20-891RESOLUTION NO. 20-891
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE
CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES
DISTRICT NO. 2020-1 (McCALL MESA) OF THE CITY OF
MENIFEE, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO
PAY THE COSTS OF ACQUIRING OR CONSTRUCTING
CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON
BONDED INDEBTEDNESS
WHEREAS, the City of Menifee (the "City") received a petition signed by the owner of
more than ten percent of the land within the boundaries of the territory which is proposed for
inclusion in a proposed community facilities district, which petition meets the requirements of
Sections 53318 and 53319 of the Government Code of the State of California; and
WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution
of intention as provided in Section 53321 of the Government Code of the State of California to
establish a community facilities district consisting of the territory described in Attachment "A'
hereto and incorporated herein by this reference, which the City Council hereby determines shall
be known as "Community Facilities District No. 2020-1 (McCall tt4esa) of the City of Menifee"
("Community Facilities District No. 2020-1" or the "District") pursuant to the Mello-Roos
Community Facilities Act of 1982, as amended, commencing with Section 53311 of the
Government Code (the "Act") to finance (1) the purchase, construction, modification, expansion,
improvement or rehabilitation of certain real or other tangible property described in Attachment
"B" hereto and incorporated herein by this reference, including all furnishings, equipment and
supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five
years or longer, and (2) the incidental expenses to be incurred in connection with financing the
Facilities and forming and administering the District (the "lncidental Expenses:); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the
Facilities and the lncidental Expenses for Community Facilities District No. 2020-1; and
WHEREAS, it is the intention of the City Council to consider financing the Facilities and
the lncidental Expenses through the formation of Community Facilities District No. 2020-1 and
the issuance of bonded indebtedness in an amount not to exceed $18,000,000 with respect to
the Facilities and the lncidental Expenses and the levy of a special tax to pay for the Facilities
and the Incidental Expenses (the "Special Tax") and to pay debt service on the bonded
indebtedness, provided that the bond sale and such Special Tax levy are approved at an election
to be held within the boundaries of Community Facilities District No. 2020-1; and
WHEREAS, the City desires to enter into a reimbursement agreement with Lennar Homes
of California, lnc., a California corporation (the "Developer"), the form of which is on file with the
City Clerk (the "Reimbursement Agreement"), to provide for the reimbursement of certain amounts
advanced by the Developer in connection with the formation of the District; and
WHEREAS, the District and the Developer propose to enter into joint community facilities
agreements (the "JCFAs")with each of Eastern MunicipalWater District (the "Water District") and
Romoland School District (the "School District") relating to certain facilities proposed to be
financed by the District and owned and operated by the Water District and the School District, as
applicable, and the District expects to enter into the JCFAs prior to the approval of the issuance
of bonds pursuant to the Act.
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NOW, THEREFORE, THE GITY COUNCIL OF THE GITY OF MENIFEE DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
1.The above recitals are true and correct.
2. A community facilities district is proposed to be established under the terms of the
Act. lt is further proposed that the boundaries of the community facilities district shall be the legal
boundaries as described in Attachment "A" hereto, which boundaries shall, upon recordation of
the boundary map for the District, include the entirety of any parcel subject to taxation by the
District, and as depicted on the map of the proposed Community Facilities District No. 2020-1
which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of
the District and record it with all proper endorsements thereon with the Assessor-County Clerk-
Recorder of the County of Riverside within 15 days afterthe adoption of this resolution, all as
required by Section 3111 of the Streets and Highways Code of the State of California.
3. The name of the proposed community facilities district shall be "Community
Facilities District No. 2020-1 (McCall Mesa) of the City of Menifee."
4. The Facilities proposed to be provided within Community Facilities District No.
2O2O-1are facilities as defined in the Act, which the City, the Water District and the School District,
with respect to certain water and sewer facilities and school facilities, as applicable, are authorized
by law to construct, acquire, own and operate. The City Council hereby finds and determines that
the description of the Facilities herein is sufficiently informative to allow taxpayers within the
proposed District to understand what the funds of the District may be used to finance. The
lncidental Expenses expected to be incurred include the cost of planning and designing the
Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special
Tax within the proposed District. The Facilities may be acquired from one or more of the property
owners within the District as completed public improvements or may be constructed from bond or
SpecialTax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed facilities
pursuantto Section 53313.5 and Section 53316.2 oras discrete portions or phases pursuantto
Section 53313.51 of the Act. Any portion of the Facilities may be financed through a lease or
lease-purchase arrangement if the District hereafter determines that such arrangement is of
benefit to the District.
5. Except where funds are otherwise available, it is the intention of the City Council
to levy annually in accordance with the procedures contained in the Act the Special Tax, secured
by recordation of a continuing lien against all nonexempt real property in the District, sufficient to
pay for: (i) the Facilities and lncidental Expenses; and (ii) the principal and interest and other
periodic costs on bonds or other indebtedness issued to finance the Facilities and lncidental
Expenses, including the establishment and replenishment of any reserve funds deemed
necessary by the District, and any remarketing, credit enhancement and liquidity facility fees
(including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
The rate and method of apportionment and manner of collection of the Special Tax are described
in detail in Attachment "C" attached hereto, which Attachment "C" is incorporated herein by this
reference. Attachment "C" allows each landowner within the District to estimate the maximum
amount of the Special Tax that may be levied against each parcel. ln the first year in which such
Special Tax is levied, the levy shall include an amount sufficient to repay to the District all
amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest
thereon.
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lf the Special Tax is levied against any parcel used for private residential purposes, (i) the
maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and
established not later than the date on which the parcel is first subject to the Special Tax because
of its use for private residential purposes and shall not be increased over time, except as set forth
in Attachment'C" hereto, (ii)such Special Tax shall not be levied after fiscal year 2064-65, as
described in Attachment "C" hereto, and (iii) under no circumstances will the Special Tax levied
in any fiscal year against any such parcel used for private residential uses be increased as a
consequence of delinquency or default by the owner or owners of any other parcel or parcels
within the District by more than ten percent (10o/o) above the amount that would have been levied
in that fiscal year had there never been any such delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within
proposed Community Facilities District No. 2020-1 will place on the Facilities and on the benefit
that each parcel derives from the right to access the Facilities. The City Council hereby
determines that the proposed Facilities are necessary to meet the increased demand placed upon
the City and the existing infrastructure in the City as a result of the development of the land
proposed for inclusion in the District. The City Council hereby determines the rate and method of
apportionment of the special tax with respect to the Special Tax set forth in Attachment "C" to be
reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership
of real property. ln the event that a portion of the property within Community Facilities District No.
2020-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax
specified on Attachment "C," the City Council shall, on behalf of Community Facilities District No.
