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2020/02/25 Agreement Amendment 2 - CFD No 2017-1I/ I/ 1/ I/ ; � • I/� Recording Requested By and When Recorded Mail To: Spicer Consulting Group 41619 Margarita Road, Ste. 101 Temecula, CA 92591 Attn: Melissa Bellitire 02/25/2020 12:04 PM Fee: $ 65.00 Page 1 of 18 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder 11��1kt�r�N�Po�iEP'GE�all 127 This document is exempt from the payment of a recording fee pursuant to Government Code Section 6103. AMENDMENT NO. 2 TO NOTICE OF SPECIAL TAX LIEN COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) CITY OF MENIFEE (ANNEXATION NO.4) Pursuant to the requirements of Sections 3114.5 and 3117.5 of the Streets and Highways Code and Section 53328.3 of the Government Code, the undersigned clerk of the legislative body of the City of Menifee Community Facilities District No. 2017-1 (Maintenance Services) ("CFD No. 2017-1 "), hereby gives notice that a lien to secure payment of special tax, which CFD No. 2017-1 is authorized to levy, is hereby imposed on the property described herein. The special tax secured by this lien is authorized to be levied for the purpose of providing certain public services as described in that certain Notice of Special Tax Lien ("Original Notice") heretofore recorded in the office of the County Recorder for the County of Riverside, State of California on December 14, 2017 as Document No. 2017-0524512, the provisions of which are hereby incorporated by this reference. This Amendment No. 2 to Notice of Special Tax Lien amends the Original Notice to add territory to CFD No. 2017-1. Reference is made to the boundary map of CFD No. 2017-1 recorded at Book No. 81 of Maps of Assessment and Community Facilities District at Page 69, Document No. 2017-0465706, recorded on November 7, 2017, which map is now the final boundary map of CFD No. 2017-1, Boundaries — Potential Annexation Area, recorded at Book 81 of Maps of Assessment and Community Facilities District at Page 70, Document No. 2017-0465707, recorded on November 7, 2017 in the office of the County Recorder for the County of Riverside, State of California, which map comprises the boundary map of CFD No. 2017-1. The boundaries of the annexed territory are shown on the map entitled, "Annexation Boundary Map No. 4 Community Facilities District No. 2017- 1 (Maintenance Services)" a copy of which was recorded, on January 23, 2020, in Book 84 of Maps of Assessment and Community Facilities Districts at Page(s) 88, Document No. 2020-0033865, in the office of the Riverside County Recorder. 1 The Rate and Method of Apportionment of Special Tax and manner of collection of the authorized special tax is set forth in Exhibit A attached hereto and incorporated herein by this reference. Conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied and the lien of the special tax cancelled are: None. The special tax is authorized to be levied within the territory annexed to CFD No. 2017- 1, and the lien of the special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax obligation is prepaid, permanently satisfied, and canceled in accordance with law or until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with Section 53330.5 of the Government Code. Notice is further given that upon the recording of this notice in the office of the County Recorder of the County of Riverside, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the territory added to CFD No. 2017-1 in accordance with Section 3115.5 of the Streets and Highway Code. The name(s) of the owner(s) and the assessor's tax parcel numbers of the real property added to CFD No. 2017-1, and not exempt from the special tax, are as set forth in Exhibit B attached hereto and incorporated herein by this reference. Dated: As of the �± day of 2020. By:. )-9r2a h I•llan ariy Clerk Oil%/ of Menifee EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE A Special Tax (the "Special Tax") shall be levied on and collected from each Assessor's Parcel (defined below) in Community Facilities District No. 2017-1 (Maintenance Services) (the "CFD No. 2017-1" or "CFD"; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2018, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2017-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2017-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein. A. DEFINITIONS "Acre" or "Acreage" means the land area of an Assessor's Parcel as shown on any Assessor's Parcel Map, or if the land area is not shown on the Assessor's Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2017-1 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 to the City, CFD No. 2017-1, or any designee thereof associated with fulfilling the CFD No. 2017-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2017-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2017-1 and third party expenses related to CFD No. 2017-1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2017-1 for any other administrative purposes of CFD No. 2017-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Administrator" means the City Manager of the City of Menifee, or his or her designee. "Approved Property" means all Assessor's Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the June 1 preceding the Fiscal year in which the special tax is being levied. "Assessor's Parcel" means a lot or parcel of land that is identifiable by an Assessor's Parcel Number by the County Assessor of the County of Riverside. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means that identification number assigned to a parcel by the County Assessor of the County. "Building Square Footage" or "BSF" means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non -Residential Property after issuance of a building permit for expansion or renovation of such building. "Calendar Year" means the period commencing January 1 of any year and ending the following A-1 December 31 "CFD" or "CFD No. 2017-1" means the City of Menifee Community Facilities District No. 2017-1 (Maintenance Services). "City" means the City of Menifee. "Contingent Services" means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017-1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners' Association fails to adequately provide such services. "County" means the County of Riverside. "Developed Property" means all Assessor's Parcels of Taxable Property for which a building permit for new construction has been issued on or priorto June 1 preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessors' Parcels designated as being exempt from the Special Tax as provided for in Section G. "Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. "Fiscal Year" means the period from and including July 1"of any year to and including the following June 30th. "Land Use Category" or "LUC" means any of the categories contained in Section B hereof to which an Assessor's Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor's Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied. "Maximum Special Tax" means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable. "Maximum Special Tax A" means for each Assessor's Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor's Parcel in such Fiscal Year. "Maximum Special Tax B (Contingent)" means for each Assessor's Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor's Parcel in such Fiscal Year. "Multi -Family Residential Property" or "MFR" means any Assessor's Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed. "Non -Residential Property" or "NR" means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor's Parcel is Non -Residential Property. "Property Owner's Association" or "POA" means the property owner's association or homeowner's association established to maintain certain landscaping within a Tax Zone. "Proportionately" means for Taxable Property that is: (i) Developed Property, that the ratio of the actual A-2 Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property. "Residential Unit" or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. "Residential Property" means all Assessor's Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. "Service(s)" means services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017-1 as set forth in the documents adopted by the City Council at the time the CFD was formed. "Single Family Residential Property" or "SFR" means any Residential Property other than Multi -Family Residential Property on an Assessor's Parcel. "Special Tax(es)" means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property. "Special Tax A" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2017-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds. "Special Tax B (Contingent)" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required. "Special Tax B (Contingent) Requirement" means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. "Taxable Property" means all Assessor's Parcels within CFD No. 2017-1, which are not Exempt Property. "Taxable Unit" means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2017-1 at formation; additional Tax Zones may be created when property is annexed into the CFD. "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed A-3 Property or Approved Property. B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD No. 2017-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor's Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non -Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi - Family Residential Property and the number of Residential Units shall be determined by the Administrator. C. MAXIMUM SPECIAL TAX RATES For purposes of determining the applicable Maximum Special Tax for Assessor's Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor's Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi -family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor's Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor's Parcels of Developed Property and Approved Property which are classified as Non -Residential Property, all such Assessor's Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor's Parcels, the Special Tax A levied against the Assessor's Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs. 1. Special Tax A a. Developed Property (i) Maximum Special Tax A The Maximum Special Tax A for each Assessor's Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 1 below: TABLE 1 MAXIMUM SPECIAL TAX A RATES DEVELOPED PROPERTY Tax Maximum Zone Tract Land Use Category Taxable Unit Special Tax A Single Family Residential Property RU $158 1 TR & PMM 950504 1 Multi -Family Residential Property RU $158 Non -Residential Property Acre $1,714 (ii) Increase in the Maximum Special Tax A On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal A-4 Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category 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 Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax A for each Assessor's Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 2 below: TABLE 2 MAXIMUM SPECIAL TAX A RATES APPROVED PROPERTY Tax Maximum Zone Tract Land Use Category Taxable Unit Special Tax A Single Family Residential Property RU $158 1 PM 50 & I 950 4 1 Multi -Family Residential Property RU $158 Non-Residential Property Acre $1,714 On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax A for each Assessor's Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 3 below - TABLE 3 MAXIMUM SPECIAL TAX A RATES UNDEVELOPED PROPERTY Tax Zone Tracts Taxable Unit Maximum Special Tax A 1 TR 36299-1 & PM 9504 Acre $1,515 On each July 1, commencing on July 1, 2019 the Maximum Special Tax for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater 2. Special Tax B (Contingent) A-5 The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances: (a) The POA files for bankruptcy; (b) The POA is dissolved; (c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Propertv (i) Maximum Special Tax B (Contingent) The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 4 below: TABLE 4 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES DEVELOPED PROPERTY Maximum Tax Special Tax B Zone