Agenda packet — Chino City Council, March 3, 2026 (part 1 of 2)

Those persons wishing to speak on any item included on the agenda, or on any matter within the subject matter jurisdiction of the City Council, are invited fill out and submit to the City Clerk a “Request to Speak” form (name and address optional) which is available at the entrance to the Council Chambers. Additionally, members of the public may submit electronic public comments to [email protected] no later than 4:00 p.m. on the day of the meeting. In your email, please include the meeting date, agenda item you are commenting on, and your comment. All comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record for the meeting specified in email received.

If you require a reasonable accommodation to participate in this meeting per your rights under the Americans with Disabilities Act or for any other reason, please contact the City Clerk ’s Office (909) 334-3306, at least 48 hours prior to the advertised starting time of the meeting.

Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available in the City Clerk ’s Office during normal business hours at City Hall located at 13220 Central Avenue, Chino. In addition, such documents will be posted on the City’s website at www.cityofchino.org.

CHINO CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

CITY HALL COUNCIL CHAMBERS
13220 CENTRAL AVENUE
CHINO, CA 91710
TUESDAY, MARCH 3, 2026

REGULAR MEETING
AGENDA
CLOSED SESSION – 5:00 PM
OPEN SESSION – 6:00 PM
_________________________________________________________________________________

ROLL CALL
Mayor Eunice M. Ulloa, Mayor Pro Tem Curtis Burton, Council Member Karen C. Comstock, Council Member Christopher Flores, Council Member Marc Lucio.

CLOSED SESSION PUBLIC COMMENTS
This is the time and place for the general public to address the City Council about the closed session items. Ordinance No. 97-08 (Chino Municipal Code Section 2.04.090) limits speakers to no more than five (5) minutes in which to address the Council, except as provided under Government Code 54954.3(b)(2).

CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Paragraph (2) of Subdivision (d) of Government Code Section 54956.9. Number of Cases: One Case

2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Government Code 54956.8
Property: 4400 Philadelphia Street, Space 10, Chino, CA 91710 Agency Negotiator: Linda Reich, City Manager or her designee 1 CHINO CITY COUNCIL
MARCH 3, 2026 2
Negotiating Parties: Lamplighter Chino, LLC
Under Negotiation: Price and Terms of Potential Sale of Property Interest

FLAG SALUTE

CEREMONIALS
Proclamations
National Nutrition Month - Proclaim March 2026, as National Nutrition Month implemented by the Academy of Nutrition and Dietetics.

Presentations
Mayor’s Home Beautification Award - Award of Mayor’s Home Beautification Award for March 2026.

REPORT OUT OF CLOSED SESSION

AGENDA ADDITIONS/REVISIONS

PUBLIC ANNOUNCEMENTS
This is the time and place for the Mayor to inform the public of all upcoming events and past occurrences of communitywide interest and concern.

PUBLIC COMMENTS
This is the time and place for the general public to address the City Council about subjects that do not appear elsewhere on the agenda. Due to Council policy and Brown Act requirements, action will not be taken on any issues not on the Agenda. Ordinance No. 97-08 (Chino Municipal Code Section

2.04.090) limits speakers to no more than five (5) minutes in which to address Council, except as provided under Government Code 54954.3(b)(2). If more than three (3) persons seek to address the same agenda item or the same subject matter, the Mayor shall establish a maximum period of time not to exceed thirty (30) minutes.

CONSENT CALENDAR
At this time, members of the public may present testimony as to why an item should be removed from the Consent Calendar for separate discussion. Unless a member of the public or City Council requests that an item be removed from the Consent Calendar, all items will be acted upon as a whole and by one vote. Items placed on the Consent Calendar represent routine expenditures and/or actions that support ongoing City operations.

1. Warrants. Approve expenses as audited and within budget for warrants 7774196 to 7774457, and Electronic Fund Transfers 525860E to 525976E, totaling $5,294,471.29.

2. Minutes. Regular Meeting Minutes for February 17, 2026 (All Members Present).

3. Elected City Officials’ Report Regarding Travel, Training, and Meetings. Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.

4. Notice of Completion for the Citywide Signage Project MS221 with Myers & Sons Hi -Way Safety, Inc. Accept Project MS221 with Myers & Sons Hi -Way Safety, Inc., Contract No. 2022- 227, as complete; authorize the Public Works Director to file the Notice of Completion. 2 CHINO CITY COUNCIL
MARCH 3, 2026 3

PUBLIC HEARING
Prior to the vote of the City Council, any member of the audience will have the opportunity to address Council on any items listed under Public Hearings. Council requests, but it is not required, that you state your name and address prior to making any remarks.

5. Formation of Community Facilities District 2026 -1 The Meadows. Conduct a Public Hearing regarding the Formation of Community Facilities District 2026-1.

Staff Report By: Kim Sao, Director of Finance
RECOMMENDATION: 1) Conduct a Public Hearing regarding the formation of Community Facilities District 2026 -1 (The Meadows) of the City of Chino (CFD No. 2026 -1) and Improvement Area Nos. 1, 2 and 3 therein (the Improvement Areas); 2) accept tax consultant’s report; 3) adopt Resolution No. 2026 -014 establishing CFD No. 2026 -1 and the Improvement Areas, authorizing the levy of special taxes and calling an election within each Improvement Area; 4) adopt Resolution No. 2026 -015, determining the necessity to incur bonded indebtedness for CFD No. 2026 -1 and each Improvement Area therein; 5) conduct a special election of the property owners within CFD No. 2026 -1 and each Improvement Area therein; 6) adopt Resolution No. 2026-016, declaring results of the special election and directing recording of a Notice of Special Tax Lien on taxable property within CFD No. 2026 -1 and each Improvement Area therein; 7) approve the introduction of Ordinance No. 2026 -002, authorizing the levy of a special tax within CFD No. 2026-1 and each Improvement Area therein, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City.

ORDINANCE NO. 2026-002 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS) OF THE CITY OF CHINO

AUTHORIZING THE LEVY OF SPECIAL TAXES WITHIN THE COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA NOS. 1 THROUGH 3 THEREIN

NEW BUSINESS

6. Accept the Safe Streets and Roads for All (SS4A) Grant Award and Establish a New Capital Improvement Program (CIP) Budget. Adopt Resolution No. 2026 -017 to accept the SSFA Grand Funding; establish grant number G7265; establish a new CIP project, MS266; appropriate $500,000 to MS266; and authorize City Manager or their designee to execute all documents.

Staff Report By: Dennis Ralls, City Traffic Engineer
RECOMMENDATION: 1) Adopt Resolution No. 2026 -017, accept the Safe Streets and Roads for All Grant Funding from the U.S. Department of Transportation Federal Highway Administration (FHWA) in the amount of $400,000 for Fiscal Year 2025 -26; 2) establish grant number G7265 Safe Streets and Roads for All and appropriate $400,000 to the Transportation Fund (320), with a corresponding increase to the grant revenue; 3) establish project number MS266 - Chino Comprehensive Safety Action Plan and appropriate $100,000 of the available local Measure I Fund 322, for the local match; and 4) authorize the City Manager or their designee to execute all related documents on behalf of the City of Chino.

7. Purchase Order Approval of additional Police Department Handheld and Vehicle Radios with Motorola Solutions for Projects NC221 and NC222. Approve the purchase of additional Handheld and Vehicle Radios for the PD Handheld Radio Replacement Project NC221 and PD Vehicle Radio Replacement Project NC222 in the amount of $199,203.75 with Motorola Solutions, Inc.
3 CHINO CITY COUNCIL
MARCH 3, 2026 4
Staff Report By: Mussette Ayala, Senior Management Analyst RECOMMENDATION: 1) Approve a Purchase Order to Motorola Solutions, Inc., for the purchase of additional handheld and vehicle radios, in the amount of $199,203.75; 2) appropriate $199,203.75 from the Equipment Management Fund 660, with an increase of $126,332.95 to the PD Handheld Radio Replacement Project NC221 for an updated project budget of $1,128,996.52, and an increase of $72,870.380 to the PD Vehicle Radio Replacement Project NC222 for an updated project budget of $891,343.45; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.

8. Establishment of a Nonprofit Community Foundation. Adopt Resolution 2026 -018 approving establishment of a Nonprofit Community Foundation for the purpose of accepting and using funds donated to the City for community purposes.

Staff Report By: Jackie Melendez, Assistant City Manager RECOMMENDATION: Approve (1) adoption of Resolution No. 2026-018 approving the establishment of a nonprofit Community Foundation for the purpose of accepting and using funds donated to the City for community purposes; (2) authorize the City Manager to work with the City Attorney's Office to prepare articles of incorporation and all necessary documents to establish the nonprofit; (3) authorize the City Manager to designate the members to serve on the Board of the Foundation; (4) approve the recommended name of the nonprofit; and (5) require annual reports to be presented to the City Council on the Foundation’s activities.

MAYOR AND COUNCIL REPORTS
This is the time and place for the Mayor and Council Members to report on prescheduled Council Committee Assignment Meetings that were held since the last Regular Council Meeting, and any other items of interest. Upon request by an individual Council Member, the City Council may choose to take action on any of the subject matters listed below.

Mayor Ulloa
Mayor Pro Tem Burton

9. Community Support Fund - Mayor Pro Tem Burton. Approve community support fund contribution to Chino American Little League, Chino National Little League, Chino Girls Fastpitch, Chino Kiwanis Club (Corn Feed Run).

Staff Report By: Mayor Pro Tem Burton
RECOMMENDATION: Approve community support fund contributions to: Chino American Little League ($250), Chino National Little League ($250), Chino Girls Fastpitch ($250), Chino Kiwanis Club (Corn Feed Run) ($250).

Council Member Comstock
Council Member Flores

10. Community Support Fund - Council Member Flores. Approve community support fund contribution to Chino National Little League.

Staff Report By: Council Member Flores
RECOMMENDATION: Approve community support fund contributions to: Chino National Little League ($350).

Council Member Lucio
4 CHINO CITY COUNCIL
MARCH 3, 2026 5
City Manager's Report
City Attorney's Report
Director's Report
Police Chief's Report
Fire Chief's Report

ADJOURN
The next meeting of the City Council will be held on Tuesday, March 24, 2026 at 6:00 p.m. (Closed Session no earlier than 4:00 p.m. if necessary) in these Council Chambers.

I, Natalie Gonzaga, City Clerk of the City of Chino, hereby declare that on Thursday, February 26, 2026 this agenda was posted on the south window of Chino City Hall and this agenda together with all of the agenda reports and related documents were posted on the City’s website at www.cityofchino.org by myself or under my direction.
_______________________________________
Natalie Gonzaga, City Clerk.
5 MEMORANDUM

CITY OF CHINO

COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &

RECREATION

SUBJECT
..titl e
National Nutrition Month
..end
..body

6 7

MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: EUNICE M. ULLOA, MAYOR

SUBJECT
..titl e
Award of Mayor’s Home Beautification Award.
..end
..body

8 MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Warrants.
..end

RECOMMENDATION
Approve expenses as audited and within budget for warrants 7774196 to 7774457, and Electronic Fund Transfers 525860E to 525976E, totaling $5,294,471.29. ..body

FISCAL IMPACT
Sufficient funds have been included in the Fiscal Year 25-26 Adopted Budget.

Revenue:

Expenditure:
9 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: WARRANTS.

PAGE: 2

BACKGROUND
As prescribed by Government Code Sections 37202 and 37208, the following demand registers are herewith submitted for Council ratification:

NO. WARRANTS CHECK DATE FY AMOUNT

1. 7774196 – 7774281 02/05/26 25-26 $1,324,160.56

2. 7774282 – 7774451 02/12/26 25-26 $1,528,471.87

3. 7774452 – 7774455 02/12/26 25-26 $2,604.07

4. 7774456 – 7774457 02/13/26 25-26 $12,207.51

5. 525860E – 525919E 02/06/26 25-26 $2,074,515.27

6. 525920E – 525976E 02/13/26 25-26 $352,512.01

TOTAL $5,294,471.29

ISSUES/ANALYSIS
See attached exhibit for detailed information on warrants exceeding $50,000.

Attachment

10 CITY OF CHINO
A/P Warrant Register Over $50,000

Check Date Check
Number Vendor Name Description Amount
02/05/2026 7774222 DUDEK ENGINEERING DESIGN SERVICES $135,639.00 7774265 SO CAL EDISON CO SERVICE PERIOD: 12/08-01/29 $197,228.18 7774268

STATE WATER RESOURCES CONTROL
BOARD DWSRF PRINCIPAL & INTEREST PAYMENT $617,123.33
7774279 WEST COAST ARBORISTS INC LANDSCAPE SERVICES $55,537.00 02/06/2026 525868 BIGGS CARDOSA ASSOCIATES, INC. EUCLID BRIDGE DESIGN SERVICES $82,737.75 525871 BUILDING CODE SERVICES INC PLAN CHECK SERVICES $74,800.00 525884 FISHER SCIENTIFIC CO LLC CITY CONSIDERATION 10/1/25 – 12/31/25 $662,715.62 525898 INLAND EMPIRE UTILITIES AGENCY SEWAGE TREATMENT SERVICES $1,009,184.30 02/12/2026 7774305 BUTIER ENGINEERING, INC CONSTRUCTION MANAGEMENT $64,340.00 7774311 CDW GOVERNMENT INC CENTRAL SERVICES-FIREWALL RENEWAL $143,278.40 7774317 72 HOUR LLC (6) 2026 FORD UTILITY INTERCEPTORS $431,795.37 7774320

CHINO VALLEY UNIFIED SCHOOL
DISTRICT CVUSD CROSSING GUARDS $136,807.38
7774394 PACIFIC HYDROTECH CORPORATION WA212 - CONSTRUCTION SVCS $156,078.35 7774401 PLUMBERS DEPOT INC CAMEAS-NEW PD UNITS $179,262.50 02/13/2026 525946 INLAND EMPIRE UTILITIES AGENCY RECYCLED WATER $75,754.92 525975 YUNEX LLC CITYWIDE TRAFFIC SIGNAL MAINTENANCE $63,408.61

TOTAL $4,085,690.71

11 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK

SUBJECT
..titl e
Minutes.
..end
..body

12 CHINO CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

REGULAR MEETING - CITY HALL COUNCIL CHAMBERS
13220 CENTRAL AVENUE
CHINO, CA 91710
TUESDAY, FEBRUARY 17, 2026

MINUTES
CLOSED SESSION – 5:30 PM
OPEN SESSION – 6:00 PM
_________________________________________________________________________________

CALL TO ORDER
The February 17, 2026, Regular Meeting of the Chino City Council / Successor Agency to the Redevelopment Agency was called to order at 5:31 p.m. by Mayor Eunice M. Ulloa in the Council Chambers.