2020-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for
a parcel as set forth in Attachment "C," to the extent necessary upon the remaining property within
proposed Community Facilities District No. 2020-1 which is not exempt in order to yield the
Special Tax revenues required for the purposes described in this Section 5. The obligation to pay
the Special Tax may be prepaid only as set forth in Section G of Attachment "C" hereto.
6. A public hearing (the "Hearing") on the establishment of the proposed Community
Facilities District No. 2020-1, the proposed rate and method of apportionment of the Special Tax
and the proposed issuance of bonds to finance the Facilities and the lncidental Expenses shall
be held at 6:00 p.m., or as soon thereafter as practicable, on July 15,2020, at the City Council
Chambers, 29844 Haun Road, Menifee, California. Should the City Council determine to form
the District, a special election will be held to authorize the issuance of the bonds and the levy of
the specialtax in accordance with the procedures contained in Government Code Section 53326.
lf held, the proposed voting procedure at the election will be a landowner vote with each
landowner who is the owner of record of land within the District at the close of the Hearing, or the
authorized representative thereof, having one vote for each acre or portion thereof owned within
the proposed District. Ballots for the special election may be distributed by mail or by personal
service.
7. At the time and place set forth above for the Hearing, the City Council will receive
testimony as to whether the proposed Community Facilities District No. 2020-1 shall be
established and as to the method of apportionment of the special tax and shall consider.
(a) if an ad valorem property tax is currently being levied on property within
proposed Community Facilities District No. 2020-1 for the exclusive purpose of paying
principal of or interest on bonds, lease payments or other indebtedness incurred to finance
construction of capital facilities; and
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(b) if the capital facilities to be financed and constructed by Community
Facilities District No. 2020-1 will provide the same services as were provided by the capital
facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b)
above, it will consider appropriate action to determine whether the total annual amount of
ad valorem property tax revenue due from parcels within Community Facilities District No.
2020-1, for purposes of paying principal and interest on the debt identified in subsection
(a) above, shall not be increased after the date on which Community Facilities District No.
2O2O-1 established, or after a later date determined by the City Council with the
concurrence of the legislative body which levied the property tax in question.
8. At the time and place set forth above for the Hearing, any interested person,
including all persons owning lands or registered to vote within proposed Community Facilities
District No. 2020-1, may appear and be heard.
9. Each City officer who is or will be responsible for providing the Facilities within
proposed Community Facilities District No. 2020-1, if it is established, is hereby directed to study
the proposed District and, at or before the time of the above-mentioned Hearing, file a report with
the City Council containing a brief description of the public facilities by type which will in his or her
opinion be required to meet adequately the needs of Community Facilities District No. 2020-1 and
an estimate of the cost of providing those public facilities, including the cost of environmental
evaluations of such facilities and an estimate of the fair and reasonable cost of any lncidental
Expenses to be incurred.
10. The District may accept advances of funds or work-in-kind from any source,
including, but not limited to, private persons or private entities, for any authorized purpose,
including, but not limited to, paying any cost incurred in creating Community Facilities District No.
2020-1. The District may enter into an agreement with the person or entity advancing the funds
or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or
entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City
Council, with or without interest. The City intends to enter into a Reimbursement Agreement (as
defined herein) and an Acquisition, Construction and Funding Agreement with the Developer to
document the conditions for repayment of amounts or work-in-kind advanced by the Developer.
11. The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing
pursuant to Section 6061 of the Government Code in a newspaper of general circulation published
in the area of proposed Community Facilities District No. 2020-1 . The City Clerk is further directed
to mail a copy of the Notice to each of the landowners within the boundaries of the District at least
15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution,
the time and place of the Hearing, a statement that the testimony of all interested persons or
taxpayers will be heard, a description of the protest rights of the registered voters and landowners
in the proposed district and a description of the proposed voting procedure for the election
required by the Act. Such publication shall be completed at least seven (7) days prior to the date
of the Hearing.
12. The reasonably expected maximum principal amount of the bonded indebtedness
to be incurred by the District for the Facilities and lncidental Expenses is Eighteen Million Dollars
($1B,ooo,o00).
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13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the
City Manager, the Deputy City Manager, or their written designees are hereby authorized and
directed to execute and deliver the Reimbursement Agreement in the form on file with the City
Clerk with such changes, insertions and omissions as may be approved by the officer or officers
executing such agreement, said execution being conclusive evidence of such approval.
14. Except to the extent limited in any bond resolution or trust indenture related to the
issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in
Section 53344.1 of the Act (relating to tenders in full or partial payment).
15. This Resolution shall be effective upon its adoption
PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting
held on this 20 day of May,2020.
ATTEST:APPROVED:
h ng City Biil n
APPROVED AS TO FORM:
Melching,Attorney
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a/
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ATTACHMENT A
BOUNDARY MAP
PROPOSED BOUNDARY MAP
colt[u]ilTY FAcrLtnEs DtsrR]cr ilo. 2020-r(ilccrl.L llEsa,
CITY OF I'EX|rEE
@uxTY of RryERSto€,STATE dr ClurOntrlrutc raro c d ot m
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ATTACHMENT B
Types of Facilities to Be
Financed by Community
F'acilities District No. 2020-1 (McCall Mesa) of the City of Menifee
The proposed types of facilities and expenses to be financed by the District include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement of
(i) drainage, library, park, roadway, traffrc, administration and general government facilities,
animal shelter facilities, fire and safety, law enforcement, and other public facilities of the City,
including the foregoing public facilities which are included in the City's fee programs with respect
to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act
of 1982, as amended (the "City Facilities"); (ii) water and sewer facilities including the acquisition
of capacity in the sewer system and/or water system of Eastern Municipal Water District which
are included in Eastern Municipal Water District's water and sewer capacity and connection fee
programs (the "Water District Facilities"), (iii) interim and permanent school facilities of
Romoland School District and Perris Union High School District, including classrooms, multi-
purpose facilities, administration and auxiliary space at school facilities, athletic fields,
playgrounds and recreational facilities and improvements thereto, landscaping, access roadways,
drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including
technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least
five (5) years at such school facilities (the "School Facilities"), and (iv) electrical utility
undergrounding and dry utilities (the "Utilities"), (and together, with the City Facilities, Water
Facilities, and School Facilities, the "Facilities"), and all appurtenances and appurtenant work in
connection with the foregoing Facilities, including the cost of engineering, planning, designing,
materials testing, coordination, construction staking, construction management and supervision for
such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
124/031858-0027
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO.2020-1 (McCALL MESA)
OF THE CITY OF MENIFEE
[See attached]
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RATE AHO f,4ETHOO OF APPORNOHMETfT OF SPSCUTLTAXES FOR
coMMU?'ilTY FACtttTtES DISTRICT I'lO. I0IO-! IMCCALL MESAI
OF THE CIW OF MCIIITEE
A Special Tax (al[ capitalired terms not o*rerwise defined herein ere defined in S€rtifii A, 'Definitions',
beiour) shall be appiicabre to each fusessor's Parrel of Tarable Proprty locted witfrin the boundaries of
ttre City of Menifee Comrnunity FacilGies Dlstrict l{o. 2020.1 {McCatl Mesa) ('CFD Ho- 202$'1"). The
aryrount of Special Tar to be levied in eadr Fiscai Year on an Assessor"s Parcel shall be determined by the
City Council of the City of Men#ee, Ecting in its capacity a! the legistetive tpaf of CFO No. 2020-1. by
applying the appropriile Spe€iai Ta* for De,..eloped Property, Approved Property, Underreloped
Propercy, and Frouisional Underreloped Prope,rtl drat is not Exempt Property as set fordr betore'. Alt of
the real prop€rty, unless erempted by law or by th* pluvisiotrs hereof in Section F, shail be texed for the
pwposes, to the ert€nt and in the manner herein proviled.
