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HomeMy WebLinkAbout03-031 - Resolutions RESOLUTION NO. 03-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, MAKING MODIFICATIONS TO THE CITY OF RANCHO CUCAMONGA FACILITIES DISTRICT NO. 2003-01, ESTABLISHING THE DISTRICT, ESTABLISHING TWO IMPROVEMENT AREAS THEREIN, ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE DISTRICT, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN EACH IMPROVEMENT AREA, CALLING A SPECIAL ELECTION WITHIN EACH IMPROVEMENT AREA AND TAKING CERTAIN ACTIONS RECITALS: A. The City Council (the "City Council") of the City of Rancho Cucamonga, California (the "City"), has previously adopted Resolution No. 02-327 stating its intention to conduct proceedings to form City of Rancho Cucamonga Community Facilities District No. 2003-01 (the "District") and to establish two improvement areas, Improvement Area No. 1 and Improvement Area No. 2 (each an "Improvement Area" and collectively the "Improvement Areas") therein, 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 certain public facilities. B. A copy of Resolution No. 02-327 setting forth a description of the proposed boundaries of the District and the Improvement Areas therein, the facilities to be financed by the District, including incidental expenses, and the rate and method of apportionment of the special tax proposed to be levied within each Improvement Area is on file in the office of the City Clerk of the City and, is incorporated herein by reference. C. The City Council has previously adopted Resolution No. 02-328 stating the City Council's intention, acting as the legislative body of the District, to authorize the issuance and sale of a series of bonds for Improvement Areas No. 1 in the maximum aggregate principal amount of $16,000,000 and a series of bonds for Improvement Area No. 2 in the maximum aggregate principal amount of $4,000,000 to finance the cost of designing and constructing such public facilities. D. Resolution Nos. 02-327 and 02-328 set February 5, 2003 as the date of a public hearing (the "Hearing') on the establishment of the District and the Improvement Areas therein, the extent of the District and each Improvement Area therein, the furnishing of specified types of public facilities within the District, the proposed rate and method of apportionment of the special tax within each Improvement Area, and the proposed debt issues. E. A notice of the Hearing was published and mailed to all landowners proposed to be included in the District in accordance with the Act. Resolution No. 03-031 Page 2 of 64 F. Prior to the Hearing there was filed with the City Council a report (the 'Report') containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act. G. On February 5, 2003, the City Council opened the Hearing and continued the Hearing to February 19, 2003. H. At the Hearing all persons desiring to be heard on all matters pertaining to 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, the proposed rate and method of apportionment of the special tax, and the proposed debt issues were heard and a full and fair hearing was held. I. At the Hearing evidence was presented to the City Council on the matters before it and the City Council at the conclusion of the Hearing is fully advised as to all matters relating to the formation of the District and the establishment of the Improvement Areas therein, the levy of the special tax and the issuance of bonded indebtedness therein. J. The City Council desires to modify the rate and method of apportionment of the special tax, as proposed by the Resolution No. 02-327, in order to clarify the consequences to the apportionment of the special tax should certain proceeds of the tax not be required to pay for school facilities and in order to clarify the scope of improvements. K. The City Council desires to proceed with the establishment of the District and the two Improvement Areas therein and to proceed to make the necessary findings to incur the bonded indebtedness. L. The City Council desires to hold a special election within each Improvement Area of the District, at which time there will be submitted to the qualified electors of each Improvement Area certain propositions relating to the authorization to levy a special tax within the Improvement Area, the establishment of an appropriations limit for the District and the incurrence of bonded indebtedness to pay for certain facilities in connection with the District. M. The City Council has determined that there have been fewer than twelve registered voters residing in the proposed boundaries of the District and each proposed Improvement Area therein for the period of 90 days prior to February 19, 2003 and that the qualified electors within each Improvement Area are the landowners within the respective Improvement Area. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: Recitals. The above recitals are all true and correct. I Resolution No. 03-031 Page 3 of 64 SECTION 2: Finding of Validity. Pursuant to Section 53325.1(b) of the Act, the City Council finds and determines that all of the proceedings prior hereto were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Act. SECTION 3: Name of District and Improvement Areas. The City Council hereby establishes and declares the formation of a community facilities district pursuant to the Act to be designated "City of Rancho Cucamonga Community Facilities District No. 2003-01" (the "District') and hereby establishes and declares the formation of two improvement areas within the District to be designated "Improvement Area No. 1," and "Improvement Area No. 2" (individually, an 'Improvement Area" and collectively, the "Improvement Areas"). SECTION 4: Modifications. Pursuant to Section 3325 of the Act, Resolution No. 02-327 is hereby modified as follows: (a) The facilities proposed to be financed by the District under the Act is modified to consist of those facilities set forth in Exhibit "A", attached hereto and incorporated herein by reference. (b) The rate and method of apportionment of the Special Tax among parcels of real property in Improvement Area No. 1 of the District, is modified to be as shown in Exhibit "B," attached hereto and incorporated herein by reference, which includes 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. Such modification will not increase the probable special tax to be paid by the owner of any lot or parcel. SECTION 5: Facilities. The facilities proposed to be financed by the District under the Act shall consist of those facilities set forth on Exhibit "A," (the "Facilities"). The estimated cost of the Facilities and incidental expenses to be financed is set forth in the Report, which estimates may change as the Facilities are designed and bid for construction. The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds that the proposed Facilities are necessary to meet the increased demand that will be placed upon public infrastructure as a result of new development within the District. Resolution No. 03-031 Page 4 of 64 SECTION 6: No Majority Protest. The City Council hereby finds that written protests against the establishment of the District, against the furnishing of a specified type of facility within the District, or against the levying of a specified special tax within the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half or more of the area of land within the boundaries of the District. The City Council hereby finds, with respect to each proposed Improvement Area, that written protests against the establishment of the District, against the establishment of that Improvement Area, against the furnishing of a specified type or types of facilities within the District or that Improvement Area or against the levying of a specified special tax within that Improvement Area have not been filed by one-half or more of the registered voters within the boundaries of that Improvement Area or by the property owners of one-half or more of the area of land within the boundaries of the Improvement Area. The City Council finds that no written protests have been filed by holders of leaseholds or posessory interests in property within the District owned by a public agency. Therefore, the City Council finds and declares that the special tax to be levied in each Improvement Area has not been precluded by majority protest pursuant to Section 53324. SECTION 7: Soecial Tax. 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, a special tax (the "Special Tax") is hereby authorized, subject to approval by two-thirds of the votes cast within each Improvement Area of the District, to be levied annually in accordance with the procedures of the Act within the boundaries of each Improvement Area sufficient to pay for the costs thereof, including incidental expenses. The Special Tax will be secured by the recordation of a continuing lien against all non-exempt property in each respective Improvement Area of the District and will be collected in the same manner as ordinary ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien in any 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. 03-031 Page 5 of 64 The proposed rate and method of apportionment of the Special Tax among parcels of real property within each Improvement Area in the District, in sufficient detail to allow each resident or landowner within each Improvement Area, as well as each holder of a leasehold or posessory interest in property within the District owned by a public agency, to estimate the maximum amount such resident, owner, lessee or holder of a posessory interest will have to pay, are shown in Exhibits "B-1" and "B-2", attached hereto and incorporated herein by reference. The Special Tax is based upon the expected demand that each parcel will place on the Facilities and the benefit that each parcel derives from the right to access the Facilities and the City Council hereby determines such basis to be reasonable. 