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HomeMy WebLinkAbout21381 - RESOLUTIONS - 7/20/2005 RESOLUTION NO. 21381 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX WITHIN COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS WHEREAS, the City Council has received a petition (including consent and waiver), (the "Petition"), from Palm Springs Classic, LLC, by Lennar Homes of California, Inc., its Manager, requesting the institution of proceedings for formation of a Community Facilities District, pursuant to the Mello-Roos Community Facilities Act of 1982, commencing with Section 53311 of the Government Code of the State of California (the "Act"); and WHEREAS, the City Council has determined that the Petition complies with the requirements of Government Code Section 53318 and now intends to form Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs; and WHEREAS, the Council desires to adopt this Resolution of Intention as provided in Section 53321 of the Act to establish a Community Facilities District consisting of the territory described in Exhibit "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as "Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs", (the "Community Facilities District No. 2005-2" or the "District'), pursuant to the Act to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Exhibit "B" attached hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto; (2) the payment of development and other fees (collectively, the "Facilities"), which Facilities have a useful life of five years or longer; (3) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the "Incidental Expenses"); and (4) payment and retirement of assessments in Assessment District No. 155 of the City of Palm Springs, (the "AD 155 Payment'); and WHEREAS, it is the intention of the City Council to consider financing the Facilities, the Incidental Expenses, and the AD 155 Payment through the formation of the proposed District and the sale of bonded indebtedness in an amount not to exceed $21,000,000 within the District and the levy of a special tax within the District to pay for the Facilities and the Incidental Expenses and to pay debt service on the bonded indebtedness incurred by the District, provided that the bond sales and special tax levies are approved at an election to be held within the District; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: Resolution No. 21381 Page 2 Section 1. The above recitals are all true and correct. ' Section 2. The City Council hereby determines to institute proceedings for the formation of a Community Facilities District under the terms of the Act pursuant to Section 53350 of the Act. The exterior boundaries of the proposed District are hereby specified and described to be as shown on that certain map, described in Exhibit "A," now on file in the office of the City Clerk entitled "Proposed Boundaries of Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs," which map indicates by a boundary line the extent of the territory included in the proposed District and shall govern for all details as to the extent of the proposed District. On the original and one copy of the map of the proposed District on file in the City Clerk's office, the City Clerk shall endorse the certificate evidencing the date and adoption of this Resolution of Intention. The City Clerk shall file the original map in his office and, within fifteen (15) days after the adoption of this Resolution of Intention, the City Clerk shall cause to have recorded with the Riverside County Recorder a copy of the endorsed map. Section 3. The name of the proposed District shall be designated as "Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs." Section 4. The Facilities to be financed by the proposed District and to be financed in part by the proposed District are public infrastructure facilities and other governmental facilities with an estimated useful life of five years or longer, which the City of Palm ' Springs or Desert Water Agency ("DWA") is authorized by law to construct, acquire, own, operate or contribute revenue to. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the proposed District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting a special tax within the District. The City Council hereby finds that the proposed Facilities are necessary to meet increased demands placed upon the City of Palm Springs and DWA as a result of development occurring within the proposed District. Such Facilities need not be physically located within the District. Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually, in accordance with procedures contained in the Act, a special tax within the proposed District (the "Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of the Facilities, Incidental Expenses and the AD 155 Payment, including the principal and interest and other periodic costs on bonds or other indebtedness proposed to be issued to finance the Facilities, Incidental Expenses and the AD 155 Payment, the establishment and replenishment of reserve funds, the credit enhancement fees, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax and issuance of the bonds, including any foreclosure proceedings, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, discount fees, interest on bonds due and , payable prior to the expiration of one year from the date of completion of Facilities (but not to exceed two years), election costs and all costs of issuance of the bonds, Resolution No. 21381 Page 3 including, but not limited to, fees for bond counsel, disclosure counsel, financing consultants and printing costs, and all other administrative costs of the tax levy and bond issue. The Special Tax will be secured by recordation of a continuing lien against all non-exempt real property in the District. In the first year in which such a Special Tax is levied, the levy shall include a sum sufficient