A, DEFINITIONS
The terms hereinafter set forth have the following meanings:
or oAcreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map,
or lf the land area rs not shown on an Assessor's Parcel Map, the land area shown on the applicable final
map, parcel map, con'dominium ptan, or sther recorded parcel map or instrument- The square foot ge
of an Assessor's Parcel is equai to tfie Acreag€ multiptied by 43,56O.
"Ad- meanr the MelloRoos Community Facilities Afi of 1982, as amended. being Chapter 2.5
(commenciog u'ith Se<tiofl gllf ll of Part I qf Division 2 of lltle 5 of the Gowrnment Code of dre Strte
of Callifornia.
"Mminirtrative Erpenses" meanr the following actual or reesonabFf estimated costs directly related to
rte edmin8tration of CFD Ho. 20lGl: fie casts of computing the Special Taxes and preparing the
Spe€ial Tar roilection *hedules iwhether by tfre City or designee thereof ff bothi; the costs of colhfting
the Specral Taxes (rvhettrer by the City or otfierwisei; ttra cost.s of r€mitthg Special Taxer to the Trustee;
*re costs of the Trustee {including legal counsetl in the discharge ol the duties reguired of it under the
lndenture; the costs to the Cfiv, CFD l{o. 2020-1 or any desiglee thereof of complying urith arbitrage
rebate require{nents; the costs to the City, CFE Ho. 201S1 or arry designec tftereo{ of complyng wittr
contrnuing disclosure reguirements of the Crty, CFD No. 2020-1 and any major property owner
associated with applicable federal and sEte securities laws and th€ A(t; the costs essocrated with
prepannE Special Tar diccrosure statements and responding to public inquiries regarding the Special
Tares; the cost5 of the City, CFD Ho. 202G7 or any designee thereof related to an epeal of the Special
Tax; the costs associated oith the release ol funds frwn an elcrour eccount; and the Ciq/s anraral
admmistration fees end third partl' erpenses- Administration Erpenses shall allso indiude arno{.rnts
estimated by the CFD Adminirtrator or adyanred bV the CitI or CFD No. ?OZ["J-.L for any other
administratiue purposes of tfD l{o. 202G1, includirqg attornet's fees and other costs related to
commencing and pursuing to cornpletaon anyforeclosure of del'rnquent SpecialTares.
"Approred Property' means ail Assessor's Parcels of Taxable Property: (il tttet are incfuded in a Fhal
Map that w.as rerorded prior to tte January 1'r preceding the Fisfirl Year in which the SpecialTar is being
levred, iii! that have an asrigrred Assessor"s Parcel Nurnber from t{re Cor.wrty shourn on an Assessol's
Parce lllap for the individual lot included on the Final Map, and [iii) tfrat have not been issued a building
permit on or before lvlay ld preceding the Frscat Year ln which the Special Tar b being levied.
ctty of Mcnifcc
CdDmurity fectitjies txstrict tlo- 2OZl>.1 (rrlEcdl i{{5il
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'Deteloped Properqa meln3 all Assessor's Parcels that (il are induded in a Final Mag tlat was
recorded prior to tfie Januery 1{ preceding the Fiscat Yeer in uhidr tie Special Tar is heing levied, and
ili! a Buii,ding Perrnit for neu (onstruction waE issued on or before Mey l" preceding rfie FiscEl Year in
uthich the SpecialTa'r ir being levied.
"Exempt Property" means ali Assessol's Parcets desigrrated as being exempt from Special Taxes as
provided for in Sectioo F.
"Finel Map" means a subdivision of propertl' by recordation of a final map, parcel map, or lot line
adjustment, purruant to the Subdivision Map Act (California Governrnent Code.Section 6,5410 et seg.! or
recordation of a Condominium Plan that rreates individua lots for which Buifding Permits may be issued
,aithout fu rthe r s ubdivisian.
"Fbcal Yer' means the period cornmencing m fuly l{ of any year and eodirg the folbwing June l}0F
"lndentrre' flieani the hdenture. fiscal agent agreemert, resolution or other instrument pursuant to
vrhich Eonds are iszued, ar nnodified, arnended end,/or gupplemented from tme to tim€, and any
instrurnent reptacing or supp.lenrnting the same.
'[and Use (ategory' meanr anv of the rategones isted in Tab,e 1 of Senrcn D.
"Maximum Special lax" means for eacfi Assessors Parcel, the rnaximum Special Ta:q determined ln
accordante with Section D be'ow, that can be le,.'ied bv CFD No. 202G1 on such Ass€ssofs Parcel.
'Hultifemity Propertf ,naans all Assessor/s Parcels of Deueloped Property fior whidr e Building Permrt
has been issued for the p.rrpose o{ construrting a building or hrildings comprised of attrdred
Besidential Units availabie for rental by the EFnerel public, not for sale to an end user, and under
c{xnmon rl}anagement, as determined by the CFD Admtnirtrator.
"llon{esklentiC Propertf meens all Assessor's Parcels of Dey€lop€d Property for whidr a Euitdhg
PermitfsJ ras bsrred foc a noo-residcotiei ure. The CfD Administrator stall make dre determhation if
an Aseeasor's Farcel G l{on-ftesidential Progertv-
'Partiel Prepeymcnt Amoufi' rneans tle ermorrnt requircd to prcp.y a ponion of thr Special Tar
ohligatlm for an Asse$o/s Parcel. as described in Sectbn G.2.
