ORDINANCE NO. 705

ORDINANCE OF THE COUNTY OF RIVERSIDE, STATE OF

CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL

TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO.

88-10 (WESTSIDE COUNTRY CLUB)

WHEREAS, on October 9, 1990, the Board of Supervisors of the County of Riverside, State of California (the "Board of Supervisors"), adopted Resolution No. 90-552, as amended by Resolution No. 90-697 adopted by the Board of Supervisors on November 27, 1990, declaring its intention to form Community Facilities District No. 88-10 (Westside Country Club) 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 October 9, 1990, the Board of Supervisors also adopted Resolution No. 90-553 declaring the necessity to incur a bonded indebtedness for the District in an amount not to exceed $20,000,000 for the purpose of financing the acquisition and construction of (a) streets and roads and street facilities; (b) flood control and storm drainage facilities; 8 wastewater and sewage collection, transmission, treatment and disposal facilities, or capacity in such facilities; (d) water production, treatment, transmission, storage and distribution facilities, or capacity in such facilities; (e) school facilities, including an elementary school for Murrieta Valley Unified School District; (f) landscaping, including irrigation systems; (g) acquisition of land for park, recreation and open-space use; and (h) acquisition of land, rights-of-way and easements necessary for any of such facilities, including planning, design and engineering costs and all other expenses incidental thereto, all as more fully described in Resolution No. 90-553 (the "Facilities") to serve the area within the District; and

WHEREAS, notice was published and mailed to the owners of property in the District as required by law relative to the intention of the Board of Supervisors to establish the District and to incur a bonded indebtedness in an amount not to exceed $20,000,000 for the purpose of providing such Facilities which are necessary for the development of the property therein; and

WHEREAS, on November 27, 1990, the Board of Supervisors held a noticed public hearing as required by law relative to the formation of the District, the levy of special taxes therein, and the incurring of a bonded indebtedness by the District; and

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

WHEREAS, on November 27, 1990 the Board of Supervisors adopted Resolution No. 90-698, the resolution of formation pursuant to Section 53325.1(a) of the Government Code, establishing the District.

WHEREAS, on November 27, 1990 the Board of Supervisors, also adopted Resolution No. 90-699 determining the necessity of the District incurring a bonded indebtedness in an amount not to exceed $20,000,000 and calling a special election on the proposition of incurring such a bonded indebtedness for January 8, 1991, and providing for the consolidation of said election with the election on the propositions with respect to the annual levy of special taxes to pay the principal of and interest on the bonds and the establishment of an appropriations limit for the District in the amount of $4,000,000; and

WHEREAS, on January 8, 1991, an election was held within the District in which the qualified electors approved by more than a two-thirds vote the propositions regarding the incurring of a bonded indebtedness, the annual levy of special taxes to pay the principal and interest on the bonds, and the establishment of an appropriations limit for the District;

WHEREAS, on February 5, 1991, another special election was held within the District in which the qualified electors approved by more than a two-thirds vote the proposition of whether special taxes shall be levied on taxable property within the District for the purpose of paying for the design, construction and acquisition of the Facilities or to create a fund or funds for paying for the Facilities in subsequent fiscal years; and

WHEREAS, the Board of Supervisors may therefore proceed to authorize the levy of special taxes for the purpose of paying the principal and interest on the bonds of the District, the proceeds of which will be used to pay for the design, construction and acquisition of the Facilities, and for the further purpose of paying for the design, construction and acquisition of the Facilities.

NOW, THEREFORE, the Board of Supervisors of the County of Riverside in regular session assembled on February 26, 1991 ORDAINS as follows:

SECTION 1. The above recitals are all true and correct.

SECTION 2. By the passage of this ordinance, the Board of Supervisors authorizes the levy of special taxes pursuant to the formula set forth in Exhibit "A" attached hereto and incorporated by reference herein.

SECTION 3. The Board of Supervisors is hereby further authorized and shall each year by Resolution determine the specific special tax rates and amounts to be levied for the next fiscal year, except that the special tax rates to be levied shall not exceed those set forth in Exhibit "A". The special taxes, however, may be levied at lower rates.

