ORDINANCE NO. 693

ORDINANCE OF THE BOARD OF SUPERVISORS OF THE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN

COMMUNITY FACILITIES DISTRICT NO. 87-1

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WHEREAS, on July 21, 1987, the Board of Supervisors of the County of Riverside, State of California (the "Board"), adopted Resolution No. 87-73 stating its intention to form Community Facilities District No. 87-1 of the County of Riverside, State of California (the "District") pursuant to Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the Act"); and

WHEREAS, on July 21, 1987, the Board also adopted Resolution No. 87-294 stating its intention that the District incur bonded indebtedness in an amount not to exceed $11,000,000 for the purpose of financing the acquisition and construction of road, water and sewer facilities, including planning, design and engineering costs, the acquisition costs of any needed rights-of-way, and all other expenses incidental thereto, all as more fully described in Resolution No. 87-73 (the "Facilities") to serve the area within the District; and

WHEREAS, notice was published as required as required by law relative to the intention of the Board to form the proposed District and to have the District incur bonded indebtedness in an amount not to exceed $11,000,000; and

WHEREAS, on September 15, 1987, the Board commenced a noticed public hearing and continued said hearing to and concluded it on December 8, 1987, as required by law to determine whether it should proceed with the formation of the District and authorize the rate and method of apportionment of a special tax to be levied within the District for the purpose of paying for the Facilities and the costs associated with the bonds proposed to be issued to finance the facilities, including the principal of and interest on the proposed bonds; and

WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of the District and the levy of the special tax were heard and a full and fair hearing was held; and

WHEREAS, the Board, subsequent to said hearing, adopted Resolution No. 87-378 which amended Resolution No. 87-73 and established the District, and determined the validity of prior proceedings relative to the formation of the District and authorized the levy of a special tax within the District; and

WHEREAS, the Board, subsequent to said hearing adopted Resolution No. 87-563 calling a special election on March 22, 1988 on the propositions of levying a special tax and establishing an appropriations limit within the District; and

WHEREAS, the Board, subsequent to said hearing, adopted Resolution No. 87-379 which determined the necessity of the District incurring bonded indebtedness in an amount not to exceed $11,000,000 and called an election within the District for March 22, 1988, on the propositions of incurring bonded indebtedness, levying a special tax and establishing an appropriations limit for the District; and

WHEREAS, on March 22, 1988, an election was held within the District in which the qualified electors approved by more than a two-thirds vote the propositions of incurring bonded indebtedness, levying a special tax and establishing an appropriations limit for the District;

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. By the passage of this ordinance, the Board authorizes the levy of a special tax pursuant to the rate and method of apportionment set forth in Exhibit "A" attached hereto and incorporated by reference herein.

Section 3. Special taxes shall be and are hereby levied for the fiscal year 1990-91 at the rate of $2,400 per acre on all parcels of real property within the District which are subject to taxation and as set forth for each such parcel on a magnetic tape to be provided by Albert A. Webb Associates to the Auditor-Controller of the County.

Section 4. The Board is hereby further authorized each fiscal year, commencing with fiscal year 1991-92, by Resolution to determine the specific special tax rate and amount to be levied for the next fiscal year, except that the special tax rate to be levied shall not exceed that set forth in Exhibit "A" hereto, but the special tax may be levied at a lower rate.

Section 5. Properties or entities of the state, federal or other local governments shall, except as provided in Sections 53317.3 and 53317.5 of the Act, be exempt from the above-referenced and approved special tax.

Section 6. All of the collections of the special tax shall be used as provided for in the Act and Resolution No. 87-378. The special tax shall be levied only so long as needed for its purpose as described in Resolution No. 87-378.

Section 7. The above authorized special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes, as such procedure may be modified by law or by the Board from time to time.

Section 8. As a cumulative remedy, if any amount levied pursuant hereto as a special tax for payment of bond interest or principal

together with any penalties and other charges accruing under this

ordinance are not paid when due, the Board may, not later than four years after the due date of the last installment of principal, order that the same be collected by an action brought in the superior court to foreclose any lien therefor.

Section 9. The Chairman of the Board 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 within fifteen (15) days after its passage at least once in the Press-Enterprise, a newspaper of general circulation published and circulated in the County of Riverside.

Section 10. This ordinance relating to the levy of the special tax shall take effect immediately upon its final passage in accordance with the provisions 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 Act.

ADOPTED, SIGNED AND APPROVED this 7th day of August 1990.

ADOPTED: 08-07-90 (Eff.: 08-07-90)

ORD. 693

EXHIBIT "A"

METHOD OF APPORTIONMENT AND MAXIMUM ANNUAL RATE OR AMOUNT

OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT

NO. 87-1 OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

The special taxes to be levied annually following the issuance of the bonds of Community Facilities District No. 87-1 of the County of Riverside, State of California (the "Community Facilities District"), on taxable property within the boundaries of the Community Facilities District and to be collected during each fiscal year shall be apportioned on an acreage basis, and each acre of taxable property shall have levied thereon the same amount of special tax in each fiscal year.

The amount of special tax to be levied on each parcel of taxable property in the Community Facilities District, as recognized by the County Assessor of the County of Riverside, for each fiscal year shall be determined as follows:

(a) By dividing the total amount necessary to pay (i) the principal of and the interest on the bonds of the Community Facilities District which will be payable during the fiscal year and prior to the time of the receipt of sufficient special tax revenues for the payment of such principal and interest in the succeeding fiscal year, and (ii) the administrative expenses which are estimated to be incurred by and on behalf of the Community Facilities District during the fiscal year by the total number of acres of taxable property in the of Community Facilities District to obtain the special tax per acre for each parcel of taxable property; and

(b) By multiplying the total taxable acreage of the parcel by the special tax per acre for the fiscal year.

Administrative expenses include the costs and expenses estimated to be incurred by and on behalf of the Community Facilities District in each fiscal year for the levy and collection of special taxes, the payment of principal and interest on the bonds thereof, and registering, exchanging and transferring such bonds, including but not limited to the fees of engineers, special tax consultants, attorneys, paying agents, fiscal agents and trustees, and expenses incurred for the payment of fees for letter of credit and other credit enhancement costs.

The maximum rate or amount of special tax which may be levied on each acre of taxable property in the Community Facilities District for each fiscal year is $2,400.

It is estimated that the net taxable acreage of land within the Community Facilities District is 441.04 acres. Assuming (i) a bond issue for the Community Facilities District in the aggregate principal amount of approximately $6,720,000, (ii) interest on the bonds at the rate of 8.25 percent per annum (iii) a 25 year bond maturity schedule,

(iv) a reserve fund in an amount equal to 10 percent of the aggregate principal amount of the bonds issues, and that interest earnings on the reserve fund will be used for payment of principal and interest on the bonds, (v) that interest payable on the bonds will be capitalized or funded from bond proceeds for a period of 18 months, and (vi) that annual debt service on the bonds (the amount of principal and interest payable) and the amount of administrative expenses payable in each fiscal year following issuance of the bonds will initially be in the approximate amount of $580,000 and will increase by two (2) percent each year over the next 24 years to a maximum amount, including administrative expense, of approximately $906,000, the expected annual rate or amount of special tax per acre for each parcel of property within the Community Facilities District would vary from a low of approximately $634 to a high of approximately $1,900.