'Frepayment Amounf rne.ns tfie amount required to prepay the Special Tax obligatim in full for an
Assesso{'s Parcel, as described in S€ction G.1-
"Provisional Undeveloped Propcrty" meens all Assessor"E Parrels of Tarable Propcrtl, that would
city of M€niEc
EdDrlrurlty facilities [ristrict Bo.2o2o-1 (trcccl Meml
124103 1858-0027
14884977.3 a05/19/20 c-3
PaEe l
'Proportionetcly/ means for Taxable Property that is {iJ Developed Property, thrt the ratio of the rcnral
Spe€ial Tax levrl to the Spe(iai Tax is th€ sam€ for alf Assessor's Parcels of Derrebped Property, (ii)
Approved Property. that the ratio of tfie actual Special Tax lary to the Maximum Special Tax is the samefor al! Assesso{'s Parcels of Approved Prop€rty, and (iiil Undeteloped Property or Provisional
Undeveloped Property, Srat the ratio of the artuel SpecialTar lety per Acre to the Mrximun Sgecial Tar
per Acre is tfie same for all Assessor's Parrels of Undeveloped Progcrty or Provisional Unde'reloped
Property, ar apglicable.
otfierwise be classified as Exempt Property pursusnt to the provisions of Section F, but cannot be
classified as Erempt Property because to do so would be redure the Acreage of all Taxable Property
below the required minimum Acreage set forth in Section F.
"Residential Property' means all Assessor's Parcels of Developed Property for which a Building Permit
has been issued for purposes of constructint one or more Residemial Units.
"ftesidential Unif 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 CFD Adminrstrator.
'Singl€ Family Residential 9roperty, me.ns all Assessol's Parcels of Residential Property other than
Multifamily Property.
"Speciel Tax" or 'Special Taxes" means any of the special taxes authorized to be tevied within Cf D No
202U1 pursuant to dre Act to fund the Special Tax Requirement.
"Sp€ciC Tax Requirement' means the amount required in any Fiscal Year to pay: (i) the debt service or
the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year,
(ii) Admhistrative Expenses, (iii) the costs associated with the relea* of fundsfrom an escrow eccount,
(iv) any arnount requied to replenish any reserve funds established under the lndenture in association
with the Bonds to the ertent that replenbhment has not been included in the comprtation of the
Special Tax Requirernent in a previous Fiscal Year, (v) to cure any delinquencies in the amount of
principal or intereEt on the Bonds that occurred in a previous Fiscal Year, and (vi) for the collection or
accumulaton of funds for the acquisition or construction of fecilities authorized by CFD No. 2020-1 or
the payment of debt services on Eonds anticipated to be issued, provided that the inclusion of suctr
amount does not cause an increase in the levy of Special Tax on Apprwed Property or Undeveloped
Property as set forth in Steps Two or Three of Section E., less (viil any amounts available to pay debt
service or other periodic costs on the gonds pursuant to the lndenture.
"Taxable Property'means ali Assessor's Parcels within CFD No. 202G1, which are not Exempt Properry
"Tarable Unif means either a Residential Unit or an Acre.
'Trustee'mean5 the trustee, fiscai aEent, or paying agent under the lndenture
"Undwelopcd Property' means all Assessor's Parcels of Taxeble Property which are not Developed
Property, Approved Property, or Provisional Undeveroped Property.
B. SPE(IAL TAX
Commencing Fiscal Year 2020-2021 and for each subsequent Fiscal Year, the City Council shall levy
Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax
Requirernent.
C. ASSIGNMENT TO LAND U5€ CATEGORY fOR SPECIAT TAX
Each Fiscal Year, beginning with Fiscal Year 202G2021, each Assessor's Parcel wrthin CFD No. 2020-1
shall be classified as Taxable Property or Exempt Property. ln addition, each fusessor's Parcel of Taxabre
Cityof Menifrc
Commur*ty fe(liti€s District ilo. 2020-1 (Mccell Mece)
124/03t858-002't
148849'l'1.3 a05 / 19 /20 c-4
PaEe 4
Properrv stallb€ further classified as Derekrped PropertV, ApproyEd Pmpeny, Undeveloped Pmperty or
Provisional Undeveloped PropertV.
Assesso/r Parrels of Developed Property shall further be classified as Residential Property or
Hon4esidential Property. Each Assesso/s Parcel of Residential Property sirall further he dassifred as a
Single Famtly Eesidential Propertl, or Muhifamily Property. Each Assessor's Parcel of Shgle Frmily
Residential Property shall be furtfier assigned to a Land Use Category based on its Building Sguare
Footage.
ln the event that tfrere are parent fusessor's Parcel[s] for whrch one or more Buildirg Permits have beeo
issued and tfie Coumy has not yet assigrecl final Assessol's Parcel Number{s} to the ,ots on which the
ftesidential Unit[rl have been or '.vrlr be built (in accordance syitfi the f inatr i46p or Condomhium P]an]
on suctt perent Assessor's Parcer for a Fiscal Year, the amourt of the Special Tax on rudr parent
Assessor"s Farcel for such Fi5f,al Year shalli be determined as foliows: (fl the CFD Admhastrator shalN first
determine an amount of the Marimum Special Tar telry fior sudr Asse$o/s Parce!, based on the
classrficetion of zuth Asressor"s Partel as Undenet,oped Propert!; (2J dre amoont ol the Spe<iat Tar for
rhe Eesid€ntial Units on sudr Assessor's Parcel for yvhich Building Permtts have been issued strall be
determined based on the Derreloped Froperty Special Tex rates and swh amf,rntr shall bc levied as
Developed PropertV in atcordance with St€p I and, if applicable, Step 4 of S€ction E below; ard [1] the
.mount of the Spedet Tar lerry on the Tarable PropertV in sudr Assessot's Parcel not flbj€(t to the
Special Tar levy in cfause l2l shalt be egual to: {A} the percentage of the Maximum Special Tax rate
levaed nt Undeveloped Property pursuart to Step 3 of Section E below, nilltiplied bV the toel of the
amount deterrnined in clause {l}, tess {B) the amount determined ir <lause (2).