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 Exhibits "B-1" and "B-2" hereto; and (iii) under no circumstances will the Special Tax 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. Subject to the limitations set forth in the previous paragraph, in the event that a portion of the property within an Improvement Area shall become exempt for any reason, wholly or partially, from the levy of the Special Tax, the City Council shall, on behalf of the District, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Exhibits'B-1" and "B-2" to the extent necessary upon the remaining property within the respective Improvement Area which is not delinquent or exempt in order to yield the Special Tax revenues required for the purposes described herein. The City Council finds that there is not an ad valorem property tax currently being levied on property within the District for the exclusive purpose of paying principal or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of the District as are proposed to be provided by the Facilities to be financed by the District. Resolution No. 03-031 Page 6 of 64 SECTION 8: Notice of Special Tax Lien. Upon recordation of a notice of special tax lien with respect to each Improvement Area pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in each Improvement Area, and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and lien canceled in accordance with law or until collection of the Special Tax by the City Council ceases. SECTION 9: Appropriations Limit. An appropriations limit for the District is hereby established, subject to voter approval, as an amount equal to all the proceeds of the Special Tax collected annually within such District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population. SECTION 10: Agricultural. Timber or Livestock Uses. The City Council hereby finds and declares that lands within the District, if any, being devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or products is contiguous to other land which is included within the District and that such lands will be benefited by the Facilities to be provided within the District. SECTION 11: Preparation of Annual Roll. The current GIS/Special Districts Supervisor, City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, California 91730, telephone number (909) 477-2700, extension 2575 is designated to be responsible for preparing annually, or authorizing a designee to prepare, a current roll of Special Tax levy obligations by assessor's parcel number and for estimating future Special Tax levies pursuant to Section 53340.2 of the Act. SECTION 12: Report. The Report is hereby approved and is made a part of the record of the public hearing regarding the formation of the District and the Improvement Areas therein and is ordered to be kept on file in the office of the City Clerk and open for public inspection. SECTION 13: Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special tax described in Section 6 above: Resolution No. 03-031 Page 7 of 64 A. Such special tax shall be levied for the specific purposes set forth in Section 6 hereof. B. The proceeds of the levy of such special tax shall be applied only to the specific purposes set forth in Section 6 hereof. C. The District shall establish an account or accounts into which the proceeds of such special tax shall be deposited. D. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 14: Election. The City Council herewith submits the establishment of the appropriations limit for the District and the levy of the Special Tax to the qualified electors of each respective Improvement Area, such electors being the landowners within each respective Improvement Area who are the owners of record on the date hereof, or the authorized representatives thereof, with each landowner having one vote for each acre or portion of acre owned. There is hereby called and ordered to be held in each Improvement Area on February 19, 2003, or such later date as is consented to by the City Clerk and the landowners within the District, a special election for the purpose of submitting such propositions to the voters. The City Council hereby further directs that with respect to each Improvement Area the ballot proposition relating to the levy of the Special Tax and the proposition relating to the incurring of a bonded indebtedness be combined into one ballot proposition. The City Clerk shall conduct the elections, shall give notice as required by law and shall procure such services and supplies as are necessary for the conduct of the election. Except as otherwise provided by the Act, the elections shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the elections shall be conducted in accordance with the provisions of law regulating elections of the City of Rancho Cucamonga insofar as such provisions are determined by the City Clerk to be applicable. SECTION 15: CEQA. On February 20, 2002, by its Resolution No. 02-056, the City Council certified an Environmental Impact Report and a Statement of Overriding Considerations with regard to the Facilities (the 'Project'). There are no changes to the Project, no new information of substantial importance, and no changed circumstances within the meaning of CEQA. Thus, the preparation of further environmental documentation is not needed or required. Resolution No. 03-031 Page 8 of 64 PASSED, APPROVED, AND ADOPTED this 19`h day of February 2003. AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams NOES: None ABSENT: None ABSTAINED: None illiam J. Al ander, Mayor ATTEST: bra J. Ad s, CMC, 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 19`h day of February 2003. Executed this 20'x' day of February 2003, at Rancho Cucamonga, California. De ra J. Adam , MC, City Clerk Resolution No. 03-031 Page 9 of 64 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 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 Resolution No. 03-031 Page 10 of 64 Other Improvements Serving Properties Located within the Community Facilities District Dry Utility Improvements 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. 