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HomeMy WebLinkAbout21417 - RESOLUTIONS - 10/5/2005RESOLUTION NO. 21417 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS, CALLING A SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS WITHIN SAID DISTRICT THE QUESTION OF LEVYING OF A SPECIAL TAX AND ISSUANCE OF BONDED INDEBTEDNESS WITHIN THE DISTRICT WHEREAS, the City Council (the "Council') of the City of Palm Springs, California (the "City"), acting in its capacity as the legislative body (the "Legislative Body") of Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs (the "District"), on July 20, 2005, has heretofore adopted its Resolution No. 21381 (the "Resolution of Intention") stating its intention to form the District as described therein pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, (the "Act") being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof, and calling a public hearing on the gluestion of the formation of the proposed District, including the levying of a special tax on the District and all other matters as set forth in the Resolution of Intention; and WHEREAS, a copy of the Resolution of Intention, incorporating a description and map of the proposed boundaries of the District, stating the purpose of the formation of the District to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities, including all furnishings, equipment and supplies related thereto, and the payment of development, impact and other fees required therefor identified in Exhibit "A" hereto and incorporated herein by this reference, (collectively, the "Facilities"); (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the "Incidental Expenses") and (3) payment and retirement of assessments in Assessment District No. 155 of the City of Palm Springs (the "AD 155 Payment'), and (4) funding of a Reserve Account and specifying the special taxes to be levied within the District; and WHEREAS, on July 20, 2005, the Council of the City has heretofore adopted its resolution of intention to incur bonded indebtedness (the 'Resolution of Intention to Incur Bonded Indebtedness") stating its intention to incur bonded indebtedness in an amount not to exceed $21,000,000 within the District; and WHEREAS, a copy of the Resolution of Intention to Incur Bonded Indebtedness is on file with the City Clerk; and WHEREAS, notice of the public hearing was duly given as required by the Act; and WHEREAS, the Resolution of Intention and Resolution to Incur Bonded Indebtedness set September 7, 2005 as the date of the public hearing to consider the question of the levying of a special tax on the property and all other matters set forth in the Resolution of Intention, and the proposed bonded indebtedness pursuant to the Resolution of Resolution No. 21417 Page 2 Intention and the Resolution of Intention to Incur Bonded Indebtedness, and this Council held said public hearing as required by law; and ' WHEREAS, said hearing was opened and continued to October 5, 2005, at the request of the owners of the property in the District; and WHEREAS, at said hearing all persons within the District and not exempt from the special tax desiring to be heard on all matters pertaining to the formation of the District, the levy of the special tax, and the issue of bonded indebtedness and all other matters as set forth in the Resolution of Intention and Resolution to Incur Bonded Indebtedness were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the Legislative Body on the matters before it, and the Legislative Body at the conclusion of the hearing is fully advised as to all matters relating to formation of the District, including the levy of the special tax on the property; and WHEREAS, it has now been determined that written protests have not been received from registered voters and/or property owners representing more than one-half (1/2) of the area of land within the District; and WHEREAS, there are less than twelve (12) registered voters residing within the District, and have been for at least the preceding ninety (90) days; and WHEREAS, on the basis of the foregoing, the Legislative Body has determined at this time to proceed with the formation of the District, and to call an election therein to authorize the levy of the special tax therein (as such tax is more particularly described in the Resolution of Intention), to incur bonded indebtedness within the District and to establish an appropriations limit for the District; THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That the above recitals are all true and correct. Section 2. Written protests against the furnishing of specified facilities or the levying of a specified special tax within the District, have not been filed by fifty percent (50%) or more of the registered voters or six (6) registered voters, whichever is greater, residing within the boundaries of the District. All protests and objections, if any, are hereby overruled. Section 3. The boundaries of the property upon which the special taxes will be levied in order to pay the bonded indebtedness are generally described as all that territory within the District as said property is shown on a map as previously approved by the Legislative Body, said map designated "Map of Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs," a copy of which is on file in the office of the City ' Clerk and shall remain open for public inspection. The map of the proposed boundaries of the District has been recorded in the Office of the County Recorder of Riverside Resolution No. 21417 Page 3 County, California in Book 63, page 60 of the Book of Maps of Assessments and 1 Community Facilities Districts (Document Number 2005-0605183). Section 4. The City Council hereby declares and deems that public convenience and necessity require that it is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $21,000,000 within the District for the purposes set forth in Section 5 below. The entire