O, MAXIMUM sP€C]AL TAX
l. Developed Property
The Maximurn Special Tar for each Assessor's Parcel of Single family Sesidentlal Progerty in any
Fiscal Year she$l be the greater of {i} the Assigned Special Tax far such Asse$o/s Perrel or [ii) ttre
Backup Special Tar-
The Maximum Special Tar for eadt Acsessor's Parcel of Muttitamity Property and Hon-Sesidential
Proprty shall be the appli(abt€ AssEned Special Tax described in Tabte I of Section O.
it.Assiened Soecia Tar
Each Fiscai Year, each Assesror's Parcel of Si6gle Family Retidential Property, Muhilamily Property or
Non-Resrdemial Property shatl he subJest to an Assrgned Special Tax. The Assigned Special Tax lor
Fiscal Year 2020-3021 applicable to an fusessor's Parrel of Drr,reloped Prop€rty shall be determined
p.ureuant to Table I belora'.
city of Menifte
Csnmuraty faclities Clistrid Xo- 2ouFI (rlccJl Mes)
t24103 1858-0027
14884977.3 a05/19/20 c-5
Pige 5
9-C0zt6u90e t'LL6n88nt
LZ00-898tt0/vzt
9 agEd(esaw gpow) r-ozoz -oil urlq{o t qli]€J Aurnuturo?
aalten lo Arp
'e.oy led Zb6'aIS Bq ltEqs Eere peguporu ro petueq> rpns ulqlli\ qellEd sJosstsssv
lie rol xel per:edg dn1:eg aqt 'pag,rpour ro pa9ueqr sr deyq teul3 aql p uqr-nd Aue tuana aqt u;
'rolE.rlsrurrupv aqt Aq paurr,uralap se 'uor1e;n:;e: lo aurll aqt le dehl leu!J qrns ul lno pllnq
JaUE $rxa ol papadra Auado.r6 lerlueprsau Alru.reg a8urg lo slafJed slossessv lo Jilqurn1 = 'l
rolerurulurpv aqr Aq paururralep sE'uolleln:ler lo
aufll aql le dew leutJ rpns ur lstxa o] pepadxa lutador3 tellueplsau Ailrue3 apuS lo arBar)v = v
'\\olBq f'O uoll)as lad Auado:g pado;a,lapul lo arf,V.rad xel lerrad5 unullxehl = n
'dey1 ;eug etp qqrl,tl luadol6 llllueplsau
Apure3 ag8ur5 se pegrssEl] aq ot ro pigrssellalred s.rossassy rad xe1 1a-d5 &tPeE = €
:s8uruesru tur*rog1o1 eqt tsneq i^ogE srrr.rel eql
r/(vxn)=s
'elnuxll Eurruollol aql ol tutp.to>fe palelnrlef l1eqs AuadorS lerlueptsag
Apue3 alturg se pa4lssEl) deyl leur1 e urqurvr laf,.red s,rossirssy ue ,ol xe1 ;enedg dn:peg aq1
Fe-rtTIf;6?6iF:-E- 'r
'ieuu aq lteqs Auadord to adAr q)pil ol uolle)otle s.JoteJrstulutpv OJf,
aql 'iatrJed s,rosstsssv aql uo palelot sarroBate3 asn puel tle Jol llun algexEl qfea rol xe1;et>adg
urnurxett aql Jo r.uns aqt eq lleqs ialreJ s,Jossassv ue uo pirnal xel leoedg urnurxp4 aq1 'fuoBare3
asn puel ilrJo ueql eJou uleluol Aeu luadol6 padolanag lo larJed s,Jossirrsv ue sB)uElsut eulos ul
ffi'q
'JBaA ie)srJ rorrd aql u! llega u! lunoue eqrp (96p9'6) ruarrad o,$r & peseaJrut eg
gleqs ,lr.redor3 pado;aaag Jo] aler xel ler>ad5 pautrsry eqr 'IZOZ '1 {nJ tut>uaurutol '1 A;nJ g:ea ug
T?02{r0r uvrA'rvlsrJ
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r rtsvt
00'Eu6'/TsVINtsJlvAyado.r6 ler:uaprsap-uoN'0I
oo'zt6'tI5V/NaJrvAuedo:6 A1tue1t11n6 '5
00'z!9'E5u 'Ds 009'€ ueqt Jalear9NUAuador6 rerluaprseg {rute3 a;8u15'g
00'6{I'ESU'bs OO9'E or g 'bs 1gg'gNU/+ladorS telluaplsau A;tute3 allut5 '1
oo'060'85U'bs OOE'€ o1 g 'bs 1gp'gNUAuadord tertuaprsau llrlrteJ tsl8urS 'g
00'r00'€sU'bs OOO'€ os g 'bs 1gg'7NUluedor6 ierluaprsau {rureg elEu15 '5
oo''98'Esu'Ds 0oz'z or u'Ds To,D'zNUAuador3 lerluaplsau {rure3 agEu15 'g
oo'aL9'25U'bs 0O9'E or U 'bs IoI'eNUAuadord lerlueprsau AIu|eJ BlEurS '€
00'055'zsU'bs 0OI'u or u 'bs 0OB'InuAuadorg lelluaplsiru {rwEJ aFulS 'Z
oo'509'i5$ 'bs m8'I uEql 5s3'lNU.^uadoJd letlulprstsu Altr.lrEJ aiEuts 'I
llun alqexEl
,ad xel 1e;rad5
pautrssy
aSeloo3 arenb5 Sutpl;ngl!un
alqexEl
fuoralE) esn puP'l
Norwithstanding the foregoing, the Bactup Speciat Tax for an Assessor's Parcel of Developer PropertV
for whicfr a c€rlificate of occupancy has been granted m.y not be revised.
ln the euent aflv superreding Final Map is recorded as a Final Map within tfie boundaries of the CFQ
the Badtp SpecialTax for af l Assesror'3 Farcels w'rthin sudr Final Map shall be 917,942 per Acre. The
Backup SpecialTax shall not apdV to Muitifamily Residetrtial Property or Non-Residenti.l Property.
On each fuly 1, cornmencirg luly l, ZOZI, the Backup Special Tar rate shell b€ increased by nuo
perEent {2.0Os6) of the amount in effect in the prior Frscai Year.
2, Aooroyed Propertv
The Marimunn Speciat Tar for ea€ft A5s€ssor's Farrel of Approued Property Grpected to be clesrified
as Single Fattilty ftesidentiel Prof€rtv shall De the Backup Speciel Tax comptrted purslant to S€rtiro
D.1.c above.
The Maximurn Special Tax for each Ass€ssor's Parcel of App.roved Property rut exFcted to be
cassified as Shgle Family Residential Property shatl be 517,9.12 per Acre.
On each July 1, commencing .luly L, 2027, the Maxinum Spccial Tax r.te fr Approrred Property shall
be increased by two percent [2.0095) of the amount in eff€rt in ttre prir Fiscat Year-
l, Undeveloped Prooerty and Frovisional Undeveloped Proqertv
The Maximum Special Tax for eadr Assessor's Parcel d Undeveloped Property and Provision l
U ndeveloped Property sheil be $17 ,942 per ,(rre.
