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HomeMy WebLinkAbout19-01 TPFA Resolution RESOLUTION NO. TPFA 19-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF FORMATION OF TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 19-01 (MUNICIPAL SERVICES), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT, PRELIMINARILY ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT, SUBMITTING LEVY OF THE SPECIAL TAX AND THE ESTABLISHMENT OF THE APPROPRIATIONS LIMIT TO THE QUALIFIED ELECTORS OF THE DISTRICT, AND PROVIDING FOR THE FUTURE ANNEXATION OF TERRITORY TO THE DISTRICT THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. On November 13, 2018, this Board of Directors adopted a resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Acknowledging Receipt of a Deposit Relative to the Formation of a Community Facilities District, and Declaring Its Intention to Establish the Community Facilities District and to Authorize the Levy of Special Taxes Therein—Municipal Services"(the "Resolution of Intention") stating its intention to form the Temecula Public Financing Authority Community Facilities District No. 19-01 (Municipal Services) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"). Section 2. The Resolution of Intention, incorporating by reference a map of the proposed boundaries of the District, a description of the municipal services and related administrative expenses eligible to be funded by the District (the "Services"), and the rate and method of apportionment of the special tax to be levied within the District to pay the costs of the Services is on file with the Secretary and the provisions thereof are incorporated herein by this reference as if fully set forth herein. Section 3. On this date, this Board of Directors held the public hearing as required by the Law and the Resolution of Intention relative to the proposed formation of the District. Section 4. At the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District, the Services and the levy of the special tax were heard and a full and fair hearing was held. Section 5. At the hearing evidence was presented to this Board of Directors on the matters before it, including a report by the Director of Public Works of the City of Temecula (the "Report") as to the Services and the costs thereof, a copy of which is on TPFA Resos 19-01 1 file with the Secretary, and this Board of Directors at the conclusion of the hearing was fully advised regarding the District. Section 6. Written protests with respect to the formation of the District and/or the furnishing of the Services as described in the Report have not been filed with the Secretary by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax. Section 7. The special tax proposed to be levied in the District to finance the Services, as set forth in Exhibit B to the Resolution of Intention, has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District or the owners of one-half (1/2) or more of the area of land within the District and not exempt from the special tax. Section 8. On April 10, 2001, this Board of Directors adopted a resolution approving Local Goals and Policies for Community Facilities Districts, and this Board of Directors hereby finds and determines that the District is in conformity with said goals and policies. Section 9. All prior proceedings taken by this Board of Directors in connection with the establishment of the District and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Law. Section 10. The community facilities district designated "Temecula Public Financing Authority Community Facilities District No. 19-01 (Municipal Services)" is hereby established pursuant to the Law. Section 11. The boundaries of the District, as described in the Resolution of Intention and set forth in the boundary map of the District recorded on November 28, 2018 at 2:19 p.m. in the Riverside County Recorder's Office in Book 83 of Maps of Assessment and Community Facilities Districts at Page 34(instrument no. 2018-0464323), are hereby approved, are incorporated herein by this reference and shall be the boundaries of the District. Section 12. The Services are as described in Exhibit A to the Resolution of Intention which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the Services are necessary to meet increased demands placed upon local agencies as the result of development occurring in the District. Section 13. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the District, will be levied within the District and collected in the same manner as ordinary ad valorem property taxes or in such other manner as this Board of Directors shall determine, including direct billing of the affected property owners. The proposed rate and method of TPFA Resos 19-01 2 apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such owner will have to pay, are described in Exhibit B to the Resolution of Intention which Exhibit is by this reference incorporated herein. This Board of Directors hereby finds that the basis for the levy and apportionment of the special tax, as set forth in the Rate and Method, is reasonable. Section 14. The Treasurer of the Temecula Public Financing Authority, 41000 Main Street, Temecula, CA 92590, telephone number (951) 693-3945, is the officer of the Authority that will be responsible for preparing annually and whenever otherwise necessary a current roll of special tax levy obligations by assessor's parcel number and which will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Law. Section 15. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the lien is canceled in accordance with law or until collection of the tax by the Authority ceases. Section 16. In accordance with Section 53325.7 of the Law, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, of the District is hereby preliminarily established in the initial amount of $5,000,000 and said appropriations limit shall be submitted to the qualified electors of the District as provided below. The proposition establishing the appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted annually in accordance with the applicable provisions of Section 53325.7 of the Law. Section 17. Pursuant to the provisions of the Law, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this Board of Directors. Section 18. All or any portion of the territory proposed for annexation to the District, as described in Section 18 of the Resolution of Intention and on the map of the Boundaries — Potential Annexation Area of the District recorded on November 28, 2018 at 2:19 p.m. in the Riverside County Recorder's Office in Book 83 of Maps of Assessment and Community Facilities Districts at page 35 (instrument no. 2018-0464324), may be annexed to the District from time to time upon the unanimous approval of the owner or owners of each parcel or parcels in the annexation area then to be annexed, without additional hearings, as permitted by Section 53339.7(a) of the Law. Section 19. The City Council hereby finds and determines that formation of the District is not a project subject to the California Environmental Quality Act set forth in TPFA Resos 19-01 3 Public Resource Code Sec. 21000 et seq. ("CEQA") and the CEQA Guidelines set forth in 14 Cal. Code Regs. Sec. 15000 et seq. The direct effects of the formation of the District and the adoption of this Resolution would not constitute a project as defined by CEQA Section 21065 and CEQA Guidelines Sections 15378(b)(4) and (b)(5) because they constitute: (a)the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and (b) organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. As a separate and independent ground, the formation of the District and the adoption of this Resolution are exempt from the requirements of CEQA and the CEQA Guidelines pursuant to Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of this Resolution will have a significant effect on the environment. The City Council therefore hereby directs City staff to prepare and file a Notice of Exemption with the County Clerk within five days of the adoption of this Resolution pursuant to Section 21080 of the Public Resources Code and Section 15062 of the CEQA Guidelines. Section 20. This Resolution shall take effect upon its adoption. PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority this 8th day of January, 2019. is ael . agga Chair ATTEST: Ran ' , Secretary [SEAL] TPFA Resos 19-01 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Randi Johl, Secretary of the Temecula Public Financing Authority, do hereby certify that the foregoing Resolution No. TPFA 19-01 was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority at a meeting thereof held on the 8th day of January, 2019, by the following vote: AYES: 5 BOARD MEMBERS: Edwards, Rahn, Schwank, Stewart, Naggar NOES: 0 BOARD MEMBERS: None ABSTAIN: 0 BOARD MEMBERS: None ABSENT: 0 BOARD MEMBERS: None Randi Johl, Secretary TPFA Resos 19-01 5 EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 19-01 (MUNICIPAL SERVICES) DESCRIPTION OF SERVICES AND RELATED ADMINISTRATIVE EXPENSES ELIGIBLE TO BE FUNDED BY THE DISTRICT SERVICES The services to be financed, in whole or in part, by the community facilities district (the "District") include the following: • Public safety services, including police protection, fire protection and suppression, services,and ambulance and paramedic services. • Maintenance of landscaping in public areas, public easements and public right of way, such maintenance to include but not be limited to maintenance of planting areas,trees, bio-retention filters, multipurpose trails, and the furnishing of water for irrigation. • Maintenance of sidewalks in or near to the area of the District. • Maintenance of public signage in or near the District. • Maintenance of storm protection and drainage systems within or serving the area of the District including but not limited to storm drain pipes, culverts, detention/desilting basins, manholes, catch basins and drop inlets, cleanout of storm drains and catch basin cleaning and inspection. • Maintenance of streets and roadways within or in the vicinity of the District, including but not limited to slurry, overlay, curbs and gutters, curb ramps, striping and street sweeping. • Maintenance of street lighting located within or in the vicinity of the District, including