HomeMy WebLinkAboutTPFA Reso 04-08
i hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula. In witness
whereof, I have hereunto set my hand and affixed the seal of the City of Temecula this 2-^3 day of (A.oj~C»\ 20 °jg_. RESOLUTION NO. TPFA 04-08 su§ (by: A RESOLUTION OF THE BOARD OF
DIRECTOR TEMECULA PUBLIC FINANCING AUTHORITY INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTRICT AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES THEREIN -RORIPAUGH RANCH 03-02 WHEREAS,
under the Mello-Roos Community Facilities Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Board of Directors may commence proceedings
for the establishment of a community facilities district; and WHEREAS, there has been submitted to this Board of Directors Petitions (Including Waivers) of the owners of real property
in the Roripaugh Ranch development within the City of Temecula (collectively, the "Petitions"), requesting the formation by this Board of Directors of a community facilities district
under the Law to be known as the Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "District"); and WHEREAS, under the Law, this Board
of Directors is the legislative body for the proposed District and is empowered with the authority to establish the District and levy special taxes within the District; and WHEREAS,
this Board of Directors now desires to proceed with the actions necessary to consider the establishment of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Temecula Public Financing Authority as follows: Section 1. This Board of Directors proposes to begin the proceedings necessary to establish the District pursuant to the Law. Receipt
of the Petitions to form the District is hereby acknowledged. Section 2. The name proposed for the District is Temecula Public Financing Authority Community Facilities District No. 03-02
(Roripaugh Ranch). Section 3. The proposed boundaries of the District are as shown on the map of the District on file with the Secretary, which boundaries are hereby preliminarily approved.
The Secretary is hereby directed to record, or cause to be recorded, the map of the boundaries of the District in the office of the County Recorder as soon as practicable after the adoption
of this Resolution. Section 4. The types of public facilities (the "Facilities") proposed to be eligible for funding by the District and pursuant to the Law, and the fixed special assessment
lien to be eliminated in whole or in part by payments from the District and pursuant to the Law, shall consist of those items listed on Exhibit A hereto under the headings "Facilities"
and "Prior Lien," respectively, which Exhibit is by this reference incorporated herein. The Executive Director is hereby authorized and directed to enter into a joint community facilities
agreement with the City of Temecula, the County of Riverside, the Riverside County Flood Control and Water Conservation District, the Temecula Community Services District, the R:/TPFA
Resos 2004/TPFA 04-08
Eastern Municipal Water District, the California Department of Transportation, and with any other public entity that will own and/or operate any of the Facilities, such agreements to
be in a form provided by Bond Counsel. Section 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities and the elimination of the Prior Lien
and/or pay the principal and interest as it becomes due on bonds of the District issued to pay for the Facilities and the elimination of the Prior Lien, a special tax sufficient to pay
the costs thereof, secured by recordation of a continuing Hen against all non-exempt real property in the District, will be levied within the District and collected in the same manner
as ordinary ad valorem property taxes or in such other manner as this Board of Directors or its designee shall determine, including direct billing of the affected property owners. The
proposed rate and method of apportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed
District to estimate the maximum amount such owner will have to pay, and which specifies the tax year after which no further special tax will be levied on land used for private residential
purposes and which otherwise complies with applicable provisions of the Law is described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. This Board
of Directors finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the California Government Code (relating to adjustments to ad valorem property taxes and schools financed
by a community facilities district) are inapplicable to the District. Section 6. It is the intention of this Board of Directors, acting as the legislative body for the District, to cause
one or more series of bonds of the Authority to be issued for the District pursuant to the Law to finance a portion of the costs of the Facilities, and to finance the elimination of
the Prior Lien. If so issued, the bonds shall be in the aggregate principal amount of not to exceed $55,000,000, shall bear interest payable semi-annually or in such other manner as
this Board of Directors shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature
not to exceed 40 years from the date of the issuance thereof. Section 7. This Board of Directors reserves to itself the right and authority to allow any interested owner of property
in the District, subject to the provisions of Section 53344.1 of the California Government Code and such requirements as it may otherwise impose, and any applicable prepayment penalties
as prescribed in the indenture or fiscal agent agreement for any bonds of the Authority for the District, to tender to the Treasurer of the Authority in full payment or part payment
of any installment of special taxes for the District or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation
secured thereby, in the manner described in Section 53344.1 of the California Government Code. Section 8. The levy of said proposed special tax in the District shall be subject to the
approval of the qualified electors at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the District, with each owner
having one vote for each acre or portion of an acre of land such owner owns in the District. Section 9. Except as may otherwise be provided by law or the rate and method of apportionment
of the special tax for the District, all lands owned by any public entity, including the United States, the State of California and/or the City of Temecula, or any departments or political
subdivisions of any thereof, shall be omitted from the levy of the special tax to be made R:/TPFA Resos 2004/TPFA 04-08
i hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula. In witness
whereof, I have hereunto set my hand and affixed the seal of the City of Temecula this ... ^o day of f^oJtL. _ 20 ol* . to cover the costs and expenses of the facilities, the elimination
of the of bonds by the Authority for the District and any expenses of the DistriSUSAN W.JONES, .CMC., City Clerk Section 10. The Director of Public Works of the City of Temecufgris-hereby
oi(ected/to study the proposed Facilities for the District and the Prior Lien and to make, or cause~to be made, and file with the Secretary a report in writing, presenting the following:
(a) A brief description of the Facilities eligible to be funded by the District and the Prior Lien. (b) An estimate of the fair and reasonable cost of providing the Facilities, and of
eliminating the Prior Lien, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any Authority or City of Temecula administrative
costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 11. Tuesday, September 28, 2004, at 7:00 p.m. or as
