cfd 2004-3 district formation documents

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$26,330,000CITY OF INDIO

COMMUNITY FACILITIES DISTRICT NO. 2004-3 (TERRA LAGO)SPECIAL TAX BONDS, SERIES 2005

(IMPROVEMENT AREA NO. 1)

CLOSING MEMORANDUMSeptember 15, 2005

This memorandum sets forth the actions taken in connection with the issuance,sale and delivery of the City of Indio Community Facilities District No. 2004-3 (Terra Lago)Special Tax Bonds, Series 2005 (Improvement Area No. 1) (the "Bonds") in the aggregateprincipal amount of $26,330,000.

Southwest Securities, Inc. (the "Underwriter") has agreed to purchase the Bondsfor $25,824,283.00, which sum equals the principal amount thereof, less an Underwriter'sdiscount of $434,445.00, and less net original issue discount of $71,272.00. The Underwritermade a public offering of the Bonds.

The Pre-ClosingA Pre-Closing was held commencing at 1:00 p.m. on September 14, 2005 at the

offices of Fulbright & Jaworski L.L.P., 555 South Flower Street, 41st Floor, Los Angeles,California 90071, at which Pre-Closing all documents listed on the attached Closing List (the"Closing Documents") were examined, readied and packaged for the Closing. The ClosingDocuments were held in escrow by Fulbright & Jaworski L.L.P. pending the Closing.

The ClosingThe actions described herein which were taken as part of the closing (the

"Closing"), were taken as a simultaneous transaction, and no delivery of documents, payment ofmoney or other action was considered to have been completed until all such deliveries, paymentsor other actions had been made or taken.

The issuance, sale and delivery of the Bonds took place at the Closing, whichcommenced at 8:00 a.m. on September 15, 2005 at the offices of Fulbright & Jaworski L.L.P. Atthe Closing, all the Closing Documents were delivered and all payments evidenced by theClosing Documents were made. Simultaneously, the Bonds were delivered to the Underwriterthrough the facilities of The Depository Trust Company.

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The PartiesCity of Indio ("City")City of Indio Community Facilities District No. 2004-3 (Terra Lago) (the "District")Kotkin & Associates, APLC, City Attorney ("City Attorney")Harrell & Company Advisors, LLC, Financial Advisor ("FA")Southwest Securities, Inc. ("Underwriter")Jones Hall, A Professional Corporation, Underwriter's Counsel ("UC")Fulbright & Jaworski L.L.P., Bond Counsel and Disclosure Counsel ("FJ")Union Bank of California, N.A. ("Fiscal Agent")Albert A. Webb Associates ("Special Tax Consultant")First American Commercial Real Estate Services (the "Appraiser")Market Profiles, Inc. (the "Absorption Consultant")

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12. Executed copy of the Continuing Disclosure Agreement (City of IndioCommunity Facility District No. 2004-3 (Terra Lago)), dated as of September 1, 2005, by andbetween the District and the Fiscal Agent, as Dissemination Agent. [FJ]

13. Executed copies of the Developer Continuing Disclosure Agreements,each dated as of September 1, 2005, by and between the respective property owner and the FiscalAgent, as Dissemination Agent. [FJ]

14. Certificate of the City as to Signature and Incumbency. [FJ]15. Officer's Certificate of the City. [FJ]16. Certificate of the City relating to the Official Statement. [FJ]17. Direction of the City to the Fiscal Agent to Authenticate and Deliver theBonds. [FJ]18. Direction of the City as to Application of Moneys at Closing; Costs ofIssuance Fund Requisition No. 1; and Acquisition and Construction Fund Requisition No. 1.

[FJ]19. Tax Certificate as to Arbitrage. [FJ]20. IRS Form 8038-G. [FJ]21. Certified copy of Specimen Bond. [FJ]

SALE DOCUMENTS22. Preliminary Official Statement, dated August 19, 2005. [FA]23. 15c2-12 Certificate of the City, dated August 19, 2005, as to the Finality

of the Preliminary Official Statement. [FJ]24. Executed copy of the Purchase Contract, dated September 7, 2005, by and

between the District and the Underwriter. [FJ]25. Executed copy of the Official Statement, dated September 7, 2005. [FA]

FISCAL AGENT DOCUMENTS26. Certificate as to Signature and Incumbency. [Fiscal Agent]27. Certificate of Authorized Representative of the Fiscal Agent. [FJ]

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UNDERWRITER'S DOCUMENTS28. Issue Price Certificate. [FJ]29. Receipt for the Bonds. [FJ]

LEGAL OPINIONS30. Final Opinion of Bond Counsel. [FJ]31. Supplemental Opinion of Bond Counsel. [FJ]32. Opinion of Disclosure Counsel. [FJ]33. Opinion of Counsel to the District. [City Attorney]

34. Opinion of Counsel to the Fiscal Agent. [Fiscal Agent]MISCELLANEOUS DOCUMENTS

35. Certificate of Appraiser along with copy of the Appraisal Report.36. Certificate of Absorption Consultant along with copy of Absorption Study.37. Certificate of Special Tax Consultant.38. Certificate of Financial Advisor.39. Certificates of Developers.40. CDIAC Report of Proposed Debt Issuance. [FJ]41. CDIAC Report of Final Sale. [FJ]42. Blanket Letter of Representations to the Depository Trust Company. [FJ]43. Funding, Construction and Acquisition Agreement. [FJ]44. Joint Community Facilities Agreement (Valley Sanitary District). [City]45. Joint Community Facilities Agreement (Imperial Irrigation District).

[City]46. Agreement for Formation of Mello-Roos Community Facilities District

No. 2004-3. [City]

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TO: ITY COUNCIL OF THE CITY OF INDIOFROM: NDIO LAND VENTURES, LLC

PETITION (INCLUDING CONSENT AND WAIVER)REQUESTING THE ESTABLISHMENT OF A

COMMUNITY SERVICES DISTRICT

The undersigned landowner does hereby certify under penalty of perjury that thefollowing statements are all true and correct:

1. The undersigned is authorized to represent the landowner identified below and isits designated representative to petition the City Council (the "Council") of the City of Indio (the"City") and to give the consent and waiver contained herein with respect to a CommunityFacilities District to be established over the properties included within this petition (the "CFD")to be formed under the provisions of the Mello-Roos Community Facilities Act of 1982 (the"Act"), being Chapter 2.5 of Part 1 of Division 2 of title 5 (commencing with Section 53311) ofthe California Government Code.

2. The undersigned hereby certify that as of the date indicated opposite his signature,the landowner listed herein is the owner of the property within the proposed boundary of theCFD described in Exhibit "A" hereto (the "Property").

3. The undersigned, pursuant to Section 53318 of the Act, hereby requests thatproceedings be commenced (i) to establish the CFD for the purpose of financing streetscape,landscape, traffic controls, storm drain, water and sewer facilities, dry utilities, other City feesand facilities, other Valley Sanitary District fees and facilities, other Imperial Irrigation Districtfees and facilities, and related costs including designs, inspections, professional fees, connectionfees and acquisition costs in connection with a master planned community project known as"Terra Lago", (ii) to designate improvement areas within the CFD, (iii) to authorize the issuanceof bonds for each improvement area of the CFD and (iv) to establish an appropriations limit foreach improvement area of the CFD.

4. In accordance with the provisions of the Act, and specifically Sections 53326(a)and 53327(b) thereof allowing certain time and conduct requirements relative to a speciallandowner election to be waived with the unanimous consent of all the landowners to beincluded in a community facilities district and concurrence of the election official conducting theelection, the undersigned (i) expressly consents to the conduct of the special election at theearliest possible time following the adoption by the Council of a Resolution of FormationEstablishing the CFD and (ii) expressly waives any requirement to have the special election

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conducted within the time periods specified in Section 53326 of the Act or in the CaliforniaElections Code.

5. The undersigned waives any requirement for the mailing of the ballot for thespecial election and expressly agree that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being theoffice of the City Clerk and the undersigned request that the results of said election be canvassedand reported to the Council at the same meeting of the Council as the public hearing on theformation of the CFD or the next available meeting.

6. The undersigned expressly waives all applicable waiting periods for the electionand waives the requirement for analysis and arguments relating to the special election, as setforth in Section 53327 of the Act, and consents to not having such materials provided to thelandowner in the ballot packet, and expressly waives any requirements as to the form of theballot.

7. The undersigned expressly waives all notice requirements relating to hearings andspecial elections, whether by posting, publishing or mailing, and whether such requirements arefound in the California Elections Code, the California Government Code or other laws orprocedures, including but limited to any notice provided for by compliance with the provisionsof Section 4101 of the California Elections Code.

IN WITNESS WHEREOF, I hereunto set my hand this ay of March, 2005.

INDIO LAND VENTURES, LLC,a California limited liability company

Gary C. WilliamsVice PresidentSunCal Companies

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF INDIO THISAY OF 2005.

