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HomeMy WebLinkAbout02-327 - Resolutions RESOLUTION NO. 02-327 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA TO ESTABLISH CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 AND APPROVING A DEPOSIT AND REIMBURSEMENT AGREEMENT RECITALS: WHEREAS, the CITY COUNCIL (the "City Council") of the CITY OF RANCHO CUCAMONGA (the "City") desires to undertake proceedings to establish a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act'), to finance facilities to serve the area of land hereinafter described; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: Intention. The City Council hereby declares its intention to conduct proceedings for the formation of a community facilities district under the terms of the Act with two separate improvement areas designated pursuant to Section 53350 of the Act. SECTION 2: Name of District. The name of the proposed community facilities district is "City of Rancho Cucamonga Community Facilities District No. 2003-01" (the "District') and the improvement areas shall be designated as 'Improvement Area No. 1" and "Improvement Area No. 2." SECTION 3: Boundaries of District. The exterior boundaries of the District, the boundaries of each Improvement Area and the zones therein are shown on those certain maps now on file in the office of the City Clerk entitled "Proposed Boundaries of City of Rancho Cucamonga Community Facilities District No. 2003-01, Improvement Area No. 1" and 'Proposed Boundaries of City of Rancho Cucamonga Community Facilities District No. 2003-01, Improvement Area No. 2", which maps indicate by a boundary line the extent of the territory included in the proposed District, the extent of the territory in each Improvement Area and the extent of the territory in each zone and shall govern for all details as to the extent of the District, each Improvement Area and the zones. Said boundary maps are hereby approved and the boundaries shown therein as describing the extent of the territory to be included in the District, the improvement areas therein and the zones are hereby approved. The City Council finds that said boundary maps Resolution No. 02-327 Page 2 of 52 are in the form and contain the matters prescribed by Section 3110 of the California Streets and Highways Code as required by Section 53328.5 of the Act. On the originals and one copy of each of such maps, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution. The City Clerk shall file the originals of such maps in her office and, within fifteen (15) days after the adoption of this Resolution, the City Clerk shall file a copy of such maps so endorsed in the records of the County Recorder, County of San Bernardino, State of California. SECTION 4: Facilities. The type of public facilities proposed to be provided within the District and to be financed in connection with one or both of the Improvement Areas shall consist of those facilities set forth on Exhibit 'A," attached hereto and incorporated herein by reference (the "Facilities"). The City Council hereby finds that the proposed Facilities are necessary to meet increased demands placed upon the City as a result of development occurring in the District. The Facilities may be acquired from one or more property owners as completed public facilities pursuant to Section 53314.9 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. SECTION 5: Special Tax. a. Except where funds are otherwise available to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the District issued to finance the Facilities, it is the intention of the City Council to levy annually in accordance with procedures contained in the Act a special tax (the "Special Tax") within each Improvement Area of the District sufficient to pay for the costs thereof, including incidental expenses. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the District and will be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties, procedure, sale and lien priority in case of delinquency as applicable for ad valorem property taxes; provided, however, such Special Tax may be collected in such other manner as may be provided by the City Council. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon. Resolution No. 02-327 Page 3 of 52 b. The proposed rates and methods of apportionment of the Special Tax among parcels of real property in each Improvement Area of the District, in sufficient detail to allow each resident or landowner within each Improvement Area of the proposed District to estimate the maximum amount such resident or owner will have to pay, are shown in Exhibit "B," attached hereto and incorporated herein by reference. The City Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit "B" for each proposed Improvement Area to be reasonable. The obligation to pay the Special Tax may be prepaid as set forth in Exhibit"B." c. In the case of any Special Tax to pay for the Facilities to be levied against any parcel used for private residential purposes: (i) the maximum Special Tax shall be specified as a dollar amount which shall be calculated and thereby established not later than the date on which the parcel is first subject to the tax because of its use for private residential purposes and which amount shall not be increased over time over two percent per year; (ii) the tax year after which no further Special Tax subject to this sentence shall be levied or collected shall be as set forth in Exhibit "B" hereto; and (iii) under no circumstances will the Special Tax be levied against any parcel subject to this sentence be increased as a consequence of delinquency or default by the owner of any other parcel within the District by more than 10 percent. For the purposes hereof, a parcel is used for "private residential purposes" not later than the date on which a building permit for private residential use is issued. SECTION 6: Bonds. It is the intent of the City Council, acting as the legislative body of the District, to cause bonds to be issued under the Act on behalf of the Improvement Areas to finance, in whole or in part, the acquisition and/or construction of the Facilities. A series of bonds for Improvement Area No. 1 will be in the aggregate principal amount of not to exceed $16,000,000 and a series of bonds for Improvement Area No. 2 will be in the aggregate principal amount of not to exceed $4,000,000, at a maximum interest rate not in excess of 12 percent per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued, and the term of the bonds of each series shall not exceed 30 years from the date of issuance of such series of bonds. Resolution No. 02-327 Page 4 of 52 SECTION 7: Hearing. A public hearing (the "Hearing") on the establishment of the District, each proposed Improvement Area, the extent of the District and each proposed Improvement Area, the furnishing of specified types of public facilities within the District, and the proposed rate and method of apportionment of the Special Tax shall be held on February 5, 2003, at 7:00 p.m., or as soon thereafter as practicable, at the chambers of the City Council of the City of Rancho Cucamonga, 10500 Civic Center, Rancho Cucamonga, California 91730. At the Hearing, any interested person or taxpayer, including all persons owning lands or registered to vote within the proposed District, may appear and be heard. SECTION 8: Report. Each City officer who is or will be responsible for the Facilities to be financed by the District, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file, or cause to be filed, a report with the City Council, which is to be made a part of the record of the Hearing, containing the following: (a) a brief description of the Facilities by type which will in his or her opinion be required to adequately meet the needs of the District; and (b) an estimate of the fair and reasonable cost of financing the Facilities, including incidental expenses and including the costs of the proposed bond financing and all other related costs as provided for in Section 53345.3 of the Act. SECTION 9: Advances; Deposit and Reimbursement Agreement. The City may accept advances of funds or work in-kind from any source, including, but not limited to, private persons or private entities, and is authorized and directed to use such funds or that work in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the District. The City 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 form and substance of that certain Deposit and Reimbursement Agreement by and between the City and Victoria Gardens-C, LLC, a California Limited Liability Company , now on file in the office of the City Clerk, is hereby approved and the Mayor is hereby authorized and directed to execute and deliver the Agreement substantially in the form on file with the City Clerk and presented at this meeting, with such additions thereto, or changes of insertions therein as may be approved by the Mayor (such approval to be exclusively evidenced by such execution and delivery). Resolution No. 02-327 Page 5 of 52 SECTION 10: Published Notice. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed District. Such Notice shall be substantially in the form specified in Section 53222 of the Act. Publication of the Notice shall be completed at least 7 days prior to the date of the Hearing. SECTION 11: Mailed Notice. The City Clerk is hereby directed to send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within the proposed District as shown on the last equalized assessment roll. Mailing of the Notice shall be completed at least 15 days prior to the date of the Hearing. SECTION 12: Voting. Should the City Council determine to form the District and establish the Improvement Areas, a special election will be held within each Improvement Area to authorize the issuance of bonds and the levy of the Special Tax in accordance with the procedures contained in Section 53326 of the Act. If held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within an Improvement Area at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the Improvement Area. Ballots for the special election may be distributed by mail with return postage prepaid or by personal service. SECTION 13: Exemptions from Special Tax. Except as may otherwise be provided in Exhibit "B" hereto or by law, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax to be made to cover the costs and expenses of the Facilities. SECTION 14: Tender of Bonds. 