to repay to the City all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon. The schedule of the rate and method of apportionment and manner of collection of the Special Tax within the District is described in detail in Exhibit "C" attached hereto and incorporated herein by this reference. The Special Tax is based upon the cost of financing the Facilities, Incidental Expenses and the AD 155 Payment in the District, the demand that each parcel will place on the Facilities and the benefit (direct and/or indirect) received by each parcel from the Facilities. The Special Tax within the District is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act. In the event that a portion of the property within the District shall become for any reason exempt, wholly or partially, from the levy of the Special Tax, the City Council shall, on behalf of the District, increase the levy to the extent necessary upon the remaining property within the District which is not delinquent or exempt in order to yield the required payments, subject to the maximum tax. If special taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased over time except that it may be increased by an amount not to exceed two percent (2%) per year to the extent permitted in the rate and method of apportionment; (ii) such tax shall be levied for a period not to exceed forty-five (45) years commencing with Fiscal Year 2005-2006, as further described in Exhibit "C" attached hereto; and (iii) under no circumstances will such special tax be increased as a consequence of delinquency or default by the owner of any other parcels within the District by more than ten percent (10%). Section 6. The special tax within the proposed District is based on the expected demand that each parcel of real property within the proposed District will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City of Palm Springs and DWA and the existing infrastructure in the City as a result of the development of land proposed for inclusion in the District. The Council hereby determines the rate and method of apportionment of the special tax for the District set forth in Exhibit "C" attached hereto to be reasonable. Section 7. A public hearing (the "Hearing") on the establishment of Community Facilities District No. 2005-2, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities, the Incidental Expenses and the AD 155 Payment shall be held on September 7, 2005 at 6:00 p.m., or as soon thereafter as practicable, at the Council Chamber of the City Council of the City of Palm Springs, 3200 East Tahquitz Canyon Way, Palm Springs, California 92262. Should the City Council determine to form the District, a special election will be held within the District to authorize the issuance of bonds and the levy of the Special Tax in Resolution No. 21381 Page 4 accordance with the procedures contained in Government Code Section 53326. If held, , the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the District. Ballots for the special election may be distributed by mail or by personal service. Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the proposed District, may appear and be heard. Section 9. Each City officer who is or will be responsible for the Facilities to be financed by the District, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council, and which is to be made a part of the record of the Hearing, containing a brief description of the Facilities and services by type which will in his or her opinion be required to adequately meet the needs of the District and his or her estimate of the cost of providing the Facilities and services, including an estimate of the fair and reasonable cost of all Incidental Expenses, including the cost of planning and designing the Facilities to be financed pursuant to the Act, the cost of environmental evaluations of such Facilities, all costs associated with the creation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with ' respect to the District, and any other expenses incidental to the construction, completion and inspection of the authorized work to be paid through the proposed financing. Section 10. The City may accept advances of funds or work-in-kind from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred in creating the District. The District may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and to repay all of such funds advanced if the levy of the Special Tax shall be approved by the qualified electors of the District. Section 11. The City Clerk is hereby directed to publish a notice ("Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed District. Such Notice shall contain the text or a summary of this Resolution, state the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed District as provided in Section 53324 of the Act and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing. , Resolution No. 21381 Page 5 Section 12. The City Clerk may send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within the proposed District as shown on the last equalized assessment roll. Said mailing shall be completed not less than fifteen (15) days prior to the date of the Hearing. Section 13. Pursuant to Section 53344.1 of the Act, the City Council hereby reserves to itself, in its sole discretion, the right and authority by subsequent Resolution to allow any owner of property within the District, subject to the provisions of Section 53344.1 of the Act and those conditions as it may impose, and any applicable prepayment penalties as prescribed in the bond indenture or comparable instrument or document, to tender to the District treasurer in full payment or part payment of any installment of the special taxes 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, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. Section 14. The voting procedure with respect to the establishment of the District and the