Tract Land Use Category Taxable Unit (Contingent) Single Family Residential Property RU $0 1 TR & PMM 950504 1 Multi -Family Residential Property RU $0 Non -Residential Property Acre $0 (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category 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 Administrator's allocation to each type of property shall be final. b. Approved Property The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017- 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 5 below: A-6 TABLE 6 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES APPROVED PROPERTY Maximum Tax Special Tax B Zone Tract Land Use Category Taxable Unit (Contingent) Single Family Residential Property RU $0 1 504 1 & PMM 950 Multi -Family Residential Property RU $0 Non -Residential Property Acre $0 On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property The Maximum Special Tax B (Contingent) for each Assessor's Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 6 below: TABLE 6 MAXIMUM SPECIAL TAX B (CONTINGENT) RATES UNDEVELOPED PROPERTY Maximum Special Tax Zone Tracts Taxable Unit Tax B (Contingent) 1 TR 36299-1 Acre $0 & PM 9504 On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX 1. Special Tax A Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor's Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows: First: The Special Tax A shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement; Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property. A-7 2. Special Tax B (Contingent) Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor's Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement; Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property; Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property. E. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2017-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A. F. DURATION OF SPECIAL TAX For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided. For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided. G. EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2017-1, all Assessor's; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator. H. APPEALS Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2017-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator's decision requires that the Special Tax for an Assessor's Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor's Parcel in the subsequent Fiscal Year(s). A-8 I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2017-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. A-9 APPENDIX A CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) COST ESTIMATE Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2020-21. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2017-1. TAX ZONE 4 (SERVICES) TTM 31098 Item Description Estimated Cost 1 Landscaping $45,709 2 Lighting $15,589 3 Streets $48,609 4 Drainage $38,484 5 Parks $48,979 6 Trails $6,254 7 Graffiti $738 8 Reserves $11,766 9 1 Auditor -Controller Fees $135 10 Administration $10,218 Total $226,481 Special Tax B Contingent Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2020-21. There are no maintenance services proposed to be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1. TAX ZONE 4 MAXIMUM SPECIAL TAX RATES Land Use Taxable Maximum Maximum Category Unit Special Tax A Special Tax B Developed �__.__..._..RU $878 $0 Approved _--- RU $878 $0 Undeveloped Acre $4,845 $0 A-10 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE Fiscal No. of Maximum Maximum Tax Year Taxable Land Use Taxable Special Tax Special Tax B Zone Included Tract Units Category Unit A (Contingent) Subdivider 426 SFR RU $158 $0 Stark Menifee Land, LLC 548 MFR RU $158 $0 Stark Menifee Land, LLC & Menifee Multifamily, LLC 1 2018-19 36299-1 & PM 9504 27.68 NR Acre $1,714 $0 Several 2 2020-21 TR 37576 65 SFR RU $539 $43 Meritage Homes 3 To Be Determined Lennar Homes of 4 2020-21 TTM 31098 258 SFR RU $878 $0 California, Inc. ESCALATION OF MAXIMUM SPECIAL TAXES On each July 1, commencing on July 1, 2021 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. A-11 APPENDIX B CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, 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 and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1; and any portions adjacent to the properties within CFD No. 2017-1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay "Administrative Expenses," as said term is defined in the Rate and Method of Apportionment. The above services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017-1 before the territory was annexed, as applicable. A-12 APPENDIX C COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE PROPOSED BOUNDARIES A-13 0 Lu ., OI J r x 0} w7 N w O> O . p W G LL N Y LL p0 w o zGroro g mZLLo ow aQQ w O zOO V Ovri o o oZ & w Q w�pzV y� oo o z f S LL= s 0 V V Q 2 V c Z 3�00�0 ' O r 6pE%o0Z zo a Z V p r U O x 2 O g r Z y° p N a p Z W Q O O z o S w m w 2 O 2 z�� O} W H =O a } p W Q ffnn x x _ w 4 Z s o° w w r p W V 0 2 i V W ( $ O °Ipz>_uZ N _ uo z w U �_ ON Oo wr } _I LLa I x �r �`'�c��i p u.r u m =m?O�rG rvpm LL V NI Atl9 H18O4 -'. .. tlO AVMtlM015 -. ;; yO lShclhI7NO1S i {— I m m 0 O N LL 0 zi a i -- oee-�s ne _ zZ �W RX5WW d a L LL W n ; aNZ� Wco Nflf-Iw OH-._�13dl_- O�ZLLo w O E► UW°w k LLzv� ' W I i m - �- ............._._.....-.__.- ��- Ca UVNOIVd......._._ w Z+U 5 O' : " d z 0: 0 ± U. 4 � k 0 u /0� LLF � > Z5� ww LLI k Azo � 22z 1-dJ 2—U 2 k 3 U. Q uj ■ 0 t Q q :zs �)\}}\ %,!e§, \&[ \\((I\ e}�if 9 [a§)5§dA G f oLa 2/§\/\ * ±! )a ( �\\ ci ®//&\\)} ) m 0 ov,5" EXHIBIT B PROPERTY OWNER NAME(S) AND ASSESSOR PARCEL NUMBER(S) COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE (ANNEXATION NO. 4) Landowner Lennar Homes of California Inc Lennar Homes of California Inc Lennar Homes of California Inc Lennar Homes of California Inc Lennar Homes of California Inc Lennar Homes of California Inc Lennar Homes of California Inc B-1 Assessor's Parcel Number 333-070-069 333-070-070 333-070-071 333-070-075 333-070-080 333-070-081 333-070-082