ROLL CALL
PRESENT: Mayor Eunice M. Ulloa, Mayor Pro Tem Curtis Burton, Council Member Karen C.

Comstock, Council Member Christopher Flores, and Council Member Marc Lucio ABSENT: NONE.

CLOSED SESSION PUBLIC COMMENTS
There were no requests to speak.

CLOSED SESSION
City Attorney Fred Galante read into the record the item listed on the Closed Session agenda.

1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Government Code 54956.8
Property: 4400 Philadelphia Street, Space 10, Chino, CA 91710 Agency Negotiator: Linda Reich, City Manager or her designee Negotiating Parties: Lamplighter Chino, LLC
Under Negotiation: Price and Terms of Potential Sale of Property Interest The City Council recessed to Closed Session at 5:32 p.m. and concluded at 5:48 p.m. The City Council reconvened the meeting at 6:02 p.m.

FLAG SALUTE
The Monte Vista 4-H members led the Pledge of Allegiance. 13 CHINO CITY COUNCIL
FEBRUARY 17, 2026 2

CEREMONIALS
Business of the Month - Award of Business of the Month for February 2026 to:
• Black Bear Diner
• Orange County's Credit Union
The Business of the Month for February 2026 was presented to Black Bear Diner. The award was accepted by General Manager Edward Scott.

The next Business of the Month for February 2026 was presented to Orange County's Federal Credit Union Chino. The award was accepted by Branch Manager Nupur Randhawa, and a branch representative.

Mayor’s Home Beautification Award - Award of Mayor’s Home Beautification Award for February 2026.

Mayor Ulloa announced the Mayor's Home Beautification Award for February 2026 was awarded to the Jones Family of Filmore Street in Chino, who were unable to attend the meeting, but ensured staff will deliver the award.

REPORT OUT OF CLOSED SESSION
City Attorney Fred Galante reported out of closed session as follows:

1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Government Code 54956.8
Property: 4400 Philadelphia Street, Space 10, Chino, CA 91710 Agency Negotiator: Linda Reich, City Manager or her designee Negotiating Parties: Lamplighter Chino, LLC
Under Negotiation: Price and Terms of Potential Sale of Property Interest The City Council received a briefing, provided direction, and no further reportable action was taken.

AGENDA ADDITIONS/REVISIONS
City Manager Linda Reich reported there were no additions or revisions to the agenda.

INFORMATION
Chino Police Department Presentation. Presentation from Police Chief Kevin Mensen regarding Chino Police Department Crime Statistics for 2025.

Police Chief Kevin Mensen provided a presentation on the Chino Police Department Crime Statistics for 2025, along with Deputy Chief Nicholas Marotta.

Council Member Lucio requested staff explore support from the developer regarding security at The Homecoming, implementation of youth programs, and the completion of the community center in The Preserve.

Police Lieutenant Dustin Tomicic, provided an update regarding the work of the Police Department in The Homecoming community.
14 CHINO CITY COUNCIL
FEBRUARY 17, 2026 3
External Agency Report for February 17, 2026. Receive and file the External Agency Report for February 17, 2026 (Covering Meetings from December 1 - 31, 2025).

Mayor Ulloa announced the External Agency Report was included in the agenda packet.

PUBLIC ANNOUNCEMENTS
Mayor Ulloa announced the upcoming DairyAire Fairy Tale 5K, Healthy Family Day, and the Easter Bunny Extravaganza.

Mayor Pro Tem Burton announced the meeting will be adjourned in memory of Bob Ulloa, who recently passed away.

PUBLIC COMMENTS
Pastor Tate Cox, Calvary Chapel Chino Hills, gave the invocation.

Melissa Compani, Representative, Fourth District San Bernardino County Supervisor Curt Hagman, announced District 4 Commission opportunities, and upcoming community events.

Terry Carver, asked for support with feral cats, and spoke regarding Animal Resource Center of the Inland Empire (ARC) concerns.

Maureen Moe Mendoza, spoke regarding concerns with ARC, and submitted a letter saved to the meeting record.

Bryan Yonan, provided an introduction and spoke regarding concerns with the California Air Resources Board.

Chino Hills Vice Mayor Ray Marquez offered his condolences to Mayor Ulloa and shared memories about Bob Ulloa. Mr. Marquez provided an update on upcoming regional meetings.

Matthew Cane, Scout from Troop 202 provided an introduction.

CONSENT CALENDAR

1. Warrants. Approve expenses as audited and within budget for warrants 7774039 to 7774195, and Electronic Fund Transfers 525797E to 525859E, totaling $3,787,893.47 Item No. 2 was pulled from the Consent Calendar for a separate action.

4. City Council Meeting Cancellation and Reschedule for the Month of March, 2026. Authorize staff to cancel the March 17, 2026 regular City Council Meeting and reschedule as a special meeting on March 24, 2026.

5. Adoption of Ordinance No. 2026 -001 (Second Reading), amending provisions of Chapter 8.12 of the Chino Municipal Code. Approve the adoption of Ordinance No. 2026 -001, amending Chapters 8.12.030, 8.12.060, 8.12.065, 8.12.080 and 8.12.165 of the Chino Municipal Code Related to Fireworks.
15 CHINO CITY COUNCIL
FEBRUARY 17, 2026 4

6. Contract Amendment - Citywide Janitorial Services. Approve contract amendment No. 1 to contract No. 2026 -040 with CCS Facility Services -Orange County Inc. in the amount of $20,604.43 for a revised not -to-exceed contract amount of $601,357.49 for Citywide janitorial services.

7. Contract Amendment - Banking Services. Approve a contract amendment with Citizens Business Bank, Inc. to continue providing banking services through August 31, 2026, in the amount of $75,000, for a revised not-to-exceed contract amount of $450,000.

8. Amendment to Professional Services Agreement with The Lincoln National Life Insurance Company. Approve amendment No. 2 retroactively to December 2025 with The Lincoln National Life Insurance Company, in the amount of $70,000, for a revised not -to-exceed contract amount of $220,000, for employee disability benefits and leave management services.

9. 2025 Sewer System Management Plan (SSMP) Update. Adopt Resolution No. 2026 -013 approving the 2025 SSMP update for the City of Chino to comply with the State Water Resources Control Board’s Sanitary Sewer Systems Waste Discharge Requirements (Order No. 2022-0103-DWQ).

10. Final Acceptance of Public Improvements for Tract Map No. 20249 Richland Homes of Maryland, Inc. Accept the public improvements as complete for Tract Map No. 20249 constructed by Richland Homes of Maryland, Inc., for the subdivision generally located south of Bickmore Avenue, north of Pine Avenue, west of Rincon Meadows, and east Mayhew Avenue.

Motion by Mayor Pro Tem Burton, seconded by Council Member Lucio, to approve the Consent Calendar items 1, 3-10 as presented. The motion carried by the following vote:

AYES: ULLOA, BURTON, COMSTOCK, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

ITEMS PULLED FROM THE CONSENT CALENDAR

2. Minutes. Approve Meeting Minutes for (a) Regular Meeting February 3, 2026 (Mayor Ulloa Absent-Excused) and (b) Special Meeting Study Session February 10, 2026 (Mayor Ulloa Absent-Excused).

Motion by Council Member Lucio, seconded by Mayor Pro Tem Burton, to approve Consent Calendar item 2. The motion carried by the following vote:

AYES: BURTON, COMSTOCK, FLORES, AND LUCIO
NOES: NONE.

ABSENT: NONE.

ABSTAIN: ULLOA

MAYOR AND COUNCIL REPORTS
Mayor Pro Tem Burton and Council Members Comstock, Flores, and Lucio did not provide a report, but expressed their condolences to Mayor Ulloa for the recent loss of her husband, Bob.

City Manager's Report
City Manager Reich had no report.
16 CHINO CITY COUNCIL
FEBRUARY 17, 2026 5
City Attorney's Report
City Attorney Galante had no report, but offered condolences to Mayor Ulloa.

Director's Report
There was no Director's report.

Police Chief's Report
Police Chief Mensen offered condolences to Mayor Ulloa.

Fire Chief's Report
Fire Chief Dave Williams offered condolences to Mayor Ulloa.

Mayor Ulloa
Mayor Ulloa expressed gratitude to the community, City staff, and City Council for their compassion and support, and shared stories of her husband Bob, who recently passed away.

ADJOURNED IN MEMORY OF BOB ULLOA
Mayor Ulloa adjourned the meeting in memory of her husband, Bob Ulloa, at 7:17 p.m.

The next Regular Meeting of the City Council will be held on Tuesday, March 3, 2026 at 6:00 p.m. (Closed Session no earlier than 4:00 p.m. if necessary) in these Council Chambers.

APPROVED AND ADOPTED THIS 3RD DAY OF MARCH 2026.
________________________________
EUNICE M. ULLOA, MAYOR
ATTEST:
________________________________

NATALIE GONZAGA, CITY CLERK
**************************************************
(These minutes are not official until signed.)
17 MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK

SUBJECT
..titl e
Elected City Officials’ Report Regarding Travel, Training, and Meetings.

..end

RECOMMENDATION
Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.

..body

FISCAL IMPACT
Sufficient funding is available in the adopted Fiscal Year 2025-26 Operating Budget.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:

 Superior Customer Service
 Responsible Long-Range Planning
 Exemplary Leadership
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure: 1002000-43320
Transfer In: Transfer Out:
18 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING, AND MEETINGS.

PAGE: 2

BACKGROUND
In accordance with Government Code Sections 53232.2 and 53232.3, implementing Assembly Bill (AB) 1234 on January 1, 2006, the City adopted Resolution No. 2005 -093 establishing a Business-Related Expense Policy. On December 6, 2016, the City approved Resolution No. 2016-075 adopting the latest revisions to this policy. In addition to requiring local agenci es to adopt a business-related expense policy, AB 1234 requires that Elected Officials provide a brief report on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.

ISSUES/ANALYSIS
In response to AB 1234, a report regarding Elected City Officials’ Travel, Training, and Meetings (Exhibit A) was created and is placed on the City Council Agenda Consent Calendar, as needed. The documents that pertain to the items listed on Exhibit A are available for publi c inspection at the City Clerk’s office located in City Hall at 13220 Central Avenue, Chino, CA.

Attachment – Exhibit A

19 3/3/2026 City Council Meeting

Event Date Meeting Purpose
and Subject
Matter
Location City Official
Attendees
None.

20 MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Notice of Completion for the Citywide Signage Project MS221 with Myers & Sons Hi -Way Safety, Inc.
..end

RECOMMENDATION
1) Accept the Citywide Signage Project MS221 with Myers & Sons Hi-Way Safety, Inc., Contract No. 2022-227 as complete; 2) authorize the Director of Public Works to file the Notice of Completion with the San Bernardino County Recorder’s Office on behalf of the City of Chino. ..body

FISCAL IMPACT
The Citywide Signage Project MS221 was completed within the City Council approved budget of $1,635,000 with total expenditures in the amount of $1,413,647.10 . The balance of the project will return to Fund 327 S.B.1- RMRA. The following is a summary of the final contract /project costs.

Total Project MS221 Budget (FY21/22-FY25/26) $1,635,000.00 Hi-Way Safety Expenditures ($1,406,943.31)
Other Administrative Costs ($6,703.79)
Remaining Project MS221 Budget $221,352.90

Revenue: Click or tap here to enter text.

Expenditure: 3277102- 48005 | 48007 | 48008 | 48009
–MS221
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 21 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: NOTICE OF COMPLETION FOR THE CITYWIDE SIGNAGE PROJECT MS221 WITH MYERS & SONS HI-WAY SAFETY, INC.

PAGE: 2

BACKGROUND
The City’s street signs are standardized and regulated by the Federal Highway Administration (FHWA). The Manual on Uniform Traffic Control Devices (MUTCD) is the standard in the United States for all street signage design and installation. As part of the MUCTD, a minimum retro- reflectivity level was incorporated as a standard requirement for visibility during night-time driving.

In addition to the MUCTD, California MUCTD (CA MUTCD) also standardized lettering requirements for all street name signs. The CA MUCTD requires mixed -case lettering and increased letter height. Minimum lettering height was increased from 4 inches to 6 inches for legibility for roads with speeds over 25mph, which is most of City’s streets.

In compliance with these safety standard requirements, staff routinely evaluates the condition, placement, and visibility of street name signage throughout the City to ensure CA MUTCD compliant signage, legibility, and public safety. These evaluations help identify signs that are damaged, outdated, or in need of replacement to ensure the roadway network remains safe and easy to navigate. In alignment with City Council’s direction, staff developed the Citywide Signage Project (MS221) as a multi -year effort intended to remove, relocate, and replace signage within the public right -of-way. While the original project concept contemplated replacement of a broader range of signage, including select regul atory signs, the primary scope ultimately completed under MS221 focused on the Citywide replacement of street name signs.