imposition of the special tax shall be by hand delivered ballot election. ADOPTED this 20th day of July 2005. David H. Ready, Manager ATTEST: mes Thompson, City Clerk Resolution No. 21381 Page 6 CERTIFICATION ' STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 21381 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on July 20, 2005, by the following vote: AYES: Councilmember Foat, Councilmember Pougnet, Councilmember Mills, Mayor Pro Tern McCulloch and Mayor Oden. NOES: None. ABSENT: None. ABSTAIN: None. ?mes Thompson, City Clerk f Palm Springs, California Resolution No. 21381 FAage 7 EXHIBIT"A" COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) BOUNDARY MAP o m PROPOSED BOUNDARIES A CONNAUNTY FACLITES DISTRICT NO. 2005-2 3 ( ESCENA OF PALM SPRINGS I CITY OF PALM SPRINGS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA I HEREBY CERTIFY THAT Ti WITHIN WAP"WIND Bp.AATARIES OF COMIW fY FACILITIES DISTRICT W. 000 -2 (ERCETJA OF FILED IN T OFFICE OF 111E gOiSTAAY OF THE W,,,PALM CPPING9) OF THE CRY OF PALM SPPLIGS•CUMTY OF `� WELL �°2 OF DIRECTORS OF THE CITY OF P" SPRINGS•CUM1Y MAR]OFF.Dm CTQf OFOF T 1 ECm OF PATA WAS LM S ING5 AT A ®$ SITE °�,a'!z' TMMrvERSID DAY OF of cxuaw zoos. FEGNLM AEETING THEREOF,HELD W W N.AP. Lrt313' THE DAY OF 2C05 4-zf'f6D' BY T£30LLTTICN W. a 9ECRETARY OF TIE BORED OF DIRECTORS, e CITY OF PALM H INGS SEMe.3o'osu3' GUY OF P OF T CITY BDARD OF OITELTORR, R'150m OF NN SPRINGS PECOPSED THIS DAY OF •2005, AT THE H OF__O'CLOCK _.M. 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LOT AA I ® ` N/5 56'E s� VB .� 4 AARDN Role 3f6.03' ,. A0T A PMi LOT VICINITY MAP LEGEND ' N89.2P3iY125A0' L Resolution No. 21381 Page 8 EXHIBIT "B" ' TYPES OF FACILITIES TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) The General Description of the Improvements is as follows: 1. Street facilities, including, but not limited to, major arterials, highways, intersections, access ramps, roadways, sidewalk, curb, gutters, striping, lighting, traffic signalization, signage, landscaping of public streets and rights-of-way and appurtenant facilities; 2. Storm control facilities, including, but not limited to, storm drains, channels, detention, headwalls, riprap pads, retention and/or catch basins and appurtenant facilities; 3. Sewer improvements, sanitary sewers, including, but not limited to, lift stations, force mains, pump stations, transmission and main lines, valves, and appurtenant facilities (including but not limited to, the West Spine Sewer Improvements which have already been completed); 4. Domestic and reclaimed water facilities, including, but not limited to, reservoirs, pump stations, transmission lines, distribution facilities, lift stations, main lines, valves, fire hydrants and appurtenant facilities (including, but not limited to, the West Spine Water Improvements which have already been completed); 5. Park and recreational facilities and appurtenant facilities; 6. Impact and other fees, including but not limited to, TUMF, Quimby Act fees, water fees, drainage fees, sewer treatment and connection fees, water supply fees, water meter fees, water connection fees and frontage fees, storm drain fees, and other city fees; 7. Mitigation costs and incidental expenses. Resolution No. 21381 Page 9 EXHIBIT "B" (CONTINUED) OTHER ITEMS TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) The District may also finance any of the following: 1. Bond related expenses, including underwriters' discount, reserve fund, capitalized interest, financial advisor fees and expenses, bond and disclosure counsel, special tax consultant fees and expenses, dissemination agent fees and all other incidental expenses. 2. Administrative fees of the City and the Bond trustee or fiscal agent related to the District and the Bonds. 3. Reimbursement of costs related to the formation of the District advanced by the City or any related entity, or any landowner or developer within the District, as well as reimbursement of any costs advanced by the City or any related entity, or any landowner or developer within the District, for facilities, fees or other purposes or costs of the District. 4. Payment and retirement of all outstanding unpaid assessments in Assessment District No. 155 of the City of Palm Springs. This description of the public capital facilities is general in nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans and specifications may show substitutions in lieu of, or modifications to, proposed work. Any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service substantially similar to that as set forth in the Report. Resolution No. 21381 Page 10 EXHIBIT "C° ' RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA PALM SPRINGS) CITY OF PALM SPRINGS A Special Tax shall be levied on all Assessor's Parcels in City of Palm Springs Community Facilities District No. 2005-2 (Escena Palm Springs) ("CFD No. 2005-2") and collected each Fiscal Year cormnencing in Fiscal Year 2005-2006,in an amount determined through the application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 2005-2, unless exempted by law or by the provisions hereof,shall be taxed for the purposes,to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map,parcel map, condominium plan,or other recorded County parcel map. The square footage of air Assessor's Parcel is equal to the Acreage of such parcel multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982,being Chapter 2.5,Part 1, Division 2 of Title 5 of the California Govermnent Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2005-2:the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both);the costs of collecting the Special Taxes(whether by the County or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel)in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2005-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2005-2 or any designee thereof of