24-1460RESOLUTION NO. 24-1460
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2023-2
(CIMARRON RIDGE) OF THE CITY OF MENIFEE, DECLARING ITS INTENTION TO
CONSIDER AMENDING THE RATE AND METHOD OF APPORTIONMENT OF
SPECIAL TAX FOR IMPROVEMENT AREA NO. 2 OF THE DISTRICT
WHEREAS, after a public hearing, on April 19, 2023, the City Council (the "City Council") of the
City of Menifee (the "City") adopted Resolution Nos. 23-1310 (the "Resolution of Formation") and 23-
1311 (the "Resolution to Incur Bonded Indebtedness") which formed Community Facilities District No.
2023-2 (Cimarron Ridge) of the City of Menifee (the "District" or "Community Facilities District No. 2023-
2"), designated two improvement areas therein ("Improvement Area No. 1" and "Improvement Area No
2") and called a special election on April 19, 2023 within each improvement area on three propositions
relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an
appropriations limit for the District, which were approved by more than two-thirds vote by the qualified
electors within each improvement area on April 19, 2023; and
WHEREAS, subsequent to formation, the District received a petition (the "Petition") signed by
Pulte Home Company, LLC, a Michigan limited liability company (the "Owner"), which currently owns all
of the taxable land within Improvement Area No. 2, to initiate certain changes to amend and restate the
original rate and method of apportionment of special tax for Improvement Area No. 2 (the "Original
Improvement Area No. 2 Rate and Method") in the form attached as Exhibit "A" (the "Amended
Improvement Area No. 2 Rate and Method").
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California,
acting as the legislative body of Community Facilities District No. 2023-2 (Cimarron Ridge) of the City of
Menifee, does hereby determine and order as follows
Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the
District.
Section 2 The City Council, acting as the legislative body of the District, declares its intention to
conduct proceedings pursuant to Article 3.5 of the Mello -Roos Community Facilities Act
of 1982, as amended, commencing with Section 53311 of the Government Code (the
"Act") to amend and restate the Original Improvement Area No. 2 Rate and Method, in the
form of the Amended Improvement Area No. 2 Rate and Method attached hereto as
Exhibit "A."
The proposed Amended Improvement Area No. 2 Rate and Method and manner of
collection of the special tax for Improvement Area No. 2 are described in detail in
Exhibit "A" (which attachment is incorporated herein by this reference), and allow each
landowner within Improvement Area No. 2 to estimate the maximum amount that may be
levied against each parcel.
If special taxes of Improvement Area No. 2 are levied against any parcel used for private
residential purposes, (i) the maximum special tax rate shall not be increased over time, (ii)
such tax shall not be levied later than the 2069-70 Fiscal Year and (iii) under no
circumstances will such special tax be increased in any fiscal year as a consequence of
delinquency or default by the owner of any other parcel or parcels within Improvement
Area No. 2 by more than ten percent (10%) above the amount that would have been levied
in that fiscal year had there never been any such delinquencies or defaults.
4887-5925-1655v3/200299-0021
Resolution of Consideration for Change Proceedings for CFD 2023-2 IA 2
The City Council hereby determines the proposed Amended Improvement Area No. 2
Rate and Method 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. In the event that a portion of the
property within Improvement Area No. 2 shall become for any reason exempt, wholly or
partially, from the levy of the special tax specified in the Amended Improvement Area No.
2 Rate and Method, the City Council shall, on behalf of the District, cause the levy to be
increased, subject to the limitation of the maximum special tax for a parcel as set forth in
the Amended Improvement Area No. 2 Rate and Method, to the extent necessary upon
the remaining property within Improvement Area No. 2 that is not exempt in order to yield
the special tax revenues required for the purposes described in this Section. The
obligation to pay special taxes may be prepaid as provided in the proposed Amended
Improvement Area No. 2 Rate and Method, as it be further amended hereafter.