On each .luty 1, cornmencing July L, Z:OZL, the hlarinoum Special Tar rate for Unde'reloped Properry
and Prouirional Underrcloped Properry sfrall be increased by n+o perc€m {2.0{196} of tfie anrotnt in
effect in the prir fiscal Year,
E. METHOD OF APPORTIONMEHT OF THE SPECIAL TAX
Cornmencing Fiscal Year 2020-2021 and for each subsequent Fistal Year, the City Counci! shall levy
Spetia! Tares on atl Taxable Property in accordance with the fotlowhg steps:
Step One: The Special Tax shali be fevied Pro"portionately on each Assessor's Parcel of Oeveloped
Propertl' at up to 10096 of the applirable Assigned Special Tax rates in Teble 1to satisfy
the Spe<iai Tax Requirement.
Step'[-ro lf additional mon€ys ere ns€ded to setisfu fte Specbl Tax Bcquiremert rfter the ffi
step has beefl coop{eted. thE Special Tar shall be lgricd Proportirn.tely oo eadr
Asscssor's Parccl of Aoprotred Prope.rty -t t+ to lOOf d dre Merirurm Special Tar
app{i(able to each such Assesso{'s Parcel as needed to firtisfv the Specielt far
Seqrirrnent.
Srep Three lf addhional rfion€ys are ne€ded to satisfr/ the Spe(bl Tax Rcquirem€nt ifter the first
tvro steps haue been completed, tfie Special Tar *rall be levied Proportionrtely on erdr
Assessor's Parcel of Undeveloped PropertV up to l0o|5 of the Maximum Special Tax
city of mcnifee
ccnmudty Faclities Distrid 'lo- 2020-1 (tlccdl Mccal
t24t03t8s8-0027
14884977.3 a05t19/20 c-7
Page 7
applicable to each such Assessot's Parcel as needed to satisfy the Special Tax
Requirernent.
Step Four:tf additional moneyi are needed to satisfy the Spectat Tax Requirement after the first
three steps have been cornpteted, then the Special Tax ielry on each Assessor's Parcel of
Danetoped Property for which the Maximum Speciat Tax is the Backup Special Tax shail
be increased in equal perrentage5 from the Assigned Special Tax up to 10096 of the
Baclup Special Tax as needed to satisfy the Speciat Tax Requirement.
Step Five tf additional moneyr are needed to satisfy the Speciar Tax Requirement after the first
four steps have been completed, the Special fax shall be levied Proportionately on each
Assesso,'s Parcel of Prorisional Undeveloped Property up to 10Oh of the Maximum
SpecialTax applicable to ea€h such fuserso/s Parcel as needed to satisfy the Special Tax
Requirement.
Notwhhstanding the aborre, under no circumstances will the Special Taxes levied in any Fiscal Year
against any fusessor's Parcel of Residential Property as a result of a delinquency in the Payment of the
Speciat Tax applicable to any other Assessor's Parcel be increased by more than ten percent (10%) above
tfie amount that would have been levied in that Fiscat Year had there never been any such delinquency
or defauh.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the chronological order in whkh the Property becomes
erempt, (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or
restricted in use by the State of California, federal or other local governments, including school distrrcts,
(ii) Assessol's Parcels which are used as places of worship and are exemPt from ad volorem ProPertY
taxes becauge they are owned by a rel-gious org:anization, (iiil Assessor's Parcels which are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association,
(iv) Assessot's Parcels with public or utility easements making impractical their utilization for other than
the purposes set forth in the easement, (v) Assessol's Parcels whkh are privately owned and are
encumbered bry or restricted solely for public ures, or (vi) Assessor's Parcels restricted to other types of
public uses determined by the City Council, provided that no such classrfication would reduce the sum of
all Taxable Property to leis than 42.08 Acres.
Notwithstanding ttre above, the City Council sharl not classify an Assessor's Parcei as Exempt Property if
such ctassification would redu€e the sum of all Taxable Property to lest than 42.08 Acres. Aslessor's
Parcels which cannot be classified as Exempt Property because such classification would reduce the
Arreage of all Taxable Property to less dran 42.08 Acres will be classrfied as Provisionat Undeveloped
Property, and will be subject to Sp€cial Tax pursuant to Step Five in Section E.
6. PREPAYMENT OF SPECIAI TAX
The following additaonal defcritions apply to this Section G:
'CfD Facilities' means 513,0O0,0OO expressed in ?020 dollars, wtricfi shall increase by the Construction
lnflation lndex on luly L,2O2L, and on each July I drereafter, or such lower amount (i) determined by
the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No.
cily of ucoiiee
cannmuilty faclities District Ho.2o20-r {r'lccdl Mefr)
t24/03t858-0027
148849'17.3 a05tt9/20 c-8
PaEe I
202&1, or {iiJ determined by ttre City Council comurrerit}y with a coven.nt drin it willl not issue any
more Bonds to b€ supported by Special Tax ievied under thG Rate and Medrod of Apportionment-
"Gonstruction Fund- meens an account specifically ldentilied in the lndenture orfunctionatlv eguiyalent
ro hold funds, w"hich are available for expenditure to acquire or constnrt fa<ilhies eligible to be fin.nced
by CFD No. 2O2O-1.
'Construction lnflation lnder" means th€ greater of (i) 2ri and (iil the annu.! Frcefltage change in the
Engineering filews-Re<ord fuilding C.ost lnder for the city of Los Angeles. mersured as of the Ca$endar
lear whit*r ends in the previous Fiscal Year. ln the event tfiis inder ceoses to be pr$lished, the
Construction lnfation lndex shall be another index as dctermined by the Crty dtat is reasanably
comparable to tfie Engneering Neurr-Record Building Cost lndex for the city of Los Angn$ee.
'Future Faci5ties Costs' means the CFD Facilities minus facifity costs iv.alatile to be funded, or that
were funded, through erittint constructbfl or esrrorv .((ounts fundcd by fre Outsf.nding Eonds or
Speciat Tares, aod minur ficility costs funded by interest eaminEr oo the Coflstruction Fund artually
earmd prior to the date of prepiymeflt-
'Outctanding Bondt' means all pteviously iszued Eonds ssued and secured by the lerry of Sgecial Tax
trhich will remain outstandirg after the f,rst intereit endlor principal pryrrlefit date fotlowinE the
current Fiscal Year, excluding Bonds to be redeemed at a ldte, date with the proceeds of prir
prepayments of Special Tar.