City Clerk

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EXHIBIT A

PROPOSED BOUNDARY OF THE CFD

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RESOLUTION N O. 8956RESOLUTION OF INTENTION OF THE CITY COUNCIL OF TICE CITY OF INDIOTO ESTABLISH CITY OF INDIO COMMUNITY rAcarnEs DISTRICT NO. 2004-3(TERRA LAG()); AND DESIGNATING IMPROVEMENT AREAS WITHIN SAIDCOMM UNITY FACILITIES DISTRICT

WHEREAS, the City Council (the Council ) of the City of Indio (the City ) hasreceived a petition (the "Petition") requ esting the institution of proceedings for (i) formation of acommunity facilities district (the "CFD") pursuant to the Mello-Roos Community Facilities Actof 1982, as am ended (the "A ct"), (.i) designation of imp rovem ent areas within the CFD, (iii)authorization of issuance of bonds for each improvement area within the CFD, and (iv)establishment o f an approp riations limit for each improvem ent area within the CFI); andWHEREAS, the Council has determined that the Petition complies with the requirementsof Governm ent Code Section 533180 and no w intends to initiate such proceedings; andWHEREAS, it is the intention of the Council to finance the acquisition and constructionof the Facilities (as defined below) or any com bination thereof throu gh the form ation of the

(-1.13, subject to the authorization of bonds and the levy of a special tax to pay lease paym ents,installment pu rchase paym ents or other paym ents, or principal and interest on bond s, beingapproved at an election to be held within the boundaries of each improvem ent area within theCFD; andW HER EAS, pursuant to Section 53350 of the Act, the Council may d esignate a portionor portions of the CFD as one or inore improvement areas for purposes of financing of, orcontributing to th e financing of, specified pu blic facilities;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOESHEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:Section he Council hereby determines to institute proceedings for the formationof a comm unity facilities district under the term s of the Act. The exterior bound aries of the CFDare hereby sp ecified and described to b e as shown on that certain m ap now on file in the office ofthe Clerk entitled "Co mm unity Facilities District No. 2004-3 (Terra Lago)," wh ich m ap indicatesby a bou ndary line the extent of the territory included in each imp roveme nt area within the CFDand shall govern for all details as to the extent of each imp rovem ent area within the CFD. On theoriginal and one cop y of the map on file in the City Clerk's office, the City Clerk shall endorsethe certif icate evidencing the date and adoption of this resolution. The City Clerk shall f ile theoriginal of such map in her office and, within fifteen (15) days after the adoption of this

Resolution, the City Clerk shall file a copy of such m ap so endorsed in the records of the Coun tyRecorder, County of Riverside, State of California.Section 2_ he name of the proposed CFD shall be City of Indio CommunityFacilities District No. 2004-3 (Terra Lago)."

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Section 3. he Cou ncil hereby d esignates the portions of the CFD as described inExhibit A attached h ereto, as Improv emen t Area 1 and Imp rovem ent Area 2, respectively, ofCity of Indio Com m unity Facilities District No. 2004-3 (Terra Leg o).Section 4. he facilities propo sed to be financed by each improv em ent area of theCFD are p ublic infrastructure facilities and o ther governm ental facilities with an estimated u sefullife of five years or longer, which th o Cull is authorized by law to con struct, own or operate andthat are necessary to meet increased dem ands placed upon the City as a result of development or

rehabilitation occurring within the proposed CFD, including but not limited to streetscape,landscap e, traffic controls, storm drain, water an d sewer facilities, dry utilities, other City feesand facilities, other Va lley Sanitary District fees and facilities, other Im perial Irrigation Districtfees and facilities, and related costs including designs, inspections, professional fees, connectionfees and acq uisition costs (the "F acilities"). Such Facilities need not be physically located withinthe CFD.Section 5_ xcept where funds are otherwise available, it is the intention of theCouncil to levy annually in accordance with proced ures contained, in the Act a special tax (the"Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction of

the Facilities, including the principal of and interest on the bonds proposed to be issued tof inance the Facilities and other pe riodic costs, the establishm ent and rep lenishment of reservefunds, the rem arketing, credit enhancement and liquidity fees, the costs of administering the levyand collection of the Special Tax and all other costs of the levy of the Special Tax an d issuanceof the b onds, including any foreclosu re proceed ings, architectural, engineering, inspection, legal,fiscal, and financial consultant fees, discount fees, interest on bonds du e and pay able prior to theexpiration of one year from the date of com pletion of facilities (but no t to exceed two years),election costs and all costs of issuance of the b onds, including, but not lim ited to, fees for bondcounsel, disclosure counsel, financing consultants and printing costs, and all oth er adm inistrativecosts of the tax levy and bond issue, The Special Tax will be secured by recordation of acontinuing lien against all non-exemp t real property in the CFD. In the first year in which such aSpecial Tax is levied, the levy shall include a sum sufficient to repay to the City all amo unts, ifany, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. Theschedule of the rate and m ethod of app ortionment and manner of collection of the Special Tax isdescribed in detail in. Exhibit B atta.ched h ereto and by th is reference incorporated herein. TheSpecial Tax is based upon the cost of f inancing the Facilities in the CFD, the dem and that eachparcel will place on the Facilities and the b enefit (direct and/or indirect) received by each p arcelfrom the Facilities.

The Special Tax is apportioned to ea ch parcel on the forego ing basis pursuant to Section53325.3 of the Act. In the event that a portion of the prop erty within an improvem ent area of theCFD shall becom e for any reason exem pt, wholly or partially, from the levy of the Special Tax,the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon theremaining property within the same im provement area of the C FD which is not del inquent orexempt in order to yield the required payments, subject to the maximum tax. Under nocircumstances, however, shall the Special Tax levied against any parcel used for privateresidential purp oses be increased as a consequ ence of delinquency or defau lt by the owner of anyother parcel or parcels within the same improvem ent area of the CFD by m ore than 10 percent.

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Furthermore, the m aximum special tax authorized to be levied against any parcel used for privateresidential purposes shall not be increased ov er time in excess of 2 pe rcent per year,Section 6. he Cou ncil hereby finds that the pro posed Fa cil ities are necessary to

meet increased dem ands put upon the City as a result of the new developm ent or rehabilitationwithin the proposed CFD,Section 7. public hearing (the "Hearing") on the establishment of the CFD and theproposed rate and m ethod of apportionmen t of the Special Tax shall be held on July 6, 2005, at6:00 o'clock p.m., or as soon thereafter as practicable, at the cham bers of the City Coun cil of theCity of Indio, 150 Civic Ce nter Mall Indio, California 92202,Section 8. t the time and place set forth above for the hearing, any interestedperson, including all persons owning lands or registered to vote within the propo sed CFD, m ayappear and be heard.Section 9. ach City officer who is or will be responsible for the Facilities to befinanced by the CFD, if it is established, is hereby directed to study the proposed CFD and, at orbefore the time of the abov e-mentioned H earing, fi le a report with the Council, and which is tobe m ade a part of the record of the H earing, containing a brief description of the Facilities bytype which will in his or her opinion be required to adeq uately meet the needs of the CFD andhis or her estimate of the cost of providing the Facilities. The City Manager is directed toestimate the fair and reasonable cost of all incidental expenses, including the cost of planningand designing the Facilities to b financed pursuant to the Act, including the cost ofenvironmental evaluations of such facilities, all costs associated with the creation of the CFD,issuance of bonds, determ ination of the am ount of any special taxes, collection of any sp ecialtaxes, or costs otherwise incurred in order to carry out the authorized p urposes of the City withrespect to the CFD, and any other expenses incidental to the construction, completion andinspection of the autho rized work to De paid throug h the prop osed financing.Section 10. The City may accept advances of funds from any sources, includingprivate persons or private entities, and is authorized and directed to use such fu nds for anyauthorized purpose, including any cost incurred by the City in creating the Cifi). The City mayenter into an agreement to repay all, of such funds as are not expended or com mitted for anyauthorized pu rpose at the time o f the election on the levy of the Sp ecial Tax, if the propo sal tolevy such tax should fail, and to repay all of such funds adv anced if the levy of the Special Taxshall be approved by the q ualified electors of the CFD.Section 11 he City Clerk is hereby directed to pu blish a notice ("No tice") of theHearing pu rsuant to Section 6061 of the Governm ent Code in a newspaper of general circulationpub lished in the area of the propo sed CFA. Such N otice shall contain information set forth inSection 53322 of the Act. Such publication shall be com pleted at least 7 days prior to the date ofthe Hearing .Section 12. he Clerk may send a copy of the Notice by first-class mail, postageprepaid, to each registered voter and to each landowner within proposed CFD as shown on the

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last equalized assessment roll . Said m ailing shall be com pleted no t less than fifteen (15) daysprior to the date of the H earing.ection 13. Pursuant to Section 53344.1 of the Act, the Council hereby reserves toitself, in its sole discretion, the right and authority by subsequent resolution to allow any ownerof prope rty within the CFD, subject to the p rovisions of Section 53344.1 of the A ct and thoseconditions as it may impose, and any applicable prepaym ent penalties as prescribed in the bondindenture or comp arable instrum ent or docum ent, to tender to the CFD treasurer in full paymentor part paym ent of any installment of the special taxes or the interest or penalties thereon whichm ay be due or de linquent, but for which a bill has been received, any bond or other obligationsecured thereby, the bond or other obligation to be taken at par and credit to be given for theaccrued interest shown thereby com puted to th e date of tender.

Section14. The voting procedu re with respect to the establishm ent of the CFD and theimposition of the special tax shall be by hand delivered or mailed ballot election.PASSED, APPROVED and ADOPTED this 18 t h day of May, 2005 by the followingvote: AYES: Gilbert, Godfrey, Ramos W atson, Wilson, FesmireNOES: None

MELANIE FESMERE, YOR

C*TRIA ECERNANDEZ, CMC-crryCLERK

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EXHIBIT AIIKPRO VEMENT AREA DESIGNATION

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EXHIBIT B

RATE AND 11IETROD OF .APPORTIONMENT OF SPECIAL TAX

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Min AND METHOD OP ArrownorimENT OF SPECEAI TAM-49iC01111WEINITY PAC:Minn DISTFICTNO 2A04-3. '. (TERRA LAGO)crryOF II O, CALIFORNIAA Special Tax (all capitalized leans are defined in SectiOn A.,' Definitions heloWY shall be ' pplicable to' each Parcel of Taxable P roperty located within the boundaries of CO nnnunity.Paeliitie,s District No. 2004.3 (TERRA LAC30). The am ount of Special Tax to be levied in eachImprove ment A rea in each Fiscal Year, comm encing in Fiscal Year 2005-2006 on a Parcel shallbe de termined b y the City Co uncil of The City of Indio, acting in its capacity as the legislativebody of the CFD b y applying the appropriate Special Tax for Developed Property, UndevelopedProperty and Pub lic Property andicr Property Owner's Association Property that is not ExemptProp erty as set forth in Sections B., C., and D., below. All of the teal property within the CFD, ,unless exempted by law or by the p rovisions laergefin Section E., sluall be taxed for the put-poses, .-to the extent and in the manner herein. provide&

'A. toRF/241TIO74SThe terms hereinafter set firth have thtTrilleraitartiktnings::. ."Aere OrAnniagininearia the acreage of a Reu el it:indicated and* finest recent A ,sae.sisof's

-.Parcel M*or If the land area is not shown on the'Asseasoi- in; the laid area'shown on the7:2pplicable Thiel ltEep,:,.;pareel map.; condonthititti'plen;' . .or other: 'itniltr.

