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HomeMy WebLinkAbout04-08 TPFA Resolution I I I RESOLUTION NO. TPFA 04-08 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY DECLARING ITS INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN - RORIPAUGH RANCH 03-02 WHEREAS, under the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Board of Directors may commence proceedings for the establishment of a community facilities district; and WHEREAS, there has been submitted to this Board of Directors Petitions (Inclucling Waivers) of the owners of real property in the Roripaugh Ranch development within the City of Temecula (collectively, the "Petitions"), requesting the formation by this Board of Directors of a community facilities district under the Law to be known as the Temecula Public Financ:ing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "District"); and WHEREAS, under the Law, this Board of Directors is the legislative body for the proposed District and is empowered with the authority to establish the District and levy special taxes within the District; and WHEREAS, this Board of Directors now desires to proceed with the actions necessary to consider the establishment of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temec:ula Public Financing Authority as follows: Section 1. This Board of Directors proposes to begin the proceedings necessary to establish the District pursuant to the Law. Receipt of the Petitions to form the District is hereby acknowledged. Section 2. The name proposed for the District is Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch). Section 3. The proposed boundaries of the District are as shown on the map of the District on file with the Secretary, which boundaries are hereby preliminarily approved. The Secretary is hereby directed to record, or cause to be recorded, the map of the boundaries of the District in the office of the County Recorder as soon as practicable after the adoption of :this Resolution. Section 4. The types of publiC facilities (the "Facilities") proposed to be eligible for funding by the District and pursuant to the Law, and the fixed special assessment lien to be eliminated in whole or in part by payments from the District and pursuant to the Law, sl1all consist of those items listed on Exhibit A hereto under the headings "Facilities" and "Prior Lien," respectively, which Exhibit is by this reference incorporated herein. The Executive Director is hereby authorized and directed to enter into a joint commullity facilities agreement with the City of Temecula, the County of Riverside, the Riverside County Flood Control and Water Conservation District, the Temecula Community Services District, the R:fTPFA Resas 2004fTPFA 04-08 I I I Eastern Municipal Water District, the California Department of Transportation, and with any other public entity that will own and/or operate any of the Facilities, such agreements to be in a form provided by Bond Counsel. Section 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities and the elimination of the Prior Lien and/or pay the principal and interest as it becomes due on bonds of the District issued to pay for the Facilities and the elimination of the Prior Lien, 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 or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of 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, and which specifies the tax year after which no further special tax will be leviedl on land used for private residential purposes and which otherwise complies with applicable provisions of the Law is described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. This Board of Directors finds that the provisions of Section 53313.6, 53313.7 ;3nd 53313.9 of the California Government Code (relating to adjustments to ad valorem prop,srty taxes and schools financed by a community facilities district) are inapplicable to the District. Section 6. It is the intention of this Board of Directors, acting as the legislative body for the District, to cause one or more series of bonds of the Authority to be issued for the District pursuant to the Law to finance a portion of the costs of the Facilities, and to finance the elimination of the Prior Lien. If so issued, the bonds shall be in the aggregate principal amount of not to exceed $55,000,000, shall bear interest payable semi-annually or in such other manner as this Board of Directors shall determine, at a rate not to exceed the maximum ratos of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. Section 7. This Board of Directors reserves to itself the right and authority to allow any interested owner of property in the District, subject to the provisions of Section 53344.1 of the California Government Code and such requirements as it may otherwise impose, and any applicable prepayment penalties as prescribed in the indenture or fiscal agent agreement for any bonds of the Authority for the District, to tender to the Treasurer of the Authority in full payment or part payment of any installment of special taxes for the District or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, in the manner described in Section 53344.1 of the California Government Code. Section 8. The levy of said proposed special tax in the District shall be subject to the approval of the qualified electors at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the District, with each owner having one vote for each acre or portion of an acre of land such owner owns in the District. Section 9. Except as may otherwise be provided by law or the rate and method of apportionment of the special tax for the District, all lands owned by any public entity, including the United States, the State of California and/or the City of Temecula, or any departments or political subdivisions of any thereof, shall be omitted from the levy of the special tax to be rn3de R:fTPFA Resas 2004fTPFA 04-08 2 I I I to cover the costs and expenses of the facilities, the elimination of the Prior Lien, the issuance of bonds by the Authority for the District and any expenses of the District. Section 10. The Director of Public Works of the City of Temecula is hereby directed to study the proposed Facilities for the District and the Prior Lien and to make, or cause to be made, and file with the Secretary a report in writing, presenting the following: (a) A brief description of the Facilities eligible to be funded by the District and the Prior Lien. (b) An estimate of the fair and reasonable cost of providing the Facilities, and of eliminating the Prior Lien, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any Authority or City of Temec:ula administrative costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 11. Tuesday, September 28, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business Park Drive, Temecula, California, be, and the same are hereby appointed and fixed as the time and place when and where this Board of Directors, as legislative body for the District, will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax with the District. Section 12. The Secretary is hereby directed to cause notice of said public hearinH to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit C hereto. Section 13. The firms of Fieldman, Rolapp & Associates, David Taussig & Associates, Inc., Stone & Youngberg LLC, Stephen G. White, MAl, Quint & Thimmig LLP and