Section 3. A public hearing (the "Hearing") on amending the Original Improvement Area No. 2 Rate
and Method in accordance with the proposed Amended Improvement Area No. 2 Rate
and Method shall be held at 6 p.m., or as soon thereafter as practicable, on August 21,
2024, at the City Council Chambers, 29844 Haun Road, Menifee, California. Should the
City Council determine to take action to effectuate the foregoing, a special election will be
held within Improvement Area No. 2 to authorize the levy of the special tax pursuant to
the proposed Amended Improvement Area No. 2 Rate and Method in accordance with the
procedures contained in Government Code Section 53326. If such election is held, the
proposed voting procedure at the election will be by landowner vote with each landowner
who is the owner of record of land within Improvement Area No. 2 at the close of the
Hearing, or the authorized representative thereof, having one vote for each acre or portion
thereof owned within Improvement Area No. 2. Ballots for the special election may be
distributed by mail or by personal service.
Section 4. At the time and place set forth above for the Hearing, the City Council will receive
testimony regarding amending the Original Improvement Area No. 2 Rate and Method in
accordance with the proposed Amended Improvement Area No. 2 Rate and Method. At
the time and place set forth above for the Hearing, any interested person, including all
persons owning lands or registered to vote within Improvement Area No. 2, may appear
and be heard.
Section 5. 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 Improvement Area No. 2. The City Clerk is further directed to mail a copy of
the Notice to each of the landowners within the boundaries of Improvement Area No. 2 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 Improvement Area No. 2 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.
Section 6. Except as set forth herein, no other amendments or modifications to the District are being
considered at this time.
Section 7. This Resolution shall be effective upon its adoption.
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Resolution of Consideration for Change Proceedings for CFD 2023-2 IA 2
PASSED, APPROVED AND ADOPTED this the 17th day of July, 2024.
Bill Zimme an, Mayor
Stephanie Roseen, Acting City Clerk
Approved as to form:
4887-5925-1655v3/200299-0021 3
EXHIBIT "A"
AMENDED AND RESTATED
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2023-2 (CIMARRON RIDGE)
OF THE CITY OF MENIFEE
(IMPROVEMENT AREA NO. 2)
A Special Tax (all capitalized terms are defined in Section A, "Definitions", below) shall be
applicable to each Assessor's Parcel of Taxable Property within the boundaries of Improvement
Area No. 2 Community Facilities District No. 2023-2 (Cimarron Ridge) of the City of Menifee ("CFD
No. 2023-2 IA 2"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor's
Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the
legislative body of CFD No. 2023-2 IA 2, by applying the appropriate Special Tax for Developed
Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that
is not Exempt Property as set forth below. All the real property, unless exempted by law or by the
provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner
herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Accessory Dwelling Unit" means a residential unit of limited size including a smaller second
unit that shares an Assessor's Parcel with Single Family Residential Property that has a stand-
alone Residential Unit.
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's
Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown
on the applicable final map, parcel map, condominium plan, or other recorded County parcel map
or instrument. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by
43,560.
"Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5
(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the
State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2023-2 IA 2: the costs of computing the Special Taxes
and preparing the Special Tax collection schedules (whether by the City or designee thereof or
both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of
remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the
discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2023-2
IA 2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the
City, CFD No. 2023-2 IA 2 or any designee thereof of complying with disclosure requirements of
the City, CFD No. 2023-2 IA 2 and any major property owner associated with applicable federal
and state securities laws and the Act; the costs associated with preparing Special Tax disclosure
statements and responding to public inquiries regarding the Special Taxes; the costs of the City,
CFD No. 2023-2 IA 2 or any designee thereof related to an appeal of the Special Tax; the costs
associated with the release of funds from an escrow account; and the City's annual administration
fees and third -party expenses. Administration Expenses shall also include amounts estimated by
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the CFD Administrator or advanced by the City or CFD No. 2023-2 IA 2 for any other
administrative purposes of CFD No. 2023-2 IA 2, including attorney's fees and other costs related
to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Amended and Restated Rate and Method of Apportionment" means this Amended and
Restated Rate and Method of Apportionment of Special Taxes for CFD No. 2023-2 IA 2.
"Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the
Special Tax is being levied, (ii) that have an assigned Assessor's Parcel Number from the County
shown on an Assessor's Parcel Map for the individual lot included on the Final Map, and (iii) that
have not been issued a building permit on or before May 1st preceding the Fiscal Year in which
the Special Tax is being levied.
"Assessor's Parcel" means a lot or parcel of land designated on an Assessor's Parcel Map with
an assigned Assessor's Parcel Number.
"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 number assigned to an Assessor's Parcel by the
County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below.
"Backup Special Tax" means the Special Tax of that name described in Section D below.
"Boundary Map" means a recorded map of CFD No. 2023-2 which indicates the boundaries of
the CFD.
"Building Permit" means the first legal document issued by a local agency giving official
permission for new construction. For purposes of this definition, "Building Permit" may or may not
include any subsequent building permit document(s) authorizing new construction on an
Assessor's Parcel that are issued or changed by the City after the first original issuance, as
determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor's
Parcel, provided that following such determination the Maximum Special Tax that may be levied
in each Fiscal Year on all Assessor's Parcels of Taxable Property will be at least 1.1 times annual
debt service on all outstanding CFD No. 2023-2 IA 2 Bonds plus the estimated annual
Administrative Expenses for such Fiscal Year.
"Building Square Footage" or "BSF" means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space, as determined by
reference to the Building Permit for such Assessor's Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following
December 31.
"CFD" or "CFD No. 2023-2" means Community Facilities District No. 2023-2 (Cimarron Ridge)
established by the City under the Act.
"CFD Administrator" means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement, and providing for the levy and collection of the Special
Taxes.
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"CFD No. 2023-2 IA 2" means Improvement Area No. 2 of CFD No. 2023-2 as identified on the
boundary map for CFD No. 2023-2.
"CFD No. 2023-2 IA 2 Bonds" means any obligation to repay a sum of money, including
obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from
government agencies, or loans from banks, other financial institutions, private businesses, or
individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No.
2023-2 IA 2 have been pledged.
"City" means the City of Menifee.
"City Council" means the City Council of the City of Menifee, acting as the Legislative Body of
CFD No. 2023-2 IA 2.
"Condominium Plan" means a condominium plan as set forth in California Civil Code, Section
4285.
"County" means the County of Riverside.
"Developed Property" means all Assessor's Parcels: (i) that are included in a Final Map that
was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being
levied, (ii) that have an Assessor's Parcel Number from the County shown on an Assessor's
Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit
for new construction was issued on or before May 1st preceding the Fiscal Year in which the
Special Tax is being levied.
"Exempt Property" means all Assessor's Parcels designated as being exempt from Special
Taxes as provided for in Section F.
"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 Section 4285 that
creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1st of any year and ending the following
June 30tn
"Indenture" means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which CFD No. 2023-2 IA 2 Bonds are issued, as modified, amended and/or
supplemented from time to time, and any instrument replacing or supplementing the same.
"Land Use Category" means any of the categories listed in Table 1, Table 2, and Table 3 of
Section D.
"Maximum Special Tax" means for each Assessor's Parcel, the maximum Special Tax,
determined in accordance with Section D below, that can be levied by CFD No. 2023-2 IA 2 in
any Fiscal Year on such Assessor's Parcel.
"Multifamily Property" means all Assessor's Parcels of Developed Property for which a Building
Permit has been issued for the purpose of constructing a building or buildings composed of
attached Residential Units available for rental by the general public, not for sale to an end user,
and under common management, as determined by the CFD Administrator.
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"Non -Residential Property" or "NR" means all Assessor's Parcels for which a building permit(s)
was issued or will be issued for a non-residential use. The CFD Administrator shall make the
determination if an Assessor's Parcel is Non -Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special
Tax obligation for an Assessor's Parcel, as described in Section G.2.
"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full
for an Assessor's Parcel, as described in Section G.1.