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"Pier tearES:the:46110tRtios 6Orriialf*Tacil ithiesAitimet 4 ipiandest . f terts, Part 1 .1 -4,..31iyisitat*12.pf ttik,tifalifornii., 5, .-Ailminisit siker .a l t a n i m a ] or r reasonably eirlinettad.tostiarti expeusie hfthe Diatiriet that are chargeable or allocablelc the applicable Imp rove:Mein Area to carry out'its duties as the adm inistrator of the CFD as allowed by the Act, which shall include witsnanlimitation, -all costs and expenses arising on of or resulting from the annual levy a n d .collection of the Special Tax, trustee ;fieseS, rebate com pliance calcubition-fees,-and 1plissues, or actual, potential or threatened lidgeSon invo lving the,CFD,: :on:tinning disclosure'undertakings of the District as imp osed by applicable laws .and remittal:1th* roixintunication'v?itit bondholders and normal administrative egienses...

"AliMiniatrator" totem au tail of the thsthat', or degigiiee :Menet teepontilile for .defermining the levy and collection of the Speeial Taxes.."Assessor's Parcel Map" m eans an official rasp of the Asseesor.of the Conxity.erf Rivergidedesignating parcels by Assessor's Farce) number.

'Assigned Speeiserie m eans the Special 7aut for each Land .Ute Categerry of Developed.Property, as determ inedins.cordinee with Section C.1.k, billow.City ofIndio : , o*]9,200C o m m u n i t y F a c i l i t i e s f i a l i i t i N o . 20 6 4 - 3 ( T a m L a g P a g e


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I ::140111dA17means alrrialx.sitertifinglihelnedatirrateurtwittihrtrre: hanandepof CM_ _:2004-3 identified oh EXHIBIT'"A" " "PD" means Com munity Facitilles.ThArict No. 20011-A (tBititat Apt?) of the ttisu'lutestablished-pursuant to the Act.Cann oil" means The City of India Oty ,Cotocill.

4rceasity't means the Comity tg*tersitie.: I 9343V4114 4upertr meanie oatParcels ni7extible:Property,-Orit .elasaified aS UnintilopaciProperty, Public. Property andior Property Critnees Ake:million Property that are aloaxemp tProperty.pursuant to the -provisiOns of Seed on E. halowt:(1) diet are inehtded infra Final Notap.,.1hat was recorded prior to January in preceding The Fiecil .Yeurizr w iieh tbe:Speoial .Texlevied and -Oka building pettnit for new eirnstr00don has teen Issued:prior Aprfillt:wececling the Fisodl Tear m1vbk4116.1 3 1 3 9 0 4 1 .147LO'beiniteeinP t 1 2 1 1 4011 /? Aggel; 42 12/144rceL 11 2 ittIt 'p :to

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'mlraProltenieUt Ares *2, Zone neant .the ipeoifie trrai itleniified 'on Ealart "B" asImprovement 'Area 2,: .Zdhe 4 1>f heTuri ) .City of Indio ...Community Pamlidepiniitrfar146.20r&3 trawnaii0) may it;2005Ps8 2


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"indetiture" mum s . . the bo nd indenture, f iscal :agentxgroem ent, irustmgreeroent resChit ionor o ther instrument isnrsuant 14 -stithich Bonds ere issue d, as -modif ied, amended xricVorsupplem ented fromitime to tm eiatid any instil lment replacingorstippluff iecting the same-441210 dt Ilse'CatigorP7LOBlis any c f tbe categories listed'i t tab les 7 , ,1 .3; 41wadt .

_ .ulidasinnue Specia l T ax":meaassi,

'Section C. which:cantle:levied in. any Fiscal Year many Parcel .. ,ulMitltlfasaily Resident ia l Property" . means any Parcel 'o f Developed t ' roperty d in t carsof a bui lding or bui ldings comprised of attai thed resiciential wi l ts avai lable for re4tal 4:40general Public, or for sale to an end user, laid may b e under com mo n manageme nt....

AolionTResidetnial PiroPerty" means al l Part:ehi of Dev4irpti t i Vrel l iei tr iatioti4permit w a s issued for any ty pe o f ncto-rissitiertialuse, "Pereeikr 'moms or parcel sho wn ' tat ma f iaineest*Is PatOci ...esVgdedparcel number val idttt the tintrti teSpecial Taxes enrol led i i thirPiMil i Yestf

G PrOperty theiges Assothil inn Ornj;ers?'. , ;:niesinS b o u l A 1 1 5 1 ,CFD, which , at the t ime the . SPechi l Tax is enrol led fot. the Fiscal:Yee* ;vehich:gi .eTax is being levied has been cerfveyed, dedicaredtn, 404tivrastaibly .ti4tlielttetl, ercreitcUnier4Ssociat itut iorc indingiutymaster -o r,

Tafin Of iiitc nOtnal- Speei t i r .bctlevy to the Assigoact.Speci iel : Tex: is the sane for al l Pareol i ci f Davaltipod:Propettviai i i t it i lndaveicpati Property,Pub lic'Property.andicrProp erty'-LOW ner's ' /40Pciat ioat PioPettYnot Exem pt Property pu rsuant to-Sect ion T.. ,; ttbeactual SpecisiTittlrii*atsore to the Maximu m Special Tax Per aureis the-smite forall.sulCh Parcels, '

Property" melon any Parcel wi th in t liebnwmo ery of . he CfD ints. .Special TeX is to rched for the Fiscal Year f irr which the Special. Tax is. heing le viexi, ii, firedfo r : r igh ts -o f -way o r any o ther pu ipese and i t owaed.kry; dedicated ithienr.inrevocal:dy differed for dedication` to the Federal 43civerosneat; the Stine :o f rel i fenti i4 otiptyt,City;or anyOther local jurisdimiaa,proridati , howaver;lhat..'huir,propetry laasoftyf Oblipitgedi t apijiiiate 'entity, and subject ktotxcatiotfvundei

City Kindle . Ittei,l0, 2005Cumm tmiTy F l i t t if iest ilsc i t itgo . 20044trerre. 5410 -Pagi.2.

Special Taxis beingieir ieth -

classified inceiding to itinse. ."Realdent ia l F lour ..Area " .rnetins. 411.4f :di's:square .foo tege Of living area o f a rinldecttialstructure, not innintling any carpo rt, -;walicenlyi. . gnige, ovithangpatio,,t i o let t lid pat io .or .simi lar area 'o r p arce l . The deterraMat irm o f Resident ia l LF loo r Area 'Shal l be :made b y.reference to the bu i lding penn it(s) fares .Ptriei 'vrttinulattrff icial clocu meO t meatirselectedby the Administrator .. Onee.incluileterminefioli .f ixed in ell future Fiscal Ye ars.Mesideri th i l P rap int r 'means 411Par-e ls . ..o f Det te lop ed2rp e r t Y. .


21/76

Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 11/2406/13/2005 09:44 603426597 ITY MANAGER OFFICEone or mots resittentatilAw.clling.units..

"Single &sniffy Prepartpmeans.4 1 1 -ieroda44tesidenthil'Prnnarty; zither ties%Residential Thopc.0.1,,for *hi& aVateei issued for .. dazzledLer snarled.residential units. ffSpeeed Tax(es) :_tmettissthe Speciataxto be is:MediI' eatii4lacitiKeia.:an aach PeriCa.OfTaxable Prop erty....

."Spatial Tax Requirreemst(6) 1 means that amount .requiret ist:4.1'Year to, ply forSpecial Tax Requirement fot improvement Area .1; Zone..A . . n r . l e , o a e , peoial TaxRequirement for Improvem ent Area 2, Zone A or Zane B: "'"Special Tax ReqUiramasit for . laaproveniestt Area .1" ineini *that ;amou nt:74611*d in 1 3 1 y ,Fiscal Year. within Improvement Are a 1 of the CFD .to pay: (I) .annutil debt serlitieoutstandin Bonds due in the .calendar yew which . comm eaces its. such 'Fiscal W enpstiodie =nits on the Bonds, including butonat limited %to, eredlt enhauCeTIMM and rebatepayments on the B ends; dm inistrasive.'llqmaes; (iV) Ain am ount .equal nywholesaled shortfall due to Special Tax delinquency in the prior:Fiscal Year; and ( v ) ? n r . l Y4MOunts required to e stablish or Sepienish .any reserve funds for the.ouistanding Bonds; ans.01 1 cmdit for Avcii O40 4 ) i t * * 4PF 'C ia l; TO Pc401Y-14 t l e ' " 1 :0ined POralt.

,4iipeelei :Tax kteqiiiiiniesit f O r tt 4.rest .2' . Meeks niount. resniiretlim. enyFiscal Year . within Improvement Aree.2-, of be :CFD'SO 111311inial de bi,4 1 1 1 0 7 i C e. C4AliOutstanding Zonis 'due calendar' year *Phich commeaces ea Fisted Yeeriperiodic , c o s t r i . : 0,en the Benda; inoluding: but n*ihtiitettin, Credit'.enhanoeinent and,rtinstei4tYloontg ', fOnds;. (iii): ;:thairl*raii*: ExPeO t*..-(Iv)?ta. 1 zmotalf*Fakr inanticipated shortfall.. due to Speciat Tax delinvency :the ,priat:$1iud:Yet and (v)*y

f l I P : Y i l l i t 8 required .to establish. or replenish any ream flit& tliASOeststicritigBonds0eas(4) a credit for lends. asitilableto ledueirie..aunnaltpecialtithe ledentare.. ; ..."Taisiblel4aPerly" thewsall Parbels in lei' Ininte4,4tmen . Area vAddh i4 e. not,PreFeid .prettier tet..Section te n4 cii.caiitififieruttiepetialTex putaieette law or Section E. 0Wow:-ra*vitaopitti rootretrm uct i p a l l Taxable P4artyndt...eigasified as Dett*oped ktoperty1,133ilic`cipecty andise *amity tivinees 24essac ia t ioh Pry party dust is not 1,,,teropt Iropeetypurniant tti the provisions of Section..