complying with City, CFD No. 2005-2 or obligated persons disclosure requirements of applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regaling the Special Taxes;the costs of the City,CFD No.2005-2 or any designee thereof related to an appeal of the Special Tax;the costs associated with the release of funds from any escrow account; and the City's annual administration fees and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2005-2 for any other administrative purposes of CFD No.2005-2,including attorney's fees and other costs related to conurrencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. Cirty ofPalni Springs(Escena Palm Springs) July 8,2005 CFD No. 2005-2 Page I "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. ' "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property, as determined in accordance with Section C.L(b)below. "Authorized Facilities" means those authorized improvements eligible under the Act and provided by CFD No. 2005-2 under the authorized bonding program for CFD No. 2005-2. "Backup Special Tax " means the Special Tax applicable to each Assessor's Parcel of Developed Property in each Zone, as determined in accordance with Section C.L(c)below. "Bonds" means anybonds or other debt(as defined in Section 53317(d)of Act),whether in one or more series, issued by CFD No. 2005-2 under the Act. "Certificate of Occupancy" means a certificate issued by the Citythat authorizes the actual occupancy of a dwelling unit for habitation by one or more residents. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No.2005-2" means City of Palm Springs Cormnunity Facilities District No. 2005-2 ' (Escena Palm Springs). "City" means the City of Palm Springs, California. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2005-2. "County" means the Comity of Riverside, California. "Developed Property" means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Association Property, for which the Final Subdivision was recorded on or before January 1 of the prior Fiscal Year and a buildnng permit for new construction was issued after January 1,2005 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Special Taxes are being levied. "Final Mapped Property" means, for each Fiscal Year, all Taxable Property,exclusive of Developed Property, Taxable Property Owner Association Property or Taxable Public Property, which as of January 1 of the previous Fiscal Year was located within a Final Subdivision. "Final Subdivision" means a subdivision of property by recordation of a final map,parcel , map, or lot line adjustment, pursuant to the Subdivision Map Act(California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code Section 1352 that creates individual lots for which building permits RwAe issued without further subdivision. City of Palm Springs(Escena Palm Springs) July 8,2005 CFD No. 2005-2 Page 2 ' "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are,issued,as modified,amended and/or supplemented from time to time. "Initial Maximum Special Tax" means the initial maximum Special Tax, determined in accordance with Section C.2.(a) below, that can be levied in any Fiscal Year on any Assessor's Parcel of Final Mapped Property and Undeveloped Property. "Land Use Class" means any of the classes listed in Table 1 below. 1 "Maximum Special Tax"means the maximum Special Tax,determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor's Parcel. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction of one or more non-residential units or facilities has been issued by the City. "Outstanding Bonds" means all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year,any property within the boundaries of CFD No. 2005-2 that was owned by a property owner association, including any master or sub-association, as of January 1 of the prior Fiscal Year. "Proportionately" means, for Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is equal for all Assessor's Parcels of Developed Property. For Final Mapped Property, "Propel ionately°means that the ratio of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per Acre is equal for all Assessor's Parcels of Final Mapped Property. For Undeveloped Property, 'Proportionately°means that the ratio of the actual Special Tax levy per Acre to the Initial Maximum Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property. The term 'Proportionately" may similarly be applied to other categories of Taxable Property as listed in Section D below. "Public Property" means, for each Fiscal Year, (i) any property within the boundaries of CFD No. 2005-2 owned by,irrevocably offered or dedicated to,or over,or through or under which an easement for purposes of public right-of-way has been granted, to the federal government,the State,the County,the City,or any local government or other public agency as of January 1 of the previous Fiscal Year, provided that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or(ii) any property within the boundaries of CFD No. 2005-2 that was encumbered, as of January 1 of the previous Fiscal Year, by an unmanned utility easement making impractical its utiliaafion for other than the purpose set forth in the easement. City of'Palne Springs(Eseena Palm Springs) July 8,2005 CFD No. 2005-2 Page 3 "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, ' patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor's Parcel shall be made by reference to the building permit(s) issued for such Assessor's Parcel. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit permitting the construction thereon of one or more residential dwelling units has been issued by the City. "Single Family Attached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for attached residential miits. "Single Family Detached Property" means all Assessor's Parcels of Residential Property for which building permits have been issued for detached residential units. "Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property within CFD No. 2005-2 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2005-2 to: (i) pay debt service on all Outstanding Bonds due in the calendar year commencing in such Fiscal Year; (ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds due in the calendar year commencing in such Fiscal Year; (iii)pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) pay directly for acquisition or construction of Authorized Facilities to the extent that the inclusion of such anormt does not increase the Special Tax levy on Undeveloped Property; (vi)pay for reasonably anticipated Special Tax delinquencies based on the delinquency rate for the Special Tax levy in the previous Fiscal Year; less (vii) a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the hndenture. "State" means the State of California. "Taxable Property"means all of the Assessor's Parcels within the boundaries of CFD No. 2005-2 that are not exempt from the Special Tax pursuant to law or Section E below. "Taxable Property Owner Association Property" means, for each Fiscal Year, all Assessor's Parcels of Property Owner Association Property that are not exempt from the Special Tax pursuant to Section E below. "Taxable Public Property" means, for each Fiscal Year, all Assessor's Parcels of Public Property that are not exempt from the Special Tax pursuant to Section E below. "Trustee" means the trustee or fiscal agent under the Indenture. ' City ofPalne Springs(Eseena Palm Springs) July 8,2005 CFD No. 2005-2 Page 4 "Undeveloped Property"means,for each Fiscal Year,all Taxable Propertynot classified as ' Developed Property,Final Mapped Property,Taxable Property Owner Association Property or Taxable Public Property. "Zone" means Zone 1 or Zone 2, as applicable. "Zone 1" means all property currently within CFD No.2005-2 which is not located in Zone 2. "Zone 2" means the land area geographically identified as Lots 44 through 50 in Tract Map No. 32233-1 recorded with the County on May 23, 2005 as Document No. 2005-0409493. Zone 2 may be subject to amendment fiom time-to-time or modification pursuant to a final map or precise site plan for such property at the sole discretion of the CFD Administrator provided that such amendment or modification will not reduce the amount of Maximum Special Tax below the amount required to equal at least 1.1 times the maximum annual debt service on all Outstanding Bonds, plus the Administrative Expenses. Et. ASSIGNMENT TO LAND USE CLASSES Each Fiscal Year,'all Taxable Property within CFD No. 2005-2 shall be assigned to a Zone and further classified as Developed Property,Final Mapped Property,Undeveloped Property, Taxable Property Owner Association Property, or Taxable Public Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D below. C. MAXIMUM SPECIAL TAX RATE Residential Property shall be assigned to Land Use Classes 1 through 9 as listed in Table 1 below based on the type of use and the Residential Floor Area for each unit. Non-Residential Property shall be assigned to Land Use Class 10. With respect to Residential Property, the Residential Floor Area shall be determined from the most recent building permit issued prior to the issuance of a Certificate of Occupancy for such Assessor's Parcel. 1. Developed Property (a) Maximum Special Tax The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax or (ii) the amount derived by application of the Backup Special Tax. (b) Assigned Special Tax The Fiscal Year 2005-2006 Assigned Special Tax for each Land Use Class is shown below in Table 1. City of Palm Springs(Escena Paint Springs) July 8,2005 C1%D No. 2005-2 Page•5 TABLE 1 Fiscal Year 2005-2006 ' Assigned Special Taxes for Developed Property enti . AsSign�d T C assSe Desbrxption R sid al ,,Floor Area Special I ax 1 Single Family Detached Property More than 3,200 sq. ft. $2,450 per unit 2 Single Family Detached Property 2,801 —3,200 sq. ft. $2,150 per unit 3 Single Family Detached Property 2,501 —2,800 sq. ft. $1,950 per unit 4 Single Family Detached Property 2,201 —2,500 sq. ft. $1,800 per unit 5 Single Family Detached Property Less than 2,201 sq. ft. $1,650 per unit 6 Single Family Attached Property More than 1,600 sq. ft. $1,450 per unit 7 Single Family Attached Property 1,401 - 1,600 sq. ft. $1,050 per unit 8 Single Family Attached Property 1,201 - 1,400 sq. ft. $850 per unit 9 Single Family Attached Property Less than 1,201 sq. ft. $550 per unit 10 Non-Residential Property NA $11,662 per Acre (c) Backup Special Tax ' The Fiscal Year 2005-2006 Backup Special Tax attributable to a Final Subdivision in Zone 1 or Zone 2 will equal the applicable Backup Special Tax for such Zone,identified in Table 2 below,multiplied by the Acreage of all Taxable Property, exclusive of any Taxable Property Owner Association Property and Taxable Public Property,therein. The Backup Special Tax for each Assessor's Parcel of Residential Property shall be computed by dividing the Backup Special Tax attributable to the applicable Final Subdivision by the number of Assessor's Parcels for which building permits for residential construction have or may be issued(i.e.,the number of residential lots). The Backup Special Tax for each Assessor's Parcel of Non-Residential Property in Zone 1 or Zone 2 shall equal the applicable Backup Special Tax for such Zone, identified in Table 2 below, multiplied by the Acreage of such Assessor's Parcel. TABLE 2 Fiscal Year 2005-2006 Backup Special Tax for Developed Property Special Tax Classnfloatwn Back)xp Specrl Tax Zone 1 $12,277 per Acre Zone 2 $16,907 per Acre City of Palm Springs(Escena Palm Springs) July 8,2005 CFD No.2005-2 Page 6 e If a Filial Subdivision includes Assessor's Parcels of Taxable Property for which building pennits for both residential and non-residential construction may be issued, exclusive of Taxable Property Owner Association Property