soon thereafter as the matter may be heard, in the regular meeting place of this Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business Park Drive, Temecula, California,
be, and the same are hereby appointed and fixed as the time and place when and where this Board of Directors, as legislative body for the District, will conduct a public hearing on the
establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of the District and the levy of said special
tax with the District. Section 12. The Secretary is hereby directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of
the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall be substantially in the form of Exhibit
C hereto. Section 13. The firms of Fieldman, Rolapp & Associates, David Taussig & Associates, Inc., Stone & Youngberg LLC, Stephen G. White, MAI, Quint & Thimmig LLP and McFarlin & Anderson
are hereby designated as financial advisor, special tax consultant, underwriter, appraiser, bond counsel and disclosure counsel, respectively, to the Authority for the District. The
Executive Director is hereby authorized to execute agreements with said firms for their services related to the District provided that all fees and expenses of such firms are payable
solely from deposits by the landowners in the District or the proceeds of the bonds, if any, issued by the Authority for the District. Section 14. On November 26, 2002, the City Council
of the City of Temecula approved the Roripaugh Ranch Project and specifically adopted Resolution No. 02-111 making certain findings with respect to the approval and certification of
an Environmental Impact Report for the Project ("Roripaugh Ranch EIR"). All of the public improvements which are to be funded by the District were described, evaluated and studied as
part of the Roripaugh Ranch EIR and Council Resolution No. 02-111. No significant changes have occurred with respect to the project or the environment which require further study or
which render invalid the conclusions and findings of the Roripaugh Ranch EIR. No facts exist upon which any findings pursuant to Sections 15162, 15263 or 15265 of the State CEQA Guidelines
could be based to require the preparation of a subsequent EIR, supplemental EIR or addendum to an EIR. Therefore, the Board of Directors hereby determines that the contemplated formation
of a community facilities district and the issuance of community facilities district special tax bonds involving the Authority and the District, in accordance with Section 15061(b) of
the California Environmental Quality Act R:/TPFA Resos 2004/TPFA 04-08
(CEQA) Guidelines is not a "Project" as defined in Section 15378 off the CEQA Guidelines, and is therefore exempt from the requirements of CEQA. Pursuant to CEQA Guidelines Sections
15061(d) and 15062, and the Secretary is hereby directed to cause a Notice of Exemption to be prepared, executed and filed in regard to the foregoing determination. Section 15. The Board
of Directors may in the future, by resolution, approve an agreement pursuant to Section 53314.9 of the California Government Code, to accept an advance or advances of funds or work-in-kind
from one or more landowners in the District or related entities, which advances may be repaid and work-in-kind may be reimbursed to the person or entity which advanced the funds or work-in-kind
subject to compliance with the applicable provisions of Section 53314.9 of the California Government Code. Section 16. This Resolution shall take effect upon its adoption. PASSED, APPROVED
AND ADOPTED, by the Board of Directors of the Temecula Public Financing Authority Authority at a meeting held on the 24th day of August, 2004. Michael S. Naggar, Chairperson ATTEST:
Susan W. Jones, CMC City CUirk/Authority Secretary [SEAL] R:/TPFA Resos 2004/TPFA 04-08
STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, CMC, City Clerk, Authority Secretary of the Temecula Public Financing Authority, HEREBY DO CERTIFY
that the foregoing Resolution No. TPFA 04-08 was duly adopted at a special meeting of the Board of Directors of the Temecula Public Financing Authority on the 24th day of August, 2004,
by the following vote: BOARDMEMBERS: Comerchero, Roberts, Stone, Washington, Naggar BOARDMEMBERS: None BOARDMEMBERS: None BOARDMEMBERS: None AYES: NOES: ABSENT: ABSTAIN: 5000 Susah W.
Jones, CMC City Clerk/AJjthority Secretary I hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the
records of the City of Temecula. In witness whereof, I have hereunto set my hand and affixed the seal of the City of Temecula this 2-0 day of /V> «*re/U 20J>* . SU, R:/TPFA Resos 2004/TPFA
04-08
EXHIBIT A TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) DESCRIPTION OF FACILITIES ELIGIBLE TO BE FUNDED BY THE DISTRICT AND PRIOR LIEN
TO BE ELIMINATED BY THE DISTRICT FACILITIES The District may finance all or part of the costs of the following: 1. Murrieta Hot Springs Road Murrieta Hot Springs Road (MHSR) from the
Westerly Boundary Line of Tract 29661 (existing end of pavement) to Butterfield Stage Road: Improvements include grading for full right-of-way with 2:1 slopes, paving, curb and gutter,
median curb, sidewalk, street lights, signing and striping, traffic signal(s) landscaping, irrigation, storm drain, concrete slope protection, sewer and water pipelines, and other appurtenant
improvements necessary to complete MHSR. 2. Butterfield Stage Road Butterfield Stage Road (BSR) from the Northerly tract boundary to Rancho California Road: Improvements include grading
full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, traffic signal(s), signing and striping, landscaping, irrigation, storm drain, concrete
slope protection, bridges over Santa Gertrudis Creek, and Long Valley Channel, sewer and water pipelines, and other appurtenant improvements necessary to complete Butterfield Stage Road.
3. Nicolas Road 3a Nicolas Road from BSR to the Easterly Metropolitan Water District (MWD) R/W: Improvements include grading right-of-way with 2:1 slopes, paving, asphalt berms, curb
and gutter, sidewalk, asphalt path, split rail fence, street lights, landscaping, irrigation, storm drain, underground sewer and water pipelines, and other appurtenant improvements necessary
to complete Nicolas Road. 3b Nicolas Road from the Easterly MWD R/W to Liefer Road including construction of Calle Garisol realignment to Nicolas Road: Improvements include grading partial
right-of-way (40' travel way) with 2:1 slopes, paving, asphalt berms, curb and gutter, sidewalk, asphalt path, utility relocations, traffic detour, split rail fence, street lights, lights,
signing and striping, landscaping, irrigation, sewer, storm drain, bridge over Santa Gertrudis Creek (including channel lining and transition A-1
structure to bridge), access road, exit structure and other appurtenant improvements necessary to complete Nicolas Road. 3c Nicolas Road Sewer Pipeline from Liefer Road to Joseph Road:
Improvements include installing a 15" main line sewer including street re-pavement, traffic detour and other appurtenant improvements necessary to complete Nicolas Road Sewer pipeline.
3d Nicolas Road and North General Kearny Road intersection signalization: Improvements include signalization of intersection, striping, traffic control and other appurtenant improvements
necessary to complete the signalization. 3e Nicolas Road and Winchester Road intersection widening and signal modification: Improvements include modifications to existing traffic signal,
storm drain, paving, curb and gutter, median curb, bus turn-out, striping, traffic control and other appurtenant improvements necessary to complete the intersection and signal modifications.