"Proportionately" means for Taxable Property that is (i) Developed Property, that the ratio of the
actual Special Tax levy to the Assigned Special Tax is the same for all Assessor's 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 Assessor's Parcels of Approved Property, and (iii)
Undeveloped Property, or Provisional 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 Assessor's Parcels of
Undeveloped Property, or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that
would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but
cannot be classified as Exempt Property because to do so would be reduce 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 constructing one or more Residential Units.
"Residential Unit" or "RU" means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the CFD Administrator. An Accessory
Dwelling Unit that shares an Assessor's Parcel with a Single Family Residential Property shall
not be considered a Residential Unit for purposes of this Amended and Restated Rate and Method
of Apportionment.
"Single Family Residential Property" means all Assessor's Parcels of Residential Property
other than Multifamily Property.
"Special Tax" or "Special Taxes" means any of the special taxes authorized to be levied within
CFD No. 2023-2 IA 2 pursuant to the Act to fund the Special Tax Requirement.
"Special Tax Requirement" means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on all outstanding CFD No. 2023-2 IA 2 Bonds due in the Calendar
Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated
with the release of funds from an escrow account, (iv) any amount required to replenish any
reserve funds established in association with the CFD No. 2023-2 IA 2 Bonds, (v) an amount
equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD
No. 2023-2 IA 2 Bonds anticipated to be issued, and (vii) for the collection or accumulation of
funds for the acquisition or construction of facilities authorized by CFD No. 2023-2 IA 2, provided
that the inclusion of such amount does not cause an increase in the levy of Special Tax on
Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E, less
(vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2023-2 IA
2 Bonds pursuant to the Indenture.
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"Tax Zone(s)" means the geographical area(s) within CFD No. 2023-2 IA 2 identified as Tax
Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Amended Boundary Map.
"Tax Zone 1" means all property located within CFD No. 2023-2 IA 2 and identified on the
Boundary Map as Tax Zone 1.
"Tax Zone 2" means all property located within CFD No. 2023-2 IA 2 and identified on the
Boundary Map as Tax Zone 2.
"Tax Zone 3" means all property located within CFD No. 2023-2 IA 2 and identified on the
Boundary Map as Tax Zone 3.
"Taxable Property" means all Assessor's Parcels within CFD No. 2023-2 IA 2, which are not
Exempt Property.
"Taxable Unit" means either a Residential Unit or an Acre.
"Trustee" means the trustee, fiscal agent, or paying agent under the Indenture.
"Undeveloped Property" means all Assessor's Parcels of Taxable Property that are not
Developed Property, Approved Property, or Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2023-2024 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 Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2023-2024, each Assessor's Parcel within CFD No.
2023-2 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, each
Assessor's Parcel of Taxable Property shall be further classified as Developed Property,
Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition,
each Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property or
Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone
2, or Tax Zone 3.
Assessor's Parcels of Developed Property shall further be classified as Residential Property or
Non -Residential Property. Each Assessor's Parcel of Residential Property shall further be
classified as Single Family Residential Property or Multifamily Property. Each Assessor's Parcel
of Single Family Residential Property shall be further categorized into Land Use Categories based
on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.
In the event that an Assessor's Parcel for which one or more Building Permits have been issued
and the County has not yet assigned final Assessor's Parcel Number(s) to the Residential Unit(s)
(in accordance with the Final Map or Condominium Plan) on such Assessor's Parcel, the amount
of the Special Tax levy on such Assessor's Parcel for each Fiscal Year shall be determined as
follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax
levy for such Assessor's Parcel, based on the classification of such Assessor's Parcel as
Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such
Assessor's Parcel for which Building Permits have been issued shall be determined based on the
Assigned Special Tax rates for Developed Property and shall be taxed as Developed Property in
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accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the
Acreage of Taxable Property in such Assessor's Parcel not subject to the Special Tax levy in
clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all
other Undeveloped Property multiplied by the total of the amount determined in clause (1), less
the amount determined in clause (2).
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor's Parcel of Single Family Residential Property in
any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special
Tax.
The Maximum Special Tax for each Assessor's Parcel of Non -Residential or Multifamily
Residential Property shall be the applicable Assigned Special Tax described in Table 1, Table
2, and Table 3 of Section D.