and Taxable Public Property, then the Backup Special Tax for each Assessor's Parcel of Residential Property shall be computed exclusive of the Acreage and Assessor's Parcels of property for which building permits for non-residential construction may be issued. Notwithstanding the foregoing, if all or any portion of the Final Subdivision(s)described in the preceding paragraphs is subsequently changed or modified by recordation of a lot line adjustment or similar instrument,and only if the CFD Administrator determines that such change or modification results in a decrease in the number of Assessor's Parcels of Taxable Property for which building permits for residential constriction have or maybe issued within such Final Subdivision, then the Backup Special Tax for each Assessor's Parcel of Developed Property that is part ofthe lot line adjustment or similar instrument for such Final Subdivision shall be a rate per Acre as calculated below. The Backup Special Tax previously determined for an Assessor's Parcel of Developed Property that is not part of the lot line adjustment or similar instrument for such Final Subdivision shall not be recalculated. 1. Determine the total Backup Special Tax anticipated to apply to the changed or modified portion of the Final Subdivision area prior to the change or modification. 2. The result of paragraph 1 above shall be divided by the Acreage of Taxable Property which is ultimately expected to exist in such changed or modified portion of the Final Subdivision area, as reasonably determined by the CFD Administrator. 3. The result of paragraph 2 above shall be the Backup Special Tax per Acre which shall be applicable to Assessor's Parcels of Developed Property in such changed or modified portion of the Final Subdivision area for all remaining Fiscal Years in which the Special Tax may be levied. Citv of Palm Springs(Escena Palm Springs) July 8,2005 CFD No. 2005-2 Page 7 Furthermore, all Assessors' Parcels within CFD No. 2005-2 will be relieved simultaneously and permanently from the obligation to pay and disclose the ' Backup Special Tax if the CFD Administrator determines that(i)the annual debt service required for the Outstanding Bonds, when compared to the Assigned Special Taxes that may be levied against all Assessors' Parcels of Developed Property in CFD No.2005-2 result in 110%debt service coverage (i.e., the Assigned Special Taxes that may be levied against all Developed Property in CFD No. 2005-2 in each remaining Fiscal Year based on then existing development in CFD No. 2005-2 is at least equal to the sum of(a) the Administrative Expenses and (b) 1.10 times maximum annual debt service in each remaining Fiscal Year on the Outstanding Bonds),and(ii)all authorized Bonds have already been issued or the Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax in CFD No. 2005-2. (d) Increase in the Assigned Special Tax and Backup Special Tax The Fiscal Year 2005-2006 Assigned Special Tax, identified in Table 1 above, and Backup Special Tax, identified in Table 2 above, shall not be subject to change and shall therefore remain the same in every Fiscal Year. (e) Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain ' more than one Land Use Class. The Maximuum Special Tax levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax for all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's allocation to each type of property shall be final. 2. Final Mapped Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property (a) Initial Maximum Special Tax The Fiscal Year 2005-2006 Initial Maximum Special Tax for Final Mapped Property and Undeveloped Property in Zone 1 or Zone 2 shall be$11,662 per Acre, and shall not be subject to change and shall therefore remain the same in every Fiscal Year. (b) Maximum Special Tax The Fiscal Year 2005-2006 Maximum Special Tax for Final Mapped Property, Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property in Zone 1 or Zone 2 shall be$16,907 ' per Acre, and shall not be subject to change and shall therefore remain the same in every Fiscal Year. City of Palm Springs(Eseena Palm Springs) Julp8,2005 CFD No. 2005-2 Page 8 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year,the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the total Special Tax levy equals the Special Tax Requirement subject to the Maximum Special Tax. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 in an amount equal to 100% of the applicable Assigned Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Mapped Property in Zone 1 at up to 100%of the Initial Maximum Special Tax for Final Mapped Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the second step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 1 at up to 100%of the Initial Maximum Special Tax for Undeveloped Property; Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the third step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Mapped Property in Zone 2 at up to 100%of the Initial Maximum, Special Tax for Final Mapped Property; Fifth: If additional monies are needed to satisfy the Special Tax Requirement after the fourth step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property in Zone 2 at up to 100%of the hutial Maximum Special Tax for Undeveloped Property; Sixth: If additional monies are needed to satisfy the Special Tax Requirement after the fifth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Final Mapped Property and Undeveloped Property in Zone 1 and Zone 2 shall be increased in equal percentages from the Initial Maximum Special Tax up to 100% of the Maxifnum Special Tax for Final Mapped Property and Undeveloped Property; Seventh: If additional monies are needed to satisfy the Special Tax Requirement after the sixth step has been completed,then the levy of the Special Tax on each Assessor's Parcel of Developed Property in Zone 1 and Zone 2 whose Maximum Special