Corona City Council
September 17, 2025

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 Policies governing initial and continuing disclosure to investors.

Investment Policy. The City invests its funds in accordance with the City’s investment policy (the “Investment Policy”), which was most recently reviewed and revised by the City Council on June 18, 2025. The Investment Policy: (a) describes the policies and procedures to be utilized in the City’s investment management system; (b) establishes guidelines for the prudent investment of the City’s funds, and (c) lists and describes suitable investments. The goals of the City’s investment policy are to meet the City’s short and long-term cash flow demands in a manner which will provide for the safety of principal and sufficient liquidity, while providing a suitable investment return.

In accordance with Section 53600 et seq. of the California Government Code, idle cash management and investment transactions are the responsibility of the City Treasurer. Eligible investments include the Local Agency Investment Fund which is operated by the California State Treasurer, local agency bonds rated “A” or better (limited to 25% of the portfolio), money market mutual funds (limited to 20% of the portfolio), federal agency or government-sponsored enterprise securities (limited to 5-year maximum maturities and 75% of the portfolio), United States Treasury obligations (limited to 5-year maximum maturities), medium-term corporate notes (limited to 5-year maximum maturities and 30% of the portfolio), negotiable certificates of deposit (limited to 3-year maximum maturities and 20% of the portfolio), banker’s acceptances (limited to 180-day maximum maturities and 20% of the portfolio) and commercial paper (limited to 270-day maximum maturities and 25% of the portfolio). Funds are invested in the following order of priority:
 Safety of Principal;
 Liquidity; and
 Return on Investment.

The Treasurer is required to provide a monthly report to the City Council showing the type of investment, date of maturity, amount invested, current market value, rate of interest and other such information as may be requested by the City Council.

Approximately $51.8 million (10.2%) of the City’s total investment portfolio as of June 30, 2024 was attributed to the Wastewater Enterprise.

Reserve Policy for Utilities Department Operating Funds. The City’s Reserve Policy for Utilities Department Operating Funds was originally established in 2023. The policy establishes a target reserve amount for the Sewer Utility Fund equal to 90 days of operating expenses plus the current annual depreciation amount. To build the target reserve amount, the Utilities Department will annually contribute 10% of the difference between the Sewer Utility Fund’s actual operating revenues and actual operating expenses until the target reserve amount is met. Amounts in the reserve may be used as follows: (i) as needed in the event of a local, state or federal emergency declaration; (ii) for emergency projects; (iii) to fulfill debt obligations; (iv) to phase in the impact of unforeseen cost increases, such as significant increases in imported water costs, energy costs and other significant expense fluctuations; and (v) to address unexpected revenue shortfalls. As of June 30, 2024, $1,325,448 was held in the Sewer Utility Fund reserve and the City estimates approximately $1,834,530 was held in the Sewer Utility Fund reserve as of June 30, 2025.

Pension Stabilization Trust Investment Policy. The City Council has adopted a Pension Stabilization Trust Policy (the “Pension Policy”), which was most recently reviewed and revised by the City Council on June 18, 2025. The Pension Policy is intended to provide guidelines for the investment of funds in the City’s Pension Benefits Trust. See the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Employee Benefits—Pension Obligations.”
Under the Pension Policy, the City Treasurer, City Manager, Assistant City Manager, Finance Director, and Accounting Manager annually review changes in the demographics of participants in its pension plans, amendments to plan provisions that may have a material effect on cash flow needs or the investment

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horizon, proposed changes in asset allocations and pension plan actuarial reports, in order to determine whether to adjust investments in the Pension Benefits Trust while ensuring the long-term growth of assets therein, the safety of principal and liquidity. The Pension Policy also establishes guidelines for the retention of an Investment Manager.

Funds in the Pension Benefits Trust must be invested as follows: (i) no more than 5% of the portfolio may be invested in any single security; and (ii) cash and fixed income securities may comprise 10%-30% of the portfolio, while global equities may comprise 50%-80% of the portfolio. Certain investments, including margin purchases, non-United States dollar denominated securities, hedge funds and direct investments in commodities futures contracts, are prohibited. As of June 30, 2024, the City held $46,483,830 in the Pension Benefits Trust and the City estimates approximately $54,892,853 was held in the Pension Benefits Trust as of June 30, 2025
Employees
As of June 30, 2024, the Utilities Department had 120.65 full-time equivalent employees (“FTEs”), with responsibility for the Wastewater Enterprise and other public works functions (including 47.26 FTEs who work exclusively on behalf of the Wastewater Enterprise). City employees who work on behalf of the Wastewater Enterprise are represented by the Corona Public Service Employees Association and the Corona Supervisors Association. The current memoranda of understanding between the City and these employee associations expire on December 31, 2027. Management and confidential employees are exempt from collective bargaining. The City has never experienced a work stoppage or other employee action.

Budget Process
The City prepares and adopts a balanced budget for each Fiscal Year which includes proposed expenditures and the means of financing such expenditures. The Corona Municipal Code requires the City Manager to prepare and submit an annual budget to the City Council for approval. Under policy directive and guidance, the budget is developed based upon (i) guidance and policy direction provided by the City Council through the City Manager; (ii) a long-term financial plan which reviews at least three years of actual results with a 5-year economic and financial outlook; (iii) the 2021-2026 Citywide Strategic Plan; and (iv) federal, State, and local law and emerging issues.

The budget process begins in January of each year. Finance staff works in cooperation with all City departments to formulate revenue projections for the upcoming Fiscal Year. From this information, the individual departments use the projected revenues and existing fund balance information to prioritize and recommend departmental budgets to meet the next Fiscal Year’s objectives. The City Manager and Finance staff review each budget proposal, revenue assumptions and all current financial obligations before presenting the proposed budget to the City Council. Prior to approval of the budget, the City Council generally conducts public workshops to obtain comments from residents and ratepayers.

Budget amendments within departments are approved by department directors as long as the amendment does not increase the department’s overall spending authority as dictated by the current budget.

Any amendment which increases spending authority must obtain City Council approval by majority vote.

Amendments in the Capital Budget may be approved by department directors, within the same funding source and for similar projects, not exceeding 10% of the transferring project budget. Amendments that increase the City’s Capital Budget also require City Council approval.

The City Council adopted the budget for Fiscal Year 2026 on June 4, 2025.

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Wastewater Enterprise Insurance
Insurance for the Wastewater Enterprise is maintained by the City through Joint Powers Insurance Agencies and/or commercial carriers as follows:

Property Damage. Coverage is maintained for losses of up to $1,250,000,000, subject to policy exclusions, sub-limits and various deductibles of up to $5,000,000, including an “all-risk” deductible of $50,000 and a $500,000 deductible for wildfires. Coverage for vehicles is provided at actual cash value (as opposed to replacement value) and coverage off-premises is provided only for vehicles with a value of $100,000 or more. The Wastewater Enterprise does not maintain coverage for earthquake damage or flood damage. Also, certain portions of the Wastewater Enterprise are excluded from coverage, including, but not limited to, pipelines not in the vicinity of above-ground infrastructure.

General Liability. The Wastewater Enterprise is self insured up to $1,000,000 and maintains excess coverage for losses between $1,000,000 to $25,000,000, subject to certain exclusions. The general liability policy includes automobile liability and public officials errors and omissions coverage.

Workers Compensation. The City is self insured up to $1,000,000 and has purchased excess insurance for claims between $1,000,000 and the statutorily required maximum Other Insurance Coverage. The City also currently maintains coverage for: (1) Master Government Crime up to $25,000,000 per occurrence, with a deductible of $2,500 per occurrence; (2) Enhanced Pollution Liability up to $10,000,000 per pollution condition, with a self-insured retention of $250,000 per pollution condition; and (3) enhanced cybersecurity insurance. The City has not settled any claims that exceeded its insurance coverage in the past three years.

No assurance can be given as to the adequacy of the insurance maintained now or in the future by the City to fund necessary repairs or replacement of any portion of the Wastewater Enterprise, and the City does not have any obligation under the Indenture to maintain earthquake or flood coverage or to maintain any insurance in the current coverage amounts. Significant damage to the Wastewater Enterprise could affect the City’s ability to generate sufficient Net Revenues to pay the 2025 Bonds.

Other Obligations
No Senior Obligations. The Utility Authority has no obligations that are payable from Net Revenues on a senior basis to the 2025 Bonds.

Parity Obligations. In February 2014, the City and the SWRCB entered into the 2014 SRF Loan to finance the construction of the tertiary filtration project at the Water Reclamation Facility No. 2 (the “2014 SRF Loan”). The 2014 SRF Loan was entered into in the initial principal amount of $11,259,585, of which $8,902,031 was outstanding as of June 30, 2025. The 2014 SRF Loan bears interest at the rate of 2.10% per annum and is payable in annual installments of approximately $509,441, with a final payment in Fiscal Year 2047. Payments under the 2014 SRF Loan are payable from Net Revenues on a parity with the 2025 Bonds.

See the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage.” Direct Costs and Allocated Costs. While the Utility Authority does not have any obligations payable from Net Revenues on a senior basis to the 2025 Bonds, as described under the caption “SECURITY FOR THE 2025 BONDS,” the Utility Authority does have certain obligations which are payable as either Direct Costs or Allocated Costs of the Wastewater Enterprise, which are deducted from Gross Revenues prior to the payment of debt service on the 2025 Bonds and the 2014 SRF Loan, and may incur additional Direct Costs or Allocated Costs in the future. Such Direct Costs include, among other things, the Wastewater Enterprise’s share of WRCRWA’s operating budget, all as described under the caption “THE WASTEWATER

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ENTERPRISE—Western Riverside County Regional Wastewater Authority Treatment Plant.” The Wastewater Enterprise’s capital contributions to WRCRWA for its capacity right to the infrastructure, including the Wastewater Enterprise’s share of debt service on the WRCRWA state loan, are not Direct Costs of the Wastewater Enterprise and are paid after debt service on the 2025 Bonds and payments under the 2014 SRF Loan.

Financial Statements
A copy of the most recent audited financial statements of the City prepared by the Pun Group, Santa Ana, California (the “Auditor”) is set forth in Appendix A. The Auditor’s letter dated December 4, 2024, is located at the beginning of the Financial Section therein.

The summary operating results that are contained under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Historical Operating Results and Debt Service Coverage” are derived from these financial statements and audited financial statements for prior Fiscal Years (excluding certain non-cash items and after certain other adjustments), and are qualified in their entirety by reference to such statements, including the notes thereto.

The City accounts for moneys received and expenses paid in accordance with Generally Accepted Accounting Principles applicable to governmental agencies (“GAAP”). Generally, the City recognizes revenues and expenses on the full accrual basis of accounting, meaning that revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period in which they are incurred, regardless of when the related cash flows take place. However, in certain cases, GAAP requires or permits moneys that are collected in one Fiscal Year to be recognized as revenue in a subsequent Fiscal Year and requires or permits expenses that are paid or incurred in one Fiscal Year to be recognized as expenses in a subsequent Fiscal Year. See Note 1.B to the financial statements that are set forth in Appendix A. Except as otherwise expressly noted herein, all financial information that has been derived from the City’s audited financial statements reflects the application of GAAP.

The City’s audited financial statements refer to the Sewer Enterprise Fund to account for the operations of the Wastewater Enterprise Fund. The Sewer Enterprise Fund of the City, which is referred to as the Wastewater Enterprise Fund in the Indenture and this Official Statement, has a separate set of selfbalancing accounts and is accounted for as a proprietary fund type (enterprise fund) using the economic resources measurement focus. In governmental accounting, enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are to be financed or recovered primarily through user charges, or where periodic determination of revenues earned, expenses incurred and/or net income is deemed appropriate for capital maintenance, public policy, management control, accountability or other purposes.

THE WASTEWATER ENTERPRISE
General
The Wastewater Enterprise includes approximately 44 miles of wastewater mains, 15 lift stations, 23 miles of force mains and 443 miles of gravity-fed pipelines ranging in size from 6 inches to 42 inches in diameter, the majority of which were constructed in the 1980s and 1990s. The Wastewater Enterprise has a total treatment capacity of approximately 18.12 million gallons per day (“mgd”) and treats an average of approximately 11.9 mgd of wastewater at four facilities: (i) Water Reclamation Facility #1 (“WRF 1”); (ii) Water Reclamation Facility #2 (“WRF 2”); (iii) Water Reclamation Facility #3 (“WRF 3”); and (iv) the WRCRWA Treatment Plant.

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As described further under the caption “—City Treatment and Transmission Facilities,” WRF 1, WRF 2 and WRF 3 are operated by the City and wastewater flow from WRF 1, WRF 2 and WRF 3 is fully interconnected and the sludge from each facility is currently treated at WRF 1 alone. As described further under the caption “—Western Riverside County Regional Wastewater Authority Treatment Plant,” the WRCRWA Treatment Plant is self-contained and processes its own sludge. WRCRWA has its own conveyance system and the Wastewater Enterprise owns 2.62 mgd capacity in the WRCRWA conveyance system.

Table 1
City of Corona
Daily Average Flow and Maximum Capacity
Treatment Plant Daily Average Flow (mgd) Maximum Capacity Water Reclamation Facility 1 8.15 11.50
Water Reclamation Facility 2 2.00 3.00
Water Reclamation Facility 3(1) 0.70 1.00
WRCRWA Treatment Plant(2) 1.00 2.62
Total 11.85 18.12

(1) As described under the caption “—City Treatment and Transmission Facilities,” the City is currently in the process of decommissioning WRF 3.
(2) As described further under the caption “—Western Riverside County Regional Wastewater Authority Treatment Plant,” the WRCRWA Treatment Plant is operated by WRCRWA and the City has purchased a 2.62 MGD capacity in the WRCRWA Treatment Plant.

Source: City.

City Treatment and Transmission Facilities
Water Reclamation Facility #1. WRF 1 was last expanded in 1998 and has a permitted capacity of

11.5 mgd and treats an average of 8.15 mgd. Primary, secondary and tertiary treatment processes are employed at WRF 1. Secondary treatment is carried out at two separate plants within WRF 1, Plant 1A and Plant 1B. The sludge from each of WRF 2 and WRF 3 are treated at WRF 1.

Plant 1A, which has a capacity of 5.5 mgd, provides a biological nitrogen removal activated sludge and secondary clarification process consisting of (i) two primary sedimentation tanks, each with a surface area of 2,400 square feet; (ii) three aeration tanks configured in a serpentine flow pattern, each with an aeration zone and an anoxic zone; and (iii) and six secondary clarifiers, each with a surface area of 1,836 square feet.

Plant 1B, which has a capacity of 6.0 mgd, provides a biological nitrogen removal activated sludge and secondary clarification process consisting of (i) two oxidation ditches, each with a volume of 3,700,000 gallons; and (ii) two clarifiers, each with a surface area of 12,076 square feet.

Plants 1A and 1B share the following: (i) a common equalization basin for tertiary treatment; (ii) twelve tertiary filter cells, each with a surface area of 200 square feet; (iii) two chlorine contact tanks; (iv) two gravity belt thickeners, with flow limited through sludge drum screens to 200 gallons per minute; (v) two primary digesters and one secondary digester, each with an approximate capacity of 19,500 gallons per day; and (vi) a headworks that splits wastewater into three channels, two of which have mechanical bar screens.

Secondary effluent from Plants 1A and 1B is sent to WRF 1’s tertiary treatment facility. The tertiary treatment process produces reclaimed water that meets the standards of Chapter 3 of Division 4 of Title 22 of the California Code of Regulations (“Title 22”) and is used for irrigation, discharged to Butterfield Drain, a tributary of Temescal Creek, or sent to the Utility Authority’s Lincoln Avenue and Cota Street percolation ponds. The Utility Authority’s reclaimed water system does not constitute part of the Wastewater Enterprise and neither the expenses nor revenues of the reclaimed water system are reflected in the Wastewater

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Enterprise’s revenues and expenses set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION.” The maximum flow to the tertiary facility is 15.0 mgd.

WRF 1’s treatment process consists of six steps, including: (a) screenings and major solids removal; (b) primary clarification, in which sedimentation basins slow the wastewater’s velocity so that organic particles and grease can be removed to reduce the strength of the wastewater; (c) aeration, in which the wastewater is oxygenated to sustain reproduction and growth of bacteria (micro-organism mass) that consume the organic wastes; (d) secondary clarification, in which the wastewater’s velocity is slowed down again to allow the micro-organism mass to settle for collection and return to aeration to further consume organic material; (e) filtering, in which sand filters remove suspended solids; and (f) disinfection.

The City leases the site on which WRF 1 is located pursuant to a 1967 Lease (the “WRF 1 Site Lease”) with the United States Army Corps of Engineers (“USACE”). Under the WRF 1 Site Lease, the City is not permitted to assign or sublet its interest without USACE’s approval. The WRF 1 Site Lease may be terminated by the Secretary of the Army upon reasonable notice to the City if the Secretary of the Army deems such termination to be in the interest of public health and safety, although the City believes that USACE is highly unlikely to terminate the WRF 1 Site Lease prior to its scheduled expiration dates of the current lease or future leases primarily because WRF 1’s purpose is the protection of public health.

In 2023, the City signed an Easement Agreement with USACE (the “Easement Agreement”) granting the City another lease for an additional 35 years for the WRF 1 site, beginning retroactively on September 28, 2022, and ending September 27, 2057. Under the Easement Agreement, the City will provide in-kind consideration by completing certain operations and maintenance projects on the premises with the total cost of such projects being approximately equivalent to the sum of $11,543,000, which is the mutually agreed upon value of the easement. The consideration will be provided over a period of seven years, with projects totaling approximately $2,000,000 per year in years 1-4, and projects totaling $1,000,000 per year in years 5-7.

At the end of year 7, if the total $11,543,000 has not been spent on in-kind projects, then the remaining funds will be paid out to the USACE.

Water Reclamation Facility #2. WRF 2 became operational in 1988 and has a permitted capacity of

3.0 mgd and treats an average of 2.0 mgd. WRF 2 is a conventional activated sludge facility and includes the following: (i) a headworks consisting of screening channels and grit removal; (ii) two primary clarifiers, each with a flow capacity of 1.9 mgd; (iii) two equalization basins with a total capacity of 651,485 gallons; (iv) three screw pumps that lift wastewater flow from the equalization basins to the aeration basins; (v) two aeration basins, only one of which is currently in use; (vi) three secondary clarifiers with a total surface area of 8,600 square feet; (vii) four down flow dual media filters with a capacity of 4 MGD and (viii) two chlorine contact tanks for disinfection. WRF 2 produces Title 22 reclaimed water for use by the Utility Authority’s reclaimed water system. The Utility Authority’s reclaimed water system does not constitute part of the Wastewater Enterprise and neither the expenses nor revenues of the reclaimed water system are reflected in the Wastewater Enterprise’s revenues and expenses set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION.”
Water Reclamation Facility #3. WRF 3 became operational in 2001 and has a permitted capacity of

1.0 mgd and treats an average of 0.7 mgd. The facility utilizes membrane technology to treat wastewater and includes the following: (i) a headworks consisting of two drum screens and a compactor; (ii) three bioreactors, each with five membrane cassettes; and (iii) a chlorine contact tank.

WRF 3 produces Title 22 reclaimed water for use by the Utility Authority’s reclaimed water system.

The Utility Authority’s reclaimed water system does not constitute part of the Wastewater Enterprise and neither the expenses nor revenues of the reclaimed water system are reflected in the Wastewater Enterprise’s revenues and expenses set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION.”

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The Utility Authority is currently in the process of decommissioning WRF 3 upon the projected completion of multiple interconnected projects which include purchased capacity in the WRCRWA Treatment Plant, pipelines, and pump stations to interconnect service areas to additional treatment plants. The costs of decommissioning WRF 3 will be paid from Wastewater Enterprise revenues or Wastewater Enterprise reserves. The Utility Authority does not currently have an expected timeline for decommissioning WRF 3.

Western Riverside County Regional Wastewater Authority Treatment Plant WRCRWA, a joint exercise of powers authority formed in 1992, operates the WRCRWA Treatment Plant and wastewater collection system on behalf of its members in the County. In 2012, the City executed Addendum No. 6 to the Joint Exercise of Powers Agreement Creating the Western Riverside County Regional Wastewater Authority, thereby becoming a member of WRCRWA. Currently, the other members of WRCRWA are Home Gardens Sanitary District, Jurupa Community Services District, the City of Norco and Western Municipal Water District. The City originally purchased capacity of 2.37 mgd, in the WRCRWA Treatment Plant but a transfer agreement between the City and Home Gardens Sanitary District in April 2019 increased the City’s capacity of the WRCRWA Treatment Plant to 2.62 mgd.

On March 8, 2012, the members of WRCRWA, including the City, executed that certain Project and Capacity Agreement for the Expansion of the Western Riverside County Regional Wastewater Authority Treatment Plant, as amended by Amendment No. 1 thereto effective July 31, 2012, pursuant to which the City agreed to participate in financing an expansion of the WRCRWA Treatment Plant from 8 mgd to 14 mgd. In 2014, WRCRWA and the SWRCB entered into a State Revolving Fund loan to finance the WRCRWA treatment plant expansion project. The WRCRWA state loan was entered into with the initial principal amount of $72,039,206, of which $53,249,411 was outstanding as of June 30, 2024. The WRCRWA state loan bears interest at the rate of 1.90% per annum and is payable in annual installments of approximately $1,903,189 with a final payment in 2036. The City’s member agency allocation of the total debt service is 42.42%. The WRCRWA Treatment Plant expansion was completed in fiscal year 2018.

The City’s share of WRCRWA’s operating budget constitute Direct Costs of the Wastewater Enterprise. Such contributions are reflected in the projected operating results set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage.” The Wastewater Enterprise’s capital contributions to WRCRWA for its capacity right to the infrastructure, including the Wastewater Enterprise’s share of debt service on the WRCRWA state loan, are not Direct Costs of the Wastewater Enterprise and are paid after debt service on the 2025 Bonds and payments under the 2014 SRF Loan.

Regulatory Matters
City Treatment and Transmission Facilities. The Utility Authority operates WRF 1 pursuant to the terms of the Regional Water Quality Control Board, Santa Ana Region (the “Regional Board”) Waste Discharge and Producer/User Reclamation Requirements Order No. R8-2020-0021, National Pollutant Discharge Elimination System (“NPDES”) No. CA8000383 (the “WRF 1 Permit”). The WRF 1 Permit expired on June 30, 2025. The Utility Authority has provided all required information and documents to the Regional Board to facilitate an updated permit but, as the permit has not yet been renewed by the Regional Board, the Utility Authority continues to operate WRF 1 in accordance with the terms of the expired permit while the renewal application is considered. There can be no assurance, however, that the WRF 1 Permit will be renewed on similar terms
The Utility Authority operates WRF 2 pursuant to the terms of the Regional Board Waste Discharge Requirements Order No. R8-2011-0015 (the “WRF 2 Permit”). The WRF 2 Permit does not have an expiration date.

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The Utility Authority operates WRF 3 pursuant to the terms of the Regional Board Waste Discharge and Producer/User Reclamation Requirements Order No. R8-2014-0015, NPDES No. CA8000395 (the “WRF 3 Permit”). The WRF 3 Permit expired on March 31, 2019, and the Utility Authority timely submitted an application for renewal thereof to the Regional Board. The Regional Board is currently reviewing the application for renewal and the Utility Authority expects the WRF 3 Permit to be renewed. There can be no assurance, however, that the WRF 3 Permit will be renewed on similar terms. While the application for renewal is being considered, the Utility Authority is operating WRF 3 under the terms of the expired WRF 3 Permit.

The Utility Authority is operating WRF 1, WRF 2 and WRF 3 in compliance with the terms of the permits described above.

On May 2, 2006, the State Water Resources Control Board issued General Waste Discharge Requirements for Sanitary Sewer Systems, Water Quality Order No. 2006-0003 (the “General Order”) requiring public agencies that own sanitary sewer systems comprised of more than one mile of pipes or sewer lines to develop sanitary sewer management plans and report all sanitary sewer overflows. The Utility Authority is currently enrolled under the General Order and has a certified sanitary sewer management plan.

Western Riverside County Regional Wastewater Authority Treatment Plant. WRCRWA operated the WRCRWA Treatment Plant pursuant to the terms of the Regional Board Waste Discharge Requirements and Master Reclamation Permit Order No. R8-2019-0066, NPDES No. CA8000316 (the “WRCRWA Permit”). The WRCRWA Permit expired on July 31, 2020, and WRCRWA timely submitted an application for renewal thereof to the Regional Board. The Regional Board is currently reviewing the application for renewal and the Utility Authority expects the WRCRWA Permit to be renewed. There can be no assurance, however, that the WRCRWA Permit will be renewed on similar terms. While the application for renewal is being considered, WRCRWA is operating the WRCRWA Treatment Plant under the terms of the expired WRCRWA Permit.

