COUNTY OF RIVERSIDE

ORDINANCE NO. 661.2

ORDINANCE OF THE BOARD OF SUPERVISORS

OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,

AMENDING ORDINANCE NO. 661.1 AND AUTHORIZING THE LEVY

OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 88-4

PURSUANT TO THE AMENDED AND RESTATED RATE AND METHOD OF

APPORTIONMENT OF SPECIAL TAX

WHEREAS, the Board of Supervisors (the "Board") of the County of Riverside, California (the "County") adopted Resolution No. 88-334 as amended by Resolution No. 88-383 which established the County of Riverside Community Facilities District No. 88-4 (Winchester Ranch) ("CFD No. 88-4") pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982" (the "Act") being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; determined the validity of prior proceedings relative to the formation of CFD No. 88-4 and the incurring of bonded indebtedness; authorized the levy of a special tax within CFD No. 88-4 and called an election on August 9, 1988, on the propositions of incurring bonded indebtedness, levying a special tax and establishing an appropriations limit within CFD No. 88-4; and

WHEREAS, on August 16, 1988, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, adopted Resolution No. 88-428 determining the result of said election; and

WHEREAS, the Board adopted Ordinance No. 661 on August 30, 1988, authorizing the levy of a special tax within CFD No. 88-4 pursuant to the Rate and Method of Apportionment of Special Tax as set forth in Exhibit A, attached thereto; and

WHEREAS, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, on June 27, 1989, adopted Resolution No. 89-330 declaring its intent to consider an amendment to and restatement of the Rate and Method of Apportionment of Special Tax within CFD No. 88-4 as set forth in the Amended and Restated Rate and Method of Apportionment of Special Tax attached to said resolution as Exhibit A and setting a public hearing thereon; and

WHEREAS, notice of said hearing was duly published and mailed as required by law as evidenced by Affidavit of Publication and Certificate of Mailing on file with the Clerk of the Board; and

WHEREAS, on August 1, 1989, the Board held a noticed public hearing as required by law relative to the proposed amendments to the Rate and Method of Apportionment of Special Tax within CFD No. 88-4; and

WHEREAS, at said hearing all persons desiring to speak were heard on all matters related to the proposed amendments to the Rate and Method of Apportionment Special Tax within CFD No. 88-4 or any other matters set forth in Resolution No. 89-330 and a full and fair hearing was held thereon; and

WHEREAS, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, subsequent to said hearing, adopted Resolution No. 89-388 which determined the validity of prior proceedings relative to amending the Rate and Method of Apportionment of Special Tax and called an election for August 15, 1989, on the proposition setting forth the amendments; and

WHEREAS, on August 15, 1989, an election was held within CFD No. 88-4 in which the qualified electors, being the landowners in CFD No. 88-4, approved by more than a two-thirds vote the proposition amending the Rate and Method of Apportionment of Special Tax;

WHEREAS, on August 22, 1989, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, adopted Resolution No. 89-428 determining the result of said election; and

WHEREAS, the Board adopted Ordinance No. 661.1 on October 3, 1989, authorizing the levy of a special tax within CFD No. 88-4 pursuant to the Amended and Restated Rate and Method of Apportionment of Special Tax as set forth in Exhibit A, attached thereto; and

WHEREAS, on December 18, 2001, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, adopted Resolution No. CFD 2001-018 declaring its intention to annex certain territory (the “Property”) to CFD No. 88-4 and setting a public hearing thereon; and

WHEREAS, notices were published as required by law relative to the intention of the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, to annex the Property to CFD No. 88-4 and to levy special taxes on the Property; and

WHEREAS, pursuant to Resolution No. CFD 2001-018, a public hearing was opened by the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, on January 29, 2002, and was continued to and closed on February 5, 2002 and the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, subsequent to said hearing, adopted Resolution No. CFD 2002- 01 which determined the validity of prior proceedings relative to the annexation of the Property and the levy of special taxes on the Property and called an election for February 19, 2002, on the proposition regarding the annexation and levy of special taxes; and

