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12-249 RESOLUTION NO. 12-249 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ESTABLISHING CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2012-1 (AUDIE MURPHY RANCH), COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND THE BOUNDARIES THEREOF WHEREAS, the City Council (the "City Council") of the City of Menifee (the "City") has heretofore adopted Resolution No. 11-242, stating that a community facilities district to be known as "City of Menifee Community Facilities District No. 2012-1, County of Riverside, State of California" (the "Community Facilities District'), is proposed to be established under the provisions of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act'), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on January 17, 2012, at the time and place specified in said published and mailed notices, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, prior to the commencement of said public hearing, there was filed with the City Council a report (the 'Report") containing a description of the services being financed within and for the Community Facilities District, and an estimate of the cost of providing such services, as required by Section 53321.5 of the California Government Code; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, the City Council may therefore proceed to establish the Community Facilities District; NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF MENIFEE AS FOLLOWS: Section 1. Findings. The City Council finds as follows: (i) all of the preceding recitals are correct, (ii) at its meeting on January 17, 2012, pursuant to notice thereof duly given as provided by law, the City Council conducted the public hearing with respect to the formation of the Community Facilities District and the annual levying of specified special taxes on the taxable property within the Community Facilities District to pay the costs of services for the Community Facilities District which are described in Section 3 hereof, (iii) the boundary map of the Community Facilities District was recorded, pursuant to Sections 3111 and 3113 of the California Streets and Highways Code, on December 21, 2011, at pages 49 and 50 of Book 75 of Maps of Assessment and Community Facilities Districts, and as Document No. 2011- 29277.00001\7055945.1 Resolution 12-249 AMR CFD 0563661, in the official records of the County of Riverside, (iv) no written protests were received at or prior to the time of said hearing against the formation of the Community Facilities District or the levying of said special taxes by the Community Facilities District, and said special taxes have, therefore, not been limited by majority protest pursuant to Section 53324 of the California Government Code, (v) all prior proceedings with respect to the formation of the Community Facilities District conducted by the City Council were valid and in conformity with the requirements of Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, (vi) the City Council is, therefore, authorized to adopt a resolution of formation pursuant to Section 53325.1 of the California Government Code for the formation of City of Menifee Community Facilities District No. 2012-1, County of Riverside, State of California, and the Community Facilities District should be established, and (vii) less than 12 persons have been registered to vote within the territory of the Community Facilities District during the 90 days preceding the close of the public hearing and, pursuant to Section 53326 of the California Government Code, the vote in the special election provided for in Section 7 hereof shall, therefore, be by the landowners of the Community Facilities District whose property would be subject to the special taxes if they were levied at the time of the election, and each landowner shall have one vote for each acre, or portion thereof, which he or she owns within the Community Facilities District. Section 2. Formation of District. City of Menifee Community Facilities District No. 2012-1 (Audie Murphy Ranch), County of Riverside, State of California, is hereby established. The boundaries of the Community Facilities District are described and shown on the map entitled 'Boundaries of City of Menifee Community Facilities District No. 2012-1 (Audie Murphy Ranch), County of Riverside, State of California" which is on file with the City Clerk, and said boundaries are hereby established. Section 3. Types of Services: Incidental Expenses. It is proposed that the proposed community facilities district shall provide and finance certain types of services and related costs, including (i) the maintenance and servicing of street lights, parks, parkways, streets, roads, and open space, (ii); the operation and maintenance of storm drainage systems, (iii) a reserve fund for capital replacement of such facilities, and (iv) CFD administrative expenses, all as more completely described in Exhibit "A" attached hereto and by this reference made a part hereof. Section 4. Special Taxes. Except where funds are otherwise available, special taxes sufficient to pay the costs of services provided in Section 3 above and the annual administrative expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes shall be annually levied within the Community Facilities District. The rates and method of apportionment of said special taxes shall be as set forth in Exhibit "B" attached hereto and by this reference made a part hereof. Under no circumstances shall the special tax levied against any parcel subject to the levy of the special tax pursuant to the rates and methods of apportionment be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Community Facilities District by more than ten (10) percent. Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. - 2 - 29277.00001\7055945.1 Resolution 12-249 AMR CFD 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 non-exempt real property in the Community Facilities District and that lien shall continue in full force and effect until the special tax obligation is prepaid and permanently satisfied and .the lien canceled in accordance with law or until collection of the special tax ceases. The Finance Department of the City of Menifee, 29714 Haun Road, Menifee, California is designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel numbers and for estimating future special tax levies pursuant to Section 53340.1 of the California Government Code. Section 5. Exempt Properties. Pursuant to Section 53340 of the California Government Code, properties of entities of the state, federal, and local governments shall be exempt from the levy of special taxes of the proposed community facilities district. Section 6. Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the Community Facilities District, and is ordered to be kept on file with the City Clerk as part of the transcript of these proceedings. Section 7. Description of Votina Procedures. The voting procedures to be followed in conducting the special election on (i) the proposition with respect to the levy of special taxes on taxable property within the Community Facilities District to pay the costs of the services to be,provided by the Community Facilities District, and (ii) the proposition with respect to establishing an appropriations limit for the Community Facilities District in the amount of $5,000,000 (the "special election"), shall be as follows: (a) Except as otherwise provided below, the special election shall be conducted by the City Clerk pursuant to the California Elections Code governing mail ballot elections of cities, and in particular, the provisions of Division 4 (commencing with Section 4000) of said Code, insofar as they may be applicable. (b) The special election shall be held on the earliest date, following the adoption by the City Council of this resolution and a resolution pursuant to Section 53326 of the California Government Code submitting the propositions with respect to (i) the levy of special taxes to pay the costs of the services to be provided by the Community Facilities District, and (ii) establishing an appropriations limit therefor to the qualified electors of the Community Facilities District, upon which such election can be held pursuant to said Section 53326 which may be selected by the City Council, or such earlier date as the owners of land within the Community Facilities District and the City Clerk agree and concur is acceptable. (c) Pursuant to said Section 53326, the special election may be held earlier than 90 days following the close of the public hearing if the qualified electors of the Community Facilities District waive the time limits for conducting the election set forth in said Section 53326 by unanimous written consent and the City Clerk concurs in such earlier election date as shall be consented to by the qualified electors. (d) Pursuant to said Section 53326, ballots for the special election shall be distributed to the qualified electors by the City Clerk by mail with return postage prepaid, or by personal service. (e) Pursuant to applicable sections of the California Elections Code governing the conduct of mail ballot elections of cities, and specifically Division 4 (commencing - 3 - 29277.00001\7055945.1 Resolution 12-249 AMR CFD with Section 4000) of the California Elections Code with respect to elections conducted by mail, the City Clerk shall mail or deliver to each qualified elector an official ballot in a form specified by the City Council in the resolutions calling the election, and shall also mail or deliver to all such qualified electors a ballot pamphlet and instructions to voter, including a sample ballot identical in form to the official ballot but identified as a sample ballot, a statement pursuant to Section 9401 of said Code, an impartial analysis by the City Attorney pursuant to Section 9280 of said Code with respect to the ballot propositions contained in the official ballot, arguments and rebuttals, if any, pursuant to Sections 9281 to 9287, inclusive, and 9295 of said Code, a return identification envelope with prepaid postage thereon addressed to the City Clerk for the return of voted official ballots, and a copy of Resolution No. 11-242; provided, however, that such statement, analysis and arguments may be waived with the unanimous consent of all the landowners. (f) The official ballot to be mailed or delivered by the