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 of bonds in full or partial payment of any installment of the special tax or the interest or penalties thereon which may be due or delinquent). Resolution No. 02-327 Page 6 of 52 SECTION 15: Election to Perform Work. Pursuant to Section 53329.5(c) of the Act, the City Council finds that, in its opinion, the public interest will not be served by allowing property owners in the District to enter into a contract for construction of the facilities pursuant to Section 53329.5(a). This Section is not intended to prevent the City from entering into an agreement with any property owner pursuant to which it agrees to acquire the Facilities or any portion thereof, from that property owner. PASSED, APPROVED, AND ADOPTED this 18`" day of December 2002. AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams NOES: None ABSENT: None ABSTAINED: None r Wi Iia J. Alexan r, Mayor ATTEST: A60-a ak&� Debra J. Adam MC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 18`h day of December 2002. Executed this 19`h day of December 2002, at Rancho Cucamonga, California. Debra J. Adams, C, City Clerk Resolution No. 02-327 Page 7 of 52 EXHIBIT "A" DESCRIPTION OF FACILITIES The facilities described below are proposed to be financed in connection with City of Rancho Cucamonga Community Facilities District No. 2003-01 (the "District"). The cost of the facilities shall include the attributable costs of engineering, design, planning, inspection, management and coordination, together with incidental expenses, including the costs associated with forming the District; issuance and sale of bonds, including underwriter's discount, appraisal, reserve fund, capitalized interest, bond counsel, financial advisor, disclosure counsel, fiscal agent, special tax consultant, bond and official statement printing; determination of the amount of the Special Tax; collection of the Special Tax; costs incurred in order to carry out the authorized purposes of the District, and any other expenses incidental to the construction, acquisition, completion and inspection of the authorized work. The facilities shall be constructed pursuant to plans and specifications approved by the City and the officials thereof and/or the California Department of Transportation, the Cucamonga County Water District, the Etiwanda School District and the Chaffey Joint Union High School District and the officials thereof, as applicable. Facilities in Connection with Improvement Area No. 1 and Improvement Area No. 2 Public improvements required as a condition of approval of development of the property within the proposed District and other public improvements serving property within the proposed District; such improvements to include but not be limited to: Victoria Gardens Lane (and vicinity) Improvements Street Improvements Including, but not limited to, street lighting, sidewalks, grading, landscaping, striping, and traffic signal installation Storm Drain Improvements Domestic Water Improvements Landscape Improvements Dry Utilities Improvements Right-of-Way Acquisition Foothill Boulevard (and vicinity) Improvements (East of Day Creek Channel) Street Improvements Including, but not limited to, street lighting, sidewalks, grading, landscaping, striping, and traffic signal installation Storm Drain Improvements Sanitary Sewer Improvements Domestic Water Improvements Landscape Improvements Dry Utilities Improvements North Parkway Sidewalk Right-of-Way Acquisition Other Improvements Serving Properties Located within the Community Facilities District Dry Utility Improvements Resolution No. 02-327 Page 8 of 52 Facilities In Connection with Improvement Area No. 1 Only Public improvements required as a condition of approval of development of the property within the proposed District and other public improvements serving property within the proposed District; such improvements to include but not be limited to: Other Improvements Serving Properties Located in Improvement Area No. 1 Domestic Water Improvements Sewer Improvements City of Rancho Cucamonga Community Facilities Civic Center/Cultural Center School Improvements School Improvements constructed by the Etiwanda School District and the Chaffey Joint Union High School District customarily financed with development impact fees charged by those Districts. Resolution No. 02-327 Page 9 of 52 EXHIBIT "B" RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX Resolution No. 02-327 Page 10 of 52 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-01 OF THE CITY OF RANCHO CUCAMONGA IMPROVEMENT AREA NO. 1 A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2003-01 (Improvement Area No. 1) ("CFD No. 2003-01 (IA No. 1)")and collected each Fiscal Year commencing in Fiscal Year 2003-04, in an amount determined by the Council through the application of the appropriate Special Tax within each Zone for "Developed Property" and"Undeveloped Property" as described below. All of the real property in CFD No. 2003-01 (lA No. 1), unless exempted by law or by the provisions hereof, shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage"means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessors Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter 2.5,Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No.2003-01 (IA No. 1):the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules(whether by the City,a designee thereof or both);the costs of collecting the Special Taxes(whether by the County or otherwise);the costs of remitting the Special Taxes to the Trustee;the costs of the Trustee(including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2003-01 (IA No. 1) or any designee of either thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2003-01(IA No. 1)or any designee of either thereof of complying with City,CFD No.2003- 01 (IA No. I) or obligated persons disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City,of CFD No.2003-01 (IA No. 1)or any designee of either thereof related to an appeal of the Special Tax;and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No.2003-01 (IA No. 1)for any other administrative purposes of CFD No. 2003-01 (IA No. 1), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Administrative Special Tax Requirement" means, for any Fiscal Year, that amount estimated to be required to:(i)pay periodic costs on the CFD No.2003-01 (lA No. 1)Bonds City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01(IA No. 1) Page 1 Resolution No. 02-327 Page 11 of 52 other than regularly scheduled debt service,including but not limited to,credit enhancement and rebate payments on the CFD No.2003-01 (IA No. 1)Bonds as described in the Indenture and due in the calendar year beginning in said Fiscal Year; and (ii) pay Administrative Expenses. "Assessor's Parcel" means a lot or parcel shown in an Assessors 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. "Assigned Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property,as determined in accordance with Section C below. "Authorized Facilities" means those improvements, as listed on Exhibit "A" to the Resolution of Formation. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property,as determined in accordance with Section C below. "CFD Administrator" means an official of the City,or designee thereof,responsible for determining the Special Tax Requirement for each Zone and providing for the levy and collection of the Special Taxes. "CFD No.2003-01"means City of Rancho Cucamonga Community Facilities District No. 2003-01 (Victoria Gardens). "CFD No.2003-01 (IA No. 1)" means Improvement Area No. 1 of CFD No.2003-01,as identified on the boundary map for CFD No. 2003-01. "CFD No.2003-01(IA No.l)Bonds"means any bonds or other debt(as defined in Section 53317(d)of the Act),whether in one or more series,issued by CFD No.2003-01 and secured solely by Special Taxes levied on property within the boundaries of CFD No.2003-01 (IA No. 1)under the Act. "City"means the City of Rancho Cucamonga. "Council" means the City Council of the City of Rancho Cucamonga, acting as the legislative body of CFD No.2003-01 (IA No. 1). "County" means the County of San Bernardino. "Disposition and Development Agreement" means the Disposition and Development Agreement by and between the Rancho Cucamonga Redevelopment Agency and Victoria Gardens-C,LLC dated February 20,2002. City of Rancho Cucamonga Dmember 9, 2002 CFD No.2003-01 (Dt No. I) Page 2 Resolution No. 02-327 Page 12 of 52 "Developed Property" means, for each Fiscal Year, all Taxable Property which (i) was within a Final Map that was recorded prior to January 1 of the previous Fiscal Year,and(ii) for which a building permit for new construction, other than the construction of a garage, parking lot,parking structure or street,was issued after January 1,2002 but prior to January I of the previous Fiscal Year. "Final Map" means a final map, lot line adjustment, or parcel map, or portion thereof, approved by the City pursuant to the Subdivision Map Act(California Government Code Section 66410 et seq.)and recorded with the County Recorder that creates individual lots for which building permits may be issued. The term "Final Map" shall not include any Assessor's Parcel Map or subdivision map or portion thereof,that does not create individual lots for which a building permit may be issued, including Assessor's Parcels that are designated as remainder parcels. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement,resolution or other instrument pursuant to which CFD No. 2003-01 (IA No. 1)Bonds are issued, as modified, amended and/or supplemented from time to time. "Maximum Special Tax"means the maximum Special Tax,determined in accordance with Section C below,that can be levied in any Fiscal Year on any Assessor's Parcel. "Outstanding Zone 1 Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No. 1)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity,or been redeemed or defeased other than from prepayments of Special Taxes;and(it)the Zone I Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 1. "Outstanding Zone 2 Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No. 1)Bonds minus the principal amount ofthe CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity,or been redeemed or defeased other than from prepayments of Special Taxes;and(ii)the Zone 2 Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 2. "Outstanding Zone 3 Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01(IANo. 1)Bonds minus the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been paid at maturity,or been redeemed or defeased other than from prepayments of Special Taxes; and(ii)the Zone 3 Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No. 1)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 3. City of Rancho Cucamonga December 9, 2002 CFD No.2003-01 (M No. 1) Page 3 Resolution No. 02-327 Page 13 of 52 "Privately Owned Exempt Parking Property" means the land area consisting of up to 4.25 Acres in Zone 2 to be utilized for a garage, parking lot or parking structure as geographically identified in Attachment A to this Rate and Method of Apportionment,and specifically defined in Attachment B. "Privately Owned Specific Retail Property" means one or more Assessor's Parcels of Developed Property in Zone 2 for which a building permit has been issued for uses that are consistent with the Major Department Store land use category in the Disposition and Development Agreement, as determined by the CFD Administrator. "Proportionately"means for Developed Property in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Assigned Special Tax for such Zone is equal for all Assessor's Parcels of Developed Property within such Zone,orwhere the Backup Special Tax is being levied in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Maximum Special Tax for such Zone is equal for all Assessor's Parcels upon which a Backup Special Tax is being levied within such Zone. For Undeveloped Property in a particular Zone, "Proportionately"means that the ratio of the actual Special Tax levy per Acre in such Zone to the Maximum Special Tax per Acre for such Zone is equal for all Assessor's Parcels of Undeveloped Property within such Zone. "Public Property"means any property within the boundaries of CFD No.2003-01 (IA No. 1)that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government,the State,the County,the City or any other public agency,provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Resolution of Formation" means the Resolution of Formation for CFD No.2003-01 (IA No. 1). "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property to fund the Zone 1 Special Tax Requirement,the Zone 2 Special Tax Requirement,or the Zone 3 Special Tax Requirement. "State"means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2003-01 (IA No. 1)which are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. City of Rancho Cucamonga December 9, 2002 CFD No.2003-01 (/A No. 1) Page 4 Resolution No. 02-327 Page 14 of 52 "Undeveloped Property"means,for each Fiscal Year,all Taxable Property not classified as Developed Property. "Zone"means Zone 1,Zone 2, or Zone 3,as applicable. "Zone 1"means all Assessor's Parcels located within the boundaries of Zone I as delineated in Attachment A to this Rate and Method of Apportionment "Zone I Allocation"means the percentage of CFD No.2003-01(IA No. 1)Bonds allocated to Zone 1 based on Zone 1's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone I Allocation is 6.72%. ""Lone 1 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 1 Special Taxes,as reasonably determined by the CFD Administrator,and(ii)pay for reasonably anticipated delinquent Zone 1 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 1 in the previous Fiscal Year. "Zone 1 Special Tax Requirement"means,for any Fiscal Year,the sum of(i)the Zone l Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 1 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities,and(c)pay the Zone 1 Delinquency Amount,if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 1,as determined by the CFD Administrator pursuant to the Indenture. "Zone 2"means all Assessor's Parcels located within the boundaries of Zone 2 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 2 Allocation"means the percentage of CFD No.2003-01(IA No. 1)Bonds allocated to Zone 2 based on Zone 2's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zane 2 Allocation is 81.74%. "Zone 2 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 2 Special Taxes,as reasonably determined by the CFD Administrator, and (ii) pay for reasonably anticipated delinquent Zone 2 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 2 in the previous Fiscal Year. "Zone 2 Special Tax Requirement"means,for any Fiscal Year,the sum of(i)the Zone 2 Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 2 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities,and(c)pay the Zone 2 Delinquency Amount,if any; City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 1) Page 5 Resolution No. 02-327 Page 15 of 52 (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 2,as determined by the CFD Administrator pursuant to the Indenture. "Zone 3"means all Assessor's Parcels located within the boundaries of Zone 3 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 3 Allocation"means the percentage of CFD No.2003-01 (IA No. 1)Bonds allocated to Zone 3 based on Zone 3's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 3 Allocation is 11.54%. "Zone 3 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No. 1)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 3 Special Taxes,as reasonably determined by the CFD Administrator, and(ii) pay for reasonably anticipated delinquent Zone 3 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 3 in the previous Fiscal Year. "Zone 3 Special Tax Requirement"means,for any Fiscal Year,the sum of(i)the Zone 3 Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 3 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities,and(c)pay the Zone 3 Delinquency Amount,if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 3,as determined by the CFD Administrator pursuant to the Indenture. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year,all Taxable Property within Zone 1,Zone 2,and Zone 3 of CFD No.2003- 01 (IA No.1)shall be classified as Developed Property or Undeveloped Property,and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE 1. ZONE l a. Zone I Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 1 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone I or(ii) the amount derived by application of the Backup Special Tax for Zone 1. City of Rancho Cucamonga December 9, 2002 CFD No. 2007-01(IA No. 1) Page 6 Resolution No. 02-327 Page 16 of 52 (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone I of CFD No.2003-01(IA No.1)shall equal$4,318 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 1 of CFD No.2003-01 (IA No. 1)shall equal$4,798 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent(2%) of the Backup Special Tax for the previous Fiscal Year. b. Zone 1 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 1 of CFD No. 2003-01 (lA No. I) shall be $4,798 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. 2. ZONE 2 a. Zone 2 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessors Parcel in Zone 2 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 2 or(ii) the amount derived by application of the Backup Special Tax for Zone 2. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No. 2003-01 (IA No. 1) shall equal $36,294 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-07(IA No. IJ Page 7 Resolution No. 02-327 Page 17 of 52 (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No. 2003-01 (IA No. 1) shall equal $40,327 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. b. Zone 2 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 2 of CFD No. 2003-01 (IA No. 1)shall be$12,817 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. 3. ZONE 3 a. Zone 3 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 3 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 3 or(ii) the amount derived by application of the Backup Special Tax for Zone 3. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1) shall equal $10,272 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 3 of CFD No. 2003-01 (IA No. 1) shall equal $11,413 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. GO,of Rancho Cucamonga December 9. 2002 CFD No. 2003-01(IA No. 1) Page 8 Resolution No. 02-327 Page 18 of 52 b. Zone 3 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 3 of CFD No. 2003-01 (IA No. 1)shall be$11,413 per Acre for Fiscal Year 2003-04,and shall increase thereafter,commencing on July 1,2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1- ZONE 1 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 1 Special Tax Requirement and levy the Special Tax in Zone I until the amount of Special Taxes levied in Zone 1 is equal to the Zone 1 Special Tax Requirement. The Special Tax shall be levied in Zone 1 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone I Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone I at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone I whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone I pursuant to steps two and three above,and (i)all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued,or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Zone 1, except for those Residential Properties whose City ofRancho Cucamonga December 9, 2002 CFD No. 2003-01(14 No. ]) Page 9 Resolution No. 02-327 Page 19 of 52 owners are also delinquent or in default on their Special Tax payments for one or more other properties within Lone 1. 