McFarlin & Anderson are hereby designated as financial advisor, special tax consultant, underwriter, appraiser, bond counsel and disclosure counsel, respectively, to the Authority for the District. The Executive Director is hereby authorized to execute agreements with said firms for their services related to the District provided that all fees and expenses of such firms are payable solely from deposits by the landowners in the District or the proceeds of the bonds, if any, issued by the Authority for the District. Section 14. On November 26, 2002, the City Council of the City of Temecula approved the Roripaugh Ranch Project and specifically adopted Resolution No. 02-111 making certain findings with respect to the approval and certification of an Environmental Impact Report for the Project ("Roripaugh Ranch EIR"). All of the public improvements which are to be funded by the District were described, evaluated and studied as part of the Roripaugh Ranch EIR and Council Resolution No. 02-111. No significant changes have occurred with respect to the project or the environment which require further study or which render invalid the conclusions and findings of the Roripaugh Ranch EIR. No facts exist upon which any findings pursuant to Sections 15162, 15263 or 15265 of the State CEQA Guidelines could be based to require the preparation of a subsequent EIR, supplemental EIR or addendum to an EIR. Therefore, the Board of Directors hereby determines that the contemplated formation of a community facilities district and the issuance of community facilities district special tax bonds involving the Authority and the District, in accordance with Section 15061(b) of the California Environmental Quality Act R:fTPFA Resas 2004fTPFA 04-08 3 I (CEQA) Guidelines is not a "Project" as defined in Section 15378 off the CEQA Guidelines, .3nd is therefore exempt from the requirements of CEQA. Pursuant to CEQA Guidelines Sections 15061(d) and 15062, and the Secretary is hereby directed to cause a Notice of Exemption to be prepared, executed and filed in regard to the foregoing determination. Section 15. The Board of Directors may in the future, by resolution, approve an agreement pursuant to Section 53314.9 of the California Government Code, to accept an advance or advances of funds or work-in-kind from one or more landowners in the District or related entities, which advances may be repaid and work-in-kind may be reimbursed to the person or entity which advanced the funds or work-in-kind subject to compliance with the applicable provisions of Section 53314.9 of the California Government Code. Section 16. This Resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED, by the Board of Directors of the Temec:ula Public Financing Authority at a meeting held on the 24th day of August, 2004. ATTEST: I I R:fTPFA Resas 2004fTPFA 04-08 4 I I I STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, CMC, City Clerk, Authority Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY that the foregoing Resolution No. TPFA 04-08 was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 24th day of August, 2004, by the following vote: AYES: NOES: ABSENT: ABSTAIN: 5 o o o BOARDMEMBERS: Comerchero, Roberts, Stone, Washington, Naggclr BOARDMEMBERS: None BOARDMEMBERS: None BOARD MEMBERS: None R:fTPFA Resas 2004fTPFA 04-08 5 I I I EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) DESCRIPTION OF FACILITIES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR LIEN TO BE ELIMINATED BY THE DISTRICT FACILITIES The District may finance all or part of the costs of the following: 1. Murrieta Hot Sprinos Road 2. Murrieta Hot Springs Road (MHSR) from the Westerly Boundary Line of Tract 29661 (existing end of pavement) to Butterfield Stage Road: Improvements include grading for full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, traffic signal(s) landscaping, irrigation, storm drain, concrete slope protection, sewer and water pipelines, and other appurtenant improvements necessary to complete MHSR. Butterfield Staoe Road Butterfield Stage Road (BSR) from the Northerly tract boundary to Ranc:ho California Road: Improvements include grading full right-of-way with 2: 1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, traffic signal(s), signing and striping, landscaping, irrigation, storm drain, concrete slope protection, bridges over Santa Gertrudis Creek, and Long Valley Channel, sewer and water pipelines, and other appurtenant improvements necessary to complete Butterfield Stage Road. 3. Nicolas Road 3a Nicolas Road from BSR to the Easterly Metropolitan Water District (MWD) R/W: Improvements include grading right-of-way with 2:1 slopes, paving, asphalt berms, curb and gutter, sidewalk, asphalt path, split rail fence, street lights, landscaping, irrigation, storm drain, underground sewer and water pipelines, and other appurtenant improvements necessary to complete Nicolas Road. 3b Nicolas Road from the Easterly MWD R/W to Liefer Road including construction of Calle Garisol realignment to Nicolas Road: Improvements include grading partial right-of-way (40' travel way) with 2:1 slopes, paving, asphalt berms, curb and gutter, sidewalk, asphalt path, utility relocations, trc,ffic detour, split rail fence, street lights, signing and striping, landscaping, irrigation, sewer, storm drain, bridge over Santa Gertrudis Creek (including channel lining and transition A-1 I I I structure to bridge), access road, exit structure and other appurtenant improvemElllts necessary to complete Nicolas Road. 3c Nicolas Road Sewer Pipeline from Liefer Road to Joseph Road: Improvements include installing a 15" main line sewer including street re-pavem<3nt, traffic detour and other appurtenant improvements necessary to complete Nicolas Road Sewer pipeline. 3d Nicolas Road and North General Kearny Road intersection signalization: Improvements include signalization of intersection, striping, traffic control and other appurtenant improvements necessary to complete the signalization. 3e Nicolas Road and Winchester Road intersection widening and signal modification: Improvements include modifications to existing traffic signal, storm drain, paving, curb and gutter, median curb, bus turn-out, striping, traffic control and other appurtenant improvements necessary to complete the intersection and signal modifications. 4. Calle Chapos Calle Chapos from BSR to Walcott Lane: Improvements include grading half right-of-way width plus twelve feet with 2:1 slopes, paving, AC dike, storm drain and other appurtenant improvements necessary to complete Calle Chapos. 5. LonQ Vallev Channel Long Valley Channel from the Westerly R/W of BSR to the Easterly Project Boundary: Improvements include grading of channel, flow-by detention basin, construction of drop structures, trapeZOidal channel lining, transition structures to Butterfield Stage Road Bridge, rip-rap, grading and paving of access roads, fencing, and other appurtenant improvements necessary to complete Long Valley Channel. 