city o f in i lio - a '10;2005 ' CoornuritiEze8iti es DistrietNo. 2E044 errs X..ago)

PAGE 11/24


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A. ASSIGNMENT TO LAND USE CATEGORYEach Fiscal Year, comm encing with the 2.)115-201:16 'Fiscal Year, ell 'Parcels-of PocigeProperty within the CFD shall be categorized into the .applicable Improvem ent Ates :andolassified as either Developed Property, tridavoloped Property, Public . .Property.inarid/or:- Property -Owner's Asia:Wed= Property that is not .Pateropt Properly ,pumoantltoprovisions .Section., arid shall be subject to the levy of Special TS= in aneordanoe Withthis Rate and Method of Appo rtiOnlient as determined .pursuant to Sectionsbelow,Parcels. of DeVeloped Prepany shall & they be classified as Residential I%ropertY or NonResidential ProPmrtY A 1 " e reel of Residential Prop erty, shall bather b e ,ciassitied a Single .Family Property or M ultiferaik7 Residential ingle Family Pzciperty ?th at , betither categorized based on. the tesidential Flocs- or such Parcel .10:7)71.MU1V1 =CUL1. Davelepati4irOtitiV.The MaXiajgd: aiLlfat, Leatthjlereel pf '#itlee::',1eittitY ..krzctierlit-44 1 4"41 1 1 c a b l e :1XPrt veglint gat gelaPk gritittisli )60M SPOdi 1Will6 l i o t d b e tTable 1 2,'3,or

The llioarniiiir lifsecirg. tilt tor each Parcel af Ntaitaiwildissiik 7POOgy w it* *orarolisble Inoprovement *ea iihtElibie 'the Asti:pod Spada] Thx;:dito*.44474iiiii 2,rmit.'7 AijLL.11241:

* a x - ie taiii priat,.14 06,41140.(044-liodka '411A A A mime iiiviiii*OcAraitiiinkt Et 4 " '

City of IndioC =miry isaietNo.20043(TzerelLag6) 144wit2005'..: OmIcs.


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TABLEAssigned Special rues for Property witino&eel Zone A

Stele Faa11y Property VSingle Family PropertyIMEla a u y Property U 1.626 SF.to 1,750 SF 2,228.22Single:.f Property U 1,751 SFto 1:900 SF 146723'Single Family Property U 1;901'SFia 1.950 , S F 2,547.70SingleTiargy Property U 1,951 SF te2,100 SP 24605.98Single ructuly Property U 2,1'01 F to 2;150' SF 2,601.53Sigle Flually Property U 2,151 SFto 2,250 SP 2;1132.63Single Fratillyproperty U 4,251 SP 713 2,300 SF . , S2,90/1.19Single Family Prtgerty U 2,301 SF to 2,400 SF ', $3;059.29e Fenn P 2.401 SFto0AAF 53,10246

Leas friml.,501 SF1,501 SF to 1,625 SF ,S1,021.07S21.020.55

Single Fandly PropertySingle Family PropertyM u l t i F e t i d l y P r o E s e r t yn Resitlectial Property

01 SF so 2,510 SP 31.75262.5.51 SF to 2,600 SF 3,249252,601 SF to 2,050 SF 3;616.22Ow 2,850 SP' . . $4,056.57.320,460.00S20,460.00

DUDU .N1A.NA

On es& July 1,, comnien4ing duly .1, 2007.: fcr . tt :petite .'off fore .(5). ytO, =tit -July i,012. the Aisigned :Spatial Ta ll bras hose tone pereint.(1.i0DS:Ottheamount in effect in the p rior.Fisoil Year.

City of IndioCommit, nuclides District No. 2004-3 (Tarn Lap) N4y10,200$Page


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ADn each Say 1, ocinmesing on July 1, zwii, lErlase-Aidiefuiel(5) 'rims,7uky I, 2012, the Assigned Special Tax -sb4 be increatedior one Am ami;Q.91r39 Of the=mat ill effect ictl3 P 1 2riernacia Year.

vPnc3ee r 587 $1 7

Received 06/13/2005 09:44AM in 08:56 on tine [5] for DK09720 * Pg 14/2406 13 2005 09:44 603426597 ITY MANAGER OFFICE

TABLE 2A-19ipiled Special Taxes for Property within

aVerunillyitolke* 'DU A 14016F ' 12;5112:61Single FamilyProrrty . rse 1.4orupt31152,533r 41;7M.31DU 1,625SPlo 1;7501F . 3 1 2 ; 9 1 ,8 :91ingle Tani* ItejacmY -Single hen* harry DU . 1,751 SF- to1;900SF'1$01-SFlo 4936SP 1 . 5 . 1 1 - 5 9,3SininFaisek:Property ' DU '=g23S46linalborroperty Du 51 SF to 2,700 SF1_,9 33,37229Panay Proper Y .D1)._..1.01'.EfPtd .27150 SF 33;469A3S i a 4 1 , 1 5 P a n d l y F i n n e r t y DU Z'151 SF-to 2.250SF . S3;523-39SinglellevailyPronerty . DU 7451 SFID 2,300 SF ' S37/71.64Side Neatly iliopertY D T 3 Over 2400 SF . 154965.91320$0Cr00 .ulerFensityProperty Acre N/ANon Residential Prwarty ' Acre ' NIA 324,450;00

1-7==IIIIM DU ,1 , S 0 1 S F t o 7 , 0 0 0 SF' .S,2,411.70El--1 1111 DU 2 , 0 0 1 S F i n 2 ,5 0 0 . S F 53,162.90 ."TMU=,111111:.0 li. DU O v e r 2 , 5 0 0 S F 53.90147IM '' ' *:+..t= A c r e N / A $ 2 2 ; 3 0 4 . 0 0 N o n R e s id e n t i a l N / A S 2 2 , 3 0 4 . 0 0On each Ju ly 1, crinaneneing on July 3., 201/7, for it.;period vc (5) yeses, .,until.July 1, 20.12, the Assigned Special Tsx alla11 be irk:Teased by onegereent (1,0034) df theamount in effect in the prier ear.

PAGE 14 24

:City of Indict 'Cozienunity-PriellilicaOstriTIsio,aiwv*Li'goj R V 1f, 2005Page I


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1 1 ,33LE 4Assigned Special 7'axestor Property withinniteart Area Zona B

Simile homily Property Dt1 2,001 SF t;2,500 SF _53905.47Ste Fag* Property DU 4 501 SF to 3,000 SF 54,640.04Single. FamulyProperty DU C K F C T 3 .0 0 0 S F $4,665.31Multi. Family Property Acr N/A =304,00Nee Residential Pro 4w Acre N/A =2,304.09On each July 1, connnencing on July :. 2007, .fora period offrve.t53 years. untilJuly 1, 2012, the Assigned Special Tax shall be hi reused hy. one percent ,(h0T17/9).t.ttliCamount in effect in the prior Fiscal Year,

L Undeveloped:PropertyThe Maximum ,Special Tax ach Perm] of Lindeneloped Prop erty withht eachImprovement Arnett shovOinValileiSelcrei.

Undeveloped Property Machnum Special TeX Rate

On :mach July 1, com mencing an Tilly 1, 20117, fora *lot of .five .(5) . :years, untilJuly 1, 2012, the lefashatun Special Tax shall be increased byone percent (1:00%) of, theacimm t tffect inthe prior Fiscal Year.

2. Pdblie Property andior Property G ernees Association Propertyithat 4s not itsearlieProperty p ursuant toilie provisionsvT Section E.The Maximum Special Tax foneach. Parcel of PubDc Property arid/or _Property Ovieers

City o f I n d i oComm unity Factiit ins DiurictNa, 2004,3 antra tagto) May to, 200$ Page


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Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 16/2406 13 2005 09:44 603426597 IT Y M A N A G E R O F F I CE

Associat ion Property that is not Exempt Prop erty pursuant to tbe provis ions of Sect ion E.,within each Improvement Area shall be the applicable Undeveloped "Property Maxim innSpecial Tax rate per Acre in Table S.

PAGE 16 24

D. METHOD OF APPORTIONMENTo r T H E S lR ECIAL TAXC om m en c i n g w i th F i sca l Year 2 0 0 5 - 2 0 0 6 acd fo r each fo l low i n g P b ca1 Yea; the C o tm c i lshall levy the Special Tax On all" Taxable Property-in-each l inprovetnEht:Area -iiritilA m o u n t o f S p e c i a l T a x e s e q u a l s th e s m l i c a b l e S p e c i a l ` T a x ,Requi rementImprevemeast Area in accordance w ith the fol lowing steps:

1 . I mpr ovem en t Ar ea 1Brat: The Spec ial Tax shal l be levied oiS . cantiParttel of DiveloPeci Pro parti i att lista .106%of the applicable Assigned S pecia l The rata as ateedeitosat isfy :die S pecia l Taxlizept irctr ientfor Impnavernent Area 1, Zone A. and Zo ne B. .

.,Second If additional moneys art needed .to satisfy Ilse 'Spec ie Tax' ReqUireristate farImprovement Area 1, Zone A and Zone B, a fhe. the fort at .bas been 'com pleted, the SpecialTax ll be levied. Proportionately on tea Parcel .of 'Undeveloped' Proper ty . W ith inImproveme nt Area 1, Zone A .and Zone B at asp to 100% o f the Maximum spec ial Tax forUndeveloped Property;21131: If addit ional mo neys are needed to satsfy.t ite"Special Tax ReqUinem erit after the,Srcttwo s te ps l e a ve be e n cornPletel l iqhati tich 'Assessor0 i . .1at iel .of Develapsd PrOpertevihase Assigned Special Tax :45 . The:Satkup Special TeX 'shell .be inereaaet:Prop ott iat letelyfrom the Assigned Special :reit :up 1001:114 . cf the. S acktp "SpeCi t i ll ax .the Spe c ia l Tax Req u irement .2.. Insprovem eat Area

The Specia l Tax sha l l be le t ried on each Parce l o f Developee i l lnoper ty si:up 1 60 %of the ap pl icable As signed Sp ecial 'Tax .rate at needed to sti t isfyi l i t*adal Tat It igninetiertffor improvem ent Area 2 , Zone A and Zone $ : . S e c o n d: If a dd i ti o na l mo ne ys a re . ne e de d to Sa tisfy :the' Spac ial :Tara erit .fot:haprovetheatt Area 2, Zo n a A a ns i zo ne a , la s r l it ts f a s t = p i n t s be e u e i mt P l e t e d , t h e S p e c i a l

Tax sha l l b e l ev ie r ]; P r opor do r ta te f y en . each P ar ed o f I lodm idoped Pr o per t y W i th inImpiovement Area 2, "Zone A and Zone 13 .a t Up to 100% of the Max imum" ak :forUndeveloped Property;Third: If addit ional m one ys are needed to satisfy the Special Tax Req uirement after the f irsttwo s teps have been com pleted, then for mush Ass essor 's Parcel o f Developed Prop ertywh ose Assigned Spe cial Tax iS . theI laciorg. 4=41 Tax shal l be is icreased I topo rt iona telyf rom the Assigned Specia l Tax up ID '100% o f the Backup Sp ecia l Tax as iseeded.to sat is fy

the Special Tax Requirement_City eirindio 0, 2005Comrnunity Facilif ies DiscrictNe- 2004-3 astra.Lagp..) . age 9..


