Desert Hot Springs City Council
October 7, 2025

APPENDIX F HOUSING RESOURCES
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At least 50% of the funds awarded shall serve veteran households with extremely low incomes. Of those units targeted to extremely low-income veteran housing, 60% shall be supportive housing units.

13. Housing for Healthy California (HHC) Program
In September of 2017, as part of a landmark housing package, Governor Jerry Brown signed AB 74 into law. The HCD is authorized to develop the Housing for a Healthy California (HHC) Program. The HHC program creates supportive housing for individuals who are recipients of or eligible for health care provided through the California Department of Health Care Services, MediCal program. The goal of the HHC program is to reduce the financial burden on local and state resources due to the overutilization of emergency departments, inpatient care, nursing home stays and use of corrections systems and law enforcement resources as the point of health care provision for people who are chronically homeless or homeless and a high-cost health user.

14. AB 101
a. New State Low Income Housing Tax Credits Program
Provides for the allocation of $500 million in new state low-income housing tax credits for new construction projects that receive the federal 4% tax credit. For these new credits, the bill would increase the eligible basis for these projects from 13% to 30%. It would require at least $300 million of this to be available to new construction projects receiving the federal 4% tax credit, and would allow up to $200 million to be available to projects receiving assistance from the California Housing Finance Agency (CalHFA) Mixed Income Program.

Eligible basis refers to depreciable basis; it does not include land, syndication, organization, or permanent financing costs. A more complete explanation of eligible basis is available at:
https://www.ncsha.org/wp-content/uploads/2018/11/Eligible-Basis-and-Credit-Calculations.pdf b. CalHome Program
AB 101 (2019) allows the CalHome program to include accessory dwelling units (ADUs) and junior accessory dwelling units (JADU), and to authorize the program to make grants for housing purposes in declared disaster areas.

B. ADMINISTRATIVE RESOURCES
Administrative resources include organizations that are able to assist the City in implementing housing activities, including some of those described in Section II - Housing Program.

1. California Department of Housing and Community Development (HCD) HCD is able to provide technical assistance on a myriad of housing topics, including model housing programs and ordinances.

Item Number: 3.

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2. Housing Authority of the County of Riverside
This agency administers the Section 8 Housing Voucher Program and Public Housing Program.

The HA’s area of operation is all of the unincorporated areas of the County and all incorporated cities.

3. Riverside County Continuum of Care (CoC)
The Continuum of Care for Riverside County – CoC Program provides homeless assistance by leveraging funding needed through the HUD Consolidated Application; this provides collaboration between providers of housing and homeless assistance programs and other federal programs.

The CoC is a network of private and public sector homeless service providers, designed to promote community-wide planning and the strategic use of resources addressing homelessness.

The CoC seeks to improve coordination and integration with mainstream resources and other community programs for people who are experiencing or are at-risk of becoming homeless. The CoC seeks to improve and expand the collection of data countywide, develop performance measurements, and allows for each community to tailor its’ program to the particular strengths and challenges within that community. The goal is to assist people to achieve stability through self -sufficiency.

Some of the CoC’s activities include the annual HUD Continuum of Care Programs Notice of Funds Availability (NOFA), for homeless services and housing programs, the Emergency Food and Shelter Program (EFSP) NOFA and the biennial Point in Time Count and Survey of homeless individuals in the County.

Item Number: 3.

APPENDIX G PROGRESS REPORT
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APPENDIX G PROGRESS REPORT
A. GOVERNMENT CODE REQUIREMENTS
HCD suggests that the Progress Report (officially known as review and revision) discuss:
"Appropriateness of goals, objectives and policies" (Section 65588(a)(1)): A description of how the goals, objectives, policies and programs of the updated element incorporate what has been learned from the results of the prior element. "Effectiveness of the element" (Section 65588(a)(2)): A comparison of the actual results of the earlier element with its goals, objectives, policies and programs. The results should be quantified where possible (e.g., rehabilitation), but may be qualitative where necessary (e.g., mitigation of constraints).
"Progress in implementation” (Section 65583(a)(3): An analysis of the significant differences between what was projected or planned in the earlier element and what was achieved.

B. APPROPRIATENESS OF GOALS, OBJECTIVES AND POLICIES

1. Goals and Policies
On July 7, 2021November 2, 2021, the City Council adopted the 65th Cycle (2021-2029) Housing Element. Because the goals and policies remain appropriate, the 6th Cycle Housing Element has incorporated the goals and policies of the 2013-2021 Housing Element. The goals and policies were , however, have been organized according to the housing element mandated program categories:
§ Identify Actions to Make Sites Available to Accommodate the City’s Share of the Regional Housing Need That Could Not Be Accommodated on the Sites Identified in the Land Inventory [Government Code Section 65583(c)(1)] § Assist in the Development of Adequate Housing to Meet the Needs of Extremely Low, Very Low-, Low- and Moderate Income Households [Government Code Section 65583(c)(2)]
§ Address and, Where Appropriate and Legally Possible, Remove Governmental and Nongovernmental Constraints to the Maintenance, Improvement and Development of Housing Including Housing for All Income Levels and Housing for Persons with Disabilities [Government Code Section 65583(c)(3] § Conserve and Improve the Condition of the Existing Affordable Housing Stock [Government Code Section 65583(c)(4)]
§ Promote and Affirmatively Further Fair Housing Opportunities throughout the Community or Communities for All Persons Regardless of Race, Religion, Sex, Marital Status, Ancestry, National Origin, Color, Familial Status, or Disability [Government Code Section 65583(c)(5)]
Item Number: 3.

APPENDIX G PROGRESS REPORT
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In addition, goals and policies were added to address the housing needs of special populations. The goals and policies provide a link between the findings of the assessment of housing needs and actions to address the needs of the elderly, disabled, and other special needs populations.

2. Objectives
The “construction” quantified objectives for the 2014-2021-2021 2029 period are:
§ Extremely and Very Low-Income 40 housing units
§ Lower Income 4,653 160 housing units
§ Moderate Income 650 688 housing units
§ Above moderate Income 1,8172,081 housing units
Between 20142022 and 20202024 (mid-cycle), building permits have been issued for the following:
§ Very Low Income 530
§ Low Income 2
§ Moderate Income 83308
§ Above Moderate Income 0134
The “rehabilitation” objective for the 2014-20212021-2029 period is 80 248 rehabilitated homes, including two (2) extremely and very low-income homes and six (6) lower income homes. The City is currently working with Riverside County Housing and Workforce solutions on a Home Enhancement Program to assist low-income individuals with needed repairs. Eight (8) applications were received between 2022 and 2024, six of which were approved and two are being processed. With the 6th cycle halfway complete, the City is unlikely to achieve this goal without significant progress.

For reasons explained elsewhere in the Progress Report, the objective was not met.

The “conservation/preservation” objective is 355 405 lower income households and represents the number of households assisted by the Section 8 Housing Choice Voucher Program. As of July 2025, the County is assisting 339 Desert Hot Springs households through the Section 8 program. With the 6th cycle halfway complete, the City has accomplished 83.7 percent of its conservation and preservation objective. The objective was exceeded as 370 households are being assisted as of September 1, 2021. The City has successfully assisted lower income households in conservation and preservation of affordable housing units during the previous planning period. Note that lower income households in the City are often also special needs populations such as the elderly, persons with disabilities, female headed households, large households, persons experiencing homelessness, and farmworkers.

C. EFFECTIVENESS OF THE ELEMENT
Each program and its effectiveness is described starting on page G-4. There are a total of 16 25 programs.: 14 were continuously implemented since 2014 and two were added on July 7, 2020.

As described under the individual discussions of program evaluationss below, the City has successfully updated its Zoning Code via the LEAP grant, has issued building permits for 444 Item Number: 3.

APPENDIX G PROGRESS REPORT
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low-, moderate-, and above moderate income dwelling units, has entitled three affordable housing projects, continues to helped special needs populations, including the elderly, persons with disabilities, female headed households and persons experiencing homeless through its support of Section 8 and other County programs, establishment of Mixed Use zones that provide housing opportunities in proximity to services, transportation and jobs, and continues rehabilitation and conservation of housing throughout the community.

D. PROGRESS IN IMPLEMENTATION
Progress in implementation is reported below for two time periods.the following 2021-2029 housing programs:

Program 1.1: Sites Development Program
Program 1.2: No Net Loss Program
Program 2.1: Section 8 Housing Choice Voucher Program
Program 2.2: First Time Homebuyer Program
Program 2.3: Affordable Housing Incentives Program
Program 2.4: Regional Plan for the Development of 2,000 Affordable Housing Units Program 2.5: Area Agency on Aging Outreach Program
Program 2.6: Extremely Low Income (ELI) Program
Program 3.1: Zoning Ordinance Update (LEAP Grant)
Program 3.2: Reasonable Accommodation Application/Brochure Program 3.3: ADU Incentives Program
Program 3.4: SB 35 Streamlining Information
Program 3.5: Government Code Section 65940.1
Program 4.1: Housing Code Enforcement
Program 4.2: Homeowner Housing Rehabilitation Program
Program 4.3: Abandoned Residential Property Registration Program 5.1: Fair Housing Services Program
Program 5.2: Affirmative Fair Housing Marketing Plan
Program 5.3: Poverty Reduction Program
Program 5.4: Placed-Based Neighborhood Poverty Reduction Program Program 5.5: Mobility Strategies Program
Program 5.6: Displacement Risk Program
Program 5.7: Bilingual Assistance on Development and Housing Processes Program 5.8: Accessibility of Development and Housing Processes Program 5.9: Place-based Strategies for R/ECAP Improvements Programs Implemented During 2013-2021

2. No Net Loss – implemented and included in 6th Cycle Housing Element

3. Housing Choice Voucher Program - implemented and included in 6th Cycle Housing Element

4. Density Bonus – not successfully implemented

5. Homebuyer Assistance Program – not successfully implemented; included in 6th Cycle Housing Element

6. Affordable Housing Incentives – not implemented but will contribute to Lift to Rise Program
Item Number: 3.

APPENDIX G PROGRESS REPORT
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7. Zoning Ordinance Update – will be implemented with LEAP funding

8. Mixed Use Development - implemented

9. Water and Sewer Providers – implemented

11. Code Enforcement - implemented

12. Housing Repair and Rehabilitation Programs – not successfully implemented; included in 6th Cycle Housing Element

13. Abandoned Residential Property Registration - implemented

14. At-Risk Housing Monitoring - implemented

15. Fair Housing Services - implemented
Programs Added July 7, 2020

20. Adequate Sites - implemented

16. Affirmatively Furthering Fair Housing – implemented Item Number: 3.

APPENDIX G PROGRESS REPORT
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CITY OF DESERT HOT SPRINGS
EFFECTIVENESS OF THE 5TH FIRST HALF OF THE 6TH CYCLE HOUSING ELEMENT PROGRAM 1.1: SITES DEVELOPMENT PROGRAM
The City will expeditiously process applications (e.g., final tract map, site development permit, building permits) for the development of the Specific Plan sites accommodating the moderate and above moderate income housing need and the high density and mixed use sites accommodating the lower income housing need.

Objective: Facilitate the development of the sites identified in the sites inventory that will accommodate the City’s share of the regional housing need.

Responsible Agency: Community Development Department Planning Division Timeline: Implement the sites development program continuously through the 2021-2029 planning period.

Funding Source(s): General Fund
Evaluation: Between 2022 and 2024, building permits have been issued for 444 units by the following income levels:
§ Very Low Income 0
§ Low Income 2
§ Moderate Income 308
§ Above Moderate Income 134
The City has worked with housing developers on several of the sites listed in the sites inventory that have yet to be permitted. The Green Day Village project received entitlement approval in 2023 for 608 units, of which 220 units are slated for affordable housing and the developer is working with the City on how best to extend utilities to the site. The City worked with Blieu Companies to develop a 64 unit affordable housing project on Camino Campanero.

The project obtained entitlements in May 2025 and the City Council deferred all impact fees for a period of 55 years to assist in financing. Some of the density for this project was moved to the Park Lane Homes to the north. Park Lane Homes by Abode Communities will be a 167- unit affordable housing project on land owned by the County that was not in the sites inventory at the time of adoption of the 6th Cycle Element. The site is zoned Mixed-Use Corridor and had no requirement for residential uses. (Note: The City worked with Riverside County Housing and Workforce Solutions to select a developer for the site.) After entitlements were granted, the City partnered with Abode Communities to submit a joint AHSC application that will provide loan funds for the first 87 units.

Overall, Program 1.1 is being effectively implemented as the City continues to work with housing developers to expedite application approvals through 2029.

ADEQUATE SITES
To accommodate the lower-income RHNA shortfall of 4,026 units (for the 2008-2014 and 2014-2021 RHNA planning periods), the City will rezone just under 219 acres of sites within, R-H: Residential High, and MU-C: Mixed-Use Corridor designations.

The rezone was completed in June 2020. The sites were rezoned to have capacity for at least 16 units per site at a minimum density of 20 units per acre, and at least half of the very lowand low-income housing need will be accommodated on sites designated for residential use Item Number: 3.

APPENDIX G PROGRESS REPORT
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and for which nonresidential uses or mixed-uses are not permitted. The rezone provides adequate sites and zoning to facilitate affordable housing development, which will benefit special needs populations by meeting their housing needs in the City.

Program 1 was effectively implemented.

PROGRAM 1.2: NO NET LOSS
To ensure sufficient residential capacity is maintained to accommodate the RHNA for each income category, within six months of adoption of the 2021-2029 Housing Element, develop and implement a formal, ongoing (project-by-project) evaluation procedure pursuant to Government Code section 65863. The evaluation procedure will track the number of extremely low-, very low-, low-, moderate-, and above moderate-income units constructed to calculate the remaining unmet RHNA. The evaluation procedure will also track the number of units built on the identified sites to determine the remaining site capacity by income category and will be updated continuously as developments are approved.