6. Santa Gertrudis Creek Santa Gertrudis Creek from the Habitat Area to the exit channel at MWD R/W: Improvements include a flow-by detention basin, headwalls, trapezoidal channel lining and transition structures; grading, fencing and paving for access roads; desilting and detention basins, rip-rap protection, rip-rap dissipaters, berms, grading of exit structure and other appurtenant improvements necessary to complete Santa Gertrudis Creek. A-2 I I I 7. Environmental MitiQation Mitigation for the Long Valley Channel and Santa Gertrudis Creek improvements: Creation of 8.2 acres of habitat within open space to include grading, access road, electrical service, irrigation, plant and seed installation and other appurtenant improvements necessary to complete resource agency conditioned environmental mitigation for the Long Valley Channel and Santa Gertrudis Creek improvements. 8. Sports Park Sports Park at the SE corner of the intersection of North Loop Road lInd Butterfield Stage Road: Construct 20:l:-acre Sports Park including grading, parking, building, lighting landscaping, irrigation, playing fields, basketball courts, children's play area, equipment with a useful life of five (5) years or more and other appurtenant improvements necessary to complete the Sports Park. 9. Fire Station Site GradinQ Roripaugh Ranch Fire Station site grading Improvements include site grading and other appurtenant improvements necessary to provide a rough graded fire station site. 10. North Loop Road North Loop Road from BSR to Gate House East of BSR (Public Section only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, North Loop Road Bridge and other appurtenant improvements necessary to complete the public segment of the North Loop Road East of BSR. 11. South Loop Road South Loop Road from BSR to Gate House East of BSR (Public Section only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete the public segment of the South Loop Road East of BSR. A-3 I I I 12. Roripauah Vallev Road ( A Street I Roripaugh Valley Road Grading and Street Improvements from Murrieta Hot Springs Road to Butterfield Stage Road: Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gulter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete Roripaugh Valley Road between Murrieta Hot Springs Road and Butterfield Stage Road. 13. Fiesta Ranch Road (B Street I 14. 15. Fiesta Ranch Road Grading and Street Improvements from Roripaugh Valley R()ad to Nicolas Road: Improvements include grading full right-of-way with 2: 1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete Fiesta Ranch Road between Roripaugh Valley Road and Nicolas Road. Fire Station and Fire APparatus Fire Station Construction and Fire Truck Purchase: Improvements include the acquisition of land for and construction of a fire station to be located at the Southeast corner of Butterfield Stage Road and the South Loop Road, and to consist of a building of approximately 9,100 square feet. Also, the equippinll of the fire station, including furniture and fixtures, and the acquisition of a fire truck and other fire fighting apparatus. Neiahborhood Park Neighborhood Park at the SW corner of the intersection of Murrieta Hot Springs Road and Roripaugh Valley Road (A Street): Construct 5.1-acre Neighborhood Park including grading, parking, restroom building, lighting, landscaping, irrigation, open grass area, basketball court, children's play area, equipment with a useful life of five (5) years or more and other appurtenant improvements necessary to complete the Neighborhood Park. 16. SR.79 Improvements Improvements include right-of-way acquisition, grading to accommodate road widening, paving, curb and gutter, median curb, sidewalk, street lights, traffic signal(s), signing and striping, landscaping, irrigation, storm drain, and other appurtenant improvements necessary to complete improvements to SR-79. A-4 I I I PRIOR LIEN The District may fund amounts necessary to eliminate all or a portion of the lien imposed by the County of Riverside Assessment District No. 161 on the real property within the Distric:t. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriter's discount, reserve fund, capitali.zed interest, bond and disclosure counsel and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the bond trustee or fiscal agent related to the District and any bonded indebtedness of the District. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City or any related entity, or any landowner or developer within the District, as well as reimbursement of any costs advanced by the Authority or any related entity, or any landowner or developer within the District, for facilities, fees or other purposes or costs of the District A-5 I EXHIBIT B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX I I I I I RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) A Special Tax shall be levied and collected on all Taxable Property located within the boundaries of CFD No. 03-02 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) ("CFD No. 03-02"). The amount of Special Tax to be levied in each Fiscal Year on a Parcel in CFD No. 03-02, commencing with Fiscal Year 2005-2006, shall be determined by the CFD Administrator through the application of the procedures described below. All of the real property in CFD No. 03-02, unless exempted by law or the provisions herein, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS In addition to the capitalized terms set forth in the preceding paragraph, capitalized telms used in this Section A shall have the following meanings: "Acre" means 43,560 square feet ofland. The Acres for a Parcel means the land area of the Parcel as shown on or determined from the applicable Assessor's Parcel Map. Notwithstanding the foregoing, the Acres attributable to each Parcel of Residential Propmty that is (i) located in a Final Map and (ii) an individual single-family home lot or Condominium shall be computed by the CFD Administrator by dividing the sum of the I;md area for all such Parcels of Residential Property in the Final Map by the number of such Parcels. The Acres for any leasehold or possessory interest shall be the Acres for the Parcel which corresponds to such leasehold or possessory interest. "Acreage Special Tax" means the special tax set forth in Section C.2 below. "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 administration of CFD No. 03-02, including but not limited to the following: (i) the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the CFD Administrator or designee thereof, or both); (ii) the costs of collecting the Special Taxes (whether by the Authority, County, City, or otherwise); (iii) the costs of remitting the Special Taxes to the fiscal agent or trustee for any Bonds; (iv) the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes; (v) the costs of the fiscal agent or trustee (including its legal counsel) in the discharge of the duties required of it under any Indenture; (vi) the costs of the Authority, City, or designee of complying with arbitrage rebate and disclosure requirements of applicable federal and State of California securities laws, the Act, and the California Government Code, including property owner or Bond owner inquiries regarding the SpeGial CFD No. 03-02 Page 1 of 12 August 17,2004 I I I Taxes; (vii) the costs associated with the release offunds from any escrow account; (viii) the costs of the Authority, City, or designee related to any appeal of a Special Tax; and (ix) 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 or the Authority for any administrative purposes of CFD No. 03-02. "Assessor" means the County Assessor of the County of Riverside. "Assessor's Parcel Map" means an official map of the Assessor designating parcels ofland or Condominium units by number. "Authority" means