27/76

Received 06/13/2005 09:44AM in 08:56 on lineIT[5) for DK09720OFFICE

Pg 17/24CY MANAGER06/13/2005 09:44 7603426597 zvecuu t axes ievicd'spinet any

Parcel of Residential Property within son Imre:mom ent Area be increased by m ore than tenpercent (10%) p er Fiscal Year as a consequence of d elinquency nr default by tbe.owner of anyother Parcel within an hnTrrovement A rea of the CFD.lr g3ILEEESJA:1, TAXES

Each Fiscal Year, each Assessor's Parcel g Devaloped Property .classif ied 'as -ResidentialProperty shall be sub ject to a Backup Specie Tax. In each Fiscal Year,"the Backup SpecialTax rate fot Developed P roperty classified is Residential Property within a Final Map shallbe the rate p er Lot calculated according to the following formula:1.xAft L115eterma....ibiiisfe hive the.fdlowirirrneatangs:

3. = Backup Amoial 'Dix* Lotin eachfiseal YeafR = M aximinn 'Sped* Tim: rate per how for Undeveloped

Proper:4 or the applicable Fiscal TzarA = Acreage OfDairelopeti,propertyniartiffied or to be iflassified as ReSidential Property. in:atiOh Final MapL = Lets in the Finally* Which Ere clasaibed or to be .elsissified as ikesidential Property

Netwithitianding the ftiregOing; all bra.*porlionofthe Final Map(s) desFeibed4h thepreeedin.gparagricph is subsecTuardy changed ortoOdified,thon theSackUpSiOpitial Taxfot.aanhAssessor's Parcel of Developed Propetily elatitifrettisr to te.classified as tnaiciamiial.PioPerVinsuch Final Map Area that is changed or modifiectsliallbe a. rite per square footle Aiteagecalculated as follawit1. Determine the total BeolitupSpeciai Tax enticipated .to epPlyto the Chanzaci-or =tilted

Final Maps . -2. The result of paragraph I &aic shall betvided by the AcreageOf Developed Pmpertoyolabsif ad or to be classifiedas kesidential.Property vitdchis ulthiately expected to exist

in such changed or modified.Pitud Map Aisa,.ss reasonably detertninedbyihe3. The result of paragraph 2 above shall be divided b y 43,560. The result is the BaclaipSpecial Tax per square foot-of Acreage which shall be applicable to Assessor's Parcels ofDeveloped Property classified as Residential Property in such changed or m odified finalMap Area for all'rernaizti:ng Fiscal Years it which the Special. Tax may be levied:

F. Eumprioys

PAGE 17/24

C i t y o f i n d i oC o r n m t i n i t y F a c i l i t ie s D i e s ti e t il q . 2 1 1 t t 4 - 1 . ( T e t r s ( . 4 0 ) M a y 1 0 , 2 0 D 5Page 10


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The Council shall not levy Special Taxes on Public Property, Property Owner's .AssociationProperty or Golf Course Property within each Improvem ent Area or Riverside CountyAssessor Parcel Num bers 601-150-024 and 601-270-038 located within Improvem ent Area 2of the CFD. Exempt Property status will .be assigned .by, the Administrator hechronological order in which property becomes Public Property, Property Owner'sAssociation Property Or G olf Course PropFty;G. IVIANNER OF COLLECTION

'The Special Tax shat] he collected in the sauce m anner and at the sam e time as ordinary ad,valorem property taxes and shall be subject to the same penalties, the same procedure, saleand lien priority in the case of delinquency; provided, however, that the Adm inistrator m aydirectly bill the Special Tax, mr collect Special Taxes at a different tim e or in a differentmanner if necessary to m eet its financial obligations, and May covenant to foreclose -and m ayactually foreclose on P arcels ha-,7ing delinquent Sp ecial 'Taxes as perm itted by the A ct ifneoessary to meet the financial obligations of the CFO,APPEAL.Any taxpayer may file A w ritten. appeal of the Sp eoinl..Tax on .hisfher Parcel(s). vdth theAdm ioistrator, provided that the appe llant iS curt-nth his/her payments, of Special Taxes.During pendency of anappeal,. all Special TaxespreVicassly levied must be paid cavorbeforethe paym ent date established when the levy*as ppeal pecify the reasons why the appe llant claims the Sp rzial 'Tax la in error: 'The Acinlinistrator shall .theappeal, meet with the appellant k the Administrator .deems necessary, and adVise lireappellant of its determination:, If the .Administrator agrees with the appeLlant; -theAdm inistrator shall grant . a credit to el iminate or redu ce . futuie Special Taxes on theappellant's P ainal(s): Norefurtd.s Ofpreviontlypaid Special Takes shh3111 be tnitiat.

. The Ad ministrator shalt :interpret .:this Rate .and, Method of A ppOitioninent. and mak edeterm inations relative io the anim al levy .an edi*IS. 663411 of the-SpeCial :Tax. and anytaxpayer who . appeals, as herein specified.X . PAYMENT OF SPECLIILL TAX

The folloW ing definitions apply to Section PI:"Outstanding Bands" m eans all previously issued b onds issued and secured b y thelevy.ofSpecial Taxes, which will remain =stranding after the first. interest and/or principal'paym ent date following the currtnt Fiscal Year, excluding bon ds to .be redeem ed at a later'date with the proceeds of prior prrpayme nts of Maximum Special Taxes:1. repayment. in FullThe Maximu m Special Tax obligation m ay only be p repaid and petmanently satisfied by aParcel of Developed Property, anti/or Undeveloped Property for which a bu ilding permit hasbeen issued, and Pub lic Property anclior Property Owner's Association Property that is notExempt P roperty pursuant to Section E. The Maximum Special Tax obligation applicable to

City of IndioCom munity Facilities District No. 2004-3 (Trra Limo) May 10, 2005Page


29/76

Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 19/2406/13/2005 09:44 603426597 ITY MANAGER OFFICE PAGE 19/24p c w. - ke L LV piety WIC o p e C I B J .1permanent ly sa t is fied as descr ibed. here in; p rov ided that a p repayment m ay b e m ade only i fthere are no de l inquent Spec ia l Taxes w i th respect t o such . Pam ) a t the t ime e f l ImPaYlm mt -

An owner of a Parcel intending to prepay the Ivlaximum Specie) Tax ohligetion shallprov ide the Adm in is t ra tor w i th wr i t ten no t ice of in ten t to prepay , and w i th in 5 bo s iz iega daysof rece ipt o f such no t ice , the Adnt in is tra tnr sha ll not i f y such 'ow ner of the amo unt of thenon-refundable deposit determined to cover the cost to be incurred by the alp inc a l c u l a ti n g t h e p r op e r a r e ou n t o f a p r e p a y m e n t W i t h in 1 5 ' d a y s o f r e c e ip t o f s u c h T A o it 2re fundable depos i t , the Adminis t ra to r sha l l no t i fy such o wne r o f the p repayment am oun t o fsuch Parce l . Prepaym ent must be made no t less than 60 days pr ier t o any redem pt ion t inefor any Bonds to be redeemed w i th th e proceeds of such prepaid Specia l Taxes.The Prepayment Amount (defined below) sihall be calculated as sus d below(capital ized terms as def ined below): .

Bon d i te d e m p t i on A m o u n tplus Redempt ion Premium.P/111 efense:see Amount'plus dministrative Fees :and Expensesless eserve Fu nd Credi tTotal: equals r e p a y me n t Amo u n t

A s o f t h e p r o p o s i a d di c te 6 f p r e ke t n e a t t * 4 h e ls e . y i n e n t A i n a m m t ( 'd a m n e d b e l ow I S tu a l s eealauletedas ' fol lows:

1. onf i rm tha t ne S pec ia l Tex de l inquenc ies -Apply to such Parce l .1. or Part:02 tif Developed PrtiSest3, Oca t tptz te the lc laut imamSp ec ia lT loc - for theParce l . t o b e p r e p a i d . F o r P a r c e ls o f U n d a v e l op e d : P rop e r t y to b e p r op u i d i caMpur ia - ribeMaximum Special Tax . fur tha t :Parce l as ' tho ugh i t was a l ready a es iSna l441 . asDeve loped Pro per ty , based upo n the bui ld ing permit t l reet ly :been lapedfor that Pa i red.. Fa t P arce ls o f Pu bl ic . Proper t y ' and/or P roper t y O wner 's AB.00t4 t iO l tProperty to be prepa id, comPti te the lvtasci r ratreSeTadal Tax for that P24'ol-3. D iv ide t h e M u c h :m u t S p e c ia l T a t .c o m p u t e d p t i rs u a n t t e p a r ig ra p h . .2 i t Y t h e t o t a lestimated -Maximu m Sp ecia l :Taxes ba sed- on the .13evelapel .P pec ia l .Texwhich co uld ba.c i ttaped,Aess.may:ParCela wh it% have beenprepeid.. .4. Mul t iP ly lbe quet ient .nornpu ted.Pln imint to p aragraph 3 ' by the thestandin i t imt la to

com pute the MMO UIn of OMetanding Bonds to b e re f it ted and 'prepa id ( the BondAederr rpt ior r Amount . ) .5. M u l t ip l y t h e B o n d R e d e m p t i o n M p c u n t c o m p u t e d p u r s u a n t to p a r a g ra p h 4 b y t h eapp l icable . rederaption p rem ium, i f any , on the Outs tanding Bonds -t o b e redeemed( the Rst ier t to t io t t Prer rn lar t ) . . .6. C o mp u t e t h e a mo u n t -n e e de d t o p a y in te res t - on the Bond Redempt ion Asno tut t from

City of IndioCommunity Facilit ies District No.200473 (l'artataeo) May 30, 2005Page 12


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Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 20/2406 13 2005 09:44 603426597 ITY MANAGER OFFICE

the first bond interest and/or principal payment date following the current Fiscal Yearuntil the earliest redemption date far the Outstanding Bo nds.