No action will be taken to reduce the density or capacity of a site (e.g., downzone, moratorium), unless other additional adequate sites are identified prior to reducing site density or capacity. If a development is being approved on an identified site at a lower density than what was assumed for that site identified in the 2021-2029 Housing Element, additional adequate sites must be made available within 180 days of approving the development. A program to identify the replacement sites, and take the necessary actions to make the site(s) available and ensure they are adequate sites, will be adopted prior to, or at the time of, the approval of the development.

Subsequent to adopting an evaluation procedure, the City will monitor rezones and development of residential units, and update the sites inventory. The sites inventory will be posted on the Community Development Department’s website and will be updated at least once a year.

At least annually, the City will update, if necessary, the sites inventory in conjunction with the Housing Element Annual Progress Reports pursuant to Government Code section 65400.

In June 2021, the City prepared a No Net Loss Monitoring Procedure modeled after HCD’s No Net Loss Capacity Calculation Tool.

Objective: Develop and maintain a no net loss evaluation procedure.

Responsible Agency: Community Development Department Planning Division Timeline: Within six months of adoption of the 2021-2029 Housing Element, develop and implement a formal ongoing evaluation procedure pursuant to Government Code section 65863.

Funding Source: General Fund
Evaluation: The City created a master spreadsheet to track the number of housing units entitled, permitted, and constructed by affordability. Annual Progress Reports (APRs) for 2022, 2023, and 2024 are currently posted to the Community Development Department’s website on the Housing Element page at:
https://www.cityofdhs.org/housing-element/.

Item Number: 3.

APPENDIX G PROGRESS REPORT
G-7
The City worked with Blieu Companies to develop a 64-unit affordable housing project on Camino Campanero that obtained entitlements in May 2025. Some of the density for this project was moved to the Park Lane Homes project to the north. Park Lane Homes by Abode Communities will be a 167-unit affordable housing project on land owned by the County that was not in the sites inventory. The site is zoned Mixed-Use Corridor and had no requirement for residential uses. The Park Lane Homes project was added to the site’s inventory during this mid-cycle update.

The site’s inventory has not yet been posted to the City’s website; however, the City’s new objective is to post the updated sites inventory list to the City’s website before the end of 2025.

The City having not approved a project at a reduced density since 2013, together with the No Net Loss Monitoring Procedure, ensure affordable housing supply and the ability to meet the housing needs of special needs populations in the City.

Program 1.2 is being effectively implemented and will be continued through 2029, with minor revisions to the Program text in Section II to include a 2025 objective for the City to post the site’s inventory to the City’s website.

PROGRAM 2.1: SECTION 8 HOUSING CHOICE VOUCHER PROGRAM
The Section 8 Housing Choice Voucher is administered by the Housing Authority of the County of Riverside. The program provides rental assistance to extremely low- and very lowincome and special needs households (e.g., elderly and disabled).

As of September 2021, the Housing Authority provided Housing Choice Voucher rental assistance to 370 households living in Desert Hot Springs.

To assist lower income and special needs households, especially those of extremely low income, the City will continue to support the Housing Authority’s applications to the U.S.

Department of Housing and Urban Development (HUD) for additional funding and assist the Housing Authority in marketing the program to rental property owners.

This Program was included in both the 4th and 5th Cycle Housing Elements.

Objective: Provide assistance to at least 400 extremely low- and very low-income households, an increase of 30 households from the September 2021 figure.

Responsible Agency: Housing Authority of the County of Riverside Timeframe: Implementation throughout the 2021-2029 planning period Funding Source: HUD Housing Choice Vouchers
Evaluation: As of July 2025, the City, via the County Housing Authority, is assisting 339 households through the Section 8 program, which is 66 fewer than its 2029 goal and a decrease of 31 household from 2021. Although there was a decrease Section 8 participants during the first half of the 6th cycle, the City continues to coordinate with the Riverside County Housing Authority on an annual basis to encourage increased Section 8 vouchers. The City is limited by the County’s funding for this program, and will continue to lobby for additional households to be provided funding.

The Section 8 rental voucher program provides rental assistance to help very low income and special needs households afford decent, safe, and sanitary rental housing. The Program is administered by the Housing Authority of the County of Riverside.

Item Number: 3.

APPENDIX G PROGRESS REPORT
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The family receiving assistance typically pays no more than 30% of their income on rent and the Housing Authority pays the owner the remaining portion of the rent (a housing assistance payment (HAP)) on behalf of the renter.

The Housing Authority receives program funding from HUD.

Since 2013, the City has continued to support the County Housing Authority’s applications for additional Section 8 funding from HUD and assist the Housing Authority in marketing the program to renters and landlords.

As of September 1, 2021, 370 renter households living in Desert Hot Springs were receiving Section 8 rental assistance. This represents an increase of 15 households since July 2018.

TThe City’s support in marketing and implementing the Section 8 program directly helps renter households with special needs by relieving their housing cost burden. The City supported the request by Abode Communities for 21 HOME program project vouchers from the Housing Authority to assist in funding the first phase of Park Lane Homes.

Program 3 2.1 was effectivelywill continue to be implemented through 2029.

PROGRAM 2.2: FIRST TIME HOMEBUYER PROGRAM
Desert Hot Springs is a CDBG/HOME cooperating city with the County of Riverside. Through this cooperative effort, City residents and projects located in Desert Hot Springs are eligible for a variety of County funded programs including the First-Time Homebuyer Program.

The First Time Homebuyer Program provides 20% of the purchase price for the down payment not to exceed $75,000.

The County’s 2019-2024 Consolidated Plan allocates $4,353,170 to the Frist Time Homebuyer Program. The funding amount is projected to assist 100 households over a fiveyear period. The funding amount may assist households living in the County territory and the 13 cooperating cities. Therefore, the number of households that can be assisted in any one city is limited.

The City will continue to inform eligible homebuyers of the program. First Time Homebuyer Workshops will be conducted by the Fair Housing Council of Riverside County, Inc. The Workshops will describe the “nuts and bolts” of the home buying process and teach participants how to apply for assistance.

Objective: First Time Homebuyer Assistance to eight (one per year) buyers purchasing homes in Desert Hot Springs.

Responsible Agencies: Community Development Department Planning Division, County of Riverside Economic Development Agency and FHCRC
Timeframe: Ongoing throughout the 2021-2029 8-year planning period, Funding Source: County of Riverside HUD CDBG/HOME Funds Evaluation: The City partnered with Riverside County in creating a First Time Homebuyer Program (FTHB). The City has promoted the FTHB program through its website at:
https://www.cityofdhs.org/homeownership/. The City also held a joint workshop with Riverside County on July 13, 2024 that discussed the FTHB program.

Item Number: 3.

APPENDIX G PROGRESS REPORT
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Between January 2021 and April 2025, 13 homes were purchased in Desert Hot Springs under the FTHB program with funding sources including HOME (HOME Investment Partnerships Program), PLHA (Permanent Local Housing Allocation), and ARPA (American Rescue Plan Act). The City has met its goal of eight FTHB home purchases.

The County is expected to receive PLHA funds and HOME funds in mid- to late-2025. These funds are intended to address the unmet housing needs of local communities by supporting the development, acquisition, rehabilitation, and preservation of affordable housing for various income levels, including extremely low, very low, low, and moderate-income households. The City supported the request by Abode Communities for 21 HOME program project vouchers from the Housing Authority to assist in funding the first phase of Park Lane Homes.

The City has successfully implemented Program 2.2 and will continue public outreach for program funding as it is available through 2029.

PROGRAM 2.3: AFFORDABLE HOUSING INCENTIVES PROGRAM
For-profit and non-profit developers play a significant role in providing affordable housing in the City. The City will encourage and support the development of rental projects that meet the needs of lower-income renters, extremely low-income households, seniors, and persons with disabilities, including developmental disabilities. Actions will include:
§ Meeting with potential affordable housing developers, providing site information, assisting in the entitlement processes, and considering on a case-by-case possible development incentives.
§ Reviewing published notices for funding availability and causing applications to be prepared for various City housing programs, projects, and activities. § Posting the sites inventory on the City’s website with a special focus on the sites located in the moderate resource neighborhoods.
§ Assisting developers in identifying available sites for residential and mixed-use developments.
§ Offering local non-profit developers and agencies technical assistance and information on City funding sources.
§ Encouraging use of the density bonus provisions through technical assistance and information dissemination.
§ Alerting housing developers with known interest in developing within the City when opportunities are available (e.g. sites, partnerships, City-owned land, availability of funding).
§ Deferring, reducing and/or waiving development fees in order to facilitate and encourage the development of housing that meets the City’s housing needs. § Providing incentives and regulatory concessions to affordable and moderate income housing developments. Regulatory concessions will be considered on a case-by-case basis and can include appropriate deviations in development regulations or other incentives that results in identifiable, actual cost reductions. § For Site 9, which will develop as a mixed use project, the City will provide incentives for subdivision and development, including those incentives described above, as well as the waiver of application fees for the subdivision of the site to separate the 9 acres of R-H from the 17 acres of MU-C.

Item Number: 3.

APPENDIX G PROGRESS REPORT
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Objective: Use of affordable housing incentives by private developers which will be reported in the Annual Progress Report, and coordination with the Lift to Rise Regional Plan.

Responsible Agency: Community Development Department Planning Division Timeframe:
§ Implementation throughout the planning period
§ Meet with developers at least once a year with technical assistance and information dissemination
§ Conduct pre-application conferences and on a case-by-case basis.

Funding Source: General Fund
Evaluation: The City established an incentive program to reduce impact fees in a defined Discount Zone located in the older areas of the City which have the highest concentration of poverty. The Discount Zone provides a 25% discount on all local impact fees. The City also eliminated all impact fees for ADUs regardless of size, going beyond the State requirement.

The City deferred all impact fees for the affordable housing project Crossings at Camino Campanero for a period of 55 years at the request of the developer. The City holds preapplications meetings every Thursday for prospective developers to guide them through the development process and define specific submittals required for entitlements. These preapplication meetings are free of charge and attended by all City Departments.

Program 2.3 is being successfully implemented and will continue through 2029.

PROGRAM 2.4: REGIONAL PLAN FOR THE DEVELOPMENT OF 2,000 AFFORDABLE

HOUSING UNITS
Lift to Rise is a local collective impact organization based in Palm Desert working toward a future where all Coachella Valley families are healthy, stable, and thriving. Their work brings together community and institutional leaders to collaboratively solve the underlying causes of poverty and inequality in the region. Years of deep data analysis, in partnership with the USC Price Center for Social Innovation, and community listening have revealed that housing instability and a lack of economic mobility are primary drivers of struggle for Coachella Valley families. They organized two cross-sector collaborative action networks (CANs) with over 50 public, private, and institutionalpartners to address these root-cause issues and radically change the landscape of opportunity for everyone who calls the Coachella Valley home.

On March 16, 2021 the City Council approved the Lift to Rise Pledge and joined the regional effort to produce 2,000 affordable housing units. Table II-3 shows that Desert Hot Springs comprises 10% of the total RHNA allocation to the CVAG Region.

The We Will Lift: Regional Pledge for Housing and Opportunity signals support for the regional approach and plan to increasing housing stability and economic mobility.

Lift to Rise and a cross-sector network of partners have developed aplan to achieve housing stability and economic mobility by:
• Advancing a community-valued pipeline of investable projects that will result in 2,000 units of affordable housing in the next two years • Implementing affordable housing friendly policies that will facilitate the planning, approval, and construction of affordable housing units in the shared pipeline • Driving a regional investment vehicle to invest in and catalyze the developmentof Item Number: 3.

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affordable housing across the region
• Building pathways to economic mobility and security for residents The first three projects to receive capital from the fund with support from Lift to Rise and Low Income Investment Fund are being developed by Coachella Valley Housing Coalition:
● Las Casas Apartments (Coachella, CA): A farmworker housing development thatwill rehabilitate two existing developments encompassing 128 units of affordable housing for households earning 30% to 60% area median income.

Amenities include: Community Room, tot lots, and a childcare center. ● Vista Sunrise II (Palm Springs, CA): A new construction permanent supportive housing development for people with special needs, including those with chronicillness and those who are currently or at-risk of becoming homeless. The development includes 61 units of affordable housing for households earning 30%to 60% area median income. Amenities include:

Community Room, courtyard and dog park.
● Oasis Villas Community (Thermal, CA): A 25-acre, new construction mixeduse project for farmworkers and their families. This will include 160 units of affordablehousing for households earning between 30% and 50% of the area median income, a health clinic, and community-serving retail spaces.

Amenities include: Community Room, pool, tot lots, a soccer field and a basketball court.

As a part of implementing Program 2.4, the Community Development Department has transmitted to the Coachella Valley Housing Coalition, maps and assessor parcel numbers of the lower income housing sites, including those to accommodate the 284 extremely low income (ELI) RHNA units. The City is committed to facilitating the development of 200 affordable housing units, which is 10% of the Lift to Rise’s regional goal, with a focus on units affordable to ELI households.

In order to assist to the greatest extent possible with Lift to Rise’s program, the City will:
• Provide the City’s R-H sites inventory to Lift to Rise, as well as to affordable housing developers including CVHC, CHOC, Pacific West, Habitat for Humanity and other affordable housing developers who are all members of Lift to Rise’s CAN network. The inventory will be updated and redistributed annually.
• Contact land owners and connect them to affordable housing developers’ representatives to facilitate negotiations.
• Offer incentives listed in Program 2.3 when projects are proposed. • Participate in the funding process by writing letters of support to funding agencies. • Fast-track plan checks for funded projects to assure that they meet construction deadlines imposed by funding agencies.

