Facilities" means $10,900,000 expressed in 2003 dollars, which shall increase bythe
Construction Inflation Index on July 1, 2004, and on each July 1 thereafte «uor such lower amount (i)
determined by the City Council as sufficient to provide the public f' Y~~~rounder the authorized
bonding program for Improvement Area A, or (ii) determined by t y Council concurrently with
a covenant that it will not issue any more Bonds to be supported~aeb,~ Sp =,1 Taxes levied under this
Rate and Method of Apportionment. ~, ~
"Construction Fund" means an account specificall entified in the Inden~• or functionally
equivalent to hold funds, which are currently availah • expen~ re to acquire o ~`ruct public
facilities eligible under Ixnprovement Area A.
"Construction Inflation Index" means t annual percenta ~ ange in the Engineering News-
Record Building Cost Index for the city of L les, measured the calendaz yeaz which ends
in the previous Fiscal Year. In the event this i y~,,e e es to be pubh ~he Construction Inflation
Index shall be another index as determined ~a~y, the C-~~~~P at is r~ onably comparable to the
Engineering News-Record Bu ~ Cost Index fi5r the`~city : ~Angeles.
>a~.
~~
"Future Facilities Cos ?P" eans th~ CFD Public F ilities minus public facility costs available to
be funded through exis~mg , c~" trucri~n or escrow acc ° or funded by the Outstanding Bonds, and
minus public facility costs fun by ~~'~"er,~es M arnings~ the Constnxction Fund actually earned prior
to the date of p~e~~~~~t:~ ~~,
"Outsta~ ~g Bonds" me , previo`i~s~~ ,.issued Bonds issued and secured by the levy of Special
Taxes which remain outst ' g aft ~~~Ce first interest and/or principal payment date following
the cunent Fis ar, excludi onds to be redeemed at a later date with the proceeds of prior
prepayments of " um Spec' `=Tases.
The Special Ta1c obligati ~ Assessor's Parcel ofDeveloped Properiy, or an Assessor's Pazcel of
Approved Property or Un veloped 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 far 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 Taac 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
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page S
cost to be incurred by Improvement Area A in calculating the proper amount of a prepayment.
Within 15 days of receipt of such non-refundable deposit, the City shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the
following formula (capitalized terms defined below):
Bond Redemption Amount
plus
plus
plus
plus
less
equals
As of the date of prep
Redemption Premium
Future Facilities Amount
Defeasance Cost
Administrative Fee "~'
Reserve Fund Credit y~„,g
Prepayment Amount "` ~
ayment, the Prepayment Ama, ,,; all be c~culated as
1. For an Assessor's Parcel of Deve •.- Property, compute the Assigned
Annual Special Ta licable to the A sor's Parcel. Far an Assessor's
Parcel of Approved P~ or Undevelop ' perty, compute the Assigned
Annual Special Taac as 's was alre esignated as Developed
Properiy based upon the~uilding~p,~at issue; or expected to be issued for
that Ass r's Pazcel. Fo sess~r ~, ° oel ofProvisional Undeveloped
Prone. at ute the Asst ed Annu. Snecial Tas for that Assessor's
2_ For ea~~i~s ;, arcel o eveloped Property, Approved Property,
~~~""'~~~ndevelo ' rope v"`• visional Undeveloped Property to be prepaid,
~-"~' ~ ~"~+~,
vi,"i~~~,the A"s ed Annual Special Tax computed pursuant to paragraph 1
for six < sses ' cel by the sum of the estimated Assigned Annual
Special apph le to all Assessor's Parcels of Taacable Property at
;,w~,~ buildout, ~,areaso~ably determined by the City.
3. ': ltiply~e quotient computed pursuant to paragraph 2 by the Outstanding
Ba ;~~['he product shall be the `Bond Redemption AmounY'.
4. Mulriply 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.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 9
6. Multiply the quotient computed pursuant to paragraph 2 by the amount
determined pursuant to paragraph 5. to determine the Future Facilities Cost to
be prepaid (the "Future Facilities 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 de ' d from the reinvestment
of the Bond Redemption Amount plus the R a-mp ~ n Premium until the
earliest call date for the Outstanding Bonds~
9. Subtract the amount computed p
computed pursuant to pazagraph 7
8 from the amount
' efeasance Cost."
10. Estimate the administrati s and ~$exp ~' h
p a'~i~.
osts
P
.a
~
11. Calculate the "Reserve und " as the~~'1'esser of. (a) the expected
reductio~;~n the applicabl e e re ' ments, if any, associated with the
red~~i~i'o°"~~o ~~ utstandin .~ponds as a-~ sult of the prepayment, or (b) the
a~ount denv y subtracti . the new reserve requirements in effect after
f e c~ ptiomuf Outstandin ~; ds as a result of the prepayxnent from the
balanc "~ r. ~ ~ licable erve funds on the prepayment date.
~-,~~~ ~` ithe~~ n~` g e ,~~g, if the reserve fund requirement is satisfiedby
" a ~ bon ~' other instrument at the time of the prepayxnent, then no
Rese~ und d~t~~hall be given. Notwithstanding the foregoing, the
~_ Reserv .~ d Cre + t~"shall in no event be less than 0.
prepayment, including the costs o'~~
the costs of redeeming Bonds, an
evidence the pre =. ent and the
"Administrative Fee.'~
nent Amount is equal to the sum of the Bond Redemption
; Redemption Premium, the Future Facilities Amount, the
and the Administrarive Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to pazagraphs
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 ofthe Special
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
enses asso wit the
a~i of the Prepa ent Amount,
of recording any notices to
tion. This amount is the
October 9, 2003
Page 10
T~ 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 Tas
obligation and the release of the Special Tax lien on such Assessor's Pazcel, and the obligation of
such Assessor's Parcel to pay such Special Taxes shall cease.
Notwithstanding the foregoing, no prepayment will be allowed uniess the amount of Special Taac that
may be levied on Taacable 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
The Special Tax obligation of an Assessor's Parcel ~• oped
Approved Property or Undeveloped Property for whic , ui;
expected to be issued, or and Assessor's Parcel of Provision
m this Section H. below, may be partiall =.e aid, provided
Taxes, penalties, or interest charges outstan ""` ath respect to
the Special Tax obligation would be prepaid. ~,s, p
The Partial Prepayment Amou,~i~,~~~i_all be
=P~xF
The terms
axi As's 's Pazcel of
has b issued or is
?roperty, as calculated
are no delinquent Special
Parcel at the time
following formula:
rr = c~ iai rre _.a ent .vmount.
PG = the •.;_ `:~,ymen ~'~ o t calculated according to Section G.
~= the per by whi re owner of the Assessor's Parcel is partiallyprepaying
~, Y.~le Speci ~~'. _. &X ob iQation.
With respect to any '' sor's P~el that is partially prepaid, the City Council shall indicate in the
records of CFD No. 2~ t• here has been a partial prepayment of the Special Tax obligation
and shall cause a suitable `: e to be recorded in compliance with the Act within thirty (30) days of
receipt of such partial prep yment of the Special Tax obligation, to indicate the partial prepayment of
the Special Tax obligation and the partial release of the Special Tax lien on such Assessor's Parcel,
and the obligation of such Assessor's Parcel to pay such prepaid portion of the Special Tax shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Tax that may be levied on Taxable Property after such partial prepayment, net of Administrative
Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments
on all currently Outstanding Bonds in each future Fiscal Year.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 11
SECTION I
TERMINATION OF SPECIAL TAX
For each Fiscal Yeaz that any Bonds are outstanding the Annual Special Taac shall be levied on all
Assessor's Parcels subject to the Annual Special Tas. If any delinquent Annual Special Taaces
remain uncollected prior to or after all Bonds are retired, the Annual Special Tax may be levied to
the extent necessary to reunburse Improvement Area A for uncollected Annual Special Taxes
associated with the levy of such Annual Special Taaces, but not later th~e 2041-42 Fiscal Year.
SECTION J
The City shall classify as Exempt Properiy (i) Ass o azcels ~ch are owne irevocably
offered for dedication, encumbered by or restricted in use „ e California,q deral or other
local governments, including school districts, (ii) Assesso cels which aze used as places of
worship and are exempt from ad valorem"~ o erry taaces be e they are owned by a religious
organization, (iii) Assessor's Parcels whic wned by, in bly offered for dedication,
encumbered by or restricted in use by a homeo e aciation, (iv s ssor's Parcels with public
or utility easements making impractical their u zatio er th = the purposes set forth in the
easement, (v) Assessor's Parc hich are pri~te~~o e + re encumbered by or restricted
solely for public uses, or (vi^ a- es of publ'i~ es dete ed by the City Council, provided
that no such classificatio F ould re ' the sum of`~Il Taxable Property to less than 51.4 Acres for
Zone 1 and 6.7 Acres ~or~ ~~ ~,_~,,
_,~~
Notwithstandin ther~ e, the ~is o=e "+~ t classify an Assessor's Parcel as Exempt
Property if s-~lassi 't .t~ wou ~" uce the sum of all Taacable Property to less than 51.4 Acres
for Zone d 6.7 Acres ne . ~ssessor's Parcels which cannot be classified as Exempt
Prope 'ase such classi i` nn wo ~' educe the Acreage of all Taacable Property to less than
51.4 Acres for~ ne 1 and 6.7 res f Zone 2 will be classified as Provisional Undeveloped
Property, and wi ;. ubject to °~ cial Tases pursuant to Step Five in Section F.
SECTION K
APPEALS
Any property owner claiming that the amount or application of the Special Tas 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
shail promptly review the appeal, and if necessary, meet with the property owner, consider written
and oral evidence regazding the amount of the Special Taac, and rule on the appeal. If the
representative's decision requires that the Special Tax for an Assessor's Parcel be modified or
changed in favor of the property owner, a cash refund shall not be made (except for the last year of
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 12
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 Taac shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that Improvement Area A n~,~ collect Annual Special
Taxes at a different time or in a different manner if necessary to mee~ts'~titancial obligations.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area A
October 9, 2003
Page 13
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 Apportionxnent flie",
Special Taxes in Improvement Area B of the City of Lake Elsino ity")
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An al ' p• ral
and collected in CFD No. 2003-2 each Fiscal Year, in an amo etermi
of the Rate and Method of Apportionment described t~, _ ~All of the
Improvement Area B, unless exempted by law or by
purposes, to the extent, and in the manner herein pr,~
A
The terms hereina$er set forth ha~e the
"Acre or Acreage" means
Map, or if the land uea i
applicable Final Map, qr .
be calculated by the City E~
"Act" means •'~'ei~~~bs Co~
Part 1 of D', ion 2 of Ti the
tiies Act of 1982, as amended, being Chapter 2.5,
Code of the State of California.