4. Calle Chapos Calle Chapos from BSR to Walcott Lane: Improvements include grading half right-of-way width plus twelve feet with 2:1 slopes, paving, AC dike, storm drain and other appurtenant
improvements necessary to complete Calle Chapos. 5. Long Valley Channel Long Valley Channel from the Westerly R/W of BSR to the Easterly Project Boundary: Improvements include grading
of channel, flow-by detention basin, construction of drop structures, trapezoidal channel lining, transition structures to Butterfield Stage Road Bridge, rip-rap, grading and paving
of access roads, fencing, and other appurtenant improvements necessary to complete Long Valley Channel. 6. Santa Gertrudis Creek Santa Gertrudis Creek from the Habitat Area to the exit
channel at MWD R/W: Improvements include a flow-by detention basin, headwalls, trapezoidal channel lining and transition structures; grading, fencing and paving for access roads; desilting
and detention basins, rip-rap protection, rip-rap dissipaters, berms, grading of exit structure and other appurtenant improvements necessary to complete Santa Gertrudis Creek. i i hereby
certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula. In witness whereof,
I have hereunto set hand and affixed the seal of the City of Temecula -.Q da of fVg-rMfr__ 20_ek-. A-2 my
7. Environmental Mitigation Mitigation for the Long Valley Channel and Santa Gertrudis Creek improvements: Creation of 8.2 acres of habitat within open space to include grading, access
road, electrical service, irrigation, plant and seed installation and other appurtenant improvements necessary to complete resource agency conditioned environmental mitigation for the
Long Valley Channel and Santa Gertrudis Creek improvements. 8. Sports Park Sports Park at the SE corner of the intersection of North Loop Road and Butterfield Stage Road: Construct 20±-acre
Sports Park including grading, parking, building, lighting landscaping, irrigation, playing fields, basketball courts, children's play area, equipment with a useful life of five (5)
years or more and other appurtenant improvements necessary to complete the Sports Park. 9. Fire Station Site Grading Roripaugh Ranch Fire Station site grading Improvements include site
grading and other appurtenant improvements necessary to provide a rough graded fire station site. 10. North Loop Road North Loop Road from BSR to Gate House East of BSR (Public Section
only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm
drain, sewer and water pipelines, North Loop Road Bridge and other appurtenant improvements necessary to complete the public segment of the North Loop Road East of BSR. 11. South Loop
Road South Loop Road from BSR to Gate House East of BSR (Public Section only): Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk,
street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete the public segment of the
South Loop Road East of BSR. A-3
12. Roripauqh Valley Road (A Street) Roripaugh Valley Road Grading and Street Improvements from Murrieta Hot Springs Road to Butterfield Stage Road: Improvements include grading full
right-of-way with 2:1 slopes, paving, curb and gutter, median curb, sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and
other appurtenant improvements necessary to complete Roripaugh Valley Road between Murrieta Hot Springs Road and Butterfield Stage Road. 13. Fiesta Ranch Road ( B Street) Fiesta Ranch
Road Grading and Street Improvements from Roripaugh Valley Road to Nicolas Road: Improvements include grading full right-of-way with 2:1 slopes, paving, curb and gutter, median curb,
sidewalk, street lights, signing and striping, landscaping, irrigation, storm drain, sewer and water pipelines, and other appurtenant improvements necessary to complete Fiesta Ranch
Road between Roripaugh Valley Road and Nicolas Road. 14. Fire Station and Fire Apparatus Fire Station Construction and Fire Truck Purchase: Improvements include the acquisition of land
for and construction of a fire station to be located at the Southeast corner of Butterfield Stage Road and the South Loop Road, and to consist of a building of approximately 9,100 square
feet. Also, the equipping of the fire station, including furniture and fixtures, and the acquisition of a fire truck and other fire fighting apparatus. 15. Neighborhood Park Neighborhood
Park at the SW corner of the intersection of Murrieta Hot Springs Road and Roripaugh Valley Road (A Street): Construct 5.1-acre Neighborhood Park including grading, parking, restroom
building, lighting, landscaping, irrigation, open grass area, basketball court, children's play area, equipment with a useful life of five (5) years or more and other appurtenant improvements
necessary to complete the Neighborhood Park. 16. SR-79 Improvements Improvements include right-of-way acquisition, grading to accommodate road widening, paving, curb and gutter, median
curb, sidewalk, street lights, traffic signal(s), signing and striping, landscaping, irrigation, storm drain, and other appurtenant improvements necessary to complete improvements to
SR-79. i hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula. In
witness whereof, I have hereunto set my hand and affixed the seal of the City of Temecula this X^ day of_ /YWtU_20ji. A_4 SUSA^
PRIOR LIEN The District may fund amounts necessary to eliminate all or a portion of the lien imposed by the County of Riverside Assessment District No. 161 on the real property within
the District. OTHER The District may also finance any of the following: 1. Bond related expenses, including underwriter's discount, reserve fund, capitalized interest, bond and disclosure
counsel and all other incidental expenses. 2. Administrative fees of the Authority, the City of Temecula and the bond trustee or fiscal agent related to the District and any bonded indebtedness
of the District. 3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City or any related entity, or any landowner or developer within the
District, as well as reimbursement of any costs advanced by the Authority or any related entity, or any landowner or developer within the District, for facilities, fees or other purposes
or costs of the District A-5
EXHIBIT B TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX i hereby certify, under the penalty
of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula, in witness whereof, I have hereunto set my hand
and affixed the seal of the City of Temecula this Ts« day of /VWe^ 20 Q\> ,
, « RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX I I TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) A Special Tax shall be levied and
collected on all Taxable Property located within the boundaries of CFD No. 03-02 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) ("CFD No.
03-02"). The amount of Special Tax to be levied in each Fiscal Year on a Parcel in CFD No. 03-02, commencing with Fiscal Year 2005-2006, shall be determined by the CFD Administrator
through the application of the procedures described below. All of the real property in CFD No. 03-02, unless exempted by law or the provisions herein, shall be taxed for the purposes,
to the extent and in the manner herein provided. A. DEFINITIONS In addition to the capitalized terms set forth in the preceding paragraph, capitalized terms used in this Section A shall
have the following meanings: "Acre" means 43,560 square feet of land. The Acres for a Parcel means the land area of the Parcel as shown on or determined from the applicable Assessor's
Parcel Map. Notwithstanding the foregoing, the Acres attributable to each Parcel of Residential Property that is (i) located in a Final Map and (ii) an individual single-family home
lot or Condominium shall be computed by the CFD Administrator by dividing the sum of the land area for all such Parcels of Residential Property in the Final Map by the number of such
Parcels. The Acres for any leasehold or possessory interest shall be the Acres for the Parcel which corresponds to such leasehold or possessory interest. "Acreage Special Tax" means
the special tax set forth in Section C.2 below. "Act1' means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government
Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 03-02, including but not limited
to the following: (i) the costs of computing the Special Taxes and of preparing the annual Special Tax collection schedules (whether by the CFD Administrator or designee thereof, or
both); (ii) the costs of collecting the Special Taxes (whether by the Authority, County, City, or otherwise); (iii) the costs of remitting the Special Taxes to the fiscal agent or trustee
for any Bonds; (iv) the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes; (v) the costs of the fiscal agent or trustee (including
its legal counsel) in the discharge of the duties required of it under any Indenture; (vi) the costs of the Authority, City, or designee of complying with arbitrage rebate and disclosure