Objective: 200 affordable housing units (10% of the 2,000 sub-regional total) Responsible Agency: Community Development Department Planning Division Timeframe:
§ Transmit sites information to the Coachella Valley Housing Coalition (CVHC) § Work with the CVHC to identify one or more affordable housing proposals Item Number: 3.

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§ Implementation within the 2021-2029 planning period
Funding Source: Lift to Rise resources which include a SCAG Regional Early Action Planning (REAP) award to fund planning activities to advance the production of affordable housing in the Coachella Valley
Evaluation: The City has three affordable housing developments that have been entitled but require funding, including Green Day Village, Crossings at Camino Campanero, and Park Lane Homes totaling 476 units, which exceeds to the City’s goal of facilitating the development of 200 affordable housing units. After entitlements were granted, the City partnered with Abode Communities to submit a joint AHSC application that will provide loan funds for the first 87 units.

Program 2.4 is being successfully implemented and the City will continue working with affordable housing developers through 2029.

PROGRAM 2.5: AREA AGENCY ON AGING OUTREACH PROGRAM
The City will reach out to the Area Agency on Aging to assist toward achievement of the following Area Plan on Aging goal, objective and policy:
• Goal: Participate in discussions, coalitions, collaborations, and initiatives that focus on developing age-friendly, disability friendly communities that support older adults and persons with disabilities, allowing them to remain in the homes and communities of their choice.
• Objective: Assist with providing safe and affordable housing solutions to keep older adults and persons with disabilities in the homes and communities of their choice. • Policy: Provide emergency assistance in the form of housing, rental, utility, transportation, home repairs and modifications, falls prevention, and mobility management assistance.

Objective: Complete outreach and City support
Responsible Agency: Community Development Department Planning Division and Desert Hot Springs Senior Center staff
Timeframe: One-year from adoption of the 2021-2029 Housing Element Funding Source: General Fund
Evaluation: No developers have pursued senior housing development between 2021 and 2024. While Program 2.5 has not been successfully implemented to date, the City will continue to actively engage with senior housing developers through 2029.

PROGRAM 2.6: EXTREMELY LOW INCOME (ELI) PROGRAM
The needs of 284 extremely low income (ELI) households are addressed within the framework of the programs administered by the City, County, and Housing Authority. Each of these entities addresses the needs of lower income households, including ELI income households.

The quantified objectives for ELI households are based on individual programs that address the existing and future needs of ELI households, as follows:

Item Number: 3.

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§ Program 2.1 – Section 8 Housing Choice Vouchers - 200 ELI households. City to assist the Housing Authority in marketing and funding applications for the Section 8 program to increase vouchers provided in the City by 30 during the planning period.
§ Program 2.4 – Regional Plan for the Development of 2,000 Affordable Housing Units – 40 ELI households (20% of the City’s target 200 housing units). City to actively participate in affordable housing development as described in Program 2.4, above. § Program 4.2 – Homeowner Housing Rehabilitation Program – 2 ELI households (2 of the total 8 households). City to mail information to identified households annually and assist in the preparation of applications, including translation and writing assistance for homeowners with special needs or low income (including ELI) to apply.

Objective: Assist 284 ELI households
Responsible Agency: Community Development Department Planning Division and Desert Hot Springs Senior Center staff
Timeframe: See Programs 2.1, 2.4 and 4.2.

Funding Source: General Fund
Evaluation: See evaluation discussions under Programs 2.1, 2.4 and 4.2.

PROGRAM 3.1: ZONING ORDINANCE UPDATE (LEAP GRANT)
The Zoning Ordinance Update will address the governmental constraints described in Appendix D – Analysis of Governmental Constraints:

The City will update its Zoning Ordinance to revise zoning and development standards in order to accelerate housing production. This will include reviewing the Zoning Ordinance to update development standards to ensure that the maximum density can be achieved, adopt new permitted uses so that all zones allow for residential uses, amend the findings for Development Permits to eliminate findings 3 and 9, and revise development standards to be consistent with state law.

Objective: Completion of the Zoning Ordinance Update per the LEAP Grant Schedule Responsible Agency: Community Development Department Planning Division Timeframe: Completion by June 2023
Funding Source: Local Early Action Planning (LEAP) Grant and General Fund Evaluation: The City updated a total of 13 chapters of the Zoning Ordinance to conform to State housing laws, implement objective review standards, and remove barriers to development housing. The complete list of quantified outcomes of the LEAP Grant are as follows:

1. Approved the Housing Element to accommodate housing development. Densities were increased for Residential-Medium, Residential High, Mixed-Use Corridor, and Visitor-Serving zoning districts. Multi-family residential is now permitted in the Downtown Commercial zone and single-family residential is now permitted in the Mixed-Use Neighborhood zone.

Item Number: 3.

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2. Updated Zoning Code (Title 17), including substantial amendments to the following chapters, with some examples for each:

Chapter 17.74 Administrative Conditional Use Permits (AUPs) • Increased the number of units in a multi-family housing development approved at the staff level from 4 to 20.
• The lifespan of AUPs was increased to five (5) years with a two-year initial approval, and the ability for three (3) one (1) year extensions.

Chapter 17.76 Conditional Use Permits
• The lifespan of CUPs was increased to five (5) years with a two-year initial approval, and the ability for three (3) one (1) year extensions.

Chapter 17.80 Design Review
• Language was simplified and mixed-use projects added to the list for reviews.

Chapter 17.92 Development Permits
• Minor additions approved administratively to mixed-use projects was increased to 20% of the square footage.
• Multi-family developments of 20 units or less are approved administratively at the staff level.

Chapter 17.04 Hearing and Appeals
• Language was cleaned up and made consistent with other parts of the code.

Chapter 17.136 Temporary Use Permits
• Construction trailers for all types of projects were added to the list • Requirements for ADA access were included for projects Chapter 17.124 Nonconforming Structures and Uses
• Non-conforming lot restrictions were amended to allow existing lots of record to be built on, even if they do not meet certain minimum requirements • Restrictions were eliminated to allow all nonconforming residential structures to be expanded
Chapter 17.56 Landscaping Standards
• Simplified requirements for landscaping of residential projects and provided the option of pre-approved landscape plans
Chapter 17.24 Public Use Districts
• Greatly simplified the number of districts to one (1) and included all uses Chapter 17.48 Off-Street Parking Standards
• Removed on-site parking requirements for structures in downtown • Allowed for additional parking areas in the front yard to accommodate larger families
Chapter 17.12 Commercial Districts
• Allowed for multi-family residential in Downtown Commercial Districts and senior housing in General Commercial Districts
Item Number: 3.

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Chapter 17.08 Residential Districts
• A major overhaul of the entire chapter was made separating out design standards from design guidelines
• Removed the Conditional Use Permit requirement for residential projects • Eliminated conflicting language on density in Residential Low zoning category Chapter 17.14 Mixed-Use Districts
• Added single-family residential to Mixed-use Neighborhood, removing many houses that were considered non-conforming
• Allowed for Live/Work units
Chapter 17.18 Visitor-Serving Districts
• Updated to match the General Plan with simplified zoning districts • Referred residential development requirements back to Chapter 17.08 to streamline process.
• Allowed for Live/Work units
Updated Chapters of the Zoning Code can be found here:
https://ecode360.com/43990414

3. Updated GIS layers on the City’s website. The updated GIS land use and zoning layers can be found on this website:
https://experience.arcgis.com/experience/25ddd81d8988469f8d3a052c57752e10 All zoning and land use layers were updated. Errors were corrected. Improved base maps were incorporated. Separate viewers were updated (using the same data) to aid in processing development applications – Planning Department, Public Works Department, and the Public Viewer
Program 3.1 was effectively implemented, and the LEAP Grant has closed out.

PROGRAM 3.2: REASONABLE ACCOMMODATION APPLICATION/BROCHURE The City will make available the application for reasonable accommodation in English and Spanish and post it alongside the brochure describing the Reasonable Accommodation Procedure on the City’s website. The City will target 10 households annually during the planning period, for a total of 50 households. Outreach regarding reasonable accommodation will include public service messages on the City’s cable/meeting broadcast channel, distribution of the brochure to County and private medical clinics.

Objective: Complete preparation of the application
Responsible Agency: Community Development Department Planning Division Timeframe: December Brochure distributed and posted in 2022; Outreach and brochure distribution annually throughout the planning period.

Funding Source: General Fund
Item Number: 3.

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Evaluation: The brochure for reasonable accommodations was distributed and posted in 2022 in both English and Spanish. Outreach and brochure distribution occurs annually and will continue throughout the 6th cycle.

Program 3.1 was effectively implemented and will continue to be implemented through 2029.

PROGRAM 3.3: ADU INCENTIVES PROGRAM
The City will implement Incentives which are intended to produce lower cost ADUs, primarily as a function of housing unit size:
§ Inform owners of fee exemptions for ADUs of less than 750 SF § Inform owners of the Section 8 Housing Choice Voucher Program and County of Riverside Housing Authority contacts
§ Provide residents with pre-designed ADU expedited permit plans free of charge § Include additional incentives which are determined feasible by the Zoning Ordinance Update (Program 3.1)
Objective: Implementation of ADU incentives Program
Responsible Agency: Community Development Department Planning Division Timeframe:
§ On October 14, 2021, the City issued an RFP for the design and preparation of building plan sets for an Accessory Dwelling Unit Program. The goal of creating the pre-approved ADU plans is to expedite the plan check process and help reduce the cost of building new ADUs in Desert Hot Springs.
§ Host community workshops on pre-approved ADU building plans and construction classes in English and Spanish in mid-2022 as soon as the ADU plans are developed, and repeat the workshops annually thereafter throughout the planning period. § Prepare an information package to hand out to owners within six months of adoption of the 2021-2029 Housing Element.
§ Post the information package on the webpages of the Planning Division and Building Division.
§ Implement the ADU incentives throughout the 8-year planning period Funding Source: General Fund
Evaluation: Under the SB 2 Planning Grants Program, the City created pre-approved ADU building plans available to developers, builders, and residents of the City free of charge. The ADU program includes four different architectural styles, Pueblo, Spanish, Mediterranean, and Contemporary, providing a variety of styles that would be compatible with the main residence.

The program also provided a variety of floor plan options – Studio, 1 Bedroom, 2 Bedroom, and 3 Bedroom – to allow the greatest flexibility for the homeowner in choosing an ADU plan that meets their budget and needs. Each stye and size included an optional garage, but this is not required.

The complete ADU program included the pre-approved stamped plans, a guidebook to prospective ADU builders, a sample site plan, a hold harmless statement, instructions for applying for a permit on-line, estimated fee sheets, and a workshop presentation. All of the information can be found on the City’s website: https://www.cityofdhs.org/accessory-dwellingunits-adus/. The guidebook, workshop presentation, and website have been translated into a Spanish version.

Item Number: 3.

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The City Council also waived the collection of ALL local impact fees for ADUs to provide a further incentive to build, regardless of size, going beyond State requirements. Between 2022 and 2024 the City approved 60 ADUs.

Program 3.3 has been successfully implemented and the City will maintain the ADU program through 2029.

PROGRAM 3.4: SB 35 STREAMLINING INFORMATION
SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). The City has not received any SB 35 development applications or inquiries. To accommodate any future SB 35 applications or inquiries, the City will create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Desert Hot Springs and provides SB 35 eligibility information.

Objective: Implementation of SB 35 streamlining ministerial approval process Responsible Agency: Community Development Department Planning Division Timeframe: Information packet availability by December 2021 Funding Source: General Fund
Evaluation: The City has created a checklist and poster with information regarding the SB 35 streamlining process and eligibility information. This information has been posted on the Housing Website under Building Residential Housing. (https://www.cityofdhs.org/buildingresidential-housing/).

Program 3.4 is being successfully implemented and will continue through 2029.

PROGRAM 3.5: GOVERNMENT CODE SECTION 65940.1
Government Code Section 65940.1 requires cities with an internet website to make available on their website a variety of housing development information such as, but not limited, to: fees and exactions; zoning, design, and development standards; annual fee reports; and impact fee nexus studies.

The Community Development Department will complete a full assessment of how the City complies with the requirements of Government Code 65940.1. As needed, additional information will be posted on each Department’s web pages.

Objective: Complete the assessment and add information as necessary Responsible Agency: Community Development Department Planning Division Timeframe: Complete assessment within six months of adoption of the 2021-2029 Housing Element
Funding Source: General Fund
Evaluation: The Community Development website contains information on zoning, design, and development standards, which are in the City’s Municipal Code, Title 17 Zoning, and are all online (https://ecode360.com/43990414#43990414). All fee information can be found Item Number: 3.

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under the Administrative services on the City website (https://www.cityofdhs.org/user-feestudy-and-cost-allocation-plan/).

Program 3.5 has been successfully implemented. Information will continue to be updated, as necessary, and the Program will continue though 2029.

PROGRAM 4.1: HOUSING CODE ENFORCEMENT
Code enforcement is an important tool for maintaining the quality of residential neighborhoods. The City’s Code Enforcement Program involves the enforcement of all Municipal Codes and Ordinances, various State and local laws and health and safety regulations as they relate to housing conditions. The primary method that the City uses to obtain code compliance is voluntary compliance. If this method does not attain compliance, then other actions are taken such as a Notice of Violation and Administrative Citation. The City will continue work to identify available resources at no cost to the property owners. In cases that require a larger financial investment for abatement, the City will work with property owners to identify potential financing mechanisms.

Objective: The City will continue providing ongoing inspection services to review code violations with an objective of 250 housing cases per year.