"Administra "'" . xpenses" `~' s an~rdinary and necessary expense incurred by the City on
behalf of Impro nt Area B ted to the determination of the amount of the levy of Special
Taxes, the collecti Specia ` aaces including the expenses of collecting delinquencies, the
administration of Bon ~ e p,-° ent of salaries and benefits of any City employee whose duties are
directly related to the s ation of Improvement Area B, and costs otherwise incurred in order
to carry out the authorized~urposes of CFD No. 2003-2 relating to Improvement Area B.
"Annual Special Tax" means the Special Taac actually levied in any Fiscal Year on anyAssessor's
ParceL
"Apartment Property" means all Assessor's Parcels ofResidential Property on which one or more
Apartment Units aze conshucted.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
hereof,
euy and collection of
Community Facilities
Taac shall be levied on
shrough the applicafion
~'~ 1 property within
s ~> e taxed for the
of an As~ssor's Pazc -~s shown on an Assessor's Parcel
the Assessa,r's Parcel ap, the land area as shown on the
s not shown~~tY~,e applicable Final Map, the land azea shall
October 9, 2003
Page 1
"Apartment Unit" means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that aze 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) that have not been issued a building permit on or before March ls`
preceding the Fiscal Year in which the Special Taac is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an
assigned Assessor's Parcel Number.
"Assessor's Parcet Map" means an official map ofthe
by Assessor's Parcel Number.
"Assessor's Parcet Number" means that number
purposes of identification.
"Assigned Annual Special Tax" means
"Backup Annual Special Tax" means the
"Bonds" means any obligation to repay a sum
notes, certificates ofparticipat;~,xl;I~~ong-term le
banks, other financial
refitnding thereof, to ~
"Building Square
exclusive of ~at~a~F
building
December 31.
"CFD No. 2003-2"
the Act.
of any year and ending the following
District No. 2003-2 established by the City under
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Tasable Property that: (i) are included in a
Final Map that was recorded prior to the January 1 S` preceding the Fiscal Year in which the Special
T~ is being levied, and (ii) a building permit was issued on or before Mazch 1 S` preceding the Fiscal
Yeaz in which the Special Tax is being levied.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
Parcel Map with an
for
in Section D below.
in Section E below.
ol~ligations in the form ofbonds,
~" .,rnment agencies, or loans from
uals, or long-term contracts, or any
Area B have been pledged.
footage ofassessable internal living space,
; space, as deterxnined by reference to the
October 9, 2003
parcels
Page 2
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special T~es
as provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (Califomia 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 - ding the following June
30. ~
"Improvement Area B" means Improvement Area B of CFD~o ~~93-2, as identified on the
boundary map for CFD No. 2003-2. '~
"Maximum Special Tax" means the masimum Specia ~'c, determined in ac~~rtnce with Section
C, that can be levied by CFD No. 2003-2 within `~l vement ea B in any ~i Y ar on any
Assessor's Parcel. ~~-~~ ,
"Non-Residentiai Property" means all Assessor's Paicel eveloped Properiy for which a
building permit was issued for any type of~~esidential use.
"Partial Prepayment Amount" means the ~ou 'red to pr -, a portion of the Annual
Special Tax obligation for an Assessor's ParceI'~as des„ ~'_,, ,Sec~on H.
"Prepayment Amount" ~ans~ ount requir~to prepay~f~ie Annual Special Taac obligation in
full for an Assessor's Pafi~~as desc~eUed in Sectios~~G.
ti
"Proportionately" means tha~i~ ~a"~`3~~`.~ ua~Special Tax levy to the applicable Assigned
Annual Special~- • 1 for~ licab s~~s `e~,"ssor's Parcels. In case of Developed Property
subject to the apportio. '" t o ~ Annual Special Taac under step four of Section F,
"Proport~p ~ 1}~' in step fo eans t:~~quotient of (a) Annual Special Ta~c less the Assigned
Annual Spec .ax divided b~::~ the Ba'~` ~ p Annual Special Ta1c less the Assigned Annual Special
Tas, is equal for~apphcable essor s Parcels.
"Provisional Undev .: ed Pr rty" means all Assessor's Parcels ofTa~cable Properiythat would
otherwise be classified - pt Property pursuant to the provisions of Section J, but cannot be
classified as Exempt Prop ~ because to do so would reduce the Acreage oF all Taatable Property
below the required mini um Acreage set forth in Section J for Zone 1, Zone 2 or Zone 3 as
applicable.
"Residential Property" means all Assessor's Parcels of Developed Property for which a building
permit has been issued for purposes of constructing one or more residential dwelling units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than
Apartment Properly.
"Single Family Unit" means a residential dwelling unit other than an Apartment Unit.
City of Lake Elsinore October 9, 2003
Community Facilities District No. 2003-2
Ixnprovement Area B Page 3
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area B
by CFD No. 2003-2 pursuant to the Act.
"Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on ail outstanding Bonds due in the Calendar Year that commences in
such Fiscal Year, (ii) Admuustrative 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 acc ulation of fiands for the
acquisition or construction of facilities authorized by CFD No. 2003-2 ~~'d~ed that the inclusion of
such amount does not cause an increase in the levy of Special Tax . ndeveloped Property as set
forth in Step Three of Section F., less (vi) any amounts
costs on the Bonds pursuant to any applicable bond
agreement.
"Taxable Property" means all Assessor's
Exempt Property.
"Undeveloped Property" means all .
Developed Property, Approved Property
"Zone" means Zone 1, Zone 2 or Zone 3.
"Zone 1" means a specific ge~~p~iic area as
"Zone 2" means a sneci~eeoeran + ea as
"Zone 3" means a
m
service or other periodic
~nt agreement, or trust
are not
ile Property which are not
Property.
attached herein.
in Exhibit A attached herein.
in Exhibit A attached herein.
~TION B
OF ASSESSOR'S PARCELS
Each Fiscal Year, ~`, ' ing wit~scal Year 2003-04, each Assessor's Parcel within Improvement
Area B shall be assi o Zo `~1, Zone 2 or Zone 3 and shall be classified as Tasable Property or
Exempt Properiy. In ad '~"~ . ach Assessor's Pazcel of Tasable Property shall be further classified
as Developed Property, A. 'roved Property, Undeveloped Property or Provisional Undeveloped
Property. In addition, eac Assessor's Parcel of Developed Property shall further be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Parcel of Residential
Properry shall further be classified as a Single Family Property or Aparhnent Property, and each
Single Family Properiy shall be assigned to its appropriate Assigned Annual Special Taac rate based
on its Building Square Footage.
If an Assessor's Parcel ofDeveloped Properry 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 Annual Special Taac rates for Zone
3.
SECTION C
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
Pucels
October 9, 2003
Page 4
MAXIMUM SPECIAL TAX
1.
2.
Developed Proaertv
The Maacimum Special Ta1c for each Assessor's Parcel of Residential Property or Non-
Residential Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tas or (ii) the Backup Annual Special Tax.
The Maacimum Special Taac for each Assessor's Parcel
Undeveloped Property, or Provisional Undeveloped Pro~
Assigned Annual Special Tax.
SECTION
ASSIGNED
1.
FOR DEVEL~"
.~~~~
Developed PropertV
Each Fiscal Year, each Assessor's P of Single
Non-Residential Property shall be su ' As;
Annual Special Taac applicable to an A ss
2003-04 shall be determined pursuant t„ abl y
as Approved Property,
Fiscal Year shall be the
AX
ApartmentProperiy,or
;cial Tax. The Assigned
Pronertv for Fiscal Year
~.TAX RATES
[IN ZONE 1 AND ZONE 2
2003-04
,,~~,and Use T .~~, i din S uare Foota e Rate
Famil Unit Less than 1,175 $1,025 er Unit
Sin " ilyUnit . ~ 1,175-1,324 $1,116 erUnit
Single '='ly Unit 1,325 -1,549 $1,264 per Unit
Sin le F ,~Unit 1,550 -1,649 $1,355 er Unit
Single Famil =. ~~,' 1,650 -1,749 $1,445 er Unit
Single Family t 1,750 - 1,949 $1,497 er Unit
Sin le Famil iJnit 1,950 - 2,199 $1,548 er Unit
Sin le Famil Unit 2,200 - 2,449 $1,730 er Unit
Sin le Famil Unit 2,450 - 2,699 $1,821 er Unit
Sin le Famil Unit 2,700 - 2,949 $1,913 er Unit
Sin le Fanril Unit 2,950 or greater $2,094 er Unit
A artment Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 5
TABLE 2
ASSIGNED ANNUAL SPECIAL TAX RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 3
FOR FISCAL YEAR 2003-04
LandUse'1' e Buildin S uareFoota e Rate
Sin le Ramil Unit Less than 1,175 ~,~;,„„ $807 er Unit
Sin le Famil Unit 1,175 -1,324 ,, ,~~~898 per Unit
Single Family Unit 1,325 - 1,549 $1,046 per Unit
Sin IeFamil Unit 1,550-1,649 ,~ ~ ~ $1,137 erUnit
Sin le Family Unit 1,650 -1,74,~„9 "~ 227 er Unit
Sin le Famil UniY 1,750 - 1 ~~,~~9 er Unit
Sin le Family Unit 1,950 ,199 $1, er Unit
Sin le Family Unit 2,2 , S~ 49 $1,48 ~;~~nit
Sin le Famil Unit 2,450 - $1,575 : r Unit
Sin le Family Unit 2,700 - 2,9 $1,705 per Unit
Single Family Unit ~',~v~.2,950 or greater ' $1,876 er Unit
A artment Unit /A ~" " $600 per Unit
Non-Residential Properry ~ ,~ $5,000 per Acre
2.
Each Fiscal Year, e~c ssess~`'i's Parcel of A~~~r4'~ved Property, Undeveloped Property and
Provisionai Undevelog pe~~~~ ha be sub,~ect to an Assigned Annual Special Taac. The
Assign $.~ ,~~frS ecia ate fo ~se'ssor's Parcel ciassified as Approved Property,
Und oped Pr -- nd Pr•~:t ional Undeveloped Property for Fiscal Year 2003-04 shall
b~~~825 per Acre - one 1, 2~7 per Acre for Zone 2 and $11,940 per Acre for Zone
3.
On each July 1, cing July 1, 2004, the Assigned Special Taac rate for Developed
Property, Approve ' roperty, Undeveloped Property and Provisional Undeveloped Property
shall be increased'by two percent (2.00%) of the amount in effect in the prior Fiscal Yeaz.