PAGE 20/24

7. etermine the Special Taxes ;levied on the Parcel in the am en Fiscal Year whichhave not yet beenComp ute the amount the Adtteadstrator . ream:a:ably expects to derive from' thereinvestment of the Prepayinent Airaceint less the Albriinistrative Fees and Expensesfirma the data of prepayment until the redemp tion date for the Outstanding Bonds tobe redeemed with the prepaym ent . .9. Add the =omits computed patsuant paragraphs 6 and 7 and subtract the amountcomputed pu rsuant to paragraph 8 (the Defentariee A rnounr) .

10. Verify the adininistradve fees and expenses, including the cons of computation of the'prepayment, The costs to invest the prepayment proceeds, The costs of redeeming theOutstanding Bonds, and ' the costs of recording any . notices to evidence theprepayment and the redemp tion (the A dminis t ra t ive Fees and A venser) .11.. The reserve fund credit (the Reserve Fun d Credit ) sbell equal the lesser of: (a) theexpeoted red uction in the reserve requirement (as defined in the Indenture), if any,associated with the rederriptior of Outstanding Bonds as a result of the prepaym ent,or (b) the am ount derived 'by subleam ing the new reserve requirement (as defined lethe Indenture) in effeetafter the redemption of Outstand ing 'Bonds as a result of theprepaym ent from the b alance in the'ruserve faun on the prepayinent date, but in noevent shall such amount be less than zeate12: TheMximum Special Tax prepaymnt is equal to the sezniof the Arnaud:reel:imputedpursuant to p erepaph s 4, .5, 9 and '10, less. the "am aisnt CoMpilleditesstantpateleraph 11 (the "Prepaymerneb eetter).13. .Peon the Prepayment Am ount, the amounts et4npUtedpurseimi to esragraphiand 11 shall* deposited into the appropriate 'Mid as established under the Indeeeireand be used to retire Outstanding Bonesor make debt service peyments. The amountcomputed pu rsuant to paragraph 10 shell be retained by the CFA

The Prepaym ent.Amou nt may be stdiScieut to redeem either then a....85,000 MI:enem a:ofBonds. In such cases, the increment above 85,000 of'' integral nadtiple thereof will beretained in the appropriate fend established u nder the Indenture le be used with the nextprepayment of bond s or to make d ebt service payments..As a result of the paym ent of the current Fiscal Year's Special Tax levy as determined underparagraph 7 (abov e), the Adm inistrator shall remov e the current Fiscal 'Year's Special Taxlevy for such Parcel from the County tax rol ls , With respect to any P arcel that is prepaidetheBoard shall cause a suitable notice to be recorded in comp liance with the Act, to indicate theprepayment of Special Taxes and the release ref the Special Tax lien on ouch: P arcel, and theobligation of such Parcel to pay th e Special Tax shall cease.

City of Indio-Community Facilities District No. 20044.7mm Lago) idayi0, 2005Pep 13


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Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 21/2406/13/2005 09:44 603426597 ITY MANAGER OFFICEC 4- UALICliti MSamou nt of Maximum Special faxes that may be levied on Taxable Property both prior to and

after the proposed PrePsYlneht is at least 1.1 times the maxim um annual debt service on allattending Bonds,

PAGE 21/24

Tenders of Bonds in prepayme nt of Maxim/ma Special Tam .nay be accepted upon theterms and conditions established by the Board pleasant to the Act. However,. the use ofBond tenders shall only be allowed -En a cese-by=ca..e bails as specibcelly approved by theBoard.

2. repayment in PartThe Maximuni Special Tax on a Parcel of Developed Property or Undeveloped Property forwhich a building permit has been issued may be partially prepaid in increments of 52,000.The "m om of the prepaym ent shall be calculated as in Section HI; except that a partialprepaym ent shall be calculated accord= to the following formula:

PPV =PEAThese terms have the following to eaningl.PP = the partial prepayment .Pa= the Prepayment Ain otmt calculated according to. Section H.aF -the percent by which the Ovatizofthe Part61(a) is perlially prepaying ateMaximu m Sp ecial Tax. The owu er of a Parcel Wh o desires to pettali prepay the Maxi/rune *ch i], Tex shall notifythe Adm inistrator of (i) such owner's intent to pertially prepay the Maxim um Sp ecial Tax,(u) the amo unt of partial prepayment V expressed in incremeala of S2,060, and (HI) thecompany or agency tiler will braining as the escrow agent, if applicale and Within 5 days ofreceipt of such notice, the Adm inistrator shell notify such property owner of the =mut ofthe non-refundab le deposit dna:mined to carver the cost to be incurred b y the CFD incalculating the proper amount of a partial prepayment. Within 15 business days of receipt ofsuch non-refundable d eposit, the Actminismator shall notify such ow ner of .the partialRepayment am ount of such Parcel. Partial prepayment mu st be m ade not less tban 60 -daysprior to any.redemption date for any Bonds to . be redeemed With the p roceeds of suchirrepaid

SpecialTaxes.With respect to any Parcel that is partially prepaid, the Administrator shill (I) distribute thefends remitted to it according to Paragraph 13 of Section H.1, and (ii) 'indicate in the recordsof the CET) that there has been a partial prepayment of the Maximum Special Tax and that aportion of the Maximum Special Tax equal to the outstanding percentage (1.00 - F) of theremaining Maximum Special Tax shall continue to be authorized to be levied on such P arcelpursuant to Section D.

C i t y o f I n d i o ay I D , 2 0 0 5Conuineity Faciiitieanistrlot 004-3.crerre Lego) . P a g e 1 4 .


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Received 06/13/2005 09:44AM in 08:56 on line [5] for DK09720 * Pg 22/2406/13/2005 09:44 603426597 ITY MANAGER OFFICEiyac.ivivii atzat'ECIALTAX

Fo r each year tha t any Bo nds a re ou ts tanding the Sp ec ia l Tax sha l l be levied an a l l Parce lssubjec t to the .Spec ia l Tax. If any de l inqu enrSpe c ia l Taxes rem a in unco l lec ted pr ior to orafter a l l Bonds are reti red, the Specia l Tax may be levied to the extent necessary to re imburset h e C F D f o r u n c o l l e c te d S p e c i a l T a x e s a s s o c i a t e d w i t h .t h e le y y o f s u c h S p e c i a l T s u r c a ,,butmat la ter than the F iscal Year.

PAGE 22/24

City of IndioCommunity Facalities VistriotTlo. 20043 Thi Lago) . May 10 ,2005Pap 1.5


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Section. 5, t is the intent of the Council to authorize the sale of bonds in one or m oreseries, in the maxim um aggregate principal amo unt not to exceed $3 0,000,000 and $30,000,000for Improvem ent Area No. 1 and Im provem ent Area No. 2, respectively, at a maximum interestrate not in excess of 12 percent per annum or such rate not in excess of the maximum rateperm itted by law at the time the bond s are issued. The term of the bond s shall be determ inedpursuant to a resolution of the Council authorizing the issuance of the bonds, but such term shallin no event exceed 40 years or such longer term as is then permitted b y law.

Section 6, public hearing (the "Hearing") on the p roposed debt issue shall be heldon July 6, 2005 at 6:00 o'clock p.m., or as soon thereafter as practicable, at the cham bers of theCity Council of the City of Indio, 150 C ivic Center M all, Indio, California 92202.Section 7. t the Hearing at the time and place set forth above, any interestedpersons, including all persons owning land within the proposed CFD, may ap pear and be h eard atthe H earing.,Section 8. he proposition to incur bonded indebtedness in the m aximum - aggregateprincipal amou nt not to exceed $30,000,000 and $30,000,000 for Improvem ent Area No. 1 andImprovement Area No. 2, respectively, shall be submitted to the qualified electors of therespective Improvement Area. A special community facilities district election shall beconducted on Ju ly 6, 2005. The special election shall be cond ucted by han d delivered or m ailedballot election. The ballots shall be returned to th e office of the election officer no later than11:00 o'clock p.m. on July 6, 2005 .Section 9. he Clerk is hereby d irected to pub lish a copy of this resolution, whichshall serve as notice ("Notice") of the Hearing and the special bond election, pursuant to Section6061 of the Governm ent Code in a newspaper of general circulation in the proposed CFD .Section LO. The Clerk may send a copy of the Notice of the Hearing by first-classmail, postage prepaid, to each registered voter and to each landowner within the p roposed CFDas shown on the last equalized assessm ent roll.PASSED, APPROVED and ADOPTED this 18th day of May, 2005 by the followingvote: AYES: Gilbert, Godfrey, Ramos Watson, Wilson, FesmireNOES: None

MELANIE FESMIRE, MAYORATTEST:

HERNANDEZ, CIVICCITY CLERK

2


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C r THIA HERNANDEZ, CMCCITY CLERK, CMC

RESOLUTION NO. 9024RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,CALIFORNIA, APPROVING JOINT COMMUNITY FACILITIESAGREEMENTSWHEREAS, the City Council (the "Council") of the City of Indio (the "City") has

heretofore adopted Resolution No. 8956 ("Resolution of Intention") stating its intention to formCity of Indio Community Facilities District No. 2004-3 (Terra Lago) (the "CFD") pursuant to theMello-Roos Community Facilities Act of 1982, as amended (the "Act"); and

WHEREAS, Section 53316.2 of the Act states that a community facilities district mayfinance facilities to be owned or operated by an entity other than the agency that created thedistrict only pursuant to a joint community facilities agreement or a joint exercise of powersagreement; and

WHEREAS, certain facilities and capital fees to be financed by the CFD include thosefacilities and capital fees to be owned or operated by the Valley Sanitary District and ImperialIrrigation District.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOESHEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. he City Council hereby approves the Joint Community FacilitiesAgreements in substantially the forms presented to the City Council at this meeting. The Mayor,the City Manager and the Finance Director are hereby authorized to execute the JointCommunity Facilities Agreements with such revisions, amendments and completions as shall beapproved by the officer executing the same, such approval to be conclusively evidenced by theexecution and delivery thereof.