SECTION 4. Properties or entities of the state, federal or other local governments shall, except as provided in Section 53317.3 of the California Government Code, be exempt from the above-referenced and approved special tax.

SECTION 5. All special taxes collected shall be used as provided for in the Act and pursuant to Resolution No. 90-698, the Resolution of Formation. The special taxes shall be levied only so long as needed for the purposes set forth in Resolution No. 90-698.

SECTION 6. The above authorized special taxes shall, except in the event of judicial foreclosure proceedings pursuant to Section 53356.1 of the California Government Code and Section 7 hereof, 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 of Supervisors from time to time.

SECTION 7. 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 of the County of Riverside are not paid when due, the Board of Supervisors 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 8. The Chairman of the Board of Supervisors shall sign this ordinance and the Clerk of the Board of Supervisors shall attest thereto and shall, within fifteen (15) days of its adoption, cause it to be published in the Press-Enterprise, a newspaper published and circulated in the County of Riverside.

SECTION 9. This ordinance relating to the levy of the special taxes shall take effect without publication, immediately upon its final passage in accordance with the provisions of Section 251238 of the California Government Code, and this specific authorization for adoption is pursuant to the provisions of Section 53340 of the California Government Code.

ADOPTED: 2-26-91 (Eff.: 2-26-91)

(FOLLOWING IS EXHIBIT AA@)

ORDINANCE NO. 705

EXHIBIT "A"

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

FOR COMMUNITY FACILITIES DISTRICT NO. 88-10 (WESTSIDE COUNTRY CLUB)

COUNTY OF RIVERSIDE

A Special Tax, the "Special Tax(es)" (defined below), shall be applicable to each Parcel (defined below) located in Community Facilities District No. 88-10 (hereinafter "CFD No. 88-10). The amount of Special Tax to be collected from a Parcel in any Fiscal Year (defined below) shall be determined by the Board of Supervisors of the County of Riverside (hereinafter the "Board"), acting in its capacity as the legislative body of CFD No. 88-10, by applying the appropriate Special Tax Rate as set forth in Sections B and C below for Developed Property or Undeveloped Property (both terms defined below). All of the property in CFD No. 88-10, unless exempted by law or by the provisions of Section E below, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS

"Alternative Special Tax Rate" means, as applied to Developed Property, an amount equal to $0.21 per Parcel square foot for land use classes 1 through 7, as specified in Table 1 below.

"Assessor's Parcel Map" means an official map of the County Assessor of the County of Riverside designating parcels by Assessor's Parcel number.

"Assigned Special Tax Rate" means the rate of Special Tax per dwelling unit or per Net Taxable Acre for Commercial/Industrial Property or Golf Course Property specified in Table 1 below.

"Commercial/Industrial Property" means all Parcels of Developed Property that are to be developed or are developed for commercial or industrial use as specified in the Specific Plan or the land use regulations of the County of Riverside.

"Developed Property" means all Parcels for which a final subdivision tract map or parcel map was recorded prior to March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Tax is being levied, and includes Golf Course Property when a building permit for a golf course clubhouse was issued prior to March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.

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

"Golf Course Property" means all Parcels that are designated as golf course property on Tentative Parcel Map No. 23303, or a final parcel map that is based on this tentative map.

"Maximum Special Tax" means the Maximum Special Tax, determined in accordance with Section C below, that can be levied by the Board in any Fiscal Year on a Parcel of Developed Property or Undeveloped Property.

"Net Taxable Acre" means an acre of Developed Property or Undeveloped Property, exclusive of property exempted by law or by the provisions of Section E below, as indicated by the most recent Assessor's Parcel Map or parcel map or other subdivision tract map recorded in the office of the County Recorder of the County of Riverside.

"Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's Parcel number.

"Planning Area" means any of the numbered planning areas designated as such in the Specific Plan.

"Single Family Attached Residential Unit" or "Residential Attached" means a Parcel of Developed Property which contain(s) a structure or structures, made up of two or more dwelling units that share common walls.

"Single Family Detached Residential Unit" or "Residential detached" means a Parcel of Developed Property which contains one dwelling unit.