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the time a Final Map is recorded, the Backup Annual Special Taac for all Assessor's Parcels of
Developed Property classified or reasonably expected to be classified as a Single Family Property
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 6
within such Final Map azea shall be determined by (i) sutmning the product of (a) the Ma~cimum
j Special Taac rate for Undeveloped Property by (b) the total Acreage of Taxable Property of each
Assessor's Parcei in such Final Map area, excluding Acreage classified as Provisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exempt Property in such Final Map
area, and (ii) dividing the results in (i) by the total number of Single Family Units reasonably
expected to be constructed within such Final Map area. The resulting quotient shall be the Backup
Annual Special Tax for each Assessor's Parcel of Developed Property within such Final Map azea.
The Maacimuxn Special Ta1c rate(s) applied in (i) above shall be the applicable Undeveloped Properiy
rate for the Zone in which each Assessor's Parcel is located; provided,.3ib~wever, if an Assessor's
Parcel is located in two Zones, the Maacimum Special Taac rate applie a T~e the lower of the two
Maximuxn Special Tax rates.
The Backup Annual Special Tax for all Assessor's Parcels o~e~'
~~
Residential Properiy or Aparhnent Property shall be the M~~
Property. The Maacimum Special Tax rate(s) appl'ed` in the
applicable Undeveloped Property rate of the Zone ' ' h the .
Assessor's Pazcel is located in two Zones, the Undevelo - t rop
each Zone shall be multiplied by the Acreage of the Assesso
the Backup Annual Special Tax of the As ors Pazcel
amounts.
If a Final Map includes Assessor's Parcels of D~
expected to be classified as S~ _ Family Pro~
Property, then the Backup r: " ~ cial Taac
reasonably expected to b-~ assified ingle F
allocable portion of tot 1 e att ` table to
to be classified as Non-Resid a1 ;a or .
i~erty classified as Non-
e for Undeveloped
se~~-~~~~_e shall be the
Pazce ted. If an
ium Spe 'al Tax rate of
the annhcable Zone and
the total of the two calculated
~i are classified or reasonably
~ntial Property or Aparhnent
Parcel which is classified or
Property shall be computed exclusive of the
~ Pazcels classified or reasonably expected
t~'ent Properiy.
Notwithstan g the for~ ~ if A~'~~sor's Pazcels of Developed Properiy which are classified or
to be clas as either Si amil rty, Apartment Property or Non-Residential Property
are subsequ changed of in ed by ordation of a lot line adjustment ar similaz instrument,
then the Backu < ual Specia sh 1 be recalculated to equal the amount of Backup Annual
Special Taa~ that q~have bee enerated if such change did not take place.
On each July 1, commen s y 1, 2004, the Backup Annual Special Taac rate shall be increased by
two percent (2.00%) of th ' ount in effect in the prior Fiscal Year.
SECTION F
METHOD OF APPORTIONiVIENT OF THE ANNUAL SPECIAL TAX
Commencing Fiscal Yeaz 2003-04 and for each subsequent Fiscal Yeu, the City Council shall levy
Annual Special Tases on all Taacable Property in accordance with the following steps:
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 7
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 1 and 2 to satisfy the Special Taac 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 Properiy at up to 100% ofthe Assigned Annual
Special Ta~c applicable to each such Assessor's Pazcel as needed to satisfythe Special
Taac Requirement. „~
Step Three: If additional moneys aze needed to satisfy the Specia ' Requirement after the first
two steps have been completed, the Annu ' 1 Tax shall be levied
Proportionately on each Assessor's Parcel of U evelo "•,~ - operty up to 100% of
the Assigned Annual Special Taac applic to ; ach sub ` ssessor's Parcel as
needed to satisfy the Special Taac Requi_ ent. ~
Step Four: If additional moneys aze needed to s is : e Speci~a~ Tax Requirem • er the first
three steps have been completed, then th ~ ~~ial Tas on each Assessor's
Pazcel of Developed Property whose Maacim ~,pecial Tas is the Backup Annual
Special Ta~c shall be increa roportionately"~m the Assigned Annual Special
Taac up to 100% of the Backu ~, 1 Special T ~. ee ed to satisfy the Special
Taac Requirement. _
Step Five: If additional mo . are needed
fouc steps e ~ ~~,, compl
100% o~'the"'
as needed to
on
~'~y the ~{~ - Tax Requirement after the first
the Ann 1 Special Tax shall be levied
ofProvisional Undeveloped Property up to
~nplicable to each such Assessor's Parcel
~~+ CTION G
PREPA .,; ENT"; OF ANNUAL SPECIAL TAX
The following defini~i~~,,apply,~£;o this Section G:
"CFD Public Facilities" x~ans $30,300,000 expressed in 2003 dollars, which shall increase bythe
Construction Inflation In~x 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 far Improvement Area B, or (ii) determined by the City Council concurrently with
a covenant that it will not issue any more Bonds to be supported by Special Tases levied under this
Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or funcfionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct public
facilities eligible under Improvement Area B.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 8
"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 Conshuction Inflarion'
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 fixnded through existing construction or escrow accounts or funded by tti Outstanding Bonds, and
minus public facility costs funded by interest eauiings on the Construc '~ d actually eamed prior
to the date of prepayment.
"Outstanding Bonds" means all previously issued Bonds issue(iFand sec -~ y the levyof Special
Taxes which will remain outstanding after the first intere principal ga; :: ent date following
the current Fiscal Yeaz, excluding Bonds to be redee at a later date with the. oceeds of prior
prepayments of Masimum Special Taxes. s.
~
The Special Tax obligation of an Assessor's Pazcel
Approved Property or Undeveloped Prop~ , for which a
expected to be issued, or an Assessor's Parc visiona
in full, provided that there are no delinquent Sp~c ,. , ~
with respect to such Assessor's Parcel at the tim~the ~~
Prepayment Amount for an
described below. ~
An owner of an
provide the City with written
the City shall no~ w= ~n
cost to be ine~red by ~z"~
Within 1` of receipt o'~.
Prepayment . . ~unt of such
^~-
The Prepayment ' - t for
following formula (c~ ize
plus
plus
plus
plus
less
equals
Parcel
to
~rty, or an Assessor's Parcel of
permit has been issued or is
ed Property may be prepaid
erest charges outstanding
gation would be prepaid. The
nent shall be deternuned as
; Annual Special Tas obligation shall
within 5 days of receipt of such notice,
deposit determined to cover the
B in calculating the proper amount of a prepayment.
n~able deposit, the City shall notify such owner of the
Assessor's Parcei shall be calculated according to the
defined below):
Bond Redemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Cost
Administrative Fee
Reserve Fund Credit
Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 9
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 Taac as though is was already designated as Developed
Properiy based upon the building permit issued or expected to be issued for
that Assessor's Parcel. For an Assessor's Pazcel ofProvisional Undeveloped
Properiy compute the Assigned Annual Special Tax for that Assessor's
Parcel.
2. For each Assessor's Parcel of Developed P e, Approved Property,
Undeveloped Property or Provisional Und ed Property to be prepaid,
divide the Assigned Annual Special Taac mp ursuant to paragraph 1
for such Assessor's Parcel by the s ~` the es ed Assigned Annual
Special Tas applicable to all As Qr~s arcels o able Property at
buildout, as reasonably determ~~ by the City.
3. Multiply the quotient computed nt } agraph 2
Bonds. The,product shall be the "B ' demption An
4. Multiply the Bond tron Amoun the applicable redemption
premiuxn, if any, on the ut i.ng Bonds to Qw eemed with the proceeds
of the Bond Redempt~i,~n = r~, 's ~l~ct is the "Redemption
D.-e....,.... i~
5.
the
6 Mulhp~ ~,,. e d- t compute~ci' pursuant to paragraph 2 by the amount
A, ~ideternune ;,„ suan ,~~ph 5. to deternune the Future Facilities Cost to
b"~ r~~d (t ". uture Facilities AmounY').
Compu •'' e amo needed to pay interest on the Bond Redemption Amount
to be rede` : ~ ed wi h the proceeds ofthe PrepaymenY Amount until the eazliest
all date the Outstanding Bonds.
8. ~ ''the amount of interest eamings to be derived from the reinvestment
of t,~, Bond Redemption Amount plus the Redemption Premiuxn until the
earliest call date for the Outstanding Bonds.
9. Subtract the amount computed pursuant to pazagraph 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
prepayxnent, including the costs of computation of the Prepayment Amount,
the costs of redeeming Bonds, and the costs of recording any notices to
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 10
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 o~»~the prepayment date.
Notwithstanding the foregoing, ifthe reserve ~$ recj~irement is satisfiedby
a swety bond or other instrument at the t~~ f the prepayment, then no
Reserve Fund Credit shall be given. I~otwi ding the foregoing, the
Reserve Fund Credit shall in no even be~.less th
~
12. The Prepayment Amount is e 1 to the sum of the d Redemption
Amount, the Redemption , thj" uture Faciliti~ ..'"ount, the
Defeasance, and the Administrat e, ~ e Reseive F Credit.
13. From the PrepaymeiiEaAinount, the amo omputed pursuant to pazagraphs
3, 4, 9, and 11 shall osited into th ~. ropriate fund as established
under the bond indent . to retire O ding Bonds or make debt
service payments. The oun ted pur~ant to paragraph 6 shall be
deposite ~ to the Const = f~ un . amount computed pursuant to
paza all be retain~ by Impr ment Area B.
With respect to Speciat`T n~.ligatio hat is prepai uant to this Section G, the City Council
shall indicate in the records of+Pm r. ~• ea B t there has been a prepayment of the Special
Taac obligation ause a 3able n'• ~"e recorded in compliance with the Act within
thirty (30) da> s of re~~p~b~ suc payment to indicate the prepayment of the Special Taac
obligatio the release o peci = ~ ien on such Assessor's Parcel, and the obligation of
such As ess arcel to pay s. Spec'~~ axes shall cease.
Notwithstanding tYt egoing, repayxnent will be allowed unless the amount of Special Taac that
may be levied on T Prop ~, net of Administrative Expenses, shall be at least 1.1 times the
regulazly scheduled ann rest 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 ofDeveloped Properiy, or an Assessor's Pazcel 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
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 11
in this Section H. below, may be partially prepaid, provided that there are no delinquent Special
Taxes, penalties, or interest charges outstanding with respect to such Assessor's Parcel at the time
the Special Tax obligation would be prepaid.
The Partial Prepayment Amount shall be calculated according to the following formula:
PP=P~xF
The terms above have the following meanings:
PP = the Partial Prepayment Amount.