A key component of the project included a comprehensive review of the existing design of the City’s street name signs . This evaluation assessed whether the existing design continued to meet operational and aesthetic needs or if a modernized approach would better support legibility and compliance. As a result of this review, the City moved forward with updating both the design and color of the street name signs, transitioning from the traditional green background to a new blue design. This change provides improved visibility, enhanced nighttime readability, and a refreshed appearance that supports Chino’s positive City image.

In addition to the replacement of street name signage, limited regulatory signage was installed as part of related City initiatives. These efforts included the installation of new citywide street sweeping enforcement signage. This work required comprehensive citywide deployment to support consistent enforcement, improve public awareness, and align signage placement with adopted street sweeping schedules and regulatory requirements. Separate from the street sweeping effort, select speed limit signage was updated as part of the Citywide speed zone adjustments to reflect revised speed limits and maintain compliance with applicable traffic engineering standards.

By exploring and ultimately implementing these design improvements, the City aimed to enhance wayfinding for residents, businesses, and visitors while ensuring all signage aligns with current standards and best practices. The updated design also establishes greater consistency and uniformity within the public right-of-way and supports the City’s long-term goals for safety, aesthetics, and efficient maintenance.

This effort also provided a valuable opportunity to incorporate direction and feedback from the City Council, ensuring the new design reflects both community expectations and organizational priorities. The standardized design supports long-term maintenance efficiency by establishing a durable and easily identifiable signage system for future use. 22 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: NOTICE OF COMPLETION FOR THE CITYWIDE SIGNAGE PROJECT MS221 WITH MYERS & SONS HI-WAY SAFETY, INC.

PAGE: 3

ISSUES/ANALYSIS
Between 2021 to 2023, City staff coordinated closely with the City Council through workshops and study sessions on several related roadway safety and maintenance initiatives that informed limited elements of the signage work completed under MS221 . These efforts supported amendments to the Comprehensive Speed Zone Resolution and the establishment of enforceable street sweeping regulations.

During this period, staff presented the need to update the City’s speed zoning practices as part of a broader initiative to ensure consistency with current State requirements. These amendments were based on updated engi neering and traffic surveys, field evaluations, and systemwide safety considerations.

In addition, the City evaluated long -standing operational challenges related to street sweeping.

Routine street sweeping is an essential maintenance activity that remov es debris from roadway gutters, preserves pavement life, and supports clean and safe streets. Street sweeping also helps remove dirt, trash, and other pollutants before they are washed into storm drains during rain events. These materials are a primary sou rce of pollution in local waterways and are regulated under the County’s Municipal Separate Storm Sewer System (MS4) permit. Staff identified that on -street parking during scheduled sweeping periods significantly reduced operational effectiveness.

To address this issue, staff utilized California Vehicle Code Section 22507.6, which authorizes local jurisdictions to establish parking restrictions for street sweeping when signs are posted conspicuously at neighborhood or community entrances. With City Cou ncil direction, staff adopted ordinance amendments establishing enforceable street sweeping regulations and implemented a phased, citywide installation of neighborhood entrance signage. This marked the first time the City implemented enforceable street sweeping supported by posted signage.

With Council direction and ordinance amendments in place, staff moved forward with a phased deployment of street -sweeping signs citywide . This structured approach allowed sweeping schedules, operational updates, and regul atory enforcement to be implemented consistently and effectively over time, supporting cleaner streets, longer pavement life, and improved public service delivery.

All work has been completed per the contract. Myers & Sons Hi-Way Safety, Inc., has complied with the terms of the contract, and the required warranty bond is on file with the City. A Notice of Completion has been prepared for filing with the San Bernardino County Recorder’s Office.

Attachment: Notice of Completion (Myers & Sons Hi-Way Safety, Inc.)

23 RECORDING REQUESTED BY
City of Chino
Public Works Department
P.O. Box 667
Chino, CA 91708

AND WHEN RECORDED MAIL TO

City Clerk
City of Chino
P.O. Box 667
Chino, CA 91708-0667

SPACE ABOVE THIS LINE FOR RECORDER’S USE

APN# NONE NOTICE OF COMPLETION

CITY OF CHINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA

Notice is hereby given that:

1. The undersigned is owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the undersigned is City of Chino

3. The full address of the undersigned is 13220 Central Avenue, Chino, CA 91710

4. The nature of the title of the undersigned is: In fee (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase” or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned are:

Names Addresses

N/A

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

N/A

N/A
(If no transfer made, insert “none”)

7. A work of improvement on the property hereinafter described was completed on December 4, 2025

8. The name of the contractor, if any, for such work of improvement was:

Myers & Sons Hi-Way Safety, Inc.
(If no contractor for work of improvement as a whole, insert “none”)

9. The property on which said work of improvement was completed is in the City of Chino, County of San Bernardino, State of California, and is described as follows:

Citywide Signage Project (MS221)

10. The street address of said property is None
(If no street address has been officially assigned, insert “none”)

SIGNATURE OF OWNER NAMED IN PARAGRAPH 2: DATE: M arch 3, 2026 Hye Jin Lee, Public Works Director

CERTIFICATION FOR NOTICE OF COMPLETION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss

CITY OF CHINO )

I HEREBY CERTIFY that I am the City Engineer/ Deputy Director of Public Works for the City of Chino. I have read the foregoing Notice of Completion and know the contents thereof; and I certify that the same is true of my own knowledge.

I declare under penalty of perjury, that the foregoing is true and correct. Executed on M arch 3, 2026 , at City of Chino, California

Albert Espinoza,
City Engineer, Deputy Director of Public Works 24

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 3, 2026

TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Formation of Community Facilities District 2026-1 The Meadows. ..end

RECOMMENDATION
..recommendation
1) Conduct a Public Hearing regarding the formation of Community Facilities District 2026 -1 (The Meadows) of the City of Chino (CFD No. 2026 -1) and Improvement Area Nos. 1, 2 and 3 therein (the Improvement Areas); 2) accept tax consultant’s report; 3) adopt Resolution No. 2026-014 establishing CFD No. 2026 -1 and the Improvement Areas, authorizing the levy of special taxes and calling an election within each Improvement Area; 4) adopt Resolution No. 2026-015, determining the necessity to incur bonded indebtedness for CFD No. 2026 -1 and each Improvement Area t herein; 5) conduct a special election of the property owners within CFD No. 2026 -1 and each Improvement Area therein; 6) adopt Resolution No. 2026 -016, declaring results of the special election and directing recording of a Notice of Special Tax Lien on taxable property within CFD No. 2026-1 and each Improvement Area therein; 7) approve the introduction of Ordinance No. 2026 -002, authorizing the levy of a special tax within CFD No. 2026-1 and each Improvement Area therein, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
The City will receive City Services Tax revenue of approximately $ 332,962 per year upon build out of CFD No. 2026 -1 and the Improvement Areas therein . This revenue is intended to offset the cost of providing City services to the homes within CFD No. 2026 -1 and the Improvement Areas therein.

Revenue:

Expenditure:

Transfer In: Transfer Out:
25 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: FORMATION OF COMMUNITY FACILITIES DISTRICT 2026-1 THE MEADOWS.

PAGE: 2

BACKGROUND
Tri Pointe Homes Inc. (Tri Pointe) is developing the property within the proposed boundaries of CFD No. 2026-1 and the Improvement Areas therein. CFD No. 2026 -1 is currently planned to be developed by Tri Pointe into a single family residential developmen t of 516 homes to be known as “The Meadows.” Tri Pointe is using a land bank, KL LB BUY 3 LLC, a Delaware limited liability company (Landbank), as a financing vehicle for The Meadows development. The location of the proposed development within the City i s located at the southwest corner of Bickmore Avenue and West Preserve Loop. See attached map.

Tri Pointe has requested the City initiate the formation of CFD No. 2026 -1 and the Improvement Areas therein to finance the City’s development impact fees and required infrastructure improvements related to storm drain, water, sewer, street, lighting and landscaping improvements as a result of the development (collectively, the Facilities). The proposed CFD will also provide the City financing for certain municipal services of the City to be provided within the boundaries of CFD No. 2026 -1 and the Improvement Areas therein, including maintenance of parks, parkways, and open space; flood and storm protection; operation of storm drainage systems; and public safety services.

On January 20, 2026, City Council adopted Resolution No. 2026 -006, declaring the City of Chino’s intention to establish CFD No. 2026 -1 and the Improvement Areas therein, and to authorize the levy of special taxes in each Improvement Area. In addition, the City Council adopted Resolution No 2026 -007, declaring the City’s intention to incur bonded indebtedness for each of the Improvement Areas, and established March 3, 2026, as the Public Hearing date.

A Notice of Public Hearing was published in the local paper on February 21, 2026. Additionally, the full notice was mailed to all the owners of the subject property prior to the Public Hearing, March 3, 2026.

ISSUES/ANALYSIS
The Mello-Roos Community Facilities Act of 1982 (the Act), Section 55318 of the Government Code, establishes the specific proceedings for creating Community Facilities Districts and Improvement Areas therein. These proceedings require the City Council to conduct a public hearing to hear testimony of all interested persons for or agai nst the establishment of CFD No. 2026-1 and the Improvement Areas therein, and the furnishing of specific types of public facilities or services. At the conclusion of the hearing, the legislative body may determine to proceed with establishing CFD No. 2026-1 and the Improvement Areas therein.

By adopting Resolution No. 2026 -006, pursuant to Section 53321.5 of the Act, the Council ordered the responsible officers for the proposed CFD No. 2026 -1 and the Improvement Areas therein to study said CFD No. 2026 -1 and the Improvement Areas therein and prepare a report for the Council. The Special Tax Consultant, Webb Municipal Finance, has prepared and submitted this report to the City Council on behalf of the officers for the City to review. The report contains a brief description of the public facilities and services by type, their estimated cost, establishes the rates and methods of apportionment of the special taxes to be levied upon the parcels of taxable property within each Improvement Area required to fund the acquisition and/or construction of said public facilities and the provision of said services, as well as the amounts and costs associated with the issuance of bonds to finance acquisition and/or construction of said facilities.

26 CITY COUNCIL MEETING DATE: MARCH 3, 2026
TITLE: FORMATION OF COMMUNITY FACILITIES DISTRICT 2026-1 THE MEADOWS.

PAGE: 3

After the legislative body determines to establish CFD No. 2026 -1 and the Improvement Areas therein, it shall adopt a resolution authorizing the formation of CFD No. 2026 -1 and the Improvement Areas therein and the levy of a special tax within each Improvement Area and calling for a special election within each Improvement Area, and it may immediately hold the special election. An official ballot, including a waiver of the time limit pertaining to the conduct of the election, and any requirement for notice of analysis and arguments with respect to the ballot measure, were provided to the property owner(s) within each Improvement Area prior to the March 3, 2026 City Council meeting. The City Clerk must also concur with the shortening of various time periods applicable to the said landowner election.

The City Clerk shall then canvass the returns of the election and total the number of ballots cast for and against the measures in each Improvement Area. After the canvass of returns of any election, pursuant to Section 53326, the legislative body may levy any special tax as specified in the resolution of formation in the territory of CFD No. 2026 -1 and the Improvement Areas therein, if two-thirds of the votes cast are in favor of levying that tax. The legislative body shall then approve the introduction of an ordinance levying a special tax within CFD No. 2026 -1 and the Improvement Areas therein.

Following formation, bonds would be authorized to be issued in an amount not to exceed $32,000,000, including $17,000,000 within Improveme nt Area No. 1, $6,500,000 within Improvement Area No. 2, $8,500,000 within Improvement Area No. 3. Staff is not moving forward with the remaining documents required to sell the bonds until development in any Improvement Area is sufficient to justify the b ond issuance. When development is sufficient to justify the bond issuance, the City will then process the documents necessary to sell bonds.

These documents will include the Resolution approving the Preliminary Official Statement, Fiscal Agent Agreement/ Indenture, Bond Purchase Agreement and District Continuing Disclosure Agreement. These documents will be scheduled for consideration at a future City Council meeting.