Responsible Agency: Code Compliance Department
Timeframe: Implementation throughout the 8-year planning period Funding Source: General Fund
Evaluation: The City’s Compliance Department closed 661 cases in 2022, 786 cases in 2023, and 889 cases in 2024 for properties that were issued violation notices.

Program 4.1 is being successfully implemented, far exceeding the goal of 250 housing cases per year. The City will continue to work with property owners to resolve residential violation notices through 2029.

PROGRAM 4.2: HOMEOWNER HOUSING REHABILITATION PROGRAM
The City is a cooperating city in the County of Riverside Urban County CDBG Program. The County’s 2019-2024 Consolidated Plan allocates $4,235,710 to the Homeowner Housing Rehabilitation Program. The 5-year goal is the rehabilitation of 125 owner-occupied housing units. Desert Hot Springs homeowners may apply for the financial assistance provided by this program. The program will provide home improvements and/or energy efficiency improvements for seniors, individuals with disabilities, and low-income (including extremely low income) households.

County staff has indicated that there have been very few applications from Desert Hot Springs residents in the past five years. The City will continue to cooperate with the County of Riverside in the implementation of home repair and rehabilitation programs.

The City will post information on its website describing the County program and encouraging eligible homeowners, including those with special needs and/or low-income, to submit an application.

Objective: Eight homes rehabilitated through the County’s program during the 2021-2029 planning period.

Item Number: 3.

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Responsible Agencies: Community Development Department Planning Division and County of Riverside CDBG program
Timeframe: 1 home annually through the 2021-2029 planning period Funding: County CDBG funds
Evaluation: The City is working with Riverside County Housing and Workforce Solutions on a Home Enhancement Program to assist low-income individuals with needed repairs. Eight (8) applications were received between 2022 and 2024, of which six of which were approved and two are being processed. With the 6th cycle halfway complete, the City is unlikely to achieve this goal without significant additional County funding.

The City will continue implementing Program 4.2 through 2029.

PROGRAM 4.3: ABANDONED RESIDENTIAL PROPERTY REGISTRATION In 2008, the City Council adopted an ordinance establishing an Abandoned Residential Property Registration to address the negative impact of foreclosures on the community.

The program requires lenders to maintain homes they seize, register the abandoned properties with the City, and to hire local property management firms to prevent vacant homes from becoming neglected. The program is funded by a $60 fee charged to title holders when they register an abandoned property with the City. The program is initiated with the first notice of default on a property and requires the local property management company to conduct weekly inspections. If the property is found to be in noncompliance, or if notification of noncompliance is reported, the local property management company is required bring the property back into compliance within 72 hours. The City will continue overseeing the Abandoned Residential Property Registration program as it prevents the City’s Code Enforcement Department from spending limited resources to act as the property manager.

Objective: Abandoned properties as they occur
Responsible Agencies: Code Compliance Department
Timeframe: Implementation throughout the 8-year planning period Funding Source: Abandoned Residential Property Registration program fees Evaluation: The City has implemented an Abandoned Residential Property Registry that currently lists 54 vacant properties with 18 properties added in 2025.

Program 4.3 is being successfully implemented and will continue through 2029.

PROGRAM 5.1: FAIR HOUSING SERVICES PROGRAM
The City of Desert Hot Springs takes affirmative steps to promote fair housing practices. The City works with the Fair Housing Council of Riverside County, Inc. (FHCRC) to provide fair housing services for residents.

The City will:
§ Continue to refer cases and questions to the FHCRC for enforcement of prohibitions on discrimination in lending practices and in the sale or rental of housing. § Work to increase awareness of fair housing protections.

Item Number: 3.

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§ Make fair housing information available at City Hall, Chamber of Commerce, Senior Center, and the Public Library. The information will include brochures and other written information that will be obtained from the FHCRC. In addition, the City will make information available on its Website and provide links to additional resources. § The City will work to obtain training and education on fair housing issues for the benefit of City staff and commissions.
§ Work with the Fair Housing Council of Riverside County, Inc. to ensure that female householders are free from housing discrimination on the basis of sex and familial status.
§ Post on the City’s website information on availability and location of child care services. § The City will work with the FHCRC to schedule Fair Housing Workshops, information on first time homebuyer workshops, and walk-in clinics
§ Provide information to apartment owners, property management companies and onsite property managers regarding reasonable accommodations, reasonable modifications; and service and companion animals.

Objective: Website: public counter posting of fair housing resources within six months of adoption of the 2021-2019 Housing Element. Other actions to be accomplished and implemented on an ongoing basis as needed.

Responsible Agencies: Community Development Department Planning Division Timeframe: Implementation throughout the 8-year planning period.

Funding Source: General Fund and/or County CDBG funds
Evaluation: The City added a Fair Housing page to its website that provides information and resources concerning Fair Housing, including brochures in both English and Spanish. (https://www.cityofdhs.org/fair-housing/) The City hosted, in conjunction with the County, a First Time Homebuyers Workshop in 2025 and plans to do so again when the funds become available.

Program 5.1 is being successfully implemented and will continue through 2029.

PROGRAM 5.2: AFFIRMATIVE FAIR HOUSING MARKETING PLAN
The City will have affordable housing developments implement an Affirmative Fair Housing Marketing Plan, a plan that describes specific steps that will be taken by developers to ensure that renters and buyers who are unlikely to apply for housing without special outreach have equal access to housing opportunities available in new housing developments.

Two components of the Marketing Plan include:
§ Identify the segments of the eligible population which are least likely to seek housing without special outreach efforts.
§ Outline an outreach program which includes special measures designed to attract those groups identified as least likely to seek housing and other efforts designed to attract persons from the total population.

The City will obtain the assistance of the Fair Housing Council of Riverside County, Inc. to develop the Marketing Plan and population targeting efforts.

Item Number: 3.

APPENDIX G PROGRESS REPORT
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Objective: Develop the Affirmative Fair Housing Marketing Plan within six months of adoption of the 2021-2029 Housing Element
Responsible Agencies: Community Development Department Planning Division and Fair Housing Council of Riverside County, Inc.

Timeframe: Work with affordable housing developers to implement the Marketing Plan throughout the 8-year planning period.

Funding Source: General Fund
Evaluation: A standardized Marketing Plan was not developed, as the City determined that housing developers employ individually preferred outreach methods for eligible renters.

Program 5.2 will be revised to require that affordable housing developers submit their marketing plans with building permit applications, thereby upholding the Program’s core objectives.

PROGRAM 5.3: POVERTY REDUCTION PROGRAM
To address displacement risks, the City will work with the Community Action Partnership to ensure that families living in the lowest resource neighborhoods are aware and make use of the programs available through the American Rescue Plan. Information also will be disseminated on existing programs that benefit poverty income families such as the Earned Income Tax Credit (EITC), and Supplemental Nutrition Assistance Program (SNAP).

Objective: Post information on the Community Action Partnership, American Rescue Plan, and safety net programs within six months of adoption of the 2021-2029 Housing Element.

Responsible Agencies: Community Development Department Planning Division and Community Action Partnership
Timeframe: Implementation throughout the 8-year planning period.

Funding Source: General Fund and/or County CDBG funds
Evaluation: When the Housing Element was adopted in 2021, the American Rescue Plan provided funding for California to address COVID-19 impacts and the funds are no longer available for new obligations after December 31, 2024.

The City did create a new Housing Expense Assistance page on its website (https://www.cityofdhs.org/housing-expense-assistance/) that provides resources for low income persons regarding assistance with utilities, including a Public Assistance Programs flyer (English and Spanish) that includes information on programs that provide financial relief and support to eligible low-income households, including SNAP.

Although most American Rescue Plan are no longer available, the City continues to research other funding sources, and the City shall continue implementing Program 5.3 through 2029.

PROGRAM 5.4: PLACED-BASED NEIGHBORHOOD POVERTY REDUCTION PROGRAM The County of Riverside Community Action Partnership (War on Poverty agency) uses census data to identify poverty pockets in its services territory. Outreach is done in these areas, and partnerships and community projects are then developed to target and engage these highneeds communities.

The City will undertake the following strategies and actions to improve the well-being of the most income-poor pockets, particularly CT 445.07 and 445.09 and alleviate displacement Item Number: 3.

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risks in those areas:

The City staff will work cooperatively with the Community Action Partnership staff to determine:
§ The criteria and census/American Community Survey (ACS) data used to identify pockets of poverty
§ The City staff will then complete research to identify the pockets of poverty that exist in Desert Hot Springs (using block or block group data). § The City staff will prepare a profile of information on housing, demographics, and well-being (health insurance, use of SNAP, use of public assistance). § The City staff will then work with the CAP staff to deliver in-house services and community projects that will provide beneficial impacts to up to 10 households or residents of the pockets of poverty annually during the planning period.

Objective: To start delivery of services in neighborhood pockets of poverty within one year of adoption of the 2021-2029 Housing Element.

Responsible Agencies: Community Development Department Planning Division and Community Action Partnership
Timeframe:
§ Complete research within 6 months of adoption of the 2021-2029 Housing Element § Complete project development within one year of adoption of the 2021-2029 Housing Element
§ Implementation throughout the 8-yearplanning period
Funding Source: General Fund and Community Services Block Grant funds Evaluation: A Demographics Profile Report was created at the end of 2024 for the two sites forming the City’s central planning area that have been identified as impoverished and segregated (Block 445.07 and Block 445.09). The City has yet to meaningfully connect with Community Action Partnership (CAP) staff, however the City has cultivated better relationships with Lift to Rise and the County Housing and Workforce Solutions (HWS).

While progress could be made with CAP, the City has been successfully implementing portions of Program 5.4 through other means, and will continue to implement the program through 2029.

PROGRAM 5.5: MOBILITY STRATEGIES PROGRAM
The City will coordinate with the Housing Authority of the County of Riverside to implement mobility strategies. At a minimum, the City will post on its website the Housing Opportunity Area Maps and describe the workshops to be conducted during the 8-year planning period by the Fair Housing Council of Riverside County, Inc.

The Housing Authority’s Housing Choice Voucher Administrative Plan explains that guidance and materials are offered to assist a family in selecting a housing unit. The staff indicates to Item Number: 3.

APPENDIX G PROGRESS REPORT
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families that they should consider proximity to employment, public transportation, schools, shopping and the accessibility of services.

During briefings sessions the Housing Authority encourages families to move to high opportunity areas by explaining the advantages of moving to an area that may offer better quality housing, education and employment opportunities. The Housing Authority provides families with Housing Opportunity Area Maps that cover the Coachella Valley and western Riverside County.

In addition, the City will provide residents with information explaining that California law prohibits source of income discrimination. The California Fair Employment and Housing Act (FEHA) prohibits housing providers, such as landlords, to refuse to rent to someone, or otherwise discriminate against them, because they havea housing subsidy, such as a Section 8 Housing Choice Voucher, that helps them to afford their rent.

Awareness of that State law prohibiting source of income discrimination will expand the neighborhoods in which Section 8 Housing Choice Voucher holders may seek rental housing.

Objective: Post maps and information within six months of adoption of the 2021-2029 Housing Element. Establish a working relation with Housing Authority staff within six months of adoption of the 2021-2029 Housing Element.

Responsible Agencies: Community Development Department Planning Division Timeframe: Implementation throughout the 8-yearplanning period.

Funding Source: General Fund
Evaluation: The City has established an on-going working relationship with Riverside County Housing and Workforce Solutions. Two affordable housing map viewers are posted to the City’s Affordable Housing website, including the California Affordable Housing Map and Lift to Rise Affordable Housing Portal. The maps are posted here:
https://www.cityofdhs.org/affordable-housing/.

Although there was a decrease Section 8 participants during the first half of the 6th cycle, the City continues to coordinate with the Riverside County Housing Authority on an annual basis to encourage increased Section 8 vouchers.

The City added a Fair Housing page to its website that provides information and resources concerning Fair Housing, including brochures in both English and Spanish. (https://www.cityofdhs.org/fair-housing/).

Program 5.5 is being successfully implemented and will continue through 2029.

PROGRAM 5.6: DISPLACEMENT RISK PROGRAM
Some households, particularly ELI households that are severely cost burdened, are at risk of displacement. Additionally, evictions are among the causes of displacement. To reduce displacement risk, the City will work to implement a program in coordination with the FHCRC; County of Riverside Housing Authority; and Lift to Rise.

Information will be posted on the City’s website:
§ How ELI households can apply to the Housing Authority to obtain rental assistance Item Number: 3.

APPENDIX G PROGRESS REPORT
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§ Tenant/landlord counseling services available from the FHCRC § How tenants can obtain eviction information from the FHCRC. § Rental assistance available from Lift to Rise (located in Palm Desert) Objective: Post information within six months of adoption of the 2021-2029 Housing Element.

Establish a working relation with Housing Authority, FHCRC, and Lift to Rise within six months of adoption of the 2021-2029 Housing Element.

Responsible Agencies: Community Development Department Planning Division Timeframe: Implementation throughout the 8-yearplanning period.

Funding Source: General Fund
Evaluation: The City created a new Housing Expense Assistance page on its website (https://www.cityofdhs.org/housing-expense-assistance/) that provides resources for low income persons regarding assistance with utilities, including a Public Assistance Programs flyer (English and Spanish) that includes information on programs that provide financial relief and support to eligible low-income households, including SNAP. The City added a Fair Housing page to its website that provides information and resources concerning Fair Housing, including brochures in both English and Spanish. (https://www.cityofdhs.org/fairhousing/).These resources are also provided during local workshops.

Program 5.6 is being successfully implemented and will continue through 2029.

