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ORIGINAL <br />06/02/03 <br />2. The specific rate and amount of the special tax to be collected to pay for <br />costs and expenses for Fiscal Year 2003 -2004 for the District is hereby determined <br />and established as set forth in Exhibit A, attached hereto and incorporated by <br />reference. <br />3. The rate determined and set forth above does not exceed the amount as <br />previously authorized by the Ordinance and is not in excess of that amount previously <br />approved by the qualified electors of the District, and is in accordance with Proposition <br />218, Section XIIID of the California State Constitution. <br />4. That the proceeds of the special tax shall be used to pay, in whole or in <br />part, the costs of the following, in the following order of priority: <br />(a) Payment of principal and interest on any outstanding authorized <br />bonded indebtedness; <br />(b) Necessary replenishment or expenditure of bond reserve funds, <br />other reserve funds or accumulation of funds for future payments including any <br />amount required by Federal Law to be rebated to the United States on the same <br />debt; <br />(c) Payment of costs and expenses of authorized public facilities; <br />(d) Repayment of advances and loans, if appropriate; and <br />(e) Payment of District administrative costs. <br />The proceeds of the special taxes shall be used as set forth above, and shall not <br />be used for any other purpose. <br />5. The special tax shall be collected in the same manner as ordinary ad <br />valorem property taxes are collected, and shall be subject to the same penalties and <br />F:Atty /Reso /Reso.1396 2 14529 <br />052003 <br />