WHEREAS, on February 19, 2002, an election was held within the Property in which the qualified electors, being the owners of the Property, approved by more than a two-thirds vote the proposition authorizing annexation of the Property to CFD No. 88-4 and the levy of the special tax; and

WHEREAS, on February 26, 2002, the Board, acting ex-officio as the Legislative Body of CFD No. 88-4, adopted Resolution No. CFD 2002-02 determining the result of said election;

NOW, THEREFORE, the Board of Supervisors of the County of Riverside ORDAINS as follows:

Section 1. The above recitals are all true and correct and this Board so finds and determines.

Section 2. Section 2 and Exhibit A of Ordinance No. 661 are amended by causing said Exhibit A to be deleted therefrom in its entirety and in place and stead thereof to substitute the Exhibit A attached hereto, marked as Exhibit "A", and entitled "Amended and Restated Rate and Method of Apportionment of Special Tax for Community Facilities District No. 88-4 of the County of Riverside (Winchester Ranch)."

Section 3. Except as specifically amended by Section 2 above, all provisions of Ordinance No. 661 shall remain in full force and effect.

Section 4. All of the collections of the special tax shall be used as provided for in the Act and the proceedings relating to CFD No. 88-4, including Resolution No. CFD 2002-01 adopted on February 5, 2002. The special tax shall be levied only so long as needed for its purpose as described in said proceedings.

Section 5. The Chairman shall sign this ordinance and the Clerk of the Board shall attest to the Chairman’s signature and then cause the same to be published in the Press-Enterprise, a newspaper of general circulation published and circulated in the County of Riverside.

Section 6. This Ordinance shall take effect immediately upon its final passage in accordance with the provision of Section 25123(c) of the California Government Code, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the California Government Code

ADOPTED: 8‑30‑88 (Eff.: 8‑30‑88)

661.1 (Eff.: 11-02-89)

661.2 (Eff: 3-05-02)

EXHIBIT A

AMENDED AND RESTATED RATE AND

METHOD OF APPORTIONMENT

OF SPECIAL TAX FOR

COMMUNITY FACILITIES DISTRICT NO. 88-4

OF THE COUNTY OF RIVERSIDE

(WINCHESTER RANCH)

A Special Tax (the "Special Tax") shall be levied on and collected from each parcel in Community Facilities District No. 88-4 (herein "CFD No. 88-4") in each Fiscal Year, commencing July 1, 1989, in an amount determined by the Board of Supervisors of the County of Riverside as the legislative body of CFD No. 88-4 (herein the "Board") in accordance with the rate and method of apportionment described below. All of the property in CFD No. 88-4, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. Definitions.

"Approved Property" as applied to property described as Class III Residential, Class IV Residential, Class V Commercial/Town Center and Class VI Business Park on the Land Use Map attached as Exhibit 1 hereto means all parcels in CFD No. 88-4 for which a final parcel or tract map has been recorded as of March 1 of the preceding Fiscal Year.

"Developed Property" (i) as applied to property described as Class I Residential and Class II Residential on the Land Use Map attached as Exhibit 1 hereto means all parcels in CFD No. 88-4 for which a final tract map has been recorded as of March 1 of the preceding Fiscal Year, and (ii) as applied to property described as Class III Residential, Class IV Residential, Class V Commercial/Town Center and Class VI Business Park on the Land Use Map attached as Exhibit 1 hereto means all parcels in CFD No. 88-4 for which a building permit has been issued as of March 1 of the preceding Fiscal Year.

"Fiscal Year" means the period starting on July 1 and ending the following June 30.

"Land Use Class" means any of the categories listed in Table 1 hereof to which a parcel is assigned consistent with the Land Use Map attached hereto as Exhibit 1 and land use approvals that have been received as of March 1 of the preceding Fiscal Year.

