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15-440RESOLUTION NO. 15-440 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES); CALLING AN ELECTION FOR THE PURPOSE OF SUBMITTING THE QUESTION OF THE LEVY OF THE PROPOSED SPECIAL TAX TO THE QUALIFIED ELECTORS OF THE PROPOSED COMMUNITY FACILITIES DISTRICT; AUTHORIZING THE LEVY OF SPECIAL TAXES; AND ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE PROPOSED COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council (the "City Council") of the City of Menifee (the "City"), adopted its Resolution No.15-430, (the "Resolution of Intention") (i) declaring its intention to establish Community Facilities District No. 2015-2 (Maintenance Services) (the "CFD No. 2015-2") pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act"), commencing with Section 53311 of the California Government Code (the "Government Code"), (ii) proposing to levy a special taxes within CFD No. 2015-2 pursuant to the terms of the Act to fund the cost of providing services (the "Services") described in Exhibit A hereto, and (iii) calling a public hearing on the establishment of CFD No. 2015-2 for May 20, 2015; and WHEREAS, before the time for the public hearing, as directed in the Resolution of Intention, Albert A. Webb Associates filed with the City Council the report required by California Government Code Section 53321.5 (the "Hearing Report"); and WHEREAS, a notice of the public hearing was duly published as required by the Act, as evidenced by the affidavit of publication on file with the City Clerk; and WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on May 20, 2015, not earlier than the hour of 7:00 p.m. at the City Council Chambers located at 29714 Haun Road, Menifee, California 92586, relative to the establishment of CFD No. 2015-2; and WHEREAS, at the hearing, the testimony of all interest persons desiring to be heard on the establishment of CFD No. 2015-2, the extent thereof, the furnishing of specified types of services, the proposed special tax, the establishment of an appropriations limit for CFD No. 2015-2, or any other matters set forth in the Resolution of Intention was heard and a full and fair hearing was conducted thereon; and WHEREAS, written protests against the establishment of CFD No. 2015-2, the furnishings of specified type or types of services in CFD No. 2015-2 as listed in the Hearing Report, or the levying of the special tax have not been filed by the owners of one-half or more of the area of land in the territory proposed to be included in CFD No. 2015-2 and not exempt from this special tax; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to establish CFD No. 2015-2 and to submit to the qualified electors of CFD No. 2015-2 the levy of the special tax therein (as such tax is more particularly described in Exhibit B hereto) and the establishment of an appropriations limit for CFD No. 2015-2; and Resolution No. 15-440 Date Adopted: May 20, 2015 Page 4 of 4 WHEREAS, the ballot questions regarding the levy of the special tax and the establishment of the appropriations limit have been combined into a single ballot measure pursuant to Section 53353.5 of the Government Code, as provided in the form of special election ballot attached hereto as Exhibit C and by this reference incorporated herein; and WHEREAS, the Riverside County Registrar of Voters has certified that fewer than 12 persons were registered to vote within the territory of CFO No. 2015-2 as of April 4, 2015, which date is within the 90-day period preceding the close of the hearing; and WHEREAS, the City Council has received a written instrument from each landowner in CFO No. 2015-2 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, RESOLVES, DETERMINES AND ORDERS AS FOLLOWS: Section 1. Recitals. The foregoing recitals are true and correct. Section 2. Community Facilities District Report. The City Council hereby makes the Community Facilities District Report a part of the record of the hearing. Section 3. No Majority Protest. The formation of CFO No. 2015-2 and the levy of the proposed special tax within CFO No. 2015-2 has not been precluded by majority protest pursuant to Section 53324 of the Act. Section 4. Establishment of District. As proposed in the Resolution of Intention, a community facilities district is hereby established pursuant to the Act, designated "Community Facilities District No. 2015-2 (Maintenance Services)." Section 5. Finding of Procedural Regularity. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the formation of CFO No. 2015-2 are valid and in conformity with requirements of the Act. Section 6. Boundaries of CFO No. 2015-2. The boundaries of CFO No. 2015-2 shall be as set forth in the map entitled "Proposed Boundary Map, Community Facilities District No. 2015-2 (Maintenance Services), City of Menifee, County of Riverside, State of California" that was filed with the Riverside County Recorder on April 21, 2015 in Book 78 of Maps of Assessment and Community Facilities Districts, at Page 24, Document No. 2015-0159792. The boundaries of the territory within which any property may annex to CFO No. 2015-2 are more particularly described and shown on that certain map entitled "Boundaries -Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services), City of Menifee, County of