03-031 Page 11 of 64 Exhibit"B-1" Rate and Method of Apportionment for Improvement Area No. 1 Resolution No. 03-031 Page 12 of 64 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 (IA 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 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. 1):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"faxes 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 (]A No. 1) 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 (lA 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. City ojRancho Cucamonga February 12,2003 CFD No.1003-01(lA No. I) Page I Resolution No. 03-031 Page 13 of 64 "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. I)Bonds 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 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 Cityof Rancho Cucamonga Community Facilities District No. 2003-01 (Victoria Gardens). "CFD No.2003-01 (IA No. 1)" means Improvement Area No. I of CFD No.2003-01,as identified on the boundary map for CFD No. 2003-01. "CFD No.2003-01 (IA No.1)Bonds"means anybonds 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 February 12,2003 CFD No.2003-01(IA No.1) Page 2 Resolution No. 03-031 Page 14 of 64 "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 1 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(ii)the Zone 1 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 amountof 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(ii)the Zone 2 Allocation,minus(b)the principal amount of the CFDNo.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 or a refund from the Etiwanda School District pursuant to that certain Joint Community Facilities Agreement dated as of February 19, 2002 between the City and t1he Etiwanda School District,or from the Chaffey Joint Union High School District,pursuant to that certain Joint Community Facilities Agreement dated as of February 19, 2002 between the City and the Chaffey Joint Union High School District. "Outstanding Zone 3 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 City ofR"cho Cucamonga February 12,1093 CPD No.2003-01(IA No. 1) Page 3 Resolution No. 03-031 Page 15 of 64 from prepayments of Special Taxes; and(ii)the Zone 3 Allocation,minus(b)the principal amount of the CFD No.2003-01 (IA No.l)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. "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,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 (IANo. 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 entityand 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. City of Rancho Cucamonga February 12,1003 CFD No.2003-01(1A No.1) Page 4 Resolution No. 03-031 Page 16 of 64 "Taxable Property"means all of the Assessor's Parcels within theboundaries 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. "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 1 Allocation"means the percentage of CFD No.2003-01(IA No.l)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 1 Allocation is 6.72%. "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. 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 1 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 I 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 Zone 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. City of Rancho Cucamonga February 12,2003 CFD No.2003-01(/A No. I) Page 5 Resolution No. 03-031 Page 17 of 64 "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. For the purposes of this definition,all amounts held in the funds and accounts under the Indenture which are intended to be used to pay debt service on CFD No.2003-01 (IA No. 1)Bonds issued and outstanding, and which are derived from refunds from the Etiwanda School District pursuant to that certain Joint Community Facilities Agreement dated as of February 19,2002 between the City and the Etiwanda School District,or from the Chaffey Joint Union High School District, pursuant to that certain Joint Community Facilities Agreement dated as of February 19,2002 between the City and the Chaffey Joint Union High School District shall be considered amounts available to reduce the annual Special Tax levy within Zone 2. "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(LA 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 Taxesbased 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. City of Rancho Cucamonga February 12,1003 CFD No.2003-01(1A No.1) Page 6 Resolution No. 03-031 Page 18 of 64 C. MAXIMUM SPECIAL TAX RATE 1. ZONE 1 a. Zone 1 Developed Property (i). Maximum Special Tax The Maximum Special Tax for each Assessor's 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. (ii). Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property in Zone 1 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 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 1 of CFD No. 2003-01 (IA No. 1) 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. City ojRancho Cucamonga February 12,2003 CFD No.2003-01(lA No. 1) Page 7 Resolution No. 03-031 Page 19 of 64 2. ZONE 2 a. Zone 2 Developed Property 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. 1) shall equal $36,294 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 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 (2a/a) 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 City of Rancho Cucamonga February 1$200J CFD No.2003-01(IA No. IJ Page 9 Resolution No. 03-031 Page 20 of 64 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. 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. A 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 1 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 1 Special Tax Requirement after the first step has been completed,the Special Tax shall be levied February 12,2003 City ojRancbo Cucamonga Page 9 CFD No.2003-01(1A No. 1) Resolution No. 03-031 Page 21 of 64 Proportionately on each Assessor's 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 1 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 1 pursuant to steps two and three above,and (i) all authorized CFD No. 2003-01 (1A 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. l)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 owners are also delinquent or in default on their Special Tax payments for one or more other properties within Zone 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 City of Rancho Cucamonga February 11,1003 CFD No.1003-01(1A No.1) Page 10 Resolution No. 03-031 Page 22 of 64 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. 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; 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 ofUndeveloped 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 Assessor's 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. City of Rancho Cucamonga February Il,2003 CFD No.2003-01(IA No.I) Page II Resolution No. 03-031 Page 23 of 64 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. 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 City of Rancho Cucamonga February 12,1003 CFD No.2003-01(IA No.1) Page 12 Resolution No. 03-031 Page 24 of 64 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 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. 1)Bonds to be redeemed with the proceeds of such prepaid Special Taxes. 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 City ojRancbo Cucamonga February I2,1003 CFD No.2003-01(!A No. 1) Page 13 Resolution No. 03-031 Page 25 of 64 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 (c) 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 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 ofreturn reasonably assumed by the CFD Administrator in paragraph 8 (the "Defeasance Amount"). City of Rancho Cucamonga February 12,2003 CFD No.1003-01(1A No. 1) Page 14 Resolution No. 03-031 Page 26 of 64 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 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 may be sufficient to redeem other than a$5,000 increment of CFD No.2003-01 (IA No. 1)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. 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 City of Rancho Cucamonga February 12,2003 CFD No.2003-01(/A No.1) Page 15 Resolution No. 03-031 Page 27 of 64 tax rolls. With an respect to Assessor's Parcel for which the Special Tax obligation P Y 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 a partial prepayment shall be calculated according to the following formula: PP=PEXF These terns have the following meaning: 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 parially 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 parially 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 of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is parially 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 (TA No. 1)that there has been a partial prepayment of the Special Tax and that a portion of the Assigned Special Tax and Maximum Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage (1.00 - F) of each, respectively, shall continue to be levied on such Assessor's Parcel pursuant to Section D. City of Rancho Cucamonga February 11,2003 CFD No.2003-01(IA No. I) Page 16 Resolution No. 03-031 Page 28 of 64 I. 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. 