PROGRAM 5.7: BILINGUAL ASSISTANCE ON DEVELOPMENT AND HOUSING

PROCESSES
The City has a large Hispanic population (54.5% of total population in 2019), which also make up 90% of all limited English speaking households in the City. The City will continue to provide and expand bilingual assistance during housing and development processes to better assist these households and residents and address potential issues associated with moderate segregation of Hispanic population in the community under the AFFH principle. The City’s goal will be to provide translation services to at least 100 residents annually throughout the planning period.

Specifically, the City will translate relevant materials for the following processes/programs:
§ Permit Application: Translate into Spanish.
§ Plan Review: Create flow charts in English and Spanish that reflect the scope of work required.
§ Code Book Interpretation: Provide access to electronic code books in Spanish. If codes are not available in Spanish, then the individual code sections will be translated. § Plan Review Corrections: Offer translations if requested. § Development Process: Create flow charts in English and Spanish that reflect the scope of work required.
§ Inspection Process: Translate inspections and inspection checklists into Spanish and include more pictures for explanation.
§ ADU Construction Process: Translate into Spanish for both design and development. § Entitlement Process: Translate into Spanish and create easy to read charts.

Item Number: 3.

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Objective: Provide translation for housing and development processes, post translated materials within a year of adoption of the 2021-2029 Housing Element, and provide ongoing bilingual assistance as requested.

Responsible Agencies: Community Development Department Planning Division Timeframe: Establish programs and processes by December 2022. Implementation throughout the 8-year planning period.

Funding Source: General Fund
Evaluation: The City employs bilingual permit technicians and planners to assist the community with housing programs and processes. Informational materials, such as brochures and flyers, are available in both English and Spanish. The application process is completely on-line through the City’s OpenGov portal and using tools like Google Translate will translate the portal to 243 languages, but staff is available to assist with applications for residents without computer access.

Program 5.7 is being successfully implemented and will continue through 2029.

PROGRAM 5.8: ACCESSIBILITY OF DEVELOPMENT AND HOUSING PROCESSES To make the development and housing processes more accessible to the community, the City plans to host workshops on various processes and programs described in Program 5.7 above.

The following stakeholders will be invited to the workshops:
§ Public housing authorities (PHAs)
§ Community-based organizations (CBOs)
§ Housing and community development providers
§ Lower income community members & households that include persons in protected classes
§ Fair housing agencies
§ Regional & independent living centers
§ Homelessness services agencies
§ Churches and community service organizations that serve ethnic/linguistic minorities The City will plan for an annual workshop throughout the planning period, and strive to increase participation by 20% per year in securing permits for home rehabilitation, code compliance corrections and building permits.

Objective: Host workshops on housing and development processes within a year of adoption of the 2021-2029 Housing Element, and evaluate participation and progress for continued implementation.

Responsible Agencies: Community Development Department Planning Division Timeframe: Establish workshop schedule and materials by December of 2022.

Implementation annually throughout the 8-year planning period.

Funding Source: General Fund
Evaluation: The City hosted a community workshop for the Housing Element 6th cycle fouryear update on August 12, 2025 where the City shared its progress in implementing the 2021- 2029 Housing Element goals and programs, and provided Spanish translation. The City has hosted ADU workshops in English and Spanish and plans to make this an annual event in the Item Number: 3.

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fall. The City hosted, in conjunction with the County, a First Time Homebuyers Workshop in 2025 and plans to do so again when the funds become available.

Program 5.8 is being successfully implemented and will continue through 2029.

PROGRAM 5.9: PLACE-BASED STRATEGIES FOR R/ECAP IMPROVEMENTS In order to improve conditions in CT 445.07 and 445.09, which are both R/ECAPs, the City will implement the following:
• Targeted investment: Focus homeowner housing rehabilitation funds (see Program

4.2) in these two areas.
• Focus code enforcement efforts in these two areas (see Program 4.1). • Recruit residents to serve on boards, committees, task forces and other local government decision-making bodies. All announcements (orally, written and on social media sites) for open positions will be advertised in English and Spanish, and translators made available at Council interviews.
• Expand access to community meetings, by continuing to provide Spanish translation at Planning Commission and City Council meetings on request.

Objective: Assist 10 households annually in the R/ECAP areas.

Responsible Agencies: Community Development Department Planning Division Timeframe: Recruitment of residents, January 2023 and annually as positions are open for application. Also see timeframes of Programs 4.1 and 4.2 Funding Source: General Fund
Evaluation: (Program 4.2) The City is working with Riverside County Housing and Workforce Solutions on a Home Enhancement Program to assist low-income individuals with needed repairs. Eight (8) applications were received between 2022 and 2024. Of the eight applications, three are located within a R/ECAP (one completed and two being processed). (Program 4.1) Citywide, the City’s Compliance Department closed 661 cases in 2022, 786 cases in 2023, and 889 cases in 2024 for properties that were issued violation notices for a total of 2,336 cases in first half of this planning period.

Since 2019, 6 of the 16 Planning Commissioners have come from the two R/ECAP Census Tracts in the City (044509 and 044507) and 4 of the 14 Public Safety Commissioners. All positions are openly recruited including using social media.

Spanish translation is currently offered during all public meetings upon request.

Program 5.9 is being successfully implemented and will continue through 2029.

Evaluation: Affordable housing policy to City Council to establish priorities. Home Enhancement Program using CDBG through Riverside HWS - 8 households. Determine how many are in R/ECAP Census Tracts. Get residents within tracts to serve on boards. 4: DENSITY BONUS
The City currently has two density bonus provisions. The first provision is based upon State Government Code Section 65915. The second provision provides density bonus incentives Item Number: 3.

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for the incorporation of on-site amenities. The two provisions provide flexibility for projects that provide affordable housing and on-site amenities.

The City will encourage use of the State Affordable Housing Density Bonus Law and the Incentive-Based Density Bonus provisions through technical assistance and information dissemination.

Between October 2013 and September 2021, the City has not received a density bonus application.

Program 4 was not effective due in large part to lack of multi-family housing production since 2014.

PROGRAM 5: HOMEBUYER ASSISTANCE PROGRAM
This Program was supported throughout the 2013-2021 period.

Desert Hot Springs is a CDBG/HOME cooperating city with the County of Riverside. Through this cooperative effort, City residents and projects are eligible for the – § First-Time Homebuyer Program (up to 20% of the purchase price) § Mortgage Credit Certificate Program (reduced federal income tax liability) The 5th Cycle Housing Element established an objective of assistance to four households annually or 32 during an 8-year period.

The program has been unsuccessful in reaching the quantified objective because it exceeds what the City should realistically expect in terms of program participation and the County funding that would be expended in Desert Hot Springs.

The County’s FTHB Program assists lower income renters living in the unincorporated area and 13 cooperating cities. The 5-year Consolidated Plan set an objective of assistance to 125 FTHB or 25 annually. The objective for the 2021/2022 Program Year is 20 assisted households. Since the FTHB Program is available to renters living in the County and 13 cities it is not likely that funding would be allocated to four households living in the City when the grand total of households that could be assisted is 20 per year.

The 2021-2029 Housing Element reduces the objective to eight households, or one per year.

The objective represents 5% of the County objective for the unincorporated area and 13 cooperating cities.

The City was to have conducted targeted marketing to eligible homebuyers as part of the program. However, this action was not accomplished. The 6th Cycle Housing Element replaces this action with First Time Homebuyer Workshops to be conducted by the Fair Housing Council of Riverside County.

For the reasons stated above, Program 5 was not effective. The 6th Cycle Housing Element creates a new approach to informing the public of the homebuyer assistance program.

The Housing Survey revealed a high interest from the respondents in first time homebuyer information. Instead of the fifth cycle Housing Element’s target marketing program, the 2021- Item Number: 3.

APPENDIX G PROGRESS REPORT
G-28
2029 Housing Element recommends that the Fair Housing Council of Riverside County, Inc. conduct First Time Homebuyer Workshops. The Fair Housing Council periodically holds these Workshops in various locations in Riverside County. At the Workshops the Council will not only describe the “nus and bolts” of buying a home, but also how to apply for assistance from the County’s program.

PROGRAM 6: AFFORDABLE HOUSING INCENTIVES
Through this program, the City will encourage and support the development of rental projects that meet the needs of lower-income renters, extremely low-income households, seniors, and persons with disabilities, including developmental disabilities.

The incentives include, but are not limited to:
§ Providing site information for residential and mixed use developments § Offering technical assistance and information on City funding sources § Encouraging the use of density bonuses
§ Deferring, reducing and/or waiving development fees in order to facilitate the production of affordable housing.
§ Providing incentives and regulatory concessions
The quantified objective was one affordable housing development per year.

The objective is overly ambitious given the limited funding allocated to the Inland Empire by the Low Income Housing Tax Credit Program and the fact that no developers have submitted to the City projects funded by Affordable Housing Sustainable Communities Program. (The Inland Empire includes the three counties of Riverside, San Bernardino and Imperial.) Many of the incentives, however, will contribute to the implementation of the Lift to Rise Program, which is a key program included in the 2021-2029 Housing Element.

For the reasons stated above, Program 6 was not effective. However, the incentives will contribute to implementation of the Lift to Rise program.

PROGRAM 7: ZONING ORDINANCE UPDATE
This Program is included in the 5th Cycle and 6th Cycle Housing Elements.

The City will undertake an update of the Zoning Ordinance to achieve consistency with the General Plan, encourage affordable and special needs housing, and conform to state law.

The City received Local Early Action Planning (LEAP) funds to complete the Zoning Ordinance Update.

Program 7 will be completed through the LEAP grant.

PROGRAM 8: MIXED-USE DEVELOPMENT
As part of a comprehensive General Plan update in 2019, the City will adopt two new mixeduse designations to encourage infill development at the City’s core that is compact and walkable, offers a mix of uses, and creates a sense of place. The City will also amend the Zoning Ordinance to include development standards and permitted uses for the mixed-use designations.

Item Number: 3.

APPENDIX G PROGRESS REPORT
G-29
The City established three mixed-use zones on June 2, 2020, which are described below.

1. MU-N (Mixed-Use Neighborhood). The district is intended to provide local- and neighborhood-supporting mixed-use activity centers with maximum residential densities of 15 dwelling units per acre and/or nonresidential intensity with a maximum floor area ratio (FAR) of 1.0. Commercial retail uses are the primary uses allowed on the ground floor. Professional office and residential uses are also allowed, either integrated with a commercial use or as separate, free-standing use.

2. MU-C (Mixed-Use Corridor). The district is intended to provide higher-intensity, commercially oriented activity with maximum residential densities of 30 dwelling units per acre and/or maximum nonresidential intensities of 1.50 FAR. Residential development is allowed, either as part of a mixed-use project or as a freestanding use and are encouraged to be developed at the highest allowable density.

3. VS-M (Visitor-Serving Mixed). This district is intended to provide for areas appropriate for accommodations, goods, and services intended to serve primarily visitors to the City. Also allowed are detached and attached residential uses at a maximum density of 20 dwelling units per acre. Either commercial or residential development is allowed, but not concurrently on the same property.

Multifamily, supportive and transitional housing are uses permitted by right in the three mixed use zones. These new zones can accommodate housing for special needs populations such as large households and persons experiencing homelessness. Mixed use development in these zones will bring jobs and services closer to homes and potentially benefit people with limited mobility such as the elderly and persons with disabilities. The MU-N zone with neighborhood-supporting mixed-use activity centers can especially benefit female headed households by providing amenities closer to homes and reducing transportation costs.

Program 8 was effective.

PROGRAM 9: WATER AND SEWER SERVICE PROVIDERS
This program was implanted following adoption by the City Council of the 2013-2021 Housing Element on July 7, 2021.

In accordance with Government Code Section 65589.7 as revised in 2005, the City delivered the adopted Housing Element to the Mission Springs Water District and the Coachella Valley Water District.

The Mission Springs Water District (MSWD) is the primary water service provider in Desert Hot Springs. The District’s service area encompasses 135 square miles including the City of Desert Hot Springs, 10 smaller communities in Riverside County, and communities in the City of Palm Springs.

Government Code Section 65589.7(a) requires:
§ Each public agency or private entity providing water or sewer services shall grant a priority for the provision of these services to proposed developments that include housing units affordable to lower income households.

Item Number: 3.

APPENDIX G PROGRESS REPORT
G-30
§ A public agency or private entity providing water or sewer services shall adopt written policies and procedures, not later than July 1, 2006, and at least once every five years thereafter, with specific objective standards for provision of services in conformance with this section
The two Districts are currently updating their Master Plans. The City staff has transmitted to the Districts the RHNA, draft Sites Inventory, and the locations of the lower income housing sites.

The City staff has informed the Districts that they are available to assist in the preparation of policies and procedures.

Program 9 was effective.

PROGRAM 10: SB 35 STREAMLINING INFORMATION
SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). The City has not received any SB 35 development applications or inquiries. To accommodate any future SB 35 applications or inquiries, the City will create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Desert Hot Springs and provides SB 35 eligibility information.

Although the information packet was to be available by December 2020, it has not been prepared. The staff is planning to complete the information packet by December 2021.

The Community Development Department has been understaffed for 12 months. During this time the Director position has been filled for a period of only eight weeks. The less than full staffing has hindered the implementation of this and other programs.

For the reasons stated above, Program 10 was not effective.

PROGRAM 11: CODE ENFORCEMENT
Code enforcement is an important tool for maintaining the quality of residential neighborhoods. The City’s Code Enforcement Program involves the enforcement of all Municipal Codes and Ordinances, various State and local laws and health and Safety regulations as they relate to conditions or activity within the City. The primary method that the City uses to obtain code compliance is Voluntary Compliance. If this method does not attain compliance, then other actions are taken such as a Notice of Violation and Administrative Citation.

This program was implemented as the City continued to provide inspection services throughout the 5th Cycle planning period.