District shall pay for the bonded indebtedness as authorized by the District in Resolution No. 21382 adopted on July 20, 2.005. Section 5. The purpose of the proposed bonded indebtedness is generally described as follows: to finance (1) the Facilities, which Facilities have a useful life of five years or longer and the payment of development fees and other fees of public agencies; (2) the Incidental Expenses; (3) the AD 155 Payment; and (4) the funding of a Reserve Account. Section 6. Except for property within the District that is exempt, wholly or partially, from the levy of the special tax specified in the Rate and Method of Apportionment of �ipecial Tax attached to the Resolution of Formation, the whole of the property within the District shall pay for the applicable bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Intention. Section 7. The maximum term of the bonds or any series thereof to be issued shall in no event exceed forty (40) years. Section 8. The bonds or any series thereof shall bear interest at a rate not to exceed the greater of twelve percent (12%) per annum or the maximum interest rate permitted by law, payable semiannually, with the actual rates and times of payment to be determined at the time of sale thereof. Section 9. Except where funds are otherwise available, a special tax is hereby authorized, subject to the approval of the landowners as the eligible electors of the District, to levy annually in accordance with procedures contained in the Act, a special tax within the District, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for bonded indebtedness relating to the Facilities, the AD 155 Payment, the funding a Reserve Account and the Incidental Expenses. The rate and method of apportionment and manner of collection of the special tax within the District is described in detail in Exhibit "B" attached hereto and incorporated herein by this reference. Exhibit "B" allows each landowner within the District to estimate the maximum amount that may be levied against each parcel. Section 10. Pursuant to and in compliance with the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, the Council hereby establishes the following accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the District: A. Such bonded indebtedness shall be incurred for the specific purposes set forth in Section 5 above. Resolution No. 21417 Page 4 B. The proceeds of any such bonded indebtedness shall be applied only to the specific purposes identified in Section 5 above. ' C. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account or accounts into which the proceeds of such bonded indebtedness shall be deposited. D. The City Manager or the Director of Finance & Treasurer, or his or her designee, acting for and on behalf of the City, shall annually file a report with the City Council as required by Government Code Section 53411. Section 11. Pursuant to Government Code Section 53353.5, the Council hereby submits to the qualified electors of the District a combined proposition ("Proposition A") to: (1) levy special taxes on property within the District in accordance with the rate and method of apportionment with respect to the District specified in the Resolution of Intention of the Council; (2) incur bonded indebtedness in the maximum principal aggregate amount of $21,000,000 within the District; and (3) establish an appropriations limit as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the District. Said appropriations limit shall equal the amount of all proceeds of the special tax for the area within the District collected annually and as defined by said Article XIIIB, as adjusted for changes in the cost of living and changes in population. Section 12. The time for notice having been waived by all of the qualified electors, the ' date of the special election for the District on Proposition A shall be on the 5th day of October, 2005. The voter ballot shall be returned to the City Clerk at 3200 East Tahquitz Canyon Way, Palm Springs, CA 92262, no later than 11:00 o'clock a.m. on October 5, 2005. Section 13. The Council finds and determines that there were no registered voters residing within the territory of the proposed District at the time of the protest hearing and ninety (90) days prior thereto. The requirements of Section 53326 of the Government Code having been waived by the landowner, the ballots for the special election shall be mailed or personally delivered to each landowner within the District. Section 14. Notice of said election and written argument for or against the measure have been waived by each landowner within the District. Section 15. The District shall constitute a single election precinct for the purpose of holding said election. Section 16. The Council hereby directs that the election be conducted by the City Clerk of the City of Palm Springs, as the elections official. Section 17. If two-thirds (2/3) of the votes cast upon the question of levying such ' special tax, incurring of bonded indebtedness and establishing such appropriations limit are cast in favor of levying such special tax within the District as determined by the Legislative Body after the canvass of the returns of such election, the Legislative Body Resolution No. 21417 Page 5 may levy such special tax within the District under the Act in the amount and for the purposes as specified in this Resolution. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in this Resolution, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered. Section 18. An appropriation limit for the District is hereby established as an amount equal to all the proceeds of the special tax collected annually and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population. Section 19. The City Clerk is directed to certify and attest to this Resolution, and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the special tax, the incurring of bonded indebtedness, and the establishment of the appropriation limit. Section 20. This Resolution shall take effect immediately upon its adoption. ADOPTED this 5th day of October, 2005. David H. Ready, City kfa — ATTEST: <:� . ,. -- /I/, es Thompson, City Clerk `'' 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. 