the Temecula Public Financing Authority. "Board of Directors" means Board of Directors of the Authority, acting as the legislalive body of CFD No. 03-02. "Bonds" means any bonds or other indebtedness (as defined in the Act), whether in onl~ or more series, the repayment of which is secured by the levy of Special Taxes on Parcels within CFD No. 03-02. "CFD Administrator" means the Finance Director of the City, or designee themof, responsible for detennining the Special Tax Requirement and providing for the levy ;and collection of Special Taxes. "City" means the City of Temecula, California. "Condominium" means a residential dwelling unit meeting the statutory definition of a condominium contained in the California Civil Code, Section 1351, and for which a condominium plan has been recorded pursuant to California Civil Code, Section 1352. "County" means the County of Riverside, California. "Developed Property" means all Parcels of Taxable Property, for which a Final Map was recorded as of the January 1 and a building pennit for new construction was issued as of the April 1 preceding the Fiscal Year in which the Special Tax is being levied, exclusiv(: of Property Owner's Association Property and Public Property. "Dwelling Unit Special Tax" means the special tax set forth in Section C.l below. "Exempt Property" means any Parcel located within the boundaries of CFD No. 03-02 which is exempt from the Special Tax pursuant to law or Section E below. "Final Map" means a subdivision of property by recordation of a (i) final map or parcel map approved by the City pursuant to the Subdivision Map Act (California Government Code CFD No. 03-02 Page 2 of 12 August 17,2004 I I I Section 66410 et seq.), (ii) lot line adjustment approved by the City, or (iii) condominium plan pursuant to California Civil Code 1352. "Fiscal Year" means the period starting on each July 1 and ending on the following June: 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use" means the land use set forth in the Land Use Plan. "Land Use Plan" means the approved land use plan for the Specific Plan. "Lot" means (i) any lot within a Final Map that is located at least partially within the boundaries of CFD No. 03-02 or (ii) any land within the boundaries of CFD No. 03-02 that is conveyed, dedicated, or otherwise acquired by or irrevocably offered to the federal government, the State of California, the County, the City, or any local government or other governmental agency. "Maximum Special Tax" means the maximum special tax, determined in accordance \vith Section C, that can be levied in any Fiscal Year on any Parcel. "Non-Residential Property" means all Parcels of Taxable Property which are not classified as Residential Property, Property Owner's Association Property, or Public Property. "Parcel" means a parcel (i) which is located at least partially within the boundaries ofCFD No. 03-02 and (ii) to which an Assessor's parcel number is assigned as shown on an Assessor's Parcel Map. "Planning Area" means those planning areas designated by number on the Land Use Plan. "Property Owner's Association Property" means (i) any Parcel for which the owner of record, as determined from the County Assessor's secured tax roll for the Fiscal Year in which the Special Tax is being levied, is a property owner's association, including any master or sub-association, (ii) any Lot located in a Final Map that was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Map, is or will be open space, a private park or recreation facility, or a private street owned by a property owner's association, (iii) any Lot within a Final Map I:hat is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and any Parcel for which the Land Use is private mini park or private recreation center, or (iv) any Lot or Parcel which, as of the April 1 preceding the Fiscal Year for which the Special Tax is being levied, has been conveyed, irrevocably dedicated, or irrevocably offered to a property owner's association, including any master or sub-association, provided such conveyance, dedication, CFD No. 03-02 Page 3 of 12 August 17,20304 I I I or offer is submitted to the CFD Administrator prior to the May 1 preceding the Fiscal Year for which the Special Tax is being levied. "Proportionately" means that with respect to a given classification of property the ratio of the Special Tax to the Dwelling Unit Special Tax or Acreage Special Tax, as applicable, is the same for all Parcels assigned to such classification. For example, levying the Special Tax Proportionately on Parcels of Developed Residential Property means that for all such Pan:els the ratio of the Special Tax to the Dwelling Unit Special Tax is the same. "Public Property" means (i) any Parcel for which the owner of record, as detennined from the County Assessor's secured tax roll for the Fiscal Year in which the Special Tax is being levied, is the federal government, the State of California, the County, the City, or any local government or other governmental agency, (ii) any property within a Final Map that is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and which, as detennined from such Final Map, is or will be a public street, (iii) any Lot within a Final Map that is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and any Parcel for which the Land Use is neighborhood park, sports park, educational, public institutional, habitat, flood control, or landscape slope, unless such Lot or Parcel has an underlying residential land use and the applicable public entity has provided notice to the City that it will not acquire or otherwise take ownership of the Parcel, or (iv) any Lot or Parcel which, as of the April 1 preceding the Fiscal Year for which the Special Tax is being levied, has been conveyed, irrevocably dedicated to, or irrevocably offered to the federal government, the State of California, the County, the City, or any local government or other governmental agency, provided such conveyance, dedication, or offer is submitted to the CFD Administrator prior to the May 1 preceding the Fiscal Year fol' which the Special Tax is being levied. "Residential Floor Area" means all of the square footage within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area as detennined from the applicable building pennit(s) issued for sllch structure as of the April 1 preceding the Fiscal Year in which the Special Tax is being levied. Such detennination shall be final following the final inspection or certification of occupancy for the dwelling unites). "Residential Property" means all Parcels of Taxable Property, exclusive of Prope:rty Owner's Association Property and Public Property, designated with a residential Land Use. "Special Tax" means the Special Tax levied in each Fiscal Year on each Parcel. "Special Tax Requirement" means (a) that amount with respect to CFD No. 03-02 required in any Fiscal Year to pay (i) for annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the Bonds, including, but not limited to, the costs of remarketing, credit enhancement, and liquidity facility fees (including such fees for instruments that serve as the basis of a reserve fund in CFD No. 03-02 Page 4 of 12 August 17, 2004 I I I lieu of cash related to any such Bonds) and rebate payments; (iii) the Administrative Expenses; (iv) any reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year or otherwise reasonably