PG = the Prepayment Amount calculated a
F= the percent by which the owner of the
the Special Tax obligation. ~
With respect to any Assessor's Parcel that is partiall
records of CFD No. 2003-2 that there has been a i~
and shall cause a suitable notice to be recorded in comp:
receipt of such partial prepayment ofthe Special Taac ob
the Special Ta1c obligation and the partial r e of the
and the obligation of such Assessor's Parce - u
~
cease. n~
m G.
is partiallyprepaying
y Council s.'~ d'cate in the
of the Specia $ , obligation
~ct within thi (30) days of
indicate the partial prepayment of
ien on such Assessor's Parcel,
'o of the Special Tax shail
Notwithstanding the foregoin , ial prepa enf~will be ed
Talc that may be levied o xa' ; perty a8er~ t~ch partia repaym
Expenses, shall be at le times ~= egulazly sch~edule
on all currently Outstandin ~ t ds i ach future Fis
~ ~ ,~~
~~ .c' ~' .
~,~~~ .~~SECTION I
.~~~ . IN ~ ~N OF SPECIAL TAX
For each Fiscal'~, hat any Ba, s aze outstanding the Annual Speciai Taac shall be levied on all
Assessor's Parcels : ct to t Annual Special Tax. If any delinquent Aiumal Special Taxes
remain uncollected pn t~{ or er all Bonds are retired, the Annual Special Taac may be levied to
the extent necessary to urse Improvement Area B for uncollected Annual Special Taxes
associated with the levy o' such Annual Special Taaces, but not later than the 2043-44 Fiscal Year.
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Pazcels which are owned by, irrevocably
offered far dedication, encumbered by or restricted in use by the State of California, Federal or other
local governments, including school districts, (ii) Assessor's Parcels which are used as places of
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
d annual interest and principal payments
ear.
unless the amount of Special
ent, net of Administrative
October 9, 2003
Page 12
worship and are exempt from ad valorem property taxes because they are owned by a religious
organization, (iii) Assessor's Pazcels which aze owned by, irrevocably offered for dedication,
encumbered by or restricted in use by a homeowners' association, (iv) Assessor's Parcels with public
or utility easements making impractical their utilization for other than the purposes set forth in the
easement, (v) Assessor's Parcels which are privately owned and are encumbered by or restricted
solely for public uses, or (vi) other types of public uses determined by the City Council, provided
that no such classification would reduce the sum of all Taxable Property to less than 27.4 Acres for
Zone 1, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3.
Notwithstanding the above, the City Council shall not classify an s~'s Parcel as Exempt
Properiy if such classification would reduce the sum of all Taxable erty to less than 27.4 Acres
for Zone 1, 56.6 Acres for Zone 2 and 31.0 Acres for Zone 3. Parcels which cannot be
classified as Exempt Property because such classification wou educe " creage of all Taxable
Property to less than 27.4 Acres for Zone 1, 56.6 Acres for ~e 2~and 31.0 s for Zone 3 will be
classified as Provisional Undeveloped Property, and wil •' subje,~t to Special pursuant to Step
Five in Section F. ~
K
Any property owner claiming that the amount~r ap~3' "' of the S~cial Taac is not correct may
file a written notice of appeal with the City Cou~cil n~: 'elve months after having paid
the first installment of the Sp . s that is disp~~ A repre ~q •' ative(s) of Improvement Area B
shall promptly review the eal, necessary~ixieet with tlie properiy owner, consider written
and oral evidence reg~aY "~' , the t of the ecial Tax, and rule on the appeal. ff the
representarive's decision re~'°~ g~ es t; the Special or an Assessor's Parcel be modified or
changed in favor o~,,~e prope ,~c~`i all not be made (except for the last year of
levy), but an a~~~~ 11 be ~e to the al Special Tax on that Assessor's Pazcel in the
SECTION L
R OF COLLECTION
The Annual Special Taac ':~e collected in the same manner and at the same time as ordinary ad
valorem property taaces, p~~vided, however, that Ixnprovement Area B may collect Annual Special
Taxes at a different time or in a different manner if necessary to meet its financial obligations.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area B
October 9, 2003
Page 13
RATE AND METHOD OF APPORTIONMENT FOR
COMMIJNITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON HILLS)
(IMPROVEMENT AREA C)
The following sets forth the Rate and Method of Apportionxnent -I~e`"Tevy and collection of
Special T~es in Improvement Area C of the City of Lake Elsino * ity") Community Facilities
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An al 'al Tax shall be levied on
and collected in CFD No. 2003-2 each Fiscal Year, in an amoun ~ etermi ough the application
of the Rate and Method of Apportionment described -~~,11 of thex~~~l property within
Improvement Area C, unless exempted by law or by provisions hereof, s~' e taaced for the
purposes, to the extent, and in the manner herein pr -
_~i1, 4
CTION A
D ~ IONS
The terms hereinafter set forth have the follow g m 4~
"Acre or Acreage" means t~'e~i~. rea of an A or's Pare s shown on an Assessor's Pazcel
Map, or if the land area i t sho "~`~ the Asses 's Parcel Map, the land area as shown on the
applicable Final Map, ., and ar • s not shown ~ e applicable Final Map, the land area shall
be calculated by the City En ~. r
~ ~~~:n < .,~r~ ~-~~~, ~°,,~"~~,", ,
"Act" means ~"l~le 1^~i s Co ~ ities Facll ' es Act of 1982, as amended, being Chapter 2.5,
Part i of D' ion 2 of Ti the n rnment Code of the State of California.
"Administra xpenses" "' ` s an rdinary and necessary expense incurred by the City on
behalf of Impro ~t Area C a ted to the determination of the amount of the levy of Special
Taxes, the collech ~°~"o. Specia~'aaces including the expenses of coltecting delinquencies, the
administration of Bon e p ent of salaries and benefits of any City employee whose duties are
directiy related to the a = ation 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 Taac actually levied in any Fiscal Year on any Assessor's
Parcel.
"Apartment Property" means all Assessor's Pazcels of Residential Property on which one or more
Apartment Units are constructed.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 1
"Apartment Unit" 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 Taacable Property: (i) that aze included in a
Final Map that was recorded prior to the January 1 s~ 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 lst
preceding the Fiscal Yeaz in which the Special Tax is being levied.
"Assessor's Parcel" means a lot or pazcel of land designated on an
assigned Assessor's Parcel Number. ,~
"Assessor's Parcel Map" means an official map of the
by Assessor's Pazcel Number.
"Assessor'sParcelNumber"meansthatnumberas' ' dtoan
purposes of identification.
"Assigned Annual Special Tax" means the Speciai Tas
"Backup Annual Special Tax" means the ~, ~~aac ofthat
"Bonds" means any obligation to repay a sum
notes, certificates ofparticipa,~~~,o~g-term IE
banks, other fmancial
refunding thereof, to ~
"Building Square
exclusive of g "
building per ~ ~ ap~
means the
December 31.
Parcel Map with an
pazcels
described in Section D below.
in Section E below.
°, ~ n~b"tigarions in the form of bonds,
ns from. `' ernment agencies, or loans from
or individ als, or long-term contracts, or any
rovement Area C have been pledged.
Parcei.
footage of assessable internal living space,
; space, as determined by reference to the
January 1 of any year and ending the following
"CFD No. 2003-2" ~i'~~,~ Co "" 'ty 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 Legisiative
Body of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Taxable Property that: (i) are included in a
Final Map that was recorded prior to the January ls` preceding the Fiscal Year in which the Special
Taac is being levied, and (ii) a building permit was issued on or before March 15t preceding the Fiscal
Year in which the Special Tas is being levied.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
within
October 9, 2003
Page 2
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special Taxes
as provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (Califomia 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.
"F~scal Year" means the period commencing on July 1 of any yeaz and
30. .~
"Improvement Area C° means Improvement Area C of
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the ma~cimum S
C, that can be levied by CFD No. 2003-2 within
Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parce sl`~
building permit was issued for any type o - esidential use.
"Partial Prepayment Amount" means the
Special Tax obligation for an Assessor's Parc
the following June
as identified on the
with Section
C in any Y~ear on any
Property for which a
to pr~~ a portion of the Annual
i,Sec ~ on H.
"Prepayment Amount" ,- ans~`~'~~~ount requir ~ to prepay~Y`ie Annual Special Taac obligation in
fixll for an Assessor's P ~as desc~~ed in Sectio
"Proportionately" means tha "_ u pecial Tas levy to the applicable Assigned
Annual Special ~~~ ~tal for a' =lica ~ ~ essor's Parcels. In case of Developed Property
subject to , apporti t of Annual Special Tas under step four of Section F,
"Proport I}~' in step fo ~ eans e~quorient of (a) Annual Special Tax less the Assigned
Annual Speca : divided b tthe B- p Annual Special Taa~ less the Assigned Annual Special
Tax, is equal fo applicable essor s Parcels.
"Provisional Undev d Pro~erty" means all Assessor's Parceis of Taxable Property that would
otherwise be classified '~'-~cempt Property pursuant to the provisions of Section J, but cannot be
classified as Exempt Prop because to do so would reduce the Acreage of all Tasable Properiy
below the required minim~n Acreage set forth in Section J for Zone 1 or Zone 2 as applicable.
"Residential Property" means all Assessor's Pazcels of Developed Properiy for which a building
pernut has been issued for purposes of constructing one or more residential dwelling units.
"Single Family Property" means all Assessor's Pazcels of Residential Property other than
Aparhnent Property.
"Single Family Unit" means a residential dwelling unit other than an Aparhnent Unit.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 3
"Special Tax" means any of the special taxes authorized to be levied within Improvement Area C
by CFD No. 2003-2 pursuant to the Act.
"Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in
such Fiscal Year, (ii) Admnustrative 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 consriuction of facilities authorized by CFD No. 2003-2 pr ided that the inclusion of
such amount does not cause an increase in the levy of Special Tas on j~~~~loped Properiy as set
forth in Step Three of Section F., less (vi) any amounts available to
costs on the Bonds pursuant to any applicable bond indentur
agreement. ,~,~
"Taxable Property" means all Assessor's Parcels
Exempt Property. ,
"Undeveloped Property" means all Assessor's Pu
Developed Property, Approved Property or Provisional
"Zone" means Zone 1 or Zone 2.
"Zone 1" means a specific geographic azea as
"Zone 2" means a
area as aentctea m
service or other periodic
ent agreement, ar trust
which are not
rle Property
Property.
herein.
A attached herein.
'S PARCELS
Each Fi , beginning
Area C shall siened to :
aze not
each Assessor's Parcel within Improvement
and shall be classified as Taxable Properly or Exempt
Property. In ail~ , each As .~ or's Parcel of Taxable Property shall be further classified as
Developed Prope proved `roperty, Undeveloped Property or Provisional Undeveloped
Property. In addition, As • sor's Pazcel of Developed Property shall fiu•ther be classified as
Residential Properiy or esidential Property. Lastly, each Assessor's Parcel of Residential
Property shall further be ssified as a Single Family Property or Apartment Property, and each
Single Family Property shall be assigned to its appropriate Assigned Annual Special Tas rate based
on its Building Square Footage.