Assigned Special Tax
Each Fiscal Year, each Assessor's Parcel of Single Family Residential Property, Multifamily
Property or Non -Residential shall be subject to an Assigned Special Tax. The Assigned Special
Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to
Table 1, Table 2, and Table 3 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
(FISCAL YEAR 2023-2024)
Land Use Category
Taxable
Unit
Building Square Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential Property
RU
Less than 2,300 sq. ft
$2,138.00
2. Single Family Residential Property
RU
Greater than 2,300 s . ft
$2,301.00
3. Multifamily Property
Acre
N/A
$11,866.00
4. Non -Residential Property
Acre
N/A
$11,866.00
On each July 1, commencing July 1, 2024, the Assigned Special Tax rate for Developed
Property in Tax Zone 1 shall be increased by two percent (2.00%) of the amount in effect in
the prior Fiscal Year.
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TABLE 2
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
(FISCAL YEAR 2023-2024)
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single
Family Residential Property
RU
Less than 1,700 sq. ft
$1,634.00
2. Single
Family Residential Property
RU
1,700 sq. ft to 1,900 sq. ft
$1,717.00
3. Single
Family Residential Property
RU
1,901 sq. ft to 2,100 sq. ft
$1,880.00
4. Single
Family Residential Property
RU
2,101 sq. ft to 2,300 sq. ft
$1,947.00
5. Single
Family Residential Property
RU
Greater than 2,300 sq. ft
$2,005.00
6. Multifamily Property
Acre
N/A
$12,468.00
7. Non -Residential Property
Acre
N/A
$12,468.00
On each July 1, commencing July 1, 2024, the Assigned Special Tax rate for Developed
Property in Tax Zone 2 shall be increased by two percent (2.00%) of the amount in effect in
the prior Fiscal Year.
TABLE 3
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 3
(FISCAL YEAR 2023-2024)
Assigned
Special Tax
Taxable
Building Square
Per Taxable
Land Use Category
Unit
Footage
Unit
1. Single Family Residential
$2,414.00
Property
RU
Less than 2,500 sq. ft
2. Single Family Residential
2,500 sq. ft to 2,700 sq
$2,602.00
Property
RU
ft
3. Single Family Residential
2,701 sq. ft to 2,900 sq.
$2,666.00
Property
RU
ft
4. Single Family Residential
2,901 sq. ft to 3,100 sq.
$2,730.00
Property
RU
ft
5. Single Family Residential
3,101 sq. ft to 3,300 sq.
$2,807.00
Property
RU
ft
6. Single Family Residential
Greater than 3,300 sq.
$2,884.00
Property
RU
ft
7. Multifamily Property
Acre
N/A
$13,207.00
8. Non -Residential Property
Acre
N/A
$13,207.00
On each July 1, commencing July 1, 2024, the Assigned Special Tax rate for Developed
Property in Tax Zone 3 shall be increased by two percent (2.00%) of the amount in effect in
the prior Fiscal Year.
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b. 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 levied on an Assessor's Parcel shall be the
sum of the Maximum Special Tax for all Land Use Categories located on the Assessor's Parcel.
The CFD Administrator's allocation to each type of property shall be final.
c. Backup Special Tax
When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final
Map area lies within and the Backup Special Tax for an Assessor's Parcel within the Final Map
classified or to be classified as Single Family Residential Property shall calculated according
to the following formula.
B=(UxA)/L
The terms above have the following meanings:
B = Backup Special Tax per Assessor's Parcel within the Final Map
U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below
A = Acreage of Single Family Residential Property expected to exist in such Final Map at
the time of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of
calculation, as determined by the Administrator.
In the event any portion of the Final Map is changed or modified, the Backup Special Tax for
all Assessor's Parcels within such changed or modified area shall be determined by Table 4
below:
TABLE 4
MAXIMUM SPECIAL TAX PER ACRE
(FISCAL YEAR 2023-2024)
Tax Zone
Maximum Special
Tax per Acre
1
$11,866
2
$12,468
3
$13,207
In the event any superseding Final Map is recorded as a Final Map within the boundaries of
the CFD, the Backup Special Tax for all Assessor's Parcels within such Final Map shall be on
the rate per Acre shown in the table above. The Backup Special Tax shall not apply to
Multifamily Residential Property, or Non -Residential Property.
