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Section 3 Amendment of Rate and Method The reference to the "Los Angeles- Riverside-Orange County" Consumer Price Index m Section C of the Rate and Method is hereby replaced with the "Riverside-San Bernardino-Ontario Consumer Price Index" No othei portion of the Rate and Method shall be amended Section 4 Intention The City Council declares its intention to conduct proceedings pursuant to said Article 3 5 for the annexation to the Community Facilities District of the territory described in Exhibit "A" attached hereto The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District Section 5 Description of Territory Proposed To Be Annexed. Annexation Map The temtory which is included in the Community Facilities District is described on the map of the Community Facilities District recorded on May 18, 2004 in Book 76 of Maps of Assessment and Community Facilities Districts, page 94, and as Instrument No 2004-0347327 in the official records of the County of San Bernardino The territory proposed to be annexed to the Community Facilities District is described in Exhibit "A" attached hereto and by this reference made a part hereof Such territory is also shown and described on the map thereof entitled "Annexation Map No 22, Community Facilities District No 2004-1 of the City of Redlands, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") Section 6 Types of Services, Incidental Expenses, Plan for Providing Services The services to be provided and financed by the Community Facilities District aie the maintenance of parkways including but not limited to, the maintenance of street trees, and Iandscape within and in the area of the Property and the Community Facilities District The Community Facilities District shall also finance costs associated with the determination of the amount of and the levy and collection of special taxes which are levied to provide such services and costs otherwise incurred in order to carry out its authorized purposes The services described above shall be provided, as needed, throughout the Community Facilities District and the territory proposed to be annexed thereto for the benefit of all owners of property and residents of the Community Facilities District and the territory proposed to be annexed thereto All owners of taxable parcels of property within the Community Facilities District and the temtory proposed to be annexed thereto shall pay special taxes at the same rate to finance the annual cost of providing such services The services to be provided and financed by the Community Facilities District, as previously described, are necessary to meet increased demands placed upon the City as a result of development occurring within the Community Facilities District and the territory proposed to be annexed thereto Section 7 Special Taxes Except where funds are otherwise available, special taxes sufficient to pay the costs of the services described in Section 4 above and the annual administrative expenses of the City and the Community Facilities District in determining, apportioning, levying and collecting such special taxes, shall be annually levied within the territory proposed to be annexed to the Community Facilities District Pursuant to Section 53340 of the California Government Code, the special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem 17942.00056\32776858 1 -2-