CFD 2005-1 (Sorrento) special tax

“Pursuant to the Rate and Method of Apportionment of Special Tax (the "RMA"), which was adopted as an exhibit to the Resolution of Formation for CFD No. 2005-1, the Special Tax Liability means the amount necessary in any fiscal year to (i) pay principal and interest on Bonds, (ii) pay Administrative Expenses, (iii) pay directly for the cost of acquiring authorized facilities, (iv) replenish reserve funds, and (v) to pay amounts required under the bond indenture, as determined by the CFD Administrator.”

“Generally, the infrastructure authorized to be financed by the CFD includes: construction of sanitary sewers, storm drains, water facilities, street improvements, bridge improvements, landscaping and slope planting, and all street and bridge improvements including widening, paving and/or re-paving, striping, and/or re-striping, pedestrian sidewalks or other related improvements or appurtenances, utilities within the rights of way, all within or in the vicinity of the CFD, the City Community Services Fee, development fees, and other City fees related to facilities.”

“The CFD encompasses all of the master-planned community known as "Sorrento," generally located north of Ferrari Ranch Road and west of the Lincoln Crossing project. The Sorrento community stretches across approximately 147.4 acres and has been fully developed with 497 single family residential dwelling units.”

2005-06-14

“On June 14, 2005, the City Council of the City of Lincoln (the "City") adopted a resolution establishing Community Facilities District No. 2005-1 (Sorrento Project). At a special election held on the same date, the owners of the property within the CFD authorized the CFD to incur bonded indebtedness not to exceed $16,000,000.”

“It is intended that all special taxes applicable to Parcels be collected in the same manner and at the same time as ordinary ad valorem property taxes, and that special taxes so levied will be subject to the same penalties and procedures, sale and lien priority in case of delinquency as is provided for ad valorem taxes”

County of Placer, on the secured tax roll (City may also bill directly)

“On or about July 1 of each year, but in any event in sufficient time to include the levy of the special taxes on the County's secured tax roll, the CFD Administrator shall determine for each Parcel within the District whether it is Taxable Property ... Notwithstanding the foregoing, the City may collect the special taxes at such other times or in such other manner as necessary or convenient to satisfy the obligations of the District, including by means of direct billing of the affected property owners.”

“Taxable Property" is all real property within the boundaries of the District, except that the following Parcels shall not be Taxable Property: any land owned, conveyed or irrevocably offered for dedication to a public agency; any land which is a public right of way or which is an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement; and/or any Parcel used exclusively by a homeowners' association.”

“Prior to the close of escrow for the first transfer of title of any Developed Parcel after the date on which a Certificate of Occupancy for such Parcel was issued by the City, the Maximum Special Tax shall be subject to mandatory partial prepayment in an amount necessary to bring the Total Property Tax Burden for the then-current Fiscal Year to an amount less than or equal to 2.0% of the sale price of the Parcel.”

“Developed Parcel" means a Parcel for which a building permit for new construction was issued as of June 30 of the prior Fiscal Year.”