Program 11 was effective.

PROGRAM 12: HOUSING REPAIR AND REHABILITATION PROGRAMS
Item Number: 3.

APPENDIX G PROGRESS REPORT
G-31
City residents and projects are eligible for two County funded programs:
§ Home Repair Loan Program (HRLP)
§ Senior Home Repair Grant (Program SHRG)
During the past eight years, the City continued to cooperate with the County in program implementation efforts. However, the targeted marketing program has not been completed.

City staff plans to complete the targeted marketing program by December 2021.

Contingent on funding availability, the program objective was to assist 10 households annually or 80 over an eight-year period. The objective is overly ambitious given the CDBG funding the County allocates to the program. The County’s annual goal ranges between 22 and 25 rehabilitated homes or less than 200 over an eight-year period. As noted earlier, the County’s service area includes the unincorporated area and 13 cities.

Program 12 was not effective.

The 2021-2029 Housing Element revised the objective to eight homes during the 2021-2029 planning period.

PROGRAM 13: ABANDONED RESIDENTIAL PROPERTY REGISTRATION In 2008, the City Council adopted an ordinance establishing an Abandoned Residential Property Registration to address the negative impact of foreclosures on the community. The program requires lenders to maintain homes they seize, register the abandoned properties with the City, and hire local property management firms to prevent vacant homes from becoming neglected. While foreclosures in the City have dropped substantially from a high of 452 homes in 2010, to 28 homes in 2018. The City will continue overseeing the Abandoned Residential Property Registration Program as it prevents the City’s Code Enforcement department from spending limited resources to act as the property manager.

The program has been continuously implemented since 2008. By holding property owners and managers accountable for maintaining vacant homes in compliance with City standards, the program prevents negative impacts on the community such as squatting, maintains adequate housing and community conditions, and prevents loss of housing stock due to dilapidation. This program indirectly benefits special needs populations by maintaining the City’s housing stock and opportunities.

PROGRAM 14: AT-RISK HOUSING MONITORING
Housing Element law requires jurisdictions to provide an analysis and program for preserving the affordability of assisted housing developments at risk of converting to market rate housing.

Based on City records and information from the California Housing Partnership Corporation, in the next 10 years no assisted housing developments in Desert Hot Springs are at risk of losing their affordability status.

Although the City has not identified any housing units at risk of converting to market rate during the planning period, City staff will monitor the status of existing and future affordable housing.

Should any of the properties become at risk of converting to market rate, the City will work with property owners, interest groups, and the State and federal governments to conserve the affordable housing stock.

Item Number: 3.

APPENDIX G PROGRESS REPORT
G-32
During the 2013-2021 period, the City monitored the nine affordable rental developments.

None of the developments are at risk of converting to market rate housing on or before 2031.

The program helps special needs populations by maintaining affordable housing supply and preventing loss of affordable rental units in the City.

Program 14 has been effective.

PROGRAM 15: FAIR HOUSING SERVICES
The City takes affirmative steps to promote fair housing practices by contracting the services of a non-profit organization to provide fair housing services in the City. The City works with the Fair Housing Council of Riverside County, Inc.(FHCRC) to provide fair housing services for residents and housing professionals.

The City will:
• Continue to refer cases and questions to the FHCRC for enforcement of prohibitions on discrimination in lending practices and in the sale or rental of housing. • Work to increase awareness of fair housing protections. • Make fair housing information available at City Hall, Chamber of Commerce, Senior Center, and the Public Library. The information will include brochures and other written information that will be obtained from the FHCRC. In addition, the City will make information available on its Website and provide links to additional resources.

The City has implemented the above three actions.

However, it should be noted that the “contract” is actually executed between the County and FHCRC. The City’s support for fair housing services and dissemination of relevant information and resources assists special needs populations in getting fair housing protections and avoiding or rectifying discrimination in housing processes.

PROGRAM 16: AFFIRMATIVELY FURTHER FAIR HOUSING
The City will promote and affirmatively further fair housing opportunities and promote housing for all persons including those protected by the California Fair Employment and Housing Act and any other state and federal fair housing and planning law. The City will:
• Provide equal access to housing for special needs residents such as people experiencing homelessness, elderly individuals, and persons with disabilities. • Promote the provisions of disabled-accessible units and housing for persons with mental and physical disabilities.
• Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements. • Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the Zoning Ordinance.
• Work with the County of Riverside to implement the Regional Analysis of Impediments to Fair Housing Choice and HUD consolidated plans.

Item Number: 3.

APPENDIX G PROGRESS REPORT
G-33
• Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters, libraries, and on the City’s/County’s website.
• Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings.
• Ensure environmental hazards are analyzed and abated before developing affordable housing.
• Prioritize community and stakeholder engagement during controversial development decisions in and around low-income neighborhoods.

As a matter of policy, the City implements all the actions listed above. However, the City has not yet created the fair housing informational flyers. The City’s policy implementation to affirmatively further fair housing opportunities directly benefits special needs populations by preventing and eliminating discrimination and providing equal access and additional assistance to persons with disabilities and language barriers.

Program 16 has been partially effective. To assist the large Hispanic population and residents with their housing needs, the City has hired a Development Director that is bilingual in English and Spanish to help remove any language or cultural barriers during housing processes.

Moving forward, the City will expand bilingual assistance on housing and development processes, including translating relevant regulatory and other materials such as comments and reviews into Spanish and hosting bilingual workshops on pre-approved ADU building plans and construction classes. These measures are intended to address housing needs and burdens experienced by Hispanic residents, a majority group in the City.

Item Number: 3.

SR-25-222
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 7, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Annexation No. 50 to the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) for APN 666-370-032 located north of 20th Street and west of Little Morongo Road
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
5) Close the Public Hearing;
6) City Council discussion and questions of Staff;
7) Adopt a Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2010-1 (Services) (Annexation No. 50);
8) Hold the election;
9) Canvass the election; and
10) Adopt a Resolution declaring election results for annexation to Community Facilities District No. 2010-1 (Services) (Annexation No. 50)
DISCUSSION:

On September 2, 2025, the City Council approved Resolution No. 2025-041 declaring its intention to annex territory to Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs (the "CFD No. 2010-1" or "District") and commence the annexation proceedings for the property for the purpose of levying special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City. A public hearing on this matter was scheduled for October 7, 2025. The City Council will conduct a public hearing regarding the annexation of approximately 94.91 acres of land to Community Facilities District No. 2010-1 (Services). This parcel is currently being developed. At the conclusion of the public hearing, the Council will consider adopting a resolution scheduling a special election within the territory to be annexed to the community facilities district on the question of the annual levy of special taxes on the annexing property to pay the costs of maintenance services financed by CFD No. 2010-

1. The resolution schedules the special election on October 7, 2025, immediately following the public hearing.

Item Number: 4.

SR-25-222
The services as described above may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the California Government Code. The existing and new development of residential and non-residential properties does not provide sufficient revenues to provide landscape maintenance and lighting services. The City formed CFD No. 2010-1 (Services) to address this shortfall and to provide certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property. Special Tax rates are based on District costs, maintenance category, as well as land use category. These Special Tax rates are applied on a Benefit Unit basis determined by the property's Land Use Category which are one (1) BU per single-family residential unit, six tenths (0.6) BU per multi-family unit, five (5) BUs per acre for commercial and hotel property, and two (2) BUs per acre for industrial and religious property. To accommodate the unknown maintenance costs of future projects, properties are assigned Maintenance Categories with a rate per BU for providing services to those parcels. There are 36 Maintenance Categories included in the Rate and Method of Apportionment. These 36 Maintenance Categories range from $20.00 to $5,000 per BU which is determined by their Land Use Category.

After a Maintenance Category has been assigned, the Special Tax levied adjusts annually by the greater of the Consumer Price Index or two- and one-half percent at the beginning of each following fiscal year. The City can levy less than the maximum annual special tax if the full amount is not needed, but never more. Maintenance Category assignments can be seen in Exhibit B of the attached resolution calling an election. The proposed annexation to the District consists of approximately 94.91 acres.

The proposed special taxes for the properties included in this annexation for Fiscal Year 2025-26 is a maximum of $5,000 per BU and may increase annually by the greater of the Consumer Price Index or two- and one-half percent.

This fiftieth annexation to the District will increase CFD No. 2010-1 by one parcel, 94.91 nonresidential acres.

The property owner(s) requesting the annexation of its property to the community facilities district has delivered to the City Clerk a written waiver consenting to the special election being conducted by the City Clerk by October 7, 2025.

Immediately following the adoption of the resolution calling the election, the property owner will deliver a voted Official Ballot(s) to the City Clerk. The City Clerk will then canvass the voted ballot and report the results of the election to the Council. The Council will then consider the adoption of the resolution declaring the results of the election, which will complete the annexation of the property to the community facilities district.

FISCAL IMPACT:

Currently, existing and new developments generate insufficient General Fund revenues to pay for the General Fund expenses of serving the area. The District provides the City additional funding for a portion of landscape maintenance, lighting, and drainage basin service costs (i.e. landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space). A portion of the operations funding will be derived from alternative funding sources including other special districts and the City's General Fund.

All costs associated with the annexation to the CFD No. 2010-1 are to be paid for by the property owners/developers who are participating in the annexation to the CFD No. 2010-1 through an Item Number: 4.

SR-25-222
application fee of $5,000. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) Recorded Boundary Map Annex 50
2) Resolution Calling an Election
3) Petition Waiver Consent
4) Resolution Declaring Election Results
5) Letter From City Clerk Attesting No Registered Voters - CFD 2010-1 Annexation 50 6) Certificate Declaring Election Results
7) Public Hearing Notice
8) CouncilProperties_CFD2010-1_Annex50
Item Number: 4.

L

THIS MAP SHOWSTHE BOUNDARIESOF AREASTO BE
ANNEXEDTO COMMUNITYFACILITIESDISTRICT NO.
2010-1 (SERVICES) OF THE CITY OF DESERT HOT

SPRINGS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.THEBOUNDARIESOF WHICHCOMMUNITY

FACILITIESDISTRICT ARE SHOWN AND DESCRIBED

ON THE MAP THEREOF WHICH WAS PREVIOUSLY
RECORDEDON JUNE 8, 2010, IN BOOK74 OF MAPSOF

ASSESSMENTANDCOMMUNITYFACILITIESDISTRICTS
AT PAGE 81 ANDAS INSTRUMENTNO. 2010-0263725,

IN THE OFFICE OF THE COUNTY RECORDEROF THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBYCERTIFYTHATTHE WITHIN MAP OR AREAS

TO BE ANNEXED TO COMMUNITY FACILITIES
DISTRICT NO. 20104 (SERVICES) OF THE CITY OF

DESERTHOT SPRINGS,COUNTYOF RIVERSIDE,STATE

OF CALIFORNIA,WAS APPROVEDBYTHE CITYCOUNCIL

OF THE CITYOF DESERT HOT SPRINGSAT A REGULAR
MEETINGTHEREOF,HELDON THE 2nd DAYOF
5W9??-
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NO. :02;- o4l .

CIéELERK

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VICINITY MAP

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ANNEXATION MAP NO. 50
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
THIS ANNEXATIONMAP CORREC71YSHOWS THE LOT 0R PARCEL
OF LANDINCLUDEDWITHINTHEBOUNDARIESOF THECOMMUNITY Webb FACILITIESDISTRICT FOR DETAILSCONCERNINGTHE LINESAND uumcmnmmc: DIMENSIONSOF LOTS OR PARCELS REFER TO THE COUNTY ASSESSOR'SMAPS FOR FISCAL YEAR 2025-2026.
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RECORDED THIS ? DAY OF sImbu— ,
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IN BOOK31 PAGE 23 OF MAPSOF ASSESSMENT

AND COMMUNITYFACILITIESDISTRICTS IN THE

OFFICE OF THE COUNTYRECORDER,IN THE
COUNTYOF RIVERSIDE,STATE OF CALIFORNIA.

FEE: ‘9 NO.: zoIB—QITQHo?

PETER ALDANA, ASSESSOR, COUNTY CLERK,

RECORDER
BY:

DEPUTY

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF DESERT HOT SPRINGS, THIS 2nd
DAY OF 59"“ 20_Z_5_.

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Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL

TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
(ANNEXATION NO. 50)
WHEREAS, on July 6, 2010 the City Council of the City of Desert Hot Springs (the “City”) approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California (the "CFD No. 2010-1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City Council called a special election for July 6, 2010, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2010-1 were submitted to the qualified electors within the CFD No. 2010-1; and
WHEREAS, on July 6, 2010, the City Council adopted Resolution No. 2010-038 determining the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on September 2, 2025, duly adopted Resolution No. 2025-041 (the “Resolution of Intention”) declaring its intention to annex certain territory to Community Facilities District No. 2010-1 (Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for October 7, 2025.

WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 50 Community Facilities District No. 2010-1 (Services)" a copy of which was recorded, on September 11, 2025, in Book 97 of Maps of Assessment and Community Facilities Districts at Page(s) 25, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on October 7, 2025, not earlier than the hour of 6:00 p.m. at the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, California 92240, relative to the proposed annexation of said territory to CFD No. 2010-1; and
WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2010-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2010-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2010-1 and that the qualified electors in such territory are the landowners; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2010-1 and the levying of a special tax as described in Exhibit B hereto; and
Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2010-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred in the election date set forth herein.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2010-1 (SERVICES) OF THE CITY OF DESERT HOT SPRINGS, DETERMINE AND ORDER AS FOLLOWS:

Section 1 Recitals. The foregoing recitals are true and correct.

Section 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2010-1 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.

Section 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2010-1 are valid and in conformity with the requirements of the Act.

Section 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2010-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2010-1, will be levied annually in CFD No. 2010-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto.

Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

Section 7. Tax Roll Preparation. The office of the Finance Director, 11-999 Palm Drive, City of Desert Hot Springs, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Finance Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

Section 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Finance Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2010-1.

Section 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on October 7, 2025, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

the boundaries of CFD No. 2010-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2010-1 on September 2, 2025, (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2010-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2010-1. (b) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2010-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (c) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on October 7, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the Election Day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(d) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.
(e) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

Section 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2010-1 in his/her office.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this seventh day of October 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on October 7, 2025, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: October 7, 2025
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 4.

EXHIBIT A

DESCRIPTION OF SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the Act, are the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of storm drainage and flood protection facilities, including, without limitation, drainage inlets and retention basins.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention.

The above services shall be limited to those provided within the boundaries of CFD No. 2010-1 or for the benefit of the properties within the boundaries of CFD No. 2010-1, as the boundary is expanded from time to time by anticipated annexations and said services may be financed by proceeds of the special tax of CFD No. 2010-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2010-1 before CFD No. 2010-1 was created.

Item Number: 4.

City of Desert Hot Springs B-1
Community Facilities District No. 2010-1 (Services)

EXHIBIT B

RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

OF THE CITY OF DESERT HOT SPRINGS
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2010-1 (Services), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2010, in an amount determined by the City Council of the City of Desert Hot Springs, acting ex officio as the legislative body of CFD No. 2010-1, by applying the rates and method of apportionment set forth below. All of the real property in CFD No. 2010-1, unless exempted by law or by the provisions herein, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax Requirement which are incurred by the City on behalf of CFD No. 2010-1 related to the determination of the amount of the levy of Special Tax, the collection of Special Tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2010-1, and costs otherwise incurred in order to carry out the authorized purposes relating to CFD No. 2010-1.
“Administrator” means the City of Desert Hot Springs City Manager of the City, or his or her designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below.

Item Number: 4.

City of Desert Hot Springs B-2
Community Facilities District No. 2010-1 (Services)
“Benefit Unit” means a single-family residential lot or dwelling unit or the equivalent.

Single Family Property is assigned benefit units based on the number of Residential Units per Assessor’s Parcel with the basis being one (1) benefit unit per Residential Unit. MultiFamily Residential Property is assigned 60 percent of one benefit unit, or six-tenths (0.6) benefit units, per Residential Unit. Commercial Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Hotel Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Industrial Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.

Religious Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.
“CFD” or “CFD No. 2010-1” means the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services).
“City” has the meaning set forth in the preamble.
“Commercial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, video rental stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronic stores, home supply stores, auto parts stores, and other businesses providing auto-related products and services. The Administrator shall make the determination if an Assessor’s Parcel is Commercial Property. “County” means the County of Riverside
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Hotel Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. The Administrator shall make the determination if an Assessor’s Parcel is Hotel Property. “Industrial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure. The Administrator shall make the determination if an Assessor’s Parcel is Industrial Property.

Item Number: 4.

City of Desert Hot Springs B-3
Community Facilities District No. 2010-1 (Services)
“Land Use Category” means any of the categories contained in Table 1 hereof to which a Parcel is assigned consistent with the land use approvals that have been received or proposed for the Parcel as of March 1 preceding the beginning of a Fiscal Year. “Maintenance Category” means any of the categories listed in Table 2 hereof to which an Assessor’s Parcel is assigned consistent with the rate per Benefit Unit for providing Services to said Assessor’s Parcel as determined by the Administrator. “Maximum Special Tax Rate(s)” means the Maximum Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below. “Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Religious Property” means any Assessor’s Parcel used as a place of worship or for other religious activities. The Administrator shall make the determination if an Assessor’s Parcel is Religious Property.
“Residential Unit” means, for each Fiscal Year, a building or portion thereof on an Assessor’s Parcel intended for use by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single family and multifamily dwellings. Residential Unit shall not include hotels or motels which shall be classified as Hotel Property.
“Services” means those services authorized to be funded by CFD No. 2010-1 as set forth in the documents adopted by the City Council when the CFD was formed. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2010-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2010-1, which are not Exempt Property.

Item Number: 4.

City of Desert Hot Springs B-4
Community Facilities District No. 2010-1 (Services)
B. ASSIGNMENT TO LAND USE AND MAINTENANCE CATEGORY
The Special Tax shall be levied annually upon each Assessor’s Parcel of Taxable Property for each Fiscal Year according to the Land Use Category and Maintenance Category assigned. Each Fiscal Year the Administrator shall identify the current Assessor’s Parcel Number assigned to all Assessor’s Parcels of Taxable Property within CFD No. 2010-1 and determine which Land Use Category each Assessor’s Parcel should be assigned to according to Table 1 below. The Administrator shall further assign the appropriate Maintenance Category contained in Table 2 according to the estimated cost for providing Services to the Assessor’s Parcel.

TABLE 1
Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Land Use
Category Description Benefit Unit(s)
A Single Family Residential Property One (1) / Residential Unit B Multi-Family Residential Property Six tenths (0.6) / Residential Unit C Commercial Property Five (5) / Acre
D Hotel Property Five (5) / Acre
E Industrial Property Two (2) / Acre
F Religious Property Two (2) / Acre
No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2010-1, is an Exempt Property.

Item Number: 4.

City of Desert Hot Springs B-5
Community Facilities District No. 2010-1 (Services)
C. MAXIMUM SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property assigned to each Maintenance Category shall be the greater of: (i) the applicable Assigned Special Tax described in Table 2 for such Maintenance Category or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 2 is fixed and does not increase each Fiscal Year. For each Fiscal Year following the first Fiscal Year an Assessor’s Parcel is levied the applicable Assigned Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two and one half percent (2.50%), whichever is greater on each subsequent July 1 for the Fiscal Year then commencing.
b. Backup Special Tax
The Backup Special Tax shall equal the Assigned Special Tax that is applicable to an Assessor’s Parcel as determined for the current Fiscal Year the tax is calculated.

Notwithstanding the foregoing, if Assessor’s Parcels classified or to be classified as Taxable Property is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Commercial Property, Industrial Property, or Religious Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units or Acreage of Commercial Property, Industrial Property, or Religious Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Taxable Acres classified or to be classified as Commercial Property, Industrial Property, or Religious Property (i.e., the number of acres) within such Final Map.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Single Family Residential Property or Multi-Family Residential Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units of Single Family Residential Property or MultiFamily Residential Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Assessor’s Parcels classified or to be classified as Single Family Residential Property or Multi-Family Residential Property (i.e., the number of single family residential lots) within such Final Map.

For each Fiscal Year following Fiscal Year 2010-2011 the Backup Special Tax shall increase by the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, Item Number: 4.

City of Desert Hot Springs B-6
Community Facilities District No. 2010-1 (Services)
or by two and one half percent (2.50%), whichever is greater.

TABLE 2
Assigned Special Tax Rates
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Maintenance
Category
Assigned Special Tax
Rate Per Benefit Unit
1 $20.00
2 $30.00
3 $40.00
4 $50.00
5 $60.00
6 $70.00
7 $80.00
8 $90.00
9 $100.00
10 $150.00
11 $200.00
12 $250.00
13 $300.00
14 $350.00
15 $400.00
16 $450.00
17 $500.00
18 $550.00
19 $600.00
20 $650.00
21 $700.00
22 $750.00
23 $800.00
24 $850.00
25 $900.00
26 $950.00
27 $1,000.00
28 $1,250.00
29 $1,500.00
30 $2,000.00
31 $2,500.00
32 $3,000.00
33 $3,500.00
34 $4,000.00
35 $4,500.00
36 $5,000.00
Item Number: 4.

City of Desert Hot Springs B-7
Community Facilities District No. 2010-1 (Services)
TABLE 3
Assignment to Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Land Use Category Maintenance Category 666-360-017 E 36
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
For each Fiscal Year, the City shall determine the total amount of the Special Tax Requirement to be levied and collected to pay the costs of providing the Services during the Fiscal Year and shall levy the Special Tax as determined by the actual cost of providing services as shown in Exhibit A on all Assessor’s Parcels in all Land Use Categories and Maintenance Categories at the rates necessary to fully fund such costs; provided that such rates shall not exceed the Maximum Special Tax Rates for the Fiscal Year. In levying the Special Tax to fund the costs of providing the Services in each Fiscal Year, the City shall (a) determine the cost of providing the Services and the amount of the Special Tax per Benefit Unit to be levied on Assessor’s Parcels in each Maintenance Category to provide such Services; (b) levy the Special Tax on all Assessor’s Parcels in each Maintenance Category, as then applicable, based on the Benefit Units assigned to such Assessor’s Parcels depending on the Land Use Categories to which they are assigned. The amount of the Special Tax to be levied on any Assessor’s Parcel in any Fiscal Year shall be the total of the rates of Special Tax determined pursuant to clauses (a) and (b) above, to the extent that such clauses are applicable to the Assessor’s Parcel, based on the Land Use Category and Maintenance Category to which the Assessor’s Parcel is assigned and the Services which must be funded from the total amount of the Special Tax per Benefit Unit to be levied on all Assessor’s Parcels in the same Maintenance Category to fund the costs of such Services.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2010-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed will be assigned to the appropriate Maintenance Category and the appropriate Assigned Tax rate contained in Table 2.

F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the Services are being provided.

Item Number: 4.

City of Desert Hot Springs B-8
Community Facilities District No. 2010-1 (Services)
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2010-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

Notwithstanding the foregoing, the classification of Exempt Property shall not reduce the Benefit Units or Acreage to less than the amount shown in Table 4 below.

TABLE 4
Proposed Benefit Units and Acreage
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Benefit Units Acreage
666-360-017 8 4
H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2010-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2010-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Number: 4.

EXHIBIT C

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 50:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Administrative Services Director
Item Number: 4.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 50 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 2025.

OWNER NAME
Signature
Print Name
Title
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Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS DECLARING ELECTION RESULTS FOR COMMUNITY
FACILITIES DISTRICT NO. 2010-1 (SERVICES) (ANNEXATION NO. 50) WHEREAS, the City Council of the City of Desert Hot Springs (the "City") has heretofore conducted proceedings for the annexation of approximately 95 acres of land to Community Facilities District No. 2010-1 (Services) (the "CFD No. 2010-1") of the City of Desert Hot Springs, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for October 7, 2025, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2010-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot attached thereto as Exhibit A; and
WHEREAS, a Certificate of Election Results, dated October 7, 2025, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS:

Section 1. Recitals. This Council finds and determines that the foregoing recitals are true and correct.

Section 2. Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2010-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code.

Section 3. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on October 7, 2025, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2010-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2010-1 on September 2, 2025 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2010-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2010-1.

Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

(b) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2010-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit A. (c) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on October 7, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on Election Day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(d) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.

Section 4. Declaration of Results. All votes voted in the special election on the proposition of the annual levy of special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2010-1 were voted in favor thereof, and such proposition carried.

Section 5. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2010-1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2010-1 as specified in Resolution No. 2025-041 adopted by the City Council on September 2, 2025. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 50 Community Facilities District No. 2010-1 (Services)" a copy of which was recorded, on September 11 2025, in Book 97 of Maps of Assessment and Community Facilities Districts at Page(s) 25, in the office of the Riverside County Recorder.

Section 6. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2010-1 including the annexed territory.

Section 7. Effect. This resolution shall take effect from and after its adoption.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this seventh day of October 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney

Item Number: 4.

Resolution No. 2025-___
Date Adopted: October 7, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on October 7, 2025, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: October 7, 2025
Jerryl Soriano, City Clerk
[SEAL]
Item Number: 4.

EXHIBIT A

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 50:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Administrative Services Director
Item Number: 4.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 50 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

OWNER NAME
Signature
Print Name
Title
Item Number: 4.

October 7, 2025
I, Jerryl Soriano, City Clerk of Desert Hot Springs, California, hereby attest that it has been determined that there are no registered voters residing within Community Facilities District No. 2010-1 Annexation No. 50.

Sincerely,
Jerryl Soriano, City Clerk
11-999 PALM DRIVE • DESERT HOT SPRINGS • CA • 92240
(760) 329-6411• www.cityofdhs.org

CITY OF DESERT HOT SPRINGS

OFFICE OF THE CITY CLERK
Item Number: 4.

CITY OF DESERT HOT SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 50

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated ____________ 2025, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Qualified
Landowner Votes Votes Cast YES NO
Amazon.com Services LLC, a
Delaware limited liability company 95
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

Jerryl Soriano
City Clerk
City of Desert Hot Springs
By:

(Attach completed copies of Waiver/Consent and Ballots) Item Number: 4.

CITY OF DESERT HOT SPRINGS

NOTICE OF PUBLIC HEARING
Annexation of Territory to the Existing Community Facilities District No. 2010-1 (Services) – Annexation No. 50
NOTICE IS HEREBY GIVEN that the City Council of the City of Desert Hot Springs on September 2, 2025 adopted Resolution No. 2025-041, on file with the City Clerk, in which it declared its intention to annex territory to existing Community Facilities District No. 2010-1 (Services) (the "CFD No. 2010-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed, specifies the type of services to be financed, and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2010-1 is proposed. For further details, the resolution is available at the Office of the City Clerk, 11999 Palm Drive, and Desert Hot Springs, CA 92240.

NOTICE IS FURTHER GIVEN that the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard.

The Public Hearing will be held as follows:

Location: City Hall / Council Chamber
11999 Palm Drive, Desert Hot Springs, CA 92240
Date: Tuesday, October 7, 2025
Time: 6:00 P.M. (or as soon thereafter as the matter may be heard) INTERESTED PERSONS MAY appear and be heard, or written comments may be sent to the City Council prior to the hearing. Written comments may be mailed or delivered in person to:

City Clerk, City of Desert Hot Springs, 11999 Palm Drive, Desert Hot Springs, CA 92240; or via email to [email protected], prior to 4:30 p.m. on November 7, 2023.