If an Assessor's Pazcel ofDeveloped 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 Taac rates for Zone
2.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 4
SECTION C
MAXIMUM SPECIAL TAX
i. Developed Propertv
The Maximum Special Tax for each Assessor's Parcel of Residential Property or Non-
Residential Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tas.
2. A roved Pro er Undevelo ed Pro er and Provisio evelo ed Pro er
The Maa~imum Special Tax for each Assessor's Parce ~ d as Approved Property,
Undeveloped Property, or Provisional Undeveloped Pr rty in > iscal Year shall be the
Assigned Annual Special Tax.
ASSIGNED
1. Develoned Propertv
Each Fiscal Year, each Assessor's Par~ o,~
Non-Residential Property shall be subj e"i~t to
Annual Special Taac applicable to an Ass~ sc
2003-04 shall be dete~stlii~.cl~roursuant t~~a
Apartment Properiy, or
;cial Taac. The Assigned
Properiy for Fiscal Year
~L TAX RATES
' WITHIN ZONE 1
2003-04
~
Use T e ildin S uare Foota e Rate
Sin il Unit
N Lessthan1,175 $1,107 erUnit
Sin le '
~ Unit 1,175-1,324 $1,205 erUmt
Single Fa LJnit 1,325 -1,549 $1,365 per Unit
Sin le Famil 1,550 -1,649 $1,463 er Unit
Single Family it 1,650 -1,~49 $1,561 er Unit
Sin le Famil Unit 1,750 -1,949 $1,617 er Unit
Sin le Famil Unit 1,950 - 2,199 $1,668 er Unit
Sin le Family Unit 2,200 - 2,449 $1,859 er Unit
Single Family Unit 2,450 - 2,699 $1,974 er Unit
Single Famil Unit 2,700 - 2,949 $2,002 er Unit
Single Famil Unit 2,950 or greater $2,146 er Unit
A arhnent Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 5
TABLE Z
ASSIGNED ANNUAL SPECIAL TAX RA
FOR DEVELOPED PROPERTY WITHIN Z
FOR FISCAL YEAR 2003-04 ,~
Land Use T e Buildin S uare Foa~ e Rate
Sin le Famil Unit Less than 1 ~"3 72 er Unit
Sin le Famil Unit 1,175 ~~' 24 '~ ~~ er Unit
Single Family Unit 1,32 .~ 549 $1,1 't
Single Family Unit 1,5~0 - $1,228 nit
Single Family Unit 1,650 -1, '~ $ $1,326 ~er Unit
Single Family Unit ~ 1,750 -1,949 $1,381 er Unit
Sin le Famil Unit 50 - 2,199 $1,451 er Unit
Sin le Famil Unit , ,449 $1,642 er Unit
Single Family Unit 450 ~ $1,756 er Unit
Sin le Family Unit ~„ ~ 0 ,9 `~ $1,785 er Unit
SingleFamilyU:"~~~ '' 2,9 orgreater $1,928 erUnit
A artment , ' '~'° ' /A $600 per Unit
Non-Residenria"~Pi~tv =~ $5.000 ner Acre
2. Aou~~ed Proue
~or' S~~rcel of Approved Property, Undeveloped Property and
~er~y shall be subject to an Assigned Annual Special Taac. The
rate for an Assessor's Pazcel classified as Approved Property,
~visional Undeveloped Property for Fiscal Year 2003-04 shall
1 and $11,493 per Acre for Zone 2.
On each 7uly 1, commencing July 1, 2004, the Assigned Special Taac 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 Yeaz.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 6
SECTION E
BACKUP ANNUAL SPECIAL TAX
At the rime a Final Map is recorded, the Backup Annual Special Ta~c for all Assessor's Parcels of
Developed Property classified or reasonably expected to be classified as a Single Family Property
within such Final Map area shall be determined by (i) sununing the product of (a) the Maximum
Special Talc rate for Undeveloped Property by (b) the total Acreage of Tasable Property of each
Assessor's Parcel in such Final Map area, excluding Acreage classified ovisional Undeveloped
Property and any Acreage reasonably expected to be classified as Exe •, ro riy in such Final Map
area, and (ii) dividing the results in (i) by the total number of Family Units reasonably
expected to be constructed within such Final Map area. The res~efl' ng • ua~tient shall be the Backup
Annual Special Taac for each Assessor's Pazcel of Dev
The Ma~cimum Special Tax rate(s) applied in (i) above
rate for the Zone in which each Assessor's Pazcel is ]
Parcel is located in two Zones, the Malcimum
Maximum Special Tax rates.
The Backup Annual Special Tax for all As.'s~s
Residential Property or Apartment Property s~
Property. The Maacimum Special Tas rate
applicable Undeveloped Property rate of the
Assessor's Parcel is located in t~v4.Zones, the
each Zone shall be r.
the Backup Annual
amounts.
num "'°- ial Tas rate for Undeveloped
the pre ~' g sentence shall be the
}~e Ass " ar's Parcel is located. If an
ed =~: Maacimum Special Taac rate of
sor's Parcel within the applicable Zone and
shall equal the total of the two calculated
If a Final Map i'~ ~essor'~P,~cels o*~~,~~ ped Property which are classified or reasonably
expected to,;<_:~'classifie ~' 'ngle"~ " ily Property and Non-Residential Property or Apariment
Property the Backup al Sp for each Assessor's Parcel which is classified or
reasona ly e ted to be clas d as S. t gle Family Property shall be computed exclusive of the
allocable portio otal Acreage~ #tribu able to Assessor's Parcels classified or reasonably expected
to be classified as .,.~ -Resident~~Property or Aparhnent Property.
Notwithstanding the fore .'= g~if Assessor's Parcels of Developed Property which are classified or
to be classified as either S; le Family Property, Aparhnent Property or Non-Residential Property
are subsequently changed of modified by recordation of a lot line adjustment or similar instrument,
then the Backup Annual Special Tax shall be recalculated to equal the amount of Backup Annual
Special Taac that would have been generated if such change did not take place.
On each July 1, commencing July I, 2004, the Backup Annual Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Yeaz.
City of Lake Elsinore October 9, 2003
Community Facilities District No. 2003-2
Improvement Area C Page 7
s Parcels
in
SECTION F
METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX
Commencing Fiscal Year 2003-04 and for each subsequent Fiscal Yeaz, 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 Pazcel of
Developed Properry at up to 100% of the applicable Assigned Annual Special Tas
rates in Tables 1 and 2 to satisfy the Special Tas Requir ent.
Step Twa If additional moneys aze needed to satisfy the Speci Requirement after the first
step has been completed, the Annual Special T evied Proportionately on
each Assessor's Pazcel of Approved Property at - to 10 4 the Assigned Annual
Special Taac applicable to each such Assess; ' 1 as ne satisfythe Special
Taac Requirement.
The following definitions apply to trris Section G:
"CFD Public Facilities" means $10,300,000 expressed in 2003 dollars, which shall increase by the
Construction Inflation Index on July 1, 2004, and on each July 1 thereafter, or such lower amount (i)
determined by the City Council as sufficient to provide the public facilities under the authorized
bonding program for Improvement Area C, or (ii) determined by the City Council concurrently with
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 8
a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this
Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct public
facilities eligible under Improvement Area C.
"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 alendar year which ends
in the previous Fiscal Year. In the event this index ceases to be publis :-, onstruction Inflation
Index shall be another index as determined by the City that i onably compazable to the
Engineering News-Record Building Cost Index for the city of, ~; s.
"Future Facilities Costs" means the CFD Public Facilitj,e~ii~i~s public fa : costs available to
be funded through existing construction or escrow acc s or funded by the Ou 'ng Bonds, and
minus public facility costs funded by interest earnin - e Cons ction Fund ac ed prior
to the date of prepayment.
"Outstanding Bonds" means all previous ' sued Bonds issu = d secured by the levy of Special
The Prepayment Amount for each applicable Assessor's Pazcel shall be calculated according to the
following formula (capitalized terms defined below):
Taxes which will remain outstanding after t- ' terest and/or •. ipal payment date following
the current Fiscal Yeaz, excluding Bonds to e~e .. -d at a later ith the proceeds of prior
prepayments of Maximum Special Tases.
The Special Tax obligation = or's Parcel Develop roperty, or an Assessor's Parcel of
Approved Property or U' velope ' operty for •'ch a building permit has been issued or is
expected to be issued, 'r an essor' .` arcel ofProv '~al Undeveloped Property maybe prepaid
in full, provided that there are no,"ti~ el :~~ecial T es, penalties, or interest charges outstanding
with respect to six~'h°= sessor's '~ c~l at t~" pecial Tax obligation would be prepaid. The
~--.Fp„-;~.~„ ~
Prepayment ount for~a% sses" . Parcel eligible for prepayment shall be determined as
describe w.
An owner of sessor's P intending to prepay the Annual Special Tas obligation shall
provide the City ritten not ~ of intent to prepay, and within 5 days of receipt of such notice,
the City shall notify s`. wner, the amount of the non-refundable deposit determined to cover the
cost to be incuned by ,~, o`ment Area C in calculating the proper amount of a prepayment.
Within 15 days of receipt~ ' such non-refundable deposit, the City shall notify such owner of the
Prepayment Amount of such Assessor's Parcel.
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Cost
City of Lake Elsinore
Community Facilities District No. 2003-2
Ixnprovement Area C
October 9, 2003
Page 9
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 Pazcel 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 Pro Y~ ,, compute the Assigned
Annual Special Tas as though is was alrea- es ated as Developed
Property based upon the building permit is r expected to be issued for
that Assessor's Parcel. For an Assessor's- rce rovisional Undeveloped
Property compute the Assigned ua ~Specia for that Assessor's
Parcel.
2. For each Assessor's Parce evelop~ Property, Ap ~Property,
Undeveloped Properiy or Provisica U ped Prope be prepaid,
divide the Assigned Annual Specia omputed pursuant to pazagraph 1
for such Assessor's - cel by the s _ e estimated Assigned Annual
Special Taac applica : 11 Assessor' ''.ceis of Taxable Property at
buildout, as reasonabl ,~ e d by the Ci :
3. Multipl quotient co t urs t aragraph 2 by the Outstandirig
Bon ~~luct shall b e`Bond ~ demption 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 reinvestment
of the Bond Redemption Amount plus the Redemption Premium until the
eazliest cali date for the Outstanding Bonds.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 10
9. Subtract the amount computed pursuant to paragraph 8 from the amount
computed pursuant to paragraph 7. This difference is the "Defeasance Cost."