Attachments: Resolution No. 2026-014
Resolution No. 2026-015
Resolution No. 2026-016
Ordinance No. 2026-002
Tax Consultant’s Report
CFD No. 2026-1 Boundary Map
Rate and Method of Apportionment (RMA)

NL:hm

27 RESOLUTION NO. 2026-014

RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CHINO ESTABLISHING COMMUNITY FACILITIES
DISTRICT NO. 2026-1 (THE MEADOWS) OF THE CITY
OF CHINO AND IMPROVEMENT AREA NOS. 1, 2 AND
NO. 3 THEREIN, AUTHORIZING THE LEVY OF

SPECIAL TAXES AND CALLING AN ELECTION

THEREIN
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”) has heretofore adopted Resolution No. 2026-006 (the “Resolution of Intention”) stating its intention to form Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) and Improvement Area Nos. 1 through 3 therein (each an “Improvement Area” and, collectively, the “Improvement Areas”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of the Resolution of Intention setting forth a description of the proposed boundaries of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, the public facilities , services a nd the incidental e xpenses to be financed by the Community Facilities District (the “Facilities,” “Services” and “Incidental Expenses,” respectively) is on file with the City Clerk; and is incorporated herein by reference; and WHEREAS, a combined notice of a public hearing t o be held on March 3, 2026 was published and mailed to all landowners of the land proposed to be included within the Community Facilities District and Improvement Area Nos. 1 through 3 therein; and WHEREAS, on March 3, 2026 , the City Council opened the pub lic hearing (the “Hearing”) as required by law; and
WHEREAS, at the Hearing there was filed with this City Council a report containing a description of the Facilities and Services nece ssary to meet the needs of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, and an estimate of the cost of such Facilities and Services as required by Section 53321.5 of the Act (the “Community Facilities District Report”); and
WHEREAS, at the Hearing all persons desiring to be heard on all matt ers pertaining to the proposed formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, and the levy of the special taxes and the issuance of bonded indebtedness on behalf of each Improvement Area were heard and a full and fair hearing was held; and WHEREAS, at the Hearing, evidence was presented to the City Council on the matters before it, and the proposed formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein and the levy of special taxes was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein , the levy of the special taxes and the issuance of bonded indebtedness on behalf of each Improvement Area; and 28 2

WHEREAS, the City Council has determined that there have been no registered voters residing in the proposed boundaries of the Community Facilities District and Improvement Area Nos. 1 through 3 therein for the period of 90 days prior to the Hearing and that the qualified electors in the Community Facilities District and Improvement Area Nos. 1 through 3 therein are the landowners within the Community Facilities District and Improvement Area Nos. 1 through 3 therein; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of the Community Facilities District and Improvement Area Nos. 1 through 3 therein and with the calling of an election within the boundaries of the Community Facilities District and Improvement Area Nos. 1 through 3 therein to authorize (i) the levy of special taxes within each Improvement Area pursuant to the applicable rate and method of apportionment of the special tax attached to the Resolution of Intention as Attachments “C-1” through “C-4” (collectively, the “Rates and Methods ”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for the Community Facilities District;

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

Section 1. Each of the above recitals is true and correct.

Section 2. A Community Facilities District to be designated “Community Facilities District No. 2026-1 (The Meadows) of the City of Chino” and “Improvement Area Nos 1 through 3” therein , is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the Community Facilities District and Improvement Area Nos. 1 through 3 therein were valid and in conformity with the requirements of l aw, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

Section 3. The boundaries of the Community Facilities District and Improvement Area Nos. 1 through 3 therein are established as shown on the map designate d “ Proposed Boundary Map Community Facilities District No. 2026-1 (The Meadows) City of Chino, County of San Bernardino, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the S treets and Highways Code in the County of San Bernardino Book of Boundary Maps in the County Recorder’s Office in Book No. 92 at Pages 85 through 87 as Document No. 2026-0021316 on January 28, 2026.

Section 4. The types of Facilities, Services and Incidental Expenses authorized to be provided for the Community Facilities District and Improvement Area Nos. 1 through 3 therein are those set forth in the Resolution of Intention. The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Community Facilities District Report, which estimates may change as the Facilities are designed and bid for construction and acquisition.

Bond proceeds shall not be used to finance Services.

The City of Chino is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds that the proposed Facilities are necessary to meet the increased demand that will be pla ced upon public infrastructure and City as a result of new development within the Community Facilities District and Improvement Area Nos. 1 through 3 therein.
29 3

The City Council finds and determines that the proposed Services are necessary to meet the increa sed demand that will be placed upon local agencies and public infrastructure as a result of new development within the Community Facilities District and Improvement Area Nos. 1 through 3 therein and that the Services to be financed benefit residents of the City and the future residents of the Community Facilities District and Improvement Area Nos. 1 through 3 therein.

Section 5. The City Council hereby adopts the Rates and Methods applicable to each Improvement Area set forth in Attachments in Attachments “C -1” thro ugh “C -3” to the Resolution of Intention as the applicable rate and method of apportionment for the Community Facilities District and Improvement Area Nos. 1 through 3 therein . Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the Community Facilities District and Improvement Area Nos. 1 through 3 therein , to levy the proposed special taxe s in the Community Facilities District and Improvement Area Nos. 1 through 3 therein at the rates set forth in the Rate s and Method s hereto on all non-exempt property within the Community Facilities District and Improvement Area Nos. 1 through 3 therein sufficient to pay (i) the Facilities and the principal and interest and other periodic costs on the bonds proposed to be issued by the Community Facilities District on behalf of the Improvement Areas to finance the Facilities and Incidental Expenses for such Improvement Area , including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) and other ex penses of the type permitted by Section 53345.3 of the Act; (ii) the Services, and (iii) the Incidental Expenses. The Community Facilities District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the cre ation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, the issuance of bonds, the levying and collecting of the special tax, the completion and inspection of the Facilities and the annual administration of the bonds and the Community Facilities District and the Improvement Areas therein. The Rates and Methods are described in detail in Attachments “C-1” through “C -3” to the Resolution of Intention and incorporated herein by this reference , and the City Council hereby find s that said Attachments “C -1” through “C -3” contains sufficient detail to allow the landowner within the Community Facilities District and Improvement Area Nos. 1 through 3 therein to estimate the maximum amount of the special tax for Facilities (“ Special Tax A”) and Services (“Special Tax B”) that may be levied against each parcel. As described in greater detail in the Community Facilities District Report, which is incorporated by reference herein, the special tax es are based on the expected demand that each parcel of real property within the Community Facilities District and Improvement Area Nos. 1 through 3 therein will place on the Facilities and Services and, accordingly, are hereby determined to be reasonable. The special taxes shall be levied on each assessor’s parcel pursuant to the Rate and Method, but Special Tax A shall not be levied after Fiscal Year 2069-70. Special Tax B shall be levied in perpetuity as long as the Services are being provided. The special tax es are apportioned to each parce l on the foregoing bas is pursuant to Section 53325.3 of the Act and such special taxes are not an ad valorem tax on or a tax based upon the ownership of real property.

The City’s Director of Finance will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Section 6. In the event that a portion of the property within the Community Facilities District shall become for any reason exempt, wholly or partially, from the levy of the Special 30 4

Tax A specified in the Rate and Method, the City Council shall, on behalf of the Community Facilities District and Improvement Area Nos. 1 through 3 therein , increase the levy of Special Tax A to the extent necessary and permitted by law and these proceedings upon the remaining property the applicable Improvement Area which is not delinquent or exempt in order to yield the required debt se rvice payments on any outstanding bonds of the Community Facilities District for such Improvement Area or to prevent the Community Facilities District from defaulting on any other obligations or liabilities of the Community Facilities District for such Imp rovement Area; provided, however, that under no circumstances shall such Special Tax A in the applicable Improvement Area be increased in any fiscal year as a consequence of delinquency or default by the owner of any other parcel or parcels within the applicable Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

Section 7. Upon recordation of a notice of special tax lien within each Improvement Area pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all non -exempt real property in the Community Facilities District and each Improvement Area therein ; and this lie n shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the special tax by the Community Facilities District on behalf of the Community Facilities District ceases.

Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Community Facilities District , if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Community Facilities District and will be benefited by the Facilities proposed to be provided within the Community Facilities District and Improvement Area Nos. 1 through 3 therein.

Section 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the proposed Community Facilities District for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of the Community Facilities District as are proposed to be provided by the Facilities to be financed by the Community Facilities District.

Section 10. It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2026-1 and Improvement Area Nos. 1 through 3 therein for the exclusive purpose of paying for the same services to the territory of Community Facilities District No. 2026-1 and Improvement Area Nos. 1 through 3 therein as are proposed to be provided by the Services to be financed by Community Facilities Distr ict No. 2026-1 on behalf of Improvement Area Nos. 1 through 3 therein.

Section 11. Written protests against the establishment of the Community Facilities District and Improvement Area Nos. 1 through 3 therein have not been filed by one-half or more of the registered v oters within the boundaries of the applicable Improvement Areas or by the property owners of one-half or more of the area of land within the boundaries of the Community Facilities District or the Improvement Areas. The City Council hereby finds that the p roposed special tax has not been precluded by a majority protest pursuant to Section 53324 of the Act. 31 5

Section 12. An election is hereby called for the Community Facilities District and Improvement Area Nos. 1 through 3 therein on the propositions of levying the special tax on the property within each Improvement Area and establishing an appropriations limit for the Community Facilities District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for the Community Facilities District and each Improvement Area therein , pursuant to Section 53351 of the Act.

The propo sitions to be placed on the ballot for Improvement Area Nos. 1 through 5 of the Community Facilities District are attached hereto as Exhibit A.

Section 13. The date of the election within each Improvement Area shall be March 3, 2026, or such later date as is consented to by the City Clerk and the landowners within each Improvement Area. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.

It is hereby found that there are no registered vote rs within the territory of the Community Facilities District and Improvement Area Nos. 1 through 3 therein , and, pursuant to Section 53326 of the Act, the landowner who is the owner of record on the date hereof, or the authorized representative thereof, sh all have one vote for each acre or portion thereof that he, she or it owns within each Improvement Area. The voters shall be the landowners of record within each Improvement Area as of March 3, 2026.

Section 14. The preparation of the Community Facilities District Re port is hereby ratified. The Community Facilities District Report, as submitted, is hereby approved and made a part of the record of the public hearing regarding the formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 15. Advance of Funds . The City may accept advances of funds or work -in- kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the Community Facilities District and Improvement Area Nos. 1 through 3 therein. The City may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.

Section 16. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March, 2026.

CITY COUNCIL OF THE CITY OF CHINO
By:

Eunice M. Ulloa,
Mayor of the City of Chino
32 6

ATTEST:

Natalie Gonzaga
City Clerk of the City of Chino
33 7

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss.

CITY OF CHINO )
I, NATALIE GONZAGA , City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 3rd day of March, 2026, by the following votes:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A

34 A-1

EXHIBIT A

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 1)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square a fter the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “ Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 1 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $17,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

PROPOSITION B: Shall special tax es, pursuant to the rate and method of apportionment as provided in Attachment “C-1” in Resolution No. 2026-006 of the City Council of the City of Chino for Improvement Area No. 1 of the Community Facilities District , be levied to pay for the Facilities, Services, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in Resolution No. 2026-006?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, fo r the Community Facilities District be an amount equal to $17,000,000?

YES______
NO_______

35 A-2

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 2)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 2 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $ 6,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

PROPOSITION B: Shall special taxes, pursuant to the rate and method of apportionment as provided in Attachment “C-2” in Resolution No. 2026-006 of the City Council of the City of Chino for Improvement Area No. 1 of the Community Facilities District, be levied to pay for the Facilities, Services, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in Resolution No. 2026-006?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District be an amount equal to $6,500,000?

YES______
NO_______

36 A-3

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 3)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 3 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $ 8,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

PROPOSITION B: Shall special taxes, pursuant to the rate and method of apportionment as provided in Attachment “C-2” in Resolution No. 2026-006 of the City Council of the City of Chino for Improvement Area No. 1 of the Community Facilities District, be levied to pay for the Facilities, Services, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidenta l Expenses and the other purposes described in Resolution No. 2026-006?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District be an amount equal to $8,500,000?

YES______
NO_______

37 RESOLUTION NO. 2026-015

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE

MEADOWS) OF THE CITY OF CHINO, DETERMINING THE

NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN
IMPROVEMENT AREA NOS 1 THROUGH 3 OF SAID

COMMUNITY FACILITIES DISTRICT AND CALLING AN

ELECTION THEREIN
WHEREAS, on January 20, 2026 , the City Council (the “City Council”) of the City of Chino adopted Resolution No. 2026-006 (the “Resolution of Intention”) stating its intention to form Community Facilities District No. 2026-1 (The Meadows ) of the City of Chino (the “Community Facilities District”) and Improvement Area Nos. 1 through 3 therein (each an “Improvement Area” and, collectively, the “Improvement Areas”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (the “Act”); and WHEREAS, on January 20, 2026 , the City Council also adopted Resolution No. 2026- 007 stating its intention to incur bonded indebtedness within the proposed Community Facilities District in an amount not to exceed $32,000,000, including $17,000,000 within Improvement Area No. 1, $6,500,000 within Improvement Area No. 2, $8,500,000 within Impr ovement Area No. 3, to finance: (1) the purchase, construction, expansion, improvement or rehabilitation of public improvements identified in Exhibit B to the Resolution of Intention , including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years of longer, and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the Community Facilities District and the Improvement Areas therein (the “Incidental Expenses”); and WHEREAS, notice was published as required by law relative to the intention of the City Council to form the proposed Community Facilities District and Improvement Area Nos. 1 through 3 therein and to incur bonded indebtedness for each proposed Improvement Area; and WHEREAS, on March 3, 2026 , the City Council opened a noticed public hearing to determine whether it should proceed to form the Community Facilities District and Improvement Area Nos. 1 through 3 therein, issue bonds to pay for the Facilities and Incidental Expenses and to authorize the rate and method of apportionment of a special tax to be levied each Improvement Area of the District for the purposes described in the Resolution of Intention; and WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, the levy of special tax es and the issuance of bonds to pay for the cost of the proposed Facilities and Incidental Expenses were heard and a full and fair hearing was held; and
WHEREAS, subsequent to such hearing the City Council adopted a resolution establishing the Community Facilities District and Improvement Area Nos. 1 th rough 3 therein (the “Resolution of Formation”); and
38 2

WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness for each of the Improvement Areas within the Community Facilities District , to declare the purpose for said indebtedness, and to authorize the submittal of certain propositions to the voters of within the applicable Improvement Area , being the owners of land within the applicable Improvement Area, all as authorized and required by law.

NOW, THEREFORE, BE IT RESOL VED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

Section 1. It is necessary to incur bonded indebtedness of the Community Facilities District in a maximum aggregate principal amount not to exceed $32,000,000, including $17,000,000 with in Improvement Area No. 1, $6,500,000 within Improvement Area No. 2, $8,500,000 within Improvement Area No. 3.

Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabi litating the Facilities, as described in the Resolution of Intention and the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of the Community Facilities District, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), admin istrative expenses and other expenses of the type authorized by Section 53345.3 of the Act.