City Clerk to each landowner voter shall have printed or typed thereon the name of the landowner-voter and the number of votes to be voted by the landowner-voter and shall have appended to it a certification to be signed by the person voting the official ballot which shall certify that the person signing the certification is the person who voted the official ballot, and if the landowner-voter is other than a natural person, that he or she is an officer of or other person affiliated with the landowner-voter entitled to vote such official ballot, that he or she has been authorized to vote such official ballot on behalf of the landowner-voter, that in voting such official ballot it was his or her intent, as well as the intent of the landowner-voter, to vote all votes to which the landowner-voter is entitled based on its land ownership on the propositions set forth in the official ballot as marked thereon in the voting square opposite each such proposition, and further certifying as to the acreage of the landowner-voter's land ownership within the Community Facilities District. (g) The return identification envelope mailed or delivered by the City Clerk to each landowner-voter shall have printed or typed thereon the following: (i) the name of the landowner, (ii) the address of the landowner, (iii) a declaration under penalty of perjury stating that the voter is the landowner or the authorized representative of the landowner entitled to vote the enclosed ballot and is the person whose name appears on the identification envelope, (iv) the printed name and signature of the voter, (v) the address of the voter, (vi) the date of signing and place of execution of said declaration, and (vii) a notice that the envelope contains an official ballot and is to be opened only by the City Clerk. (h) The instruction to voter form to be mailed or delivered by the City Clerk to the landowner-voters shall inform them that the official ballots shall be returned to the City Clerk properly voted as provided thereon and with the certification appended thereto properly completed and signed in the sealed return identification envelope with the certification thereon completed and signed and all other information to be inserted thereon properly inserted by 5:00 p.m. on the date of the election. (i) Upon receipt of the return identification envelopes which are returned prior to the voting deadline on the date of the election, the City Clerk shall canvass the votes cast in the special election, and shall file a statement with the City Council as to the results of such canvass and the election on each proposition set forth in the official ballot. The procedures set forth in this section for conducting the special election, if it is held, may be modified as the City Council may determine to be necessary or desirable by a resolution subsequently adopted by the City Council. -4 - 29277.00001\7055945.1 Resolution 12-249 AMR CFD APPROVED AND ADOPTED this 17th day of January, 2012. 24 V 71 V. Denver, Mayor ATTEST: APPROVED AS TO FORM: Kathy Bennett, City Clerk Kim Byrens, SpeciW Counsel - 5 - 29277.00001\7055945.1 Resolution 12-249 AMR CFD EXHIBIT "A" DESCRIPTION OF SERVICES 1. Public Street Lighting: The street lighting improvements may include but are not limited to electrical energy, lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: (i) All public street lighting within the residential subdivisions of CFD No. 2012-1; and (ii) Public street lighting, traffic signals and other public lighting facilities on the streets within CFD No. 2012-1 and portions of Newport Road and Goetz Road adjacent to the properties within CFD 2012- 1. 2. Landscape, Park. Trails, and Recreation Improvements: The landscaping improvements may include, but are not limited to all landscaping material and facilities within CFD No. 2012-1. These improvements include turf, ground cover, shrubs, trees, plants, irrigation and drainage systems, ornamental lighting structures, electricity, repair/replacement & inspection, and associated appurtenant facilities located within the streetscape (parkway and slope perimeter landscaping) within CFD 2012-1 and portions of Newport Road and Goetz Road adjacent to the properties within CFD 2012- 1. The parks, open space areas, trails and recreation facilities to be operated, maintained and serviced may include, but are not limited to, the maintenance and care of all landscaping and facilities within park and open space areas facilities that service CFD No. 2012-1 but may not be included within the boundaries of CFD No. 2012-1. This includes trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements, signs, monuments, and associated appurtenant facilities. 3. Fossil Fuel FilterNVater Quality Basin Improvements Water quality improvements include facilities directly related to removal of contaminants and solids from storm drains throughout CFD No. 2012-1 including but not limited to storm drains, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements. 