2. ZONE 2 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 2 Special Tax Requirement and levy the Special Tax in Zone 2 until the amount of Special Taxes levied in Zone 2 is equal to the Zone 2 Special Tax Requirement.The Special Tax shall be levied in Zone 2 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 2 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 2 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than I00%ofthe Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 2 pursuant to steps two and three above,and (i)all authorized CFD No.2003-01 (IA No. 1)Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. 3. ZONE 3 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 3 Special Tax Requirement and levy the Special Tax in Zone 3 until the amount of Special Taxes levied in Zone 3 is equal to the Zone 3 Special Tax Requirement. The Special Tax shall be levied in Zone 3 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 3 in an amount equal to 100% of the Assigned Special Tax for Developed Property; City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (1A No. 1) Page 10 Resolution No. 02-327 Page 20 of 52 Second: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 3 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 3 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessors Parcel of Developed Property in Zone 3 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 3 pursuant to steps two and three above,and (i)all authorized CFD No. 2003-01 (IA No. 1) Bonds have already been issued,or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. E. EXEMPTIONS 1. ZONE 1 No Special Tax shall be levied on Public Property in Zone 1. 2. ZONE 2 No Special Tax shall be levied on Public Property in Zone 2. In addition,no Special Tax shall be levied on Privately Owned Exempt Parking Property in Zone 2. Furthermore,no Special Tax shall be levied on up to 10.56 Acres of Privately Owned Specific Retail Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property in Zone 2 becomes Privately Owned Specific Retail Property. If the total number of Acres of Privately Owned Specific Retail Property exceeds the amount stated above, then the Acres exceeding such total shall be taxed at the applicable rates for Developed Property for Zone 2 as set forth in Section C above and to the extent set forth in Section D above. 3. ZONE 3 No Special Tax shall be levied on Public Property in Zone 3. City of Rancho Cucamonga December 9,2002 CFD No. 2003-01 (Ll No. 1) Page 11 Resolution No. 02-327 Page 21 of 52 F. REVIEW/APPEAL COMMITTEE Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator,provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes 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 amount of the Special Tax shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. 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.2003-01 (IA No. 1)may directly bill the Special Tax,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 Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX 1. Payment in Full Only an Assessor's Parcel of Developed Property,or Undeveloped Property for which a building permit has been issued, may be prepaid. The Special Tax obligation applicable to an Assessor's Parcel in CFD No. 2003-01 (IA No. 1) may only be prepaid after all authorized CFD No. 2003-01 (IA No. 1)Bonds have already been issued,or after the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No. 1)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax may be permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel 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 Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice,the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to any redemption date for the CFD No.2003-01 (IA No. 1)Bonds to be redeemed with the proceeds of such prepaid Special Taxes. City ofRancho Cucamonga December 9, 2002 CFD No. 2003-01(IA No. 1) Page 12 Resolution No. 02-327 Page 22 of 52 The Prepayment Amount(defined below)shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued,compute the Maximum Special Tax for the Assessor's Parcel to be prepaid as though it were already designated as Developed Property,based upon the building permit which has been issued for that Assessor's Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the estimated Maximum Special Taxes for the entire Zone in which the Assessor's Parcel is located based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development in such Zone, excluding any Assessor's Parcels in such Zone which have been prepaid;and 4. (a) For Assessor's Parcels in Zone 1, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 1 Bonds to compute the amount of Outstanding Zone 1 Bonds to be retired and prepaid;or (b) For Assessor's Parcels in Zone 2, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 2 Bonds to compute the amount of Outstanding Zone 2 Bonds to be retired and prepaid: or (e) For Assessor's Parcels in Zone 3, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 3 Bonds to compute the amount of Outstanding Zone 3 Bonds to be retired and prepaid(in either(a), (b),or(c)above, the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount for the appropriate Zone computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the Cily of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (IA No. 1) Page 13 Resolution No. 02-327 Page 23 of 52 redemption price — 100%), if any, on the Outstanding Zone 1, Zone 2, or Zone 3 Bonds to be redeemed(the "Redemption Premium"). 6. Compute 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 Zone 1,Zone 2,or Zone 3 Bonds,as applicable. 7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 8. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds, as applicable, to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8. 10. Compute the net present value of the amount computed pursuant to paragraph 9,using as a discount rate the rate of return reasonably assumed by the CFD Administrator in paragraph 8(the "Defeasance Amount"). 11. The administrative fees and expenses of CFD No.2003-01 (IA No. 1)are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2003-01 (IA No. 1)Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 12. 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 Zone 1, Zone 2, or Zone 3 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 Zone 1,Zone 2,or Zone 3 Bonds,as applicable,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. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Outstanding Zone 1, Zone 2,or Zone 3 Bonds, as applicable,is below 100%of the reserve requirement(as defined in the Indenture). 13. If any capitalized interest for the Outstanding Zone 1, Zone 2, or Zone 3 Bonds,as applicable,will not have been expended as ofthe first bond interest and/or principal payment date following the current Fiscal Year,a capitalized interest credit shall be calculated by multiplying the quotient computed Uy of Rancho Cucamonga December 9, 2002 CFD No.200301(M No. 1) Page 14 Resolution No. 02-327 Page 24 of 52 pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4,5, 10,and 11,less the amounts computed pursuant to paragraphs 12 and 13 (the "Prepayment Amount"). From the Prepayment Amount,the amounts computed pursuant to paragraphs 4,5, 10, 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Zone 1,Zone 2,or Zone 3 Bonds,as applicable, or make debt service payments. The amount computed pursuant to paragraph 11 shall be retained by CFD No.2003-01 (IA No. 1). The Prepayment Amount maybe sufficient to redeem other than a$5,000 increment of CFD No.2003-01 (IA No. 1)Bonds. 1n such cases,the increment above$5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No.2003-01 (IA No. 1)Bonds or to make debt service payments. Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel for which the Special Tax obligation is prepaid in full in accordance with this Section H.1., the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied within the entire Zone in which the Assessor's Parcel's Special Tax obligation is prepaid both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Zone 1,Zone 2,and Zone 3 Bonds,as applicable- 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property and an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that apartial prepayment shall be calculated according to the following formula: PP=PEXF These terms have the following meaning: City of Rancho Cucamonga December 9, 2002 CFD No.2003-01 (IA Na. Q Page is Resolution No. 02-327 Page 25 of 52 PP= the partial prepayment PE= the Prepayment Amount calculated according to Section H.1 F— the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of(i)such owner's intent to partially prepay the Special Tax,and (ii)the percentage by which the Special Tax shall be prepaid,and(iii)the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty(30)days ofthe request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section H.1,and(ii)indicate in the records of CFD No. 2003-01 (lA No. 1)that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. 1. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed 50 years commencing with Fiscal Year 2003-04, provided however that Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2003-01 (lA No. 1)Bonds have been paid;and(ii)all Authorized Facilities have been constructed. K.Clienu2lRanchoCum cng I VicloriaGarde=IRMAlrmprov entAreal_6dnc Prepared: !L9/02 City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01(IA No. 1) Page 16 Resolution No. 02-327 Page 26 of 52 ATTACHMENT A MAP OF ZONES 1 THROUGH 3 Resolution No. 02-327 Page 27 of 52 PROPOSED BOUNDARIES SHEET I OF 1 SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO. 1, ZONES 1, 2 & 3 CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA IF NAP N.,➢. NAP nap. 4 XD NAP. x• NAP. xwp. E NAP X.I.