On each July 1, commencing July 1, 2024, the Backup Special Tax rate shall be increased by
two percent (2.00%) of the amount in effect in the prior Fiscal Year.
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2. Approved Prooert
The Maximum Special Tax for each Assessor's Parcel of Approved Property expected to be
classified as Single Family Residential Property shall be the Backup Special Tax computed
pursuant to Section D.1.c above.
The Maximum Special Tax for each Assessor's Parcel of Approved Property expected to be
classified as Multifamily Residential Property or Non -Residential Property shall be $11,669 per
Acre for Tax Zone 1, $12,468 per Acre for Tax Zone 2, and $13,207 per Acre for Tax Zone 3.
On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Approved
Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal
Year.
Undeveloped Property and Provisional Undeveloped Property that is not Exempt
Property pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor's Parcel of Undeveloped Property and
Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of
$11,669 per Acre for Tax Zone 1, $12,468 per Acre for Tax Zone 2, and $13,207 per Acre for
Tax Zone 3, in each case multiplied by the Acreage of such Assessor's Parcel.
On each July 1, commencing July 1, 2024, the Maximum Special Tax rate for Undeveloped
Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of
the amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2023-2024 and for each subsequent Fiscal Year, the City
Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One The Special Tax shall be levied Proportionately on each Assessor's Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax rate to
satisfy the Special Tax Requirement.
Step Two: 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 Assessor's Parcel of Approved Property at up to 100% of the Maximum
Special Tax applicable to each such Assessor's Parcel as needed to satisfy the
Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, the Special Tax shall be levied
Proportionately on each Assessor's Parcel of Undeveloped Property up to 100%
of the Maximum Special Tax applicable to each such Assessor's Parcel as needed
to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax levy on each
Assessor's Parcel of Developed Property for which the Maximum Special Tax is
the Backup Special Tax shall be increased Proportionately from the Assigned
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Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special
Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the
first four steps have been completed, the Special Tax shall be levied
Proportionately on each Assessor's Parcel of Provisional Undeveloped Property
up to 100% of the Maximum Special Tax applicable to each such Assessor's
Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal
Year against any Assessor's Parcel of Residential Property as a result of a delinquency in the
payment of the Special Tax applicable to any other Assessor's Parcel be increased by more than
ten percent (10%) above the amount that would have been levied in that Fiscal Year had there
never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (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 districts, (ii) Assessor's
Parcels that are used as places of worship and are exempt from ad valorem property taxes
because they are owned by a religious organization, (iii) Assessor's Parcels that are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by a homeowners
association, (iv) Assessor's Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement, (v) Assessor's Parcels that are
privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor's
Parcels restricted to other types of public uses determined by the City Council, provided that no
such classification would reduce the total Acreage of all Taxable Property to less than the amounts
shown in Table 5 below.
TABLE 5
MINIMUM TAXABLE ACRES
Tax Zone
Acres
1
2.10
2
35.40
3
14.90
Notwithstanding the above, the City Council shall not classify an Assessor's Parcel as Exempt
Property if such classification would reduce the total Acreage of all Taxable Property to less than
the Acres shown in Table 5 per Tax Zone. Assessor's Parcels that cannot be classified as Exempt
Property because such classification would reduce the Acreage of all Taxable Property to less
than the Acres shown in Table 5 per Tax Zone will be classified as Provisional Undeveloped
Property, and will be subject to Special Tax pursuant to Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
"CFD Public Facilities" means $10,500,000 expressed in 2023 dollars, which shall increase by
the Construction Inflation Index on July 1, 2024, and on each July 1 thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for CFD No. 2023-2 IA 2, or (ii) determined by the City Council
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concurrently with a covenant that it will not issue any more CFD No. 2023-2 IA 2 Bonds to be
supported by Special Tax levied under this Amended and Restated Rate and Method of
Apportionment.