4. Street Sweepina Public street sweeping, to be performed on a bi-weekly basis, on the segments of the following arterials within the boundaries of CFD No. 2012-1: Newport Road, Murrieta Road, Goetz Road, Audie Murphy Road, Berea Road, and Murphy Ranch Road; as well as local roads within residential subdivisions located within CFD 2012-1 and 29277.00001\7055945.1 A-1 Resolution 12-249 AMR CFD portions of Newport Road and Goetz Road adjacent to the properties within CFD 2012- 1. 5. Administrative Expenses Administrative Expenses means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2012-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 2012-1 or any designee thereof of complying with City or CFD No. 2012-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2012-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2012-1 for any other administrative purposes of CFD No. 2012-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 29277.00001\7055945.1 A-2 Resolution 12-249 AMR CFD EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2012-1 (AUDIE MURPHY RANCH) 29277.00001\7055945.1 B-1 FINAL RATE AND METHOD OF APPORTIONMENT FOR CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO.2012-1 (AUDIE MURPHY RANCH) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in the City of Menifee Community Facilities District No.2012-1 (Audie Murphy Ranch)("CFD No.2012-1")and collected each Fiscal Year commencing in Fiscal Year 2012-2013, in an amount determined by the Council, according to the method of apportionment set forth herein. All of the real property in CFD No. 2012-1,unless exempted by law or by the provisions hereof, shall be taxed for the purposes,to the extent and in the manner herein provided. 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 an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map. "Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter 2.5, 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 and administration of CFD No. 2012-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes(whether by the County or otherwise);the costs to the City,CFD No.2012-1 or any designee thereof of complying with City or CFD No.2012-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City,CFD No.2012-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No.2012-1 for any other administrative purposes of CFD No. 2012-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor's Parcel" means any real property to which an Assessor's parcel number is assigned as shown on an Assessor's Parcel Map. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's parcel number. City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) page 1 "CFD Administrator" means the official of the City, or designee thereof,responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2012-1" means the City of Menifee Community Facilities District No. 2012-1 (Audie Murphy Ranch). "City" means the City of Menifee. "Consumer Price Index"means the Consumer Price Index published by the U.S.Bureau of Labor Statistics for "All Urban Consumers" in the Los Angeles-Riverside-Orange County Area,measured as of the month of December in the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published,the Consumer Price Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Consumer Price Index for the Los Angeles-Riverside-Orange County Area. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2012-1. "County" means the County of Riverside. "Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued as of May 1 of the previous Fiscal Year. "Eligible Facilities and Services" means, facilities to be maintained and services to be financed, described in Exhibit A. "Final Mapped Property"means, for each Fiscal Year, all Taxable Property for which a Final Subdivision was recorded as of May 1 of the previous Fiscal Year. "Final Subdivision" 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 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table 1 below. "Maximum Special Tax"means the Maximum Special Tax,determined in accordance with Section C below,that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2012-1. City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) Page 2 "Non-Residential Property"means all Assessor's Parcels of Developed Property for which a building permit(s) was issued for a non-residential use. "Property Owner Association Property"means,for each Fiscal Year,any property within the boundaries of CFD No. 2012-1 that was owned by a property owner association, including any master or sub-association, as of January I of the prior Fiscal Year. "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Developed Property. For Final Mapped Property, "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Final Mapped Property. For Undeveloped Property,"Proportionately"means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Undeveloped Property. "Public Property" means, for each Fiscal Year, (i)any property within the boundaries of CFD No. 2012-1 that was owned by or irrevocably offered for dedication to the federal government, the State, the City or any other public agency as of January 1 of the previous Fiscal Year;provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use;and(ii)any property within the boundaries of CFD No.2012-1 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement. "Reserve Fund" means a reserve fund to be used for capital replacement and maintenance costs. "Reserve Fund Requirement" means an amount equal to up to 100% of the anticipated annual cost of Eligible Facilities and Services at buildout of CFD No. 2012-1. "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. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2012-1 to (i) pay for Eligible Facilities and Services (ii) build the Reserve Fund up to the Reserve Fund Requirement, not to exceed in a given Fiscal Year$25,000 plus 20%of the cost of Eligible Facilities and Services; and(iii)pay Administrative Expenses. "State" means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2012-1 which are not exempt from the Special Tax pursuant to law or Section E below. City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) Page 3 "Undeveloped Property" means,for each Fiscal Year,all Taxable Property not classified as Developed Property or Final Mapped Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Taxable Property within CFD No. 2012-1 shall be classified as Developed Property,Final Mapped Property or Undeveloped Property,and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. Developed Property shall be classified as Residential Property and Non-Residential Property. Residential Property shall be assigned to Land Use Class 1. Non-Residential Property shall be assigned to Land Use Class 2. The Maximum Special Tax for Residential Property shall be based on the number of dwelling units located on the Assessor's Parcel, as specified in Table 1 below. The Maximum Special Tax for Non-Residential Property shall be based on the Acreage of the Assessor's Parcel. Notwithstanding the above,the Maximum Special Tax for Developed Property(set forth in Table 1) may be reduced in accordance with,and subject to,the conditions set forth in this paragraph. If it is reasonably determined by the CFD Administrator that the number of dwelling units to be constructed within the CFD shall exceed by at least 10 dwelling units the 2,129 dwelling units assumed in determining the Special Tax levels assigned to Developed Property in Table 1, the Maximum Special Tax on Developed Property may be reduced to reflect the additional number of dwelling units to be constructed within CFD No.2012-1.The reductions permitted pursuant to this paragraph shall be reflected in an amended notice of Special Tax lien which the County shall cause to be recorded for all of the parcels located in CFD No. 2012-1. C. MAXIMUM SPECIAL TAX 1. Developed Property (a) Maximum Special Tax The Fiscal Year 2012-2013 Maximum Special Tax for each Assessor's Parcel of Developed Property shall be the amount shown below in Table 1. TABLE 1 Maximum Special Tax for Developed Property Land Use FY 2012-2013 Class Description Maximum Special Tax 1 Residential Property $726.43 per dwelling unit 2 Non-Residential Property $2,086.42 per Acre (b) Increase in the Maximum Special Tax City of Menifee November 29,2011 CFD No.2012-1 (Audie Murphy Ranch) Page 4 On each July 1, commencing on July 1, 2013, the Maximum Special Tax shall be increased based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent(6%)and a minimum annual increase of two percent(2%) per Fiscal Year. (c) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax that can be levied for each Land Use Class located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use,the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. 2. Final Mapped Property The Fiscal Year 2012-2013 Maximum Special Tax for each Assessor's Parcel of Final Mapped Property shall be $2,086.42 per Acre, and shall increase annually thereafter,commencing on July 1,2013 and on July 1 of each Fiscal Year thereafter, by an amount equal to the percentage increase in the Consumer Price Index with a maximum annual increase of six percent(6%)and a minimum annual increase of two percent(2%)per Fiscal Year. 3. Undeveloped Property The Fiscal Year 2012-2013 Maximum Special Tax for each Assessor's Parcel of Undeveloped Property shall be $2,086.42 per Acre, and shall increase annually thereafter,commencing on July 1,2013 and on July 1 of each Fiscal Year thereafter, by an amount equal to the percentage increase in the Consumer Price Index with a maximum annual increase of six percent(6%)and a minimum annual increase of two percent(2%)per Fiscal Year. D. APPORTIONMENT OF THE ANNUAL SPECIAL TAX Commencing with Fiscal Year 2012-2013 and for each following Fiscal Year,the Council or its designee shall determine the Special Tax Requirement and levy the Special Tax until the amount of Special Tax levy equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100%of the applicable Maximum Special Tax; City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) Page 5 Second: If additional monies 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 Final Mapped Property, up to $750.00 per Acre.; Third: If additional monies are needed to satisfy the Special Tax Requirement after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, up to $750.00 per Acre Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the third step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Mapped Property and Undeveloped Property,up to 100%of the Maximum Special Tax; Notwithstanding the above,under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2012-1 by more than ten percent above the amount that would have been levied in that Fiscal Year had there never been any such delinquencies or defaults. E. EXEMPTIONS No Special Tax shall be levied on Property Owner Association Property or Public Property. However,should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked. F. APPEALS AND INTERPRETATIONS Any landowner or resident may file a written appeal of the Special Tax 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 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 determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall eliminate or reduce the Special Tax on the appellant's property and/or provide a refund to the appellant. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payments of Special Taxes. The second appeal must specify the reasons for its disagreement with the CFD Administrator's determination. Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment. City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) Page 6 G. MANNER OF COLLECTION The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2012-1 may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations,and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. H. TERM OF SPECIAL TAX The Special Tax shall be levied as long as necessary to meet the Special Tax Requirement. K:\CLIENTS2\Menifee\Audie Murphy\Rate and Method\RMA_Final.doc City of Menifee November 29,2011 CFD No.2012-1(Audie Murphy Ranch) page 7 EXHIBIT "A" DESCRIPTION OF SERVICES 1. Public Street Lighting: The street lighting improvements may include but are not limited to electrical energy, lighting fixtures, poles, meters, conduits, electrical cable and associated appurtenant facilities associated with: (i) All public street lighting within the residential subdivisions of CFD No. 2012-1; and (ii) Public street lighting, traffic signals and other public lighting facilities on the streets within CFD No. 2012-1 and portions of Newport Road and Goetz Road adjacent to the properties within CFD No. 2012-1. 2. Landscape, Park. Trails. and Recreation Improvements: The landscaping improvements may include, but are not limited to all landscaping material and facilities within CFD No. 2012-1. These improvements include turf, ground cover, shrubs, trees, plants, irrigation and drainage systems, ornamental lighting structures, electricity, repair/replacement & inspection, and associated appurtenant facilities located within the streetscape (parkway and slope perimeter landscaping within CFD 2012-1 and portions of Newport Road and Goetz Road adjacent to the properties within CFD No. 2012-1. The parks, open space areas, trails and recreation facilities to be operated, maintained and serviced may include, but are not limited to, the maintenance and care of all landscaping and facilities within park and open space areas facilities that service CFD No. 2012-1 but may not be included within the boundaries of CFD No. 2012-1. This includes trees, plant material, sod, irrigation systems, sidewalks, drainage facilities, weed control and other abatements, signs, monuments, and associated appurtenant facilities. 3. Fossil Fuel FilterfWater Quality Basin Improvements Water quality improvements include facilities directly related to removal of contaminants and solids from storm drains throughout CFD No. 2012-1 including but not limited to storm drains, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements. 4. Street Sweeping Public street sweeping, to be performed on a bi-weekly basis, on the segments of the following arterials within the boundaries of CFD No. 2012-1: Newport Road, Murrieta Road, Goetz Road, Audie Murphy Road, Berea Road, and Murphy Ranch Road; as well as local roads within residential subdivisions located within CFD No. 2012-1; and A-1 portions of Newport Road and Goetz Road adjacent to the properties within CFD No. 2012-1. 5. Administrative Expenses Administrative Expenses means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2012-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County or otherwise); the costs to the City, CFD No. 2012-1 or any designee thereof of complying with City or CFD No. 2012-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2012-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees and third parry expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2012-1 for any other administrative purposes of CFD No. 2012-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. A-2 NIF John V.Denver Mayor STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss Thomas Fuhrman CITY OF MENIFEE ) Mayor Pro Tem Wallace W.Edgerton I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the Councilmember foregoing Resolution No. 12-249 was duly adopted by the City Council of the City Darcy Kuenzi of Menifee at a meeting thereof held on the 17`h day of January, 2012 by the Councilmember following vote: Sue Kristjansson Ayes: Denver, Edgerton, Kristjansson, Kuenzi Councilmember Noes: None Absent: None Abstain: Fuhrman Kai y 43ennett, City Clerk 29714 Haun Road Menifee,CA 92586 Phone 951.672.6777 Fax 951.679.3843 www.dtyofinenifee.us