Historic and Projected Wastewater Enterprise Connections The following table shows the number of active Wastewater Enterprise connections for the Fiscal Years 2020 through 2024.

Table 2
City of Corona
Historic Wastewater Enterprise Connections
Fiscal Year
Residential
Connections
Commercial
Connections
Total
Connections
Percentage
Change
2020 37,877 2,242 40,119 N/A
2021 38,431 2,215 40,646 1.30%
2022 38,626 2,232 40,858 0.52
2023 38,714 2,249 40,963 0.26
2024 39,060 2,250 41,310 0.84

Source: City.

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The following table shows the projected number of active Wastewater Enterprise connections for Fiscal Year 2025, the current Fiscal Year and the next three Fiscal Years.

Table 3
City of Corona
Projected Wastewater Enterprise Connections(1)
Fiscal Year
Residential
Connections
Commercial
Connections
Total
Connections
Percentage
Change
2025 39,326 2,241 41,567 N/A
2026 39,523 2,252 41,775 0.50%
2027 39,720 2,263 41,983 0.50
2028 39,919 2,275 42,194 0.50
2029 40,118 2,286 42,405 0.50

(1) Reflects City projections of additional growth based upon approved multifamily or infill developments.

Source: City.

Increases in projected connections reflect the Utility Authority’s estimates of development within the Wastewater Enterprise service area based on information provided by the City’s Planning Department relating to project entitlement applications.

Historic and Projected Wastewater Enterprise Daily Average Flow The following table shows the Wastewater Enterprise daily average wastewater flow in mgd per day for Fiscal Years 2020 through 2024.

Table 4
City of Corona
Historic Wastewater Enterprise Daily Average Flow
Fiscal Year
Daily Average
Flow (mgd)
Percentage
Change
2020 12.60 N/A
2021 12.80 1.59%
2022(1) (2) 13.22 3.28
2023(2) 12.97 (1.89)
2024
(2) 12.81 (1.23)

(1) The City began diverting flow to the WRCRWA Treatment Plant in 2022. See the caption “—Western Riverside County Regional Wastewater Authority Treatment Plant.”
(2) Increased flow in 2022 and 2024 when compared to historical flow is primarily attributed to diversion from neighboring agencies. A metering issue within the Wastewater Enterprise begin in April 2024 that resulted in lower reported flows.

Source: City.

The following table shows the projected Wastewater Enterprise daily average wastewater flow in mgd for Fiscal Year 2025, the current Fiscal Year and the next three Fiscal Years.

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Table 5
City of Corona
Projected Wastewater Enterprise Daily Average Flow
Fiscal Year
Daily Average
Flow (mgd)(1)
Percentage
Change
2025(2) 11.8 N/A
2026 12.9 9.32%
2027 12.9 0.00
2028 13.0 0.78%
2029 13.0 0.00

(1) Projections do not include temporary or semi-permanent diversions from neighboring agencies. (2) Amounts shown for Fiscal Year 2025 reflect actual data; however, the decrease in recorded flow is due to a metering issue within the Wastewater Enterprise that is currently being resolved through the installation of a combined influent plant meter.

Amounts for Fiscal Years 2026 through 2029 represent the City’s projected actual flow.

Source: City.

Historic and Projected Wastewater Enterprise Service Charge Revenues The following table shows the Wastewater Enterprise service charge revenues for Fiscal Years 2020 through 2024. During such period, an average of approximately 84% of such revenues were attributable to residential customers and an average of approximately 16% of such revenues were attributable to commercial, industrial and public agency customers.

Table 6
City of Corona
Historic Wastewater Enterprise Service Charge Revenues
Fiscal Year
Wastewater Enterprise
Service Charge
Revenues
Percentage
Change
2020 $30,590,108 N/A
2021 31,328,167 2.41%
2022 31,610,498 0.90
2023 31,773,519 0.52
2024 32,255,290 1.52

Source: City.

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The following table shows the projected Wastewater Enterprise service charge revenues for Fiscal Year 2025, the current Fiscal Year and the next three Fiscal Years.

Table 7
City of Corona
Projected Wastewater Enterprise Service Charge Revenues Fiscal Year
Wastewater Enterprise
Service Charge
Revenues(1)
Percentage
Change
2025 $31,883,000.00 N/A
2026 37,147,065.00 16.51%
2027 41,065,099.00 10.55
2028 45,396,042.00 10.55
2029 50,184,205.00 10.55

(1) Reflects increases in projected Wastewater Enterprise connections and daily average wastewater flow described under the captions “—Historic and Projected Wastewater Enterprise Connections” and “—Historic and Projected Wastewater Enterprise Daily Average Flow,” respectively, and adopted rate increases of approximately 10% per year through December 31, 2029, as described under the caption “—Wastewater Enterprise Rates and Charges.” Source: City.

Largest Wastewater Enterprise Customers
The following table sets forth the ten largest Wastewater Enterprise customers for Fiscal Year 2025, as determined by annual payments.

Table 8
City of Corona
Ten Largest Wastewater Enterprise Customers
Customer Type of Business
Fiscal Year
2025 Payment
Percentage of Total
Wastewater Enterprise
Service Charge Revenues

1. Raintree Corona Pointe, LLC Residential Multi Family $ 352,827 1.17%

2. AMFP VI Ashton LLC Residential Multi Family 273,515 0.91

3. Hills LLC Residential Multi Family 225,216 0.75

4. Avanath River Run LP Residential Multi Family 196,790 0.65

5. Triana at Corona Ranch Maintenance Corporation Residential Multi Family 188,628 0.63

6. Fairfield Marquessa Villas LLC Residential Multi Family 186,524 0.62

7. Fairfield Marquessa Villas LLC Residential Multi Family 184,857 0.61

8. Breit MF Promenade Terrace LLC Residential Multi Family 181,985 0.60

9. Green River Village MH Comm Residential Multi Family 175,561 0.58

10. Fairfield Deerwood LLC Residential Multi Family 174,880 0.58 TOTAL $ 2,140,781 7.10%

Source: City.

These ten largest customers accounted for approximately 7.10% of total Wastewater Enterprise service charge revenues for Fiscal Year 2025.

Wastewater Enterprise Rates and Charges
General. Rates and charges for wastewater service within the Wastewater Enterprise service area are set by the City Council and are not subject to the jurisdiction of, or regulation by, the California Public

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Utilities Commission or any other regulatory body. The City is, however, required to comply with the notice, hearing and majority protest provisions of Article XIIID of the State Constitution, which is popularly known as Proposition 218. See the caption “CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND CHARGES—Proposition 218” for further information with respect to Proposition 218.

The City Council currently sets wastewater charges at a level that it determines is sufficient to pay all Direct Costs of the Wastewater Enterprise, to recover Allocated Costs and other operating expenses of the Wastewater Enterprise, to pay debt service payments and to maintain appropriate reserves for the Wastewater Enterprise. The current charge consists of a monthly fixed service charge for all customer types and a variable charge for non-residential accounts. See the caption “—Wastewater Enterprise Collection Procedures” for further information with respect to the collection of Wastewater Enterprise rates and charges.

On December 4, 2024, the City Council adopted wastewater service charge increases effective January 3, 2025 and each January 1 thereafter through January 1, 2029 (the “Adopted Rate Plan”) in accordance with the provisions of Proposition 218. The projected operating results which are set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage” assume Wastewater Enterprise rate increases in accordance with the Adopted Rate Plan through January 1, 2029.

The projected revenues set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage” reflect adopted rate increases of approximately 10% for Fiscal Years 2025, 2026, 2027, 2028 and 2029, all in accordance with Adopted Rate Plan. There is no assurance that the City Council will enact wastewater service charge increases under Adopted Rate Plan as projected herein. Furthermore, there is no assurance that the City Council will not repeal or modify such rate increases in the future or that the City’s ratepayers will not approve an initiative to repeal or modify any increase in wastewater service charges approved by the City Council.

The Utility Authority is subject to certain covenants with respect to the 2025 Bonds which require that the Utility Authority fix, prescribe, revise and collect rates and charges for the services and facilities furnished by the Wastewater Enterprise, or cause the City to do so, during each Fiscal Year which are sufficient to yield Net Revenues at least equal to 125% of debt service of the Wastewater Enterprise in such Fiscal Year. See the caption “SECURITY FOR THE 2025 BONDS—Rate Covenant.”
Selected Rates. The Utility Authority charges a fixed monthly service charge for all Wastewater Enterprise customers. Non-residential customers also incur an additional monthly variable charge per hundred cubic feet (“hcf”) for water use above eight hcf. Wastewater Enterprise monthly rates approved by the Adopted Rate Plan are set forth below. See the caption “—General.” Table 9
City of Corona
Wastewater Enterprise Rates
Fiscal Years 2025 Through 2029
Service Type 1/3/2025 1/1/2026 1/1/2027 1/1/2028 1/1/2029 All Connections $ 45.46 $ 50.01 $ 55.01 $ 60.51 $ 66.56 Non-Residential over 8 hcf(1) 5.50 6.05 6.66 7.32 8.05

(1) Non-residential customers also incur an additional monthly per hcf variable charge for water use above eight hcf.

Source: City.

Comparative Rates. Set forth below is a comparison of the Wastewater Enterprise’s typical monthly bill for a single family residential customer as compared to other neighboring communities as of July 2024,

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with the assumptions of ¾” meter size, households of four people per connection, a 4,000 irrigable area and 13 hcf water use.

Table 10
City of Corona
Typical Residential Customer Sewer Bill
Community Monthly Charge
Western Municipal Water District $79.96
Elsinore Valley Municipal Water District 61.06
City of Norco 59.89
City of Chino Hills 55.27
Jurupa Community Services District 46.37
Corona Utility Authority Wastewater Enterprise 45.60

Source: City.

The projected wastewater service charge revenues set forth under the captions “—Historic and Projected Wastewater Enterprise Service Charge Revenues” and “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage” reflect adopted wastewater service charge rate increases in Fiscal Years 2025 through 2029, as described under the caption “—General.”
Capacity Fees. Sample fees for each new connection to the Wastewater Enterprise are set forth below.

Table 11
City of Corona
Capacity Fees
Type of Connection Base Rate Multiplied By Total Capacity Fee Single Family Dwelling $15.48/ gallon per day 300 gallons per day $ 4,644.00 Multi-Family Dwelling $15.48/ gallon per day 240 gallons per day 3,715.20 Apartments(1) $15.48/ gallon per day 200 gallons per day 3,096.00 Office Building(2) $2.32/ sq. ft. 100 sq. ft. 232.20
Warehouse(2) $0.46/ sq. ft. 100 sq. ft. 46.44
Manufacturing(2) $0.77/ sq. ft. 100 sq. ft. 77.40

(1) Per unit.
(2) Base Rate $15.48 per gallon per day. Estimated sewer rates: Office 0.15 GPD/ sq. ft., Watehouse 0.03 GPD/ sq. ft., Warehouse 0.05 GPD/ sq. ft.

Source: City.

From July 1, 2023 through June 30, 2024, the Wastewater Enterprise received approximately $1,814,973 in capacity fees, during which period approximately 347 new connections to the Wastewater Enterprise came online. Capacity fees are paid when building permits are issued, which may not necessarily occur in the same Fiscal Year that the Wastewater Enterprise begins service to new connections. See the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION” for historical and projected capacity fee revenues.

The Wastewater Enterprise capacity fee structure has been established to reflect, among other things, the costs of the City’s participation in the expansion of the WRCRWA Treatment Plant. City staff regularly assesses the capacity fees to determine whether increased capacity fees are warranted to reflect increased costs

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attributable to the WRCRWA Treatment Plant expansion or other capital costs of the Wastewater Enterprise.

See the caption “—Western Riverside County Regional Wastewater Authority Treatment Plant” for a discussion of the WRCRWA Treatment Plant. The projected Wastewater Enterprise operating results set forth under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Wastewater Enterprise Operating Results and Debt Service Coverage” reflect certain assumed increases in capacity fees however, any such fee increases are subject to City Council approval and there can be no assurance that capacity fees will be increased. See the captions “CERTAIN RISKS TO BONDHOLDERS—Rate-Setting Process Under Proposition 218” and “—Rate Covenant Not a Guarantee.” Wastewater Enterprise Collection Procedures
The Utilities Department is on a monthly billing cycle for water, wastewater, electric, and emergency management system service, as applicable. A consolidated bill is sent out every month to customers. Payment is due by the 20th day after the billing date and is considered delinquent if not paid by that date. If payment is not received, a delinquency message appears on a reminder bill, with a 10% penalty assessment. Wastewater services cannot be discontinued; however, the Utility Department sends a delinquency message to inform customers that water service will be discontinued if the bill is not paid in full within 80 days. Approximately 15 days prior to water service disconnection, a notice of disconnection for water service will be mailed to the billing address of the customer. A processing charge will be assessed on that notice and the date of discontinuance of service will again be noted. Accounts that have been shut off may be reconnected upon payment in full of outstanding balances for all services or by entering into a payment arrangement, and paying a reconnection fee of $53. As of June 30, 2024, less than 12% of accounts were more than 60 days delinquent.

The total amount for such delinquencies for wastewater is approximately $679,160.39.

The 2025 Project and Future Wastewater Enterprise Improvements The Utility Authority projects total capital improvements to the Wastewater Enterprise of approximately $47,470,000 in Fiscal Years 2026 through 2028, as set forth in the below table. Certain projected capital improvements have not yet been approved by the City Council, and all of such projections are subject to change at any time.

Table 12
City of Corona
Projected Wastewater Enterprise Capital Improvement Projects Fiscal Year
Project Description 2026 2027 2028 Total
Water Reclamation Facility #2 Equalization Basin Replacement $2,800,000 $ 7,200,000 -- $10,000,000 Water Reclamation Facility #1B Energy Efficiency -- 23,000,000 -- 23,000,00 Research/Railroad Sewerline Replacement -- 3,120,000 -- 3,120,000 Water Reclamation Facility #1 Grating Replacement 50,000 700,000 -- 750,000 Water Reclamation Facility #1 Paving Project -- 200,000 $ 3,000,000 3,200,000 Water Reclamation Facility #1 Chlorine Contact Basin
Instrumentation and Electrical Improvements
700,000 -- -- 700,000
Water Reclamation Facility #1 Compliance Flow Meter 500,000 -- -- 500,000 Water Reclamation Facility #1 Security Cameras 200,000 -- -- 200,000 Water Reclamation Facility #1 Digester Equipment Rehab and Electrical Upgrade
2,000,000 2,000,000 1,000,000 5,000,000
Water Reclamation Facility #1 Boiler Project Design -- 1,000,000 -- 1,000,000 Total $6,250,000 $ 37,220,000 $ 4,000,000 $47,470,000

Source: City.

As described under the caption “PLAN OF FINANCE,” the Utility Authority currently anticipates funding approximately $28.3 million of such improvements from the proceeds of the 2025 Bonds. The Utility Authority currently expects to fund the remainder of such capital improvements through a combination of

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Wastewater Enterprise reserves and Net Revenues remaining after the payment of debt service on the 2025 Bonds. Other than the 2025 Bonds, the Utility Authority does not currently expect to enter into any additional installment purchase agreements or loan agreements or to issue any additional bonds in the next five years to finance such capital improvements. See the captions “SECURITY FOR THE 2025 BONDS—Additional Indebtedness—Parity Obligations.”

WASTEWATER ENTERPRISE FINANCIAL INFORMATION
Available Cash
As of June 30, 2024, the Wastewater Enterprise maintained approximately $67,085,514 in cash on hand, capital replacement reserves, operating reserves and other available moneys, which is equivalent to approximately 554 days’ operating expenses of the Wastewater Enterprise. See Notes 1.C and 3 to the financial statements set forth in Appendix A for further information with respect to the City’s reserves and investment policies.

See the caption “THE CITY—Governance and Management—Management Policies—Reserve Policy for Utilities Department Operating Funds” for a discussion of the Sewer Utility Fund reserve. As of July 1, 2024, $1,325,448 was held in the Wastewater Utility Fund reserve. Such amount is included in the $67,085,514 cash on hand amount that is discussed in the prior paragraph.

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Historical Operating Results and Debt Service Coverage
The following table is a summary of operating results of the Wastewater Enterprise for Fiscal Years 2020 through 2024, which are the five most recent audited Fiscal Years. These results have been derived from the audited financial statements of the City but exclude certain receipts which are not included as Gross Revenues under the Indenture and certain non-cash items and include certain other adjustments. Projections for Fiscal Year 2025 are provided in Table 14 and are based on unaudited estimated results for Fiscal Year 2025.

Table 13
City of Corona
Historic Wastewater Operating Results (Fiscal Year Ended June 30)(1) 2020 2021 2022 2023 2024
Gross Revenues
Wastewater Service Charges(2) $ 30,590,108 $ 31,328,167 $ 31,610,498 $ 31,773,519 $ 32,255,290 Fees and Permits 164,719 557,388 39,837 63,005 58,013
Fines and Penalties(3) 229,582 (888) 129,884 325,486 279,874 Capacity Fees 2,788,119 2,287,463 1,846,859 2,221,317 1,814,973 Investment Earnings 1,462,409 1,692,293 1,309 1,024,994 1,730,403 Other Revenues(4) 209,925 367,130 382,490 687,542 375,273 Total Gross Revenues $ 35,444,862 $ 36,231,553 $ 34,010,877 $ 36,095,863 $ 36,513,825 Direct Costs and Allocated Costs
Personnel Services $ 6,384,567 $ 5,079,734 $ 3,960,920 $ 7,003,868 $ 8,040,616 Contractual(5) 1,558,809 1,371,801 1,754,271 1,854,661 9,441,927 Materials and Supplies(6) 10,522,392 11,633,982 15,476,586 14,824,918 9,147,885 Utilities 2,512,692 2,242,071 2,185,827 2,463,142 2,507,861 Total Direct Costs and Allocated Costs $ 20,978,460 $ 20,327,588 $ 23,377,604 $ 26,146,589 $ 29,138,288 Net Revenues $ 14,466,402 $ 15,903,965 $ 10,633,273 $ 9,949,275 $ 7,375,537 Debt Service
2013 Bonds $ 1,011,276 $ 1,011,845 $ 1,011,413 $ 1,009,982 $ 1,001,813 2014 SRF Loan 505,078 503,775 504,268 504,159 504,578
Total Debt Service $ 1,516,354 $ 1,515,619 $ 1,515,681 $ 1,514,141 $ 1,506,391 Debt Service Coverage 9.54 10.49 7.02 6.57 4.90
Cash Available for Capital Projects or Other
Improvements $ 12,950,048 $ 14,388,346 $ 9,117,592 $ 8,435,134 $ 5,869,145

(1) Reflects certain accrued Gross Revenues and accrued Direct Costs and Allocated Costs of the Wastewater Enterprise. (2) Reflects wastewater service charge revenues set forth under the caption “THE WASTEWATER ENTERPRISE—Historic and Projected Wastewater Enterprise Service Charge Revenues.”
(3) As discussed under the caption “THE WASTEWATER ENTERPRISE—Wastewater Enterprise Collection Procedures,” the Utilities Department sends customers a consolidated invoice for utility services. (4) Includes pretreatment surcharges, penalties, reimbursements, and other miscellaneous income. (5) Increase in Fiscal Year 2024 due to increase in capital improvement projects that entered the construction phase. (6) Includes the Wastewater Enterprise’s share of WRCRWA’s operating budget. Excludes the Wastewater Enterprise’s share of the cost of the expansion of the WRCRWA Treatment Plant, including annual payments of approximately $2.6 million representing the Wastewater Enterprise’s share of the WRCRWA SRF loan, as this is recorded as an investment for financial reporting purposes. See the captions “THE CITY—Other Obligations” and “THE WASTEWATER ENTERPRISE—Western Riverside County Regional Wastewater Authority Treatment Plant.” Fiscal Year 2022 includes the one-time purchase of 2.62 mgd conveyance capacity from WMWD for approximately $2.7 million). Overall increase due to inflation in the cost of construction materials and chemicals. Decrease in 2024 is due to a reporting structure/categorization of capitalized expenditures.

Source: City.

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Projected Wastewater Enterprise Operating Results and Debt Service Coverage Projected operating results for the Wastewater Enterprise for Fiscal Years 2025 through 2029, reflecting certain significant assumptions concerning future events and circumstances (including those set forth in the footnotes to the table), are set forth below. All of such assumptions are material in the development of the City’s financial projections, and variations in the assumptions may produce substantially different financial results. Actual operating results achieved during the projection period may vary from those presented in the forecast and such variations may be material.

Table 14
City of Corona
Projected Wastewater Operating Results (Fiscal Year Ending June 30) 2025(1) 2026(1) 2027 2028 2029
Gross Revenues
Wastewater Service Charges(2) $ 31,883,000 $ 37,147,065 $ 41,065,099 $ 45,396,042 $ 50,184,205 Fees and Permits(3) 53,566 59,425 59,722 60,021 60,321
Fines and Penalties(3) 308,000 271,878 273,237 274,604 275,977 Capacity Fees(4) 1,989,835 1,464,903 1,472,228 1,479,589 1,486,987 Investment Earnings(5) 2,198,446 2,202,438 2,043,762 2,148,215 2,131,472 Other Revenues(6) 220,896 247,286 249,301 239,161 245,249 Total Gross Revenues $ 36,653,743 $ 41,392,995 $ 45,163,349 $ 49,597,632 $ 54,384,211 Direct Costs and Allocated Costs
Personnel Services(7) $ 7,501,909 $ 8,447,299 $ 9,123,083 $ 9,852,930 $ 10,641,164 Contractual(8) 1,955,232 1,959,619 2,013,508 2,068,880 2,125,774 Materials and Supplies(9) 19,571,825 20,330,164 21,407,662 22,542,268 23,737,008 Utilities(10) 2,817,882 3,005,294 3,108,376 3,214,993 3,325,267 Total Direct Costs and Allocated Costs $ 31,846,848 $ 33,742,376 $ 35,652,629 $ 37,679,071 $ 39,829,213 Net Revenues $ 4,806,895 $ 7,650,619 $ 9,510,720 $ 11,918,561 $ 14,554,998 Debt Service
2013 Bonds(11) $ 1,012,875 $ 1,010,750 -- -- --
2014 SRF Loan 509,441 509,441 $ 509,441 $ 509,441 $ 509,441 2025 Bonds(12) 1,621,544 1,775,250 1,778,750 1,776,000
Total Debt Service $ 1,522,316 $ 3,141,735 $ 2,284,691 $ 2,288,191 $ 2,285,441 Debt Service Coverage 3.16 2.44 4.16 5.21 6.37
Cash Available for Capital Projects or Other
Improvements $ 3,284,579 $ 4,508,884 $ 7,226,029
$
9,630,370 $ 12,269,557

(1) Based on budgeted amounts for Fiscal Years 2025 and 2026. (2) Reflects projected wastewater service charge revenues set forth under the caption “THE WASTEWATER ENTERPRISE—Historic and Projected Wastewater Enterprise Sales Revenues” as well as rates and charges set forth under the caption “THE WASTEWATER ENTERPRISE—Wastewater Enterprise Rates and Charges.”
(3) Projected to increase approximately 0.5% per annum from Fiscal Year 2027 through Fiscal Year 2029 based on projected fee increases and permit renewals.
(4) Reflects City projections of additional growth through approved multi-family or infill developments. See the caption “THE WASTEWATER ENTERPRISE—Historic and Projected Wastewater Enterprise Connections.” (5) Projected using average annual earnings for the most recent three Fiscal Years. Actual earnings may vary based on market conditions and investment performance.
(6) Includes pretreatment surcharges and penalties, reimbursements, and other miscellaneous income. (7) Projected to increase approximately 8% per annum in Fiscal Year 2027 reflecting adjustments associated with MOUs with the City’s bargaining units and approximately 4% per annum thereafter. (8) Projected to increase approximately 2.75% per annum beginning in Fiscal Year 2027. (Footnotes continue on following page.)

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(Footnotes continued from previous page.)
(9) Projected to increase approximately 5.3% per annum beginning in Fiscal Year 2027 based on projected increases in the price of chemicals.

Includes the Wastewater Enterprise’s share of WRCRWA’s operating budget. Excludes the Wastewater Enterprise’s share of the cost of the expansion of the WRCRWA Treatment Plant, including the annual payments of Wastewater Enterprise’s share of the WRCRWA state loan, as this is recorded as an investment for financial reporting purposes. See the captions “THE CITY—Other Obligations” and “THE WASTEWATER ENTERPRISE—Western Riverside County Regional Wastewater Authority Treatment Plant.” (10) Projected to increase approximately 3.43% per annum beginning in Fiscal Year 2027 based on projected increases in the price of energy. (11) Expected to be prepaid from proceeds of the 2025 Bonds as described under the caption “PLAN OF FINANCE—Refunding Plan.” (12) Preliminary, subject to change.