"Construction Fund" means an account specifically identified in the Indenture or functionally
equivalent to hold funds that are currently available for expenditure to acquire or construct public
facilities eligible to be financed by CFD No. 2023-2 IA 2.
"Construction Inflation Index" means the annual percentage change in the Engineering News -
Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year that
ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction
Inflation Index shall be another index as determined by the City that is reasonably comparable to
the Engineering News -Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs
previously funded from the Construction Fund, (ii) public facility costs available to be funded
through existing construction or escrow accounts funded by the Outstanding Bonds, and (iii)
public facility costs funded by interest earnings on the Construction Fund earned prior to the date
of prepayment.
"Outstanding Bonds" means all previously issued CFD No. 2023-2 IA 2 Bonds secured by the
levy of Special Tax which will remain outstanding after the first interest and/or principal payment
date following the current Fiscal Year, excluding CFD No. 2023-2 IA 2 Bonds to be redeemed
later with the proceeds of prior prepayments of Special Tax.
Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i)
Assessor's Parcels of Developed Property, (ii) Assessor's Parcels of Approved Property or
Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or
Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor's
Parcels of Public Property or Provisional Undeveloped Property that are not Exempt Property
pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor's Parcel
may be fully prepaid and the obligation to pay the Special Tax for such Assessor's Parcel
permanently satisfied as described herein; provided that a prepayment may be made only if there
are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment.
An owner of an Assessor's Parcel intending to prepay the Maximum Special Tax obligation for
such Assessor's Parcel shall provide the CFD Administrator with written notice of intent to prepay,
and within 5 business days of receipt of such notice, the CFD Administrator shall notify such
owner of the amount of the non-refundable deposit determined to cover the cost to be incurred
by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor's Parcel.
Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such
owner of the Prepayment Amount for the Assessor's Parcel. Prepayment must be made not less
than 60 days prior to the redemption date for any Outstanding Bonds to be redeemed with the
proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms
are defined below):
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Bond Redemption Amount
plus
Redemption Premium
plus
Future Facilities Amount
plus
Defeasance Amount
plus
Administrative Fees and Expenses
less
Reserve Fund Credit
Equals:
Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as
follows:
Confirm that no Special Tax delinquencies apply to such Assessor's Parcel.
2. For an Assessor's Parcel of Developed Property, compute the Maximum Special
Tax for the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped
Property for which a Building Permit has been issued, compute the Maximum Special Tax for the
Assessor's Parcel as though it was already designated as Developed Property, based upon the
Building Permit that has been issued for the Assessor's Parcel. For an Assessor's Parcel of
Approved Property or Undeveloped Property for which a Building Permit has not been issued,
Public Property or Provisional Undeveloped Property, compute the Maximum Special Tax for the
Assessor's Parcel.
3. Divide the Maximum Special Tax derived pursuant to Paragraph 2 by the total
amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all
Assessor's Parcels of Taxable Property based on the applicable Maximum Special Tax for
Assessor's Parcels of Developed Property not including any Assessor's Parcels for which the
Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to Paragraph 3 by the principal amount of
the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the "Bond Redemption Amount").
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if
any, on the Outstanding Bonds to be redeemed (the "Redemption Premium").
6. Determine the Future Facilities Costs
7. Multiply the quotient 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 Amount").
8. Determine the amount needed to pay interest on the Bond Redemption Amount
from the first bond interest and/or principal payment date following the current Fiscal Year until
the earliest redemption date for the Outstanding Bonds on which Outstanding Bonds can be
redeemed from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal
Year which have not yet been paid.
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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
prepayment until the redemption date for the Outstanding Bonds to be redeemed with the
Prepayment Amount.
11. Add the amounts derived pursuant to Paragraphs 8 and 9 and subtract the amount
derived pursuant to Paragraph 10 (the "Defeasance Amount").
12. Verify the administrative fees and expenses of the CFD, including the cost of
computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of
redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment
of the Maximum Special Tax obligation for the Assessor's Parcel and the redemption of
Outstanding Bonds (the "Administrative Fees and Expenses").