Riverside, State of California," that was filed with the Riverside County Recorder on April 21, 2015 in Book 78 of Maps of Assessment and Community Facilities Districts, at Page 25, Document No. 2015-0159793. Section 7. Description of Authorized Services. The Services proposed to be financed by CFO No. 2015-2 are described in Exhibit A attached hereto. The cost of providing the Services includes "incidental expenses," which include costs associated with the creation of CFO No. 2015-2, Resolution No. 15-440 Date Adopted: May 20, 2015 Page 4 of 4 determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFO No. 2015-2. The Services authorized to be financed by CFO No. 2015-2 are in addition to those currently provided in the territory of CFO No. 2015-2 and do not supplant services already available within that territory. Section 8. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of CFO No. 2015-2, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFO No. 2015-2, will be levied annually in CFO No. 2015-2. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. Section 9. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. Section 10. Tax Roll Preparation. The office of the Public Works Director, 29714 Haun Road, City of Menifee, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor's parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. Section 11. Appropriations Limit. The City Council proposes that the appropriations limit, as defined by Article XIII B, Section 8(h), of the Constitution of the State of California, for CFO No. 2015-2 be established in the amount of special taxes collected. Section 12. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Finance Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFO No. 2015-2. Section 13. Special Election; Voting Procedures. The City Council hereby submits the question of levying the special tax and the establishment of the annual appropriations limit for CFO No. 2015-2 to the qualified electors within CFO No. 2015-2, in accordance with and subject to the Act. The special election shall be held on May 20, 2015, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFO No. 2015-2. Because fewer than twelve registered voters resided within CFO No. 2015-2 on April 4, 2015 (a date within the 90 days preceding the close of the public hearing on the establishment of CFO No. 2015-2), the qualified electors shall be the landowners within CFO No. 2015-2, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within CFO No. 2015-2. (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFO No. 2015-2 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. Resolution No. 15~440 Date Adopted: May 20, 2015 Page 4 of 4 (c) Mail Ballot Election. Pursuant to Government Code Section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk's delivery of a ballot to each landowner in CFD No. 2015-2. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to the close of the public hearing on the formation of CFD No. 2015-2 on May 20, 2015. The City Clerk shall have available ballots that may be marked at the City Clerk's office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on May 20, 2015, or when all qualified electors have voted) at the City Council Chambers. At the conclusion of the canvass, the City Clerk shall announce the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. Section 14. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the map of the boundaries of CFO No. 2015-2 in his/her office. Section 15. Lien to Secure Special Tax. Upon a determination by the City Council that two- thirds of the votes cast upon the question of levying the special tax were in favor thereof, the City Clerk shall record the notice of special tax lien provided for in Section 3114.5 of the California Streets and Highways Code. Upon recordation of the notice of special tax lien, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in CFD No. 2015- 2, and this lien shall continue in force and effect until collection of the tax by the City Council ceases. PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 20th Day of May, 2015. ATTEST: APPROVED AS TO FORM: ~lf&11Z Scott A. Mann, Mayor Resolution No. 15-440 Date Adopted: May 20, 2015 Page 4 of 4 EXHIBIT A DESCRIPTION OF SERVICES The services which may be funded with proceeds of the special tax of CFO No. 2015-2, 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-ways, 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; 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, servicing; or both 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 CFO No. 2015-2; as well as local roads within residential subdivisions located within CFO No. 2015-2; and any portions adjacent to the properties within CFO No. 2015-2. 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 Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFO No. 2015-2 or for the benefit of the properties within the boundaries of CFO No. 2015-2, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFO No. 2015-2 only to the extent that they are in addition to those provided in the territory of CFO No. 2015-2 before CFO No. 2015-2 was created. EXHIBIT B COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) RATE AND METHOD OF APPORTIONMENT RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR COMMUNITY FACILITIES DISTRICT NO. 2015-2 (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. 