Section 3. The whole of the property within an Improvement Area , other than property exempted from the special tax pursuant to the provisions of the applicable rate and method of apportionment attached to the Resolution of Intention as Exhibits C-1 through C-4, shall pay for the bonded indebtedness of such Improvement Area pursuant to the levy of the special tax for the Facilities (“Special Tax A”) authorized by the Resolution of Formation.

Section 4. The Community Facilities District may issue one or more series of bonds secured by Special Tax A and the maximum term of any series of bonds to be issued shall in no event exceed forty (40) years.

Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or the fixed rate shall not exceed the maximum rate permitted by Section 53531 of the California Government Code, or any other applicable provision of law limiting the maximum interest rate on the bonds.

Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for each Improvement Area of the Community Facilities District on the prop osition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness for the for Improvement Area Nos. 1 through 3 shall be in the forms set forth in Exhibit A to the Resolution of Formation. The election in each Improvement Area on the proposition of incurring bonded indebtedness shall be consolidated with the election and on the propositions to levy the special 39 3

taxes and to establish an appropriations limit for such Improvement Area , which propositions shall be in the forms set forth in Exhibit A to the Resolution of Formation.

Section 8. The date of the consolidated special election for each Improvement Area for the Community Facilities District shall be March 3, 2026 , or such later date as is consented to by the City Clerk of th e City of Chino (the “ City Clerk ”) and the owners of land within each Improvement Area. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation and this resolution; and all ballots s hall be received by, and the City Clerk shall close the election by 6:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. It is hereby found that there are fewer than 12 registered voters within the territory of each Improvement Area of the Community Facilities District and, pursuant to Section 53351(j) of the Act, the ballots for the special election shall be distributed in person or by mail with return postage prepaid to the landowners of record within the Community Facilities District as of the close of the March 3, 2026 hearing regarding the formation of the Community Facilities District.

Each landowner shall have one vote for each acre or portion thereof that he, she or it owns within each Improvement Area of the Community Facilities District , as provided in Section 53326 of the Act.

Section 9. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March, 2026.

CITY COUNCIL OF THE CITY OF CHINO
By:

Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:

Natalie Gonzaga
City Clerk of the City of Chino
40 4

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss.

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
41 RESOLUTION NO. 2026-016

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, ACTING IN ITS CAPACITY AS THE

LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2026-1 (THE MEADOWS ) OF THE CITY

OF CHINO CERTIFYING THE RESULTS OF THE MARCH
3, 2026 SPECIAL TAX AND BOND ELECTIONS WITHIN
IMPROVEMENT NOS. 1 THROUGH 3 THEREIN
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”), acting as the legislative body of Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) and Improvement Area No. 1 , Improvement Area No. 2 and Improvement Area No. 3 therein (each an “Improvemen t Area” and, collectively, the “Improvement Areas”) , c alled and duly held elections on March 3, 2026 within the boundaries of Improvement Areas Nos. 1 through 3 therein of the Community Facilities District No. 2026-1 (The Meadows) pursuant to Resolution No s. 2026-014 and 2026- 015 for the purpose of presenting to the qualified electors within each Improvement Area of the Community Facilities District the propositions which are attached hereto as Exhibit A, Exhibit B; Exhibit C; and
WHEREAS, there has been pr esented to the City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit D;

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the Community Facilities District.

Section 2. Propositions A, B and C presented to the qualified electors of Improvement Area No. 1 of the Community Facilities District on March 3, 2026 were approved by more than two-thirds of the votes cast at the election held for the Community Facilities District, and each of Propositions A, B and C has carried. The City Council is hereby authorized to levy on the land within the Community Facilities District the special tax es described in Proposition B for the purposes described therein to issue bonds in one or more series in Improvement Area No. 1 up to $17,000,000 of bonded indebtedness specified in Proposition A.

Section 3. Propositions A, B and C presented to the qualified electors of Improvement Area No. 2 of the Community Facilities District on March 3, 2026 were approved by more than two-thirds of the votes cast at the election held for the Community Facilities District, and each of Propositions A, B and C has carried. The City Council is hereby authorized to levy on the land within the Community Facilities District the special tax es described in Proposition B for the purposes described therein to issue bonds in one or more series in Improvement Area No. 2 up to $6,500,000 of bonded indebtedness as specified in Proposition A.

Section 4. Propositions A, B and C presented to the qualified electors of Improvement Area No. 3 of the Community Facilities District on March 3, 2026 were approved by more than two-thirds of the votes cast at the election held for the Community Facilities District, and each of Propositions A, B and C has carried. The City Council is hereby authorized to levy on the land within the Community Facilities District the special tax es described in Proposition B for the purposes described therein to issue bonds in one or more series in Improvement Area No. 3 up to $8,500,000 of bonded indebtedness as specified in Proposition A. 42 2

Section 5. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien for each Improvement Area of the District which Bond Counsel to the Community Facilities District shall prepare in the form required by Streets and Highways Code Section 3114.5.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of March, 2026.

CITY COUNCIL OF THE CITY OF CHINO

By:__________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:

________________________________
Natalie Gonzaga
City Clerk of the City of Chino

43 3

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss.

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibits A, B, C and D

44 A-1

EXHIBIT A

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 1)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City o f Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 1 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $17,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

PROPOSITION B: Shall special taxes, pursuant to the rate and method of apportionment as provided in Attachment “C-1” in Resolution No. 2026-006 of the City Council of the City of Chino for Improvement Area No. 1 of the Community Facilities District, be levied to pay for the Facilities, Services, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other pur poses described in Resolution No. 2026-006?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constituti on, for the Community Facilities District be an amount equal to $17,000,000?

YES______
NO_______
45 B-1

EXHIBIT B

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 2)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 2 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $ 6,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

PROPOSITION B: Shall special taxes, pursuant to the rate and method of apportionment as provided in Attachment “C-2” in Resolution No. 2026-006 of the City Council of the City of Chino for Improvement Area No. 1 of the Community Facilities District, be le vied to pay for the Facilities, Services, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in Resolution No. 2026-006?

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District be an amount equal to $6,500,000?

YES______
NO_______

46 C-1

EXHIBIT C

SAMPLE BALLOT
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS)

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 3)

SPECIAL TAX AND SPECIAL BOND ELECTION
March 3, 2026
This ballot represents ___ votes.

To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.

If you wrongly m ark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.

PROPOSITION A: Shall Community Facilities District No. 2026-1 (The Meadows) of the City of Chino (the “Community Facilities District”) incur an indebtedness and issue bonds for Improvement Area No. 3 of the Community Facilities District (the “Improvement Area”) in the maximum principal amount of $ 8,500,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-006 of the City Council of the City of Chino?

YES______
NO_______

YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025 -26, shall the appropriations li mit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District be an amount equal to $8,500,000?

YES______
NO_______

47 Resolution No. 2026-016
D-1

EXHIBIT D

CERTIFICATE OF THE CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS

(IMPROVEMENT AREA NO. 1)

I, Natalie Gonzaga, City Clerk of City of Chino, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 1 of Community Facilities District No. 2026-1 (The Meadows ) of the City of Chino (the “ Community Facilities District”). The election was held in the chambers of the City Council at 13220 Central Avenue, Chino, California, on March 3, 2026. I caused to be delivered a ballot to the authorized representative of each qualified elector. Two (2) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: __ NO: __ NO: __
TOTAL: TOTAL: TOTAL:

Dated this 3rd day of March, 2026.

Natalie Gonzaga, City Clerk
City of Chino

48 Resolution No. 2026-016
D-2

CERTIFICATE OF THE CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS

(IMPROVEMENT AREA NO. 2)

I, Natalie Gonzaga, City Clerk of City of Chino, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 2 of Community Facilities District No. 202 6-1 (The Meadows) of the City of Chino (the “Community Facilities District”). The election was held in the chambers of the City Council at 13220 Central Avenue, Chino, California, on March 3, 2026 . I caused to be delivered a ballot to the authorized representative of each qualified elector. Two (2) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: __ NO: __ NO: __
TOTAL: TOTAL: TOTAL:

Dated this 3rd day of March, 2026.

Natalie Gonzaga, City Clerk
City of Chino

49 Resolution No. 2026-016
D-3

CERTIFICATE OF THE CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS

(IMPROVEMENT AREA NO. 3)

I, Natalie Gonzaga, City Clerk of City of Chino, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 2 of Community Facilities District No. 202 6-1 (The Meadows) of the City of Chino (the “Community Facilities District”). The election was held in the chambers of the City Council at 13220 Central Avenue, Chino, California, on March 3, 2026. I caused to be delivered a ballot to the authorized representative of each qualified elector Two (2) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: __ NO: __ NO: __
TOTAL: TOTAL: TOTAL:

Dated this 3rd day of March, 2026.

Natalie Gonzaga, City Clerk
City of Chino

50 ORDINANCE NO. 2026-002

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE

MEADOWS) OF THE CITY OF CHINO AUTHORIZING THE LEVY

OF SPECIAL TAX ES WITHIN THE COMMUNITY FACILITIES
DISTRICT AND IMPROVEMENT AREA NOS. 1 THROUGH 3

THEREIN
WHEREAS, on January 20, 2026 , the City Council (the “ City Council ”) of the City of Chino (the “City”) adopted Resolution No. 2026-006 declaring its intention to form Community Facilities District No. 2026-1 (The Meadows ) of the City of Chino (the “Community Facilities District”) and to designate each of Improvement Areas Nos. 1 through 3 within the Community Facilities District (each an “Improvement Area,” and, collect ively, the “Improvement Areas”) therein and incur bonded indebtedness in an aggregate principal amount not to exceed $32,000,000, consisting of not to exceed bonded indebtedness of $1 7,000,000 within Improvement Area No. 1, $ 6,500,000 within Improvement Ar ea No. 2, $ 8,500,000 within Improvement Area No. 3, all pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and ad opted Resolution No. 2026-007 declaring its intention to incur bonded indebtedness of the Community Facilities District; and WHEREAS, on March 3, 2026 , after providing all notice required by the Act, the City Council opened a public hearing required by the Act relative to the formation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein , the proposed levy of special taxes within the Community Facilities District to finance certain public improve ments, services and incidental expenses described in Resolution No. 2026-006, and to incur bonded indebtedness with respect to each Improvement Area; and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the form ation of the Community Facilities District and Improvement Area Nos. 1 through 3 therein, the proposed levy of the special taxes within the Community Facilities District to finance the public improvements, services and incidental expenses described in Reso lution No. 2026-006 and the proposed issuanc e of bonded indebtedness of the Community Facilities District with respect to each Improvement area were heard and a full and fair hearing was held; and
WHEREAS, on March 3, 2026, following the close of the public hearing, the City Council adopted a resolution establishing the Community Facilities District and Improvement Area Nos. 1 through 3 therein (the “Resolution of Formation”) and a resolution determining the necessity to incur bonded indebtedness of the Community Facilities District (the “Resolution to Incur Bonded Indebtedness”) each of which called a consolidated special election on March 3, 2026 within each Improvement Area on three propositions relating to the levying of special tax es, the incurring o f bonded indebtedness and the establishment of an appropriations limit for the Community Facilities District; and
WHEREAS, on March 3, 2026 , a special election was held within each Improvement Area at which the qualified electors with respect to each Impro vement Area approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of special tax es within each 51 2

Improvement Area for the purposes described in the Resolution of Intention and the issuance of bonded indebtedness by the Community Facilities District on behalf of each Improvement Area as described in the Resolution to Incur Bonded Indebtedness.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO , CALIFORNIA,

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS ) OF THE CITY OF CHINO, ORDAINS AS FOLLOWS:

Section 1. The above recitals are all true and correct.

Section 2. By the passage of this Ordinance, the City Council authorizes the levy of special taxes within each Improvement Area at the maximum rates and in accordance with the rates and method s of apportionment set forth in Exhibits C-1 through C -4 to the Resolution No. 2026-006, which rates and methods of apportionment are incorporated by reference herein (the “Rates and Methods”).

Section 3. The Director of Finance of the City is hereby further authorized and directed each fiscal year, on or before August 10 of each year, or such later date as is permitted by law, to determine the specific special tax rates and amounts to be levied for the next ensuing fiscal year for each parcel of real property each Improvement Area pursuant to the Rate s and Methods. The special tax rate s to be levied pursuant to the Rates and Methods shall not exceed the applicable maximum rates set forth therein, but the special tax es may be levied at a lower rate.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax es, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act, the Rates and Methods and the boundary map for the Community Facilities District.

No other properties or entities are exempt from the special tax es unless the properties or entities ar e expressly exempted in the Resolution of Formation, or in a resolution of consideration to levy a new special tax or special taxes or to alter the Rate s or Methods of an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the special taxes pursuant to the Rates and Methods shall be used as provided for in the Act and the Resolution of Formation. The special tax es shall be levied within each Improvement Area only so long as needed for the purposes described in the Resolution of Formation.

Section 6. The special tax es levied pursuant to the Rates and Methods 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 procedur e, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supp lemental tax bills), as such procedure may be modified by law or by this City Council from time to time.

Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of any bonded indebtedness of the Community Facilities District , together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of 52 3

principal on the applicable Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax.

Section 8. This Ordinance relating to the levy of the special tax es within the Community Facilities District shall take effect 30 da ys following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act.

Section 9. The City Clerk is hereby authorized to perform all acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance. 53 4

INTRODUCED, ADOPTED, SIGNED AND APPROVED ON the __ day of ____, 2026.

CITY COUNCIL OF THE CITY OF CHINO
By:__________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:
________________________________
Natalie Gonzaga
City Clerk of the City of Chino

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss.