expected; (v) any amounts required to establish or replenish any reserve funds established for the Bonds, and less (b) available funds as directed under the Indenture. "Specific Plan" means the Roripaugh Ranch Specific Plan (City of Temecula Resolution 02-112, Ordinance 02-13), as amended. "Taxable Property" means all Parcels which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner's Association Property" means all Parcels of Property Owner's Association Property which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Public Property" means all Parcels of Public Property which are not exempt f!'Om the Special Tax pursuant to law or Section E below. . "Uildeveloped Property" means all Parcels of Taxable Property which are not classified as . Developed Property, exclusive of Property Owner's Association Property and Public Property. B. ASSIGNMENT TO LAND USE CATEGORY Bach Fiscal Year, commencing with Fiscal Year 2005-2006, all Parcels shall be classified as either Taxable Property or Exempt Property. Taxable Property shall be further classified as Residential Property, Non-Residential Property, Taxable Property Owner's Association Property, or Taxable Public Property. Residential Property and Non-Residential Prop(:rty shall be further classified as Developed Property and Undeveloped Property (hereinafter referred to as "Developed Residential Property," "Developed Non-Residential PropeI1:y," "Undeveloped Residential Property," or "Undeveloped Non-Residential Property"). For purposes of detennining the applicable DweIIing Unit Special Tax, Developed Residential Property shall be assigned to classifications one through fifteen in Table 1 below based on Residential Floor Area. If a Parcel consists of two or more Lots located in a Final Map that was recorded as of the January 1 preceding the Fiscal Year for which the Special Tax is being levied, each such Lot shall be treated as a Parcel and classified independently of the other; however, the aggregate Special Tax for the Lots will be levied on the Parcel. c. MAXIMUM SPECIAL TAX RATE The Maximum Special Tax for each Parcel of Developed Residential Property shall be the greater of the applicable DweIIing Unit Special Tax or Acreage Special Tax. If there are two or more residential dweIIing units located on a Parcel, the applicable DweIIing Unit Special CFD No. 03-02 Page 5 of 12 August 17, 2004 I Tax for such Parcel shall be the sum of the Dwelling Unit Special Tax for each such residential dwelling unit. The Maximum Special Tax for each Parcel of Undeveloped Residential Property, Non-Residential Property, Taxable Property Owner's Association Property, and Taxable Public Property shall be the applicable Acreage Special Tax. 1. Dwelling Unit Special Tax The Dwelling Unit Special Tax rates are shown in Table 1 below. 1 Residential >5,000 $4,230' 2 Residential >4,400 and <=5,000 $3,995' 3 Residential >4,200 and <~,400 $3,520' 4 Residential >4,000 and <=4,200 $3,356t I 5 Residential >3,800 and <=4,000 $3,I92t 6 Residential >3,600 and <=3,800 $3,028' 7 Residential >3,400 and <=3,600 $2,865' 8 Residential >3,200 and <=3,400 $2,701' 9 Residential >3,000 and <=3,200 $2,537' 10 Residential >2,800 and <=3.000 $2,374t 11 Residential >2.600 and <=2,800 $2,210' 12 Residential >2,400 and <=2,600 $2,046' 13 Residential >2,200 and <=2,400 $1,883' 14 Residential >2,000 and <=2,200 $1,719' 15 Residential <=2,000 $1.586' Per residential dwellin unit I CFD No. 03-02 Page 6 of 12 August 17, 2004 I I I 2. Acreage Special Tax The Acreage Special Tax rates are shown in Table 2 below. Developed and Undeveloped Residential Property Low Density (L) Low Medium Density (LM) Medium Density Standard (MI) Medium Density Clustered (M2) Developed and Undeveloped Non-Residential Property (NC) Taxable Property Owner's Association Property Taxable Public Property $5,620 Per Acre $17,665 Per Acre $17,665 Per Acre $17,665Per Acre $8,247 Per Acre $17,665 Per Acre $17,665 Per Acre Notwithstanding the above, if at any time subsequent to the issuance of Bonds the Land Use Plan is amended or the zoning or configuration of the Planning Areas is otherwise amended, the CFD Administrator shall determine if the Acreage Spedal Taxes that may thereafter be levied are less than the sum of estimated Administralive Expenses and one hundred ten percent (110%) of the maximum annual debt service for outstanding Bonds. If the amended Land Use Plan, zoning, and/or Planning Area configuration has resulted in such a reduction, then the Acreage Special Tax for each Parcel to which such amendments apply shall be computed using the Acreage Spedal Tax rate(s) previously applicable to such Parcel. If the previous Land Use for :any portion of a Parcel to which the amended Land Use Plan, zoning, and/or Planning Area configuration applies was not low density (L), low medium density (Ll\1), medium density standard (Ml), medium density clustered (M2), or neighborhood commercial (NC) then the applicable Acreage Special Tax rate shall be $17,665. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the CFD Administrator shall levy the Special Tax on all Taxable Property to fund the Special Tax Requirement as follows: First: The Special Tax shall be levied Proportionately on each Parcel of Developed Property, up to 100% of the applicable Dwelling Unit Special Tax in the case of Developed Residential Property and up to 100% of the applicable Acreage Special Tax in the cast: of Developed Non-Residential Property; CFD No. 03-02 Page 7 of 12 August 17, 2004 I I I Second: If additional Special Taxes are needed after the first step, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property, up to 100% of the applicable Acreage Special Tax; Third: If additional Special Taxes are needed after the second step, the Special Tax for Parcels of Developed Property for which the Maximum Special Tax is derived from the applicable Acreage Special Tax shall be increased equally, measured on a percentage b2,sis, from the amounts levied under the preceding Step 1 up to 100% of the applicable Acreage Special Tax (i.e., the percentage increase shall be equal for all applicable Parcels, until the Maximum Special Tax is reached); and Fourth: If additional Special Taxes are needed after the third step, the Special Tax shall be levied Proportionately on each Parcel of Taxable Property Owner's Association Property and Taxable Public Property up to the applicable Maximum Special Tax. Notwithstanding the above, under no circumstances will the Special Taxes levied against any Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Parcel or Parcels within CFD No. 03-02 by more than ten percent (10%) per Fiscal Year. In addition, under no circumstances will the Acreage Special Tax be levied against Parcels of Developed Residential Property if the Special Taxes which may be levied pursuant to the first and second steps above are equal to or greater than sum of estimated Administrative Expenses and one hundred ten percent (110%) of the tl1en maximum annual debt service for outstanding Bonds. E. EXEMPTIONS The Board of Directors shall not levy a Special Tax on up to 511.11 Acres of Propl:rty Owner's Association Property and Public Property. If the total number of Acres ofPropl:rty Owner's Association Property and Public Property exceeds 511.11, the chronological ordedn which such property is classified will determine which Parcels are classified