"Maximum Special Tax" means the maximum Special Tax for each Land Use Class, determined in accordance with Section C hereof, that can be levied by the Board in any Fiscal Year.

"Vacant Property" means all parcels which are not Developed Property or Approved Property as of March 1 of the preceding Fiscal Year.

B. Assignment to Land Use Class.

The Special Tax shall be levied upon and collected from a parcel for a Fiscal Year according to the designated Land Use Class to which that parcel has been assigned for the Fiscal Year in which the levy is made. Initially, all property within CFD No. 88-4 has been assigned to Land Use Class 7 (Vacant Property). Parcels shall be reassigned to a Land Use Class on each July 1 as follows:

(1) A parcel shall be assigned to Land Use Class 1 or 2 for a Fiscal Year, based on the land use indicated on the Land Use Map attached hereto as Exhibit 1, only if a final tract map has been recorded with respect to that parcel in the Office of the County Recorder for Riverside County as of the preceding March 1.

(2) A parcel shall be assigned to Land Use Class 3(D), 4(D), 5(D) or 6(D) as listed in Table 1 hereof for a Fiscal Year, consistent with the Land Use Map attached hereto as Exhibit 1, only if a final parcel or tract map has been recorded and a building permit has been issued by the County of Riverside, or its successor, with respect to that parcel as of the preceding March 1.

(3) A parcel shall be assigned to Land Use Class 3(A), 4(A), 5(A) or 6(A) as listed in Table 1 hereof for a Fiscal Year, consistent with the Land Use Map attached hereto as Exhibit 1, if a final parcel or tract map has been recorded and no building permit has been issued with respect to that parcel as of the preceding March 1.

(4) A parcel for which no final parcel or tract map has been recorded as of the preceding March 1 shall be assigned to Land Use Class 7 for the immediately following Fiscal Year.

No Special Tax shall be levied on property not designated for development, regardless of present or future ownership or which, at the time of adoption of the resolution of formation for the Community Facilities District, is owned by or dedicated or otherwise conveyed or to be conveyed to a public agency in satisfaction of the conditions to development set forth in Specific Plan No. 213 of the County of Riverside or any amendment thereto. The property not designated for development is shown in the "white" areas of the Land Use Map attached hereto as Exhibit 1. Any acquisition by the County or another public agency of a parcel subsequent to formation of the Community Facilities District that is not acquired in satisfaction of a condition of development as set forth in said Specific Plan or any amendment thereto, shall require the immediate payment in full of any special tax obligation on such parcel pursuant to the methodology specified in the resolution of issuance for any bonds of the Community Facilities District.

Assignment of a parcel to a Land Use Class that is based on density will be determined by reference to the Land Use Map attached hereto as Exhibit 1. Assignment of a parcel to a Land Use Class based on floor area of the unit or building will be determined by reference to the building permit for such unit or building on file with the Department of Building and Safety of the County of Riverside. For Land Use Class 7, acreage shall be determined by reference to the Assessor's Parcel Map in effect as of March 1 of the preceding Fiscal Year.

C. Maximum Special Tax Rate.

The Special Tax to be levied in any Fiscal Year for a particular Land Use Class may not exceed the amount described below as the Maximum Special Tax. The Maximum Special Tax specified for each Land Use Class for any Fiscal Year shall be the amount set forth in Table 1 under the column "Maximum Rate for Fiscal Year 1988-89" escalated by an amount equal to 2% per annum on July 1, 1989 and on each July 1 thereafter..