"Special Tax Requirement" means that amount required in any Fiscal Year to pay: (1) debt service on all bonds or other indebtedness of CFD No. 88-10. (2) the cost of acquisition or construction of public facilities, (3) costs incurred by CFD No. 88-10 in the annual levy and collection of the Special Tax, (4) the administration costs of CFD No. 88-10, and (5) any amounts required to the extent permitted in the Maximum Special Tax to replenish any reserve funds established in association with bonds issued and sold by CFD No. 88-10, and (6) any amounts needed for the creation of a special fund or funds for financing the costs of the acquisition or construction of public facilities in subsequent Fiscal Years.

"Special Tax(es)" means the Special Tax to be levied in each Fiscal Year on each Parcel of Developed Property or Undeveloped Property to fund the Special Tax Requirement.

"Specific Plan" means the Walker Basin Specific Plan dated as of May 19, 1988, or as subsequently modified, supplemented or amended.

"Undeveloped Property" means all Parcels not classified as Developed Property as of March 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied.

B. ASSIGNMENT TO LAND USE CLASS

For each Fiscal Year (commencing with the 1991-92 Fiscal Year) all Parcels within CFD No. 88-10 shall be classified either as Developed Property or Undeveloped Property and shall be subject to the levy of the Special Tax in accordance with the rates and method of apportionment set forth in Sections C and D below.

For purposes of determining the applicable Maximum Special Tax pursuant to Section C below, Parcels of Developed Property shall be assigned to one of the land use classes designated in Table 1 below. Single Family Detached Residential Units shall be assigned to classes 1 through 5 based on the minimum lot size for the Planning Area wherein the Parcels are located as stated by the Specific Plan and the current Assessor's Parcel Map. Single Family Attached Residential Units shall be assigned to class 6. Commercial\Industrial Property shall be assigned to class 7. Golf Course Property shall be assigned to class 8.

C. MAXIMUM SPECIAL TAX

1. Developed Property

The Maximum Special Tax for Developed Property assigned to classes 1 through 7 in Table 1 shall be the greater of (I) the amount determined by application of the Assigned Special Tax Rate specified in Table 1, or (ii) the amount derived by multiplying the square footage of the Parcel by the Alternative Special Tax Rate. For purposes of this Section C, the square footage of a Parcel shall be the total square footage shown on the current Assessor's Parcel Map. The Maximum Special Tax for Developed Property assigned to class 8 in Table 1 shall be the Assigned Special Tax Rate specified in Table 1.

TABLE 1

ASSIGNED SPECIAL TAX RATES FOR DEVELOPED PROPERTY

Assigned Special

Class Land Use Minimum Lot Size (1) Tax Rates (2)

1 Residential 20,000 SF/lot or more $3,886 per unit

Detached

2 Residential 10,000-19,999 SF/lot $2,989 per unit

Detached

3 Residential 7,200-9,999 SF/lot $1,794 per unit

Detached

4 Residential 5,000-7,199 SF/lot $1,196 per unit

Detached

5 Residential 4,999 SF/lot or less $ 897 per unit

Detached

6 Residential Not Applicable $ 598 per unit

Attached

7 Commercial/ Not Applicable The greater of $7,472

Industrial per Net Taxable Acre

or $0.687 per SF of

Building floor space

8 Golf Course Not Applicable $ 605 per Net Taxable Acre

SF--square feet

NOTES:

1. Minimum lot size will be calculated based on the minimum lot size within the entire Planning Area wherein a Parcel is located as shown in the Specific Plan and the current Assessor's Parcel Map.

2. Assigned Special Tax rates have been calculated assuming 443.5 Net Taxable Acres of Developed Property (270.0 Net Taxable Acres for the Alternative Special Tax Rate) and 129.5 acres of exempted property, including 122.0 acres of public rights-of-way and 7.5 acres of public parks (see Section E).

The Assigned Special Tax Rates specified in Table 1 represent the amounts required to fund the projected expenses of CFD No. 88-10. The Maximum Special Tax for a Parcel of Developed Property may exceed the Assigned Special Tax Rate if the Alternative Special Tax Rate is applied under the Fourth step in Section D below. The Alternative Special Tax Rate is applied under the Fourth step in Section D below. The Alternative Special Tax Rate may be applied to a Parcel of Developed Property if its application yields a Special Tax greater than the Assigned Special Tax Rate for the Parcel.