➢. NIP NAP. XII N ' AT u".a. x e NAP. N.AP. URCH SAINT III gr_____________________ ____� u° X^P' ZONEINAP °y A, N NAP w N I I xAvNAIF , u jL ­AO NA IIIIAO Ecl MNLI� $ bon ZONEZ I � NAP I uI-xl+e xIIAc IN L ' s➢N ITA AS O ZONES �r.7P r_____1 wm wu xlo pourt,I p I u I tEv NAP. NAP NAP. LEGEND i w I 1 D PPRpXOIROPERIV 1 a 1 1 I o I I I 3 GNAPHIC SCALE HP1. TENT/ Z j € I = Rm FEET) ET n I L� yX l E 4 ¢ A, Y wit uP e-w-m' r, anL aEN IN INR orPeR or mE em aRrA or mE en.a R.Nexo eXuxoNex mn_w.«�zoo_ MDS CONSULTING an CESRE OF THE nn OF EANCHO OJEAwxcA "IT"THAT an a RANCHO NaxoNCA,fqutina SAN ewuMoNO.STATE of f46oFNIAWASI APPROPONS"ETEO,"CAu.��I Resolution No. 02-327 Page 28 of 52 LEGAL DESCRIPTION CFD 2003-01 IMPROVEMENT AREA NO.1 -ZONE NO.1 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE, LYING WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN COURSE IN THE NORTHWESTERLY LINE OF PARCEL MAP NO. 15641 HAVING A BEARING OF NORTH 44°18'08" EAST AND A DISTANCE OF 122.48 FEET;THENCE FROM SAID POINT OF BEGINNING ALONG THE NORTHERLY LINE OF SAID PARCEL MAP NO. 15641, NORTH 89°55'01"WEST 172.57 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 1052.00 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 4°47'42" AN ARC LENGTH OF 88.04 FEET TO A REVERSE CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 947.98 FEET; THENCE EASTERLY ALONG SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 404T42"AN ARC LENGTH OF 79.34 FEET; THENCE NORTH 89°55'01"WEST 1059.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 798.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 32°33'40"AN ARC LENGTH OF 453.50 FEET TO A POINT IN A NON-TANGENT REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 945.00 FEET, RADIAL LINES THROUGH SAID POINT BEAR SOUTH 32°38'39"WEST(798.00-FOOT RADIUS)AND NORTH 33°00'27" EAST(945.00- FOOT RADIUS); THENCE LEAVING SAID NORTHERLY LINE AND SOUTHEASTERLY ALONG LAST SAID NON-TANGENT REVERSE CURVE THROUGH A CENTRAL ANGLE OF 8°21'01" AN ARC LENGTH OF 137.72 FEET; THENCE NON-TANGENT TO THE PREVIOUS CURVE, SOUTH 25°04'56" EAST 22.02 FEET; THENCE SOUTH 68011'33" EAST 35.26 FEET; THENCE SOUTH 21048'29" EAST 11.04 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 213.00 FEET; THENCE SOUTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 21°43'28"AN ARC LENGTH OF 80.76 FEET; THENCE SOUTH 0"04'59" EAST 109.70 FEET, TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 25.00 FEET; THENCE SOUTHERLY AND WESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90°00'00"AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 89°55'01"WEST 579.84 FEET;THENCE SOUTH 0004'59"EAST 50.00 FEET;THENCE NORTH 89°55'01"WEST 128.86 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 266.33 FEET; THENCE SOUTHEASTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 6056'18"AN ARC LENGTH OF 32.25 FEET TO A REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 143.67 FEET; THENCE WESTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 15032'46" AN ARC LENGTH OF 38.98 FEET; THENCE NORTH 89°55'01" WEST 150.00 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 99.50 FEET; THENCE WESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 23013'53" AN ARC LENGTH OF 40.34 FEET TO A REVERSE CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 85.50 FEET; THENCE WESTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 8000'31" AN ARC LENGTH OF 11.95 FEET; THENCE NORTH 89055'01" WEST 1016.33 FEET; THENCE SOUTH 22004'33" EAST 26.70 FEET TO A POINT IN A NON-TANGENT CURVE CONCAVE WESTERLY HAVING A RADIUS OF 2572.00 FEET, SAID POINT ALSO BEING IN THE LAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641,A RADIAL LINE THROUGH SAID POINT BEARS NORTH 88029'55" WEST; THENCE NORTHERLY ALONG LAST SAID NON-TANGENT CURVE AND ALONG SAID EAST LINE THROUGH A CENTRAL ANGLE OF 4045'59" AN ARC LENGTH OF 213.97 FEET; Resolution No. 02-327 Page 29 of 52 THENCE NORTH 1°28'43" WEST 294.75 FEET; THENCE NORTH 44018'08" EAST 122.48 FEET TO THE POINT OF BEGINNING. CONTAINING 21.653 ACRES OF LAND,MORE OR LESS. PREPARED BY ME OR UNDER MY DIRECTION: 4-all /fj^�_ SAND STANLEY C. MORSE,P.L.S.3640, DATED 12-06-02 C N o LICENSE EXPIRES 6-30-04 * Cxp No 3G406400G< aQ G 12901101EGALS11A1-Z1.00C Resolution No. 02-327 Page 30 of 52 LEGAL DESCRIPTION CFD 2003-01 IMPROVEMENT AREA NO.1-ZONE NO.2 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO.STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE AND PARCEL B AS SAID PARCEL B IS DESCRIBED IN DOCUMENT NO, 19990308589 RECORDED JULY 23, 1999 IN THE OFFICIAL RECORDS OF SAID COUNTY, LYING WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE MOST NORTHEASTERLY CORNER OF SAID PARCEL MAP NO.7966;THENCE ALONG THE EAST LINE OF SAID PARCEL MAP NO. 7966, SOUTH 0°07'34"WEST 1065.17 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 800.00 FEET;THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 34°25'30" AN ARC LENGTH OF 480.66 FEET; THENCE LEAVING SAID EAST LINE TO THE PREVIOUS CURVE ALONG THE NORTHERLY AND SOUTHEASTERLY LINES OF SAID PARCEL B, NORTH 89°5847" WEST 93.23 FEET; THENCE SOUTH 43151'29" 290.33 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1800.00 FEET; THENCE SOUTHWESTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 13°58'01"AN ARC LENGTH OF 438.78 FEET;THENCE SOUTH 57°49'30"WEST 10.37 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 2000.00 FEET; THENCE LEAVING SAID SOUTHEASTERLY LINE OF PARCEL B ALONG THE SOUTHEASTERLY LINE OF SAID PARCEL MAP NO. 7966 AND ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 11°40'35"AN ARC LENGTH OF 407.58 FEET;THENCE SOUTH 69°30'05"EAST 250.72 FEET; THENCE LEAVING LAST SAID SOUTHEASTERLY LINE, NORTH 0`04'59" EAST 75.98 FEET; THENCE NORTH 89055'01" WEST 604.06 FEET; THENCE SOUTH 0004'59"WEST 8.61 FEET; THENCE SOUTH 54049'11" WEST 24.12 FEET; THENCE NORTH 4050'51" 9.14 FEET; THENCE NORTH 85009'09" WEST 104.26 FEET; THENCE NORTH 0004'58" EAST 22.99 FEET; THENCE NORTH 89055'01" WEST 623.93 FEET; THENCE NORTH 0004'59" EAST 103.00 FEET; THENCE NORTH 23023'13"WEST 25.11 FEET TO THE EAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641; THENCE ALONG SAID EAST LINE, NORTH 0015'45" EAST TO A TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 2428.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 3002'25" 128.84 FEET; THENCE NORTH 3018'10" EAST 1267.27 FEET TO A TANGENT CURVE CONCAVE WESTERLY HAVING A RADIUS OF 2572.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 1048'05" AN ARC LENGTH OF 80.87 FEET; THENCE LEAVING SAID EAST LINE OF DAY CREEK BOULEVARD, NORTH 22004'33" EAST 26.70 FEET; THENCE SOUTH 89055'01" EAST 1016.33 TO A POINT IN A NON-TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 85.50 FEET,A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 15018'21"WEST; THENCE EASTERLY ALONG SAID NON-TANGENT CURVE THROUGH A CENTRAL ANGLE OF 8"00'31" AN ARC LENGTH OF 11.95 FEET TO A REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 99.50 FEET; THENCE EASTERLY ALONG SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 23013'53"AN ARC LENGTH OF 40.34 FEET; THENCE SOUTH 89055'01" EAST 150.00 FEET TO A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 143.67 FEET; THENCE EASTERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 15032'46"AN ARC LENGTH OF 38.98 FEET TO A REVERSE CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 266.33 FEET; THENCE EASTERLY ALONG LAST SAID REVERSE CURVE THROUGH A CENTRAL ANGLE OF 6056'18"AN ARC LENGTH OF 32.25 FEET; THENCE SOUTH 89055'01" EAST 128.66 FEET; THENCE NORTH 0004'59'EAST 50.00 FEET; THENCE SOUTH 89055'01" EAST 579.84 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 25.00 FEET;THENCE EASTERLY AND Resolution No. 02-327 Page 31 of 52 NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90000'00" AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 0004'59" EAST 109.70 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 213.00 FEET; THENCE NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 21043'28" AN ARC LENGTH OF 80.76 FEET;THENCE NORTH 21048'29"EAST 11.04 FEET; THENCE NORTH 68011'33" WEST 35.26 FEET;THENCE NORTH 25004'56" EAST 22.02 FEET TO A POINT IN A NON-TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 945.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 24039'26"EAST;THENCE NORTHWESTERLY ALONG LAST SAID NON-TANGENT CURVE THROUGH A CENTRAL ANGLE OF 8021'01" AN ARC LENGTH OF 137.72 FEET TO A POINT OF CUSP WITH A NON-TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 902.00 FEET, RADIAL LINES THROUGH SAID POINT OF CUSP BEAR NORTH 30000'27' EAST (945.00-FOOT RADIUS) AND NORTH 32038'39" EAST (902.00-FOOT RADIUS), SAID POINT OF CUSP ALSO BEING THE SOUTH LINE OF CHURCH STREET AS SHOWN ON SAID PARCEL MAP NO. 15641; THENCE SOUTHEASTERLY ALONG LAST SAID NON-TANGENT CURVE AND ALONG SAID SOUTH LINE OF CHURCH STREET THROUGH A CENTRAL ANGLE OF 13°00'40" AN ARC LENGTH OF 204.83 FEET TO THE NORTH LINE OF SAID PARCEL MAP NO. 15641; THENCE LEAVING LAST SAID SOUTH LINE ALONG LAST SAID NORTH LINE, SOUTH 89055'01"EAST 444.05 FEET TO THE POINT OF BEGINNING. CONTAINING 110.453 ACRES OF LAND,MORE OR LESS. PREPARED BY ME OR UNDER MY MMYY DIIRECTION: ,y O � STANLEY C. MORSE, P.L.S.3640, DATED 12-06-02 `2 P J) o LICENSE EXPIRES 6-30-04J '" A * Exp 6/30/2004 No 3640 r c-�zsmioLLecn�sin�-zznoc '�? t�rc Of CAO� Resolution No. 02-327 Page 32 of 52 LEGAL DESCRIPTION CFD 2003-01 IMPROVEMENT AREA NO.1 -ZONE NO.3 PORTIONS OF PARCEL MAP NO. 15641 IN THE CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 192 OF PARCEL MAPS AT PAGES 93 THROUGH 100 INCLUSIVE, IN THE OFFICE OF THE RECORDER OF SAID COUNTY AND PARCEL MAP NO. 7966 PER MAP RECORDED IN BOOK 86 OF PARCEL MAPS AT PAGES 1 THROUGH 3 IN SAID RECORDER'S