21417 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 October 5, 2005, by the following vote: AYES: Councilmembers Foat, Mills NOES: None ABSENT: Mayor Oden ABSTAIN: None Pougnet and Mayor Pro Tern McCulloch ' es Thompson, City Clergy k Resolution No. 21417 Page 6 EXHIBIT A ' DESCRIPTION OF FACILITIES The General Description of Facilities is as listed: 1. Street facilities, including, but not limited to, major arterials, highways, intersection, 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, 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. 21417 Page 7 EXHIBIT "A" (CONTINUED) OTHER ITEMS TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) The District may also finance any of the following: 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. Administrative fees of the City and the Bond trustee or fiscal agent related to the District and the Bonds. 4. 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. 21417 Page 8 Exhibit B ' RATE AND METHOD OF APPORTIONMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THECITY OF PALM SPRINGS A Special Tax shall be levied on all Assessor's Parcels in Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs ("CFD No. 2005-2") and collected each Fiscal Year commencing 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. I:w 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 an 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 Government 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 regarding 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 commencing 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. I CFD No. 2005-2 (Escena) of the City of Palm Springs Page I Resolution No. 21417 Page 9 Exhibit B "Assessor's Parcel Map" means an official map of the County Assessor of the County q 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 detennined in accordance with Section C. L(c) below. "Bonds" means any bonds or other debt (as defined in Section 53317(d) of the 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 City that 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 Community Facilities DistrictNo. 2005-2 (Escena) of the City of Patin 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 County 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 building permit for new construction was issued after January 1, 2005 and on or before May I 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 I 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 may be issued without further subdivision. CFD No. 2005-2 (Escena) of the City of Paint Springs Page 2 Resolution No. 21417 Exhibit B Page 10 , ' "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. "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" mean all Bonds which are deemed to be outstanding under the Indenture. "Property Owner Association Property" means, for each Fiscal Year, any property within I 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, "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 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 utilization for other than the purpose set ' forth in the easement. CFD No. 2005-2 (Eseena) of the City of Palm Springs Page 3 Resolution No. 21417 Page 11 Exhibit B "Residential Floor Area" means all of the square footage of living area within the 1 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 units. "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 amount 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 Indenture. "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. CFD No. 2005-2 (Escena) of the City of Patin Springs Page 4 Resblution No. 21417 Page 12 M C. Exhibit B "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not 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 from 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. 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. 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. 1 CFD No. 2005-2 (Escena) of the City of Palm Springs Page 5 Resolution No. 21417 Exhibit B Page 13 TABLE t Fiscal Year 2005-2006 Assigned Special Taxes for Developed Property Land Use Residential Assigned Class I Description F1oorArea Special Tax 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 maybe 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 Classification Backup Special Tax Zone t $12,277 per Acre L Zone 2 $16,907 per Acre CFD No. 2005-2 (Escena) of the City of Patin Springs Page 6 Resolution No. 21417 Exhibit B Page 14 ' If a Final Subdivision includes Assessor's Parcels of Taxable Property for which building permits 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 construction have or may be issued within such Final Subdivision, then the Backup Special Tax for each Assessor's Parcel of Developed Property that is part of the 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. CFD No. 2005-2 (Eseena) of the City of Palm Springs Page 7 Resolution No. 21417 Page 15 Exhibit B 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 Properly 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 I 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 Maximum 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 I or Zone 2 shall be $11,662 per Acre, said 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 Properly 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. CFD No. 2005-2 (Eseena) of the City of Patin Springs Page 8 Resolution No. 21417 Page 16 Exhibit B 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 I 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 Initial 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 Properly and Undeveloped Property in Zone 1 and Zone 2 shall be increased in equal percentages from the hritial Maximum Special Tax up to 100% of the Maximum 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 I Property at up to the 100% of Maximum Special Tax for Taxable Public Property and Taxable Property Owner Association Property. CFD No. 2005-2 (Escena) of the City of Palm Springs Page 9 Resolution No. 21417 Page 17 Exhibit B 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 annual 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 valorem 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 Iforeclose on delinquent Assessor's Parcels as permitted by the Act CFD No. 2005-2 (Escena) of the City of Patttt Springs Page 10 Resolution No. 21417 Page 18 Exhibit B II. 