10. Estimate the administrative fees and expenses associated with the
prepayment, including the costs of computation of the Prepayment Amount,
the costs of redeeming Bonds, and the costs of recording any notices to
evidence the prepayment and the redemption. This amount is the
"Administrative Fee."
11. Calculate the "Reserve Fund Credit" as th sse f: (a) the expected
reduction in the applicable reserve require - if any, associated with the
redemption of Outstanding Bonds as a, It prepayment, or (b) the
amount derived by subtracting the n erve re ~ ements in effect after
the redemption of Outstanding Boa, r sult of ayment from the
balance in the applicable rve funds on the ayment date.
Notwithstanding the foregoi .,, e rese fund requirem ' atisfied by
a surety bond or other insttume the •~.•'e,~of the prepa ~ ent, then no
Reserve Fund Credit shall be give twithstanding the' foregoing, the
Reserve Fund Credit~.shall in no event s than 0.
With respect to ial Taac obl tion t~iat is prepaid pursuant to this Section G, the City Council
shall indicate in th • q~ords of rovement Area C that there has been a prepayment ofthe Special
Taac obligation and s ause uitable notice to be recorded in compliance with the Act within
thirty (30) days of rec ~ uch prepayment to indicate the prepayment of the Special Tax
obligation and the release q; *the Special Taac lien on such Assessor's Parcel, and the obligation of
such Assessor's Parcel to pay such Special Taaces shall cease.
Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Taac that
may be levied on Tasable Property, net of Administrative Expenses, shall be at least 11 times the
regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in
each future Fiscal Year.
City of Lake Elsinore
Community Facilities Dishict No. 2003-2
Improvement Area C
October 9, 2003
Page 11
SECTION H
PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX
The Special Taac obligation of an Assessor's Parcel ofDeveloped Properiy, 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 aze no delinquent Special
Taxes, penalties, or interest chazges outstanding with respect to such Assessor's Parcel at the time
the Special Tas obligation would be prepaid. ~
The Partial Prepayment Amount shall be calculated according to
PP=P~xF
The terms above haue the following me n;
PP = the Partial Prepayment Amount.
P~ = the Prepayment Amount calculate
F= the percent by whic the owner of the
the Special Tax obli
With respect to any Assessor's Parcel that is p iall~
records of CFD No. 2003-2 that there has been a
and shall cause a suitable noti ~;~~`~i recorded in ¢ t
receipt of such partial prep , ent Special T
the Special Tax obliga~ " the p 1 release of t
and the obligation of such i~.s~~r' ' arcei to pay
cease. _ _
the
formula:
Section G.~
Parcel ispartiallyprepaying
shall indicate in the
'~of the Special Tax obligation
~ he Act within thirty (30) days of
to indicate the partial prepayment of
Tax lien on such Assessor's Parcel,
ud portion of the Special Tax shall
Notwrthst ng the fore~ no p" repayment will be allowed unless the amount of Special
Tax tha e levied on ~~~' ~ le Pr fter such partial prepayment, net of Administrative
Expenses, sh ': at least l.l t s the r larly scheduled annuai interest and principal payments
on all currentlv -. andinQ Bo ~ in each future Fiscai Year.
SECTION I
ION OF SPECIAL TAX
For each Fiscal Year that any Bonds aze outstanding the Annual Special Tax shall be levied on all
Assessor's Pazcels subject to the Annual Special Taac. If any delinquent Annual Special Taaces
remain uncollected prior to or after all Bonds are retired, the Annual Special Taac may be levied to
the extent necessary to reimburse Improvement Area C for uncollected Annual Special Tases
associated with the levy of such Annual Special Taxes, but not later than the 2045-46 Fiscal Year.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 12
SECTION J
EXEMPTIONS
The City shall classify as Exempt Property (i) Assessor's Parceis which are owned by, irrevocably
offered for dedication, encumbered by or restricted in use by the State of California, Federal or other
local governments, including school districts, (ii) Assessor's Parcels which are used as places of
worship and are exempt from ad valorem property taxes because they are owned by a religious
organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication,
encumbered by or restricted in use by a homeowners' association, (iv) As sor's Pazcels with public
or utility easements making impractical their utilization for other th e oses set forth in the
easement, (v) Assessor's Parcels which are privately owned and cumbered by or restricted
solely for public uses, or (vi) other types of public uses dete City Council, provided
that no such classification would reduce the sum of all Taaca 1~rope ~ ss than 5.4 Acres for
Zone 1 and 58.2 Acres for Zone 2. ~ __
Notwithstanding the above, the City Council shal classify~~u Assessor's ` s Exempt
Property if such classification would reduce the sum o aacab ~ roperty to less an 5.4 Acres
for Zone 1 and 58.2 Acres for Zone 2. Assessor's Parcel ' c~ot be class' ed as Exempt
Property because such classification woul reduce the Acrea • all Taacable Properry to less than
5.4 Acres for Zone 1 and 58.2 Acres for ` 2 will be clae as Provisional Undeveloped
Properiy, and will be subject to Special Tax t to Step Fi : eetion F.
~ ~
~; ~ . ; ~~~ SECT K ~ ~~~~%
.~ ~ ~ APPE~
Any property owner claimm . Erat th ount or appl~,~afion of the Special Tax is not correct may
file a written nof e: eal c~Y~, e ` '."ot later than twelve months after having paid
the first instal ~cial'T~~` at is dis f'ed. A representative(s) of Improyement Area C
shall pro review the p;y-, 1, an ecessary, meet with the property owner, consider written
and or ~ ce regarding amo f the Special T~, and rule on the appeal. If the
representativ cision requ~res~that t u Special Ta~c for an Assessor's Pazcel be modified or
changed in favo ~"' e properiy er, a cash refund shall not be made (except for the last year of
levy), but an ad~ust ="- • shall b ade to the Annual Special Tax on that Assessor's Parcel in the
subsequ
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 taaces, provided, however, that Improvement Area C may collect Annual Special
Taaces at a different time or in a different manner if necessary to meet its financial obligations.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area C
October 9, 2003
Page 13
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-2
OF THE CITY OF LAKE ELSINORE
(CANYON ffiLLS)
(IMPROVEMENT AREA D)
The following sets forth the Rate and Method of Apportionment , e
Special Tases in Improvement Area D of the City of Lake Elsinor ~ ity")
District No. 2003-2 (Canyon Hills) ("CFD No. 2003-2"). An al ~'al
and collected in CFD No. 2003-2 each Fiscal Yeaz, in an amo etermin
of the Rate and Method of Apportionment described ' o _ P.11 of th
Iinprovement Area D, unless exempted by law ar by
purposes, to the extent, and in the manner herein pr~a~~",
hereof,
A
The terms hereinafter set forth have the
"Acre or Acreage" means
Map, or if the land area i
applicable Final Map, qi ` '
be calculated by the City Et
"Act" means
Part 1 of D,i~ ion 2
behalf of Impro
Taaces, the collecho~
administration ofBor
directly related to the
to carry out the autho
Act of 1982, as amended, being Chapter 2.5,
Code of the State of California.
nses" ` s an}~rdinary and necessary expense incurred by the City on
Area D ted to the determination of the amount of the levy of Special
f Specia axes including the expenses of collecting delinquencies, the
~ e pa ent of salaries and benefits of any City employee whose duties aze
ation of Improvement Area D, and costs otherwise incurred in order
ed urposes of CFD No. 2003-2 relating to Improvement Area D.
"Annual Special Tax° means the Special Taz actually levied in any Fiscal Year on any Assessor's
Parcel.
"Apartment Property" means all Assessor's Parcels of Residential Property on which one or more
Apartment Units aze constructed.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
ery and collection of
Community Facilities
Tax shall be levied on
~ough the application
~,~roperty within
s e ta~ced for the
~ of an A'- or's Parc°~`~s shown on an Assessor's Parcel
the Asses~~ 's Parcel ap, the land area as shown on the
s not shown ' tY~,e applicable Final Map, the land area shall
October 9, 2003
Page 1
"Apartment Unit" means a dwelling unit within a building comprised of attached residential units
available for rental by the general public, not for sale to an end user, and under common
management.
"Approved Property" means all Assessor's Pazcels of Ta~cable Property: (i) that are included in a
Final Map that was recorded prior to the January ls` 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 Mazch ls`
preceding the Fiscal Year in which the Special Taac is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an
assigned Assessor's Parcel Number. ~
"Assessor's Parcel Map" means an official map of the Asse
by Assessor's Parcel Number. ~
"Assessor's Parcel Number" means that number as' d to
purposes of identification.
"Assigned Annual Speciat Tax" means the Special Tas of
"Backup Annual Special Tax" means the x of th,
"Bonds" means any obligation to repay a sum
notes, certificates of panc~ipa~,o~~i,ig-term le
banks, other financial i
refunding thereof, to v~
"Buildiug Square Footage"
exclusive of~g ~es~'~o~"~ , er
building peA _ apphcati . 1
December 31.
means the
"CFD No. 2003-2"
the Act.
within
January 1 of any year and ending the following
Facilities District No. 2003-2 established by the City under
"City Council" means ttie City Councii of the City of Lake Elsinore, acting as the Legislative
Body of CFD No. 2003-2, or its designee.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels of Taxable Property that: (i) aze included in a
Final Map that was recorded prior to the January ls` preceding the Fiscal Year in which the Special
Taac is being levied, and (ii) a building permit was issued on or before March l st preceding the Fiscal
Year in which the Special Tax is being levied.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
Parcel Map with an
for
described in Section D below.
in Section E below.
~~n~id~ l~igations in the form ofbonds,
ans from~4 ernment agencies, or loans from
or indivi~als, or long-term contracts, or any
rovement Area D have been pledged.
footage of assessable intemal living space,
; space, as determined by reference to the
s Pazcel.
October 9. 2003
Page 2
"Exempt Property" means all Assessor's Pazcels designated as being exempt from Special Taxes
as provided for in Section J.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line
adjustment, pursuant to the Subdivision Map Act (California Government Code Secrion 66410 et
seq.) or recordation of a condominiuxn plan pursuant to California Civil Code 1352 that creates
individual lots for which building pernuts may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 of any year and
30. ~
"Improvement Area D" means Improvement Area D of
boundary map for CFD No. 2003-2.
"Maximum Special Tax" means the maximum S
C, that can be levied by CFD No. 2003-2 within
Assessor's Parcel.
"Non-Residential Property" means all Assessor's Parce~
building pernut was issued for any type oF~Qn~residential use.
"Partial Prepayment Amount" means the
Special Tax obligation for an Assessor's Par<
the following June
as identified on the
D in any
Section
on any
Property for which a
to pr~y a portion of the Annuai
i,Sec onH.