OFFICE, LYING WITHIN THE FOLLOWING DESCRIBED PARCEL: BEGINNING AT THE MOST SOUTHEASTERLY CORNER OF SAID PARCEL MAP NO. 15641; THENCE ALONG THE SOUTH LINE OF SAID PARCEL MAP NO. 15641, NORTH 89°55'01" WEST 807.40 FEET; THENCE LEAVING SAID SOUTH LINE ALONG THE EAST LINE OF DAY CREEK BOULEVARD AS SHOWN ON SAID PARCEL MAP NO. 15641, NORTH 44°49'38"WEST 84.98 FEET; THENCE NORTH 0°15'45" EAST 642.29 FEET; THENCE LEAVING SAID EAST LINE, SOUTH 23°23'13"EAST 25.11 FEET;THENCE SOUTH 89°55'01"EAST 54.47 FEET;THENCE SOUTH 0°04'59" WEST 103.00 FEET;THENCE SOUTH 89°55'01"EAST 623.93 FEET;THENCE SOUTH 0°04'58"WEST 22.99 FEET; THENCE SOUTH 8509'09" EAST 104.26 FEET; THENCE NORTH 4150'51" 9.14 FEET; THENCE NORTH 5449'11" EAST 24.12 FEET;THENCE NORTH 004'59"EAST 8.61 FEET;THENCE SOUTH 89°55'01" EAST 604.06 FEET; THENCE SOUTH 0°04'59" WEST 75.98 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL MAP NO. 15641; THENCE SOUTHWESTERLY ALONG SAID SOUTHEASTERLY LINE, SOUTH 69°30'05" WEST 116.82 FEET TO A TANGENT CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 650.00 FEET; THENCE SOUTHWESTERLY ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 38°00'00"AN ARC LENGTH OF 431.10 FEET;THENCE SOUTH 31°30'05"WEST 222.30 FEET TO THE POINT OF BEGINNING. CONTAINING 14.689 ACRES OF LAND, MORE OR LESS. PREPARED BY ME OR UNDER MY DIRECTION: `A N p SG STANLEY C. MORSE,P.L.S.3640,DATED 12-06-02 " ti J' o LICENSE EXPIRES 6-30-04J N m A * Epp 6/30/2G04 No 3640 G:@901101EGALSMA1-Z3.D0C ''TE'OF CAOEF Resolution No. 02-327 Page 33 of 52 ATTACHMENT B PRIVATELY OWNED EXEMPT PARKING PROPERTY LISTING Resolution No. 02-327 Page 34 of 52 SHEET 1 OF 2 SHEETS PARKING STRUCTURE PARCELS PARCEL MAP NO. 15641 P.M.B. 192/93-100 5 6 7 11 12 CHURCH STREET 24 25 26 N :89'55'01"Wi 2223.15' 16 ..............'.............�............. iq 23 'LU PARCEL P2 N.A.P. > ��SEE SHEET 2 LU J PPARCE ..............D O L P1 m a 17 w 22 PARCEL MAP 7966 o v P.M.B.86/1-3 zrn aN ¢ °15 y m Ly g 5<P w a 18 21 a 20 19 FOOTHILL BOULEVARD (ROUTE 66) I FANO S C. �0) 0 600 300 0 600 Exp. 6/30/2004 No. 3640 GRAPHIC SCALE �r9�FOF CAl1F \P PREPARED UNDER THE SUPERVISION OF: LEGEND ® INDICATES SUBJECT PARCEL AREA INDICATES SUBJECT PARCEL LINE STANLEY C. MORSE L.S. 3640 (EXPIRES 6/30/20N) INDICATES EXISTING PARCEL UNE I:\46606\MAPPINC\PRKSTI-1 11-13-02 Resolution No. 02-327 Page 35 of 52 SHEET 2 OF 2 SHEETS PARKING STRUCTURE PARCELS NW CORNER PARCEL MAP NO. 15641---N/ P.M. 7966 P.M.B. 192/93-100 25 26 N 89'55'01" W 2223.15' -'-- 707.59' 407.93' 1107.63 -+y 1 I � O �I MI m � ml Of M h O O NI NI Y'J YEN 1lJ NIn NY]� 00 vel Id' ZO 12 m 11 II II II II II ZI ,O , ZGd' GKZ G2' Z, N 8955'01" W 326.99' P.O.B. D=36'52'17_ R-25.00' L=16.09' ZZ O N JQ 1(j w PARCEL P1 CULTURAL ARTS ¢ PARCEL P2 I„ 2.478C. ACENTER PARCEL ro 1.771 AC, a, Q b z a z z N 89'55'01" W 331.99' ----; r———I N89'55'01"W 236.00' L� LAND S I C. U ti N o to m � * Exp. 6/30/2004 * 150 75 0 150 No. 3640 �lglF OF CAL\FGRAPHIC SCALE PREPARED UNDER THE SUPERVISION OF: LEGEND ® INDICATES SUBJECT PARCEL AREA STANLEY C. MORSE L.S. 3640 (EXPIRES 6/30/2004 INDICATES SUBJECT PARCEL LINE INDICATES EXISTING PARCEL LINE 1:\46606\MAPPING\PRKSTI-2 11-13.02 Resolution No. 02-327 Page 36 of 52 PARKING STRUCTURE PARCELS THOSE CERTAIN PORTIONS OF PARCEL 1 OF PARCEL MAP NO. 7966 IN THE CITY OF RANCHO CUCAMONGA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, PER MAP RECORDED IN BOOK 86 AT PAGES 1 THROUGH 3 INCLUSIVE OF PARCEL MAPS IN THE OFFICE OF THE RECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL P1: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966;THENCE ALONG THE NORTH LINE OF LAST SAID PARCEL MAP, SOUTH 89°55'01" EAST 707.59 FEET; THENCE LEAVING SAID NORTH LINE, SOUTH 00°04'59"WEST 283.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ALONG THE SAME BEARING, SOUTH 00°04'59" WEST 325.20 FEET; THENCE NORTH 89°55'01" WEST 331.99 FEET; THENCE NORTH 00°04'59" EAST 310.20 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEAST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 36°52'12" AN ARC LENGTH OF 16.09 FEET; THENCE SOUTH 89°55'01"EAST 326.99 FEET TO THE POINT OF BEGINNING. CONTAINING 2.478 ACRES OF LAND, MORE OR LESS. PARCEL P2: COMMENCING AT THE NORTHWEST CORNER OF SAID PARCEL MAP NO. 7966;THENCE ALONG SAID PARCEL MAP, SOUTH 89°55'01" EAST 707.59 FEET; THENCE CONTINUING ALONG SAID NORTH LINE, SOUTH 8955'01" EAST 407.93 FEET; THENCE LEAVING SAID NORTHERLY LINE, SOUTH 00°04'59" WEST 273.20 FEET TO THE POINT OF BEGINNING OF THE PARCEL TO BE HEREIN DESCRIBED; THENCE CONTINUING ON LAST SAID BEARING, SOUTH 00°04'59" WEST 10.00 FEET;THENCE NORTH 89°55'01"WEST 10.17 FEET;THENCE SOUTH 00°04'59"WEST 324.61 FEET;THENCE SOUTH 89°55'01"EAST 236.00 FEET;THENCE NORTH 00°04'59"EAST 295.61 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 25.00 FEET; THENCE ALONG SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90'00'00" AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 89°55'01"WEST 55.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 84.57 FEET;THENCE ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 23028'33" AN ARC LENGTH OF 34.65 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 84.57 FEET;THENCE ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 2328'33"AN ARC LENGTH OF 34.65 FEET; THENCE NORTH 89"55'01"WEST 78.45 FEET TO THE POINT OF BEGINNING. CONTAINING 1.771 ACRES OF LAND, MORE OR LESS. PREPARED UNDER MY DIRECTION STANLEY C. MORSE, L.S.3640 DATE LICENSE EXPIRES 6-30-04 G:4fi6 WLEGALS%PKG-STR.D0C Resolution No. 02-327 Page 37 of 52 RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2003-01 OF THE CITY OF RANCHO CUCAMONGA IMPROVEMENT AREA NO. 2 A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in Community Facilities District No. 2003-01 (Improvement Area No. 2) ("CFD No. 2003-01 (IA No. 2)") and collected each Fiscal Year commencing in Fiscal Year 2003-04, in an amount determined by the Council through the application of the appropriate Special Tax within each Zone for"Developed Property" and "Undeveloped Property" as described below. All of the real property in CFD No. 2003-01 (IA No. 2), unless exempted by law or by the provisions hereof, shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage"means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other map or plan recorded with the County. The square footage of an Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act"means the Mello-Roos Community Facilities Act of 1982,as amended,being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No.2003-01 (IA No.2):the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules(whetherbythe City,a designee thereof or both); the costs of collecting the Special Taxes(whether by the County or otherwise);the costs of remitting the Special Taxes to the Trustee;the costs ofthe Trustee(including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2003-01 (IA No. 2) or any designee of either thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2003-01(IA No.2)or any designee of either thereof of complying with City,CFD No.2003- 01 (IA No. 2) or obligated persons disclosure requirements; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes;the costs of the City,of CFD No.2003-01 (IA No.2)or any designee of either thereof related to an appeal of the Special Tax;and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No.2003-01 (IA No.2)for any other administrative purposes of CFD No. 2003-01 (IA No. 2), including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Administrative Special Tax Requirement" means, for any Fiscal Year, that amount estimated to be required to:(i)pay periodic costs on the CFD No_2003-01 (IA No.2)Bonds City of Rancho Cucamonga De mber 9, 2002 CFD No. 2003-01(M No. 2) Page 1 Resolution No. 02-327 Page 38 of 52 other than regularly scheduled debt service,including but not limited to,credit enhancement and rebate payments on the CFD No.2003-01 (IA No.2)Bonds as described in the Indenture and due in the calendar year beginning in said Fiscal Year, and (ii)pay Administrative Expenses. "Assessor's Parcel" means a lot or parcel shown in 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. "Assigned Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property, as determined in accordance with Section C below. "Authorized Facilities" means those improvements, as listed on Exhibit "A" to the Resolution of Formation. "Backup Special Tax" means the Special Tax applicable to each Assessor's Parcel of Developed Property,as determined in accordance with Section C below. "CFD Administrator" means an official of the City, or designee thereof,responsible for determining the Special Tax Requirement for each Zone and providing for the levy and collection of the Special Taxes. "CFD No.2003-01"means City of Rancho Cucamonga Community Facilities District No. 2003-01 (Victoria Gardens). "CFD No.2003-01 (IA No.2)" means Improvement Area No. 2 of CFD No.2003-01,as identified on the boundary map for CFD No.2003-01. "CFD No.2003-01 (IA No.2)Bonds"means any bonds or other debt(asdefined in Section 53317(d)of the Act),whether in one or more series,issued by CFD No.2003-01 and secured solely by Special Taxes levied on property within the boundaries of CFD No.2003-01 (IA No. 2)under the Act. "City" means the City of Rancho Cucamonga. "Council" means the City Council of the City of Rancho Cucamonga, acting as the legislative body of CFD No. 2003-01 (IA No. 2). "County" means the County of San Bernardino. "Developed Property" means, for each Fiscal Year, all Taxable Property which(i) was within a Final Map that was recorded prior to January I of the previous Fiscal Year,and(ii) for which a building permit for new construction was issued after January 1,2002 but prior to January I of the previous Fiscal Year. City of Rancho Cucamonga December 9, 2002 CFD No.2003-01(!A No-2) Page 2 Resolution No. 02-327 Page 39 of 52 "Final Map" means a final map, lot line adjustment, or parcel map, or