requirements of applicable federal and State of California securities laws, the Act, and the California Government Code, including property owner or Bond owner inquiries regarding the
Special CFD No. 03-02 Page 1 of 12 August 17,2004
Taxes; (vii) the costs associated with the release of funds from any escrow account; (viii) the costs of the Authority, City, or designee related to any appeal of a Special Tax; and
(ix) an allocable share of the salaries of the City staff and City overhead expense directly relating to the foregoing. Administrative Expenses shall also include amounts advanced by
the City or the Authority for any administrative purposes of CFD No. 03-02. "Assessor" means the County Assessor of the County of Riverside. "Assessor's Parcel Map" means an official
map of the Assessor designating parcels of land or Condominium units by number. "Authority" means the Temecula Public Financing Authority. "Board of Directors" means Board of Directors
of the Authority, acting as the legislative body of CFD No. 03-02. "Bonds" means any bonds or other indebtedness (as defined in the Act), whether in one or more series, the repayment
of which is secured by the levy of Special Taxes on Parcels within CFD No. 03-02. "CFD Administrator" means the Finance Director of the City, or designee thereof, responsible for determining
the Special Tax Requirement and collection of Special Taxes. a in witness whereof, "City" means the City of Temecula, California. , -T^y ttrtt «^ Kf' "Condominium" means a residential
dwelling unit meeting tfye jfattltory djgfin condominium contained in the California Civil Code, Section 1351, and for which a condominium plan has been recorded pursuant to California
Civil Code, Section 1352. "County" means the County of Riverside, California. "Developed Property" means all Parcels of Taxable Property, for which a Final Map was recorded as of the
January 1 and a building permit for new construction was issued as of the April 1 preceding the Fiscal Year in which the Special Tax is being levied, exclusive of Property Owner's Association
Property and Public
Property. "Dwelling Unit Special Tax" means the special tax set forth in Section C.I below. "Exempt Property" means any Parcel located within the boundaries of CFD No. 03-02 which is
exempt from the Special Tax pursuant to law or Section E below. "Final Map" means a subdivision of property by recordation of a (i) final map or parcel map approved by the City pursuant
to the Subdivision Map Act (California Government Code CFD No. 03-02 Page 2 of 12 August 17, 2004
Section 66410 et seq.), (ii) lot line adjustment approved by the City, or (iii) condominium plan pursuant to California Civil Code 1352. "Fiscal Year" means the period starting on each
July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued,
as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use " means the land use set forth in the Land Use Plan. "Land
Use Plan" means the approved land use plan for the Specific Plan. "Lot" means (i) any lot within a Final Map that is located at least partially within the boundaries of CFD No. 03-02
or (ii) any land within the boundaries of CFD No. 03-02 that is conveyed, dedicated, or otherwise acquired by or irrevocably offered to the federal government, the State of California,
the County, the City, or any local government or other governmental agency. "Maximum Special Tax" means the maximum special tax, determined in accordance with Section C, that can be
levied in any Fiscal Year on any Parcel. "Non-Residential Property" means all Parcels of Taxable Property which are not classified as Residential Property, Property Owner's Association
Property, or Public Property. "Parcel" means a parcel (i) which is located at least partially within the boundaries of CFD No. 03-02 and (ii) to which an Assessor's parcel number is
assigned as shown on an Assessor's Parcel Map. "Planning Area" means those planning areas designated by number on the Land Use Plan. "Property Owner's Association Property" means (i)
any Parcel for which the owner of record, as determined from the County Assessor's secured tax roll for the Fiscal Year in which the Special Tax is being levied, is a property owner's
association, including any master or sub-association, (ii) any Lot located in a Final Map that was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is
being levied and which, as determined from such Final Map, is or will be open space, a private park or recreation facility, or a private street owned by a property owner's association,
(iii) any Lot within a Final Map that is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being
levied and any Parcel for which the Land Use is private mini park or private recreation center, or (iv) any Lot or Parcel which, as of the April 1 preceding the Fiscal Year for which
the Special Tax is being levied, has been conveyed, irrevocably dedicated, or irrevocably offered to a property owner's association, including any master or sub-association, provided
such conveyance, dedication, CFD No. 03-02 Page 3 of 12 August 17,2004
i hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula In witness
whereof, I have hereunto set my hand and affixed the seal of the City of Temecula this « 2 C -, SUSAI or offer is submitted to the CFD Administrator prior to the Mayyl for which the
Special Tax is being levied. "Proportionately" means that with respect to a given classification of property the ratio of the Special Tax to the Dwelling Unit Special Tax or Acreage
Special Tax, as applicable, is the same for all Parcels assigned to such classification. For example, levying the Special Tax Proportionately on Parcels of Developed Residential Property
means that for all such Parcels the ratio of the Special Tax to the Dwelling Unit Special Tax is the same. "Public Property" means (i) any Parcel for which the owner of record, as determined
from the County Assessor's secured tax roll for the Fiscal Year in which the Special Tax is being being levied, is the federal government, the State of California, the County, the City,
or any local government or other governmental agency, (ii) any property within a Final Map that is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1
preceding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Map, is or will be a public street, (iii) any Lot within a Final Map that
is located within the boundaries of CFD No. 03-02 and was recorded as of the January 1 preceding the Fiscal Year in which the Special Tax is being levied and any Parcel for which the
Land Use is neighborhood park, sports park, educational, public institutional, habitat, flood control, or landscape slope, unless such Lot or Parcel has an underlying residential land
use and the applicable public entity has provided notice to the City that it will not acquire or otherwise take ownership of the Parcel, or (iv) any Lot or Parcel which, as of the April
1 preceding the Fiscal Year for which the Special Tax is being levied, has been conveyed, irrevocably dedicated to, or irrevocably offered to the federal government, the State of California,
the County, the City, or any local government or other governmental agency, provided such conveyance, dedication, or offer is submitted to the CFD Administrator prior to the May 1 preceding
the Fiscal Year for which the Special Tax is being levied. "Residential Floor Area" means all of the square footage within the perimeter of a residential structure, not including any
carport, walkway, garage, overhang, patio, enclosed patio, or similar area as determined from the applicable building permit(s) issued for such structure as of the April 1 preceding
the Fiscal Year in which the Special Tax is being levied. Such determination shall be final following the final inspection or certification of occupancy for the dwelling unit(s). "Residential
Property" means all Parcels of Taxable Property, exclusive of Property Owner's Association Property and Public Property, designated with a residential Land Use. "Special Tax" means the
Special Tax levied in each Fiscal Year on each Parcel. "Special Tax Requirement" means (a) that amount with respect to CFD No. 03-02 required in any Fiscal Year to pay (i) for annual
debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the Bonds, including, but not limited to, the costs of remarketing,
credit enhancement, and liquidity facility fees (including such fees for instruments that serve as the basis of a reserve fund in CFD No. 03-02 Page 4 of 12 August 17,2004
lieu of cash related to any such Bonds) and rebate payments; (iii) the Administrative Expenses; (iv) any reasonably anticipated delinquent Special Taxes based on the delinquency rate
for Special Taxes levied in the previous Fiscal Year or otherwise reasonably expected; (v) any amounts required to establish or replenish any reserve funds established for the Bonds,
and less (b) available funds as directed under the Indenture. "Specific Plan" means the Roripaugh Ranch Specific Plan (City of Temecula Resolution 02-112, Ordinance 02-13), as amended.