Section 2. his Resolution shall take effect from and after the date of its passage andadoption.PASSED, APPROVED and ADOPTED this 20th day of July, 2005 by the following

vote:AYES: Gilbert, Godfrey, Ramos Watson, Wilson, FesmireNOES: None

MELANIE FESMIRE, MAYORATTEST:

1


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RESOLUTION NO. 9025

RESOLUTION OF FORMATION OF TILE CITY COUNCIL OF THE CITY OF INDIODETERMINING THE VALIDITY OF PRIOR PROCEEDINGS AND ESTABLISHINGCITY OF INDIO COMMUNITY FACILITIES DISTRICT NO. 2004-3 (TERRA LAGO)

WHEREAS, the City Council (the Council ) of the City of Indio (the City ) hasheretofore adopted Resolution No. 8956 ("Resolution of Intention") stating its intention to formCity of Indio Community Facilities District No. 2004-3 (Terra Lago) (the "CFD") pursuant to theMello-Roos Com mu nity Facilities Act of 1982, as ame nded (the "Act"), and d esignating po rtionsof the CFD as Imp rovem ent Area No. 1 and Improve ment Area No. 2; andWHEREAS, a copy of the Resolution of Intention is on file with the City Clerk andincorporated herein by reference; andW HER EAS, pursuant to the A ct and in accordance with appl icable laws, this Councilheld a public hearing on the formation of the CFD, the proposed rate and method of

apportionment of the special taxes (the Special Taxes ) and the incurring of bondedindebtedness by the CFD for Improvem ent Area No. 1 and Improvem ent Area No. 2; andW HER EAS, at said hearing all persons not exempt from the Special Tax desiring to b eheard on al l matters pertaining to the form ation of the CFD, the proposed rate and method ofapportionment of the Sp ecial Taxes and the incurring of b onded indebtedness by the CFD forImprovem ent Area No. 1 and Imp rovement A rea No. 2 were heard and a full and fair hearingwas held; andW HER EAS, at said hearing evidence was presented to the Council on said matters beforeit, and this Council at the conclusion of said hearing is fully advised in the premises.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOESHEREB Y RESOLVE, DETERMINE AND ORDER AS FOLLOWS:Section 1. ursuant to Section 53325.1(b) of the G overnm ent Code, the Council f indsand determines that the proceedings prior hereto were valid and in conformity with therequirem ents of the Act.Section 2. comm unity facilities district to be designated "City of Indio Com mu nityFacilities District No. 2004-3 (Terra Lag o)" is hereb y established p ursuant to the A ct.Section 3. he description and map of the boundaries of the CFD on file in the

Clerk's office and as described in the Resolution of Intention and incorporated herein byreference, as amended to exclude a portion thereof as identified at the public hearing, shall be theboundaries of the CFD. The m ap of the proposed bou ndaries of the CFD has been recorded inthe Office of the County Recorder of Riverside County, California (Book 62 of Maps ofAssessm ent and Com mu nity Facilit ies District at page 88 and as Instrume nt No. 2005-0437065).45625228.1


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Section 4. he facilities proposed to be financed by each improvement area of theCFD are pu blic infrastructure facilities and othe r govern m ental facilities with an estimated usefullife of five years or longer, which the CFD is authorized by law to construct, own, operate orfinance and that are necessary to meet increased demands placed upon the City as a result ofdevelopment or rehabilitation occurring within the proposed CFD, including but not limited tosite p reparation, construction, purchase, m odification, expansion, improv em ent or rehabilitationof roadway im provem ents, dry uti li t ies, storm drain improvem ents, landscape improvem ents,traffic control devices, fire station, and water and sewer facilities including the acquisition ofcapacity in the City's water system and sewer capacity in the Valley Sanitation District sewersystem, and related costs including designs, inspections, professional fees, annexation fees,connection fees and acquisition costs (the Facilities ). Such Facilities need not be physicallylocated within the CFD.

Section 5. xcept where funds are otherwise available, it is the intention of theCoun cil to levy annually in accordance with pro cedu res contained in the Act a special tax (the"Special Tax") sufficient to pay for the costs of financing the acquisition and/or construction ofthe Facilities, including the principal of and interest on the bonds proposed to be issued tofinance the Facilities and other periodic costs, the establishment and replenishment of reservefunds, the rem arketing, credit enhancem ent and liquidity fees, the costs of adm inistering the levyand collection of the Special Tax and all other costs of the levy of the Special Tax and issuanceof the bond s, including any foreclosure proceedings, architectural, engineering, inspection, legal,fiscal, and financial consultant fees, discount fees, interest on bonds due and payable prior to theexpiration 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 b onds, including, but not l imited to, fees for bondcounsel, disclosure counsel, financing consultants and printing costs, and all other administrativecosts of the tax levy and bond issue. The Special Tax will be secured by recordation of acontinuing lien against all non-exempt real property in the CFD. In the first year in which such aSpecial Tax is levied, the levy shall include a sum sufficient to repay to th e City all amou nts, ifany, transferred to the CFD pursuant to Section 53314 of the Act and interest thereon. Theschedule of the rate and m ethod o f apportionm ent and m anner of collection of the Special Tax isdescribed in detail in Exhibit A attached hereto and by this reference incorporated herein. TheSpecial Tax is based upon th e cost of financing the Facilities in the CFD, the dem and that eachparcel will place on the Facilities and the b enefit (direct and/or indirect) received by each parcelfrom the Facilities.

The Special Tax is apportioned to each parcel on the foregoing b asis pursuant to Section53325.3 of the Act. In the ev ent that a portion of the property within an impro vem ent area of theCFD shall becom e for any reason exem pt, wholly or partially, from th e levy of the Special Tax,the Council shall, on behalf of the CFD, increase the levy to the extent necessary upon theremaining property within the same imp rovem ent area of the CFD which is not del inquent orexempt in order to yield the required payments, subject to the maximum tax. Under nocircumstances, however, shall the Special Tax levied against any parcel used for privateresidential purposes be increased as a consequence o f delinquency or d efault by the ow ner of anyother parcel or parcels within the same im provem ent area of the CFD by mo re than 10 percent.Furthermore, the m aximum special tax authorized to be levied against any parcel used for privateresidential purposes shall not be increased over tim e in excess of 2 p ercent per year.45625228.1


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Section 6. pon recordation of a Notice of Special Tax Lien pursuant to Section3114.5 of the Streets and High ways Code, a continuing l ien to secure each levy of the SpecialTax shall attach to all nonexemp t real property in the CFD , and this lien shall continue in forceand effect until the Special Tax obligation is prepaid o r otherwise permanently satisfied and thel ien canceled in accordance w ith law or until collection of the Special Tax by the CFD ceases.

Section 7. he prop osed Special Tax to be levied in each impro vem ent area of theCFD has not been p recluded b y protests by owners of one-half or mo re of the land in the territoryincluded in the same improvement area of the CFD pursuant to Government Code Section53324.

Section 8. ursuant to and in compliance with the p rovisions of Governm ent CodeSection 50075.1, the Council hereby establishes the following accountability m easures pertainingto the levy by the C FD of the Special Tax:A. Such Special Tax shall be levied for the specific purposes set forth herein.B. The pro ceeds of the levy of such Sp ecial Tax shall be app lied only to the specificpurp oses set forth herein.C. The CFD shall establish an account or accounts into which the proceed s of suchSpecial Tax shall be dep osited.D. The City Man ager, or his or here designee, acting for and on b ehalf of the CFD,shall annually file a report with the Council as required pursuan t to Governm ent Code Section50075.3.Section 9. he City Manager, or his designee, is designated to be responsible for

preparing or causing to be prepared annually a current roll of Special Tax levy obligations byassessor's parcel number and for estimating future Special Tax levies pursuant to Section53340.1 of the Government Code.Section 10. he vo ting procedure with respect to the im position of the Special Tax,incurring bonded indebtedness and establ ishing an approp riations l imit with respect to eachimprovem ent area of the CFD shall be by h and delivered or m ailed b allot election.Section 11. he City Clerk is directed to certify and attest to this Resolution and totake any and all necessary acts to call, hold, canvass and certify an election or elections on the

incurring bonded indebtedness, the levy of the Special Tax, and the establishment of theappropriation lim it.

45625228.1


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PASSED, APPROVED and ADOPTED this 20th day of July, 2005 by the followingvote:AYES: G ilbert, God frey, Ramos W atson, W ilson, FesmireNOES: None

MELA NIE FESMIRE, MA YOR

ATTEST:

THIA HERNANDEZCITY CLERK, CMC

45625228.1


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RESOLUTION NO. 9026RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO TO INCURBONDED INDEBTEDNESS IN THE AMOUNTS NOT TO EXCEED $30,000,000 AND$30,000,000 WITHIN IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO.2, RESPECTIVELY, OF THE CITY OF INDIO COMMUNITY FACILITIES DISTRICTNO. 2004-3 (TERRA LAGO) AND CALLING A SPECIAL ELECTION

WHEREAS, the City Council (the "Council") of the City of Indio (the "City") hasheretofore adopted Resolution No. 9023 (the "Resolution of Formation"), which formed the Cityof Indio Community Facilities District No. 2004-3 (Terra Lago) (the "CFD"), pursuant to theMello-Roos Community Facilities Act of 1982, as amended, (the "Act"), to finance the purchase,construction, expansion or rehabilitation of certain real and other tangible property with anestimated useful life of five years or longer, including public infrastructure facilities and othergovernmental facilities, which the City is authorized by law to construct, own or operate (the"Facilities"); and

WHEREAS, a copy of the Resolution of Formation is on file with the City Clerk andincorporated herein by reference; and

WHEREAS, the Council has heretofore designated portions of the CFD as ImprovementArea No. 1 and Improvement Area No. 2 (each an "Improvement Area," and collectively, the"Improvement Areas"); and

WHEREAS, in order to finance the Facilities it is necessary to incur bonded indebtednessin the amounts not to exceed $30,000,000 and $30,000,000 for Improvement Area No. 1 andImprovement Area No. 2, respectively, the repayment of which is to be secured by special taxeslevied in accordance with Section 53340 et seq. of the Act on certain properties within therespective Improvement Areas.