Source: City.

Employee Benefits
Pension Obligations. Accounting and financial reporting by state and local government employers for defined benefit pension plans is governed by GASB Statement No. 68 (“GASB 68”). GASB 68 includes the following components: (i) unfunded pension liabilities are included on the employer’s balance sheet; (ii) pension expense incorporates rapid recognition of actuarial experience and investment returns and is not based on the employer’s actual contribution amounts; (iii) lower actuarial discount rates are required to be used for underfunded plans in certain cases for purposes of the financial statements; (iv) closed amortization periods for unfunded liabilities are required to be used for certain purposes of the financial statements; and (v) the difference between expected and actual investment returns will be recognized over a closed five-year smoothing period. GASB 68 affects the City’s accounting and reporting requirements, but it does not change the City’s pension plan funding obligations.

The City participates in a Miscellaneous Plan to fund pension benefits for employees that serve the Wastewater Enterprise. The City’s pension plan is administered by the California Public Employees’ Retirement System (“CalPERS”). CalPERS administers agent multiple-employer public employee defined benefit pension plans for all of the City’s full-time and certain part-time employees. CalPERS provides retirement, disability and death benefits to plan members and beneficiaries and acts as a common investment and administrative agent for participating public entities within the State, including the City. CalPERS plan benefit provisions and all other requirements are established by State statute and the City Council.

City employees are subject to different benefit levels based on their hire date. Current benefit provisions for City employees are set forth below.

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Table 15
City of Corona
CalPERS Miscellaneous Plan – Summary of Benefit Provisions Employees Hired
Before January
1, 2013
Employees Hired On or
After January 1, 2013 (Not
Prior CalPERS Members)
Benefit Formula 2.7% @ age 55 2.0% @ age 62
Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments Monthly for life Monthly for life
Minimum Retirement Age 50 50
Monthly Benefits as % of
Eligible Compensation

2.0% - 2.7% 1.0% - 2.5%
Employee Normal Cost 8.0%(1) 6.5%(1)
Employer Normal Cost Rate 11.53%(2) 11.53%(2)

(1) Employees are required to make the full employee contribution themselves. The City does not make any portion of the employee contribution.
(2) The Employer Normal Cost Rate shown is a blended rate for all benefit groups in the plan. For a breakout of the normal cost by benefit group, refer to the most recent actuarial valuation.

Source: City, CalPERS Actuarial Valuation as of June 30, 2024.

Contributions to the City’s pension plan consist of: (a) contributions from plan participants (i.e., employees); and (b) contributions by the City.

City employees who were hired on or after January 1, 2013 and who were not previously CalPERS members receive benefits based on 2.0% at age 62 formula. Such employees are required to make the full amount of required employee contributions themselves under the California Public Employees’ Pension Reform Act of 2013 (“AB 340”), which was signed by the State Governor on September 12, 2012. AB 340 established a new pension tier for such employees. Benefits for such participants are calculated on the highest average annual compensation over a consecutive 36-month period. Employees are required to pay at least 50% of the total normal cost rate. AB 340 also capped pensionable income as noted below. Amounts are set annually, subject to Consumer Price Index increases, and retroactive benefits increases are prohibited, as are contribution holidays and purchases of additional non-qualified service credit.

Table 16
City of Corona
Pensionable Income Caps for Calendar Year 2025 (AB 340 and Non-AB 340 Employees) Employees Hired Before
January 1, 2013
(Non-AB 340 Employees)
Employees Hired On or After
January 1, 2013
(AB 340 Employees)
Maximum Pensionable Income $350,000 $186,096
Maximum Pensionable Income if
also Participating in Social Security N/A $155,081

Source: CalPERS Circulation Letter 200-001-25 for 2025.

Additional employee contributions, limits on pensionable compensation and higher retirement ages for new members as a result of the passage of AB 340 are expected to reduce the City’s unfunded pension lability and potentially reduce City contribution levels in the long term.

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The City is also required to contribute the actuarially determined remaining amounts necessary to fund benefits for its members. Employer contribution rates for all public employers are determined on an annual basis by the CalPERS actuary and are effective on the July 1 following notice of a change in the rate. Total plan contributions are determined through the CalPERS annual actuarial valuation process. The total minimum required employer contribution is the sum of: (i) the plan’s employer normal cost rate, which funds pension benefits for current employees for the upcoming Fiscal Year (expressed as a percentage of payroll); plus (ii) the employer unfunded accrued liability contribution amount, which funds pension benefits that were previously earned by current and former employees (billed monthly).

For Fiscal Year 2023, required employer normal cost rates as a percentage of payroll were 10.88% for Miscellaneous Plan employees. For Fiscal Year 2024, required employer normal cost rates as a percentage of payroll are 12.03% for Miscellaneous Plan employees.

For Fiscal Year 2023, the total required employer payment of the unfunded accrued liability for the City’s Miscellaneous Plan was $9,471,994, of which $1,699,138 was allocable to the Wastewater Enterprise.

For Fiscal Year 2024, there was no required employer payment of the unfunded accrued liability for the City’s Miscellaneous Plan due to the City having paid off the balance with pension obligation bond proceeds in 2021.

In addition to amounts that are required to be funded by CalPERS’ actuary, the City has elected to fund additional amounts to a trust that was established in 2022 under Internal Revenue Code Section 115 (the “Pension Benefits Trust”). The Pension Benefits Trust and investment earnings on the deposits therein are irrevocable and constitute funding contributions of the City that will be remitted to CalPERS at a later date.

The City’s total pension assets include funds held by both CalPERS and the Pension Benefits Trust. The funds held in the Pension Benefits Trust are legally protected from the claims of the general creditors of the City. As of June 30, 2025, the City held $54,892,853 in the Pension Benefits Trust.

Beginning in Fiscal Year 2018, CalPERS began collecting employer contributions toward a pension plan’s unfunded liability as dollar amounts instead of the prior method of a percentage of payroll. According to CalPERS, this change was intended to address potential funding issues that could arise from a declining payroll or a reduction in the number of active members in the plan. Funding the unfunded liability as a percentage of payroll could lead to underfunding of pension plans. Due to stakeholder feedback regarding internal needs for total contributions expressed as an estimated percentage of payroll, the CalPERS reports include such results in the contribution projection for informational purposes only. Contributions toward a pension plan’s unfunded liability will continue to be collected as set dollar amounts.

The City’s required contributions to CalPERS fluctuate each year and, as noted, include a normal cost component and a component that is equal to an amortized amount of the unfunded liability. Many assumptions are used to estimate the ultimate liability of pensions and the contributions that will be required to meet those obligations. The CalPERS Board of Administration has adjusted and may in the future further adjust certain assumptions used in the CalPERS actuarial valuations, which adjustments may increase the City’s required contributions to CalPERS in future years. Accordingly, the City cannot provide any assurances that the City’s required contributions to CalPERS in future years will not significantly increase (or otherwise vary) from any past or current projected levels of contributions. CalPERS earnings reports for Fiscal Years 2013 through 2024 report investment gains (and losses) of approximately 13.2%, 18.4%, 2.4%, 0.6%, 11.2%, 8.6%, 6.7%,

4.7%, 21.3%, (6.1%), 5.8% and 9.3%, respectively. CalPERS preliminary earnings report for Fiscal Year 2024-25 reported investment gains of approximately 11.6%. Future earnings performance may increase or decrease future contribution rates for plan participants, including the City. The City notes that CalPERS’ earnings in Fiscal Year 2020 were below its investment targets as a result of stock market declines in the wake of the COVID-19 outbreak, which could increase future contribution rates for plan participants, including the City.

On December 21, 2016, the CalPERS Board of Administration voted to lower its discount rate from

7.50% to 7.00% over a three period. For public agencies such as the City, the new discount rate took effect

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July 1, 2017. Lowering the discount rate means that employers which contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013 will also see their contribution rates rise under AB 340. The reduction of the discount rate will result in average employer rate increases of approximately 1% to 3% of normal cost as a percentage of payroll for most retirement plans such as the City’s plans. Additionally, many employers will see a 30% to 40% increase in their current unfunded accrued liability payments (relative to the unfunded accrued liability payments projected in the June 30, 2015 valuation report) for pension plans. These payments are made to amortize unfunded liabilities over 20 years to bring pension funds to a fully funded status over the long-term.

The announcement on July 12, 2021 that CalPERS achieved investment returns of 21.3% in Fiscal Year 2021 caused the CalPERS Board of Administration to lower CalPERS’ discount rate from 7.00% to

6.80% in fall 2021 in accordance with a risk mitigation policy that was adopted in 2015, which calls for the discount rate to be lowered if returns exceed the then-current discount rate by two or more percentage points.

Lowering the discount rate means that employers that contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013 who were not previously CalPERS members will also see their contribution rates rise under AB 340.

The table below is derived from CalPERS’ annual valuation report as of June 30, 2024 for the City’s Miscellaneous Plan, which was completed in July 2025, and shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. Projected results reflect the adopted changes to the discount rate described in the CalPERS annual valuation reports. Such projections also assume that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. The projected normal cost percentages in the projections below does not reflect that the normal cost will decline over the time as new employees are hired into lower cost benefit tiers after the passage of AB 340.

The following projections assumed the investment return for fiscal year 2024-25 would be 6.8%. As described above, CalPERS announced preliminary investment returns of 11.6% for Fiscal Year 2025. As a result, the actual contribution requirements for Fiscal Year 2028 and the following years shown below can be expected to differ from such projections.

Table 17
City of Corona
Projected Future Employer Contributions – CalPERS Miscellaneous Plan Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2024-25 and Beyond) Fiscal Year 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 Normal Cost % 11.24% 11.1% 10.9% 10.7% 10.5% 10.3%
UAL Payment $3,795,268 $4,208,000 $4,621,000 $4,445,000 $4,188,000 $4,188,000 Total as a % of Payroll 20.42% 21.0% 21.5% 20.6% 19.6% 19.1% Projected Payroll $41,343,287 $42,500,899 $43,690,925 $44,914,270 $46,171,870 $47,464,683

Source: CalPERS’ Annual Valuation Report as of June 30, 2024.

No assurance can be provided that the City’s CalPERS plan expenses will not increase significantly in the future.

The Schedule of Funding Progress below shows the City’s total pension liability for its Miscellaneous CalPERS plan, CalPERS assets and the relationship of the total pension liability to such assets. Moneys held in the Pension Benefits Trust are excluded from the below figures.

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Table 18
City of Corona
Schedule of Funding Progress – CalPERS Miscellaneous Plan Valuation
Date(1) Accrued Liability
Market Value
of Assets(2)
Unfunded
Accrued Liability
Funded
Ratio
Annual
Covered Payroll
6/30/20 $387,945,232 $264,290,618 $123,654,614 68.1% $24,269,621 6/30/21 409,759,952 320,651,806 89,108,146 78.3 26,963,410 6/30/22 429,922,074 398,716,612 31,205,462 92.7 29,431,217 6/30/23 452,809,072 405,944,864 46,864,208 89.7 34,398,956 6/30/24 470,489,454 427,602,502 42,886,952 90.9 38,056,221

(1) Figures are as of the measurement dates of June 30 of the years 2020 through 2024, which apply to the Fiscal Years ended June 30, 2020 through 2024, respectively.
(2) Excludes moneys held in Pension Benefits Trust.

Source: CalPERS Annual Valuation Report as of June 30, 2024.

Portions of the above disclosures are primarily derived from information that has been produced by CalPERS, its independent accountants and its actuaries. The City and the Utility Authority have not independently verified such information and neither makes any representations nor expresses any opinion as to the accuracy of the information that has been provided by CalPERS.

The comprehensive annual financial reports of CalPERS are available on CalPERS’ Internet website at www.calpers.ca.gov. The CalPERS website also contains CalPERS’ most recent actuarial valuation reports and other information that concerns benefits and other matters. The textual reference to such Internet website is provided for convenience only. None of the information on such Internet website is incorporated by reference herein. The City, the Utility Authority and the Underwriter cannot guarantee the accuracy of such information. Actuarial assessments are “forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future.

The City’s Miscellaneous Plan had a total net pension liability of $30,791,658 for Fiscal Year 2024 (as of the measurement date of June 30, 2023), of which approximately $3,291,628 was attributable to the Wastewater Enterprise. The net pension liability is the difference between the total pension liability and the fair market value of pension assets. The City’s total pension assets include funds that are held by CalPERS, and its net pension asset or liability is based on such amounts. For Fiscal Years 2024 and 2023, the City incurred Miscellaneous Plan pension expenses of $13,941,526 and $13,494,623, respectively.

A summary of principal assumptions and methods used to determine the total pension liability for the City’s Miscellaneous pension plan for Fiscal Year 2023 is shown below.

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Table 19
City of Corona
Actuarial Assumptions for CalPERS Miscellaneous Plan
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68 Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Accounting Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by entry age and service
Mortality Rate Table(1) Derived using CalPERS’ membership data for all funds Post Retirement Benefit
Increase
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter

(1) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Postretirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Source: City.

Changes in the net pension liability for the City’s Miscellaneous pension plan in Fiscal Year 2023 were as follows:

Table 20
City of Corona
Changes in CalPERS Miscellaneous Plan Net Pension Liability Increase / (Decrease)
Total
Pension Liability
Plan Fiduciary
Net Position
Net Pension
Liability / (Asset)
Balance at June 30, 2022 $ 416,786,666 $ 398,723,741 $ 18,062,925 Balance at June 30, 2023 436,846,507 406,054,849 30,791,658 Net Changes for period from
July 1, 2022 through June 30,
2023 $ 20,059,841 $ 7,331,108 $ 12,728,733

Source: City.

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The table below presents the net pension liability of the City’s Miscellaneous pension plan, calculated using the discount rate applicable to Fiscal Year 2023 (6.90%), as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.90%) or 1 percentage point higher (7.90%) than the Fiscal Year 2023 rate:

Table 21
City of Corona
Sensitivity of CalPERS Miscellaneous Plan Net Pension Liability to Changes in the Discount Rate
Plan’s Net Pension
Liability/(Asset)
Discount Rate – 1%
(5.90%)
Applicable Discount
Rate (6.90%)
Discount Rate + 1%
(7.90%)
Miscellaneous Plan $91,306,327 $30,791,658 $(18,603,887)

Source: City.

For additional information relating to the City’s CalPERS Miscellaneous pension plan, see Note 13 to the City’s audited financial statements set forth in Appendix A.

Issuance of Pension Obligation Bonds. On October 14, 2021, the City issued pension obligation bonds in the aggregate principal amount of $276,710,000, the proceeds of which were applied to pay a portion of the City’s CalPERS Miscellaneous pension plan liability, among other things. The pension obligation bonds are not secured by a pledge and lien on or payable from Net Revenues of the Wastewater Enterprise.

The issuance of the pension obligation bonds, however, is expected to reduce the pension plan liability that is attributable to the Wastewater Enterprise over the long term.

For Fiscal Year 2024, the debt service payment for the pension obligation bonds totaled $22,605,269 of which $900,892 was allocable to the Wastewater Enterprise. For Fiscal Year 2025, the debt service payment for the Pension Obligation Bonds totaled $23,543,737, of which $1,031,583 was allocable to the Wastewater Enterprise.

Other Post-Employment Benefits. In addition to the pension benefits that are described under the subcaption “—Pension Obligations,” the City provides certain health care and life insurance benefits (“OPEB”) for retired employees and eligible dependents. OPEB is provided for retired employees who are age 50 or over (52 for AB 340 members), have a minimum of 5 years of service with the City.

The contribution requirements of OPEB plan members and the City are established under memoranda of understanding with the City’s employee associations. See the caption “THE CITY—Employees.” Currently, contributions are not required from plan members. The annual contribution amount is based on the actuarially determined employer contribution. The City elected to prefund its OPEB obligation through the California Employers’ Retiree Benefit Trust Program (“CERBT”), a trust fund established under Internal Revenue Code Section 115 which is dedicated to prefunding OPEB for eligible California public agencies.

CERBT is administered by CalPERS’ Board. In Fiscal Years 2023 and 2024, the City’s cash contribution to its OPEB plan was $9,994,224 and $10,203,431, respectively, of which $1,304,638 and $1,063,005, respectively, was made to CERBT, with the remainder consisting of either direct payment to service providers or reimbursement to retirees. The City has budgeted to contribute $13,757,764 to its OPEB plan, including $3,302,434 to CERBT, in Fiscal Year 2025. CERBT assets are irrevocable and may not be used for any purpose other than funding OPEB.

Governmental Accounting Standards Board Statement No. 75 (“GASB 75”) requires governmental agencies to account for and report the outstanding obligations and commitments related to OPEB in essentially the same manner as for pensions. While requiring the City to disclose the unfunded actuarial accrued liability and the Actuarially Determined Contribution (the actuarial value of benefits earned during a Fiscal Year plus

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costs to amortize the unfunded actuarial accrued liability, or “OPEB ADC”) in its financial statements, GASB 75 does not require the City to fund the OPEB ADC. The OPEB ADC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period not to exceed thirty years.

The City’s OPEB contributions for the last five Fiscal Years were as follows:

Table 22
City of Corona
OPEB Contributions
Fiscal Year
Ended June 30
Actuarially Determined
Contribution City OPEB Contribution
Deficiency/
(Excess) Covered Payroll
2020 $11,087,025 $11,847,476 $(760,451) $67,841,626
2021 10,481,185 10,489,894 (8,709) 68,613,350
2022 10,744,736 10,744,736 (1,051,688) 74,680,408
2023 9,983,374 9,994,224 (10,850) 84,958,125
2024 10,282,357 10,203,431 78,952 89,487,961

Source: City.

As of the June 30, 2023 measurement date, the City OPEB plan was 41.37% funded. The actuarial accrued liability for benefits was $160,302,881 and the actuarial value of assets was $66,319,740, resulting in an unfunded actuarial accrued liability (the “OPEB UAL”) of $93,983,141. The covered payroll (annual payroll of active employees covered by the plan) was $84,958,125 and the ratio of the OPEB UAL to the covered payroll was 110.62%.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about rates of employee turnover, retirement and mortality, as well as economic assumptions regarding claim costs per retiree, healthcare inflation and interest rates. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future.

Changes in the net liability for the City’s OPEB plan were as follows.

Table 23
City of Corona
Changes in OPEB Liability
Increase / (Decrease)
Total
OPEB Plan Liability
Plan Fiduciary
Net Position
Net OPEB Plan
Liability / (Asset)
Balance at June 30, 2022 $ 155,068,194 $ 61,086,162 $ 93,982,032 Balance at June 30, 2023 160,302,881 66,319,740 93,983,141 Net Changes for period from July
1, 2022 through June 30, 2023 $ 5,234,687 $ 5,233,578 $ 1,109

Source: City.

The following table presents the net liability of the City’s OPEB plan, calculated using the discount rate applicable to Fiscal Year 2023 (6.05%), as well as what the net OPEB liability would be if it were

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calculated using a discount rate that is 1 percentage point lower (5.05%) or 1 percentage point higher (7.05%) than the Fiscal Year 2023 rate:

Table 24
City of Corona
Sensitivity of OPEB Plan Net Liability to Changes in the Discount Rate Discount Rate – 1%
(5.05%)
Applicable Discount
Rate (6.05%)
Discount Rate + 1%
(7.05%)
Plan’s Net Liability/(Asset) $112,994,843 $93,983,141 $78,186,021

Source: City.

The City’s projections of operating expenses shown under the caption “—Projected Operating Results and Debt Service Coverage” do not assume further unusual increases in OPEB funding expenses. Future changes in OPEB funding policies and assumptions, however, including those related to assumed rates of investment return and inflation, could trigger increases in the City’s annual required contributions, and such increases could be material to the finances of the Wastewater Enterprise. No assurance can be provided that such expenses will not increase significantly in the future. The City does not expect that any increased funding of OPEB will have a material adverse effect on the ability of the City to pay the 2025 Bonds.

For additional information relating to the City’s OPEB plan, see Note 14 to the City’s audited financial statements set forth in Appendix A.

CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND CHARGES Article XIIIB
Article XIIIB of the State Constitution limits the annual appropriations of the State and of any city, county, school district, authority, special district or other political subdivision of the State to the level of appropriations of the particular governmental entity for the prior fiscal year, as adjusted for changes in the cost of living and population. The “base year” for establishing such appropriation limit is the 1978-79 State fiscal year and the limit is to be adjusted annually to reflect changes in population and consumer prices.

Adjustments in the appropriations limit of an entity may also be made if: (a) the financial responsibility for a service is transferred to another public entity or to a private entity; (b) the financial source for the provision of services is transferred from taxes to other revenues; or (c) the voters of the entity approve a change in the limit for a period of time not to exceed four years.

Appropriations that are subject to Article XIIIB generally include the proceeds of taxes levied by or for the State or other entity of local government, exclusive of certain State subventions, refunds of taxes and benefit payments from retirement, unemployment, insurance and disability insurance funds. “Proceeds of taxes” include, but are not limited to, all tax revenues and the proceeds to an entity of government from:
(i) regulatory licenses, user charges, and user fees (but only to the extent that such proceeds exceed the cost reasonably borne by the entity in providing the service or regulation); and (ii) the investment of tax revenues.

Article XIIIB includes a requirement that if an entity’s revenues in any year exceed the amounts that are permitted to be spent, the excess would have to be returned by revising tax rates or fee schedules over the subsequent two years.

Certain expenditures are excluded from the appropriations limit, including payments of indebtedness that were existing or legally authorized as of January 1, 1979, or of bonded indebtedness thereafter approved by the voters, and payments that are required to comply with court or federal mandates which without discretion require an expenditure for additional services or which unavoidably make the provision of existing services more costly.

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The City is of the opinion that its charges for wastewater service do not exceed the costs that it reasonably bears in providing such service and therefore are not subject to the limits of Article XIIIB. The Utility Authority has covenanted in the Indenture that it will fix, prescribe, revise and collect rates and charges for the services and facilities furnished by the Wastewater Enterprise, or cause the City to do so, during each Fiscal Year which are sufficient to yield Net Revenues, at least equal to 125% of the Debt Service payable in such Fiscal Year.

Proposition 218
General. An initiative measure entitled the “Right to Vote on Taxes Act” (the “Initiative”) was approved by the voters of the State at the November 5, 1996 general election. The Initiative added Articles XIIIC and XIIID to the State Constitution. According to the “Title and Summary” of the Initiative prepared by the State Attorney General, the Initiative limits “the authority of local governments to impose taxes and property-related assessments, fees and charges.”
Article XIIID. Article XIIID defines the terms “fee” and “charge” to mean “any levy other than an ad valorem tax, a special tax or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including user fees or charges for a property-related service.” A “property-related service” is defined as “a public service having a direct relationship to property ownership.” Article XIIID further provides that reliance by an agency on any parcel map (including an assessor’s parcel map) may be considered a significant factor in determining whether a fee or charge is imposed as an incident of property ownership.

Article XIIID requires that any agency which imposes or increases any property-related fee or charge must provide written notice thereof to the record owner of each identified parcel upon which such fee or charge is to be imposed and must conduct a public hearing with respect thereto. The proposed fee or charge may not be imposed or increased if a majority of owners of the identified parcels file written protests against it.

As a result, because fees for water service are a “fee” or “charge” as defined in Article XIIID, the local government’s ability to increase such fees or charges may be limited by a majority protest.

In addition, Article XIIID includes a number of limitations that are applicable to existing fees and charges, including provisions to the effect that: (a) revenues that are derived from the fee or charge may not exceed the funds which are required to provide the property-related service; (b) such revenues may not be used for any purpose other than that for which the fee or charge was imposed; (c) the amount of a fee or charge that is imposed upon any parcel or person as an incident of property ownership may not exceed the proportional cost of the service attributable to the parcel; and (d) no such fee or charge may be imposed for a service unless that service is actually used by, or immediately available to, the owner of the property in question.

Property-related fees or charges based on potential or future use of a service are not permitted.

Based upon the California Court of Appeal decision in Howard Jarvis Taxpayers Association v. City of Los Angeles, 85 Cal. App. 4th 79 (2000), which was denied review by the State Supreme Court, it was generally believed that Article XIIID did not apply to charges for water and wastewater services that are “primarily based on the amount consumed” (i.e., metered water or wastewater rates), which had been held to be commodity charges related to consumption of the service, not property ownership. The State Supreme Court ruled in Bighorn-Desert View Water Agency v. Verjil, 39 Cal. 4th 205 (2006) (the “Bighorn Case”), however, that fees for ongoing water service through an existing connection were property-related fees and charges. The State Supreme Court specifically disapproved the holding in Howard Jarvis Taxpayers Association v. City of Los Angeles that metered water rates are not subject to Proposition 218. The City has complied with the notice and public hearing requirements of Article XIIID in determining whether to change Water Enterprise rates and charges since at least 2007.