but not limited to street lights, decorative lighting and pull box assemblies. • Maintenance of traffic signals within and in the vicinity of the District, including but not limited to electrical, LED replacement, maintenance and replacement. • Maintenance and lighting of parks, parkways and open space. • Graffiti removal from public improvements within and in the area of the District. • Maintenance of water and sewer systems with an estimated useful life of five or more years and serving the area in or in the general area of the District and owned by the Temecula Public Financing Authority or by another local agency pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to Section 53316.2 of the California Government Code. A-1 The District may finance any of the following related to the services described above:the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the improvements, including repair, removal or replacement of all or part of any of the improvements, the furnishing of water for the irrigation and the furnishing of electric current or energy for any lights or irrigation facilities,obtaining,constructing,furnishing,operating and maintaining equipment,apparatus or facilities related to providing the services and/or equipment,apparatus,facilities or fixtures in areas to be maintained, obtaining supplies or appurtenant facilities necessary for such maintenance, paying the salaries and benefits of personnel necessary or convenient to provide the services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of services. It is expected that the services will be provided by the City of Temecula (the "City"), either with its own employees or by contract with third parties, or any combination thereof. The services to be financed by the District are in addition to those provided in the territory of the District before the date of creation of the District and will not supplant services already available within that territory when the District is created. ADMINISTRATIVE EXPENSES The administrative expenses to be financed by the District include the direct and indirect expenses incurred by the Authority and the City in carrying out their respective duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of Riverside related to the District or the collection of special taxes, an allocable share of the salaries of the Authority and City staff directly related thereto and a proportionate amount of the Authority's and the City's general administrative overhead related thereto, any amounts paid by the Authority and the City from its respective general fund with respect to the District or the services authorized to be financed by the District, and expenses incurred by the Authority and the City in undertaking action to foreclose on properties for which the payment of special taxes is delinquent, and all other costs and expenses of the Authority and City in any way related to the District. OTHER The incidental expenses that may be financed by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the Authority,the City and any owner of land in the District of all costs associated with the establishment of the District. A-2 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 19-01 (MUNICIPAL SERVICES) The following sets forth the Rate and Method of Apportionment for the levy and collection of an Annual Special Tax in the Temecula Public Financing Authority ("Authority") Community Facilities District No. 19-01 ("CFD No. 19-01"). An Annual Special Tax shall be levied and collected in CFD No. 19-01 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within CFD No. 19-01, unless exempted by law or by the provisions hereof. shall be taxed for the purposes,to the extent,and in the manner herein provided. SECTION A DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map. the land area as calculated by the CFD Administrator or City engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation. annexation, and administration of CFD No. 19-01, including but not limited to the following:(i)the costs of computing the Special Tax and of preparing the annual Special Tax collection schedule (whether by the CFD Administrator or designee thereof, or both): (ii) the costs of collecting the Special Tax (whether by the County, the Authority. the City, or otherwise); (iii) the costs of responding to property owner inquiries regarding the Special Tax; (iv) the costs of the Authority, the City or designee related to any appeal of the Special Tax: (v)the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes, (vi)the costs of preparing required reporting obligations, and (vii) an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by the City for any administrative purposes of CFD No. 19-01. "Annual Special Tax" means for each Assessor's Parcel, the Special Tax actually levied in a given Fiscal Year on any Assessor's Parcel of Taxable Property. "Approved Property" means all Assessor's Parcels of Taxable Property other than Exempt Property: (i) that are included in a Final Map that was recorded prior to the January 151 immediately 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 the April 1st immediately preceding the Fiscal Year in which the Special Tax is being levied. "Assessor" means the County Assessor. "Assessor's Parcel"means a lot or parcel of land designated on an Assessor's Parcel Map with an assigned Assessor's Parcel Number located within the boundaries of CFD No. 19-01. 