CITY OF CHINO )
I, NATALIE GONZAGA , City Clerk of the City of Chino, do hereby certify that the foregoing Ordinance was du ly adopted by the City Council of the City of Chino at a regular meeting held on the __ day of ____, 2026, by the following votes:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK

54 -

City of Chino
Community Facilities District No. 2026-1
(The Meadows)

Prepared for:

March 2026

Community Facilities District Report

55 Table of Contents

Sections
Section 1. Introduction _________________________________________________ 1 Section 2. Description of Facilities/Improvements and Services _________________ 2 Section 3. Cost Estimate ________________________________________________ 4 Section 4. Proposed Development ________________________________________ 6 Section 5. Rate and Method of Apportionment ______________________________ 7

Tables
Table 3-1. Cost Estimate ________________________________________________ 4

Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Recorded Boundary Map

56 1. Introduction

City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 1

AGENCY: CITY OF CHINO

PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2026-1
(THE MEADOWS)

TO: CITY COUNCIL

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA

Whereas, the City Council of the CITY OF CHINO, SAN BERNARDINO COUNTY, CALIFORNIA (hereinafter referred to as the “City Council ”), did, pursuant to the provisions of the “Mello -Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expressly ordere d the filing of a written Public Report (the “Report”) for a proposed COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS) This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2026-1 (THE MEADOWS ) of the CITY OF CHINO (hereinafter referred to as the “District” and “CFD No. 2026-1”); and,

Whereas, on January 22, 2026 , the City Council adopted Resolution No. 2026-006 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:

• A description of the public facilities and services by type proposed to be financed by CFD No. 2026-1; • An estimate setting forth costs of providing such facilities and services; • The rate and method of apportionment of the Special Tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the annual amount of payment thereof.

NOW, THEREFORE, the undersigned, authorized representative of WEBB MUNICIPAL FINANCE, LLC , the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:

57 2. Description of Facilities/Improvements and Services

City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 2

Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2026-1 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.

A general description of the proposed facilities and services for the District is as follows:

Facilities/Improvements
The types of Facilities that are proposed by CFD No. 2026 -1 and each of the Improvement Areas therein and financed with the proceeds of special taxes and bonds issued by CFD No. 2026-1 on behalf of each Improvement Area therein consist of backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, fire facilities, law enforcement facilities, library facilities and public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure, including any other facilities that are necessary for development of the property within the boundaries of CFD No. 2026-1.

The description of Facilities described above is general in nature. The final nature and location of the Facilities will be determined upon preparation of final plans and specifications.

Services
The services which may be funded with proceeds of the special tax of CFD No. 2026 -1, as provided by Section 53313 of the Act, include the following (collectively, the “Services”):

(i) maintenance of parks, parkways, park lighting, sidewalks, signage, landscaping in public areas, easements or right of way and open space;
(ii) flood and storm protection services;
(iii) the operation of storm drainage systems;
(iv) maintenance of streets and roadways, traffic signals and street lighting; (v) graffiti and debris removal from public improvements; (vi) public safety services including police, fire protection and fire suppression; (vii) operation of library and recreation programs;
(viii) operation of future museums and cultural facilities; and (ix) maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City of Chino.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the CFD Administrator.

Capitalized terms used and not defined herein shall have the meanings set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2026-1 and each of the Improvement Areas therein.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or Special T axes include: all costs associat ed with the creation of CFD No. 2026-1, the issuance of bonds (which may include , but is not limited to , funding the reserve fund, capitalized interest, underwriter discount, underwriter premium, and cost of issuance) , the determination of the amount of S pecial Taxes to be levied, costs otherwise incurred in order to carry out the 58 2. Description of Facilities/Improvements and Services

City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 3

authorized purposes of CFD No. 2026-1, including legal fees, fees of consultants, engineering, planning, designing and the annual administration cost of CFD No. 2026-1.

The description of the eligible public facilities , services and incidental expenses above are preliminary and general in nature. The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the pro ceedings relating to CFD No. 2026-1.

Based upon the preceding, it is my opinion that the facilities and services being funded are those that are necessary to meet certain increased demands placed upon the City of Chino, as a result of development and/or rehabilitation occurring within the boundaries of the District.

DATED: March 3, 2026 WEBB MUNICIPAL FINANCE, LLC

By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
59 3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 4

1. The cost estimate, including Incidental Expenses, to be financed thr ough the issuance of CFD No. 2026-1 Bonds is estimated to be $24,260,000 based upon current dollars (Fiscal Year 2025-26).

2. For further particulars, reference is made to Table 3 -1 on the following pages and incorporated herein by reference.

3. Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2026- 1 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. The incidental expenses associated with the annual administration of CFD No. 2026-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate (1)
Item CFD No. 2026-1
City of Chino Development Impact Fees Total
Law Enforcement Facilities $216,524
Fire Protection Facilities $488,048
Circulation (Streets, Signals and Bridges) $3,326,265
Circulation (Streets, Signals and Bridges) Credit ($722,028) Storm Drain Collection $2,302,051
Sewage Collection and Disposal $1,510,363
Water Source Storage and Distribution $4,299,647
General Facilities $89,996
Public Use (Community Center) Facilities $2,256,210
Misc. Open Space Amenities $803,030
Congestion Management Plan $211,441
Park Fund $7,968,072
Park Fund ($7,968,072)
Subtotal Eligible Development Impact Fees: $14,781,547 City of Chino Improvements Total
Storm Drain Improvements $862,237
Recycled Water $195,575
Domestic Water $566,745
Sewer $201,615
Wet Utilities $216,500
Streets $2,533,073
Lighting and Landscaping $1,000,000
Soft Costs $669,089
Administrative Costs $312,242
Subtotal Eligible City Improvements: $6,557,076
60 3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 5

Estimated Bond Issuance: $24,260,000
Estimated Incidentals: ($3,155,697)
Estimated Project Funds Available: $21,104,303
Estimated Unfunded Eligible Improvements: ($234,320)
DATED: March 3, 2026 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
61 4. Proposed Development
City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 6

Improvement Area No. 1 (IA No. 1) is planned to contain approximately 5.28 net taxable acres within Tract Number 20312-2. IA No. 1 is planned to be developed into 280 single-family detached units and is located north of Bickmore Avenue, east of West Preserve Loop , west of Main Street, and south of Garden Park Street in the City of Chino. The proposed IA No. 1 boundaries include the following Assessor Parcel Number: 1055-461-09- 0000.

Improvement Area No. 2 (IA No. 2) is planned to contain approximately 1.95 net taxable acres within Tract Number 20312-2. IA No. 2 is planned to be developed into 98 single-family detached units and is located south of Bickmore Avenue, east of West Preserve Loop, and north of Pine Avenue in the City of Chino. The proposed IA No. 2 boundaries include the following Assessor Parcel Numbers: 1055-621-02-0000 (portion).

Improvement Area No. 3 (IA No. 3) is planned to contain approximately 2.54 net taxable acres within Tract Number 20312-2. IA No. 3 is planned to be developed into 138 single-family detached units and is located south of Bickmore Avenue, east of West Preserve Loop, and north of Pine Avenue in the City of Chino. The proposed IA No. 3 boundaries include the following Assessor Parcel Numbers: 1055-621-02-0000 (portion) and 1055-621-03- 0000.

The Boundary Map for CFD No. 2026-1 is attached hereto as Appendix B (the “Boundary Map”). 62 5. Rate and Method of Apportionment

City of Chino Community Facilities District Report
CFD 2026-1 (The Meadows) 7

1. Each Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of A pportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, the Special Tax may be collected at a different time or in a different manner if necessary for CFD No. 2026-1 to meet its financial obligations and may covenant to foreclose on delinquent parcels as permitted by the Act.

2. All of the property located within CFD No. 2026-1, unless exempted by law or by the Special Tax proposed for CFD No. 2026-1, shall be taxed for the purpose of providing necessary facilities and services to serve the District. The Boundary Map for each Improvement Area of CFD No. 2026-1 is attached hereto as Appendix B.

Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City Council , although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in who le or in part the Special Tax A. The available method for so doing i s described in Section G and H of each Rate and Method (“Prepayment of Special Tax A”).

Special Tax B may not be prepaid.

For each year that any Bonds are outstanding, the Special Tax shall be levied on all Parcels in accordance with this Rate and Method of Apportionment. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected Special Taxes and costs associated with the levy of such Special Taxes, but the Special Tax shall not be levied after the 2069-2070 Fiscal Year.

3. For particulars as to each Rate and Method of Apportionment, see the attached a nd incorporated Appendix A.

It is my opinion that each Rate and Method of Apportionment, described above and set forth in Appendix A , is fair and reasonable.

This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC , and is herewith submitted to the Board pursuant to the applicable provisions of the Mello -Roos Community Facilities Act of 1982.

DATED March 3, 2026 WEBB MUNICIPAL FINANCE, LLC

By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
63 APPENDIX A
Rate and Method of Apportionment

64 RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 1)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 1 of the City of Chino (“City”) Community Facilities District No. 2026-1 (“CFD No. 2026-1”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 1 of CFD No. 2026-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

SECTION A

DEFINITIONS
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 the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax A Requirement and to the Special Tax B Requirement which are incurred by the City on behalf of Improvement Area No. 1 related to the determination of the amount of the levy of Special Tax A and Special Tax B, the collection of Special Tax A and Special Tax B including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area No. 1, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2026-1 relating to Improvement Area No. 1. “Administrator” means an official of the City, or designee thereof, responsible for, among other things, determining the annual amount of the levy and collection of the Special Tax A and Special Tax B.
“Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Approved Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) tha t have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
65 “Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 1. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below.
“Bonds” means those bonds issued by or on behalf of CFD No. 2026-1 Improvement Area No. 1, or any refunding thereof, to which Special Tax A within Improvement Area No. 1 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2026-1 which indicates the boundaries of Improvement Area No. 1 of CFD No. 2026-1.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2026-1” means Community Facilities District No. 2026-1 Improvement Area No. 1 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2026-1, or its designee.
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside -San Bernardino- Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
66 “Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” 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 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June

30. “Improvement Area No. 1” means Improvement Area No. 1 of CFD No. 2026-1, as identified on the boundary map for CFD No. 2026-1 Improvement Area No. 1. “Land Use Type” means Residential Property, Multifamily Residential Property, or Non - Residential Property.
“Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Developed Property, the maximum amount of Special Tax B, determined in accordance with Section I that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use. “Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H. “Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F, “Proportionately” means that the quotient of (a) Annual Special Tax A less the Assigned Annual Special Tax A divided by (b) the Backup Annual Special Tax A less the Assigned Annual Special Tax A, is equal for all applicable Assessor’s Parcels.
“Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions 67 of Section L, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section L. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2026-1. “Special Tax A” means any of the special taxes authorized to be levied on Taxable Property within Improvement Area No. 1 by CFD No. 2026-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with t he Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2026-1 by the levy on Developed Property of the Assigned Annual Special Tax A, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pur suant to any applicable fiscal agent agreement, or trust agreement.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2026-1 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for fu nds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Taxable Property” means all Assessor’s Parcels within Improvement Area No. 1, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.

SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
68 Each Fiscal Year, beginning with Fiscal Year 2026 -27, each Assessor’s Parcel within Improvement Area No. 1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as D eveloped Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAX A

1. Developed Property
The Maximum Special Tax A for each Assessor’s Parcel of Residential Property, Multifamily Residential Property, or Non-Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax A or (ii) the Backup Annual Special Tax A.

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property The Maximum Special Tax A for each Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax A.

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

1. Developed Property
Each Fiscal Year, each Assessor’s Parcel of Residential Property, Multifamily Residential Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax A.

The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Table below.
69 TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square
Footage Rate
Residential Property Less than 1,450 $3,280 per Unit
Residential Property 1,450 – 1,599 $3,425 per Unit
Residential Property 1,600 – 1,749 $3,570 per Unit
Residential Property 1,750 – 1,899 $3,715 per Unit
Residential Property 1,900 – 2,049 $3,860 per Unit
Residential Property Greater than 2,049 $4,005 per Unit Multifamily Residential Property N/A $216,060 per Acre
Non-Residential Property N/A $216,060 per Acre

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property Each Fiscal Year, each Assessor’s Parcel of Approved Property, Undeveloped Property, and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax A. The Assigned Annual Special Tax A rate for an Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property shall be determined pursuant to Table 2 below:

TABLE 2

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Minimum Taxable
Acreage Rate

4.75 $216,060 per Acre

SECTION E

BACKUP ANNUAL SPECIAL TAX A
At the time a Final Map is recorded, the City shall determine the Backup Annual Special Tax A for all Assessor’s Parcels classified or reasonably expected to be classified as Residential Property within such Final Map area shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property by the total Acreage of Taxable Property, excluding the Provisional Undeveloped Property Acreage area, or Multifamily Residential Property and/or Non- Residential Property Acreage area if any, in suc h Final Map area and any Acreage reasonably expected to be classified as Exempt Property, and dividing such amount by the total number of such Assessor’s Parcels of Residential Property. In no circumstance shall the total Acreage of Taxable Property in less than the acreage set forth in Table 2.

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.
70 Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map o r similar instrument, then the Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing Fiscal Year 2026 -27 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Tax A in accordance with the following steps:

Step One: The Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax A rates in Table 1 to satisfy the Special Tax A Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the applicable Assig ned Annual Special Tax A to satisfy the Special Tax A Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax A for Undeveloped Property applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the Annual Special Tax A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Annua l Special Tax A shall be increased Proportionately from the Assigned Annual Special Tax A up to 100% of the Backup Annual Special Tax A as needed to satisfy the Special Tax A Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of t he Assigned Annual Special Tax A applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

SECTION G

PREPAYMENT OF ANNUAL SPECIAL TAX A
The following definition applies to this Section G:
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with th e proceeds of prior prepayments of Maximum Special Tax A. 71 Prepayment:

The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Approved Property, an Assessor's Parcel of Undeveloped Property, and an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 1 in calculating the proper amount of a prepayment. Within fifteen (15) days of receipt of such non -refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

1. For an Assessor’s Parcel of Developed Property and Provisional Undeveloped Property, compute the Assigned Annual Special Tax A applicable to the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property, compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel.