"Taxable Property" means all Parcels which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner's Association Property" means all Parcels of
Property Owner's Association Property which are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Public Property" means all Parcels of Public Property which
are not exempt from the Special Tax pursuant to law or Section E below. "Undeveloped Property" means all Parcels of Taxable Property which are not classified as Developed Property, exclusive
of Property Owner's Association Property and Public Property. B. ASSIGNMENT TO LAND USE CATEGORY Each Fiscal Year, commencing with Fiscal Year 2005-2006, all Parcels shall be classified
as either Taxable Property or Exempt Property. Taxable Property shall be further classified as Residential Property, Non-Residential Property, Taxable Property Owner's Association Property,
or Taxable Public Property. Residential Property and Non-Residential Property shall be further classified as Developed Property and Undeveloped Property (hereinafter referred to as "Developed
Residential Property," "Developed Non-Residential Property," "Undeveloped Residential Property," or "Undeveloped Non-Residential Property"). For purposes of determining the applicable
Dwelling Unit Special Tax, Developed Residential Property shall be assigned to classifications one through fifteen in Table 1 below based on Residential Floor Area. If a Parcel consists
of two or more Lots located in a Final Map that was recorded as of the January 1 preceding the Fiscal Year for which the Special Tax is being levied, each such Lot shall be treated as
a Parcel and classified independently of the other; however, the aggregate Special Tax for the Lots will be levied on the Parcel. C. MAXIMUM SPECIAL TAX RATE The Maximum Special Tax
for each Parcel of Developed Residential Property shall be the greater of the applicable Dwelling Unit Special Tax or Acreage Special Tax. If there are two or more residential dwelling
units located on a Parcel, the applicable Dwelling Unit Special CFD No. 03-02 Page 5 of 12 August 17,2004
Tax for such Parcel shall be the sum of the Dwelling Unit Special Tax for each such residential dwelling unit. The Maximum Special Tax for each Parcel of Undeveloped Residential Property,
Non-Residential Property, Taxable Property Owner's Association Property, and Taxable Public Property shall be the applicable Acreage Special Tax. 1. Dwelling Unit Special Tax The Dwelling
Unit Special Tax rates are shown in Table 1 below. 1 Residential Residential Residential Residential Residential Residential Residential 8 Residential Residential 10 Residential 11 Residential
12 Residential 13 Residential 14 Residential IS Residential Per residential dwelling unit >5,000 >4,400 and <=5,000 >4,200 and <=4,400 >4,000 and <=4,200 >3,800 and <=4,000 >3,600and<=3,800
>3,400 and <=3,600 >3,200 and <=3,400 >3,000 and <=3,200 >2,800 and <=3,000 >2,600 and <=2,800 >2,400 and <=2,600 >2,200 and <=2,400 >2,000 and <=2,200 <=2,000 $4,230' $3,995' $3,520'
$3,356' $3,192' $3,028' $2,865' $2,701' $2,537' $2,374' $2,210' $2,046' $1,883' 1,883' $1,719' $1,586' i nereby certify, under the penalty of perjury that the above and foregoing is
a true and correct copy of an original on deposit within the records of the City of Temecula. In witness whereof, I have hereunto set my hand and affixed the seal of the (jity ofTemecula
this To day of__J¥\« SUSAfWJQNES, C> CFD No. 03-02 Page 6 of 12 August 17,2004
2. Acreage Special Tax The Acreage Special Tax rates are shown in Table 2 below. Developed and Undeveloped Residential Property Low Density (L) Low Medium Density (LM) Medium Density
Standard (Ml) Medium Density Clustered (M2) Developed and Undeveloped Non-Residential Property (NC) Taxable Property Owner's Association Property Taxable Public Property $5,620 Per Acre
$17,665 Per Acre $17,665 Per Acre $17,665 Per Acre $8,247 Per Acre $17,665 Per Acre $17,665 Per Acre Notwithstanding the above, if at any time subsequent to the issuance of Bonds the
Land Use Plan is amended or the zoning or configuration of the Planning Areas is otherwise amended, the CFD Administrator shall determine if the Acreage Special Taxes that may thereafter
be levied are less than the sum of estimated Administrative Expenses and one hundred ten percent (110%) of the maximum annual debt service for outstanding Bonds. If the amended Land
Use Plan, zoning, and/or Planning Area configuration has resulted in such a reduction, then the Acreage Special Tax for each Parcel to which such amendments apply shall be computed using
the Acreage Special Tax rate(s) previously applicable to such Parcel. If the previous Land Use for any portion of a Parcel to which the amended Land Use Plan, zoning, and/or Planning
Area configuration applies was not low density (L), low medium density (LM), medium density standard (Ml), medium density clustered (M2), or neighborhood commercial (NC) then the applicable
Acreage Special Tax rate shall be $17,665. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the CFD Administrator
shall levy the Special Tax on all Taxable Property to fund the Special Tax Requirement as follows: First; The Special Tax shall be levied Proportionately on each Parcel of Developed
Property, up to 100% of the applicable Dwelling Unit Special Tax in the case of Developed Residential Property and up to 100% of the applicable Acreage Special Tax in the case of Developed
Non-Residential Property; CFD No. 03-02 Page 7 of 12 August 17,2004
i hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of Ternecuia, In witness
whereof, I have hereunto set my hand and affixed the seaj of the City of Temecula this Zfl day of N\aSCb^ 20 Ob . Second; If additional Special Taxes are needed after the first stqjLth^
Special f. JONES, C levied Proportionately on each Parcel of Undeveloped Property, up to 100% of theSpplicable Acreage Special Tax; Third; If additional Special Taxes are needed after
the second step, the Special Tax for Parcels of Developed Property for which the Maximum Special Tax is derived from the applicable Acreage Special Tax shall be increased equally, measured
on a percentage basis, from the amounts levied under the preceding Step 1 up to 100% of the applicable Acreage Special Tax (i.e., the percentage increase shall be equal for all applicable
Parcels, until the Maximum Special Tax is reached); and Fourth; If additional Special Taxes are needed after the third step, the Special Tax shall be levied Proportionately on each Parcel
of Taxable Property Owner's Association Property and Taxable Public Property up to the applicable Maximum Special Tax. Notwithstanding the above, under no circumstances will the Special
Taxes levied against any Parcel used as a private residence be increased as a consequence of delinquency or default by the owner of any other Parcel or Parcels within CFD No. 03-02 by
more than ten percent (10%) per Fiscal Year. In addition, under no circumstances will the Acreage Special Tax be levied against Parcels of Developed Residential Property if the Special
Taxes which may be levied pursuant to the first and second steps above are equal to or greater than sum of estimated Administrative Expenses and one hundred ten'percent (110%) of the
then maximum annual debt service for outstanding Bonds. E. EXEMPTIONS The Board of Directors shall not levy a Special Tax on up to 511.11 Acres of Property Owner's Association Property
and Public Property. If the total number of Acres of Property Owner's Association Property and Public Property exceeds 511.11, the chronological order in which such property is classified
will determine which Parcels are classified as Exempt Property and which are classified as Taxable Property. If a Lot or Parcel is no longer classified as Property Owner's Association
Property or Public Property, its status as Exempt Property will be revoked. The following property shall be classified as Property Owner's Association Property or Public Property, as
applicable, at the time CFD No. 03-02 is established and shall count toward the limitation of 511.11 Acres of Property Owner's Association Property and Public Property set forth in the
preceding paragraph: • Property Owner's Association Property and Public Property: Lots A and B (portion of Murrieta Hot Springs Road), Lot 2 (private mini park), Lot 5 (private recreation