portion thereof, approved by the City pursuant to the Subdivision Map Act(California Government Code Section 66410 et seq.)and recorded with the County Recorder that creates individual lots for which building permits may be issued. The term "Final Map" shall not include any Assessor's Parcel Map or subdivision map orportion thereof,that does not create individual lots for which a building permit may be issued, including Assessor's Parcels that are designated as remainder parcels. "Fiscal Year"means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2003-01 (IA No. 2)Bonds are issued,as modified, amended and/or supplemented from time to time. "Maximum Special Tax"means the maximum Special Tax,determined in accordance with Section C below,that can be levied in any Fiscal Year on any Assessor's Parcel. "Outstanding Zone I Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01(IA No.2)Bonds minus the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been paid at maturity,or been redeemed or defeased other than from prepayments of Special Taxes;and(it)the Zone 1 Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 1. "Outstanding Zone 2 Bonds"means(a)the product of(i)the original principal amount of the CFD No.2003-01 (IA No.2)Bonds minus the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been paid at maturity,or been redeemed or defeased other than from prepayments of Special Taxes; and(ii)the Zone 2 Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No.2)Bonds that have been redeemed or defeased as a result of the prepayment of Special Taxes by the owners of Assessor's Parcels located in Zone 2. "Proportionately" means for Developed Property in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Assigned Special Tax for such Zone is equal for all Assessor's Parcels of Developed Property within such Zone,or where the Backup Special Tax is being levied in a particular Zone that the ratio of the actual Special Tax levy in such Zone to the Maximum Special Tax for such Zone is equal for all Assessor's Parcels upon which a Backup Special Tax is being levied within such Zone. For Undeveloped Property in a particular Zone,"Proportionately"means that the ratio of the actual Special Tax levy per Acre in such Zone to the Maximum Special Tax per Acre for such Zone is equal for all Assessor's Parcels of Undeveloped Property within such Zone. "Public Property"means any property within the boundaries of CFD No.2003-01(IA No. 2)that is used for rights-of-way or any other purpose and is owned by or irrevocably offered for dedication to the federal government,the State,the County,the City or any other public City of Rancho Cucamonga December 9, 2002 CFD No. 2003-0I(7A No. 2) Page 3, Resolution No. 02-327 Page 40 of 52 agency,provided however that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified in accordance with its use. "Resolution of Formation"means the Resolution of Formation for CFD No.2003-01 (IA No.2). "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property to fund the Zone I Special Tax Requirement or the Zone 2 Special Tax Requirement. "State" means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2003-01 (IA No.2)which are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property"means,for each Fiscal Year,all Taxable Property notclassifted as Developed Property. "Zone" means Zone I or Zone 2,as applicable. "Zone I"means all Assessor's Parcels located within the boundaries of Zone 1 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 1 Allocation"means the percentage of CFD No.2003-01(IA No.2)Bonds allocated to Zone I based on Zone 1's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone I Allocation is 37.80%. "Zone 1 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No.2)Bonds in an amountequal to the amount withdrawn therefrom as a result of delinquent Zone 1 Special Taxes,as reasonably determined by the CFD Administrator, and(ii)pay for reasonably anticipated delinquent Zone I Special Taxes based on the delinquency rate for Special Taxes levied in Zone 1 in the previous Fiscal Year. "Zone 1 Special Tax Requirement"means,for any Fiscal Year,the sum of(i)the Zone 1 Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone I Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities,and(c)pay the Zone 1 Delinquency Amount,if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 1,as determined by the CFD Administrator pursuant to the Indenture. City of Rancho Cucamonga December 9,2002 CFD No.2003-01 (fA No.2) Page 4 Resolution No. 02-327 Page 41 of 52 "Zone 2"means all Assessor's Parcels located within the boundaries of"Zone 2 as delineated in Attachment A to this Rate and Method of Apportionment. "Zone 2 Allocation"means the percentage of CFD No.2003-01 (IA No.2)Bonds allocated to Zone 2 based on Zone 2's share of the cost of the Authorized Facilities to be financed from the proceeds of such bond issue(s). The Zone 2 Allocation is 62.20%. "Zone 2 Delinquency Amount" means, for any Fiscal Year, the amount required to (i) replenish any reserve funds for CFD No.2003-01 (IA No.2)Bonds in an amount equal to the amount withdrawn therefrom as a result of delinquent Zone 2 Special Taxes,as reasonably determined by the CFD Administrator, and (it) pay for reasonably anticipated delinquent Zone 2 Special Taxes based on the delinquency rate for Special Taxes levied in Zone 2 in the previous Fiscal Year. "Zone 2 Special Tax Requirement" means,for any Fiscal Year,the sum of(i)the Zone 2 Allocation times the Administrative Special Tax Requirement;and(ii)the amount required to (a) pay regularly scheduled debt service on all Outstanding Zone 2 Bonds due in the calendar year beginning in said Fiscal Year, (b) accumulate funds to pay directly for the construction of Authorized Facilities,and(c)pay the Zone 2 Delinquency Amount,if any; (iii)less a credit for funds available to reduce the annual Special Tax levy within Zone 2,as determined by the CFD Administrator pursuant to the Indenture. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year,all Taxable Property within Zone 1 and Zone 2 of CFD No.2003-01 (IA No. 2) shall be classified as Developed Property or Undeveloped Property, and shall be subject to Special Taxes in accordance with the rate and method of apportionment determined pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE 1. ZONE 1 a. Zone 1 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessors Parcel in Zone I classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 1 or(ii) the amount derived by application of the Backup Special Tax for Zone 1. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (fA No. 2) Page 5 Resolution No. 02-327 Page 42 of 52 (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone I of CFD No.2003-01 (IA No.2)shall equal$2,799 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July I of each Fiscal Year thereafter,by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone I of CFD No.2003-01 (IA No.2)shall equal$3,110 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. b. Zone 1 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone I of CFD No. 2003-01 (IA No. 2) shall be$3,110 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. 2. ZONE 2 IL Zone 2 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel in Zone 2 classified as Developed Property shall be the greater of(i)the amount derived by application of the Assigned Special Tax for Zone 2 or(ii) the amount derived by application of the Backup Special Tax for Zone 2. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No.2003-01 (IA No.2)shall equal$8,480 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent(2%)of the Assigned Special Tax for the previous Fiscal Year. City of Rancho Cu®onga December 9, 2002 CFD No. 2003-01(Ll No. 2) Page 6 Resolution No. 02-327 Page 43 of 52 (iii). Backup Special Tax The Backup Special Tax for each Assessor's Parcel of Developed Property in Zone 2 of CFD No.2003-01 (IA No.2)shall equal$9,423 per Acre for Fiscal Year 2003-04, and shall increase thereafter, commencing on July 1, 2004 and on July 1 of each Fiscal Year thereafter,by an amount equal to two percent (2%) of the Backup Special Tax for the previous Fiscal Year. b. Zone 2 Undeveloped Property The Maximum Special Tax for Undeveloped Property in Zone 2 of CFD No. 2003-01 (JA No.2) shall be $9,423 per Acre for Fiscal Year 2003-04, and shall increase thereafter,commencing on July 1,2004 and on July I of each Fiscal Year thereafter, by an amount equal to two percent (2%) of the Maximum Special Tax for the previous Fiscal Year. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX 1. ZONE 1 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the 'Zone I Special Tax Requirement and levy the Special Tax in Zone 1 until the amount of Special Taxes levied in Zone 1 is equal to the Zone I Special Tax Requirement. The Special Tax shall be levied in Zone 1 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone I Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessors Parcel of Undeveloped Property in Zone 1 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 1 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone I whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone I pursuant to steps two and three above,and City of Rancho Cucamonga December 9, 2002 CFD No.2003-01(1A No. 2) Page 7 Resolution No. 02-327 Page 44 of 52 (i)all authorized CFD No. 2003-01 (IA No.2)Bonds have already been issued,or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No.2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. 