13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a)
the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated
with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived
by subtracting the new reserve requirement (as defined in the Indenture) in effect after the
redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve
fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the
Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the
Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption
Premium, and Defeasance Amount shall be deposited into the appropriate fund as established
under the Indenture and be used to redeem Outstanding Bonds or make debt service payments.
The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative
Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of
Outstanding Bonds. In such event, the increment above $5,000 or an integral multiple thereof will
be retained in the appropriate fund established under the Indenture to be used with the next
redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service
payments.
As a result of the payment of the current Fiscal Year's Special Tax levy as determined
pursuant to Paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year's
Special Tax levy for the Assessor's Parcel from the County tax roll. With respect to any Assessor's
Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a
suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum
Special Tax obligation and the release of the Special Tax lien for the Assessor's Parcel, and the
obligation to pay the Special Tax for such Assessor's Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the
amount of Maximum Special Tax that may be levied each Fiscal Year on all Assessor's Parcels
of Taxable Property after the proposed prepayment will be at least 1.1 times annual debt service
for such Fiscal Year on the Outstanding Bonds that will remain outstanding after the prepayment
plus the estimated annual Administrative Expenses.
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Tenders of Outstanding Bonds in prepayment of the Maximum Special Tax obligation may
be accepted upon the terms and conditions established by the City Council pursuant to the Act.
However, the use of Bond tenders shall only be allowed on a case -by -case basis as specifically
approved by the City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor's Parcel of Developed Property,
Approved Property or Undeveloped Property may be partially prepaid. For purposes of
determining the partial prepayment amount, the provisions of Section GA shall be modified as
provided by the following formula:
PP = ((PE — A) x F) + A
These terms have the following meaning
PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section GA
F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the
Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section GA
The owner of an Assessor's Parcel who desires to partially prepay the Maximum Special
Tax obligation for the Assessor's Parcel shall notify the CFD Administrator of (i) such owner's
intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum
Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be
acting as the escrow agent, if any. Within 5 days of receipt of such notice, 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 amount of a partial prepayment. Within 15
business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such
owner of the amount of the Partial Prepayment Amount for the Assessor's Parcel. A Partial
Prepayment Amount must be made not less than 60 days prior to the redemption date for the
Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.
With respect to any Assessor's Parcel for which the Maximum Special Tax obligation is
partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as
provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has
been a Partial Prepayment for the Assessor's Parcel and that a portion of the Maximum Special
Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation
will continue to be levied on the Assessor's Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any CFD No. 2023-2 IA 2 Bonds are outstanding the Special Tax shall
be levied on all Assessor's Parcels subject to the Special Tax. The Special Tax shall cease not
later than the 2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier
Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal
payments on the CFD No. 2023-2 IA 2 Bonds have been paid; (ii) all authorized facilities of CFD
No. 2023-2 IA 2 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. 2023-
2 IA 2 have been satisfied.
I. MANNER OF COLLECTION
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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. 2023-2 IA 2 may collect Special Taxes
at a different time or in a different manner if necessary to meet its financial obligations, and may
covenant to foreclose and may actually foreclose on delinquent Assessors Parcels as permitted
by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor's Parcel(s) with
the CFD Administrator, provided that the appellant is current in his/her payments of Special
Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or
before the payment date established when the levy was made. The appeal must specify the
reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review
the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the
appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD
Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's
Assessor's Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Amended and Restated Rate and Method of
Apportionment and make determinations relative to the annual levy and administration of the
Special Taxes and any taxpayer who appeals, as herein specified.
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF MENIFEE )
I, Stephanie Roseen, Acting City Clerk of the City of Menifee, do hereby certify that the
foregoing City Council Resolution No. 24-1460 was duly adopted by the City Council of the City
of Menifee at a meeting thereof held on the 17th Day of July 2024 by the following vote:
Ayes:
Estrada, Deines, Karwin, Sobek, Zimmerman
Noes:
None
Absent:
None
Abstain
None
4Stanie Roseen, Acting City Clerk