center), and Lot 8 (open space) of Tract 293 53-1; Lots Hand 5 (open space), Lots A through G and and M through O (streets), Lots I, J, and K (flood control), Lot L (equestrian trail),
Lots 2 and 9 (parks), Lots 10 and 11 (school sites), and Lot 12 (fire station) of Tract 29353-2; and the property described in and conveyed to the City CFD No. 03-02 Page 8 of 12 August
17,2004
pursuant to a grant deed dated May 21, 2003 and recorded with the County as Document Number 2003-371374. Subject to Section 53317.5 of the Act, if a Lot or Parcel classified as Developed
Residential Property is acquired by a public entity by any means, including by negotiated transaction, gift, devise, or foreclosure, such Lot or Parcel will notwithstanding anything
else herein be subject to the Special Tax in accordance with the terms for Developed Residential Property. In addition, if a Parcel of Public Property is leased to a non-governmental
entity, then the leasehold or possessory interest, in accordance with Section 53340.1 of the Act, shall be subject to the applicable Acreage Special Tax. F. MANNER OF COLLECTION The
Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and
lien priority in the case of delinquency; provided, however, that the Special Tax may be billed directly and/or may be collected at a different time or in a different manner if necessary
or convenient to meet the financial obligations of CFD No. 03-02, or as otherwise determined by the CFD Administrator. The foreclosure remedies provided for in the Indenture shall apply
upon the nonpayment of the Special Tax. G. REVIEW AND APPEALS Any taxpayer may file a written appeal of the Special Tax levied 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 CFD Administrator shall grant a credit
to eliminate or reduce future Special Taxes on the appellant's property. No refunds of previously paid Special Taxes shall be made. H. PREPAYMENT OF SPECIAL TAX 1. Full Prepayment-Developed
Residential Property, Non-Residential Property, and Taxable Property Owner's Association Property The Maximum Special Tax for any Parcel of Developed Residential Property, Non-Residential
Property, or Taxable Property Owner's Association Property may be prepaid and permanently satisfied as described herein, provided that a prepayment may be made only if at the time of
the prepayment there are no delinquent Special Taxes with respect to such Parcel and all other Parcels which are under the same ownership and located within CFD No. 03-02. An owner of
a Parcel intending to CFD No. 03-02 Page 9 of 12 August 17,2004
• nereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City of '"emecula. In witness
whereof, I have hereunto set :ny hand and affixed the seal of the City of Temecula ifiis If) day of yV\«T£k. 20 Ofe . prepay the Maximum Special Tax shall provide the CFD notice of intent
to prepay, and within 10 business days orreeeipt of subh-wjawen notice, the CFD Administrator shall notify such owner of the non-refundable deposit determined to cover the cost to be
incurred by the CFD No. 03-02 in calculating the prepayment amount. Within 10 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of
the prepayment amount. Prepayment must be made not less than 60 days prior to any redemption date, unless otherwise authorized by the CFD Administrator, for any Bonds to be redeemed
with the prepayment proceeds. The "Full Prepayment Amount" means an amount equal to the sum of (1) Bond Redemption Amount, (2) Redemption Premium, (3) Defeasance Amount, and (4) Fees,
less the Reserve Fund Credit, where the terms "Bond Redemption Amount," "Redemption Premium," "Defeasance Amount," "Fees," and "Reserve Fund Credit" have the following meanings: "Bond
Redemption Amount" means the principal amount of Bonds to be redeemed and equals the greater of (a) the quotient derived by dividing (i) the applicable Dwelling Unit Special Tax, in
the case of Residential Property, or Acreage Special Tax, in the case of Non-Residential Property or Taxable Property Owner's Association Property by (ii) the sum of the aggregate Dwelling
Unit Special Taxes (for Residential Property) and Acreage Special Taxes (for Non-Residential Property) for CFD No. 03-02 (and excluding from (ii) any Special Taxes which have been prepaid)
or (b) the quotient derived by dividing (iii) the applicable Acreage Special Tax by (iv) the sum of the aggregate Acreage Special Taxes (for Residential Property and Non-Residential
Property) for for CFD No. 03-02 (and excluding from (iv) any Special Taxes which have been prepaid) in each case multiplied by the principal amount of outstanding Bonds rounded up to
the nearest $5,000. The aggregate special taxes under (a) and (b) above means the aggregate special taxes upon completion of the development of CFD No. 03-02. Prior to the completion
of the development of CFD No. 03-02, the aggregate special taxes under (a) and (b) above shall be as projected by the CFD Administrator. "Redemption Premium" means the Bond Redemption
Amount multiplied by the applicable redemption premium, if any, for the Bonds to be redeemed. "Defeasance Amount" means the amount needed to pay interest on the Bond Redemption Amount
until the earliest redemption date for the outstanding Bonds. Credit shall be given for any portion of the Special Tax heretofore paid by the Parcel for which the Full Prepayment Amount
is being calculated and which will be, but has not yet been, utilized to pay interest and principal on the Bonds. CFD No. 03-02 Page 10 of 12 August 17,2004
"Fees" equal the fees and expenses of CFD No. 03-02 related to the Full Prepayment Amount, including, but not limited to, the costs of computing the Full Prepayment Amount, the costs
of redeeming Bonds, and the costs of recording any notices to evidence that the Maximum Special Tax has been prepaid. "Reserve Fund Credit" shall equal the lesser of (i) the reduction
in the applicable "Reserve Requirement," as such term is defined in the Indenture, if any, following the redemption of Bonds from proceeds of the Prepayment Amount or (ii) the amount
derived by subtracting the new Reserve Requirement in effect after the redemption of Bonds from proceeds of the Full Prepayment Amount from the balance in the "Reserve Fund," as such
term is defined in the Indenture, on the prepayment date, but in no event shall such amount be less than zero. The CFD Administrator shall remove any portion of the Special Tax which
has been enrolled but not paid. With respect to any Parcel that has prepaid the Maximum Special Tax, the Board of Directors shall cause a suitable notice to be recorded in compliance
with the Act, to indicate the prepayment of the Maximum Special Tax and the release of the Special Tax lien on such Parcel, and the obligation of such Parcel to pay the Special Tax shall
cease. 2. Partial Prepayment -Developed Property, Non-Residential Property, and Taxable Property Owner's Association Property The Maximum Special Tax for any Parcel of Developed Residential
Property, Non-Residential Property, or Taxable Property Owner's Association Property may be prepaid in part as described herein, provided that (i) the Bond Redemption Amount must be
an integral multiple of $5,000 and (ii) at the time of the prepayment there are no delinquent Special Taxes with respect to such Parcel and all other Parcels which are under the same
ownership and located within CFD No. 03-02. The "Partial Prepayment Amount" shall be computed using the methodology in Section H.I and substituting the portion of the Maximum Special
Tax to be prepaid by the Parcel for its Dwelling Unit Special Tax and Acreage Special Tax when determining the Bond Redemption Amount. The owner intending to prepay a portion of the
Maximum Special Tax shall notify the CFD Administrator in writing of (i) such owner's intent to partially prepay the Maximum Special Tax, (ii) the percentage by which the Maximum Special
Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable, and within 10 business days of receipt of such written notice, the CFD Administrator
shall notify such owner of the non-refundable deposit determined to cover the cost to be incurred by CFD No. 03-02 in calculating the amount of the partial prepayment. Within 10 business
days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Partial Prepayment CFD No. 03-02 Page 11 of 12 August 17,2004
i f Amount. Prepayment must be made not less than 60 days prior to any redemption date, unless authorized by the CFD Administrator, for any Bonds to be redeemed with the prepayment proceeds.