On April 20, 2015, the California Court of Appeal, Fourth District, issued an opinion in Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano, 235 Cal. App. 4th 1493 (2015) (the “SJC Case”)

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upholding tiered water rates under Proposition 218 provided that the tiers correspond to the actual cost of furnishing service at a given level of usage, including the capital costs of improvements to provide additional increments of water. The opinion included a finding that the City of San Juan Capistrano did not make any attempt to calculate the actual costs of providing water at various tier levels. The City’s current residential water rate structure includes tiered rates based on usage. The City has reviewed the SJC Case decision and does not expect the decision to affect its rate structure. The City believes that its current water rates comply with the requirements of Proposition 218 because they are tied to the cost of service and capital improvements, and expects that any future water rate increases will comply with Proposition 218’s procedural and substantive requirements to the extent applicable thereto.

Article XIIIC. Article XIIIC provides that the initiative power may not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge and that the power of initiative to affect local taxes, assessments, fees and charges is applicable to all local governments. Article XIIIC does not define the terms “local tax,” “assessment,” “fee” or “charge,” so it was unclear whether the definitions set forth in Article XIIID referred to above are applicable to Article XIIIC. Moreover, the provisions of Article XIIIC are not expressly limited to local taxes, assessments, fees and charges imposed after November 6, 1996. On July 24, 2006, the State Supreme Court held in the Bighorn Case that the provisions of Article XIIIC applied to rates and fees charged for domestic water use. In the decision, the Court noted that the decision did not address whether an initiative to reduce fees and charges could override statutory rate setting obligations.

On August 3, 2020, the State Supreme Court issued an opinion in Wilde v. City of Dunsmuir (2020) 9 Cal.5th 1105 holding that taxpayers do not have the right under Proposition 218 to challenge water rates by referendum, and the City does not believe that Article XIIIC grants to the voters within the City the power (whether by initiative under Article XIIIC or otherwise, or by referendum, which is not authorized under Article XIIIC) to repeal or reduce rates and charges for water service in a manner that would interfere with the contractual obligations of the City or the Utility Authority or the obligation of the City and the Utility Authority to maintain and operate the Water Enterprise. However, there can be no assurance as to the availability of particular remedies adequate to protect the Beneficial Owners of the 2025 Bonds. Remedies that are available to Beneficial Owners of the 2025 Bonds in the event of a default by the Utility Authority are dependent upon judicial actions which are often subject to discretion and delay and could prove both expensive and time consuming to obtain. So long as the 2025 Bonds are held in book-entry form, DTC (or its nominee) will be the sole registered owner of the 2025 Bonds and the rights and remedies of the 2025 Bond Owners will be exercised through the procedures of DTC.

Proposition 26
On November 2, 2010, voters in the State approved Proposition 26. Proposition 26 amends Article XIIIC of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” except the following: (a) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (b) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (c) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (d) a charge imposed for entrance to or use of local government property, or the purchase, rental or lease of local government property; (e) a fine, penalty or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law; (f) a charge imposed as a condition of property development; and (g) assessments and property-related fees imposed in accordance with the provisions of Article XIIID. Proposition 26 applies to charges imposed or increased after November 2, 2010 and provides that the local government bears the burden of proving by a preponderance of the evidence that a

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levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity. The City believes that its water rates and charges meet the exception that is described in clause (g) above and are not taxes under Proposition 26.

Future Initiatives
Articles XIIIB, XIIIC and XIIID and Proposition 26 were adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time other initiatives could be proposed and adopted affecting the Utility Authority’s revenues or ability to increase revenues.

CERTAIN RISKS TO BONDHOLDERS
The following information, in addition to the other matters that are described in this Official Statement, should be considered by prospective investors in evaluating the 2025 Bonds. the following, however, does not purport to be comprehensive, definitive or an exhaustive listing of risks and other considerations that may be relevant to making an investment decision with respect to the 2025 Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. If any risk factor materializes to a sufficient degree, it alone could delay or preclude payment of principal of or interest on the 2025 Bonds.

Limited Obligations
The obligation of the Utility Authority to pay the 2025 Bonds is a limited obligation of the Utility Authority and is not secured by a legal or equitable pledge or charge or lien upon any property of the Utility Authority, the City or any of their respective incomes or receipts, except the Net Revenues. The obligation of the Utility Authority to pay the 2025 Bonds does not constitute an obligation for which the general credit or taxing power of the Utility Authority or the City is pledged.

Accuracy of Assumptions
To estimate the revenues that will be available to pay debt service on the 2025 Bonds, the Utility Authority has made certain assumptions with regard to the rates and charges to be imposed in future years, the expenses associated with operating the Wastewater Enterprise and the interest rate at which funds will be invested. The Utility Authority believes these assumptions to be reasonable, but to the extent that any of these assumptions fail to materialize, the Net Revenues available to pay debt service on the 2025 Bonds will, in all likelihood, be less than those projected herein. See the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION—Projected Operating Results and Debt Service Coverage.” The Utility Authority may choose, however, to maintain compliance with the rate covenant that is set forth in the Indenture in part by means of contributions from other available reserves or resources. In such event, Net Revenues may generate amounts which are less than 125% of Debt Service in any given Fiscal Year. See the caption “SECURITY FOR THE 2025 BONDS—Rate Covenant.”
System Demand
There can be no assurance that the demand for wastewater services will occur as described in this Official Statement. Reductions in demand could require an increase in rates or charges in order to comply with the rate covenant. Demand for wastewater services could be reduced as a result of an economic downturn or other factors. See the captions “THE WASTEWATER ENTERPRISE—Wastewater Enterprise Rates and Charges” and “—Accuracy of Assumptions.”

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System Expenses
There can be no assurance that the City’s expenses will be consistent with the descriptions in this Official Statement. Operation and maintenance costs may vary with labor costs (including costs related to pension liabilities and the costs of retaining qualified personnel with the proper certifications to operate Wastewater Enterprise treatment and other facilities), treatment costs, energy costs, regulatory compliance costs, increased costs to access groundwater due to land subsidence or falling water tables, increased imported water purchase costs and other factors. Increases in expenses could require an increase in rates or charges in order to comply with the rate covenant. See the caption “SECURITY FOR THE 2025 BONDS—Rate Covenant.” Rate increases are subject to the provisions of Proposition 218 and there can be no assurance that the City will be able to increase rates as needed to address increases in Wastewater Enterprise expenses. See the caption “—Rate-Setting Process under Proposition 218.” Limited Recourse on Default
If the Utility Authority defaults on its obligation to pay the principal of and interest on the 2025 Bonds, the Trustee has the right to declare the total unpaid principal of the 2025 Bonds, together with the accrued interest thereon to be immediately due and payable. In the event of a default and such acceleration, however, there can be no assurance that the Utility Authority will have sufficient funds to pay the accelerated amounts due on the 2025 Bonds from Net Revenues.

Rate-Setting Process Under Proposition 218
Proposition 218, which added Articles XIIIC and XIIID to the State Constitution, affects the City’s ability to maintain existing rates and impose rate increases, and no assurance can be given that future rate increases will not encounter majority protest opposition or be challenged by initiative action authorized under Proposition 218. In the event that future proposed rate increases cannot be imposed as a result of majority protest or initiative, the Utility Authority might thereafter be unable to generate Net Revenues in the amounts required by the Indenture to pay the 2025 Bonds. The City believes that its current water rates approved by the City Council were implemented in compliance with the notice, public hearing and majority protest provisions of Proposition 218. See the caption “CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND CHARGES—Proposition 218.”
Statutory and Regulatory Compliance
Laws and regulations governing the treatment and distribution of water are enacted and promulgated by federal, State and local government agencies. Compliance with these laws and regulations is and will continue to be costly, and, as more stringent standards are developed, such costs will likely increase.

Claims against the Wastewater Enterprise for failure to comply with applicable laws and regulations could be significant. Such claims may be payable from assets of the Wastewater Enterprise or from other legally available sources. In addition to claims by private parties, changes in the standards for public agency water systems such as that operated by the Utility Authority may also lead to administrative orders issued by federal or State regulators. Future compliance with such orders could also impose substantial additional costs on the Utility Authority. No assurance can be given that the cost of compliance with such laws, regulations and orders would not adversely affect the ability of the Utility Authority to generate Net Revenues sufficient to pay the 2025 Bonds.

Natural Disasters
General. The occurrence of any natural disaster in the City, including, without limitation, fire, earthquake, landslide, land subsidence, high winds, drought or flood, could have an adverse material impact on the economy within the City, the Wastewater Enterprise and the revenues available for the payment of the

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2025 Bonds. In the event of a severe earthquake, wildfire, drought, windstorm, landslide, flood or other natural disaster, there may be significant damage to both property and infrastructure in the City, including to the Wastewater Enterprise. The occurrence of natural disasters in the City’s service area could result in substantial damage to the Wastewater Enterprise which, in turn, could substantially reduce revenue generated by the Wastewater Enterprise and affect the ability of the Utility Authority to pay the 2025 Bonds.

The City maintains liability insurance for the Wastewater Enterprise and property casualty insurance for certain portions of the Wastewater Enterprise. However, there can be no assurance that specific losses will be covered by insurance or, if covered, that claims will be paid in full by the applicable insurers. Furthermore, as described under the caption “THE CITY—Wastewater Enterprise Insurance,” portions of the Wastewater Enterprise, including subsurface pipelines, are not covered by property casualty insurance. Damage to such portions of the Wastewater Enterprise as a result of natural disasters would result in uninsured losses to the City.

Earthquakes. The City is located in a seismically active region. Significant known faults near the City include the Elsinore and Newport-Inglewood faults. There is potential for destructive ground shaking during the occurrence of a major seismic event. In addition, land along fault lines may be subject to liquefaction during the occurrence of such an event. In the event of a severe earthquake, there may be significant damage to both property and infrastructure within the City, including the Wastewater Enterprise.

The City has an emergency operations center that would be activated under such circumstances.

The City does not maintain earthquake insurance coverage for the Wastewater Enterprise, as discussed under the caption “THE CITY—Wastewater Enterprise Insurance.” There can be no assurance that the Wastewater Enterprise will not be susceptible to damage in the event of an earthquake. Such damage is not expected to be covered by insurance, and seismic activity could result in damage to or destruction of the Wastewater Enterprise.

The City addresses seismic risk and vulnerability through the City of Corona Local Hazard Mitigation Plan, which was last updated in 2023, and the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan. Newer Wastewater Enterprise facilities are designed to withstand earthquakes with minimal damage, as earthquake loads are taken into consideration in the design of project structures. The City has also undertaken a vulnerability assessment of critical Wastewater Enterprise facilities. The vulnerability assessment ranks Wastewater Enterprise infrastructure by importance, builds redundancy into existing operations and includes contingency plans in the event of damage to City assets and succession plans for critical staff. There are currently no significant seismic enhancement projects that are required to be undertaken by the Utilities Department. The impact of lesser magnitude seismic events is expected by the City to be temporary, localized and repairable. The Wastewater Enterprise has never sustained major damage to its facilities or experienced extended incidences of service interruptions as a result of seismic disturbances.

Wildfires. In recent years, wildfires have caused extensive damage throughout the State, including within the County. In some cases, these fires have burned thousands of acres and destroyed hundreds and in some cases thousands of homes. Several fires which occurred in recent years damaged or destroyed property in areas that were not previously considered to be at risk from such events. Some commentators believe that climate change will lead to even more frequent and damaging wildfires in the future. The California Department of Forestry and Fire Protection (“Cal Fire”) periodically prepares maps which evaluate fire hazard, which is defined as the likelihood and expected fire behavior over a 30 to 50-year period without considering mitigation measures such as home hardening, recent wildfire or fuel reduction efforts, as opposed to risk, which is the potential damage a fire can do to the area under existing conditions, accounting for any modifications such as fuel reduction projects, defensible space, and ignition resistant building construction. In March 2025, Cal Fire released an updated Fire Hazard Severity Zone map for the Southern California region and portions of the City are located within areas classified as “Moderate,” “High” or “Very High” Fire Hazard Severity Zones by Cal Fire.

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Approximately __% of the Wastewater Enterprise customer connections are located within either “High” or “Very High” Fire Hazard Severity Zones, and two of the Wastewater Enterprise lift stations are located in areas which Cal Fire has designated as “Very High” Fire Hazard Severity Zones.

Cybersecurity
The City relies on computers and technology to conduct its operations. The City and its departments face cyber threats from time to time including, but not limited to, hacking, viruses, malware and other forms of technology attacks. Recently, there have been significant cybersecurity incidents affecting municipal agencies, including ransomware attacks targeting Los Angeles Unified School District and the San Bernardino County Sheriff’s Department, a freeze affecting computer systems of the City of Atlanta, an attack on the City of Baltimore’s 911 system, an attack on the Colorado Department of Transportation’s computers, an attack that resulted in the temporary closure of the Port of Los Angeles’ largest terminal and an attack on a water treatment facility in Oldsmar, Florida.

The City’s Information Technology Department employs a multi-level cyber protection strategy that includes firewalls, anti-virus software, anti-spam/malware software, intrusion protection, intrusion detection, identity management, lateral movement detection, log monitoring and other security measures. The City contracts with third-party vendors to perform external audits of its network and to perform similar internal audits. The City has also established a Security Operations Center with third-party vendors to monitor and augment internal and external monitoring of the City’s computer systems 24 hours per day, 7 days per week.

The City conducts cybersecurity training for all staff and regular simulated phishing campaigns. Email is inspected inbound and outbound by a cloud email filtering service, and measures are in place to protect against spoofing internal addresses. The City also employs domain name system filtering and endpoint protection on its servers and desktops to catch and prevent cyberattacks. The City practices the principle of least privilege across all of its systems. It maintains regular, redundant, online and offline backups to minimize damage and allow for quick recovery in the event of an attack.

To date, the City has not experienced a successful attack against its network and servers. However, there can be no assurance that a future attack or attempted attack would not result in disruption of City operations. The City expects that any such disruptions would be temporary in nature due to its backup/restore procedures, utilization of third-party incident response teams and disaster recovery planning.

Limitations on Remedies
The ability of the Utility Authority to comply with its covenants under the Indenture and to generate Net Revenues in amounts that are sufficient to pay principal of and interest on the 2025 Bonds may be adversely affected by actions and events outside of the control of the City or the Utility Authority or actions taken (or not taken) by voters, property owners, taxpayers or persons obligated to pay assessments, fees and charges. See the caption “CONSTITUTIONAL LIMITATIONS ON APPROPRIATIONS AND CHARGES—Proposition 218.” Furthermore, the remedies available to the owners of the 2025 Bonds upon the occurrence of an event of default under the Indenture are in many respects dependent upon judicial actions which are often subject to discretion and delay and could prove both expensive and time consuming to obtain.

In the event that the Utility Authority fails to comply with its covenants under the Indenture or fails to pay principal of and interest on the 2025 Bonds, there can be no assurance as to the availability of remedies adequate to protect the interest of the holders of the 2025 Bonds.

In addition to the limitations on remedies contained in the Indenture, the rights and obligations under the Indenture may be subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against cities in the State. The opinion to be delivered by Bond Counsel concurrently with the issuance of the 2025 Bonds will be

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subject to such limitations, and the various other legal opinions to be delivered concurrently with the issuance of the 2025 Bonds will be similarly qualified. See Appendix C.

In addition, usual equity principles may limit the specific enforcement under State law of certain remedies, as may the exercise by the United States of America of the powers delegated to it by the federal Constitution, and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the 2025 Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitations or modification of their rights. Remedies may be limited because the Wastewater Enterprise serves an essential public purpose.

Secondary Market
There can be no guarantee that there will be a secondary market for the 2025 Bonds or, if a secondary market exists, that the 2025 Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price.

Parity Obligations
The Indenture permits the Utility Authority to enter into additional Parity Obligations which are payable from Net Revenues on a parity with the 2025 Bonds, subject to the terms and conditions set forth therein. The entry into additional Parity Obligations could result in reduced Net Revenues available to pay the 2025 Bonds. The Utility Authority has covenanted to maintain Debt Service coverage of 125%, as further described under the caption “SECURITY FOR THE 2025 BONDS—Additional Indebtedness.” Climate Change
The State has historically been susceptible to wildfires and hydrologic variability. As greenhouse gas emissions continue to accumulate in the atmosphere as a result of economic activity, climate change is expected to intensify, increasing the frequency, severity and timing of extreme weather events such as coastal storm surges, drought, wildfires, floods and heat waves, and raising sea levels. The future fiscal impact of climate change on the City is difficult to predict, but it could be significant and it could have a material adverse effect on the Wastewater Enterprise’s finances by requiring greater expenditures to counteract the effects of climate change, by changing the business and activities of Wastewater Enterprise customers. See the captions “—System Expenses.”
In March 2019, the City adopted an updated Climate Action Plan (the “CAP”), which has four primary goals: (i) to measure the City’s greenhouse gas (“GHG”) emissions; (ii) to establish GHG emissions reduction targets within designated timeframes; (iii) to undertake actions to meet the GHG emissions reduction targets; and (iv) to develop adaptive strategies to cope with the effects of climate change. The CAP is intended to keep dollars in the local economy, create new green jobs and improve the community’s health, safety, and welfare by addressing climate change.

The City’s target is to reduce GHG emissions 49% below 2008 levels by 2030 and 66% below 2008 levels by 2040. In order to achieve these targets, the City intends to increase energy and water efficiency in residences and commercial buildings through training, education, renovations and offering rebates in partnership with energy providers, promote the planting of trees throughout the City, utilize light reflecting technology on roofs and paved surfaces, reduce vehicle miles traveled and solid waste generation and promote

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clean energy such as solar panels, among other efforts. Adaptive strategies include creating cooling centers at public spaces, encouraging development that has a lower demand for water and energy, prioritizing infrastructure improvements, encouraging buffer space between development and wildfire-prone areas and ensuring that the City has adequate staff and funding to implement the foregoing efforts.

Rate Covenant Not a Guarantee
The 2025 Bonds are payable from Net Revenues of the Wastewater Enterprise. See the caption “SECURITY FOR THE 2025 BONDS.” The Utility Authority’s ability to pay debt service on the 2025 Bonds depends on its ability to generate Net Revenues at the levels required by the Indenture. Although the Utility Authority has covenanted in the Indenture to impose rates and charges, or cause the City to do so, as more particularly described under the caption “SECURITY FOR THE 2025 BONDS—Rate Covenant,” and although the Utility Authority expects that sufficient Net Revenues will be generated through the imposition and collection of such rates and charges, there is no assurance that the imposition and collection of such rates and charges will result in the generation of Net Revenues in amounts that are sufficient to pay the 2025 Bonds.

Among other matters, the availability of and demand for water and changes in law and government regulations could adversely affect the amount of Net Revenues realized by the Utility Authority.

Loss of Tax Exemption
In order to maintain the exclusion from gross income for federal income tax purposes of interest on the 2025 Bonds, the Utility Authority has covenanted in the Indenture to comply with the applicable requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and not to take any action or fail to take any action if such action or failure to take such action would adversely affect the exclusion from gross income of interest on the 2025 Bonds under Section 103 of the Code. Interest on the 2025 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of such 2025 Bonds as a result of acts or omissions of the Utility Authority in violation of this or other covenants in the Indenture applicable to the 2025 Bonds. The 2025 Bonds are not subject to redemption or any increase in interest rates should an event of taxability occur and will remain outstanding until maturity or prior redemption in accordance with the provisions contained in the Indenture. See the caption “TAX MATTERS.”

APPROVAL OF LEGAL PROCEEDINGS
The valid, legal and binding nature of the 2025 Bonds is subject to the approval of Best Best & Krieger LLP, acting as Bond Counsel. The form of such legal opinion is attached hereto as Appendix C, and such legal opinion will be attached to each 2025 Bond. Certain legal matters will be passed upon for the Utility Authority by Stradling Yocca Carlson & Rauth LLP, as Disclosure Counsel, and by the City Attorney, for the Underwriter by its counsel, Anzel Galvan LLP, and for the Trustee by its counsel.

LITIGATION
At the time of delivery of and payment for the 2025 Bonds, the Utility Authority will certify substantially to the effect that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, pending or, to the knowledge of the Utility Authority, threatened against the Utility Authority affecting the existence of the Utility Authority or the titles of its directors or officers to their respective offices or seeking to restrain or to enjoin the sale or delivery of the 2025 Bonds, the application of the proceeds thereof in accordance with the Indenture, or in any way contesting or affecting the validity or enforceability of the 2025 Bonds, the Indenture, or any action of the Utility Authority contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement thereto, or contesting the powers of the Utility Authority or its authority with respect to the 2025 Bonds or any action of the Utility Authority contemplated by any of said documents, nor to the knowledge of the Utility Authority, is there any basis therefor.

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TAX MATTERS
In the opinion of Best Best & Krieger LLP, Riverside, California, subject, however, to certain qualifications described in this Official Statement, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants, the interest on the 2025 Bonds is excluded from gross income for federal income tax purposes, and interest on the 2025 Bonds is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals and corporations; however, interest on the 2025 Bonds is taken into account in determining the annual adjusted financial statement income of certain corporations for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, interest on the 2025 Bonds is exempt from California personal income tax.

The opinions set forth in the preceding paragraph are subject to the condition that the Utility Authority and City comply with all requirements of the Internal Revenue Code of 1986, as amended (“Tax Code”) that must be satisfied subsequent to the issuance of the 2025 Bonds. The Utility Authority and City have made certain representations and covenanted to comply with each such requirement. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the 2025 Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the 2025 Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel’s attention after the date of issuance of the 2025 Bonds may adversely affect the value of, or the tax status of interest on, the 2025 Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events, or matters.

If the initial offering price to the public (excluding bond houses and brokers) at which a 2025 Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a 2025 Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the 2025 Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such 2025 Bonds to determine taxable gain upon disposition (including sale, prepayment, or payment on maturity) of such 2025 Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the 2025 Bonds who purchase the 2025 Bonds after the initial offering of a substantial amount of such maturity. Owners of such 2025 Bonds should consult their own tax advisors with respect to the tax consequences of ownership of 2025 Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such 2025 Bonds under federal individual alternative minimum taxes.

Under the Tax Code, original issue premium is amortized on an annual basis over the term of the 2025 Bond (said term being the shorter of the bond’s maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the 2025 Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a 2025 Bond is amortized each year over the term to maturity of the 2025 Bond on the basis of a constant interest rate

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compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized 2025 Bond premium is not deductible for federal income tax purposes.

Owners of premium 2025 Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such 2025 Bonds.

Current and future legislative proposals, if enacted into law, clarification of the Tax Code, or court decisions may cause interest with respect to the 2025 Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code, or court decisions may also affect the market price for, or marketability of, the 2025 Bonds. Prospective purchasers of the 2025 Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

The opinion of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel’s judgment as to the proper treatment of the 2025 Bonds for federal income tax purposes. It is not binding on the Internal Revenue Service (“IRS”) or the courts.

Furthermore, Bond Counsel cannot give and has not given any opinion or assurance about the future activities of the Utility Authority or City or about the effect of future changes in the Tax Code, the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The Utility Authority and City have covenanted, however, to comply with the requirements of the Tax Code.

A copy of the proposed form of opinion of Bond Counsel is attached hereto as APPENDIX C.

Owners of the 2025 Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the 2025 Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the 2025 Bonds other than as expressly described above.

The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the 2025 Bonds, or as to the consequences of owning or receiving interest on the 2025 Bonds, as of any future date.

Prospective purchasers of the 2025 Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

RATING
The Utility Authority expects that S&P Global Ratings, a Standard & Poor’s Financial Services LLC business (“S&P”), will assign the 2025 Bonds the rating of “__”. Future events could have an adverse impact on the rating of the 2025 Bonds, and there is no assurance that any credit rating that is given to the 2025 Bonds will be maintained for any period of time or that the rating may not be qualified, downgraded, lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant. Any such qualification, downgrade, lowering or withdrawal of the rating may have an adverse effect on the market price of the 2025 Bonds. The rating reflects only the views of S&P (which views and criteria could change at any time), and an explanation of the significance of such rating may be obtained from S&P. Generally, a rating agency bases its ratings on the information and materials furnished to it (which may include information and material from the City or the Utility Authority that is not included in this Official Statement) and on investigations, studies and assumptions of its own.