The Special Tax shall be levied upon the taxable property within CFD No. 88-4 by applying the following rates and method of apportionment to each parcel consistent with its Land Use Class:

TABLE 1

Maximum Special Taxes on Property in

Community Facilities District No. 88-4

(Fiscal Year 1988-89) Per Unit (Residential),

Per Square Foot (Commercial/Town Center and

Business Park) and Per Acre (Approved and Vacant)

Maximum Rate

Land Use Density or for Fiscal

Class Description Square Footage Year 1988-89

1 Residential Less than 5 $796.60 per unit

units/acre

2 Residential 5 to less than $693.34 per unit

10 units/acre

3(D) Residential 10 to less than $441.69 per unit

15 units/acre

3(A) Residential 10 to less than $3,893 per acre

15 units/acre

4(D) Residential 15 or more $323.56 per unit

units/acre

4(A) Residential 15 or more $5,501 per acre

units/acre

5(D) Commercial/ Not applicable $0.76 per sq.ft.

Town Center

5(A) Commercial/ Not applicable $9,987 per acre

Town Center

6(D) Business Park Not applicable $0.55 per sq.ft.

6(A) Business Park Not applicable $7,168 per acre

7 Vacant Not applicable $6,600 per acre

Property

(D) Developed Property

(A) Approved Property

For any parcel in Land Use Class 3(D), (4(D), 5(D), or 6(D), the Special Tax to be realized from such parcel shall not be less than the amount of Special Tax which would have been due from such parcel were it in the corresponding Approved Property category. In the event the Approved Property Maximum Rate is used to calculate the Special Tax, the Maximum Rate per unit (or per square foot), being the Approved Property Maximum Rate divided by the number of units (or square footage) to be constructed on the parcel, will be greater than the Maximum Rate per unit (or per square foot) if calculated under the Developed Property category.

D. Rate and Method of Apportionment.

On or prior to July 20 of each year, the Board shall determine the total Special Tax to be levied and collected for the current Fiscal Year, including, but not limited to, the amounts required to pay for debt service on any indebtedness, establish any reserves and pay for any incidental or administrative expenses incurred by CFD No. 88-4 (The "Required Special Tax"). The Board shall cause to be computed the maximum amount of Special Tax that could be collected in such Fiscal Year if the Maximum Special Tax were levied against each parcel included with Land Use Classes 1, 2, 3(D), 4(D), 5(D) and 6(D) (the "Developed Property Special Tax"). The Required Special Tax shall be divided by the Developed Property Special Tax and the resulting ratio shall be the "Apportionment Ratio" for the current Fiscal Year. The amount to be levied against each parcel included within Land Use Classes 1, 2, 3(D), 4(D), 5(D) and 6(D) for that Fiscal Year shall be determined by multiplying the Maximum Special Tax for that parcel times the Apportionment Ratio; provided, however, if the Apportionment Ratio exceeds 90.9%, the Maximum Special Tax for Land Use Classes 1, 2, 3(D), 4(D), 5(D) and 6(D) shall be multiplied by 90.9% and that amount shall be levied. If after the foregoing levy on parcels in Land Use Classes 1, 2, 3(D), 4(D), 5(D) and 6(D) additional amounts will be necessary to collect the Required Special Tax, the unallocated Required Special Tax in an amount of up to 90.9% of the Maximum Special Tax for Land Use Classes 3(A), 4(A), 5(A) and 6(A), shall be levied pro rate against all parcels included in those Land Uses Classes, based on the Maximum Special Tax for each such parcel. If after the foregoing levy on parcels in Land Use Classes 1 through 6 additional amounts will be necessary to collect the Required Special Tax, an amount of up to 90.9% of the Maximum Special Tax for Land Use Class 7 shall be levied pro rate against all parcels included in that Land Use Class, based on the Maximum Special Tax for each such parcel. Thereafter, additional amounts necessary to collect the Required Special Tax shall be obtained by increasing the levy on each of the Land Use Classes pro rate above the 90.9% of the Maximum Special Tax applicable to each Land Use Class.

E. Review/Appeal Board.

The Board shall establish as part of the proceedings and administration of CFD No. 88-4 a special three-member Review/Appeal Board. This Board shall construe and make determinations relative to the administration of the Special Tax as herein specified.