With respect to any Parcel that has prepaid a portion of the Maximum Special Tax, the CFD Administrator shall indicate in the records of CFD No. 03-02 that there has been a partial prepayment
of the Maximum Special Tax, the amount of the Maximum Special Tax which has been prepaid, and the amount of the Maximum Special Tax which continue to be levied on such Parcel. The Bond
Redemption Amount, Redemption Premium, Defeasance Amount, and Reserve Fund Credit shall be used to pay interest on and redeem Bonds in accordance with the Indenture. Notwithstanding
the foregoing, no prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied in CFD No. 03-02 after the proposed prepayment is at least the sum of (i)
the estimated Administrative Expenses and (ii) one hundred ten percent (110%) of the annual debt service on the Bonds, taking into account the amount of Bonds to remain outstanding after
such prepayment. I. TERM The Maximum Special Tax shall be levied for a period not to exceed 50 Fiscal Years, commencing with Fiscal Year 2005-2006. K:\Clients2\Temecula\Roripaugh Ranch\RMA\CFD
2003-2 RMA 10 FINAUdoc ! hereby certify, under the penalty of perjury that the above and foregoing is a true and correct copy of an original on deposit within the records of the City
of Temecula. In witness whereof, I have hereunto set my hand and affixed the seal of thaCity of Temecula this "£g day of J^Wsta^. SUSAN-WvJpNES,,eivlcrcity Clerk CFD No. 03-02 Page 12
of 12 August 17,2004
EXHIBIT C TEMECULA PUBLIC FINANCING AUTHORITY COMMUNITY FACILITIES DISTRICT NO. 03-02 (RORIPAUGH RANCH) NOTICE OF PUBLIC HEARING Notice is hereby given that on August 24, 2004, the Board
of Directors of the Temecula Public Financing Authority adopted a Resolution entitled "A Resolution of the Board of Directors of the Temecula Public Financing Authority Declaring Its
Intention To Establish A Community Facilities District And To Authorize The Levy Of Special Taxes Therein -Roripaugh Ranch 03-02." Pursuant to the Mello-Roos Community Facilities Act
of 1982, the Board of Directors of the Authority hereby gives notice as follows: A. The text of said Resolution of Intention is as follows: WHEREAS, under the Mello-Roos Community Facilities
Act of 1982, constituting Section 53311 et seq. of the California Government Code (the "Law"), this Board of Directors may commence proceedings for the establishment of a community facilities
district; and WHEREAS, there has been submitted to this Board of Directors Petitions (Including Waivers) of the owners of real property in the Roripaugh Ranch development within the
City of Temecula (collectively, the "Petitions"), requesting the formation by this Board of Directors of a community facilities district under the Law to be known as the Temecula Public
Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the "District"); and WHEREAS, under the Law, this Board of Directors is the legislative body for the proposed
District and is empowered with the authority to establish the District and levy special taxes within the District;
and WHEREAS, this Board of Directors now desires to proceed with the actions necessary to consider the establishment of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
of the Temecula Public Financing Authority as follows: Section 1. This Board of Directors proposes to begin the proceedings necessary to establish the District pursuant to the Law. Receipt
of the Petitions to form the District is hereby acknowledged. Section 2. The name proposed for the District is Temecula Public Financing Authority Community Facilities District No. 03-02
(Roripaugh Ranch). Section 3. The proposed boundaries of the District are as shown on the map of the District on file with the Secretary, which boundaries are hereby preliminarily approved.
The Secretary is hereby directed to record, or cause to be recorded, the map C-1
r*, w*tei s« a* I»m», *a<na " co r<.e*d* .'c»o *p," o!l? an, SUSANVVlONES, CMC, City Clerk of the boundaries of the District in the office of the County practicable after the adoption
of this Resolution. Section 4. The types of public facilities (the "Facilities") for funding by the District and pursuant to the Law, and the fixed special assessment lien to be eliminated
in whole or in part by payments from the District and pursuant to the Law, shall consist of those items listed on Exhibit A hereto under the headings "Facilities" and "Prior Lien," respectively,
which Exhibit is by this reference incorporated herein. The Executive Director is hereby authorized and directed to enter into a joint community facilities agreement with the City of
Temecula, the County of Riverside, the Riverside County Flood Control and Water Conservation District, the Temecula Community Services District, the Eastern Municipal Water District,
the California Department of Transportation, and with any other public entity that will own and/or operate any of the Facilities, such agreements to be in a form provided by Bond Counsel.