2. ZONE 2 Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Zone 2 Special Tax Requirement and levy the Special Tax in Zone 2 until the amount of Special Taxes levied in Zone 2 is equal to the Zone 2 Special Tax Requirement. The Special Tax shall be levied in Zone 2 each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 2 in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100%of the Maximum Special Tax for Undeveloped Property; Third: If additional monies are needed to satisfy the Zone 2 Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 2 whose Maximum Special Tax is equal to the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel. Notwithstanding the above,the Council may in any Fiscal Year levy Proportionately less than 100%of the Assigned Special Tax in step one(above)when the Council no longer must levy a Special Tax in Zone 2 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (IA No.2)Bonds have already been issued, or (ii)the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No.2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. E. EXEMPTIONS 1. ZONE 1 No Special Tax shall be levied on Public Property in Zone 1. 2. ZONE 2 No Special Tax shall be levied on Public Property in Zone 2. City of Rancho Cucamonga December 9. 2002 CFD No.2007-01(IA No.2) Page 8 Resolution No. 02-327 Page 45 of 52 F. REVIEW/APPEAL COMMITTEE Any taxpayer may file a written appeal of the Special Tax on his/her property with the CFD Administrator,provided that the appellant is current in his/her payments of Special Taxes. During the pendency of an appeal, all Special Taxes 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 amount of the Special Tax shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. 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.2003-01 (lA No.2)may directly bill the Special Tax,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 Assessor's Parcels as permitted by the Act. H. PREPAYMENT OF SPECIAL TAX 1. Payment in Full Only an Assessor's Parcel of Developed Property,or Undeveloped Property for which a building permit has been issued, may be prepaid. The Special Tax obligation applicable to an Assessor's Parcel in CFD No. 2003-01 (IA No. 2) may only be prepaid after all authorized CFD No. 2003-01 (IA No. 2)Bonds have already been issued,or after the Council has covenanted that it will not issue any additional CFD No.2003-01 (IA No.2)Bonds(except refunding bonds)to be supported by Special Taxes levied under this Rate and Method of Apportionment. The obligation of the Assessor's Parcel to pay any Special Tax maybe permanently satisfied as described herein, provided that a prepayment may be made with respect to a particular Assessor's Parcel 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 Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice,the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. Prepayment must be made not less than 45 days prior to any redemption date for the CFD No.2003-01 (IA No.2)Bonds to be redeemed with the proceeds of such prepaid Special Taxes. City of Rancho Cucamonga Decemdrr 9, 2002 CFD No. 2003-01(IA No. 2) Page 9 Resolution No. 02-327 Page 46 of 52 The Prepayment Amount(defined below)shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below), shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which building permits have already been issued, compute the Maximum Special Tax for the Assessor's Parcel to be prepaid as though it were already designated as Developed Property,based upon the building permit which has been issued for that Assessor's Parcel. 3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the estimated Maximum Special Taxes for the entire Zone in which the Assessor's Parcel is located based on the Developed Property Special Taxes which could be charged in the current Fiscal Year on all expected development in such Zone, excluding any Assessor's Parcels in such Zone which have been prepaid;and 4. (a) For Assessor's Parcels in Zone 1, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone I Bonds to compute the amount of Outstanding Zone 1 Bonds to be retired and prepaid; or (b) For Assessor's Parcels in Zone 2, multiply the quotient computed pursuant to paragraph 3 by the Outstanding Zone 2 Bonds to compute the amount of Outstanding Zone 2 Bonds to be retired and prepaid(in either(a) or(b)above,the"Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount for the appropriate Zone computed pursuant to paragraph 4 by the applicable redemption premium (e.g., the redemption price — 100%), if any, on the Outstanding Zone 1 or Zone 2 Bonds to be redeemed(the"Redemption Premium"). 6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01 (lA No. 2) Page 10 Resolution No. 02-327 Page 47 of 52 current Fiscal Year until the earliest redemption date for the Outstanding Zone I or Zone 2 Bonds,as applicable. 7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 8. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Zone 1 or Zone 2 Bonds,as applicable,to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8. 10. Compute the net present value of the amount computed pursuant to paragraph 9,using as a discount rate the rate of return reasonably assumed by the CFD Administrator in paragraph 8 (the"Defeasance Amount"). 11. The administrative fees and expenses of CFD No.2003-01 (IA No.2)are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 2003-01 (IA No. 2)Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 12. 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 Zone 1 or Zone 2 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 Zone 1 or Zone 2 Bonds,as applicable, 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. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Outstanding Zone 1 or Zone 2 Bonds, as applicable, is below 100%of the reserve requirement(as defined in the Indenture). 13. If any capitalized interest for the Outstanding Zone 1 or Zone 2 Bonds, as applicable, will not have been expended as of the first bond interest and/or principal payment date following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 3 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit'). City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01(IA No. 2) Page Il Resolution No. 02-327 Page 48 of 52 14. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4,5, 10,and 11,less the amounts computed pursuant to paragraphs 12 and 13(the"Prepayment Amount"). From the Prepayment Amount,the amounts computed pursuant to paragraphs 4,5, 10, 12 and 13 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Zone 1 or Zone 2 Bonds,as applicable, or make debt service payments. The amount computed pursuant to paragraph 11 shall be retained by CFD No.2003-01 (IA No.2). The Prepayment Amount may be sufficient to redeem other than a$5,000 increment of CFD No.2003-01(IA No.2)Bonds. In such cases,the increment above$5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of CFD No.2003-01 (IA No.2)Bonds or to make debt service payments. Upon confirmation of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 (above), the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel for which the Special Tax obligation is prepaid in full in accordance with this Section H.1., the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing,no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied within the entire Zone in which the Assessor's Parcel's Special Tax obligation is prepaid both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Zone l or Zone 2 Bonds,as applicable. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property and an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1;except that a partial prepayment shall be calculated according to the following formula: PP=PEXF These terms have the following meaning: PP= the partial prepayment PE= the Prepayment Amount calculated according to Section H.1 City ofRancbo Cucamonga December 9, 2002 CFD No.2003-01(1A No. 2) Page 12 Resolution No. 02-327 Page 49 of 52 F= the percentage by which the owner of the Assessor's Parcel(s) is partially prepaying the Special Tax. The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of(i)such owner's intent to partially prepay the Special Tax,and (ii)the percentage by which the Special Tax shall be prepaid,and(iii)the company or agency that will be acting as the escrow agent, if any. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within thirty(30)days ofthe request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Section H.1,and(ii) indicate in the records of CFD No.2003-01 (IA No.2)that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F)of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. 1. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed 50 years commencing with Fiscal Year 2003-04, provided however that Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2003-01 (IA No.2)Bonds have been paid;and(ii)all Authorized Facilities have been constructed. K:ICliems2lRanchoCu ongal VicmriaCardem IRMAVmprovementArea2_3.doc Prepared: 12NM2 City of Rancho Cucamonga December 9, 2002 CFD No.2003-01(fA No. 2) Page 13 Resolution No. 02-327 Page 50 of 52 ATTACHMENT A MAP OF ZONE 1 AND ZONE 2 Resolution No. 02-327 Page 51 of 52 PROPOSED BOUNDARIES SHEET I OF I SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO. 2, ZONE 1 & 2 CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA EASE LINE ROAD N.Av. N.P. 1 NAP NAP ART, =—T- NAP q. N.,P. NAD. NAP. IT A N" NAP rvw P. NAP NAP 3 N.P. NA, =NNxENa. G 'u `PENT,LHLEE 14 N.P. NAP. n NAP a AVN:::.x11+1 - g NAP. NAP 8 s_ NAP. AP.I ZONE 2 A « as a«,Nµ ?ENG.,= ANN IT P NAP. ITT CHFACEENATICAN.". E.C., = 1.FIACAPN� '° 1 131.EANN .>9 AT I A A IT I n L Nw NTREA. 'A' 4FVAM FW,E«I 1 ZONE 1 FAI it I PRINT mem" TIRE GRAPHIC SCALE I PAFAR 1. 2EAS O �KIETI NF.LEE U AT AD SON W EIII �— / en.c. — Y♦OF m+ OY Cr '...A meGIHT1 OF a,.acNNm 3N.=N.OFN.ur=No=u<.+I TLAK_DAY c._.zm� MDS CONSULTING cNY aEPN Gv,NE cm Nr wN=NG=GCANw,G. NO VGNONGA.COUNTY OFSANBENNMgNO,STAR OF ULIPoPxw WAS AP pPIEO EY THECOD CODICIL APROVERENTE AREA ART 2 CITY OF M C Resolution No. 02-327 Page 52 of 52 COMMUNITY FACILITIES DISTRICT NO.2003-01 IMPROVEMENT AREA NO.2 ZONE 1 ASSESSOR PARCEL NUMBERS 229-021-62 229-021-63 229-021-64 ZONE 2 ASSESSOR PARCEL NUMBERS 227-211-39 227-211-40 227-211-41 227-211-42 227-211-43