Tax is determined through the application of the Backup Special Tax shall be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel; Eighth: If additional monies are needed to satisfy the Special Tax Requirement after the seventh step has been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel of Taxable Public Property and Taxable Property Owner Association Properly at up to the 100% of Maximum Special Tax for Taxable Public Pro 'r4 Taxable Property Owner Association Property. City of Palm Springs(Eseena Palm Springs) July 8,2005 CFD No. 2005-2 Page 9 Notwithstanding the above the Council may, in any Fiscal year, levy Proportionately less , than 100%of the Assigned Special Tax in step one(above),when(i)the Council is no longer required to levy the Special Tax pursuant to steps two through eight above in order to meet the Special Tax Requirement, ii) all authorized Bonds have already been issued or the Council has covenanted that it will not issue any additional Bonds(except refunding bonds) to be supported by the Special Tax, and(iii)all Authorized Facilities have been constructed and/or acquired. Further notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which a Certificate of Occupancy has been issued be increased by more than ten percent as a consequence of delinquency or default by the owner of any other Assessor's Parcel within CFD No. 2005-2. E. EXEMPTIONS No Special Tax shall be levied on up to 59.9 Acres of Public Property and Property Owner Association Property in Zone 1 and up to 15.3 Acres of Public Property and Property Owner Association Property in Zone 2. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Public Property and/or Property Owner Association Property. However, should an Assessor's Parcel no longer be classified as Public Property or Property Owner Association Property,its tax-exempt status will be revoked. ' Public Property or Property Owner Association Property that is not exempt from the Special Tax under this section shall be subject to the levy of the Special Tax and shall be taxed Proportionately as part of the eighth step in Section D. F. APPEALS AND INTERPRETATIONS Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error may submit a written appeal to CFD No. 2005-2. The CFD Administrator shall review the appeal and if the CFD Administrator concurs,the amount of the Special Tax levied shall be appropriately modified. The Council may interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the amoral administration of the Special Tax and any landowner or resident appeals. Any decision of the Council shall be final and binding as to all persons. G. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorein property taxes; provided, however, that CFD No. 2005-2 may directly bill the ' Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permitted by the Act. City of Palm Springs(Escena Palm Springs) July 8,2005 CFD No. 2005-2 Page 10 H. PREPAYMENT OF SPECIAL TAX The following additional definitions apply to this Section H: "Buildout" means, for CFD No. 2005-2, that all expected building permits have been issued. CFD Public Facilities" means either$14,887,048 in 2005 dollars,which shall increase by the Construction Inflation Index on July 1,2006,and on each July 1 thereafter,or such lower number as (i) determined by the CFD Administrator as sufficient to provide the Authorized Facilities, or(ii)determined by the Council concurrently with a covenant that it will not issue any more Bonds(except refunding bonds)to be supported by the Special Taxes levied under this Rate and Method of Apportiomnent as described in Section D. "Construction Inflation Index" means the annual percentage change in the Engineering News Record Building Cost Index for the City of Los Angeles,measured as of the calendar year which ends in the previous Fiscal Year. Iu the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus (i) public facility costs Previously paid from the Improvement Fund, (ii) moneys currently on deposit in the Improvement Fund, and(iii)moneys currently on deposit in an escrow fund that are expected to be available to finance the cost of CFD Public Facilities. "Improvement Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct CFD Public Facilities eligible under the Act. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are deemed to be outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year. 1. Prepayment in Full The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied as described herein;provided that a prepayment maybe made only for Assessor's Parcels of Developed Property, or an Assessor's Parcel of Final Mapped Property or Undeveloped Property for which a building permit has been issued, and only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice,the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the GO ofPalne Springs(Eseena Palne'Springs) Tidy.B,2005 CFD No.2005-2 Page 11 next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture. ' The Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Future Facilities Amount plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment,the Special Tax Prepayment Amount shall be calculated as follows: Paragraph No.: 1. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 2. For Assessor's Parcels of Developed Property, compute the Assigned Special Tax ' and Backup Special Tax. For Assessor's Parcels of Final Mapped Property and Undeveloped Property for which a building permit has been issued, compute the Assigned Special Tax and Backup Special Tax for that Assessor's Parcel as though it was already designated as Developed Property,based upon the building permit which has already been issued for that Assessor's Parcel. 