as Exempt Property and which are classified as Taxable Property. If a Lot or Parcel is no longer classified as Property Owner's Association Property or Public Property, its status as Exempt Property will be revoked. The following property shall be classified as Property Owner's Association Property or Public Property, as applicable, at the time CFD No. 03-02 is established and shall count toward the limitation of 511.11 Acres of Property Owner's Association Property and Public Property set forth in the preceding paragraph: · Property Owner's Association Property and Public Property: Lots A and B (portion of Murrieta Hot Springs Road), Lot 2 (private mini park), Lot 5 (private recreation center), and Lot 8 (open space) of Tract 29353-1; Lots H and 5 (open space), Lots A through G and M through 0 (streets), Lots I, J, and K (flood control), Lot L (equestrian trail), Lots 2 and 9 (parks), Lots 10 and 11 (school sites), and Lot 12 (fire station) of Tract 29353-2; and the property described in and conveyed to the City CFD No. 03-02 Page 8 of 12 August 17,2004 I I I pursuant to a grant deed dated May 21, 2003 and recorded with the County as Document Number 2003-371374. Subject to Section 53317.5 of the Act, if a Lot or Parcel classified as Developed Residential Property is acquired by a public entity by any means, including by negotiated transaction, gift, devise, or foreclosure, such Lot or Parcel will notwithstanding anything else herein be subject to the Special Tax in accordance with the terms for Developed Residential Propt,rty. In addition, if a Parcel of Public Property is leased to a non-governmental entity, then the leasehold or possessory interest, in accordance with Section 53340.1 of the Act, shall be subject to the applicable Acreage Special Tax. F. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Special Tax may be billed directly ancllor may be collected at a different time or in a different manner if neces:lary or convenient to meet the financial obligations of CFD No. 03-02, or as otherwise detennined by the CFD Administrator. The foreclosure remedies provided for in the Indenture shall apply upon the nonpayment of the Special Tax. G. REVIEW AND APPEALS Any taxpayer may file a written appeal of the Special Tax levied on his/her property with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its detennination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be made. H. PREPAYMENT OF SPECIAL TAX 1. Full Prepayment- Developed Residential Property, Non-Residential Property, and Taxable Property Owner's Association Property The Maximum Special Tax for any Parcel of Developed Residential Property, r\"on- Residential Property, or Taxable Property Owner's Association Property may be prepaid and permanently satisfied as described herein, provided that a prepayment may be made only if at the time of the prepayment there are no delinquent Special Taxes with respect to such Parcel and all other Parcels which are under the same ownership and located within CFD No. 03-02. An owner of a Parcel intending to CFD No. 03-02 Page 9 of 12 August 17,2004 I I I prepay the Maximum Special Tax shall provide the CFD Administrator with written notice of intent to prepay, and within 10 business days of receipt of such written notice, the CFD Administrator shall notify such owner of the non-refundable deposit determined to cover the cost to be incurred by the CFD No. 03-02 in calculating the prepayment amount. Within 10 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the prepayment amount. Prepayment must be made not less than 60 days prior to any redemption date, unless otherwise authorized by the CFD Administrator, for any Bonds to be redeemed with the prepayment proceeds. The "Full Prepayment Amount" means an amount equal to the sum of (1) Bond Redemption Amount, (2) Redemption Premium, (3) Defeasance Amount, and (4) Fees, less the Reserve Fund Credit, where the terms "Bond Redemption Amount," "Redemption Premium," "Defeasance Amount," "Fees," and "Reserve Fund Credit" have the following meanings: "Bond Redemption Amount" means the principal amount of Bonds to be redeemed and equals the greater of (a) the quotient derived by dividing (i) the applicable Dwelling Unit Special Tax, in the case of Residential Property, or Acreage Special Tax, in the case of Non-Residential Property or Taxable Property Owner's Association Property by (ii) the sum of the aggregate Dwelling Unit Special Taxes (for Residential Property) and Acreage Spedal Taxes (for Non-Residential Property) for CFD No. 03-02 (and excluding from (ii) any Special Taxes which have been prepaid) or (b) the quotient derived by dividing (iii) the applicable Acreage Special Tax by (iv) the sum of the aggregate Acreage Special Taxes (for Residential Property and Non- Residential Property) for CFD No. 03-02 (and excluding from (iv) any Special Taxes which have been prepaid) in each case multiplied by the principal amount of outstanding Bonds rounded up to the nearest $5,000. The aggregate special taxes under (a) and (b) above means the aggregate special taxes upon completion of the development of CFD No. 03-02. Plior to the completion of the development of CFD No. 03-02, the aggregate special taxes under (a) and (b) above shall be as projected by the CFD Administrator. "Redemption Premium" means the Bond Redemption Amount multiplied by the applicable redemption premium, if any, for the Bonds to be redeemed. "Defeasance Amount" means the amount needed to pay interest on the Bond Redemption Amount until the earliest redemption date for the outstanding Bonds. Credit shall be given for any portion of the Special Tax heretofore paid by the Parcel for which the Full Prepayment Amount is being calculated and which wiII be, but has not yet been, utilized to pay interest lmd principal on the Bonds. CFD No. 03-02 Page 10 of 12 August 17, 2004 I I I CFD No. 03-02 "Fees" equal the fees and expenses of CFD No. 03-02 related to the Full Prepayment Amount, including, but not limited to, the costs of computing the Full Prepayment Amount, the costs of redeeming Bonds, and the costE, of recording any notices to evidence that the Maximum Special Tax has bllen prepaid. "Reserve Fund Credit" shall equal the lesser of (i) the reduction in the applicable "Reserve Requirement," as such term is defined in the Indenture, if any, following the redemption of Bonds from proceeds of the Prepayment Amount or (ii) the amount derived by subtracting the new Reserve Requirement in effect after the redemption of Bonds from proceeds of the Full Prepayment Amount from the balance in the "Reserve Fund," as such term is defined in the Indenture, on the prepayment date, but in no event shall such amount be less than zero. The CFD Administrator shall remove any portion of the Special Tax which has been enrolled but not paid. With respect to any Parcel that has prepaid the Maximum Special Tax, the Board of Directors shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the Maximum Special Tax and the release of the Special Tax lien on such Parcel, and the obligation of such Parcel to pay the Special Tax shall cease. 