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The Utility Authority has covenanted in a Continuing Disclosure Certificate to file notices of any rating changes on the 2025 Bonds with EMMA. See the caption “CONTINUING DISCLOSURE” and Appendix E. Notwithstanding such covenant, information relating to rating changes on the 2025 Bonds may be publicly available from the rating agencies prior to the time that such information is provided to the City or the Utility Authority and prior to the date by which the Utility Authority is obligated to file a notice of rating change. Purchasers of the 2025 Bonds are directed to the rating agencies and their respective websites and official media outlets for the most current ratings with respect to the 2025 Bonds after the initial issuance of the 2025 Bonds.

In providing a rating on the 2025 Bonds, S&P may have performed independent calculations of coverage ratios using its own internal formulas and methodology, which may not reflect the provisions of the Indenture. The Utility Authority makes no representations as to any such calculations, and such calculations should not be construed as a representation by the Utility Authority or the City as to past or future compliance with any financial covenants, the availability of particular revenues for the payment of debt service or for any other purpose.

MUNICIPAL ADVISOR
The City has retained CSG Advisors Incorporated, San Francisco, California, as municipal advisor (the “Municipal Advisor”) in connection with the issuance of the 2025 Bonds. The Municipal Advisor has not undertaken to make an independent verification or to assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.

UNDERWRITING
The 2025 Bonds will be purchased by Stifel, Nicolaus & Company, Incorporated (the “Underwriter”), pursuant to a purchase contract, dated the date hereof (the “Purchase Contract”), by and between the Utility Authority and the Underwriter. Under the Purchase Contract, the Underwriter has agreed to purchase all, but not less than all, of the 2025 Bonds for an aggregate purchase price of $______ (representing the principal amount of the 2025 Bonds, [plus/less] an original issue [premium/discount] of $_____, and less an Underwriter’s discount of $_____). The Purchase Contract provides that the Underwriter will purchase all of the 2025 Bonds if any are purchased, the obligation to make such a purchase being subject to certain terms and conditions set forth in the Purchase Contract, the approval of certain legal matters by counsel and certain other conditions.

The initial public offering prices stated on the inside cover page of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2025 Bonds to certain dealers (including dealers depositing 2025 Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices.

The Underwriter and its affiliates comprise a full service financial institution engaged in activities which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and nonfinancial activities and services. The Underwriter and its affiliates may have provided, and may in the future provide, a variety of these services to the Utility Authority and to persons and entities with relationships with the Utility Authority, for which they received or will receive customary fees and expenses.

In the ordinary course of these business activities, the Underwriter and its affiliates may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the Utility Authority (directly, as

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collateral securing other obligations or otherwise) and/or persons and entities with relationships with the Utility Authority.

The Underwriter and its affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire such assets, securities and instruments. Such investment and securities activities may involve securities and instruments of the Utility Authority.

CONTINUING DISCLOSURE
The Utility Authority has covenanted in a Continuing Disclosure Certificate, dated the date of issuance of the 2025 Bonds, for the benefit of the holders and Beneficial Owners of the 2025 Bonds to provide certain financial information and operating data relating to the Wastewater Enterprise by not later than April 1 following the end of the City’s Fiscal Year (currently its Fiscal Year ends on June 30) (the “Annual Report”), commencing on April 1, 2026 with the report for the Fiscal Year ended June 30, 2025, and to provide notices of the occurrence of certain enumerated events. The Annual Report and the notices of enumerated events will be filed by the Utility Authority with EMMA, which is maintained on the Internet at http://emma.msrb.org/.

The specific nature of the information to be contained in the Annual Report and the notices of enumerated events are set forth in Appendix E. These covenants have been made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2-12.
[The City’s audited financial statements for Fiscal Year 2021, as well as certain information required to be updated for Fiscal Years 2021 and 2022, was not properly linked to all CUSIPs for one series of bonds issued by the City’s former redevelopment agency. In addition, certain Fiscal Year 2022 information required to be updated under continuing disclosure undertakings for the 2012 Bonds and wastewater revenue bonds issued by the Utility Authority was filed one day after the date when such information was due. Except as set forth in this paragraph, the City, the Utility Authority and their related entities have not failed to comply in all material respects with their continuing disclosure undertakings in the last five years.] In order to assure compliance with its continuing disclosure obligations going forward, the City has adopted continuing disclosure compliance policies and procedures as part of its debt management policy. See the caption “THE CITY—Governance and Management—Management Policies—Debt Management Policy.” In addition, the City retains third party consultants (Willdan Financial Services and Spicer Consulting) to assist with its continuing disclosure obligations.

FINANCIAL INTERESTS
The fees being paid to the Underwriter, Bond Counsel, Disclosure Counsel and counsel to the Underwriter are contingent upon the issuance and delivery of the 2025 Bonds.

MISCELLANEOUS
Insofar as any statements made in this Official Statement involve matters of opinion or of estimates, whether or not expressly stated, they are set forth as such and not as representations of fact. No representation is made that any of such statements made will be realized. Neither this Official Statement nor any statement which may have been made verbally or in writing is to be construed as a contract with the Owners of the 2025 Bonds.

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The execution and delivery of this Official Statement have been duly authorized by the Utility Authority.

CORONA UTILITY AUTHORITY
By:

Executive Director

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APPENDIX A

FINANCIAL STATEMENTS

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APPENDIX B

SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE

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APPENDIX C

FORM OF OPINION OF BOND COUNSEL

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APPENDIX D

INFORMATION CONCERNING DTC
The information in this section concerning DTC and DTC’s book-entry only system has been obtained from sources that the Utility Authority and the City believe to be reliable, but the Utility Authority and the City take no responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the 2025 Bonds, payment of principal, premium, if any, accreted value, if any, and interest on the 2025 Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the 2025 Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the 2025 Bonds. The 2025 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered 2025 Bond will be issued for each annual maturity of the 2025 Bonds, each in the aggregate principal amount of such annual maturity, and will be deposited with DTC.

DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”).

DTC is rated AA+ by Standard & Poor’s. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

Purchases of 2025 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2025 Bonds on DTC’s records. The ownership interest of each actual purchaser of each 2025 Bonds (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase.

Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2025 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive bonds representing their ownership interests in 2025 Bonds, except in the event that use of the book-entry system for the 2025 Bonds is discontinued.

To facilitate subsequent transfers, all 2025 Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of 2025 Bonds with DTC and their registration in the name

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of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2025 Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such 2025 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of 2025 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2025 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2025 Bonds documents. For example, Beneficial Owners of 2025 Bonds may wish to ascertain that the nominee holding the 2025 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the 2025 Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to 2025 Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Utility Authority as soon as possible after the record date.

The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts 2025 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the 2025 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Utility Authority or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee or the Utility Authority, subject to any statutory or regulatory requirements as may be in effect from time to time.

Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Utility Authority or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

A 2025 Bond Owner shall give notice to elect to have its 2025 Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such 2025 Bond by causing the Direct Participant to transfer the Participant’s interest in the 2025 Bonds, on DTC’s records, to the Trustee. The requirement for physical delivery of 2025 Bond in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the 2025 Bond are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered 2025 Bond to the Trustee’s DTC account.

DTC may discontinue providing its services as depository with respect to the 2025 Bonds at any time by giving reasonable notice to the Utility Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered.

The Utility Authority may decide to discontinue use of the system of book-entry only transfers through DTC (or a successor securities depository). In that event, 2025 Bonds will be printed and delivered to DTC.

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THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE 2025

BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC

PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR

EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE 2025 BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE.

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APPENDIX E

FORM OF CONTINUING DISCLOSURE CERTIFICATE
Upon issuance of the 2025 Bonds, the Utility Authority proposes to enter into a Continuing Disclosure Certificate in substantially the following form:

This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the Corona Utility Authority (the “Utility Authority”) in connection with the issuance of the $____ Corona Utility Authority 2025 Wastewater Revenue Bonds (Wastewater Projects) (the “Bonds”). The 2025 Bonds are being issued pursuant to that certain Indenture of Trust, dated as of September 1, 2025 (the “Indenture”), by and between the Utility Authority (the “Utility Authority”) and The Bank of New York Mellon Trust Company, N.A., as trustee. The Utility Authority covenants and agrees as follows:

1. Purpose of this Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Utility Authority for the benefit of the Holders and Beneficial Owners of the 2025 Bonds and in order to assist the Participating Underwriter in complying with the Rule.

2. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:

Annual Report. The term “Annual Report” means any Annual Report provided by the Utility Authority pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.

Beneficial Owner. The term “Beneficial Owner” means any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries); or (b) is treated as the owner of any Bonds for federal income tax purposes.

EMMA. The term “EMMA” means the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/.

Financial Obligation. The term “Financial Obligation” means a: (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b). The term “Financial Obligation” does not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule.

Fiscal Year. The term “Fiscal Year” means the one-year period ending on the last day of June of each year.

Holder. The term “Holder” means a registered owner of the Bonds.

Listed Events. The term “Listed Events” means any of the events listed in Sections 5(a) and (b) of this Disclosure Certificate.

Official Statement. The term “Official Statement” means the Official Statement relating to the Bonds dated September ___, 2025 relating to the Bonds.

Participating Underwriter. The term “Participating Underwriter” means any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds.

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Rule. The term “Rule” means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

3. Provision of Annual Reports.
(a) The Utility Authority shall provide not later than each April 1 following the end of its Fiscal Year (commencing April 1, 2026 with a report for Fiscal Year 2025) to EMMA an Annual Report relating to the immediately preceding Fiscal Year which is consistent with the requirements of Section 4 of this Disclosure Certificate, which Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate.
(b) If the Utility Authority is unable to provide to EMMA an Annual Report by the date required in subsection (a), the Utility Authority, in a timely manner, shall send to EMMA a notice in the manner prescribed by the Municipal Securities Rulemaking Board.

4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following:
(a) The combined audited financial statements of the City of Corona (the “City”) and the Utility Authority for the prior Fiscal Year prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If audited annual financial statements are not available by the time specified in Section 3(a) above, unaudited financial statements will be provided as part of the Disclosure Report and audited financial statements will be provided when and if available; and (b) To the extent not contained in the audited financial statements, updates of the belowlisted financial information and operating data relating to the Bonds and the Wastewater Enterprise substantially similar to the information and data contained in the Official Statement; provided that such information shall be updated only for the last completed Fiscal Year prior to the filing of the Annual Report:
(c) Principal amount of the Bonds outstanding.
(d) An update of the information in the following tables in the Official Statement:
(I) Under the caption “THE WASTEWATER ENTERPRISE”:
(i) City of Corona Historic Wastewater Enterprise Connections; (ii) City of Corona Historic Wastewater Enterprise Daily Average Flow;
(iii) City of Corona Ten Largest Wastewater Enterprise Customers; and (iv) City of Corona Wastewater Enterprise Rates;
(II) Under the caption “WASTEWATER ENTERPRISE FINANCIAL INFORMATION,” Historic Wastewater Operating Results (Fiscal Year Ended June 30); and

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Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or the Utility Authority or related public entities, which have been submitted to EMMA; provided, that if any document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board; and provided further, that the Utility Authority shall clearly identify each such document so included by reference.

5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the Utility Authority shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not more than ten (10) Business Days after the event:

1. principal and interest payment delinquencies;

2. unscheduled draws on debt service reserves reflecting financial difficulties;

3. unscheduled draws on credit enhancements reflecting financial difficulties;

4. substitution of credit or liquidity providers, or their failure to perform;

5. adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability or Notices of Proposed Issue (IRS Form 5701 TEB);

6. tender offers;

7. defeasances;

8. ratings changes;

9. bankruptcy, insolvency, receivership or similar proceedings of the Utility Authority; Note: For the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person; and

10. default, event of acceleration, termination event, modification of terms or other similar events under the terms of a Financial Obligation of the Utility Authority, any of which reflect financial difficulties.
(b) Pursuant to the provisions of this Section 5, the Utility Authority shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material, in a timely manner not more than ten (10) Business Days after the event:

1. unless described in Section 5(a)(5), other notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other events affecting the tax status of the Bonds;

2. modifications to the rights of Bond Holders;

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3. Bond redemptions;

4. release, substitution or sale of property securing repayment of the Bonds;

5. non-payment related defaults;

6. the consummation of a merger, consolidation, or acquisition involving the Utility Authority or the sale of all or substantially all of the assets of the Utility Authority, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms;

7. appointment of a successor or additional trustee or the change of the name of a trustee; and

8. incurrence of a Financial Obligation of the Utility Authority, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Utility Authority, any of which affect security holders, if material. (c) If the Utility Authority determines that knowledge of the occurrence of a Listed Event under Section 5(b) would be material under applicable federal securities laws, the Utility Authority shall file a notice of such occurrence with EMMA in a timely manner not more than ten (10) Business Days after the event.

6. Customarily Prepared and Public Information. Upon request, the Utility Authority shall provide to any person financial information and operating data regarding the Utility Authority which is customarily prepared by the Utility Authority and is publicly available.

7. Termination of Obligation. The Utility Authority’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior prepayment or payment in full of all of the Bonds.

If such termination occurs prior to the final maturity of the Bonds, the Utility Authority shall give notice of such termination in the same manner as for a Listed Event under Section 5(a).

8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Utility Authority may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that, in the opinion of nationally recognized bond counsel, such amendment or waiver is permitted by the Rule.

9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Utility Authority from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Utility Authority chooses to include any information in any notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Utility Authority shall not thereby have any obligation under this Disclosure Certificate to update such information or include it in any future notice of occurrence of a Listed Event.

10. Default. In the event of a failure of the Utility Authority to file an annual report under Section 4 hereof or to file a report of a listed event under Section 5 hereof, any Holders or Beneficial Owners of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Utility Authority to make such filing. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the Utility Authority to comply with this Disclosure Certificate shall be an action to compel performance.

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No Holder or Beneficial Owner of the Bonds may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the Utility Authority satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the Utility Authority shall have refused to comply therewith within a reasonable time.

11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Utility Authority, the City, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.

Dated: September ___, 2025 CORONA UTILITY AUTHORITY
By:

Its: Executive Director

$[Par Amount]

CORONA UTILITY AUTHORITY
2025 WASTEWATER REVENUE BONDS
(WASTEWATER PROJECTS)

PURCHASE CONTRACT
[Pricing Date]
Corona Utility Authority
400 South Vicentia Avenue, Suite 320
Corona, CA 92882
Ladies and Gentlemen:

Stifel, Nicolaus & Company, Incorporated (the “Underwriter”), hereby offers to enter into this Purchase Contract with you, the Corona Utility Authority (the “Authority”), for the purchase by the Underwriter and the delivery by you of the Bonds specified below. The Bonds are being issued by the Authority to: (i) currently refund the outstanding Corona Utility Authority 2013 Wastewater Revenue Bonds (Wastewater Projects) (the “Prior Bonds”); (ii) finance the acquisition, construction and equipping of certain improvements to the Wastewater Enterprise (as defined in the belowdefined Indenture); and (iii) pay costs of issuance of the Bonds. This offer is made subject to acceptance by you prior to 11:59 p.m., Los Angeles time, on the date hereof. Upon such acceptance, this Purchase Contract shall be in full force and effect in accordance with its terms and shall be binding upon you and the Underwriter. The Underwriter may withdraw this Purchase Contract upon written notice delivered by the Underwriter to the Executive Director of the Authority at any time before the Authority accepts this Purchase Contract.

1. Purchase and Sale. Upon the terms and conditions and upon the basis of the representations, warranties and agreements hereinafter set forth, the Underwriter agrees to purchase from the Authority, and the Authority agrees to sell to the Underwriter, all (but not less than all) of the $________________ aggregate principal amount of the Authority’s 2025 Wastewater Revenue Bonds (Wastewater Projects) (the “Bonds”), at the purchase price of $________________ (being the principal amount of the Bonds, less an Underwriter’s discount in the amount of $________________, and plus/minus [an][a net] original issue premium/discount of $________________).

The Bonds will have the maturities and bear interest at the rates set forth on Exhibit A hereto.

The Bonds are not subject to redemption prior to maturity. The Bonds will be dated as described in the Official Statement. The Bonds will be issued in book entry form only.

The Authority acknowledges and agrees that: (i) the purchase and sale of the Bonds pursuant to this Purchase Contract is an arm’s-length commercial transaction between the Authority and the Underwriter in which the Underwriter is acting solely as principal and not as agent of the Authority and the Underwriter is not acting as a municipal advisor (within the meaning of Section 15B of The Securities Exchange Act of 1934, as amended), financial advisor or fiduciary to the Authority; (ii) the Underwriter has not assumed any advisory or fiduciary responsibility to the Authority with respect to the transaction contemplated by this Purchase Contract and the discussions, undertakings or

2 procedures leading thereto (irrespective of whether the Underwriter, or any affiliate of the Underwriter has provided other services or is currently providing other services to the Authority on other matters); (iii) the only obligations the Underwriter has to the Authority with respect to the transaction contemplated by this Purchase Contract are expressly set forth in this Purchase Contract; (iv) the Underwriter has financial and other interests that differ from those of the Authority; and (v) the Authority has consulted its own financial and/or municipal legal, accounting, tax and other advisors, as applicable, to the extent the Authority has deemed appropriate. The Authority acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (the “MSRB”).

2. Authorizing Instruments and Law. The Bonds shall be issued pursuant to the provisions of a resolution (the “Resolution”) adopted by the Authority on ________________, 2025 authorizing the issuance of the Bonds. The Bonds are issued pursuant to an Indenture of Trust, dated as of ________________ 1, 2025 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), and shall be as described in the Indenture.

The Bonds are limited obligations of the Authority payable primarily from and secured by certain Net Revenues pledged under the Indenture.

3. Offering the Bonds. The Underwriter agrees to offer all the Bonds to the public initially at the prices (or yields) set forth on the inside cover pages of the Official Statement of the Authority pertaining to the Bonds, dated [Pricing Date] (the Official Statement, together with all appendices thereto, and with such changes therein and supplements thereto as are consented to in writing by the Underwriter, are herein called the “Official Statement”). Subsequent to the initial public offering of the Bonds, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices. The Underwriter also reserves the right to: (i) over-allot or effect transactions that stabilize or maintain the market price of the Bonds at levels above those that might otherwise prevail in the open market and (ii) discontinue such stabilizing, if commenced, at any time without prior notice. “Public Offering” shall include an offering to a representative number of institutional investors or registered investment companies, regardless of the number of such investors to which the Bonds are sold.

4. Establishment of Issue Price.

A. The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.

B. Except as set forth in Exhibit A attached hereto, the Authority will treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Contract, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold

3 Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Authority or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds.

C. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Contract at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. Exhibit A also sets forth, as of the date of this Purchase Contract, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Contract) and (ii) the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
a. the close of the fifth (5th) business day after the sale date; or b. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter will advise the Authority promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

D. The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and

4 (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.

E. The Authority acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The Authority further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing the issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds.

F. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.

Further, for purposes of this section:
a. “public” means any person other than an underwriter or a related party;
b. “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the public);

5 c. a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
d. “sale date” means the date of execution of this Purchase Contract by all parties.

5. Delivery of Official Statement on the Date Hereof. The Authority shall deliver to the Underwriter one copy of the Official Statement manually executed on behalf of the Authority by an authorized representative. The Authority shall also deliver a sufficient number of copies of the Official Statement to enable the Underwriter to distribute a single copy of each Official Statement to any potential customer of the Underwriter requesting an Official Statement during the time period beginning when the Official Statement becomes available and ending on the End Date (defined below). The Authority shall deliver these copies to the Underwriter within seven (7) business days after the execution of this Purchase Contract and in sufficient time to accompany or precede any sales confirmation that requests payment from any customer of the Underwriter. The Underwriter shall inform the Authority in writing of the End Date, and covenants to file the Official Statement with the Municipal Securities Rulemaking Board (the “MSRB”) on a timely basis. “End Date” as used herein is that date which is the earlier of:
(a) ninety (90) days after the end of the underwriting period, as defined in SEC Rule 15c2-12 adopted by the Securities and Exchange Commission (the “SEC”) on June 28, 1989 (“Rule 15c2-12”); or
(b) the time when the Official Statement becomes available from the MSRB, but in no event less than twenty-five (25) days after the underwriting period (as defined in Rule 15c2-12) ends.

The Authority has authorized the use of the Official Statement and the Authority Documents in connection with the public offering of the Bonds. The Authority also has consented to the use by the Underwriter prior to the date hereof of the Preliminary Official Statement dated _______________, 2025, relating to the Bonds in connection with the public offering of the Bonds (which, together with all appendices thereto, is herein called the “Preliminary Official Statement”).

Authorized officers of the Authority have certified to the Underwriter that such Preliminary Official Statement was deemed to be final as of its date for purposes of Rule 15c2-12, with the exception of certain final pricing and related information referred to in Rule 15c2-12. The Underwriter has distributed a copy of the Preliminary Official Statement to potential customers on request.

6. The Closing. At 8:00 A.M., California time, on [Closing Date], or at such other time or on such earlier or later business day as shall have been mutually agreed upon by the Authority and the Underwriter, the Authority will deliver (i) the Bonds in book entry form through

6 the facilities of The Depository Trust Company (“DTC”), and (ii) the closing documents hereinafter mentioned at the offices of Best Best & Krieger LLP, Riverside, California (“Bond Counsel”), or another place to be mutually agreed upon by the Authority and the Underwriter. The Underwriter will accept such delivery from the Authority. The Underwriter will pay the purchase price of the Bonds as set forth in Section 1 hereof by wire transfer of immediately available funds. This payment and delivery, together with the delivery of the aforementioned documents, is herein called the “Closing.”