8-1 "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that number assigned to a lot or parcel of land by the Assessor for purposes of identification. "Board of Directors" means the Board of Directors of the Authority, acting as the legislative body of CFD No. 19-01, or its designee. "Building Permit"means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, "Building Permit" may or may not include any subsequent building permits issued or changed after the first issuance, as determined by the CFD Administrator. "Building Square Footage"or"BSF"means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor's Parcel and subject to verification by the CFD Administrator. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31. "CFD No. 19-01" or "CFD" means Community Facilities District No. 19-01 (Municipal Services)established by the Authority under the Act. "CFD Administrator" means the Director of Finance of the City, or designee thereof, responsible for, among other things, determining the Special Tax Requirement and providing for the levy and collection of said Special Tax. "City" means the City of Temecula, California. "County" means the County of Riverside, California. "Developed Property"means all Assessor's Parcels of Taxable Property that:(i)are included in a Final Map that was recorded prior to January 1S' preceding the Fiscal Year in which the Special Tax is levied, and (ii) a building permit was issued on or before April 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor's Parcels designated as being exempt from the Special Tax provided for in Section D. "Final Map" means a subdivision of property by recordation of a final map. parcel map, or lot line adjustment, pursuant to the Subdivision map Act(California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots that do not need, and are not expected, to be further subdivided prior to the issue of a Building Permit. "Fiscal Year"means the period commencing July 1 of any year and ending the following June 30. "Land Use Type" means Residential Property. Multifamily Residential Property, or Non- Residential Property. B-2 "Maximum Special Tax" means for each Assessor's Parcel of Taxable Property. the maximum Special Tax,determined in accordance with Section C that can be levied in any Fiscal Year on such Assessor's Parcel. "Multifamily Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit was issued for any type of non-residential use. "Proportionately" means for Taxable Property that the ratio of the Annual Special Tax levy to the Maximum Special Tax is equal for all applicable Assessor's Parcels. "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, which are not Multifamily Residential Property. "Services" means services authorized to be funded by CFD No. 19-01. "Special Tax(es)" means the Special Tax authorized to be levied on Taxable Property within and by CFD No. 19-01 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means, subject to the Maximum Special Tax, that amount to be collected in any Fiscal Year to pay for the Services as otherwise required to meet the needs of CFD No. 19-01. The costs include the costs for (i) the Services, and (ii) Administrative Expenses; less (iii) a credit for funds available to reduce the Annual Special Tax levy, if any, as determined by the CFD Administrator. "Taxable Property" means all Assessor's Parcels within CFD No. 19-01, which are not Exempt Property. "Tax Zone"means a mutually exclusive geographic area.within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix B identifies the Tax Zone in CFD No. 19-01 at formation; additional Tax Zones may be created when property is annexed into the CFD. "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Temecula Public Financing Authority" or "Authority" or "PFA" means the Temecula Public Financing Authority. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property, or Exempt Property. "Unit" means any residential structure. B-3 SECTION B CLASSIFICATION OF ASSESSOR'S PARCELS Each Fiscal Year,beginning with Fiscal Year 2019-20,each Assessor's Parcel within CFD No. 19-01 shall be classified as Taxable Property or Exempt Property. In addition,each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, or Undeveloped Property. In addition, each Assessor's Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property or Non-Residential Property. SECTION C MAXIMUM SPECIAL TAX 1. Developed Property Each Fiscal Year, each Assessor's Parcel of Residential Property, Multifamily Residential Property, and Non-Residential Property shall be subject to the Maximum Special Tax. The Maximum Special Tax for each Assessor's Parcel of Taxable Property as shown in Table 1 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 19-01, the rate and method approved for the annexed property shall reflect the Maximum Special Tax for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax for Fiscal Year 2019-2020 within Tax Zone 1 applicable to an Assessor's Parcel of Developed Property shall be determined using Table 1 below. TABLE 1 MAXIMUM SPECIAL TAX RATES FOR DEVELOPED PROPERTY Tax Maximum Annual Increase in Zone Land Use Type Special Tax Maximum Special Tax 1 Residential Property $463.58 per Unit 5.6% 1 Multifamily Residential Property $11,256 per Acre 5.6% 1 Non-Residential Property $11,256 per Acre 5.6% 2. Approved Property Each Fiscal Year, each Assessor's Parcel of Approved Property shall be subject to the Maximum Special Tax. The Maximum Special Tax for each Assessor's Parcel of Approved Property as shown in Table 2 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 19-01, the rate and method approved for the annexed property shall reflect the Maximum Special Tax for the Tax Zones annexed and included in Appendix A. B-4 The Maximum Special Tax applicable to an Assessor's Parcel of Approved Property shall be determined using Table 2 below. TABLE 2 MAXIMUM SPECIAL TAX RATES FOR APPROVED PROPERTY Tax Maximum Annual Increase in Zone Land Use Type Special Tax Maximum Special Tax 1 Residential Property $463.58 per lot 5.6% 1 Multifamily Residential Property $11,256 per Acre 5.6% 1 Non-Residential Property $11,256 per Acre 5.6% 3. Undeveloped Property No Special Tax shall be levied on Undeveloped Property. 4. Increase in the Maximum Special Tax On each July 1, commencing July 1, 2020, the Maximum Special Tax shall be increased by the percentages indicated above in Tables 1 and 2. SECTION D EXEMPT PROPERTY The CFD Administrator shall classify as Exempt Property: (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii)Assessor's Parcels which are owned by,irrevocably offered for dedication,encumbered by or restricted in use by a homeowners' association, or (iii) Assessor's Parcels with other types of public uses determined by the CFD Administrator. SECTION E METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing with Fiscal Year 2019-20 and for each following Fiscal Year, the Authority shall determine the Special Tax Requirement and shall levy the Special Tax on all Assessor's Parcels of Taxable Property until the aggregate amount of the Special Tax equals the Special Tax Requirement. The Special Tax shall be levied for each Fiscal Year as follows: First:The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100%of the applicable Maximum Special Tax to satisfy the Special Tax Requirement: Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100%of the Maximum Special Tax for Approved Property. SECTION F PREPAYMENT OF THE SPECIAL TAX No prepayments of the Special Tax are permitted. B-5 SECTION G APPEALS AND INTERPRETATIONS Any property owner claiming that the amount or application of the Annual Special Tax is not correct may file a written notice of appeal with the CFD Administrator not later than twelve months after having paid the first installment of the Special Tax that is disputed. The CFD Administrator of CFD No. 19-01 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Annual Special Tax and rule on the appeal. If the CFD Administrator's decision requires that the Annual Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner,a cash refund shall not be made, but an adjustment shall be made to the Annual Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). The Board of Directors may interpret this Rate and Method of Apportionment of the Annual Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses. SECTION H TERM OF THE SPECIAL TAX For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the municipal Services are being provided. SECTION I MANNER OF COLLECTION The Annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 19-01 may collect the Annual Special Tax at a different time or in a different manner if necessary to meet its financial obligations. SECTION J FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 19-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A. B-6 APPENDIX A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 19-01 (MUNICIPAL SERVICES) MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE Annual Increase Tax I Year Maximum in Maximum Zone Development Included Land Use Type Special Tax Special Tax 1 i Cypress Ridge 2018 Residential Property $463.58 per Unit 5.6% 1 Cypress Ridge 2018 Multifamily Residential Property $11,256 per Acre 5.6% 1 Cypress Ridge 2018 Non-Residential Property $11,256 per Acre 5.6% Increase in the Maximum Special Tax On each July 1, commencing July 1, 2020, the Maximum Special Tax shall be increased by the percentages indicated in the table above. B-7 APPENDIX B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 19-01 (MUNICIPAL SERVICES) PROPOSED BOUNDARIES PROPOSED BOUNDARY MAP TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO 1941 (MUNICIPAL SERVICES). COUNTY OF RIVERSIDE.STATE OF CALIFORNIA ,1 \ ,t . , \ fwG 1 • M 4u ) 0— ricwry stir .or ro CM& B-8 BOUNDARIES•POTENTIAL ANNEXATION AREA TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO 19-01(MUNICIPAL SERVICES COUNTY OF RIVERSIDE STATE OF CALIFORNIA 7 4- \N463, e 4' . NOT TO SCALE 4 e illg %`EBB, *TOT TOu,..e B-9