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 hidex 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 Apportionment 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. In 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. J "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. 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 ' CFD No. 2005-2 (Escena) of the City of Palin Springs Page 11 Resolution No. 21417 Page 19 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 surmnarized 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.: 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. CFD No. 2005-2 (Escena) of the City of Pahn Springs Page 12 Resolution No. 21417 Page 20 Exhibit B 7. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the I amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount"). S. 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. 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 I 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"). LJ CFD No. 2005 2 (Escena) of the City of Palni Springs Page 13 Resolution No. 21417 Page 21 Exhibit B 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 "PrepaymentAmount"). 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 and be 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 fiord 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 determined 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 remaining 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 terms have the following meaning: PP = the partial prepayment. PE = the Special Tax Prepayment Amount calculated according to Section H.1. F = the percentage, expressed as a decimal, by which the owner of the Assessor's Parcel is partially prepaying the Special Tax. CFD No. 2005-2 (Escena) of the City of Palm Springs Page 14 Resolution No. 21417 Page 22 Exhibit B A— the Administrative Fees and Expenses calculated according to Section H.1. 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. I, and (ii) indicate in the records of CFD No. 2005-2 that there has been apartial 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 on 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. CFD No. 2005-2 (Escena) of the City of Paint Springs Page 15 Resolution No. 21417 Page 23 EXHIBIT C OFFICIAL BALLOT COMMUNITY FACILITIES DISTRICT NO. 2005-2 (ESCENA) OF THE CITY OF PALM SPRINGS SPECIAL BOND, TAX AND APPROPRIATIONS LIMIT ELECTION October 5. 2005 To vote, mark a cross (+) in the voting square after the word "YES" or after the word "NO." All marks otherwise made are forbidden. This ballot is provided to , as sole owner or authorized representative of such sole owner of acres of land within Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs and represents _ votes. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Springs at 3200 East Tahquitz Canyon Way, Palm Springs, California 92262. PROPOSITION A: Shall Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs incur an indebtedness and be authorized to issue bonds in the maximum aggregate principal amount of $21,000,000 with interest at a rate or rates established at such time as the bonds are sold in one or more series at fixed or variable interest rates, however not to exceed any applicable statutory rate for such bonds, the proceeds of which will be used to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property, including all YES ❑ furnishings, equipment and supplies related thereto, and the payment of development, impact and other fees of public agencies (collectively, the "Facilities"), which Facilities have a NO ❑ useful life of five years or longer; (2) the payment and retirement of assessments in Assessment District No. 155 of the City of Palm Springs; (3) the funding of a Reserve Account; and (4) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the "Incidental Expenses"), as provided in Resolution of Intention No. 21381, adopted by the City Council of the City of Palm Springs on July 20, 2005, declaring its intention to establish the Community Facilities District No. 2005-2, (Escena) of the City of Palm Springs (the 'Resolution"); and shall a Special Tax be levied to pay the principal of and interest on such indebtedness and bonds and to pay directly the cost of acquisition and construction of Facilities and Incidental Expenses as authorized in the Resolution; and shall an appropriations limit be established for Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs pursuant to Article XIIIB of the California Constitution, said appropriations limit Resolution No. 21417 Page 24 to be equal to the amount of all proceeds of the special tax collected annually, as I adjusted for changes in the cost of living and changes in population? Signed this 5th day of October, 2005 [property owner] By Name Title RETURN THIS BALLOT TO: City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Your completed ballot may be mailed or personally delivered, but it must be received I prior to 11:00 a.m. on October 5, 2005. Incomplete, late or unsigned ballots will not be considered in the tabulation. [Signature Page to Ballot for Community Facilities District No. 2005-2 (Escena) of the City of Palm Springs �1