3. (a) Divide the Assigned Special Tax computed pursuant to paragraph 2 by the total estimated Assigned Special Taxes for the entire CFD No. 2005-2 based on the Developed Property Special Taxes which could be levied in the current Fiscal Year on all expected development through Buildout of CFD No. 2005-2, excluding any Assessor's Parcels which have been prepaid, and (b) Divide the Backup Special Tax computed pursuant to paragraph 2 by the total estimated Backup Special Taxes at Buildout for the entire CFD No. 2005-2, excluding any Assessor's Parcels which have been prepaid. 4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Issued Bonds to be retired and prepaid (the "Bond Redemption Amount"). 5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the ' applicable redemption premium (e.g., the redemption price-100%), if any, on the Previously Issued Bonds to be redeemed(the "Redemption Premium"). 6. , Compute the current Future Facilities Costs. City of Palm Springs(Escena Paine Springs) Jelly 8,2005 CFD No.2005-2 Page 12 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid(the "Future Facilities Amount"). 8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Previously Issued Bonds. 9. Determine the Special Tax levied on the Assessor's Parcel in the current Fiscal Year which has not yet been paid. 10. Compute the minimum amount the CFD Administrator reasonably expects to derive from the reinvestment of the Special Tax Prepayment Amount less the Future Facilities Amount and the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment. 11. Add the amounts computed pursuant to paragraphs 8 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). 12. The administrative fees and expenses of CFD No. 2005-2 are as calculated by the CFD Administrator and include the costs of computation of the prepayment,the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). 13. The reserve fund credit(the "Reserve Fund Credit")shall equal the lesser of: (a)the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment,or(b)the amount derived by subtracting the new reserve requirement(as defined in the Indenture)in effect after the redemption of Previously Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previously Issued Bonds is below 100%of the reserve requirement(as defined in the Indenture). 14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal Payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a)or 3(b) by the expected balance in the capitalized interest fund or account under the Indenture after such first interest and/or principal payment(the"Capitalized Interest Credit"). 15. The Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12,less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). City of Palm Springs(Eseena Palm Springs)CFD No. 2005-2 July 8,2005 Page 13 From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 11, 13 and 14 shall be deposited into the appropriate fund as established under the Indenture andbe used to retire Bonds or make debt service payments. The amount computed pursuant to paragraph 7 shall be deposited into the Improvement Fund. The amount computed pursuant to paragraph 12 shall be retained by CFD No. 2005-2, The Special Tax Prepayment Amount may be insufficient to redeem a full$5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as detennined under paragraph 9 (above),the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act,to indicate the prepayment of the Special Tax and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless, at the time of such proposed prepayment, the amount of Maximum Special Taxes that may be levied on Taxable Property within CFD No. 2005-2 (after excluding 59.9 Acres of Public ' Property and Property Owner Association Property in Zone 1 and 15.3 Acres of Public Property and Property Owner Association Property in Zone 2 as set forth in Section E)both prior to and after the proposed prepayment is at least equal to the sum of (i) the Administrative Expenses and (ii) 1.10 times maximum annual debt service, in each retraining Fiscal Year on the Outstanding Bonds. 2. Prepayment in Part The Special Tax on an Assessor's Parcel of Developed Property,or an Assessor's Parcel of Final Mapped Property or Undeveloped Property for which a building permit has been issued, may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = [(PE—A) x F] +A These terns have the following meaning: PP = the partial prepayment. PE= the Special Tax Prepayment Amount calculated according to Section H.J. F= the percentage, expressed as a decimal,by which the owner of the Assessor's Parcel ' is partially prepaying the Special Tax. A= the Administrative Fees and Expenses calculated according to Section H.1. City of Pahn Springs(Escena Palm Springs) July 8,2005 CFD No.2005-2 Page 14 The owner of any Assessor's Parcel who desires such prepayment shall notify the CFD Administrator of such owner's intent to partially prepay the Special Tax and the percentage by which the Special Tax shall be prepaid. The CFD Administrator shall provide the owner . . with a statement of the amount required for the partial prepayment of the Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the Council shall(i)distribute the funds remitted to it according to Section H.1,and(ii)indicate in the records of CFD No. 2005-2 that there has been a partial prepayment of the Special Tax and that a portion of the Special Tax with respect to such Assessor's Parcel, equal to the outstanding percentage(1.00-F)of the remaining Maximum Special Tax, shall continue to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF SPECIAL TAX The Special Tax shall be levied for a period not to exceed forty-five years commencing with Fiscal Year 2005-2006,provided however that the Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined(i)that all required interest and principal payments oil the CFD No. 2005-2 Bonds have been paid; and (ii) all Authorized Facilities have been acquired and all reimbursements to the developer have been paid. Ck'of Palm Springs(Escena Palm Springs) July 8,2005 CFO No. 2005-2 Page 15