"Prepayment Amount" `~~`fh'`~ ~~ount requir ~ to prepay~"ie Annual Special Tax obligation in
full for an Assessor's P" ~-,as desc~~d in Sectio
"Proportionately" means th ~ o„~,~~theL u. pecial Tax levy to the applicable Assigned
Annual Specia 1 for ~ lica~~l ssor's Parcels. In case of Developed Property
subject to t"e. apportiom~ t of Annual Special Taac under step four of Section F,
"Proport~' :~ 1}~' in step fo ans uotient of (a) Annual Special Tax less the Assigned
Annual Spec"~i divided b the Ba <- p Annual Special Taac less the Assigned Annual Special
Tax, is equal fo applicable ,' essor's Parcels.
"Provisional Undev d Prop~rty" means all Assessor's Parcels ofTasable Properiythat would
otherwise be classified pt Property pursuant to the provisions of Section J, but cannot be
classified as Exempt Prop because to do so would reduce the Acreage of all Taacable Property
below the required minimum Acreage set forth in Section J for Zone 1, Zone 2 or Zone 3 as
applicable.
"Residential Property" means all Assessor's Parcels of Developed Property for which a building
pernut has been issued for puxposes of constructing one or more residential dwelling units.
"Single Family Property" means all Assessor's Parcels of Residential Property other than
Aparhnent Property.
"Single Family Unit" means a residential dwelling unit other than an Apartment Unit.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 3
"Special Tax" means any of the special taxes authorized to be levied within Ixnprovement Area D
by CFD No. 2003-2 pursuant to the Act.
"Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt
seroice or the periodic costs on all outstanding Bonds due in the Calendaz 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 acc ulation of funds for the
acquisition or conshuction of facilities authorized by CFD No. 2003-2 d that the inclusion of
such amount does not cause an increase in the lery of Special Tax .. ndeveloped Property as set
forth in Step Three of Section F., less (vi) any amounts available a t service or other periodic
costs on the Bonds pursuant to any applicable bond inden ~~fisca t ageement, or trust
agreement.
"Taxable Property" means all Assessor's
Exempt Property.
"Undeveloped Property" means all ~
Developed Property, Approved Properiy
aze not
Parcels a~cable Property which aze not
nal Undeve ~ ~d Property.
"Zone" means Zone 1, Zone 2 or Zone 3.
"Zone 1" means a specific g ~,iic azea as
"Zoue 2" means a spec~~eograpl~~area as
"Zone 3" means a
in Ex"~b~fA attached herein.
in Exhibit A attached herein.
in Exhibit A attached herein.
~TION B
,
OF ASSESSOR'S PARCELS
Each Fiscal Yeaz, ~ 'ng with~iscal Year 2003-04, each Assessor's Pazcel within Improvement
Area D shall be assi Zo , Zone 2 or Zone 3 and shall be classified as Taacable Property or
Exempt Property. In ad ;~,: ach Assessor's Parcel of Taxable Property shall be further classified
as Developed Properiy, ~ roved Property, Undeveloped Property or Provisional Undeveloped
Property. In addition, eac Assessor's Parcel of Developed Property shall fiarther be classified as
Residential Property or Non-Residential Property. Lastly, each Assessor's Pazcel of Residential
Property shall fiuther 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.
City of Lake Elsinore October 9, 2003
Community Facilities District No. 2003-2
Tmprovement Area b Page 4
SECTION C
MAXIMUM SPECIAL TAX
1. Develoaed Prouertv
The Maximum Special Taac for each Assessor's Parcel of Residential Properiy or Non-
Residential Property that is classified as Developed Property in any Fiscal Year shall be the
greater of (i) the Assigned Annual Special Tax or (ii) the Backup Annual Special Tax.
2. Approved PropertV, Undeveloaed Propertv and Provision~n~'developed Propertv
The Masimum Special Tax for each Assessor's Parce as Approved Property,
Undeveloped Property, or Provisional Undeveloped Pr ; rty in : iscal Year shall be the
Assigned Annual Special Tax. ~~~~
ASSIGNED ANNUAL
1. Developed Propertv
Each Fiscal Year, each Assessor's Parc~
Non-Residenrial Property shall be subjec
Annual Special Ta~c =;"Q ~ e to an Asse
2003-04 shall be c~ rmin ~ uant to
TABLE
1
[ty, Apartment Properiy, or
Special Tas. The Assigned
~ed Properiy for Fiscal Year
CIAL TAX RATES
~~IIN ZONE 1,ZONE 2 AND ZONE 3
YEAR 2003-04
L se T e ~ =~uildin S uare Foota e Rate
Sin le ' Unit ` I,ess than 1,175 $1,120 er Unit
Single F nit 1,175 - 1,324 $1,223 er Unit
Single Famil ~' 1,325 -1,449 $1,428 per Unit
Sin le Famil '~ t 1,450 -1,549 $1,473 er Unit
Single Family iJnit 1,550 -1,649 $1,517 er Unit
Single Family Unit 1,650 - 1,749 $1,562 er Unit
Sin le Family Unit 1,750 -1,949 $1,606 er Unit
Sin le Family Unit 1,950 - 2,199 $1,651 er Unit
Sin le Family Unit 2,200 - 2,449 $1,856 er Unit
Sin le Famil Unit 2,450 - 2,699 $1,959 er Unit
Single Famil Unit 2,700 - 2,949 $2,019 er Unit
Sin le Family Unit 2,950 - 3,299 $2,173 er Unit
Single Famil Unit 3,300 - 3,649 $3,219 er Unit
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 5
Single Family Unit 3,650 or greater $3,733 er Unit
A artment Unit N/A $600 per Unit
Non-Residential Property N/A $5,000 per Acre
2.
3.
At the time a Final Ma~
Developed Property clas:
within such Fin ° a
Special Tax . or ~ ~
Assessor's~P~rcel in such
area, and (ii) ~' .' g the r~
expected to be co cted w
Annual Special T~ - ch
The Mu~imum Special ~
rate for the Zone in which ~
Pazcel is located in two Z e
Maximum Special Tax rates.
The Backup Annual Special Taac for all Assessor's Pazcels ofDeveloped Propertyclassified as Non-
Residential Property ar Aparhnent Property shall be the Masimum Special Taac rate for Undeveloped
Property. The Maxunum Special Tax rate(s) applied in the preceding sentence shall be the
applicable Undeveloped Property rate of the Zone in which the Assessor's Pazcel is located. If an
Assessor's Parcel is located in two Zones, the Undeveloped Property Maacimum Special Taac rate of
each Zone shall be multiplied by the Acreage of the Assessor's Pazcel within the applicable Zone and
Ciry of Lake Elsinore
Community Faciliries District No. 2003-2
Improvement Area D
Approved Proaertv, Undevelooed Proaertv and Provisional Undeveloaed Proaertv
Each Fiscal Year, each Assessor's Pazcel of Approved Property, Undeveloped Property and
Provisional Undeveloped Property shall be subject to an Assigne .; ual Special Taac. The
Assigned Annual Special Ta1c rate for an Assessor's Parcel cl .~ Approved Property,
Undeveloped Property and Provisional Undeveloped Prop r Fiscal Year 2003-04 shall
be $14,068 per Acre for Zone l, $6,907 per Acre for Zo an 1,467 per Acre for Zone
3.
On each July 1, commencing July 1, 2004; the~
Property, Approved Property, Undeveloped Prop
shall be increased by two percent (~ 00%) of the
Taac rate~ Developed
~visional Unde~"eloped Property
effect in the prior Fiscal Year.
Backup Ann~ual pecial Taac for all Assessor's Parcels of
„~ • e, expectedd~„~be classified as a Single Family Property
ia "= de e~ qr~"• ~ i) sumining the product of (a) the Maximum
~ped .~. erty by the total Acreage of Taxable Property of each
ap ar xc, ding Acreage classified as Provisional Undeveloped
bly expec ed to be classified as Exempt Properiy in such Final Map
u' 'n (i)~y the total number of Single Family Units reasonably
hi uch Final Map azea. The resulting quotient shall be the Backup
s sor's Parcel of Developed Property within such Final Map area.
y's) applied in (i) above shall be the applicable Undeveloped Property
h Assessor's Parcel is located; provided, however, if an Assessor's
the Maximum Special Ta~c rate applied shall be the lower of the two
October 9, 2003
Page 6
the Backup Annual Special Ta~c of the Assessors Parcel shall equal the total of the two calculated
amounts.
If a Final Map includes Assessor's Parcels ofDeveloped Properiy which are classified or reasonably
expected to be classified as Single Family Property and Non-Residential Property or Apartment
Properiy, then the Backup Annual Special Tas far each Assessor's Parcel which is classified or
reasonably expected to be classified as Single Family Property shall be computed exclusive of the
allocable portion of total Acreage attributable to Assessor's Parcels classified or reasonably expected
to be classified as Non-Residential Property or Aparhnent Property.
Notwithstanding the faregoing, if Assessor's Parcels of Dev
to be classified as either Single Family Property, Aparimen
aze subsequently changed of modified by recordation of a lo
then the Backup Annual Special Tax shall be recalculat .
Special Taac that would have been generated if such c, ~e
On each July 1, commencing July 1, 2004, the Backup Ai
two percent (2.00%) of the amount in effect in the prior
METHOD OF
elope 'k . erty which are classified or
t P ~ rty on-Residential Properiy
in djustm r similar inshument,
a the amo > f Backup Annual
did not take nlace.
rate shall~increased by
SPECIAL TAX
Commencing Fiscal Year 2;: Y~- ~= for each su~equent Fis Year, the City Council shall levy
Annual Special Talces o : Taacab , u operty in ac~"~rdance with the following steps:
Step One: The Annual x. al ~ 1.be levied,r~r Portionately on each Assessor's Parcel of
D. -~' • Prop =s t up o~, ~?'~~~the applicable Assigned Annual Special Tax
~tes in to s s, the Special Tax Requirement.
~
Step T. additional m. s are ne. ed to satisfy the Special Taac Requirement after the first
has been co eted, e Annual Special Ta~c shall be levied Proportionately on
ea ssessor's cel of Approved Property at up to 100% of the Assigned Annual
Spec , appl' -able to each such Assessor's Parcel as needed to satisfy the Special
Tax Re ~~~~~~me: _
Step Three: If additiona'~moneys aze needed to satisfy the Special Tas Requirement after the first
two steps have been completed, the Annual Special TaY shall be levied
Proportionately on each Assessor's Pazcel of Undeveloped Properiy up to 100% of
the Assigned Annual Special Tax applicable to each such Assessor's Pazcel as
needed to satisfy the Special Tas Requirement.