7. Authority Representations, Warranties and Covenants. The Authority represents, warrants and covenants to the Underwriter that:
(a) The Authority is a joint exercise of powers agency, duly organized and validly existing pursuant to the Constitution and laws of the State of California (the “State”), and has all necessary power and authority to enter into and perform its duties under the Indenture, [the Escrow Deposit and Trust Agreement dated as of ________________ 1, 2025 (the “Escrow Agreement”), between the Authority and the Escrow Bank], Continuing Disclosure Certificate, dated the Closing Date (the “Continuing Disclosure Certificate”), of the Authority and this Purchase Contract (collectively, the “Authority Documents”).
(b) The Bonds, when issued in accordance with the Indenture, will be legally valid and binding special obligations of the Authority, entitled to the benefits of the Indenture and enforceable in accordance with their terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally.
(c) To the best knowledge of the Authority, neither the execution and delivery of the Authority Documents, or the approval and execution of the Official Statement or this Purchase Contract, and compliance with the provisions on the Authority’s part contained therein, nor the consummation of any other of the transactions herein and therein contemplated, nor the fulfillment of the terms hereof and thereof, materially conflicts with or constitutes a material breach of or default under nor materially contravenes any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, nor does any such execution, delivery, adoption or compliance result in a security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents.
(d) The Authority Documents have been duly authorized, executed and delivered by the Authority, and, assuming due authorization, execution and delivery by the other parties thereto, as applicable, constitute legal, valid and binding agreements of the Authority enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against cities and agencies in the State of California.
(e) Except as may be required under blue sky or other securities laws of any state, there is no consent, approval, authorization or other order of, or filing with, or certification by,

7 any regulatory agency having jurisdiction over the Authority required for the consummation by the Authority of the transactions contemplated by the Official Statement and this Purchase Contract. (f) To the best of the knowledge of the Authority, there is, and on the Closing there will be, no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the Authority to restrain or enjoin the issuance or delivery of any of the Bonds, or the payment or collection of any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity of the Authority Documents or the authority of the Authority to approve this Purchase Contract, or enter into the Authority Documents or contesting the powers of the Authority to enter into or perform its obligations under any of the foregoing or in any way contesting the powers of the Authority in connection with any action contemplated by this Purchase Contract or to restrain or enjoin the execution of, or, except as described in the Preliminary Official Statement and the Official Statement, the issuance or delivery of any of the Bonds, or the payment or collection of any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, nor is there any basis for any such action, suit, proceeding or investigation.
(g) The Preliminary Official Statement provided to the Underwriter has been deemed final by the Authority, as required by Rule 15c2-12. As of the date thereof and at all times subsequent thereto up to and including the End Date, the information relating to the Authority, the Bonds, the Wastewater Enterprise and the Authority Documents contained in the Official Statement was and will be materially complete for its intended purposes. The information relating to the Authority, the Bonds, the Wastewater Enterprise and the Authority Documents contained in the Official Statement (excluding any information with respect to DTC or the book-entry only system (as defined in the Official Statement and discussed below)) is true and correct in all material respects and such information does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect. (h) The Authority agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the Authority will not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject.
(i) By official action of the Authority prior to or concurrently with the execution hereof, the Authority has duly approved the distribution of the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations on its part contained in the Authority Documents and the consummation by it of all other transactions contemplated by the Official Statement and this Purchase Contract. (j) To the best knowledge of the Authority, it is not in breach of or default under any material applicable law or administrative regulation of the State of California or the United States or any material applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject and in connection with which the Authority is obligated to make payments from its own funds, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument the consequence of

8 which could be to materially and adversely affect the performance of the Authority under the Authority Documents.
(k) If between the date of this Purchase Contract and the End Date an event occurs, of which the Authority has knowledge, which might or would cause the information relating to the Authority, the Wastewater Enterprise or the Authority’s functions, duties and responsibilities contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading in any material respect, the Authority will notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority will cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred will be paid for by the Authority. (l) If the information relating to the Wastewater Enterprise or the Authority, or its functions, duties and responsibilities contained in the Official Statement, is amended or supplemented pursuant to the immediately preceding subparagraph, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subparagraph) at all times subsequent thereto up to and including the date of the Closing, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading in any material respect. (m) The Authority covenants that it will comply with all tax covenants relating to it in the Authority Documents, the Tax Certificate of the Authority and this Purchase Contract. (n) Substantially all the proceeds from the sale of the Bonds (after deducting the expenses of issuance and sale of the Bonds paid for from such proceeds) will be used to finance certain improvements to the Wastewater Enterprise and defease and redeem the Prior Bonds, and the Authority will not take or omit to take any action which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner contrary to that provided in the Indenture.
(o) The Authority will deliver all opinions, certificates, letters and other instruments and documents reasonably required by the Underwriter and this Purchase Contract. (p) Any certificate of the Authority delivered to the Underwriter shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein and as to the authority of the representative to deliver such certificate and make such representation and warranty.
(q) As of the time of acceptance hereof and as of the Closing, the Authority does not, and will not have outstanding, any indebtedness that is secured by a lien on Gross Revenues except as disclosed in the Official Statement.
(r) Between the date of this Purchase Contract and the date of Closing, the Authority will not, without the prior written consent of the Underwriter, and except as disclosed in

9 the Official Statement, offer or issue any certificates, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent, secured by a lien on Net Revenues. (s) All authorizations, approvals, licenses, permits, consents and orders of or filings with any governmental authority, legislative body, board, agency or commission having jurisdiction in the matters which are required for the due authorization of, which would constitute a condition precedent to or the absence of which would adversely affect the due performance by the Authority of its obligations in connection with, the Authority Documents have been duly obtained or made, except as may be required under the Blue Sky or securities laws of any state in connection with the offering and sale of the Bonds.
(t) The Authority has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the Authority is a bond issuer whose arbitrage certifications may not be relied upon.
(u) The written information supplied by the Authority to the Underwriter with respect to the financial information relating to the Wastewater Enterprise is true, correct and complete in all material respects for the purposes for which it was supplied. (v) The financial statements of the City of Corona (the “City”) for the Fiscal Year ending June 30, 2024, included as an appendix to the Preliminary Official Statement and Official Statement fairly represent the receipts, expenditures, assets, liabilities and cash balances of such amounts and, insofar as presented, other funds of the City as of the dates and for the periods therein set forth. Except as disclosed in the Official Statement or otherwise disclosed in writing to the Underwriter, there has not been any materially adverse change in the financial condition of the City or in its operations since June 30, 2024, and there has been no occurrence, circumstance or combination thereof which is reasonably expected to result in any such materially adverse change. (w) Except as otherwise described in the Preliminary Official Statement and Official Statement, the Authority has not failed in any material respect to comply with any undertaking of the Authority under Rule 15c2-12 in the previous five years.

8. Representations of the Underwriter. By entering into this Purchase Contract, the Underwriter certifies that it and its parent company, wholly or majority-owned subsidiaries, and other affiliates, if any, are not currently engaged in, or for the duration of this Agreement will not engage in, a boycott of goods or services from the State of Israel; companies doing business in or with the State of Israel or authorized by, licensed by, or organized under the laws of the State of Israel; or persons or entities doing business in the State of Israel. The Underwriter understands that “boycott” means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations, but does not include an action made for ordinary business purposes.

9. Closing Conditions. The Underwriter has entered into this Purchase Contract in reliance upon the representations, warranties and covenants herein and the performance by the Authority of its respective obligations hereunder, both as of the date hereof and as of the date of the Closing. The Underwriter’s obligations hereunder are and shall be subject to the following additional conditions:

10 (a) Bring-Down Representation. The representations, warranties and covenants of the Authority contained herein shall be true and correct at the date hereof and at the time of the Closing, as if made on the date of the Closing.
(b) Executed Agreements and Performance Thereunder. At the time of the Closing:
(i) the Authority Documents shall be in full force and effect, and shall not have been amended, modified or supplemented except with the written consent of the Underwriter; (ii) there shall be in full force and effect the Resolution as, in the opinion of Bond Counsel, shall be necessary in connection with the transactions on the part of the Authority contemplated by the Official Statement and the Authority Documents; (iii) the Authority shall perform or have performed its obligations required as specified in the Authority Documents to be performed at or prior to Closing; and (iv) the Official Statement shall not have been supplemented or amended, except pursuant to Paragraph 7(k) or as otherwise may have been agreed to in writing by the Underwriter.
(c) No Default. At the time of the Closing, no default shall have occurred or be existing under the Authority Documents and the Authority shall not be in default in the payment of principal or interest on any of its bonded indebtedness which default shall adversely impact the ability of the Authority to make payments on the Bonds. (d) Termination Events. The Underwriter shall have the right to terminate this Purchase Contract, without liability therefor, by written notification to the Authority if at any time at or prior to the Closing:
(i) Any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or the Official Statement, or results in the Preliminary Official Statement or the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading and, in either such event, the Authority refuses to permit the Official Statement to be supplemented to supply such statement or information, or the effect of the Official Statement as so supplemented is to materially adversely affect the market price or marketability of the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; or
(ii) Legislation shall be enacted by or introduced in the Congress of the United States or recommended to the Congress for passage by the President of the United States, or the Treasury Department of the United States or the Internal Revenue Service or favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the

11 United States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, temporary or proposed), press release, statement or other form of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to alter, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds, or the interest on the Bonds as described in the Official Statement, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal income tax consequences of any of the transactions contemplated herein; or
(iii) Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary, or proposed), press release or other form of notice issued or made by or on behalf of the SEC, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering, or sale of obligations of the general character of the Bonds, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities law as amended and then in effect; or
(iv) A general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the SEC or any other governmental authority having jurisdiction; or
(v) The declaration of a general banking moratorium by federal, New York or State authorities or a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or (vi) Establishment of any new restrictions in securities materially affecting the free market for securities of the same nature as the Bonds (including the imposition of any limitations on interest rates) or the charge to the net capital requirements of the Underwriter established by the New York Stock Exchange, the SEC, any other Federal or state agency or the Congress of the United States, or by Executive Order; or
(vii) The occurrence of an adverse event in the affairs of the Authority which, in the reasonable judgement of the Underwriter, materially impairs the investment quality of the Bonds; or

12 (viii) Any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Authority, its property, income or securities (or interest thereon), or the ability of the Authority to issue the Bonds and pledge the Net Revenues as contemplated by the Indenture and the Official Statement; or
(ix) There shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or (x) There shall have occurred since the date of this Purchase Contract any materially adverse change in the affairs or financial position, results of operations or condition, financial or otherwise, of the Authority, other than changes in the ordinary course of business or activity or in the normal operation of the Authority, except as described in the Official Statement; or
(xi) Any proceeding shall have been commenced or be
threatened in writing by the SEC against the Authority or the suspension by the SEC of trading in the outstanding securities of the Authority; or (xii) An event described in Section 7(k) hereof shall have occurred which, in the reasonable professional judgment of the Underwriter, requires the preparation and publication of a supplement or amendment to the Official Statement;
(xiii) The marketability of the Bonds or the market price thereof, in the opinion of the Underwriter, has been materially and adversely affected by disruptive events, occurrences or conditions in the securities or debt markets;
(xiv) The purchase of and payment for the Bonds by the
Underwriter, or the resale of the Bonds by the Underwriter, on the terms and conditions herein provided shall be prohibited by any applicable law, governmental authority, board, agency or commission;
(xv) Any rating of the Bonds or other obligations of the Authority by a national rating agency shall have been withdrawn or downgraded or placed on negative outlook or negative watch by any major credit rating agency; or
(xvi) A decision by a court of the United States shall be rendered, or a stop order, release, regulation or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made, to the effect that the issuance, offering or sale of the Securities, including the underlying obligations as contemplated by this Agreement or by the Official Statement, or any document relating to

13 the issuance, offering or sale of the Securities, is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act, the Exchange Act and the Trust Indenture Act. (e) Closing Documents. At or prior to the Closing, the Underwriter shall receive with respect to the Bonds (unless the context otherwise indicates) the following documents:
(1) Bond Opinion. The approving opinion of Bond Counsel dated the date of the Closing and substantially in the form included as APPENDIX C to the Official Statement, together with a letter from such counsel, dated the date of the Closing and addressed to the Underwriter and the Trustee to the effect that the foregoing opinion may be relied upon by the Underwriter to the same extent as if such opinion was addressed to them. (2) Supplemental Opinion. A supplemental opinion or opinions of Bond Counsel addressed to the Underwriter, in substantially the form and to the following effect:
(a) The statements and information contained in the Official Statement on the cover page relating to tax exemption, the description of the Bonds, and security for the Bonds, and under the captions “THE 2025 BONDS” (except for the information under the caption “Book-Entry Only System”), “SECURITY FOR THE 2025 BONDS” and “TAX MATTERS,” and in APPENDICES B and C, are true and accurate in all material respects; and
(b) The Bonds are exempt from registration under Section 3(a)(2) of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended; (c) The Purchase Contract has been duly authorized, executed and delivered by the Authority, and, assuming due authorization, execution and delivery by the other party thereto, constitutes legal, valid and binding agreement of the Authority enforceable against the Authority in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and equitable remedies if equitable remedies are sought, and except no opinion need be expressed as to the enforceability of the indemnification, waiver, choice of law or contributions provisions contained therein.
(3) Authority Counsel Opinion. An opinion of the Authority’s General Counsel, dated as of the Closing and addressed to the Authority, the Trustee and the Underwriter, in form and substance acceptable to Bond Counsel and counsel for the Underwriter, to the following effect:
(i) the Authority is a joint exercise of powers agency, duly organized and validly existing under the Constitution and the laws of the State of California;
(ii) the preparation and distribution of the Preliminary Official Statement, the Official Statement and this Purchase Contract have been duly approved by the Authority;

14 (iii) the resolution of the Authority approving and authorizing the execution and delivery of the Official Statement, this Purchase Contract and the Authority Documents has been duly adopted at a meeting of the governing body of the Authority which was called and held pursuant to law, and with all public notice required by law and at which a quorum was present and acting throughout; (iv) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, to the best knowledge of such counsel, threatened against or affecting the Authority, which would adversely impact the Authority’s ability to complete the transactions described in and contemplated by the Official Statement, to restrain or enjoin the payments under, or in any way contesting or affecting the validity of the Authority Documents, or the transactions described and defined in the Official Statement wherein an unfavorable decision, ruling or finding would adversely affect the validity and enforceability of the Authority Documents;
(v) the execution and delivery of the Authority Documents and the approval of the Official Statement, and compliance with the provisions thereof and hereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the Authority a breach of or default under any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Authority is subject;
(vi) the Authority Documents have been duly authorized, executed and delivered by the Authority, and, assuming due authorization, execution and delivery by the other parties thereto, as applicable, constitute legal, valid and binding agreements of the Authority enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against public agencies in the State of California; (vii) no authorization, approval, consent, or other order of the State of California or any other governmental authority or agency within the State of California is required for the valid authorization, execution and delivery of the Authority Documents and the approval of the Official Statement; and (viii) without having undertaken any independent inquiry, nothing has come to their attention which would lead them to believe that the information contained in the Official Statement in the Sections “THE UTILITY AUTHORITY,” “THE CITY,” “THE WASTEWATER ENTERPRISE” and “LITIGATION” contains an untrue statement or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. (4) Trustee Counsel Opinion. The opinion of counsel to the Trustee, dated the date of the Closing, addressed to the Authority and the Underwriter, in form and substance acceptable to Bond Counsel and counsel for the Underwriter.

15 (5) Negative Assurance Letter of Disclosure Counsel. A letter from Stradling Yocca Carlson & Rauth LLP, disclosure counsel to the Authority (“Disclosure Counsel”), dated the Closing Date, addressed to the Underwriter and the Authority, to the effect that, based upon its participation in the preparation of the Official Statement as counsel to the Authority and without having undertaken to determine independently the fairness, accuracy, or completeness of the statements contained in the Official Statement, such counsel has no reason to believe that the Preliminary Official Statement (except for the completion of pricing information and any other matters or terms of the Bonds relating thereto) as of its date or as of the date of this Purchase Contract or the Official Statement as of its date or as of the date of the Closing (excluding therefrom (i) the expressions of opinion, the assumptions, the projections, estimates and forecasts, the charts, the financial statements or other financial, numerical, economic, demographic or statistical data, or assessed valuations contained in the Official Statement; (ii) any CUSIP numbers or information relating thereto; (iii) any information with respect to The Depository Trust Company and its bookentry system; (iv) any information contained in the appendices to the Official Statement; (v) any information incorporated by reference into the Official Statement; (vi) any information with respect to the underwriters or underwriting matters with respect to the Bonds; (vii) information under the caption “LITIGATION”; and (viii) any information with respect to the ratings on the Bonds and the rating agencies referenced therein, including but not limited to information under the caption “RATING”) contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(6) Authority Certificate. A certificate, dated the date of the Closing, signed by a duly authorized official of the Authority satisfactory in form and substance to the Underwriter, (a) confirming as of such date the representations and warranties of the Authority contained in this Purchase Contract; (b) certifying that the Authority has complied with all agreements, covenants and conditions to be complied with by the Authority at or prior to the Closing under the Authority Documents; (c) certifying that to the best of such official’s knowledge, no event affecting the Authority has occurred since the date of the Official Statement which either makes untrue or incorrect in any material respect as of the Closing the statements or information contained in the Official Statement or is not reflected in the Official Statement but should be reflected therein in order to make the statements and information therein not misleading in any material respect; (d) certifying that, except as described in the Preliminary Official Statement as of its date and as of the date hereof and the Official Statement, no litigation is pending or, to his or her knowledge, threatened (i) seeking to restrain or enjoin the issuance or delivery of any of the Bonds, (ii) in any way contesting or affecting any authority for the issuance of the Bonds or the validity of the Bonds, the Authority Document, (iii) in any way contesting the creation, existence or powers of the Authority or the application of the proceeds of the Bonds, or (iv) which, if adversely determined, could materially adversely affect the financial position or operating condition of the Authority or the City or the transactions contemplated by the Preliminary Official Statement as of its date and as of the date hereof and the Official Statement as of its date and as of the Closing Date or any Authority Document and (e) certifying that the Authority has authorized and consented to the inclusion in the Official Statement of the City’s financial report and accountant’s opinion for the year ended June 30, 2024, and no further consent of any party is required for such inclusion.

16 (7) Trustee’s Certificate. A Certificate of the Trustee, dated the date of Closing, addressed to the Authority and the Underwriter, in form and substance acceptable to counsel for the Underwriter to the following effect:
(i) The Trustee is duly organized and existing as a national banking association in good standing under the laws of the United States, having the full power and authority to accept and perform its duties under the Indenture;
(ii) Subject to the provisions of the Indenture, the Trustee will apply the proceeds from the Bonds to the purposes specified in the Indenture; and (iii) The Trustee has duly authorized and executed the Indenture and authenticated the Bonds.
(8) Official Statement. The Official Statement and each supplement or amendment, if any, thereto, executed on behalf of the Authority by a duly authorized officer of the Authority.
(9) Authority Documents. An original executed copy of each of the Authority Documents.
(10) Authority Resolution. A certified copy of the Resolution. (11) IRS Form 8038-G. Evidence that the federal tax information form 8038-G has been prepared for filing.
(12) Nonarbitrage Certificate. A tax and nonarbitrage certificate in form satisfactory to Bond Counsel.
(13) Rating. Evidence that the Bonds have been rated as set forth in the Official Statement and that such rating continues in effect as of the Closing. (14) CDIAC Statement. A copy of the Notice of Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 53583 of the Government Code and Section 8855(g) of the Government Code. (15) Underwriter’s Counsel Opinion. An opinion, dated the date of the Closing and addressed to the Underwriter, of Anzel Galvan LLP, counsel to the Underwriter, in such form as may be acceptable to the Underwriter.
(16) City Certificate. A certificate, dated the Closing Date, signed by the City Manager of the City, in form and substance satisfactory to the Underwriter, to the effect that (i) the financial statements of the City as of June 30, 2024, fairly represent the receipts, expenditures, assets, liabilities and cash balances of such amounts and, insofar as presented, other funds of the Authority as of the dates and for the periods therein set forth and (ii) except as disclosed in the Preliminary Official Statement and the Official Statement, since June 30, 2024, no materially adverse change has occurred, or any development involving a prospective material change, in the financial position or results of operations of the City and the City has not incurred since June 30, 2024, any

17 material liabilities other than in the ordinary course of business or as set forth in or contemplated by the Official Statement.
(17) DTC Blanket Letter of Representations. A copy of the Authority’s executed Blanket Letter of Representation to The Depository Trust Company. [(18) Verification Report. A copy of the report of Causey Public Finance, LLC, Denver, Colorado, as verification agent, as to the sufficiency of the deposits into the escrow fund established under the 2013 Escrow Agreement to pay the principal and accrued interest on the Prior Bonds on , 2025.]
[(19) Defeasance and Discharge Opinion. An opinion of bond counsel for the Prior Bonds, addressed to the Authority, the trustee for the Prior Bonds (the “Prior Trustee”) and the Underwriter, that satisfies the applicable requirements for the defeasance and discharge of the Prior Bonds under Article X of the Indenture of Trust, dated as of June 1, 2013 (the “Prior Indenture”), between the Authority and Prior Trustee, namely to the effect that: (i) the defeasance of the Prior Bonds will not adversely impact the exclusion from gross income for federal income tax purposes of interest on the Prior Bonds or refunded bonds, (ii) the Prior Bonds are no longer “Outstanding” under the Prior Indenture, and (iii) the Prior Bonds have been discharged in accordance with the Prior Indenture.]
[(20)] Additional Documents. Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter, counsel for the Underwriter or Bond Counsel may reasonably request to evidence compliance by the Authority with legal requirements, the truth and accuracy, as of the time of Closing, of the representations of the Authority herein contained and the due performance or satisfaction by the Authority at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Authority and all conditions precedent to the issuance of additional Bonds pursuant to the Indenture shall have been fulfilled.

If the Authority shall be unable to satisfy the conditions contained in this Purchase Contract, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Purchase Contract, this Purchase Contract may be terminated by the Underwriter, and neither the Underwriter nor the Authority shall be under any further obligation hereunder.

10. Expenses. Whether or not the Bonds are sold to the Underwriter, the Underwriter shall be under no obligation to pay, and the Authority shall pay or cause to be paid, the expenses incident to the performance of the obligations of the Authority hereunder including but not limited to:
(a) the costs of the preparation and printing, or other reproduction (for distribution on or prior to the date hereof) of the Authority Documents and the cost of preparing, printing, issuing and delivering the Bonds;
(b) the fees and disbursements of any counsel, financial advisors, accountants or other experts or consultants retained by the Authority; (c) the fees and disbursements of Bond Counsel and Disclosure Counsel;

18 (d) the cost of preparation and printing the Preliminary Official Statement and any supplements and amendments thereto and the cost of preparation and printing of the Official Statement, including a reasonable number of copies thereof for distribution by the Underwriter; (e) charges of rating agencies for the rating of the Bonds; and (f) the expenses incurred by the Underwriter in connection with the public offering and distribution of the Bonds.

The Underwriter shall pay: (i) the cost of preparation and printing of any “blue sky” filings; (ii) all “blue sky” filing fees in connection with the public offering of the Bonds; (iii) fees, if any, payable to the California Debt and Investment Advisory Commission, the MSRB, the fees associated with obtaining CUSIP numbers for the Bonds, and fees of the Public Securities Association and the California Public Securities Association in connection with the execution and delivery of the Bonds; (iv) the fees, expenses and disbursements of Underwriter’s Counsel; and (v) all other expenses incurred by them in connection with the public offering of the Bonds not outlined in (a) through (f) above, including any advertising expenses incurred by the Underwriter in connection with the public offering and distribution of the Bonds. Any meals in connection with or adjacent to meetings, rating agency presentations, pricing activities or other transaction-related activities shall be considered an expense of the transaction and included in the expense component of the Underwriter’s discount.

Some or all of the expenses to be paid by the Underwriter may be included as part of the expense component of the underwriting discount or commission or may be reimbursed to the Underwriter as out-of-pocket expenses.

11. Notice. Any notice or other communication to be given to the Underwriter may be given by delivering the same to Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, 35th Floor, San Francisco, California 94104, Attention: Public Finance. Any notice or other communication to be given to the Authority pursuant to this Purchase Contract may be given by delivering the same in writing to such entity, at the address set forth on the first page hereof.

12. Entire Agreement. This Purchase Contract, when accepted by the Authority, shall constitute the entire agreement between the Authority and the Underwriter and is made solely for the benefit of the Authority and the Underwriter (including the successors or assigns of any Underwriter). No other person shall acquire or have any right hereunder by virtue hereof, except as provided herein. All the Authority’s representations, warranties and agreements in this Purchase Contract shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of the Underwriter, until the earlier of (a) delivery of and payment for the Bonds hereunder, and (b) any termination of this Purchase Contract.

13. Counterparts. This Purchase Contract may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

14. Severability. In case any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof.

15. State of California Law Governs. The validity, interpretation and performance of the Authority Documents shall be governed by the laws of the State.

19 16. No Assignment. The rights and obligations created by this Purchase Contract shall not be subject to assignment by the Underwriter or the Authority without the prior written consent of the other parties hereto.

20 16. Definitions. Capitalized terms not otherwise defined herein shall have the same meaning as used in the Indenture.

STIFEL, NICOLAUS & COMPANY,

INCORPORATED
By:

Managing Director
The foregoing is hereby agreed to and accepted as of the date first above written:

CORONA UTILITY AUTHORITY
By:

Treasurer
Time of Execution: _____________ p.m. California time
[EXECUTION PAGE OF PURCHASE CONTRACT]

A-1

EXHIBIT A

CORONA UTILITY AUTHORITY
2025 WASTEWATER REVENUE BONDS
(WASTEWATER PROJECTS)
Maturity
(September 1)
Principal
Amount
Interest
Rate Yield Price
10% Test
Satisfied*
10% Test
Not
Satisfied
Subject to
Hold-TheOfferingPrice Rule
(marked if
used)
_______________
* At the time of execution of this Purchase Contract and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Contract.

B-1

EXHIBIT B

FORM OF ISSUE PRICE CERTIFICATE
$[Par Amount]

CORONA UTILITY AUTHORITY
2025 WASTEWATER REVENUE BONDS
(WASTEWATER PROJECTS)
The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated (“Stifel”), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned bonds (the “Bonds”) by the Corona Utility Authority (the “Issuer”).

1. Sale of the Bonds. Stifel offered each Maturity of the Bonds to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. As of the date of this certificate, for each Maturity of the Bonds identified under the column in Exhibit A entitled “10% Test Satisfied,” the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A. [For each remaining Maturity of the Bonds, Stifel agrees to promptly report to the Issuer the prices at which it sells the unsold Bonds of that Maturity to the Public. That reporting obligation shall continue, until either (i) Stifel has sold all the Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity.]

2. Defined Terms.
(a) Issuer means the Corona Utility Authority.
(b) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(c) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.

The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (d) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is [Pricing Date]. (e) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).

B-2
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Stifel’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder.

The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Best Best & Krieger LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.

STIFEL, NICOLAUS & COMPANY,

INCORPORATED
By:

Name:

By:

Name:

Dated: [Closing Date]

B-2

SCHEDULE A

SALE PRICES
[BOND PRICING TO BE ATTACHED]

B-2

SCHEDULE B

PRICING WIRE OR EQUIVALENT COMMUNICATION
(Attached)

27157.11356\44116637.1

ESCROW DEPOSIT AND TRUST AGREEMENT
by and between the

CORONA UTILITY AUTHORITY
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Escrow Bank
Dated as of ___________ 1, 2025
Relating to:

Corona Utility Authority
2013 Wastewater Revenue Bonds
(Wastewater Projects)

27157.11356\44116637.1
1 ESCROW DEPOSIT AND TRUST AGREEMENT
This ESCROW DEPOSIT AND TRUST AGREEMENT (the “Escrow Agreement”) is made and entered into as of __________ 1, 2025, by and between the Corona Utility Authority (the “Authority”) and The Bank of New York Mellon Trust Company, N.A., as Escrow Bank (the “Escrow Bank”) and as Prior Trustee, as hereinafter defined.