1)Bonds have been paid; and(ii) all Authorized Facilities have been constructed. K:ICiiaaa2U?aachoCucamaagalVc(ariaGardewIRMAumprammeaN rea17.doc prepared.2112103 February 12,2003 City of Rancho Cucamonga page 17 CFD No. 2003-01(IA No.1) Resolution No. 03-031 Page 29 of 64 ATTACHMENT A MAP OF ZONES 1 THROUGH 3 Resolution No. 03-031 Page 30 of 64 PROPOSED BOUNDARIES SHEET 1 OF i 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 xwv w4x. 1 xws. xwI x..n e xws. ruv. z \ xwn. xwv. vwv xwv. ° xH. , wv.xwv. E ucPw ° rwilLF m-.a... xwv. i i3eicnl.a s. .c. I S �/ �— '� ZONEI x 8 99 'p, xv I 3 HM. 1 N U�301y y I yMxC cMrmE I t r I ZONE 2 r 1 aNKxn.. d�� ------------------ I �I p I I ---ZONES --� LEGEND: 1-� J 1 1 1 I NM NA➢. i I � j Nw0. j I �INVAiELY ONNFD ENENr 1 WWWWWW I I 1 MNMO PPOFEAT' 1 1 11 I II cgnvNSc scnLE I I my 1 0 1 I p L 1 M+E`AJ14 « 1 1'�i veyfE55, Esc ''i xx rmve�m Y 9-AF45 FxEOxmE OFFxEOF rle=muE,«OF.xE rP.ww,cxO c,cxOxc.BFlx—w.o<_—>a° MDS CONSULTING cm aENx of+xE cm n NFNc xO lvcwoxw I,enWBEUFN4i ME x].T1.ELm PMILWCCGMONw.CWNIVO�SMIBEPINPDNB.STxT OF CP1xgiNM WaSwnP FWFDBVEixECIC�T JwT lxE Lily of Pglt,q CJEV wOxFa•i n PECLUA,eEE I W c MF PELF.HEIU CN ME—wv OF�M�B xEPWO S ECI cm aEPx w.xE c m a NFxcxO cuceLwlx.. Mo wwnw wn eEAxnwr+o�s*vrEaF cwFw¢• FwEFF.z VsIR.1e n.P.oE��^ ccoFM cwxwn—o OCR,me cwxn PEcoPOENOF wwnasw vv..nuun Resolution No. 03-031 Page 31 of 64 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 4°47'42"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 UNE 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 25004'56" 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 21043'28"AN ARC LENGTH OF 80.76 FEET; THENCE SOUTH 0004'59" 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 90000'00"AN ARC LENGTH OF 39.27 FEET;THENCE NORTH 89055'01"WEST 579.84 FEET; THENCE SOUTH 0004'59'EAST 50.00 FEET;THENCE NORTH 89055'01'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 1503246" AN ARC LENGTH OF 38.98 FEET; THENCE NORTH 89055'01" 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 8'00'31" 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 88°29'55" 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. 03-031 Page 32 of 64 THENCE NORTH 1028'43" WEST 294.75 FEET; THENCE NORTH 4478'08" 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: R� -11�4 �EY C. STANLEY C.MORSE, P.L.S.3640, DATED 12-06-02 LICENSE EXPIRES 6-30-04 A #, Exp. 6/30/2004 m No. 3640 camnoaecnEs\uiai.00c 'rsylF `P OF CqL\F Resolution No. 03-031 Page 33 of 64 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"58'47" WEST 93.23 FEET; THENCE SOUTH 43°51'29" 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 69030'05"EAST 250.72 FEET; THENCE LEAVING LAST SAID SOUTHEASTERLY LINE, NORTH 0°04'59" EAST 75.98 FEET; THENCE NORTH 89'55'01"WEST 604.06 FEET; THENCE SOUTH 0°04'59"WEST 8.61 FEET; THENCE SOUTH 54'49'11" WEST 24.12 FEET; THENCE NORTH 4'50'51" 9.14 FEET; THENCE NORTH 85°09'09" WEST 104.26 FEET; THENCE NORTH 0'04'58" EAST 22.99 FEET; THENCE NORTH 89°55'01" 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 0°15'45"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 1'48'05" AN ARC LENGTH OF 80.87 FEET; THENCE LEAVING SAID EAST LINE OF DAY CREEK BOULEVARD, NORTH 22'04'33" EAST 26.70 FEET; THENCE SOUTH 89'55'01" 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 AF 8000'31" 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. 03-031 Page 34 of 64 NORTHERLY ALONG LAST SAID TANGENT CURVE THROUGH A CENTRAL ANGLE OF 90°00'00" AN ARC LENGTH OF 39.27 FEET; THENCE NORTH 0°04'59" 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 21°43'28" AN ARC LENGTH OF 80.76 FEET;THENCE NORTH 21°48'29"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 2403926'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 13000'40" 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 DIRECTION: LAND C. STANLEY C.MORSE,P.L.S.3640, DATED 12-06-02 LICENSE EXPIRES 6-30-04 * Exp. 6/70/2004 Na. 7640 G:�01101 EGAL3 1,71 OC - 1p9 �p lF CALO Resolution No. 03-031 Page 35 of 64 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 89055'01" 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 89055'01"EAST 54.47 FEET;THENCE SOUTH 0°04'59" WEST 103.00 FEET;THENCE SOUTH 89055'01"EAST 623.93 FEET;THENCE SOUTH 0004'58"WEST 22.99 FEET; THENCE SOUTH 85009'09" EAST 104.26 FEET; THENCE NORTH 4050'51" 9.14 FEET; THENCE NORTH 64049'11"EAST 24.12 FEET; THENCE NORTH 0004'59"EAST 8.61 FEET; THENCE SOUTH 89055'01" EAST 604.06 FEET; THENCE SOUTH 0004'59" WEST 75.98 FEET TO THE SOUTHWESTERLY LINE OF SAID PARCEL MAP NO. 15641; THENCE SOUTHWESTERLY ALONG SAID SOUTHEASTERLY LINE, SOUTH 69030'05" 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 38000'00"AN ARC LENGTH.OF - 431.10 FEET;THENCE SOUTH 31030'05"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: C.,�GP� pP o STANLEY C. MORSE,P.L.S.3640,DATED 12-06-02 LICENSE EXPIRES 6-90-04 * c.o. 6/30/2004 No, 3640 J�9 �P G:Q901101EGALSVA1-Z3.D0C IeCF CALIF Resolution No. 03-031 Page 36 of 64 ATTACHMENT B PRIVATELY OWNED EXEMPT PARKING PROPERTY LISTING Resolution No. 03-031 Page 37 of 64 SHEET 1 OF 2 SHEETS PARKING STRUCTURE PARCELS PARCEL MAP NO. 15641 P.M.B. 192/93-100 12 6 7 11 CHURCH STREET 24 25 26 N 8755'01"W, 2223.15' 16 14 23D-ZSEE PARCEL P2 O SHEET 2 N.A.P. J :........ ............................ p PARCEL P1 m Y 17 w 22 PARCEL MAP 7966 o V P.M.B.86/1-3 Om d a O 1y °O 15 m �P LU 2 CO a 18 21 Q � a 20 19 FOOTHILL BOULEVARD (ROUTE 66) 1 �—y f-- 111 LANA S BEY C. GPS e9N o 600 300 0 600 * Exp. 6/30/2004 * No364D GRAPHIC SCALE . �T9lF OF CAQ PREPARED UNDER THE SUPERVISION OF: LEGEND ® INDICATES SUBJECT PARCEL AREA INDICATES SUBJECT PARCEL LINE STANLEY C. MORSE LS. 3640 XPIRES 6 30 2004 INDICATES EXISTING PARCEL LINE I:\46606\MAPPING\PRKSTI-I 11-13-02 Resolution No. 03-031 Page 38 of 64 SHEET 2 OF 2 SHEETS PARKING STRUCTURE PARCELS NW CORNER PARCEL MAP NO. 15641--]\/P.M. 7966 P.M.B. 192193.100 26 25 N 8555'01" W 2223.15' 107.59' 407.93' 1107.63 -h-� � I o I NI Y O ml m 1s b N M �io aIr o'2, N of to mo bi o it it w i4 rnN a�c¢ z ate o zl z zl P.O.B. ' N 8555'01" W 326.99' A-36'52'12•. 