2015-2 (Maintenance Services) (the "CFO No. 2015-2" or "CFO"; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2015, in an amount determined by the City Council of the City of Menifee, acting ex officio as the legislative body of CFO No. 2015-2, by applying the rates and method of apportionment set forth below. All of the real property in CFO No. 2015-2, 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 CFO No. 2015-2 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, CFO No. 2015-2, or any designee thereof associated with fulfilling the CFO No. 2015-2 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Tax; the costs of the City, CFO No. 2015-2 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 salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFO No. 2015-2 for any other administrative purposes of CFO No. 2015-2, 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 of 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. City of Menifee 1 Community Facilities District No. 2015-2 (Maintenance Services) "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 Taxable Property after issuance of a building permit for expansion or renovation of such building. "CFD" or "CFD No. 2015-2" means the City of Menifee Community Facilities District No. 2015-2 (Maintenance Services). "City" has the meaning set forth in the preamble. "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 prior to March 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 1st 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 March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Maximum Special Tax" means the Maximum Special Tax, as determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel within CFD No. 2015- 2. "Multi-Family Residential Property" means any Assessor's Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. "Non-Residential Property'' 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. "Proportionately" means for Taxable Property that is: (i) Developed Property, that the ratio of the actual 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. City of Menifee 2 Community Facilities District No. 2015-2 (Maintenance Services) "Residential Unit" or "R/U" 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 completed Residential Units have been 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. 2015-2 as set forth in the documents adopted by the City Council at the time the CFD was formed. "Single Family Residential Property" means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public. "Special Tax'' 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 Requirement. "Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2015-2 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 Requirement include funds for Bonds. "Taxable Property" means all Assessor's Parcels within CFD No. 2015-2, 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. 2015-2 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 within a subdivision identified by a particular tract number on a Final Map approved for the subdivision. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property. B. ASSIGNMENT TO LAND USE CATEGORIES For each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD No. 2015-2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject City of Menifee 3 Community Facilities District No. 2015-2 (Maintenance Services) 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. For Parcels of undeveloped property zoned for development of single family attached or multi-family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. 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 levied against the 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 identified for the Tract in Table 1 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 levied against the 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 Tax Zone in Table 1 below or as included in Appendix A as each Annexation occurs. a. Developed Property (i) Tax Zone 1 Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel of Taxable Property is shown in Table 1 is shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax for Fiscal Vear 2015-2016 within Tax Zone 1 is identified in Table 1 below: Tract 32277 TABLE 1 MAXIMUM SPECIAL TAX RATES DEVELOPED PROPERTY Land Use Category Single Family Residential Property Taxable Maximum Unit Special Tax R/U $819 (ii) Increase in the Maximum Special Tax City of Menifee 4 Community Facilities District No. 2015-2 (Maintenance Services) On each July 1, commencing on July 1, 2016 the Maximum Special Tax 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 that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax that can be levied for each Land Use 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 Tax Zone 1 The Maximum Special Tax for each Assessor's Parcel of Taxable Property is shown in Table 2 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 2 below: Tract 32277 TABLE 2 MAXIMUM SPECIAL TAX RATES APPROVED PROPERTY Land Use Category Single Family Residential Property Taxable Maximum Unit Special Tax R/U $819 On each July 1, commencing on July 1, 2016 the Maximum Special Tax 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 