Section 5. Except to the extent that funds are otherwise available to the District to pay for the Facilities and the elimination of the Prior Lien and/or pay the principal and interest
as it becomes due on bonds of the District issued to pay for the Facilities and the elimination of the Prior Lien, a special tax sufficient to pay the costs thereof, secured by recordation
of a continuing lien against all non-exempt real property in the District, will be levied within the District and collected in the same manner as ordinary ad valorem property taxes or
in such other manner as this Board of Directors or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment
of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the proposed District to estimate the maximum amount such
owner will have to pay, and which specifies the tax year after which no further special tax will be levied on land used for private residential purposes and which otherwise complies
with applicable provisions of the Law is described in Exhibit B attached hereto which Exhibit is by this reference incorporated herein. This Board of Directors finds that the provisions
of Section 53313.6, 53313.7 and 53313.9 of the California Government Code (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district)
are inapplicable to the District. Section 6. It is the intention of this Board of Directors, acting as the legislative body for the District, to cause one or more series of bonds of
the Authority to be issued for the District pursuant to the Law to finance a portion of the costs of the Facilities, and to finance the elimination of the Prior Lien. If so issued, the
bonds shall be in the aggregate principal amount of not to exceed $55,000,000, shall bear interest interest payable semi-annually or in such other manner as this Board of Directors shall
determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and shall mature not to exceed 40 years from
the date of the issuance thereof. Section 7. This Board of Directors reserves to itself the right and authority to allow any interested owner of property in the District, subject to
the provisions of Section 53344.1 of the California Government Code and such requirements as it may otherwise C-2
impose, and any applicable prepayment penalties as prescribed in the indenture or fiscal agent agreement for any bonds of the Authority for the District, to tender to the Treasurer of
the Authority in full payment or part payment of any installment of special taxes for the District or the interest or penalties thereon which may be due or delinquent, but for which
a bill has been received, any bond or other obligation secured thereby, in the manner described in Section 53344.1 of the California Government Code. Section 8. The levy of said proposed
special tax in the District shall be subject to the approval of the qualified electors at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot
among the landowners in the District, with each owner having one vote for each acre or portion of an acre of land such owner owns in the District. Section 9. Except as may otherwise
be provided by law or the rate and method of apportionment of the special tax for the District, all lands owned by any public entity, including the United States, the State of California
and/or the City of Temecula, or any departments or political subdivisions of any thereof, shall be omitted from the levy of the special tax to be made to cover the costs and expenses
of the facilities, the elimination of the Prior Lien, the issuance of bonds by the Authority for the District and any expenses of the District. Section 10. The Director of Public Works
of the City of Temecula is hereby directed to study the proposed Facilities for the District and the Prior Lien and to make, or cause to be made, and file with the Secretary a report
in writing, presenting the following: (a) A brief description of the Facilities eligible to be funded by the District and the Prior Lien. (b) An estimate of the fair and reasonable cost
of providing the Facilities, and of eliminating the Prior Lien, including the incidental expenses in connection therewith, including the costs of the proposed bond financing, any Authority
or City of Temecula administrative costs and all other related costs. Said report shall be made a part of the record of the public hearing provided for below. Section 11. Tuesday, September
28, 2004, at 7:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting place of this Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business
Park Drive, Temecula, California, be, and the same are hereby appointed and fixed as the time and place when and where this Board of Directors, as legislative body for the District,
will conduct a public hearing on the establishment of the District and consider and finally determine whether the public interest, convenience and necessity require the formation of
the District and the levy of said special tax with the District. Section 12. The Secretary is hereby directed to cause notice of said public hearing to be given by publication one time
in a newspaper published in the area of the District. The publication of said notice shall be completed at least seven days before the date herein set for said hearing. Said notice shall
be substantially in the form of Exhibit C hereto. C-3
lareby certify, under the penalty of perjury that the -bove and foregoing is a true and correct copy of an original on deposit within the records of the City of Temecula. In witness
whereof, I have hereunto set my hand and affixed the seal of the City of Temecula " day of A/V "<sTC*v 20 Section 13. The firms of Fieldman, Rolapp & Associates, Inc., Stone & Youngberg
LLC, Stephen G. White, MAI, Quint & Thimmig LLP and McFarlin & Anderson are hereby designated as financial advisor, special tax consultant, underwriter, appraiser, bond counsel and disclosure
counsel, respectively, to the Authority for the District. The Executive Director is hereby authorized to execute agreements with said firms for their services related to the District
provided that all fees and expenses of such firms are payable solely from deposits by the landowners in the District or the proceeds of the bonds, if any, issued by the Authority for
the District. Section 14. On November 26, 2002, the City Council of the City of Temecula approved the Roripaugh Ranch Project and specifically adopted Resolution No. 02-111 making certain
findings with respect to the approval and certification of an Environmental Impact Report for the Project ("Roripaugh Ranch EIR"). All of the public improvements which are to be funded
by the District were described, evaluated and studied as part of the Roripaugh Ranch EIR and Council Resolution No. 02-111. No significant changes have occurred with respect to the project
or the environment which require further study or which render invalid the conclusions and findings of the Roripaugh Ranch EIR. No facts exist upon which any findings pursuant to Sections
15162, 15263 or 15265 of the State CEQA Guidelines could be based to require the preparation of a subsequent EIR, supplemental EIR or addendum to an EIR. Therefore, the Board of Directors
hereby determines that the contemplated formation of a community facilities district and the issuance of community facilities district special tax bonds involving the Authority and the
District, in accordance with Section 15061(b) of the California Environmental Quality Act (CEQA) Guidelines is not a "Project" as defined in Section 15378 off the CEQA Guidelines, and
is therefore exempt from the requirements of CEQA. Pursuant to CEQA Guidelines Sections 15061(d) and 15062, and the Secretary is hereby directed to cause a Notice of Exemption to be
prepared, executed and filed in regard to the foregoing determination. Section 15. The Board of Directors may in the future, by resolution, approve an agreement pursuant to Section 53314.9
of the California Government Code, to accept an advance or advances of funds or work-in-kind from one or more landowners in the District or related entities, which advances may be repaid
and work-in-kind may be reimbursed to the person or entity which advanced the funds or work-in-kind subject to compliance with the applicable provisions of Section 53314.9 of the California
Government Code. Section 16. This Resolution shall take effect upon its adoption. B. The exhibits to the Resolution which describe the facilities to be funded, the prior lien to be eliminated,
and the rate and method of apportionment of the special taxes for, the district are on file in the office of the Secretary of the Authority. C. The time and place established under said
Resolution for the public hearing required under the Law are Tuesday, September 28, 2004, at the hour of 7:00 p.m. or as soon thereafter as the matter may be heard, in the regular meeting
place of the Board of Directors, City Council Chambers, Temecula City Hall, 43200 Business Park Drive, Temecula, California. D. At said hearing, the testimony of all interested persons
or taxpayers for or against the establishment of the district, the extent of the district or the funding by the District of the specified types of facilities or the elimination of the
prior lien will be heard. Any person interested may file a protest in writing with the Secretary. If fifty percent or more of the C-4
registered voters, or six registered voters, whichever is more, residing in the territory proposed to be included in the district, or the owners of one-half or more of the area of land
in the territory proposed to be included in the district and not exempt from the special tax file written protests against the establishment of the District and the protests are not
withdrawn to reduce the value of the protests to less than a majority, the Board of Directors shall take no further action to establish the District or levy the special taxes in the
District for a period of one year from the date of the decision of the Board of Directors, and if the majority protests of the registered voters or the landowners are only against the
funding of a type or types of facilities, or the elimination of the prior lien on property in the district, or against levying a specified special tax in the District, those types of
facilities, the elimination of the prior lien or the specified special tax will be eliminated from the proceedings to form the District. E. The proposed voting procedure shall be by
special mail or hand-delivered ballot to the property owners within the territory proposed to be included in the district. Dated: September , 2004 /s/Susan W. Jones. CMC Secretary, Temecula
Public Financing Authority C-5