1, Prepayrnent in full
lle Special Tax o8igation may be prepaid and pennanentfy setisfred fior {il Assessor,s Parels of
Dereloped Property, {iil Assessol's Parcels of Agproved Property or Undeveloped Ptoperty for wfiich a
Buil'ding Pernit has been issued, {iiil Assessor's Parcels of Approved Property or Undeveloped Property
f-or urhidt a Buitding Permit hes not been issued and {iv} Assessor's Parcets of Provirional Undeyeloped
Propertv. The Special Tax obligation applicable to an Assessol's Parcel may be fulty prepaid afld the
obligatim to pav fie Special Tar for such fus€ssor's Percel p€rmanentlv satisf-red as described hecein;
provided that e Prepaym€nt tttily be made onty if there are rrc delinguent SpccialTaxes with respect to
such Assessot's Parcet at the tane of prepayment. An orvner of a n Assessor's Farcel antending tD Ff,epay
the Speciat Tar obligation for sucfr Assessor's Parcel shall provide dre CFD Admhistrator wifi writtefl
notica of intem to prepav, and wltfiin 5 buriness days of receipt of sudr notice, the CFD Mministrator
shal notifu sudt owner of the amount of the non-refundable deposit determined to co\rEr the cost to be
incurred by th€ CFD rr calculating the Prepayment Amount [as detined belowl for the Assessor's Parcet.
Wifiin 15 days of receipt o{ swh non-refundable d€poert, the CFD Admhistrator shall notify sudr owner
of the Prepedmeflt Amount ftr the Assessor's Parcel. PreFayment must be made rEt less thrn 60 dafg
prior to the redefipt,on date for any Bonds to be redeenred sith thr proceeds of eo(h prepaid Special
Tares.
The Prepeyment Amount shal be calculated a: follo,ns irome rapita'iled termE are defrned he o*l
City of trtenifoe
Cqnmurary riclitici t,i5trict l'o- 2O2O.l {}rccdl M€lrJ
124103 1858-0027
148849'77.3 a05l19/20 c-9
Pige 9
Plus
plus
Ph!5
plus
less
Eqlals:
Sond Redernption Amount
Redemption Premium
Future Facilities Amount
Defeasance Amount
Adminisu'ative Fees and Er<penses
Reserve Fund Credit
Prepayrnent Arnount
The Prepayment Amount shall be determined as of the proposed prepayment date as foilows:
1. Confirm that no Special Tar delinquencies apply to such Assessor's Parcel.
2. For an Assessor's Parcel of Developed Property, compute the Maximum Specml Tax for the
fusessor's Parcel. For an Assesso/s Parcel of Approved Property or Undeveloped Property for which
a Building Permit has been issued. compute the Maximum Special Tax for the Assesso/s Parcel as
though it was already designated as Developed Property, based upon the Building Permit which has
been issued for the Assessor's Parcel- For an Assessor's Parcel of Approved Property or
Undweloped Property for which a Building Permit has not been issued, or Provisional Undeveloped
Property, compute the Maximum Speciai Tax for the Assessor's Parcel.
3. Divide the Maximtrn Special Tax derived pursuant to paragraph 2 by the totel emount of
Maximum Special Taxes that could be ievied assuning build out of all Assessor's Parcels of Taxable
Property based on tfie applicable Maximum Special Tax for Assessor's Parcels of Devetoped Property
not ancluding any Assessor's Parcels for whlch the Special Tax obligation har been previously
prepaid-
4. Muhiply the quotient derived pursuant to paragraph 3 by the principai emount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the "Bond Redemption Amounf).
5. Muttiply the Bond Redemption Amount by the appiicabte redemption premium, if any, on the
Ourtanding Bonds to be redeemed (the "Redemption Premium").
5. Determine the Future Facirities Costs.
7. Muttiply the quotieflt derived pursuant to paragraph 3 by the amount determined pursuant to
paragraph 6 to determine the amount of Future Facilities Costs for the Assessor's Parcel (the
'Future Facilities Amoonf ).
8. Detemine the amount needed to pay interest on the Bond Redemption Amount from tfie first
bond interest and/or principal peyment date following the current Fiscal Year until the earliest
redemption date for ltre Outstanding Bonds on which Bonds can be redeemed from Special Tax
prepeyments.
9. Determine the Special Tares levied on the Assessor's Parcel in dre current Fiscal Year whicfi
ha\re not yet been paid.
10. Determine the amount the CFD Administrator reasonably expects to derive from the
investment of the Bond Redemption Amount and the Redemption Premium from the date of
City of Menifee
commurity facliti€s Dastrict tlo- 2o2Gr ([rccall Mesi)
t24/03t8s8-0027
14884977.3 a05/19t20 c-10
Page 10
prepayment until the redemptiofl date for the Outstandhg Bords to be redeemed with the
Prepayment Arnount-
11. Add the amounts derived pursurnt to paragraphs 8 and 9 and subtract the emormt derived
pursuaflt to paragraph L0 {the "Defeasance Amounf).
L2. Vrify the admini$tratit/e fues and erp€nses of tfie CFD, thc (ost to invEst the Prepeyment
Arnount, the cost of redeeming th€ Outstanding 8onds, and the cost of recording noti(?s to
evidence fie prepayrnent of tfie Specbl Tax obligation for the fusecsor's Parcel and tte redemptiro
of Or,rtstanding Eonds {ttre 'Administratirrc Fees and Erpenses').
t3. The reserue fund credh rNthe -Resenre Fund Credit"lstral} equalthe lerser of: lal the exFe<ted
reductioo h the reserve requirement [as defined 'rn the lndenturel, if any, essodetEd with the
redemption of Outstending BonG as a result of the prepayment. or (b! the anpunt derived by
rubtracting the new reservE reguirement (as defined in the lndenture) in effect after the
redemption of ftrtstanding Bonds as a resuft of the prepaynent from the belance in the reserve
fund on the prepayment date, but in no event shall Euch amount be less than zem.
14. The Prepayment Arnount is equaf to the sum of the Bond Redemptim Amount, the
Redernption Premiunr, th€ Futwe Facilhies Amount, the Defeesance Amount and tfie Administratiue
Fees and Erpensesn less the Reserve Fund Credit-
t5. Frsn the Prepavment Amorslt, the Bofld Redemption Amoun! the Redemption Prernium, and
Defeasanre Amount shall be deposited into the appropriate fund as established undertlre lndenture
and be used m redeem Outstanding Boods or mate debt senrice paymems- The Future Facilities
Arnouot shall be deposited into the Construction Ftrnd. The Mminisnative Feec and Expeosel shalrl
be reteined by tfte CFD.
The Prepa'yment Aindrnt may be sufficient to redeem other ttan a 55.Offi increme{rt of Bonds- ln sudr
errEnt, the lncrement aboue 55,0OO or an integrel muRiple tfiereof w'ill be retained in the eppropriate
frrnd established under tfre lndenture to be used with tfie next redernption from other Special Tax
prepaymems of Outstanding Bonds or to mate debt service piyments.