2. Partial Prepayment - Developed Property, Non-Residential Property, and Taxable Property Owner's Association Property The Maximum Special Tax for any Parcel of Developed Residential Property, Non- Residential Property, or Taxable Property Owner's Association Property may be prepaid in part as described herein, provided that (i) the Bond Redemption Amount must be an integral multiple of $5,000 and (ii) at the time of the prepayment there are no delinquent Special Taxes with respect to such Parcel and all other Parcels which are under the same ownership and located within CFD No. 03-02. The "PlIItial Prepayment Amount" shall be computed using the methodology in Section H.I and substituting the portion of the Maximum Special Tax to be prepaid by the Parcel for its Dwelling Unit Special Tax and Acreage Special Tax when determining the Bond Redemption Amount. The owner intending to prepay a portion of the Maximum Special Tax shall notify the CFD Administrator in writing of (i) such owner's intent to partially prepay the Maximum Special Tax, (ii) the percentage by which the Maximum Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable, and within 10 business days of receipt of such written notice, the CFD Administrator shall notify such owner of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 03-02 in calculating the amount of the partial prepayment. Within 10 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Partial Prepayment Page 11 of 12 August 17, 2004 I I I Amount. Prepayment must be made not less than 60 days prior to any redemption date, unless authorized by the CFD Administrator, for any Bonds to be redeemed with the prepayment proceeds. With respect to any Parcel that has prepaid a portion of the Maximum Special Tax, the CFD Administrator shall indicate in the records of CFD No. 03-02 that there has been a partial prepayment of the Maximum Special Tax. the amount of the Maximum Special Tax which has been prepaid, and the amount of the Maximum Special Tax which continue to be levied on such Parcel. The Bond Redemption Amount, Redemption Premium, Defeasance Amount, and Reserve Fund Credit shall be used to pay interest on and redeem Bonds in accordance with the Indenture. Notwithstanding the foregoing, no prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied in CFD No. 03-02 after the proposed prepayment is at least the sum of (i) the estimated Administrative Expenses and (ii) one hundred ten percent (110%) of the annual debt service on the Bonds. taking into account the amount of Bonds to remain outstanding after such prepayment. I. TERM The Maximum Special Tax shall be levied for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2005-2006. K:\Clients2\TemecuJaIRoripaugh RancbIRMA\CFD 2003-2 RMA 10 FINAL.doc CFD No. 03-02 Page 12 of 12 August 17,2004 I I I EXHIBIT C TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) NOTICE OF PUBLIC HEARING Notice is hereby given that on August 24, 2004, the Board of Directors of the Temec:ula Public Financing Authority adopted a Resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Therein - Roripaugh Ranch 03- 02." Pursuant to the Mello-Roos Community Facilities Act of 1982, the Board of Directors of the Authority hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: WHEREAS, under the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Boarcl of Directors may commence proceedings for the establishment of a community facilities district; and WHEREAS, there has been submitted to this Board of Directors Petitions (Including Waivers) of the owners of real property in the Roripaugh Ranch development within the City of Temecula (collectively, the "Petitions"), requesting the formation by:this Board of Directors of a community facilities district under the Law to be known as the Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "District"); and WHEREAS, under the Law, this Board of Directors is the legislative body for the proposed District and is empowered with the authority to establish the District and I,svy special taxes within the District; and WHEREAS, this Board of Directors now desires to proceed with the actions necessary to consider the establishment of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Temecula Public Financing Authority as follows: Section 1. This Board of Directors proposes to begin the proceedings necessary to establish the District pursuant to the Law. Receipt of the Petitions to form the District is hereby acknowledged. Section 2. The name proposed for the District is Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch). Section 3. The proposed boundaries of the District are as shown on the map of the District on file with the Secretary, which boundaries are hereby preliminarily approved. The Secretary is hereby directed to record, or cause to be recorded, the map C-1 I of the boundaries of the District in the office of the County Recorder as soon as practicable after the adoption of this Resolution. Section 4. The types of public facilities (the "Facilities") proposed to be eligible for funding by the District and pursuant to the Law, and the fixed special assessment lien to be eliminated in whole or in part by payments from the District and pursuant to the Law, shall consist of those items listed on Exhibit A hereto under the headings "Facilities" and "Prior Lien," respectively, which Exhibit is by this reference incorporc,ted herein. The Executive Director is hereby authorized and directed to enter into a joint community facilities agreement with the City of Temecula, the County of Riverside, the Riverside County Flood Control and Water Conservation District, the Temec:ula Community Services District, the Eastern Municipal Water District, the California Department of Transportation, and with any other public entity that will own and/or operate any of the Facilities, such agreements to be in a form provided by Bond Counsel. I Section 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities and the elimination of the Prior Lien and/or pay the principal and interest as it becomes due on bonds of the District issued to pay for the Facilities and the elimination of the Prior Lien, 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 or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of 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, and which specifies the tax year after which no further special tax will be levied on land used for private residential purposes and which otherwise complies with applicable provisions of the Law is described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. This Board of Directors finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the California Government Code (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicablEl to the District. Section 6. It is the intention of this Board of Directors, acting as the legislative body for the District, to cause one or more series of bonds of the Authority to be issued for the District pursuant to the Law to finance a portion of the costs of the Facilities, and to finance the elimination of the Prior Lien. If so issued, the bonds shall be in the aggregate principal amount of not to exceed $55,000,000, shall bear interest paYc,ble semi-annually or in such other manner as this Board of Directors shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. I Section 7. This Board of Directors reserves to itself the right and authority to allow any interested owner of property in the District, subject to the provisions of Section 53344.1 of the California Government Code and such requirements as it may otherwise C-2 I impose, and any applicable prepayment