for each Assessor's Parcel of Taxable Property is shown in Table 3 shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 3 below: Tax Zone Tracts 1 32277 City of Menifee TABLE 3 MAXIMUM SPECIAL TAX RATES UNDEVELOPED PROPERTY Taxable Unit Maximum Special Tax Acre $4,246 Community Facilities District No. 2015-2 (Maintenance Services) 5 On each July 1, commencing on July 1, 2016 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. D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax on all Assessor's Parcels of Taxable Property until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied for each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Assessor's Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement; Second: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps has been completed, the Special Tax shall be levied Proportionately on all Assessor's Parcels of Undeveloped Property up to 100% of the Maximum Special Tax for Undeveloped Property. E. FUTURE ANNEXATIONS It is anticipated that additional properties will be annexed to CFD No. 2015-2 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A. F. TERM OF SPECIAL TAX For each Fiscal Year, the Special Taxes shall be levied as long as the Services are being provided. G. EXEMPTIONS The City shall classify as Exempt Property within CFD No. 2015-2, any Assessor's Parcel in any of the following categories; (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor's Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor's Parcel which is 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. A representative(s) of CFD No. 2015-2 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and City of Menifee 6 Community Facilities District No. 2015-2 (Maintenance Services) oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative'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). 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. 2015-2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations. City of Menifee 7 Community Facilities District No. 2015-2 (Maintenance Services) EXHIBITC CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINETNANCE SERVICES) IMPORTANT OFFICIAL PROPERTY OWNER SPECIAL ELECTION BALLOT (Mailed-Ballot Election) This ballot is for the use of the authorized representative of the following owner of land within the City of Menifee Community Facilities District No. 2015-2 (Maintenance Services) ("CFO No. 2015-2"): Name of Landowner Number of Acres Owned Total Votes Menifee Heights Inv., LLC 158.75 159 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the "Council") of the City of Menifee (the "City"), the above-named landowner is entitled to cast the number of votes shown above under the heading "Total Votes," representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the proposed CFO No. 2015-2, City of Menifee, County of Riverside, State of California. Please advise the City Clerk, at (951) 672-6777 if the landowner name set forth above or below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: Personal Delivery: If by mail, place ballot in the return envelope provided, and mail no later than May 13, 2015. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. If in person, deliver to the City Clerk at any time up to 5:00 p.m. on May 20, 2015, at the Clerk's office at 29714 Haun Road, City of Menifee, CA. 92586. However delivered, this ballot must be received by the Clerk prior to the close of the public hearing on May 20, 2015. Very truly yours, Kathy Bennett City Clerk City of Menifee TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor's Parcel Number!sl: Menifee Heights INV., LLC 372-080-031 Attn: Mike White 3121 Michelson Drive, STE 150 Irvine, CA 92612 CITY OF MENIFEE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) AN "X" OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT MARK "YES" OR "NO" SPECIAL TAX BALLOT MEASURE WITH AN "X": Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates and apportioned as YES ___ _ described in Exhibit B to the Resolution Declaring its Intention to Establish Community Facilities District No. 2015-2 (Maintenance Services) adopted by the City Council on April 15, 2015 (the "Resolution"), which is incorporated herein by this reference, within NO the territory identified on the map entitled "Proposed Boundary Map Community Facilities District No. 2015-2 (Maintenance Services) City of Menifee" to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected? Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on _______ 2015. Menifee Heights Inv., LLC A Delaware Limited Liability Company Signature -Mike White Vice President Scott A. Mann Mayor John V. Denver Mayor Pro Tern Wallace W. Edgerton Council member Greg August Council member Matthew Liesemeyer Counci/member 29714 Haun Road Menifee, CA 92586 Phone 951.672.6777 Fax 951.679.3843 www .cityofmenifee.us STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF MENIFEE ) I, Kathy Bennett, City Clerk of the City of Menifee, do hereby certify that the foregoing Resolution No. 15-440 was duly adopted by the City Council of the City of Menifee at a meeting thereof held on the 20th day of May, 2015 by the following vote: Ayes: Noes: Absent: August, Denver, Edgerton, Liesemeyer, Mann None None Abstain: None ~ Kathy Bennett, City Clerk