Section 1. he above recitals are true and correct.Section 2. t is necessary to incur bonded indebtedness in amounts not to exceed

$30,000,000 and $30,000,000 for Improvement Area No. 1 and Improvement Area No. 2,respectively, to finance the costs of the Facilities for the respective Improvement Areas.

Section 3. he indebtedness will be incurred for the purpose of financing the costs ofacquiring the Facilities, the financing of the costs associated with the issuance of the bonds andall other costs necessary to finance the Facilities which are permitted to be financed pursuant tothe A ct.

Section 4. ach Improvement Area will pay for the bonded indebtedness for suchImprovement Area.


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Section 5. he bo nds shall be issued in one or m ore series at a maximu m interest ratenot to exceed 12 percent per annum o r such rate not in excess of the m aximum rate permitted bylaw at the tim e the bo nds are issued , and payable annually or semiannually as determined b y theCouncil. The term of the bonds shall be determined pursuant to a resolution of the Councilauthorizing the issuance of the bo nds, but such term shal l in no event exceed 40 y ears or suchlonger term as is then perm itted by law.

Section 6. ursuant 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 theGovernment Code, the Council hereby establishes the following accountability measurespertaining to any bonded indebtedness incurred by or on behalf of the City:

(a) Such bonded indebtedness shall be incurred for the specific purposes set forth inSection 3 above.(b) The p roceeds of any such b onded indebtedness shal l be app l ied only to the specif ic

purpo ses identified in Section 3 abo ve.(c) The docu ment or docum ents establishing the terms and conditions for the issuance ofany such bo nded indebtedness shall provide for the creation of an account or accountsinto which the proceeds of such bonded indebtedness shall be dep osited.(d) The City M anager, or his or her designee, acting for and on beh alf of the City, shall

annually file a report with the Council as required by Government Code Section53411.Section 7. ursuant to Government Code Section 53353.5, the Council herebydetermines to subm it to the qualified electors of each Improve me nt Area a com bined prop osition

(the Proposition ) to: (1) levy special taxes on property within each Improvement Area inaccordance with the applicable rate and meth od of app ortionment of special tax specified in theResolution of Formation; (2) incur bonded indebtedness in the amounts not to exceed$30,000,000 or $30,000,000; and (3) establish an app ropriations limit as defined by su bd ivision(h) of Section 8 of Article XIIIB of the California Constitution, for each Improvement Area.Said appropriations limit shall equal the maxim um amou nt of bonded indebtedness authorized tobe incurred for the respective Improvement Area. The form of the Proposition is attached asExhibit "A."

Section 8. special election is hereby called for each Improvement Area on thePropo sition set forth in Section 7 ab ove.Section 9. he time for no tice having been waived b y the qualified electors, the dateof the special election for each Improvem ent Area on the P roposition shall be on the 20th day ofJuly, 2005. There being no registered voters residing within the territory of the C FD at the timeof the p rotest hearing and ninety (90) days p rior thereto, and the requirem ents of Section 53326

of the Government Code having been waived by the landowners, the ballots for the specialelection shall be hand delivered to the landowners within the CFD. The voter ballots shall bereturned to the City Clerk at 100 Civic Cen ter Mall, Indio, California 92201, no later than 11:00


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THIA HERNANDEZ, CMCCITY CLERK

o'clock p.m. on July 20, 2005. However, the election may be closed within the concurrence ofthe City Clerk, as s oon as the b allot is returned.Section 10. Notice of said election and written argument for or against the measurehave been waived by the landowners.Section 11. ach Improvement A rea shall constitute a s ingle election precinct for thepurpose of holding s aid special election.Section 12. he Council hereby directs that the special election be conducted by theCity Clerk, as the elections official.Section 13. his R esolu tion shall take effect from and after the date of its pas sage andadoption.PASSED, APPRO VED and ADOPTED this 20th day of July, 2005 by the followingvote:AYES: G ilbert, G odfrey, Ramos Watson, W ilson, FesmireNOES: None

MELAN IE FESMIRE, MA YORATTEST:


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Dated: July 20, 2005 y: p IvCity Clerk of the City of Indio

CONCURRENCE ON HOLDING SPECIAL ELECTION LESS THAN 125 DAYSFOLLOWING THE ADOPTION OF RESOLUTION OF FORMATION

As the elections official of the special election (the "Election") called for byResolution No. 9026 (Resolution Calling a Special Election), I hereby concur on holding theElection less than 125 days following the adoption of Resolution No. 9025 (Resolution ofFormation).

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RESOLUTION NO. 9027RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA,CANVASSING THE RESULTS OF THE ELECTION HELD WITHIN IMPROVEMENTAREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE CITY OF INDIOCOMMUNITY FACILITIES DISTRICT NO. 2004-3 (TERRA LAGO)

WHEREAS, the City Council (the "Council") of the City of Indio (the "City") haspreviously conducted proceedings pertaining to the formation of the City of Indio CommunityFacilities District No. 2004-3 (Terra Lago) (the "CFD"), the authorization of indebtedness in theamounts not to exceed $30,000,000 and $30,000,000 within Improvement Area No. 1 andImprovement Area No. 2, respectively, of the CFD, the rate and method of apportionment for thelevy and collection of special taxes (the "Special Tax") to pay the principal and interest on bondsissued or other debt, and the establishment of an appropriations limit, and the calling of anelection in regard to the foregoing; and

WHEREAS, on July 20, 2005, an election was held within Improvement Area No. 1 andImprovement Area No. 2 of the CFD relative to the authorization of not to exceed $30,000,000and $30,000,000 of indebtedness within Improvement Area No. 1 and Improvement Area No. 2,respectively, of the CFD, the rate and method of apportionment of the Special Tax, and theestablishment of an appropriations limit; and

WHEREAS, at such election the proposal for incurring the bonded indebtedness, the rateand method of apportionment and manner of collection of the Special Tax and establishing anappropriations limit for each Improvement Area No. 1 and Improvement Area No. 2 of the CFDwas approved by the requisite 2/3 of the votes cast by qualified electors of Improvement AreaNo. 1 or Improvement Area No. 2 of the CFD, as applicable.


Section 1. It is hereby determined that the election conducted within each ImprovementArea No. 1 and Improvement Are No. 2 of the CFD was duly and validly conducted.

Section 2. The Council, acting as the legislative body of the CFD, is authorized to levythe Special Tax on behalf of the CFD, as specified in Ordinance No. 1441, (the "Resolution ofFormation") adopted by the Council on July 20, 2005.

Section 3. The Council is authorized to incur indebtedness on behalf of the CFD forImprovement Area No. 1 and Improvement Area No. 2 of the CFD, in the maximum amounts of$30,000,000 and $30,000,000, respectively.

Section 4. The City is authorized to establish an appropriations limit for ImprovementArea No. 1 and Improvement Area No. 2 of the CFD.


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HERNANDEZ , CMCCUT CLERK

Section 5. The City Clerk is hereby directed and authorized to record notice of thespecial tax of the CFD by recording a Notice of Special Tax Lien of the CFD pursuant toSection 3117.5 of the California Streets and Highw ays Cod e.PASSED, APPROV ED and ADOPTED this 20th day of July, 2005 by the following

vote:AYES: G ilbert, God frey, Ramos W atson, W ilson, FesmireNOES: None

FESMIRE, MAYORATTEST:


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8


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DOC ti 2005-060306407/28/2005C o n f o r m e d C o p y

RECORDING REQUESTED BYAND WHEN RECORDED RETURN TO:City of Indio100 Civic Center MallIndio, California 92201Attention: Cynthia Hernandez

Has not been compared with originalL a r r y W W a r dCounty o RiversideAssessor, County Clerk Recorder

NOTICE OF SPECIAL TAX LIEN

Pursuant to the requirements of Section 3114.5 of the Streets and Highways Code andSection 53328.3 of the Government Code, the undersigned clerk of the legislative body of theCity of Indio (the "City"), State of California, hereby gives notice that a lien to secure paymentof special taxes is hereby imposed by the City Council of the City. The special taxes secured bythis lien are authorized to be levied for the purpose of financing public infrastructure facilitiesand other governmental facilities with an estimated useful like of five years or longer including,but not limited to, streetscape, landscape, traffic controls, storm drain, water and sewer facilities,dry utilities, other City fees and facilities, other Valley Sanitary District fees and facilities, otherImperial Irrigation District fees and facilities, and related costs including designs, inspections,professional fees, connection fees and acquisition costs, and for the purpose of paying principaland interest on bonds issued with respect to each improvement area.

The special taxes are authorized to be levied within the improvement areas of the City ofIndio Community Facilities District No. 2004-3 (Terra Lago) (the "District") which has nowbeen officially formed and the lien of the special taxes are a continuing lien which shall secureeach annual levy of the special taxes and which shall continue in force and effect until the specialtaxes cease to be levied and a notice of cessation of special taxes is recorded in accordance withSection 53330.5 of the Government Code.

The rate and method of apportionment, and manner of collection of authorized specialtax, for each improvement area is as set forth in Exhibit "A" attached hereto and hereby made apart hereof. Conditions under which the obligation to pay the special taxes may be prepaid andpermanently satisfied and the lien of the special taxes canceled are as set forth in Exhibit "A"attached hereto.

Notice is further given that upon the recording of this notice in the office of the countyrecorder, the obligation to pay the special tax levies shall become a lien upon all nonexempt realproperty within the respective improvement areas of the District in accor