For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, compute the present value of the remaining Annual Assigned Special Tax A payments using a discount rate that is eq ual to the weighted average interest rate on the Outstanding Bonds and the remaining term of the Outstanding Bonds determined by a Financial Advisor selected by the City.

For any prepayment that occurs prior to the first issuance of Bonds, the discount rate used in this calculation shall be 5.5% and the term shall be the period in which the Special Tax A may be levied as provided in Section K less ten years. This is the “Payoff Amount.”

2. For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax A computed pursuant to the first paragraph in paragraph 1 of this Section G for such Assessor's Parcel by 72 the sum of the estimated Assigned Annual Special Tax applicable to all Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.

3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.

4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the “Redemption Premium.”

5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

6. Determine the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium in State and Local Government Series Treasury Obligations until the earliest call date for the Outstanding Bonds.

7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”

8. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the “Administrative Fee.”

9. Calculate the “Reserve Fund Credit” as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting th e new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date.

Notwithstanding the foregoing, if the reserve fund requirement is satis fied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than zero.

10. The “Amount to Call Bonds” is equal to the sum of the Bond Redemption Amount, the Redemption Premium, and the Defeasance Cost, less the Reserve Fund Credit (the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds).

11. The Prepayment Amount is the sum of the Payoff Amount and the Administrative Fee.
73 12. From the Prepayment Amount, the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds pursuant to the fiscal agent agreement or escrow agreement; the Administrative Fee will be transferred to the Administrative Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement and used to pay administrative expenses; the remainder will be transferred to the Surplus Taxes Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement.

With respect to the Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area No. 1 that there has been a prepayment of the Special Tax A obligation and shall cause a suitable no tice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such Special Tax A shall cease.

Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property after such full prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual in terest and principal payments on all Outstanding Bonds in each future Fiscal Year. 74 SECTION H

PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX A
The Special Tax A obligation of an Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property, for which a building permit has been issued or is expected to be issued, as calculated in this Section H below, may be partially prepaid, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid.

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = PG x F
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.

With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the records of Improvement Area No. 1 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the partial release of the Special Tax A lien on such Asses sor’s Parcel, and the obligation of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.

Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly schedule d annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. 75 SECTION I

MAXIMUM SPECIAL TAX B

1. Developed Property
Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in the Table below.

On each July 1, commencing July 1, 2026, the Maximum Special Tax for Residential Property for the prior Fiscal Year shall be increased by (i) an amount equal to the percentage change increase in the Consumer Price Index for the twelve month period ending in March of the prior Fiscal Year, not to exceed 7%.

The Maximum Special Tax for Multifamily Residential Property and Non -Residential Property shall not increase.

TABLE 3

MAXIMUM SPECIAL TAX B RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square Footage Rate
Residential Property Less than 1,450 $590 per Unit
Residential Property 1,450 – 1,599 $602 per Unit
Residential Property 1,600 – 1,749 $620 per Unit
Residential Property 1,750 – 1,899 $650 per Unit
Residential Property 1,900 – 2,049 $679 per Unit
Residential Property Greater than 2,049 $697 per Unit
Multifamily Residential Property N/A $38,041 per Acre
Non-Residential Property N/A $38,041 per Acre

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property No Special Tax B shall be levied on Approved Property, Undeveloped Property, or Provisional Undeveloped Property.

3. Method of Apportionment of the Maximum Special Tax B Commencing with Fiscal Year 2026-27 and for each following Fiscal Year, the City shall levy the Special Tax B at up to 100% of the applicable Maximum Special Tax B, proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax B equals the Special Tax B Requirement.

SECTION J

PREPAYMENT OF ANNUAL SPECIAL TAX B
76 Special Tax B cannot be prepaid.

SECTION K

TERM OF SPECIAL TAX A AND SPECIAL TAX B
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax A shall be levied on all Assessor’s Parcels subject to the Annual Special Tax A. If any delinquent Annual Special Tax A amounts remain uncollected prior to or after all Bonds are r etired, the Annual Special Tax A may be levied to the extent necessary to reimburse Improvement Area No. 1 for uncollected Annual Special Tax A amounts associated with the levy of such Annual Special Tax A amounts, but not later than the 2069-70 Fiscal Year.

Special Tax B shall be levied in perpetuity as long as the Services are being provided.

SECTION L

EXEMPT PROPERTY
The City shall classify as Exempt Property, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) A ssessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restri cted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determined by the City Council.

Notwithstanding the foregoing, the City Council for purposes of levying the Special Tax A shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than the Acreage amounts listed in Table 4 below. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acreage amounts listed in Table 4 will be classified as Provisional Undeveloped Property, and will be subject to the levy of Special Tax A pursuant to Step Five in Section F.

TABLE 4

MINIMUM TAXABLE ACRES
Acres

4.75 77

SECTION M

APPEALS AND INTERPRETATIONS
Any property owner claiming that the amount or application of the Special Tax A or Special Tax B is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Tax A or Special Tax B that is disputed.

A representative(s) of CFD No. 2026-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of Special Tax A or Special Tax B, and r ule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner,
The representative shall take any of the following actions, in order of priority, to correct the error:
(i) if possible, amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, prior to the payment date, (ii) require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) grant a credit against, eliminate, or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

The City may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

SECTION N

MANNER OF COLLECTION
The Annual Special Tax A or Annual Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area No. 1 may collect Annual Special Tax A and Annual Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.

78 RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 2)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 2 of the City of Chino (“City”) Community Facilities District No. 2026-1 (“CFD No. 2026-1”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 2 of CFD No. 2026-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 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.

SECTION A

DEFINITIONS
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 the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax A Requirement and to the Special Tax B Requirement which are incurred by the City on behalf of Improvement Area No. 2 related to the determination of the amount of the levy of Special Tax A and Special Tax B, the collection of Special Tax A and Special Tax B including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area No. 2, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2026-1 relating to Improvement Area No. 2. “Administrator” means an official of the City, or designee thereof, responsible for, among other things, determining the annual amount of the levy and collection of the Special Tax A and Special Tax B.
“Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Approved Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) tha t have not 79 been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 2. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below.
“Bonds” means those bonds issued by or on behalf of CFD No. 2026-1 Improvement Area No. 2, or any refunding thereof, to which Special Tax A within Improvement Area No. 2 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2026-1 which indicates the boundaries of Improvement Area No. 2 of CFD No. 2026-1.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2026-1” means Community Facilities District No. 2026-1 Improvement Area No. 2 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2026-1, or its designee.
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside -San Bernardino- Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st 80 preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” 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 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June

30. “Improvement Area No. 2” means Improvement Area No. 2 of CFD No. 2026-1, as identified on the boundary map for CFD No. 2026-1 Improvement Area No. 2. “Land Use Type” means Residential Property, Multifamily Residential Property, or Non - Residential Property.
“Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Developed Property, the maximum amount of Special Tax B, determined in accordance with Section I that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use. “Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H. “Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F, “Proportionately” means that the quotient of (a) Annual Special Tax A less the Assigned Annual Special Tax A divided by (b) the Backup Annual Special Tax A less the Assigned Annual Special Tax A, is equal for all applicable Assessor’s Parcels.
81 “Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions of Section L, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section L. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2026-1. “Special Tax A” means any of the special taxes authorized to be levied on Taxable Property within Improvement Area No. 2 by CFD No. 2026-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with t he Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2026-1 by the levy on Developed Property of the Assigned Annual Special Tax A, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pur suant to any applicable fiscal agent agreement, or trust agreement.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2026-1 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for fu nds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Taxable Property” means all Assessor’s Parcels within Improvement Area No. 2, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.
82 SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2026 -27, each Assessor’s Parcel within Improvement Area No. 2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as D eveloped Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAX A

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Table below.
83 TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square
Footage Rate
Residential Property Less than 1,350 $3,875 per Unit
Residential Property 1,350 – 1,599 $4,005 per Unit
Residential Property 1,600 – 1,849 $4,135 per Unit
Residential Property 1,850 – 2,099 $4,265 per Unit
Residential Property Greater than 2,099 $4,395 per Unit Multifamily Residential Property N/A $231,863 per Acre
Non-Residential Property N/A $231,863 per Acre

TABLE 2

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Minimum Taxable
Acreage Rate

1.76 $231,863 per Acre

SECTION E

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.
84 Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map o r similar instrument, then the Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

SECTION G

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 2 in calculating the proper amount of a prepayment. Within fifteen (15) days of receipt of such non -refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

2. For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax A computed pursuant to the first paragraph in paragraph 1 of this Section G for such Assessor's Parcel by 86 the sum of the estimated Assigned Annual Special Tax applicable to all Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.

3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.

5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”

11. The Prepayment Amount is the sum of the Payoff Amount and the Administrative Fee.
87 12. From the Prepayment Amount, the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds pursuant to the fiscal agent agreement or escrow agreement; the Administrative Fee will be transferred to the Administrative Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement and used to pay administrative expenses; the remainder will be transferred to the Surplus Taxes Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement.

With respect to the Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area No. 2 that there has been a prepayment of the Special Tax A obligation and shall cause a suitable no tice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such Special Tax A shall cease.

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = PG x F
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.

With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the records of Improvement Area No. 2 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the partial release of the Special Tax A lien on such Asses sor’s Parcel, and the obligation of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.

MAXIMUM SPECIAL TAX B

1. Developed Property
Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in the Table below.

The Maximum Special Tax for Multifamily Residential Property and Non -Residential Property shall not increase.

TABLE 3

MAXIMUM SPECIAL TAX B RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square Footage Rate
Residential Property Less than 1,350 $572 per Unit
Residential Property 1,350 – 1,599 $584 per Unit
Residential Property 1,600 – 1,849 $632 per Unit
Residential Property 1,850 – 2,099 $650 per Unit
Residential Property Greater than 2,099 $702 per Unit
Multifamily Residential Property N/A $35,521 per Acre
Non-Residential Property N/A $35,521 per Acre

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property No Special Tax B shall be levied on Approved Property, Undeveloped Property, or Provisional Undeveloped Property.

SECTION J

PREPAYMENT OF ANNUAL SPECIAL TAX B
Special Tax B cannot be prepaid.
90 SECTION K

TERM OF SPECIAL TAX A AND SPECIAL TAX B
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax A shall be levied on all Assessor’s Parcels subject to the Annual Special Tax A. If any delinquent Annual Special Tax A amounts remain uncollected prior to or after all Bonds are r etired, the Annual Special Tax A may be levied to the extent necessary to reimburse Improvement Area No. 2 for uncollected Annual Special Tax A amounts associated with the levy of such Annual Special Tax A amounts, but not later than the 2069-70 Fiscal Year.

Special Tax B shall be levied in perpetuity as long as the Services are being provided.

SECTION L

TABLE 4

MINIMUM TAXABLE ACRES
Acres

1.76 91

SECTION M

A representative(s) of CFD No. 2026-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of Special Tax A or Special Tax B, and r ule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner,
The representative shall take any of the following actions, in order of priority, to correct the error:
(i) if possible, amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, if prior to the payment date, (ii) require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) grant a credit against, eliminate, or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

The City may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

SECTION N

MANNER OF COLLECTION
The Annual Special Tax A or Annual Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area No. 2 may collect Annual Special Tax A and Annual Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.

92 RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 3)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 3 of the City of Chino (“City”) Community Facilities District No. 2026-1 (“CFD No. 2026-1”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 3 of CFD No. 2026-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 3, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

SECTION A

DEFINITIONS
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 the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax A Requirement and to the Special Tax B Requirement which are incurred by the City on behalf of Improvement Area No. 3 related to the determination of the amount of the levy of Special Tax A and Special Tax B, the collection of Special Tax A and Special Tax B including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area No. 3, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2026-1 relating to Improvement Area No. 3. “Administrator” means an official of the City, or designee thereof, responsible for, among other things, determining the annual amount of the levy and collection of the Special Tax A and Special Tax B.
“Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Approved Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) tha t have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
93 “Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 3. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below.
“Bonds” means those bonds issued by or on behalf of CFD No. 2026-1 Improvement Area No. 3, or any refunding thereof, to which Special Tax A within Improvement Area No. 3 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2026-1 which indicates the boundaries of Improvement Area No. 3 of CFD No. 2026-1.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2026-1” means Community Facilities District No. 2026-1 Improvement Area No. 3 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2026-1, or its designee.
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside -San Bernardino- Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
94 “Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” 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 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June

30. “Improvement Area No. 3” means Improvement Area No. 3 of CFD No. 2026-1, as identified on the boundary map for CFD No. 2026-1 Improvement Area No. 3. “Land Use Type” means Residential Property, Multifamily Residential Property, or Non - Residential Property.
“Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Developed Property, the maximum amount of Special Tax B, determined in accordance with Section I that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use. “Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H. “Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F, “Proportionately” means that the quotient of (a) Annual Special Tax A less the Assigned Annual Special Tax A divided by (b) the Backup Annual Special Tax A less the Assigned Annual Special Tax A, is equal for all applicable Assessor’s Parcels.
“Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions 95 of Section L, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section L. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2026-1. “Special Tax A” means any of the special taxes authorized to be levied on Taxable Property within Improvement Area No. 3 by CFD No. 2026-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with t he Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2026-1 by the levy on Developed Property of the Assigned Annual Special Tax A, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pur suant to any applicable fiscal agent agreement, or trust agreement.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2026-1 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for fu nds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Taxable Property” means all Assessor’s Parcels within Improvement Area No. 3, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.

SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
96 Each Fiscal Year, beginning with Fiscal Year 2026 -27, each Assessor’s Parcel within Improvement Area No. 3 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as D eveloped Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAX A

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Table below.
97 TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square
Footage Rate
Residential Property Less than 1,700 $3,650 per Unit
Residential Property 1,700 – 1,799 $3,755 per Unit
Residential Property Greater than 1,799 $3,860 per Unit Multifamily Residential Property N/A $226,726 per Acre
Non-Residential Property N/A $226,726 per Acre

TABLE 2

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Minimum Taxable
Acreage Rate

2.29 $226,726 per Acre

SECTION E

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.

Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map o r similar instrument, then the 98 Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

SECTION G

Prepayment:
99 The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Approved Property, an Assessor's Parcel of Undeveloped Property, and an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 3 in calculating the proper amount of a prepayment. Within fifteen (15) days of receipt of such non -refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

1. For an Assessor’s Parcel of Developed Property and Provisional Undeveloped Property, compute the Assigned Annual Special Tax A applicable to the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property, compute the Assigned Annual Special Tax A a s though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel.

2. For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax A computed pursuant to the first paragraph in paragraph 1 of this Section G for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all 100

Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.

3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.

5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”

11. The Prepayment Amount is the sum of the Payoff Amount and the Administrative Fee.

12. From the Prepayment Amount, the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds pursuant to the 101

fiscal agent agreement or escrow agreement; the Administrative Fee will be transferred to the Administrative Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement and used to pay administrative expenses; the remainder will be transferred to the Surplus Taxes Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement.

With respect to the Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area No. 3 that there has been a prepayment of the Special Tax A obligation and shall cause a suitable no tice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such Special Tax A shall cease.

SECTION H

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = PG x F
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.

With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the records of Improvement Area No. 3 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the partial release of the Special Tax A lien on such Asses sor’s Parcel, and the obligation of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.

SECTION I

MAXIMUM SPECIAL TAX B

1. Developed Property
Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in the Table below.

The Maximum Special Tax for Multifamily Residential Property and Non -Residential Property shall not increase.

TABLE 3

MAXIMUM SPECIAL TAX B RATES

FOR DEVELOPED PROPERTY
Land Use Type Building Square Footage Rate
Residential Property Less than 1,700 $633 per Unit
Residential Property 1,700 – 1,799 $645 per Unit
Residential Property Greater than 1,799 $675 per Unit
Multifamily Residential Property N/A $39,304 per Acre
Non-Residential Property N/A $39,304 per Acre

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property No Special Tax B shall be levied on Approved Property, Undeveloped Property, or Provisional Undeveloped Property.

SECTION J

PREPAYMENT OF ANNUAL SPECIAL TAX B
Special Tax B cannot be prepaid.

SECTION K

TERM OF SPECIAL TAX A AND SPECIAL TAX B
104

For each Fiscal Year that any Bonds are outstanding the Annual Special Tax A shall be levied on all Assessor’s Parcels subject to the Annual Special Tax A. If any delinquent Annual Special Tax A amounts remain uncollected prior to or after all Bonds are r etired, the Annual Special Tax A may be levied to the extent necessary to reimburse Improvement Area No. 3 for uncollected Annual Special Tax A amounts associated with the levy of such Annual Special Tax A amounts, but not later than the 2069-70 Fiscal Year.

Special Tax B shall be levied in perpetuity as long as the Services are being provided.

SECTION L

TABLE 4

MINIMUM TAXABLE ACRES
Acres

2.29 105

SECTION M

A representative(s) of CFD No. 2026-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of Special Tax A or Special Tax B, and r ule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner,
The representative shall take any of the following actions, in order of priority, to correct the error:
(i) if possible, amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, if prior to the payment date, (ii) require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) grant a credit against, eliminate, or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

The City may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

SECTION N

MANNER OF COLLECTION
The Annual Special Tax A or Annual Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area No. 3 may collect Annual Special Tax A and Annual Special Tax B at a different time or in a different manner if necessary to meet its financial obligations 106

APPENDIX B
Recorded Boundary Map

107
108
109
110

1 EXHIBIT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 1)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 1 of the City of Chino (“City”) Community Facilities District No. 2026 -1 (“CFD No. 2026-1”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 1 of CFD No. 2026-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

SECTION A

2 been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 1. “Assessor’s Parcel Map” means an official map of the Assesso r of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below.
“Bonds” means those bonds issued by or on behalf of CFD No. 2026 -1 Improvement Area No. 1, or any refunding thereof, to which Special Tax A within Improvement Area No. 1 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2026-1 which indicates the boundaries of Improvement Area No. 1 of CFD No. 2026-1.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2026 -1” means Community Facilities District No. 2026 -1 Improvement Area No. 1 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2026-1, or its designee.
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside -San Bernardino- Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st 112

3 preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” 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 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June

4 “Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions of Section L, but cannot be classified as Exempt Pr operty because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section L. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm pr otection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2026-1. “Special Tax A” means any of the special taxes authorized t o be levied on Taxable Property within Improvement Area No. 1 by CFD No. 2026-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or repl enish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2026 -1 by the levy on Developed Property of the As signed Annual Special Tax A, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pursuant to any applicable fiscal agent agreement, or trust agreement.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2026-1 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Taxable Property” means all Assessor’s Parcels within Improvement Area No. 1, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.
114

5 SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2026 -27, each Assessor’s Parcel within Improvement Area No. 1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAX A

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

The Assigned Annual Special Tax A applicable to an Assessor's Pa rcel of Developed Property shall be determined using the Table below.
115

6 TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property Each Fiscal Year, each Assessor’s Parcel of Approved Property, Undeveloped Property, and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax A. The Assigned Annual Special Tax A rate for an Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undevelop ed Property shall be determined pursuant to Table 2 below:

TABLE 2

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Minimum Taxable
Acreage Rate

4.75 $216,060 per Acre

SECTION E

BACKUP ANNUAL SPECIAL TAX A
At the time a Final Map is recorded, the City shall determine the Backup Annual Special Tax A for all Assessor’s Parcels classified or reasonably expected to be classified as Residential Property within such Final Map area shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property by the total Acreage of Taxable Property, excluding the Provisional Undeveloped Property Acreage area, or Multifamily Residential Property and/or Non- Residential Property Acreage area if any, in such Final Map area and any Acreage reasonably expected to be classified as Exempt Property, and dividing such amount by the total number of such Assessor’s Parcels of Residential Property. In no circumstance shall the total Acreag e of Taxable Property in less than the acreage set forth in Table 2.

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.
116

7 Notwithstanding the foregoing, if Assessor’s Parcels which are clas sified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map or similar instrument, then the Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing Fiscal Year 20 26-27 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Tax A in accordance with the following steps:

Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Annual Special T ax A shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the applicable Assigned Annual Special Tax A to satisfy the Special Tax A Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the Annual Special Tax A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Annual Special Tax A shall be increased Proportionately from the Assigned Annual Special Tax A up to 100% of the Backup Annual Special Tax A as needed to satisfy the Special Tax A Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax A applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

SECTION G

PREPAYMENT OF ANNUAL SPECIAL TAX A
The following definition applies to this Section G:
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Tax A. 117

8 Prepayment:

The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Approved Property, an Assessor's Parcel of Undeveloped Property, and an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special T ax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 1 in calculating the pr oper amount of a prepayment. Within fifteen (15) days of receipt of such non -refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calc ulated according to the following formula (capitalized terms defined below):

Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, compute the present value of the remaining Annual Assigned Special Tax A payments using a discount rate that is equal to the weighted average interest rate on the Outstanding Bonds and the remaining term of the Outstanding Bonds determined by a Financial Advisor selected by the City.

9 the sum of the estimated Assigned Annual Special Tax applicable to all Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.

3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.

5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”

9. Calculate the “Reserve Fund Cre dit” as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in ef fect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date.

Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other ins trument at the time of the prepayment, then no Reserve Fund Credit shall be given. Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than zero.

11. The Prepayment Amount is the sum of the Payoff Amount and the Administrative Fee.
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10 12. From the Prepayment Amount, the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds pursuant to the fiscal agent agreement or escrow agreement; the Administrative Fee will be transferred to the Administrative Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement and used to pay administrative expenses; the remainder will be transferred to the Surplus Taxes Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement.

With respect to the Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area No. 1 that there has been a prepayment of the Special Tax A obl igation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such Special Tax A shall cease.

Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property after such full prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all Outstanding Bonds in each future Fiscal Year. 120

11 SECTION H

The Partial Prepayment Amount shall be calculated according to the following formula:

PP = PG x F
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.

With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the records of Improvement Area No. 1 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and the part ial release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.

Notwithstanding the foregoing, no partial prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. 121

12 SECTION I

MAXIMUM SPECIAL TAX B

1. Developed Property
Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in the Table below.

The Maximum Special Tax for Multifamily Residential Property and Non -Residential Property shall not increase.

TABLE 3

MAXIMUM SPECIAL TAX B RATES

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property No Special Tax B shall be levied on Approved Property, Undeveloped Property, or Provisional Undeveloped Property.

3. Method of Apportionment of the Maximum Special Tax B Commencing with Fiscal Year 2026-27 and for each following Fiscal Year, the City shall levy the Special Tax B at up to 100 % of the applicable Maximum Special Tax B, proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax B equals the Special Tax B Requirement.

SECTION J

PREPAYMENT OF ANNUAL SPECIAL TAX B
122

13 Special Tax B cannot be prepaid.

SECTION K

TERM OF SPECIAL TAX A AND SPECIAL TAX B
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax A shall be levied on all Assessor’s Parcels subject to the Annual Special Tax A. If any delinquent Annual Special Tax A amounts remain uncollected prior to or after all Bonds are retired, the Annual Special Tax A may be levied to the extent necessary to reimburse Improvement Area No. 1 for uncollected Annual Special Tax A amounts associated with the levy of such Annual Special Tax A amounts, but not later than the 2069-70 Fiscal Year.

Special Tax B shall be levied in perpetuity as long as the Services are being provided.

SECTION L

EXEMPT PROPERTY
The City shall classify as Exempt Property, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utilit y easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) other types of public uses determin ed by the City Council.

Notwithstanding the foregoing, the City Council for purposes of levying the Special Tax A shall not classify an Assessor's Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than th e Acreage amounts listed in Table 4 below. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acreage amounts listed in Table 4 will be classified as Provisional Undeveloped Property, and will be subject to the levy of Special Tax A pursuant to Step Five in Section F.

TABLE 4

MINIMUM TAXABLE ACRES
Acres

4.75 123

14 SECTION M

A representative(s) of CFD No. 2026-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of Special Tax A or Special Tax B, and r ule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner,
The representative shall take any of the following actions, in order of priority, to correct the error:
(i) if possible, amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, if prior to the payment date, (ii) require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) grant a credit against, eliminate, or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

The City may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

SECTION N

124

1 EXHIBIT D

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-1

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 2)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 2 of the City of Chino (“City”) Community Facilities District No. 2026 -1 (“CFD No. 2026-1”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 2 of CFD No. 2026-1 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 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.

SECTION A

2 been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 2. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below.
“Bonds” means those bonds issued by or on behalf of CFD No. 2026 -1 Improvement Area No. 2, or any refund ing thereof, to which Special Tax A within Improvement Area No. 2 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2026-1 which indicates the boundaries of Improvement Area No. 2 of CFD No. 2026-1.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2026 -1” means Community Facilities District No. 2026 -1 Improvement Area No. 2 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2026-1, or its designee.
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside -San Bernardino- Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st 126

4 “Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions of Section L, but cannot be classified as Ex empt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section L. “Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and s torm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2026-1. “Special Tax A” means any of the special taxes autho rized to be levied on Taxable Property within Improvement Area No. 2 by CFD No. 2026-1 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or re plenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2026 -1 by the levy on Developed Property of the Assigned Annual Special Tax A, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available t o pay debt service or other periodic costs on the Bonds pursuant to any applicable fiscal agent agreement, or trust agreement.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay fo r Services as required to meet the needs of CFD No. 2026-1 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Taxable Property” means all Assessor’s Parcels within Improvement Area No. 2, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.
128

5 SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2026 -27, each Assessor’s Parcel within Improvement Area No. 2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as D eveloped Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.

SECTION C

MAXIMUM SPECIAL TAX A

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Table below.
129

6 TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES

TABLE 2

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Minimum Taxable
Acreage Rate

1.76 $231,863 per Acre

SECTION E

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.
130

7 Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified a s Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map or similar instrument, then the Backup Annual Special Tax A shall be recalculated within the are a that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

Step One: The Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applica ble Assigned Annual Special Tax A rates in Table 1 to satisfy the Special Tax A Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Annual Special Tax A shall be levie d Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the applicable Assigned Annual Special Tax A to satisfy the Special Tax A Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the Annual Special Tax A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Annual Special Tax A shall be increased Proportionately from the Assigned Annual Special Tax A up to 100% of the Backup Annual Special Tax A as needed to satisfy the Special Tax A Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Proper ty up to 100% of the Assigned Annual Special Tax A applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

SECTION G

PREPAYMENT OF ANNUAL SPECIAL TAX A
The following definition applies to this Section G:
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date w ith the proceeds of prior prepayments of Maximum Special Tax A. 131

8 Prepayment:

The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Approved Property, an Assessor's Parcel of Undeveloped Property, and an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be p repaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent t o prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 2 in calculating the proper amount of a prepayment. Within fifteen (15) days of receipt of such non -refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.