As a result of thc payment of th€ current FBcal Year's Spe<ial Tax leny as determined pursuent to
paragraph 9 above, the CFD Administrator shall rernove the current Fiscal Yea/s Speciel Tar levy for the
Assessor"s Parcel from the Countf rax ro{1. With resp€ct to eny Assessor's Parcel for whidr tlre Special
Tax obl'rgation is prepaid, the Crty Councii sha$l cause a suita *e notice to be recorded in compliance with
rfie ,4ct, to iodircate the prepayment of Special Tax obligetion and the re[ease of the Special Tar lien lor
tfie Assessot's Percel. and the obiigetion to paythe Special Tar for sudr Assessot's Parcel shall cease.
Hotyvithstanding tht fregoing, no Speciai Tax prepaym€nt shell be allossd unless dle amo{rnt of
Maxinrum Special Tax that mag be lerried on alll Assessor's Parcels of Taxable Property after the
praposed prepivm€nt *ill be !t li6g51 1.1 times maxinum annual debt service oo the Bonds th.t |A'ill
rernain outstanding after the prepiyment plus ttre estlrnrted annuafl Adrrinistrative Expcnses.
Tenders of Bonds in prepavment of the Spccial Tax obligation may bc .ccef{d upofi the terrns and
conditions established b,y the City Councii pursuant to tfie Art. However, th€ us€ of Bord tenders sh.tl
only be ailowed on a case-by-case basis as specifical[y approved by the City Councif.
City of lrttanifte
Ciltmudty f.clities fist i(t;ao- 2OZG1 (Moc{l M€r.l
t24t031858-0027
14884977.3 a05/19/20 c-l I
Pate l!
t, Prepayment in Part
The Special Tax obligation for an Assessor's Parcel of Developed Property, Approved Property,
Undevebped Property, or Provtsbnal Undeveloped Property may be partially prepaid. For purposes of
detef,minint the Partial Prepayment Amount, the provisions of Section G.l shall be modified as provided
by the following formula:
PP=((P:-A)xF)+A
These terms have the following meaning:
PP = Partial Prepayment Amount
Pr = the Prepayment Arnount calculated according to Section G.1
F = the percent by which the orvner of the Assesso/s Parcel(s! is partially prepayin6 the
SpecialTax obligatbn
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assesso/s Parcel who desires to partially prepay the Special Tax obl'gatbn for the
Assessor's Parcel shall notify the CFD Administrator of {il such owne/s antent to partiaily prepay the
Special Tax obligatioo, (ii) ttre percentage of the Speciai fax obligation such owner wishes to prepay, and
(iii) tfre company or agency thrt wall be acting as the escrow agent, if any. Within 5 days of receipt of
such noticg the CFD Administrator shall notify such property owner of the amount of the
non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial
Prepayment Amount. Within 15 business days of receipt of such non-refundable deposit, the CFD
Administrator shell notify such owner of the emount of the Partial Prepayment Amount for the
Assessor's Parcel. A Partial Prepayment Amount must b€ made not less than 6O days prior to the
redemption date for the Oumanding Bonds to be redeemed with the proceeds of the Partial
Prepayment funount.
With respect to any Assessor's Parcel for whkh the Special Tax obligation is partially prepaid, the CFD
Administrator shall (i) distribute the Partial Prepayment funount as provided in Paragraph 15 of Srtr,on
G.1, and (ii) indicate in the records of the CFD thet there has been a partial prepayment for the
Assessor's Prcel and that a portion of the Special Tax obiigation equar to the remaining percentage
(1.0O - F) of the appticabre Special Tar will continue to be levred on the AsEessor's Parcel pursuant to
Se€tbn E.
H. TERMINATION Of SPECIAL TAX
For each Fiscal Year that anv Bonds are outstanding the Special Tax rhal; be levied on ali Assessot's
Parcels subject to the Special Tax pursuant to Section E- The Special Tax shall cease not later than the
2042065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year il the CFD
Administrator has determined (i) that all the required interest and principal payments on the CFD No.
202u1 Bonds have been paid; (ii) all authorized facilkies of CFD No. 202G1 have been acquired and all
reimbursements to the developer have been paid. (iii) no delinquent Special Taxes remain uncollected
and (iv) all other obligations of CFD No. 2020-1 have been satasfied.
city of M€nifu€
community facilities oirtrict Ho- 2o2o-1 (Mccell Mere)
124103 1858-0027
14884977.3 a05/19120 c-12
Page 1l
I, MANNEft OF IOLIECTION
The Special Tar sfiall be (ollected in the same manner and at tfie same time as ordhary od volwem
prop€rty teres, provrded, hourever, that CFD No. 2O20-l may collect Special Taxes at e difiErent time or
in a different manner if nece$ary to m€€t Gs finanflaf obligations, and may covenant to foreclose and
may acrualhy fore€xtrre on delinguent Assessor's Parrels as p€rrnitted by the Act.
L ApPEAT.S Of SpECtAt rAXES
Any taxpayer rnay file a written appeal of tfre Special Tarec leuied on hu/her fusrssor's Prrel{sl with
tfre CFD Administrator, provided that the ap.pellant is curem in hisfrer payrnents of Special Taxes.
Dwing pendency of an appeal, all Special Taxes pre.riously levied must be paad oo or before the payment
d.te e3teblGhed wheo the Euy was made. The appeal mun spetifo the reasons wlry thc app€Ueitt
claims the Speclal Tax is in error. The CFD Administrator shall review the appeal, meet witt the
appehent ,f th€ CFD Administrator deems necersary, and adrrise the eppellant of iu determinetion- tf
fte CFD Adrnrnistrator agrees with ttrc appellant, the CFD Adminisrator shall grant a credit to eliminate
or reduce future Special Taxes on the appellant's Assessor's Parce{s}. No refunds of previousty peid
Special Tares shall be made unless approved by the CFD Administrator.
The CFD Administretor shall interpret this Rate and Method of Apportiooment and male determinations
relative to the anntnl leuy and administration of the Special Taxes and any tirpayer who appeals, as
herein specified-
Cilyof Mcnifte
Cqnmurity ferlities txstri<t tro" :ozo-t {Illccall Me5il
r24103 1858-0027
14884977.3 a05/19/20 c-13
PaEe 11
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF MENIFEE
)
)ss
)
l, Sarah A. Manwaring, City Clerk of the City of Menifee, do hereby certify that the foregoing
Resolution No. 20- 891 was duly adopted by the City Council of the City of lvlenifee at a
meeting thereof held on the 20th day of May 2020 by the following vote:
Ayes: Councilmember August, Deines, Sobek, Mayor Pro Tem Liesemeyer, Mayor Zimmerman
Noes: None
Absent: None
Abstain: None
hA.Ma
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