Examples of the application of the Alternative Special Tax Rate include:

If a 15,000 square foot Parcel in class 2 has an Assigned Special Tax Rate of $2,989 per unit, application of the Alternative Special Tax Rate would result in a Maximum Special Tax of $3,150 (15,000 SF x $0.21/SF).

If a one acre Parcel in class 6 with 15 Residential Attached dwelling units has an Assigned Special Tax Rate of $598 per unit, application of the Alternative Special Tax Rate would result in a Maximum Special Tax of $610 per unit (43,560 SF x $0.21/SF - 15 units).

If a one acre Parcel in class 7 with 10,876 square feet of building floor space has an Assigned Special Tax Rate of $7,472 per acre, application of the Alternative Special Tax Rate would result in a Maximum Special Tax of $9,148 (43,560 SF x $0.21/SF).

As set forth in Section D below, the Alternative Special Tax Rate will only be applied to Developed Property, classes 1 through 7, as a Special Tax of last resort if the Board determines that the Special Tax must in fact be levied based on the Alternative Special Tax Rate. Parcels in class 8 are not subject to an Alternative Special Tax Rate.

2. Undeveloped Property

The Maximum Special Tax for Undeveloped Property shall be $14,700 per acre. Parcel acreage for Undeveloped Property shall be the Net Taxable Acreage shown on the current Assessor's Parcel Map.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO DEVELOPED PROPERTY AND UNDEVELOPED PROPERTY

Starting with Fiscal Year 1991-92 and for each subsequent Fiscal Year, the Board shall determine the Special Tax Requirement. The Board shall levy the Special Tax as follows:

First: The Special Tax shall be levied on all Parcels of Developed Property, exclusive of property exempt from Special Tax pursuant to Section E below, up to 91 percent of the Assigned Special Tax Rate;

Second: If additional funds are needed after the First step has been completed, the Special Tax shall be levied on each Parcel of Undeveloped Property, exclusive of property exempt from the Special Tax pursuant to section E below, up to 100 percent of the Maximum Special Tax for Undeveloped Property;

Third: If additional funds are needed after the First and Second steps have been completed, the levy of the Special Tax on all Parcels of Developed Property, exclusive of property exempt from the Special Tax pursuant to Section E below, shall be increased by an amount that will not exceed 100 percent of the Assigned Special Tax Rate;

Fourth: If additional funds are needed after the three steps above have been completed, the levy of the Special Tax on Developed Property, exclusive of property exempt from the Special Tax pursuant to Section E below, shall be determined by application of the Alternative Special Tax Rate to those parcels meeting the specifications set forth in Section C above to an amount not exceeding 100 percent of the Alternative Special Tax Rate pursuant to Section C(1) above.

E. EXEMPTIONS

The Board shall not levy a Special Tax on:

- Properties owned by state, federal, or other local governments, except as otherwise provided in Section 53317.3 of the Government Code: and

- Properties designated for use as public rights-of-way for roadways, drainage, or public parks.

- Land conveyed or irrevocably offered for dedication to a public agency after formation of CFD No. 88-10, and not otherwise exempt pursuant to this Section E, shall be subject to the levy of the Special Tax pursuant to Section 53317.3 or Section 53317.5 of the Government Code and classified as Undeveloped Property. However, at the direction of the Board, such Parcels may be exempted from the levy of the Special Tax in any Fiscal Year provided the Special Tax Requirement can be satisfied without imposing a levy on said Parcels.

F. REVIEW/APPEAL COMMITTEE

The Board shall establish as a part of the proceedings and administration of CFD No. 88-10 a special three-member Review/Appeal Committee. The Review/Appeal Committee shall interpret and make determinations relative to the administration of the Special Tax herein specified.

G. MANNER OF COLLECTION

The Special Taxes shall be collected in the same manner and at the same time as ad valorem property taxes, provided, however, that CFD No. 88-10 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations. The Special Taxes 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.