Step Four: If additional moneys are needed to satisfy the Special TaY Requirement after the first
three steps have been completed, then the Annual Special Tax on each Assessor's
Parcel of Developed Property whose Maacimum Special Tas is the Backup Annual
Special Tas shall be increased Proportionately from the Assigned Annual Special
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 7
Tax up to 100% of the Backup Annual Special Talc 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 Taac shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to
100% of the Assigned Annual Special Taac applicable to each such Assessor's Parcel
as needed to satisfy the Special Tas Requirement.
SECTION G
PREPAYMENT OF ANNUAL
The following definitions apply to this Section G:
"CFD Public Facilities" means $19,200,000 expresse :
Consiruction Inflation Index on July l, 2004, and on each
determined by the City Council as
bonding program for Improvement Area D,
a covenant that it will not issue any more B
Rate and Method of Apportionxnent.
"Construction Fund"
equivalent to hold fund;
facilities eligible unde~
"Construction
in the pred s Fiscal Y
Index s nothec
Engineering , ea
"F~ture Facilities ~
be funded through ex
minus public facility
to the date of nrenav
to provide the
which shal~ rease by the
;a~er, or such l~wer amount (i)
facilities under the authorized
~ty Council concurrently with
,~ „c~l Taaies levied under this
/ identifi~'in the Indenture or functionally
for expenditure to acquire or conshuct public
D.
~~ ercentage change in the Engineering News-
~n eles, measured as of the calendar year which ends
lex ceases to be published, the Construction Inflation
by the City that is reasonably comparable to the
c for the city of I,os Angeles.
€~he CFD Public Facilities minus public facility costs available to
zction or escrow accounts or funded by the Outstanding Bonds, and
by interest earnings on the Construction Fund actually earned prior
"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 ofDeveloped Properiy, or an Assessor's Pazcel of
Approved Properiy or Undeveloped Properiy for which a building pernut has been issued or is
expected to be issued, or an Assessor's Parcel ofProvisional Undeveloped Property maybe prepaid
City of Lake Elsinore October 9, 2003
Community Facilities District No. 2003-2
Improvement Area D Page 8
in fixll,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 deternuned as
described below.
An owner of an Assessor's Pazcel intending to prepay the Annual Special Tax obligation shall
provide the City with written notice of intent to prepay, and within 5 days of receipt of such notice,
the City shall notify such owner of the amount of the non-refundable deposit determined to cover the
cost to be incurred by Improvement Area D in calcularing the proper~~nount of a prepayment.
Within 15 days of receipt of such non-refizndable deposit, the City
Prepayment Amount of such Assessor's Parcel. ~
The Prepayment Amount far each applicable Assessor's Par el sli,~all be
following formula (capitalized terms defined below):
plus
plus
plus
plus
less
equals
As of the date of
1.
Bond Redemption A~'~
Redemption Premium
Future Facilities Amount
Defeasance ~~,st
Prepayment
shall
such owner of the
according to the
as follows:
~'or tlssess~o~n~'s Pazcel of ~„e~eloped Property, compute the Assigned
Annua~~ '~e~a7~~~~p~ic~a~e,~~the Assessor's Pazcel. For an Assessor's
el of A~p~rove Piflpe~t,~or Undeveloped Property, compute the Assigned
Spe °~' ax as though is was already designated as Developed
Prope a ased = n t~e building permit issued or expected to be issued far
that As r's P• . For an Assessor's Parcel of Provisional Undeveloped
Property ~,~nput the Assigned Annual Special Tas for that Assessor's
2. Assessor's Parcel of Developed Property, Approved Property,
Un ry eloped 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 Pazcels of Tasable Property at
buildout, as reasonably determined by the City.
3. Mulriply the quotient computed pursuant to paragraph 2 by the Outstanding
Bonds. The product shall be the "Bond Redemption AmounY'.
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 9
4. Multiply the Bond Redemption Amount by the applicable redemprion
premiuxn, 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
deternuned pursuant to paragraph 5. to deternvne e Future Facilities Cost to
be prepaid (the "Future Facilities AmounY'). "v
7. Compute the amount needed to pay inter n t nd Redemption Amount
to be redeemed with the proceeds of aymen : ount until the earliest
call date for the Outstanding Bon -.
8. Estimate the amount of intere s- 'ngs to e derived from vestment
of the Bond Redemption Amo s t ' demption Pre um until the
earliest call date for the Outstandin ' s.
te th eserve Fund Credit" as the lesser of: (a) the expected
reduc o'n the i' xble reserve requirements, if any, associated with the
redemp of Ou ding Bonds as a result of the prepayment, ar(b) the
amount -:. ved 6 subtracting the new reserve requirements in eFfect after
~the redem on of Outstanding Bonds as a result of the prepayment from the
'~alance -~ the applicable reserve funds on the prepayment date.
~ standing the foregoing, if the reserve fund requirement is satisfied by
a s y bond or other instrument at the time of the prepayment, then no
Re erve 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 Redemption
Amount, the Redemption Premium, the Future Facilities Amount, the
Defeasance, and the Administrative Fee, less the Reserve Fund Credit.
13. From the Prepayment Amount, the amounts computed pursuant to pazagraphs
3, 4, 9, and 11 shall be deposited into the appropriate fund as established
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 10
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
parag~aph 10 shall be retained by Improvement Area D.
With respect to Special Tax obligation that is prepaid pursuant to this Section G, the City Council
shall indicate in the records of Improvement Area D that there has been a prepayment of the Special
Tax obligation and shall cause a suitable notice to be recarded in compliance with the Act within
thirty (30) days of receipt of such prepayment to indicate the prepa, - ent of the Special Tax
obligation and the release of the Special Taac lien on such Assessor's ~'ce ; and the obligation of
such Assessor's Parcel to pay such Special Taxes shall cease.
Notwithstanding the foregoing, no prepayment will be
may be levied on Taxable Properiy, net of Administr~
regularly scheduled annual interest and principal pay
each future Fiscal Year. ~
d u~ss the t of Special Ta~c that
~"~s s, shall east 1.1 times the
on all currently O~"#~iding Bonds in
PARTIAL PREPA
H
TAX
The Special Tax obligation of r sessar's Parcel~o~f;]~evelop ` periy, or an Assessor's Parcel of
Approved Property or Un `'eI' - roperty for ' hich a bu'>> ing permit has been issued or is
expected to be issued, or °~Assess Parcel of P isional Undeveloped Property, as calculated
in this Section H. below, • e p ~ lly prepaid, p o~ed that there are no delinquent Special
Tases, penalties, or interest c ~' din withsrespect to such Assessor's Parcel at the time
the Special Tax~l~,~'~`,~sa ,woul ~repaz :
The Parti~~Payment g~'G shall"f3 lated according to the follorving formula:
=PGxF
The t=~ above,~iave the following meanings:
PP = the~tial Prepayment Amount.
PG = the repayment Amount calculated according to Section G.
F= the percent by which the owner of the Assessor's Parcel is partiallyprepaying
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 Taac 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 Taac obligation, to indicate the partial prepayment of
the Special Taac obligation and the partial release of the Special Tax lien on such Assessor's Pazcel,
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 11
and the obligation of such Assessor's Pazcel to pay such prepaid portion of the Special Ta~c shall
cease.
Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special
Tax that may be levied on Taxable Properiy 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 SP]
For each Fiscal Yeaz that any Bonds are outstanding the u Special T ~ 1 be levied on all
Assessor's Parcels subject to the Annual Special T If any delinquent pecial Taaces
remain uncollected prior to ar after all Bonds are r e 1 Special T~ e levied to
the extent necessary to reimburse Improvement Area ~cted Annua pecial Talces
associated with the levy of such Annual Special Tases, but ter than the 2046-47 Fiscal Year.
The City shall classify mpt Pr'a`,} erty (i) Asse~'s Parcels which are owned by, inevocably
offered for dedication, enc ,, ed b r restricted in ~y the State of California, Federal or other
local govemments, including z _~~ t~, 'i ~'ssor's Parceis which are used as places of
worship and ar~,„,` .•. . m a calorem pro - ta7ces because they are owned by a religious
arganizatio~~iii) Asse ,~~azce , hich aze owned by, irrevocably offered for dedication,
encumbe ; or restricted in~r~se by a s ~~vners' association, (iv) Assessor's Parcels withpublic
or utility eas ts making ' ticai tr utilization for other than the purposes set forth in the
easement, (v) sor's Parcel hich aze privately owned and aze encumbered by or restricted
solely for public u or (vi) ot types of public uses determined by the City Council, provided
that no such classifica woul educe the sum of all Taxable Property to less than 60.8 Acres for
Zone 1, 40.1 Acres for d 5.2 Acres for Zone 3.
Notwithstanding the aboS'e, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Properiy to less than 60.8 Acres
for Zone 1, 401 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 Taacable
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 Properly, and wili be subj ect to Special Tases pursuant to Step
Five in Section F.
SECTION K
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
October 9, 2003
Page 12
APPEALS
Any property owner claiming that the amount or application of the Special Tax is not conect may
file a written notice of appeal with the City Council not later than twelve months after having paid
the first installment of the Special Tax that is disputed. A representative(s) of Improvement Area D
shall promptly review the appeal, and if necessary, meet with the property owner, consider written
and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the
representative's decision requires that the Special Taac for an Assessor's Parcel be modified or
changed in favor of the property owner, a cash refund shall not be made~e ccept for the last year of
lery), but an adjustment shall be made to the Annual Special Tax on t~"`~f°`.4~sessor's Parcel in the
subsequent Fiscal Year(s).
SECTION L
MANNER OF
The Annual Special Tas shall be collected in the
valorem property taxes, provided, however, that
Tases at a different time or in a different manne~
City of Lake Elsinore
Community Facilities District No. 2003-2
Improvement Area D
the same time ordinary ad
~nay collect ual Special
its financial obligations.
October 9, 2003
Page 13
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
14th day of October, 2003, and that it was so adopted by the following vote:
AYES: COUNCILMEMBERS:
BUCKLEY, HICKMAN, KELLEY,
SCHIFFNER, BRINLEY
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AIN: COUNCILMEMBERS:
~~.C~.~,~~'.~.~.~,
VICKI KASAD, CMC, CITY CLERK/
HUMAN RESOURCES DIRECTOR
CITY OF LAKE ELSINORE
(SEAL)
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS:
CITY OF LAKE ELSINORE)
NONE
NONE
NONE
I, VICHI KASAD, CITY CLERK OF THE CITY OF LAKE ELSINORE,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. 2003-50 of said Council, and that the same has not been amended or
repealed.
DAT : October 15, 2003
~ ~
C~i:I KASADI~ C, CITY CLERK/
HUMAN RESOURCES DIRECTOR
CITY OF LAKE ELSINORE
(SEAL)