1„ R=25.00' L=16.09' "' oZR7/ate o ry/a o f v; 0 n z w o CULTURAL ARTS ¢ m PARCEL P2 w w PARCEL Pl 2 €n 1,771 AC. 2.478 AC. n CENTER PARCEL _, mLU < L) b b � a b d z z N8555'01'W 236.00' N 8555'01• W 331.99' t� I 1,ANO K 0 C U � m J 150 75 0 150 * E.p. 6/30/2004 No. 3640 GRAPHIC SCALE t9TF OF CALF PREPARED UNDER THE SUPERVISION OF: . LEGEND ® INDICATES SUBJECT PARCEL AREA INDICATES SUBJECT PARCEL LINE STANLEY C. MORS L.S. 3640 EXPIRES 6 30 2004 INDICATES EXISTING PARCEL LINE I:\46606\MAPPING\PRKSTI-2 11-13-02 Resolution No. 03-031 Page 39 of 64 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 89155'01" EAST 707.59 FEET; THENCE LEAVING SAID NORTH LINE, SOUTH 0004'59" 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 00004'59" 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 89°55'01" 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 00004'59" WEST 10.00 FEET;THENCE NORTH 89°55'01"WEST 10.17 FEET;THENCE SOUTH 00104'59"WEST 324.61 FEET;THENCE SOUTH 89055'01"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 23°28'33" 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 23°28'33"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 GA666%061LEGA SPKG-SMDOC Resolution No. 03-031 Page 40 of 64 EXHIBIT A-2 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA 2 Resolution No. 03-031 Page 41 of 64 Exhibit "B-2" Rate and Method of Apportionment for Improvement Area No. 2 Resolution No. 03-031 Page 42 of 64 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 (lA 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 andpreparing 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. 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 ofthe City,of CFD No.2003-01(IANo.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 December 9,2002 CFD No. 2003-01(lA No. 2) page 1 Resolution No. 03-031 Page 43 of 64 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 ofthe 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 Cityof 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(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.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 1 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 1 of the previous Fiscal Year. City of Rancho Cucamonga December 9, 2002 CFD No. 2003-01(IA No. 2) Page 2- Resolution No. 03-031 Page 44 of 64 '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 tens "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 (lA 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 1 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 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(1A 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 propertywithin 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 December 9, 2 City of Rancho Cucamonga CFD No.2003-01 (IA No. 2) Pagee 3 3 Resolution No. 03-031 Page 45 of 64 agency,provided however that any property leased by 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 1 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 not classified as Developed Property. "Zone"means Zone 1 or Zone 2,as applicable. "Zone 1"means all Assessor's Parcels located within the boundaries of Zone I asdelineated in Attachment A to this Rate and Method of Apportionment. "Zone 1 Allocation"means the percentage of CFD No.2003-01 (lA 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 man 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 I 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 I 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, 1002 CFD No.1003-01(/A No. 2) Page 4 Resolution No. 03-031 Page 46 of 64 "Zone 2"means all Assessor's Parcels located within the ebou tdaries 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 o Zoe Authorized ne Allocation is aciliti20/o to be financed from the proceeds of such bond issue(s). l "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 reasonably2Special Taxes,as redelinquent onably determined by the CFD Administrator, and(ii)pay 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 Bodndscdl efn th calendar year beginning in said Fiscal Year, (b) accumulate funds to pay Y or 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. AS TO LAND USE CATEGORIES Each Fiscal Year,all Taxable Property within Zone I 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). Maximums 1 Tax . The Maximum Special Tax for each Assessor's 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 I or(ii) the amount derived by application of the Backup Special Tax for Zone 1. December 9, 2002 City of Rancho Cucamonga Page S CFD No. 2003-01 (1A No. 2) Resolution No. 03-031 Page 47 of 64 (ii). Assisned 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 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.2)shall equal$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 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 (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 1 of each Fiscal Year thereafter, by an amount equal to two percent (2a/o) 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. (it). 