W I T N E S S E T H:

WHEREAS, the Authority previously issued its 2013 Wastewater Revenue Bonds (Wastewater Projects) (the “Prior Bonds”) pursuant to that certain Indenture of Trust (the “Indenture”) dated as of June 1, 2013, by and between the Authority and The Bank of New York Mellon Trust Company, N.A. (the “Prior Trustee”); and
WHEREAS, the Prior Indenture provides that in the event that deposits of moneys and certain non-callable Federal Securities (as defined in the Prior Indenture) in an amount, together with investment earnings and certain funds held under the Prior Indenture (defined below), sufficient to pay and discharge all or a portion of the indebtedness of the Prior Bonds at or before maturity, then the obligations of the Authority under the Prior Indenture shall cease and terminate with respect to the obligations so discharged, except only the obligation of the Authority to pay or cause to be paid to the Authority all sums due thereon out of the Escrow Fund with respect to the obligations so discharged and thereafter such Net Revenues (as defined in the Prior Indenture) shall be released from the lien of the Prior Indenture; and WHEREAS, the Authority has determined that it is in the best interests of the Authority at this time to refinance the outstanding Prior Bonds designated in Exhibit B hereto (the “Defeased Bonds”) and to redeem such Defeased Bonds on November [__], 2025 (the “Redemption Date”), at a redemption price of 100% of the principal amount thereof, plus accrued interest; and WHEREAS, the Authority proposes to make the deposit of moneys and non-callable Federal Securities referenced in the Prior Indenture and to appoint the Escrow Bank as its agent for the purpose of applying said deposit to the payment of the Defeased Bonds in accordance with the instructions provided by this Escrow Agreement and redeeming the Defeased Bonds in accordance with the Prior Indenture, and the Escrow Bank will accept said appointment; and WHEREAS, to obtain moneys to make such deposit, the Authority proposes to issue its $[___] 2025 Wastewater Revenue Bonds (Wastewater Projects) (the “Bonds”) pursuant to that certain Indenture of Trust, dated as of October 1, 2025, by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”); and WHEREAS, the Authority wishes to make such a deposit with the Escrow Bank and to enter into this Escrow Agreement for the purpose of providing the terms and conditions for the deposit and application of amounts so deposited; and
WHEREAS, the Escrow Bank has full powers to act with respect to the irrevocable escrow and trust created herein and to perform the duties and obligations to be undertaken pursuant to this Escrow Agreement.

27157.11356\44116637.1
2 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained and for other valuable consideration, the parties hereto do hereby agree as follows:

Section 1. Definition of Federal Securities. As used herein, the term “Federal Securities” means bills, certificates of indebtedness, notes, bonds, or other similar securities which are direct, non-callable obligations of the United States of America, CATS, TIGERS, STRPS, or defeased municipal bonds rates “AAA” by S&P and “Aaa” by Moody’s.

Section 2. Appointment of Escrow Bank. The Authority hereby appoints the Escrow Bank as escrow bank for all purposes of this Escrow Agreement and in accordance with the terms and provisions of this Escrow Agreement, and the Escrow Bank hereby accepts such appointment.

Section 3. Establishment of Escrow Fund. There is hereby created by the Authority with, and to be held by, the Escrow Bank, as security for the payment of the Defeased Bonds as hereinafter set forth, an irrevocable escrow to be maintained in trust by the Escrow Bank on behalf of the Authority and for the benefit of the owners of the Defeased Bonds, said escrow to be designated the “Escrow Fund.” All moneys and Federal Securities deposited in the Escrow Fund shall be held as a special fund for the payment of the redemption of the Defeased Bonds in accordance with the provisions of the Prior Indenture. If at any time the Escrow Bank shall receive actual knowledge that the moneys and Federal Securities in the Escrow Fund will not be sufficient to make any payment required by Section 5 hereof, the Escrow Bank shall notify the Authority of such fact and the Authority shall immediately cure such deficiency. Pending application as provided in this Escrow Agreement, amounts on deposit in the Escrow Fund are hereby irrevocably pledged to secure the payment of the principal of and interest on the Defeased Bonds, which amounts shall be held in trust by the Escrow Bank for the benefit of the registered owners of the Defeased Bonds.

The Escrow Bank may rely upon the conclusion of Causey Public Finance LLC (the “Verification Agent”) in its report dated [DATE] (the “Verification Report”) that the Federal Securities listed on Exhibit A hereto, together with interest to accrue thereon, and cash will be fully sufficient to redeem the Defeased Bonds on the Redemption Date.

Section 4. Deposit into Escrow Fund; Investment of Amounts. Concurrently with delivery of the Bonds, the Authority shall cause to be transferred to the Escrow Bank for deposit into the Escrow Fund the amount of $[_____] in immediately available funds which shall be derived as follows: $[____] from proceeds of the Bonds [and $[___] from amounts deposited in the Reserve Fund for the Prior Bonds and the Prior Trustee is hereby instructed to transfer such monies].

The Escrow Bank shall invest the amount of $[____] of the moneys deposited into the Escrow Fund in the Federal Securities set forth in Exhibit A attached hereto and by this reference incorporated herein (the “Escrowed Defeasance Obligations”). The remainder in the Escrow Fund ($[___]) shall be held in cash uninvested (the “Cash”). The Escrowed Defeasance Obligations shall be deposited with and held by the Escrow Bank in the Escrow Fund solely for the uses and purposes set forth herein.

27157.11356\44116637.1
3 The Escrow Bank shall not be liable or responsible for any loss resulting from any reinvestment made pursuant to this Escrow Agreement and in full compliance with the provisions hereof.

Section 5. Instructions as to Application of Deposit; Authority Retains Right of Optional Redemption. The Authority hereby irrevocably directs and instructs the Escrow Bank to transfer to the Prior Trustee to apply the interest on and maturing principal amount of the Escrowed Defeasance Obligations and Cash to redeem the Defeased Bonds in full on November [__], 2025, at a redemption price of 100% of the principal amount thereof, all as more particularly set forth in Exhibit B attached hereto and hereby made a part hereof. For such purpose of call and redemption prior to maturity of the Prior Bonds, the Authority hereby instructs the Escrow Bank, as Prior Trustee, and the Escrow Bank, as Prior Trustee, hereby agrees to give notice of redemption, such notice of redemption, set forth in Exhibit D hereto, to be given timely for redemption of the Defeased Bonds on the dates indicated in Exhibit B, in accordance with the applicable provisions of the Prior Indenture. Upon the receipt of funds, the Escrow Bank shall send a notice of defeasance substantially in the form of Exhibit C attached hereto.

Section 6. Investment of Any Remaining Moneys. At the written direction of the Authority received at least two (2) Business Days in advance, the Escrow Bank shall purchase substitute Federal Securities for the Escrowed Defeasance Securities then held in the Escrow Fund with the proceeds derived from the sale, transfer, redemption, or other disposition of Federal Securities then on deposit in the Escrow Fund and any uninvested money then held by the Escrow Bank hereunder in accordance with the provisions of this Section; provided, however, that [(a) such written directions of the Authority shall also be provided to the Bond Insurer] and shall be accompanied by (i) the opinion of an independent certified public accountant, addressed to Bond Insurer or firm of certified public accountants of favorable national reputation experienced in the refunding of obligations of political subdivisions, that amounts in the Escrow Fund after such investment, together with interest to be derived therefrom, shall be at all times at least sufficient to make the payments specified in Section 5 hereof, and (ii) an opinion of nationally recognized bond counsel (“Bond Counsel”) that investment in accordance with such directions will not affect, for federal income tax purposes, the exclusion from gross income of interest due with respect to the Prior Bonds or the Bonds, and (b) if the Authority directs such investment or reinvestment to be made in United States Treasury Securities - State and Local Government Series, the Authority shall, at its cost, cause to be prepared and delivered all necessary subscription forms therefor to enable the Escrow Bank to acquire such securities not less than 14 days prior to the date of making such investment. In the event that the Authority shall fail to file any such written directions with the Escrow Bank concerning the reinvestment of any such proceeds, such proceeds shall be held uninvested by the Escrow Bank. Any interest income resulting from investment or reinvestment of moneys pursuant to this Section 6 and not, in the opinion of an independent certified public accountant or firm of certified public accountants of favorable national reputation experienced in the refunding of obligations of political subdivisions, required for the purposes set forth in Section 5 hereof shall be paid to the Trustee for deposit in the Debt Service Fund under the Indenture promptly upon the receipt of such interest income by the Escrow Bank.

Section 7. Application of Certain Terms of Prior Indenture. All of the terms of the Prior Indenture relating to the making of payments of principal and interest with respect to the Defeased Bonds are incorporated in this Escrow Agreement as if set forth in full herein. The

27157.11356\44116637.1
4 provisions of the Prior Indenture relating to the limitations from liability and protections afforded the Prior Trustee and the resignation and removal of the Prior Trustee are also incorporated in this Escrow Agreement as if set forth in full herein and shall be the procedure to be followed with respect to any resignation or removal of the Escrow Bank hereunder.

Section 8. Compensation to Escrow Bank. The Authority shall pay the Escrow Bank full compensation for its duties under this Escrow Agreement, including out-of-pocket costs such as publication costs, redemption or redemption expenses, legal fees and other costs and expenses relating hereto and, in addition, fees, costs and expenses relating to the purchase of any Federal Securities after the date hereof, pursuant to a separate agreement between the Authority and the Escrow Bank. Under no circumstances shall amounts deposited in the Escrow Fund be deemed to be available for said purposes.

Section 9. Liabilities and Obligations of Escrow Bank. The Escrow Bank shall have no obligation to make any payment or disbursement of any type or incur any financial liability in the performance of its duties under this Escrow Agreement unless the Authority shall have deposited sufficient funds with the Escrow Bank to satisfy such obligation. The Escrow Bank may rely and shall be protected in acting upon the written instructions of the Authority or its agents relating to any matter or action as Escrow Bank under this Escrow Agreement.

The Escrow Bank undertakes such duties as specifically set forth herein and no implied duties or obligations shall be read into this Escrow Agreement against the Escrow Bank.

The Authority hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and hold harmless the Escrow Bank and its respective successors, assigns, agents and servants from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, at any time, the Escrow Bank (whether or not also indemnified against by any other person under any other agreement or instrument) and in any way relating to or arising out of the execution and delivery of this Escrow Agreement, the establishment of the Escrow Fund, the retention of the moneys therein and any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance with the provisions of this Escrow Agreement, or as may arise by reason of any act, omission or error of the Escrow Bank made in good faith in the conduct of its duties; provided, however, that the Authority shall not be required to indemnify the Escrow Bank against its own negligence or misconduct. The indemnities contained in this Section 10 shall survive the termination of this Escrow Agreement and the resignation and removal of the Escrow Bank.

The Escrow Bank shall not have any liability hereunder except to the extent of its own negligence or willful misconduct. In no event shall the Escrow Bank be liable for any special indirect or consequential damages.

The Escrow Bank may consult with counsel of its own choice and the opinion of such counsel shall be full and complete authorization to take or suffer in good faith any action hereunder in accordance with such opinion of counsel.

27157.11356\44116637.1
5 The Escrow Bank shall not be responsible for any of the recitals or representations contained herein.

Whenever in the administration of this Escrow Agreement the Escrow Bank shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or willful misconduct on the part of the Escrow Bank, be deemed to be conclusively proved and established by a certificate of an authorized representative of the Authority, and such certificate shall, in the absence of negligence or willful misconduct on the part of the Escrow Bank, be full warrant to the Escrow Bank for any action taken or suffered by it under the provisions of this Escrow Agreement upon the faith thereof.

The liability of the Escrow Bank to make the payments required by this Escrow Agreement shall be limited to the moneys and Federal Securities in the Escrow Fund.

The Escrow Bank shall not be liable for the accuracy of any calculations provided as to the sufficiency of the moneys or Federal Securities deposited with it to pay the principal, interest, or premiums, if any, on the Prior Bonds.

No provision of this Escrow Agreement shall require the Escrow Bank to expend or risk its own funds or otherwise incur any financial liability in the performance or exercise of any of its duties hereunder, or in the exercise of its rights or powers.

The Escrow Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees appointed with due care, and shall not be responsible for any willful misconduct or negligence on the part of any agent, attorney, custodian or nominee so appointed.

The Escrow Agent agrees to accept and act upon instructions or directions pursuant to this Escrow Agreement sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, provided, however, that, the Escrow Agent shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If the Authority elects to give the Escrow Agent e-mail or facsimile instructions (or instructions by a similar electronic method) and the Escrow Agent in its discretion elects to act upon such instructions, the Escrow Agent’s understanding of such instructions shall be deemed controlling. The Escrow Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Escrow Agent’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Authority agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Escrow Agent, including without limitation the risk of the Escrow Agent acting on unauthorized instructions, and the risk of interception and misuse by third parties.

The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive brokerage confirmations of security transactions as they occur, the Authority specifically waives receipt of such confirmations to the extent permitted by law. The Authority further understands that trade

27157.11356\44116637.1
6 confirmations for securities transactions effected by the Escrow Bank will be available upon request and at no additional cost and other trade confirmations may be obtained from the applicable broker. The Escrow Bank will furnish the Authority periodic cash transaction statements which include detail for all investment transactions made by the Escrow Bank hereunder. Upon the Authority’s election, such statements will be delivered via the Escrow Bank’s online service and upon electing such service, paper statements will be provided only upon request.

Section 10. Amendment. This Escrow Agreement may be modified or amended at any time by a supplemental agreement which shall become effective when the written consents of [the Bond Insurer and] owners of one hundred percent (100%) in aggregate principal amount of the Defeased Bonds then outstanding shall have been filed with the Escrow Bank. This Escrow Agreement may be modified or amended at any time by a supplemental agreement, without the consent of any such owners, [and with the consent of the Bond Insurer,] but only (1) to add to the covenants and agreements of any party, other covenants to be observed, or to surrender any right or power herein or therein reserved to the Authority, (2) to cure, correct or supplement any ambiguous or defective provision contained herein, (3) in regard to questions arising hereunder or thereunder, as the parties hereto or thereto may deem necessary or desirable and which, in the opinion of counsel, shall not adversely affect the interests of the owners of the Defeased Bonds or the Bonds, and that such amendment will not cause interest on the Prior Bonds or the Bonds to become subject to federal income taxation.

Section 11. Termination; Unclaimed Money. This Escrow Agreement shall terminate upon redemption of the Prior Bonds; provided, however, that (i) money held by the Escrow Bank pursuant to this Escrow Agreement for the redemption and discharge of the Prior Bonds (which shall not be payable as to interest from and after the date set for redemption) which remain unclaimed for two (2) years after such payments were due, shall be repaid by the Escrow Bank to the Authority free from the trust created by the Prior Indenture and this Escrow Agreement, and the Escrow Bank shall thereupon be released and discharged with respect thereto and hereto and all liability of the Escrow Bank with respect to such money shall thereupon cease and (ii) excess moneys held by the Escrow Bank not needed for the redemption and discharge of the Prior Bonds shall be transferred to the Debt Service Fund under the Indenture.

Section 12. Severability. If any section, paragraph, sentence, clause or provision of this Escrow Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, sentence, clause or provision shall not affect any of the remaining provisions of this Escrow Agreement.

Section 13. Notice of Escrow Bank and Authority. Any notice to or demand upon the Escrow Bank may be served and presented, and such demand may be made, at the principal corporate trust office of the Escrow Bank by being deposited postage prepaid in a post office letter box, delivered via courier or overnight mail or sent via fax or electronic transmission addressed as follows:

If to the Escrow Bank: The Bank of New York Mellon Trust Company, N.A. 333 South Hope Street, Suite 2525
Los Angeles, CA 90071
Attn: Corporate Trust Services
Re: Corona Wastewater 2013 Bonds Escrow Fund

27157.11356\44116637.1
7 Any notice to or demand upon the Authority shall be deemed to have been sufficiently given or served for all purposes by being mailed by registered or certified mail, and deposited, postage prepaid, in a post office letter box, addressed to such party as provided in the Prior Indenture (or such other address as may have been filed in writing by the Authority with the Escrow Bank).

Section 14. Merger or Consolidation of Escrow Bank. Any company into which the Escrow Bank may be merged or converted or with which may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Escrow Bank may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible to act as Trustee under the Indenture and the Prior Indenture, shall be the successor hereunder to the Escrow Bank without the execution or filing of any paper or any further act.

Section 15. Governing Law. This Escrow Agreement shall be construed and governed in accordance with the laws of the State of California.

Section 16. Execution in Several Counterparts. This Escrow Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts shall constitute but one and the same instrument.
(Signature page follows)

27157.11356\44116637.1
S-1
IN WITNESS WHEREOF, the Authority and the Escrow Bank have each caused this Escrow Agreement to be executed by their duly authorized officers all as of the date first above written.

CORONA UTILITY AUTHORITY
By:

Executive Director

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Escrow Bank
and Prior Trustee
By:

Authorized Officer
-Signature PageEscrow Deposit and Trust Agreement

27157.11356\44116637.1
A-1

EXHIBIT A

IDENTIFICATION OF AND PAYMENT SCHEDULE FOR

ESCROWED DEFEASANCE OBLIGATIONS
Type of
Security
Maturity
Date
Par
Amount Rate Yield Price

27157.11356\44116637.1
B-1

EXHIBIT B

DEFEASED BONDS
Maturity
Date
Interest
Rate
Par
Amount Call Date
Call
Price

27157.11356\44116637.1
C-1

EXHIBIT C
Corona Utility Authority
2013 Wastewater Revenue Bonds
(Wastewater Projects)

NOTICE OF DEFEASANCE
OWNERS of certain maturities of the above-described Bonds (the “Defeased Bonds”) are hereby NOTIFIED that, pursuant to that certain Escrow Deposit and Trust Agreement, dated as of October 1, 2025, by and between the Corona Utility Authority and The Bank of New York Mellon Trust Company, N.A., as Escrow Bank (the “Escrow Bank”), the Escrow Bank has received and holds in irrevocable trust, cash moneys or non-callable direct and general obligations of the United States of America or obligations of any agency or instrumentality of the United States, the payment of principal of and interest on which is unconditionally guaranteed by the full faith and credit of the United States of America (collectively, the “Defeasance Obligations”), interest on and the principal of which obligations, when due, will provide moneys together with any such cash sufficient to redeem the Defeased Bonds on November [__], 2025, as indicated on such Defeased Bonds, all as verified by an independent certified public accountant. The Escrow Bank shall collect interest on and the principal of such obligations and shall pay the same, together with any such cash moneys held by the Escrow Bank, to owners of record of the Defeased Bonds, in such amounts and at such times as shall be required to pay interest on and the principal of the Defeased Bonds to the redemption date.

The Defeased Bond CUSIP numbers, maturity dates and principal amounts are listed below:

CUSIP Number Maturity Date Principal Amount
Interest
Rate
The Defeased Bonds are now deemed to have been paid, and the owners thereof shall hereafter be limited to the application of such cash moneys or Defeasance Obligations for the payment of interest on and the principal of such Defeased Bonds as the same become due and payable as described above.

THIS IS NOT A NOTICE OF REDEMPTION. THIS NOTICE IS FOR

INFORMATIONAL PURPOSES ONLY AND DOES NOT REQUIRE OR SOLICIT THE PRESENT SURRENDER OR EXCHANGE OF THE DEFEASED BONDS.

The CUSIP numbers have been assigned by an independent service for convenience of reference and none of the Authority, the Trustee or the Escrow Bank shall be held liable for any inaccuracy in any such CUSIP number.

27157.11356\44116637.1
C-2
DATED: ____________, 2025 THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Escrow Bank

27157.11356\44116637.1
-iEXHIBIT D
Corona Utility Authority
2013 Wastewater Revenue Bonds
(Wastewater Projects)

NOTICE OF OPTIONAL REDEMPTION
NOTICE IS HEREBY GIVEN that on November [__], 2025 (the “Redemption Date”), the above-captioned bonds (the “Bonds”) have been called for redemption pursuant to Section 4.01(b) of that certain Indenture of Trust, dated as of June 1, 2013, by and between The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), and the Corona Utility Authority (the “Authority”). The Bonds will be redeemed at 100% of the principal amount plus accrued interest (the “Redemption Price”). Interest will be paid in the usual manner.

The Bond CUSIP numbers and maturity dates are listed below:

CUSIP Number Principal Amount
Maturity Date
(September 1)
The Bonds are due and payable at the office of the Trustee on Redemption Date. Interest will cease to accrue on the Bonds from and after the Redemption Date. The Bonds should be presented for redemption to the office of the Trustee at the following address:

To avoid a 28% back-up withholding tax required by Federal law, holders of Bonds must submit with their Bonds a completed IRS Form W-9. For your convenience a Form W-9 has been enclosed.

The CUSIP number is included solely for the convenience of the holders of Bonds. Neither the Authority nor the Trustee shall be responsible for the selection or use of the CUSIP numbers nor is any representation made as to their correctness on the Bonds or as indicated in any redemption notice.

Dated: _______________ The Bank of New York Mellon Trust Company, N.A., as Trustee

27157.11356\43915904.2

AGENCY AGREEMENT

RELATING TO

CORONA UTILITY AUTHORITY
2025 WASTEWATER REVENUE BONDS
(WASTEWATER PROJECTS)
Dated as of ________________, 2025
by and between

CORONA UTILITY AUTHORITY
and

THE CITY OF CORONA

27157.11356\43915904.2

AGENCY AGREEMENT
THIS AGENCY AGREEMENT is made and entered into as of the 1st day of ______________, 2025, by and between the CORONA UTILITY AUTHORITY, a joint powers agency duly organized and existing under and by virtue of the laws of the State of California (the “Authority”) and the CITY OF CORONA, a city and municipal corporation, duly organized and existing under and by virtue of the Constitution and laws of the State of California (the “City”).

W I T N E S S E T H
WHEREAS, the Authority and the City have entered into a Wastewater Enterprise Lease Agreement, dated as of February 6, 2002 (the “2002 Lease”), under which the City leased the wastewater enterprise of the City (the “Wastewater Enterprise”) to the Authority in consideration for certain lease payments to be made thereunder; and
WHEREAS, the Authority has issued its $[_____________] 2025 Wastewater Revenue Bonds (Wastewater Projects) (the “Bonds”), a portion of the proceeds of which will be used to construct certain improvements to the Wastewater Enterprise (the “2025 Project”); and WHEREAS, the City will construct and retain fee title to the 2025 Project, and the 2025 Project will become a component of the Wastewater Enterprise of the Authority pursuant to the 2002 Lease; and
WHEREAS, it is the intent of the City and the Authority that the 2025 Project not increase the value of the Wastewater Enterprise, or the lease payments due under the 2002 Lease; and
WHEREAS, it is in the interests of the Authority and the City that the City construct and install the 2025 Project, and the Authority hereby agrees to appoint the City as its agent for such purposes;

C O V E N A N T S
NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other valuable consideration, the parties agree as follows:

Section 1. Definitions. All words and phrases defined in Article I of that certain Indenture of Trust, dated as of [_______] 1, 2025, between the Authority and The Bank of New York Mellon Trust Company, N.A. shall have the same meaning in this Agency Agreement unless otherwise defined herein.

Section 2. Appointment of City. The Authority hereby appoints the City as its agent to carry out all phases of the acquisition, construction and installation of the 2025 Project, and the City, as agent of the Authority, assumes all rights, duties, responsibilities and liabilities of the Authority regarding the acquisition, construction and installation of the 2025 Project, except as limited herein. It is recognized by the parties that the Authority has appointed the City for the purposes specified in this Agreement, rather than appoint another firm or entity for said

27157.11356\43915904.2
2 purposes, based upon the Authority’s determination that the City is suitable to perform the duties, responsibilities and liabilities delegated to and assumed by it pursuant to this Agreement due to the expertise, knowledge and ability of the City’s personnel with respect to similar undertakings.

Section 3. Contracts and Payments. The City, as agent of the Authority, may enter into any purchase order, construction management agreement, architecture or engineering contract or construction contract required for the design, construction, installation and completion of the 2025 Project as a portion of moneys sufficient for the payment thereof are then on deposit in the Project Fund established pursuant to Section 3.04 of the Indenture, together with remaining moneys set aside by the Authority for the purpose of acquiring, constructing and installing the 2025 Project.

Section 4. Description of Project. The City, as agent of the Authority, shall have the right to make any changes in the description of the 2025 Project or of any component thereof whenever the City deems such changes to be necessary and appropriate; provided that any such change shall not alter the essential nature of the 2025 Project, and that an increase in the Construction Costs shall not result from such change, unless the City confirms that funds with the Authority are sufficient to pay such increase.