penalties as prescribed in the indenture or fiBcal agent agreement for any bonds of the Authority for the District, to tender to the Treasurer of the Authority in full payment or part payment of any installment of special taxes for the District or the interest or penalties thereon which may be due or delinqu,snt, but for which a bill has been received, any bond or other obligation secured thereby, in the manner described in Section 53344.1 of the California Government Code. Section 8. The levy of said proposed special tax in the District shall be subjec:t to the approval of the qualified electors at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the District, with each owner having one vote for each acre or portion of an acre of land such owner owns in the District. Section 9. Except as may otherwise be provided by law or the rate and method of apportionment of the special tax for the District, all lands owned by any public entity, including the United States, the State of California and/or the City of Temecula, or any departments or political subdivisions of any thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses of the facilities, the elimination of the Prior Lien, the issuance of bonds by the Authority for the District and any expenses of the District. Section 10. The Director of Public Works of the City of Temecula is herosby directed to study the proposed Facilities for the District and the Prior Lien and to ma,ke, or cause to be made, and file with the Secretary a report in writing, presenting the following: I (a) A brief description of the Facilities eligible to be funded by the District and the Prior Lien. (b) An estimate of the fair and reasonable cost of providing the Facilities, and of eliminating the Prior Lien, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any Authority or City of Temecula administrative costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 11. Tuesday, September 28, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business Park Drive, TemeclJla, California, be, and the same are hereby appointed and fixed as the time and place wilen and where this Board of Directors, as legislative body for the District, will conduc:t a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special tax with the District. I Section 12. The Secretary is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Extlibit C hereto. C-3 I I I Section 13. The firms of Fieldman, Rolapp & Associates, David Taussi!l & Associates, Inc., Stone & Youngberg LLC, Stephen G. White, MAl, Quint & Thimmig LLP and McFarlin & Anderson are hereby designated as financial advisor, special tax consultant, underwriter, appraiser, bond counsel and disclosure counsel, respectively, to the Authority for the District. The Executive Director is hereby authorized to exec:ute agreements with said firms for their services related to the District provided that all f.ees and expenses of such firms are payable solely from deposits by the landowners in the District or the proceeds of the bonds, if any, issued by the Authority for the District. Section 14. On November 26, 2002, the City Council of the City of Temec:ula approved the Roripaugh Ranch Project and specifically adopted Resolution No. 02-111 making certain findings with respect to the approval and certification of an Environmental Impact Report for the Project ("Roripaugh Ranch EIR"). All of the public improvements which are to be funded by the District were described, evaluated and studied as part of the Roripaugh Ranch EIR and Council Resolution No. 02-111. No significant changes have occurred with respect to the project or the environment which require further study or which render invalid the conclusions and findings of the Roripaugh Ranch EIR. No facts exist upon which any findings pursuant to SectioJns 15162, 15263 or 15265 of the State CEQA Guidelines could be based to require the preparation of a subsequent EIR, supplemental EIR or addendum to an EIR. Therefore, the Board of Directors hereby determines that the contemplated formation of a community facilities district and the issuance of community facilities district special tax bonds involving the Authority and the District, in accordance with Section 15061(b) of the California Environmental Quality Act (CEQA) Guidelines is not a "Project" as defined in Section 15378 off the CEQA Guidelines, and is therefore exempt from the requirements of CEQA. Pursuant to CEQA Guidelines Sections 15061(d) and 15062, and the Secretary is hereby directed to cause a Notice of Exemption to be prepared. executed and filed in regard to the foregoing determination. Section 15. The Board of Directors may in the future, by resolution, approve an agreement pursuant to Section 53314.9 of the California Government Code, to accept an advance or advances of funds or work-in-kind from one or more landowners in the District or related entities, which advances may be repaid and work-in-kind may be reimbursed to the person or entity which advanced the funds or work-in-kind subject to compliance with the applicable provisions of Section 53314.9 of the California Government Code. Section 16. This Resolution shall take effect upon its adoption. B. The exhibits to the Resolution which describe the facilities to be funded, the prior lien to be eliminated, and the rate and method of apportionment of the special taxes for, the district are on file in the office of the Secretary of the Authority. C. The time and place established under said Resolution for the public hearing required under the Law are Tuesday, September 28, 2004, at the hour of 7:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of the Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business Park Drive, Temecula, California. D. At said hearing, the testimony of all interested persons or taxpayers for or against the establishment of the district, the extent of the district or the funding by the District of the specified types of facilities or the elimination of the prior lien will be heard. Any person interested may file a protest in writing with the Secretary. If fifty percent or more of the C-4 I I I registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the district, or the owners of one-half or more of the area of land in the terri'lory proposed to be included in the district and not exempt from the special tax file written protests against the establishment of the District and the protests are not withdrawn to reduce the value of the protests to less than a majority, the Board of Directors shall take no further action to establish the District or levy the special taxes in the District for a period of one year from the date of the decision of the Board of Directors, and if the majority protests of the registered voters or the landowners are only against the funding of a type or types of facilities, or the elimination of the prior lien on property in the district, or against levying a specified special tax in the District, those types of facilities, the elimination of the prior lien or the specified special tax will be eliminated from the proceedings to form the District. E. The proposed voting procedure shall be by special mail or hand-delivered ballot to the property owners within the territory proposed to be included in the district. Dated: September _' 2004 /s/ Susan W. Jones. CMC Secretary , Temecula Public Financing Authority C-5