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 1 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. 2003-01(IA No. 2) Page 6 Resolution No. 03-031 Page 48 of 64 (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 (IA 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 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 I Special Tax Requirement and levy the Special Tax in Zone 1 until the amount of Special Taxes levied in Zone I 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 I in an amount equal to 100% of the Assigned Special Tax for Developed Property; Second: If additional monies are needed to satisfy the Zone 1 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 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 Assessors Parcel of Developed Property in Zone 1 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 1 pursuant to steps two and three above,and December 9, 2002 City of Rancho Cucamonga Page 7 CFD No. 2003-01 (IA No. 2) Resolution No. 03-031 Page 49 of 64 (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 Cacamonga December 9, 2002 CFD No.2003-01(IA No. 2) Page 8 Resolution No. 03-031 Page 50 of 64 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.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 Onl y an Assessor's Parcel of Developed Property,or Undeveloped Property forwhich 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 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.2)Bonds to be redeemed with the proceeds of such prepaid Special,Taxes. December 9,2002 City of Rancho Cucamonga Page 9 CFD No. 2003-0I(!A No. 2) Resolution No. 03-031 Page 51 of 64 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: Paramph 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(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 9,1002 CFD No. 2003-01 pA No. 2) Page 10 Resolution No. 03-031 Page 52 of 64 current Fiscal Year until the earliest redemption date for the Outstanding Zone 1 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 (JA 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 I 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 l 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 11 Resolution No. 03-031 Page 53 of 64 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.I., 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 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.I City of Rancho Cucamonga December 9,2002 CFD No. 2003-01(IA No. 2) Page 12 Resolution No. 03-031 Page 54 of 64 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 of the 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. I. 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.CUbArm choCvcamongal YjctoriaGardew"A Vmprav enumuL.doc Prepared: IWM2 City of Rancho Cucamonga December 9, 2002 CFD No.2003-01(IA No. 2) Page 13 Resolution No. 03-031 Page 55 of 64 ATTACHMENT A MAP OF ZONE 1 AND ZONE 2 Resolution No. 03-031 Paae 56 i f 64 PROPOSED BOUNDARIES SHEET 1 OF 1 SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 IMPROVEMENT AREA NO. 2, ZONE 1 & 2 CRY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA —_ i xw➢ i W➢. 1 b i I NP➢. 5 XA➢. I MAP. NA➢. 0 NA➢. 'E � NAF. W.F. ♦ NA➢. 1 ♦ NA➢. 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Resolution No. 03-031 Page 59 of 64 EXHIBIT B-2 Assigned Special Taxes for Developed Property Community Facilities District No. 2003-01 Improvement Area 2 ;. _:hgc�' s '��,Q4Ll6�s R,� .� `c�.^+ x•� w-c�2�m uY+ I"` Developed Property $2,799 per Acre 2 Developed Property $8,480 per Acre -Assigned Special Tax escalates by 2%per year. Resolution No. 03-031 Page 60 of 64 EXHIBIT C-1 Maximum Special Taxes for Undeveloped Property Community Facilities District No. 2003-01 Improvement Area 1 � r a e60. 2 p t r { QgA ON 1 Undeveloped Property $4,798 per Acre 2 Undeveloped Property $12,817 per Acre 3 Undeveloped Property $11,413 per Acre 'Maximum Special Tax escalates by 2%per year. Resolution No. 03-031 Page 61 of 64 EXHI_ B_ IT C-? Maximum Special Taxes for Undeveloped Property Community Facilities District No. 2003-01 Improvement Area 2 Im 1 Undeveloped Property $3,110 per Acre $9,423 per Acre 2 Undeveloped Property. '"Maximum Special Tax escalates by 2%per year. Resolution No. 03-031 Page 62 of 64 EXHIBIT D BOUNDARY MAPS Resolution No. 03-031 Page 63 of 64 PROPOSED BOUNDARIES SHEET I OF 1 SHEETS OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO.2003-01 IMPROVEMENT AREA NO. 1 CITY OF RANCHO CUCAMONGA,COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA MAP ��. nwc rnrww m.nw.:ao I .N. , • I .a. �, x.,.. „.... 1 PMM,�,M, r 1MAI 2o1M 1 A. _ Pp -w = f y m:nn Zp E2 s I „.. I j L------------ I� „• zones mnri waves omuR.n ----�------------------- MA _ E] H crt,vwc ac:ue �rr.Ewor® aao s aL --------- --- owr:w write er+�cmnew:«,Nea,.arwww c....awc+TM:yb w.ar��,.rae1 MDS CONSULTING r..0 cvwuwn. „over«m..m.rr„...:w„:.ww�e...cr„av.v„w.uweaacme,wrnnw.uiw.cou..«m ravres wemnxozmm. �-^�',,a,a,�au"��w.+o.. 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