Section 5. Supervision of Construction and Installation. The City, as agent of the Authority, shall have sole responsibility for and shall supervise construction of the 2025 Project and the purchase and installation of any personal property constituting a part of the 2025 Project.

The City shall monitor the performance by any construction manager and by the construction contractors to the extent the City deems appropriate. The City shall permit the Authority, or its assignee, to inspect construction at any and all reasonable times which are deemed appropriate by the Authority, or its assignee.

Section 6. Enforcement of Contracts. The Authority hereby assigns to the City all rights and powers to enforce in its own name or the name of the Authority such purchase orders or contracts as are required for design, construction, purchase and completion of the 2025 Project, which enforcement may be at law or in equity; provided that the assignment made by the Authority herein shall not prevent the Authority, or its assignee, from asserting such rights and powers in its own behalf.

Section 7. Limited Obligation. The Authority shall not be responsible for providing, nor shall it or the Trustee provide from the proceeds of the Bonds, for the payment of Project Costs in an amount greater than the amount of said proceeds and other funds to be deposited by the Trustee in the Project Fund pursuant to the Indenture.

Section 8. Inspection of Records. The Authority shall have the right to inspect periodically the books and records of the City relating to the design, acquisition, construction and installation of the 2025 Project, and the City shall permit the Authority to make such inspections thereof at all reasonable times as the Authority shall deem appropriate.

Section 9. Time of Completion and Liquidated Damages. The acquisition, construction and installation of the 2025 Project shall be completed on or prior to

27157.11356\43915904.2
3 [________________], 2028. It is agreed that if the City does not cause the completion of the acquisition, construction and installation of the 2025 Project by the completion date, as specified in the specifications therefor, by construction contractors or a construction manager, whichever the City deems appropriate, liquidated damages will be assessed against the construction contractors or construction manager for each day completion is delayed in an amount not less than the maximum amount of debt service accruing on the Bonds on a daily basis. The City shall assure that all construction contracts or the construction management agreement, whichever the City deems appropriate, shall contain a provision for liquidated damages in compliance with this Section.

Section 10. Plans and Specifications. The City agrees that it will assure that the 2025 Project will be acquired, constructed and installed in accordance with final plans and specifications approved by the City. No changes or modifications which require an amendment to a pre-existing building permit shall be made in or to the final plans and specifications unless such changes or modifications are approved in writing by the City. Before approving any such changes to be undertaken, the City shall assure that there has been deposited in the Project Fund, or on hand with the Authority, moneys sufficient to pay any increased costs resulting from such changes or modifications. Upon completion of construction and installation of the 2025 Project, the City will assure that there is filed with the Trustee a “Certificate of Completion” executed by the City Representative and stating that such construction and installation has been completed in accordance with the plans and specifications therefor approved by the City.

Section 11. Prevailing Wages. Each contract entered into between the City, as the agent for the Authority, and any contractor shall provide that such contractor shall pay not less than the general prevailing rate of wages as determined in accordance with Sections 1770 et seq. of the Labor Code.

Section 12. Nondiscrimination. Each contract entered into between the City, as the agent for the Authority, and any contractor shall provide that such contractor shall not discriminate against any other contractor or any employee or applicant for employment because of the race, religious creed, color, national origin or sex of such person, unless based upon a bona fide occupational qualification. In addition, in selecting contractors or in employing persons for the purposes of construction or construction management, the City shall not discriminate on the basis of race, religious creed, color, national origin, or sex of such person, unless based upon a bona fide occupational qualification.

Section 13. Performance Security. Each construction contractor hired by the City, on behalf of the Authority, shall be required to provide payment and performance bonds in amounts equal to the maximum price under its contract.

Section 14. Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the Authority, the City and their respective successors and assigns.

Section 15. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof.

27157.11356\43915904.2
4 Section 16. Amendments, Changes and Modifications. This Agreement may not be effectively amended, changed, modified, altered or terminated without the written agreement of both parties hereto.

Section 17. Execution in Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Section 18. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

Section 19. Headings. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement.

Section 20. Notices. Any notices or filings required to be given or made under this Agreement shall be served, given or made in writing upon the City by personal delivery or registered mail addressed to:

City of Corona
400 South Vicentia Avenue, Suite 120
Corona, CA 92882
Attention: Utilities Director
and upon the Authority by personal delivery or registered mail addressed to:

Corona Utility Authority
400 South Vicentia Avenue, Suite 120
Corona, CA 92882
Attention: Executive Director
or at such other place as may be designated by either party in writing. (Signature page follows)

27157.11356\43915904.2
S-1
IN WITNESS WHEREOF, the City has caused this Agreement to be executed by its officers, and the Authority has caused this Agreement to be executed by its officers, all as of the day and year first above written.

CITY OF CORONA
By:

Jim Steiner, Mayor
ATTEST:

Sylvia Edwards, City Clerk

CORONA UTILITY AUTHORITY
By:

Jim Steiner, President
ATTEST:

Sylvia Edwards, Secretary
-Signature PageAgency Agreement
(Wastewater)

DATE: 09/17/2025
TO: Honorable Mayor and City Council Members
FROM: Community Services Department
2025-364

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

PARTNERSHIP WITH OC MARATHON LLC TO HOST THE CORONA 5000 ON MARCH 21, 2026
EXECUTIVE SUMMARY:

This staff report asks City Council to approve the Memorandum of Understanding (MOU) with the OC Marathon LLC for the Corona 5000. The City of Corona, in partnership with the OC Marathon, is launching the inaugural Corona 5000 5K Road Race to revive the historic Corona Road Races with a new format. This event aligns with Strategic Plan Goal 5 to increase large-scale recreation events. The approval of the MOU will allow staff to move forward with event planning, logistics, interdepartmental coordination, and public outreach.

RECOMMENDED ACTION:

That the City Council:
a. Approve the Memorandum of Understanding (MOU) with the OC Marathon, LLC., to coordinate and produce the inaugural Corona 5000 5K Road Race subject to compliance with all applicable provisions of the Corona Municipal Code, including but not limited to Chapter 12.32 (Special Events and Street Closures), and any other relevant local, county, or state regulations.

b. Authorize the City Manager, or his designee, to execute all necessary agreements and permits with OC Marathon LLC.

BACKGROUND & HISTORY:

The Corona 5000 5K Road Race directly supports Strategic Plan Goal 5 to increase largescale recreation events that provide both social and economic benefits to the community.

Events may include sport-focused activities (e.g., 5K/10K, BMX biking, or adaptive sport activities) or other kinds of events focused on food, art, or cultural heritage. It also sets forth annual processes to expand community events through partnerships.

Staff was tasked with finding a large event promoter to introduce a signature event in Corona. The Corona 5000 5K Road Race achieves this objective by offering a professionally managed, health and wellness–focused event that promotes family activity, enhances community engagement, and positions Corona as a destination for regional recreation. The intent of this partnership is to reintroduce a high-profile, foot-based road race that honors Corona’s historic racing legacy while meeting modern logistical and safety standards. The event also responds to community feedback gathered through master planning and public engagement processes, which called for more recreational opportunities, greater event variety, and activities that strengthen community identity.

Corona has a unique and storied connection to road racing, with three historic “Corona Road Races” held in the early 1900s. At that time, Grand Boulevard’s 3.1-mile circular roadway served as the racetrack, drawing national attention and positioning Corona as a hub of innovation and excitement. The proposed Corona 5000 5K Road Race seeks to honor this legacy by reintroducing racing to the community in a modern, family-friendly format. Utilizing the same historic course, the event blends the City’s past with presentday priorities of health, wellness, and community engagement.

ANALYSIS:

In recent years, the City has focused on expanding events utilizing both in-house staff and partner organizations. TheOC Marathon, a nationally recognized running organization established in 2004, has produced over 250,000 race finishers, engaged more than 100,000 children through its Kids Run the OC Program, and helped charities raise over $9 million. Its flagship event draws 19,000 runners and involves extensive coordination with charities, run clubs, corporate teams, and public agencies. The organization also produces other popular races, including the OC Fair Fun Run and Run for a Claus, each attracting thousands of participants and supporting charitable causes.

Given this track record, the OC Marathon emerged as a strategic partner capable of delivering a professionally managed road race experience in Corona. Partnering with the OC Marathon leverages professional expertise to deliver a high-quality event while building capacity for future programming.

Preliminary discussions between staff and the OC Marathon have evaluated the feasibility of safely hosting the Corona 5000 5K Road Race on Grand Boulevard, a high-profile and

logistically complex corridor. The Corona 5000 Road Race is proposed for March 21, 2026, on Grand Boulevard, starting at the Historic Civic Center (HCC). The 5K event will cover one 3.1-mile lap around Grand Boulevard and is expected to attract approximately 2,500 runners and 1,000 spectators. Participants will receive custom T-shirts, finisher medals, and access to a health and fitness expo, with the event culminating in a finish line celebration.

The event will require temporary closures along Grand Boulevard, though traffic inside the circle will remain open. From 8:00 to 9:15 a.m., residents exiting the circle will be directed to 91 Freeway on-ramps (eastbound and westbound). After the race clears North Main Street (approximately 9:15 a.m.), quadrants will reopen as the race progresses.

Main Street freeway exits (eastbound and westbound) will be closed from 7:00 to 9:30 a.m. Emergency access will be maintained at all times via North Main, East Sixth, and South Main, with officers authorized to briefly hold runners or walkers to allow emergency vehicles to cross safely.

Following the race, a post-event celebration will take place from 8:30 a.m. to 12:00 p.m. on the Historic Civic Center front lawn. The celebration will feature the finish line and awards area, along with sponsor and exhibit booths, DJ entertainment, food vendors, and a beer garden, creating a festive atmosphere for runners and spectators alike.

Compliance with Chapter 12.32 of the Corona Municipal Code will be required, including permits, insurance, public notification of street closures, and coordination with City departments to ensure public safety and traffic management. Hosting the event on Grand Boulevard offers a unique opportunity to honor Corona’s historic road races, but it requires careful operational planning involving Police, Public Works, Community Services, and the City’s Medical Emergency Team.

With effective outreach and interdepartmental coordination, the Corona 5000 5K Road Race is expected to generate positive community engagement while meeting regulatory standards and public expectations.

COMMISSION ACTION:

On September 9, 2025, the Parks and Recreation Commission received a report on the Corona 5000 Road Race. Following the report, a motion was made by Commissioner Munoz and seconded by Commissioner McBride to recommend approval of the Memorandum of Understanding (MOU) with OC Marathon, LLC for the Corona 5000 Road Race. The motion passed 5-0.

FINANCIAL IMPACT:

Funding for the recommended actions is included in the FY 2026 Community Services Department Special Events & Volunteers Division’s Operating Budget within the General Fund 110. The financial impact to the City will primarily consist of in-kind services, staffing, and resources, with any municipal costs related to public safety, traffic control, facility use, logistical support, and the post-event celebration reimbursed from the $25,000 allocation. The event is structured as a partnership with OC Marathon, LLC.,

which will assume financial responsibility for race production, registration, marketing, and participant amenities.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action is to approve a Memorandum of OC Marathon LLC for the Corona 5000 5K Road Race, and there is no possibility that approving this agreement will have a significant effect on the environment. Therefore, no environmental analysis is required PREPARED BY: KAREN LEE, RECREATION SUPERVISOR AND MONIQUE LEON,

RECREATION MANAGER
REVIEWED BY: DONNA FINCH, COMMUNITY SERVICES DIRECTOR
ATTACHMENTS:

1. Exhibit 1 – Memorandum of Understanding with OC Marathon LLC.

2. Exhibit 2 – Corona 5000 Road Race Presentation

Donna Finch
Director of Community Services
September 17, 2025 Page 900 of 953
That the City
Council approve the
Memorandum
of Understanding (MOU)
with OC Marathon, LLC for
the Corona 5000 Road Race.
16 2

“Increase large-scale recreation events that provide both social and economic benefits to the community. Events may include sport-focused activities (e.g., 5k/10k, BMX biking, or adaptive sport activities) or other kinds of events focused on food, art, or cultural heritage.” • “Establish annual processes to expand community events through partnerships.”

Corona Road Races
• September 9, 1913 – Inaugural road race on Grand Boulevard; 3 races included fierce competition and cash prizes.
• November 26, 1914 – Second road race; 300-miles with
improved track and extra safety measures.
• 1915 – Severe flooding caused washed out roads; race plans were abandoned.
• April 8, 1916 – Final road race held on Grand Boulevard. 4 4

History & Heritage Health & Wellness Social & Economic Benefits 110th anniversary of final Road Race Improve physical health New large scale community event Blend Road Race history with today’s
5K runners Support mental health Family friendly
Promote unique “Circle City” feature Achieve personal goals Introduce visitors to Corona events & programs
3-mile-diameter circular Grand Blvd. Fun atmosphere Brand exposure for local business sponsors
Introduce a new generation to
Corona’s Road Race history Sense of accomplishment / inspiration Fosters community connections 5

Background, Experience, & Event Overview
6

Background & Experience
• Established in 2004
• Experts in the Race World
• Multi-event running organization
• Draws thousands of runners and spectators
• Notable race highlights & recognition: Program of the Year, Runners Club of America, Running USA
• OC Marathon - Over a quarter million finishers; Kids Run the OC - 100,000 finishers
• Has helped charity partners raise over $9,000,000
7 7

By the Numbers:
• 2025 - 19,000 Runners
• 4,000 – 5k runners
• 26 Miles of Road Closures
• 13 water stations
• 30 Charities
• 150 Run Clubs
• 60 Corporate Teams
• 60 Exhibitor / Sponsor Activations
• Multi-agency coordination for permits/traffic/etc.
• California Highway Patrol
• City of Costa Mesa
• City of Fountain Valley
• City of Irvine
• City of Newport Beach
• City of Santa Ana
• OC Parks / County of Orange
• Orange Coast College
• OC Sheriff
• Cal Trans
• OC Fire Authority Page 907 of 953 8
• Established in 2006
• Ten week running program for kids
• 6,000 runners at over 130+ schools and 10 districts
• Established in 2010
• Partnership with the OC Fair & Event Center
• 3,300 runners in 2025
• Established in 2014
• Toy Drive and fundraiser for the Salvation Army
• 3,500 runners in 2025
9

16 10
Event Name: Corona 5000 Road Race
Event Date: March 21, 2026
Location: Grand Blvd. (starting at HCC)
Distance: 5K – 3.1 Miles (1 full lap around Grand Blvd.) Participation: Est. 2,500 runners + 1,000 spectators
What’s Included: Health & Fitness Expo
Custom T-Shirts
Finisher’s Medal
Finish Line Celebration
10 Page 909 of 953
16 11
City of Corona to Provide:

1. Facility and event permits

2. Police and public safety

3. Traffic control plan review

4. Parking

5. Posting of early “No Parking” signs (72 hours)

6. Road closure equipment/assistance (CMS signage, 6th St. closure)

7. Cross-marketing on City channels

8. Post-event celebration (HCC lawn)
OC Marathon to Provide:

1. Secure permits and approvals for 5K route

2. Work with traffic control and City to implement traffic plans

3. Coordinate with Police and Emergency Services

4. Event marketing & promotions

5. Event registrations

6. Resident and business notifications

7. Medals, shirts, race bibs

8. All vendors, staffing, and volunteers needed for a successful race

16 12
• Free parking available to runners and
spectators
• Parking details posted on Corona 5000
website to assist event goers with
wayfinding
• Signage posted at each parking location • Corona City Hall Main Lot (400 S. Vicentia Ave.) – 570+ parking spots
• Buena Vista Lots (905 W. 6th St.) – 160
parking spots
• Orange Grove High School (300 S. Buena
Vista, Ave.) – 180+ parking spots
• Corona Park and Ride (20 E. Grand Blvd) –
300+ parking spots
16

Timeline

OCT NOV DEC JAN FEB
Launch Event
Website
Sponsorship
Outreach
Digital Traffic Notification #1:
• Apartments, Property
Management, Businesses,
Churches, School Districts,
Sports Leagues
Registration
Opens
Traffic Notification # 2
• Homes
Wayfinding
• Submit wayfinding plans & closures to
Waze, Apple Maps for route optimization
for community access
MAR
Traffic Notification #3
• March 9: Traffic Warning Signs
• March 10-13: Door Hanger/Postcard
• March 17: No Parking Signs Posted

Maps, Closures, & Race Timeline

All closures will take place clockwise
from East to West Grand Blvd
Runners / Walkers will head East
on 6th and north to W. Grand Blvd
Any slower paced participants will be
guided to use sidewalk
On your Mark!
15

16 16
• Traffic will move freely within the
circle
• Residents leaving the circle between
8:00am-9:15am will be directed to the
91 freeway on-ramps
• After the race passes N. Main (approx.
9:15am), that quadrant will be open to
cross traffic. • Openings continue with each
quadrant on Grand Blvd.
• Emergency traffic will be advised to
access the interior of Grand via N.

Main, E. Sixth, or S. Main during the
race. • Officers have authority to hold
runners/walkers to allow
emergency vehicles to cross
Grand Blvd. if needed
1 2
4 3

16 17
• 91 Freeway - entrance to freeway
from inside the circle will be
accessible east and west on 91
fwy.
• Main Street exits east and west from
the 91 fwy will be closed from
approximately 7:00 am - 9:30 am.
91 Freeway at Main St.

16 18
Details
Hours: 8:30am – 12:00pm
Location: HCC Front Lawn
Event Elements Include: • Finish Line • Award Area • Sponsor/Exhibit Booths • DJ Entertainment • Food Vendors • Beer Garden

That the City
Council approve the
Memorandum
of Understanding (MOU)
with OC Marathon, LLC for
the Corona 5000 Road Race.
16 19 Page 918 of 953
City of Corona
Questions?
[email protected]
951-739-4985

The OC Marathon • 3100 Airway Ave. #104, Costa Mesa, CA 92626 • 714-241-0142 City of Corona & Corona 5000 Memorandum of Understanding This Memorandum of Understanding (“MOU”) is entered into by and between the City of Corona (“City”) and OC Marathon, LLC (“Organizer”) for the purpose of granting Organizer the exclusive rights to organize, manage, and operate the Corona 5000 (the “Event”), a running/walking event to be held on March 21, 2026, and on mutually agreed-upon dates annually thereafter.

1. Term:

This MOU shall commence on August 22, 2025, and continue until the conclusion and closeout of the March 2026 Event. The City and Organizer may mutually agree to extend the term for future events in writing.

2. OC Marathon, LLC agrees to:
● Secure permits and necessary approvals for 5K route
● Secure traffic control company and public works to develop traffic plans and ● Coordinate all event safety and security measures with police and emergency services. ● Coordinate marketing and promotion to our channels to attract runners/walkers as well as work with the city/community to spread awareness using city website, newspaper, social media and other community outreach
● Design and create a website for the Event
● Manage the Event registration platform
● Design and order participant medals, shirts, and bibs ● Organize a packet pick up the day before (location TBD) and the day of the Event ● Secure all vendors necessary for a successful 5K event, (i.e. traffic control, portable restrooms, master of ceremonies, radios, tables/tents, canopies, sound/truss, signage, fencing)
● Secure staffing for Event operations
● Provide a volunteer plan and secure volunteers
● Coordinate with the City on any shared vendors orsplit expenses relating to a postevent celebration ● Collaborate with Corona businesses and groups to provide discounted entries and support fundraising efforts for City approved Corona charities

3. City of Corona, in exchange for sponsorship benefits listed in Appendix A, agrees to:

Waive the following fees and expenses:
● Event permit fees
● Police and public safety fees
● Traffic review fees (by city staff)
● Space reservation fees
Docusign Envelope ID: 1C7D1845-D9A3-4D45-8045-2C2E3CF4E519

The OC Marathon • 3100 Airway Ave. #104, Costa Mesa, CA 92626 • 714-241-0142 Assist with:
● Resident / business traffic notification
● Participant parking Lot Outreach (permissions, coordination) ● Posting of early “No Parking” signage (72 hours)
● Cal Trans permit application/processing
● Road Closure Assistance/Equipment (CMS signage, City Staff placement of 6th Street Road Closure) on Friday evening March 20, 2026
● List volunteer opportunities in typical city channels. ● Advertising as appropriate in city channels, i.e. Corona Connection, social media

4. Mutual Considerations
● Shared/split expenses between City and Organizer for the post event celebration to be determined if applicable at a later time (i.e. portable toilets, canopies). ● A negotiated shared revenue model for sponsors and exhibitors activating at the Run Event Expo to be mutually determined by the parties at a later time.

5. Financial Terms:
● Event expenses for the Organizer’s scope of work shall be the responsibility of the Organizer, with the exception of City’s waiving of fees listed in Section 3 and mutually agreed upon shared/split expenses in Section 4.

6. Exclusivity:
● For the Term of this MOU, the City agrees that the sole and exclusive 5K running event conducted in the historical Corona Circle shall be the Corona 5000, and the associated branding/marks shall be owned by the Organizer.

7. Indemnity:
● To the greatest extent allowed by law, Organizer agrees to indemnify, defend and hold the City and its officers, agents and employees safe and harmless from and against any and all actions, manner of actions, causes of actions, liabilities, claims and demands, suits, damages, losses or injuries, expenses or otherwise arising from the staging, conduct or operation of the Event or in connection with the performance of Organizer’s obligations pursuant to this MOU, except for those claims arising from the willful misconduct, sole or active negligence of the city, its officers, agents or employees.

Docusign Envelope ID: 1C7D1845-D9A3-4D45-8045-2C2E3CF4E519

The OC Marathon • 3100 Airway Ave. #104, Costa Mesa, CA 92626 • 714-241-0142

8. Insurance:
● Organizer shall obtain general liability insurance as reasonably required by the City's Risk Management Division.

9. Course/Route:
● The City shall make all reasonable efforts to maintain the Corona 5000 course as planned, recognizing that the event’s theme and identity are based on the historical Corona Circle. Any changes to the course shall require prior written approval from the Organizer.

10. No Partnership:
● Nothing in this MOU shall be construed to create a legal partnership, joint venture, joint enterprise, or agency relationship between the parties. No party shall have authority to bind or obligate any other party in any manner whatsoever.

11. Force Majeure:
● Neither party shall be liable for any failure or delay in performance (except payment obligations) caused by events beyond its reasonable control (“Force Majeure Events”), including acts of God, natural disasters, war, terrorism, civil unrest, government orders, labor disputes, epidemics or pandemics, quarantines, power or transportation failures, or similar events.

12. Assignment:
● This MOU may not be reassigned by Organizer or City without the consent of both parties. Should consent be granted, any successor party agrees to be bound by all of the terms and conditions of this MOU and Special Event application requirements.

13. Entirety:
● This MOU constitutes the entire agreement between the parties and supersedes all prior oral or written negotiations. Any amendments must be in writing and signed by both parties.

14. Notices:
• All notices, requests, demands or other communications by the terms hereof required or permitted to be given by one party to another shall be given in writing by personal delivery or registered mail, postage, prepaid addressed to such other party or delivered to such other party as follows:

Docusign Envelope ID: 1C7D1845-D9A3-4D45-8045-2C2E3CF4E519

The OC Marathon • 3100 Airway Ave. #104, Costa Mesa, CA 92626 • 714-241-0142 To City: To Organizer:

City of Corona OC Marathon, LLC
400 S. Vicentia Avenue 3100 Airway Ave, #104
Corona, CA 92882 Costa Mesa, CA 92626
Attn: Donna Finch Attn: Gary Kutscher
In witness Whereof, the parties hereto have caused this agreement to be executed.

By and through their authorized officers on September 11, 2025.

By:

Donna Finch Gary Kutscher
City of Corona OC Marathon, LLC
Date Date
Docusign Envelope ID: 1C7D1845-D9A3-4D45-8045-2C2E3CF4E519 9/11/2025 9/11/2025

The OC Marathon • 3100 Airway Ave. #104, Costa Mesa, CA 92626 • 714-241-0142 Appendix A
Host Sponsor Expo Benefits include:
● City of Corona shall be listed on all marketing and publications materials. o City logo on printed marketing materials (postcards, advertisements, posters) o City logo on website
o City logo on all email blasts
o City name or logo on social media posts
● A minimum of five (5) City of Corona Event announcements will be shared annually on the Event Facebook page.
● Placement of up to four (4) city-provided City of Corona Banners (3' x 8') on day of event. ● Complimentary booth space at expo to promote City affiliated events or programs. ● The City will receive at least four (4) verbal mentions of gratitude or to promote a program at pre-event and day of Event.
● 50 Complimentary race entries for City use.
● Discounted entry codes are available for other purposes.

Docusign Envelope ID: 1C7D1845-D9A3-4D45-8045-2C2E3CF4E519