QUESTIONS AND INQUIRIES may be addressed to Geoffrey Buchheim, Administrative Services Director, at (760) 329-6411 Ext. 227 or via Email: [email protected] /s/ Jerryl Soriano, CMC
City Clerk
Item Number: 4.

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M:\GIS-Assessment\DHS\CouncilProperties_CFD2010-1_Annex50.mxd; Map revised Sept. 12, 2019 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
LEGEND
Annex50(Northof20thAve.&WestofLittleMorongoRd.)
CityBoundary
CouncilMember'sProperty
500FootBuffer
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JP-JanPye
DV-DirkVoss
DP-DanielPitts
GG-GaryGardner
SM-ScottMatas

Item Number: 4.

SR-25-223
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 7, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Annexation No. 51 to the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) for APN 660-160-029 located west of Palm Drive and north of Paul Road
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
5) Close the Public Hearing;
6) City Council discussion and questions of Staff;
7) Adopt a Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2010-1 (Services) (Annexation No. 51)
8) Hold the election;
9) Canvass the election; and
10) Adopt a Resolution declaring election results for annexation to Community Facilities District No. 2010-1 (Services) (Annexation No. 51)
DISCUSSION:

On September 2, 2025, the City Council approved Resolution No. 2025-042 declaring its intention to annex territory to Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs (the "CFD No. 2010-1" or "District") and commence the annexation proceedings for the property for the purpose of levying special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed upon the City. A public hearing on this matter was scheduled for October 7, 2025. The City Council will conduct a public hearing regarding the annexation of approximately 3.9 acres of land to Community Facilities District No. 2010-1 (Services). This parcel is currently being developed. At the conclusion of the public hearing, the Council will consider adopting a resolution scheduling a special election within the territory to be annexed to the community facilities district on the question of the annual levy of special taxes on the annexing property to pay the costs of maintenance services financed by CFD No. 2010-

1. The resolution schedules the special election on October 7, 2025, immediately following the public hearing.

Item Number: 5.

SR-25-223
The services as described above may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the California Government Code. The existing and new development of residential and non-residential properties does not provide sufficient revenues to provide landscape maintenance and lighting services. The City formed CFD No. 2010-1 (Services) to address this shortfall and to provide certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property. Special Tax rates are based on District costs, maintenance category, as well as land use category. These Special Tax rates are applied on a Benefit Unit basis determined by the property's Land Use Category which are one (1) BU per single-family residential unit, six tenths (0.6) BU per multi-family unit, five (5) BUs per acre for commercial and hotel property, and two (2) BUs per acre for industrial and religious property. To accommodate the unknown maintenance costs of future projects, properties are assigned Maintenance Categories with a rate per BU for providing services to those parcels. There are 36 Maintenance Categories included in the Rate and Method of Apportionment. These 36 Maintenance Categories range from $20.00 to $5,000 per BU which is determined by their Land Use Category.

After a Maintenance Category has been assigned, the Special Tax levied adjusts annually by the greater of the Consumer Price Index or two- and one-half percent at the beginning of each following fiscal year. The City can levy less than the maximum annual special tax if the full amount is not needed, but never more. Maintenance Category assignments can be seen in Exhibit B of the attached resolution calling an election. The proposed annexation to the District consists of approximately 3.9 acres.

The proposed special taxes for the properties included in this annexation for Fiscal Year 2025-26 is a maximum of $5,000 per BU and may increase annually by the greater of the Consumer Price Index or two- and one-half percent.

This fifty-first annexation to the District will increase CFD No. 2010-1 by one parcel, 3.9 nonresidential acres.

The property owner(s) requesting the annexation of its property to the community facilities district has delivered to the City Clerk a written waiver consenting to the special election being conducted by the City Clerk by October 7, 2025.

Immediately following the adoption of the resolution calling the election, the property owner will deliver a voted Official Ballot(s) to the City Clerk. The City Clerk will then canvass the voted ballot and report the results of the election to the Council. The Council will then consider the adoption of the resolution declaring the results of the election, which will complete the annexation of the property to the community facilities district.

FISCAL IMPACT:

Currently, existing and new developments generate insufficient General Fund revenues to pay for the General Fund expenses of serving the area. The District provides the City additional funding for a portion of landscape maintenance, lighting, and drainage basin service costs (i.e. landscaping, lighting, and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space). A portion of the operations funding will be derived from alternative funding sources including other special districts and the City's General Fund.

All costs associated with the annexation to the CFD No. 2010-1 are to be paid for by the property owners/developers who are participating in the annexation to the CFD No. 2010-1 through an Item Number: 5.

SR-25-223
application fee of $5,000. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) Recorded Boundary Map Annex No. 51
2) Resolution Calling an Election
3) Petition Waiver Consent
4) Resolution Declaring Election Results
5) Letter From City Clerk Attesting No Registered Voters 6) Certificate Declaring Election Results
7) Public Hearing Notice
8) Council Properties Map CFD 2010-1 Annex 51
Item Number: 5.

L

THIS MAP SHOWS THE BOUNDARIESOF AREAS TO BE
ANNEXEDTO COMMUNITYFACILITIESDISTRICT NO.
2010-1 (SERVICES)OF THE CITY OF DESERT HOT

SPRINGS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.THE BOUNDARIESOFWHICH COMMUNITY

FACILITIES DISTRICT ARE SHOWN AND DESCRIBED

ON THEMAP THEREOF WHICH WAS PREVIOUSLY
RECORDEDON JUNE8, 2010, IN BOOK74 OF MAPSOF

ASSESSMENTANDCOMMUNITYFACILITIESDISTRICTS
AT PAGE 81 AND AS INSTRUMENTNO. 2010-0263725,

IN THE OFFICE OF THE COUNTYRECORDEROF THE
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA.

I HEREBYCERTIFYTHAT THE WITHIN MAP OR AREAS

TO BE ANNEXED TO COMMUNITY FACILITIES
DISTRICT NO. 2010-1 (SERVICES) OF THE CITY OF

DESERTHOT SPRINGS,COUNTYOF RIVERSIDE,STATE

OF CALIFORNIA, WAS APPROVEDBYTHECITYCOUNCIL
OF THE C1TYOF DESERTHOT SPRINGSAT A REGULAR
MEETINGTHEREOF,HELDON THE 2nd DAYOF
SEPTEMBER 20g , BY ITS RESOLUTION
NO. 2025' 942 .
. W
ERK

CITYOF DESERTHOT SPRINGS
W

NOT TO SCALE
ANNEXATION MAP NO. 51
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
C' i

DILLON RD
660-160-029
THIS ANNBO‘ITIONMAP CORRECTLYSHOWS THE LOT OR PARCEL
OF LANDINCLUDEDWITHINTHEBOUNDARIESOF THECOMMUNITY Webb FACILITIESDISTRICT FOR DETAILSCONCERNINGTHELINESAND name-m c DIMENSIONSOF LOTS 0R PARCELS REFER TO THE COUNTY ASSESSOR'SMAPS FOR FISCALYEAR2025-2026.
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XXX-XXX-XXX
SHEET 1 OF 1 SHEET
RECORDED THIS _LI'_“DAY OF seghmbw ,
2015, AT THE HOUROF $55 O'CLOCKAM, IN
IN BOOK91 PAGE2; OF MAPSOF ASSESSMENT

AND COMMUNITYFACILITIESDISTRICTS IN THE

OFFICE OF THE COUNTY RECORDER,IN THE
COUNTYOF RIVERSIDE,STATE OF CALIFORNIA.

FEE:__S°I__ N0.: 2 s-ontmoe;

PETER ALDANA, ASSESSOR, COUNTY CLERK,

RECORDER
BY:
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DEPUTY

FILED IN THE OFFICE OF THE CITY CLERK,
CITY OF DESERT HOT SPRINGS, THIS 2nd
DAY OFS‘PTEMBEP, 20g .
5"

ITY OF DESERT HOT SPRINGS

CFD BOUNDARY

PARCEL LINE

PARCEL IDENTIFICATIONNUMBER
M:IGIS-AssessmentlDHSlBoundary_CFDZ 01 0-1_Annex51.mxd

Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL

TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
(ANNEXATION NO. 51)
WHEREAS, on July 6, 2010 the City Council of the City of Desert Hot Springs (the “City”) approved Resolution No. 2010-037 establishing Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, County of Riverside, State of California (the "CFD No. 2010-1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property; and
WHEREAS, the City Council called a special election for July 6, 2010, at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2010-1 were submitted to the qualified electors within the CFD No. 2010-1; and
WHEREAS, on July 6, 2010, the City Council adopted Resolution No. 2010-038 determining the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on September 2, 2025, duly adopted Resolution No. 2025-042 (the “Resolution of Intention”) declaring its intention to annex certain territory to Community Facilities District No. 2010-1 (Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for October 7, 2025.

WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 51 Community Facilities District No. 2010-1 (Services)" a copy of which was recorded, on September 11, 2025, in Book 97 of Maps of Assessment and Community Facilities Districts at Page(s) 26, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on October 7, 2025, not earlier than the hour of 6:00 p.m. at the City Council Chambers located at 11-999 Palm Drive, Desert Hot Springs, California 92240, relative to the proposed annexation of said territory to CFD No. 2010-1; and
WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2010-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2010-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2010-1 and that the qualified electors in such territory are the landowners; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2010-1 and the levying of a special tax as described in Exhibit B hereto; and
Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2010-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred in the election date set forth herein.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2010-1 (SERVICES) OF THE CITY OF DESERT HOT SPRINGS, DETERMINE AND ORDER AS FOLLOWS:

Section 1 Recitals. The foregoing recitals are true and correct.

Section 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2010-1 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.

Section 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to CFD No. 2010-1 are valid and in conformity with the requirements of the Act.

Section 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2010-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2010-1, will be levied annually in CFD No. 2010-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto.

Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

Section 7. Tax Roll Preparation. The office of the Finance Director, 11-999 Palm Drive, City of Desert Hot Springs, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Finance Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

Section 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Finance Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2010-1.

Section 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on October 7, 2025, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

the boundaries of CFD No. 2010-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2010-1 on September 2, 2025, (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2010-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2010-1. (b) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2010-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. (c) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on October 7, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the Election Day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(d) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.
(e) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

Section 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2010-1 in his/her office.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this seventh day of October 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on October 7, 2025, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: October 7, 2025
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 5.

EXHIBIT A

DESCRIPTION OF SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2010-1, as provided by Section 53313 of the Act, are the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of storm drainage and flood protection facilities, including, without limitation, drainage inlets and retention basins.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention.

The above services shall be limited to those provided within the boundaries of CFD No. 2010-1 or for the benefit of the properties within the boundaries of CFD No. 2010-1, as the boundary is expanded from time to time by anticipated annexations and said services may be financed by proceeds of the special tax of CFD No. 2010-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2010-1 before CFD No. 2010-1 was created.

Item Number: 5.

City of Desert Hot Springs B-1
Community Facilities District No. 2010-1 (Services)

EXHIBIT B

RATES AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)

OF THE CITY OF DESERT HOT SPRINGS
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2010-1 (Services), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2010, in an amount determined by the City Council of the City of Desert Hot Springs, acting ex officio as the legislative body of CFD No. 2010-1, by applying the rates and method of apportionment set forth below. All of the real property in CFD No. 2010-1, unless exempted by law or by the provisions herein, shall be taxed for the purposes, to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax Requirement which are incurred by the City on behalf of CFD No. 2010-1 related to the determination of the amount of the levy of Special Tax, the collection of Special Tax including the expenses of collecting delinquencies, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of CFD No. 2010-1, and costs otherwise incurred in order to carry out the authorized purposes relating to CFD No. 2010-1.
“Administrator” means the City of Desert Hot Springs City Manager of the City, or his or her designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below.

Item Number: 5.

City of Desert Hot Springs B-2
Community Facilities District No. 2010-1 (Services)
“Benefit Unit” means a single-family residential lot or dwelling unit or the equivalent.

Single Family Property is assigned benefit units based on the number of Residential Units per Assessor’s Parcel with the basis being one (1) benefit unit per Residential Unit. MultiFamily Residential Property is assigned 60 percent of one benefit unit, or six-tenths (0.6) benefit units, per Residential Unit. Commercial Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Hotel Property is assigned benefit units based on acreage with the basis being five (5) benefit units per acre. Industrial Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.

Religious Property is assigned benefit units based on acreage with the basis being two (2) benefit units per acre.
“CFD” or “CFD No. 2010-1” means the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services).
“City” has the meaning set forth in the preamble.
“Commercial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a commercial establishment which includes, but is not limited to, retail stores, clothing stores, book stores, video rental stores, drug stores, professional services (i.e., barber shops, dry cleaners), restaurants, supermarkets, hospitals, movie theaters, appliance and electronic stores, home supply stores, auto parts stores, and other businesses providing auto-related products and services. The Administrator shall make the determination if an Assessor’s Parcel is Commercial Property. “County” means the County of Riverside
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Hotel Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for a structure that constitutes a place of lodging providing sleeping accommodations and related facilities for travelers. The Administrator shall make the determination if an Assessor’s Parcel is Hotel Property. “Industrial Property” means, in any Fiscal Year, any Assessor’s Parcel for which a building permit or use permit has been issued for construction of an industrial, manufacturing, or warehousing structure. The Administrator shall make the determination if an Assessor’s Parcel is Industrial Property.

Item Number: 5.

City of Desert Hot Springs B-3
Community Facilities District No. 2010-1 (Services)
“Land Use Category” means any of the categories contained in Table 1 hereof to which a Parcel is assigned consistent with the land use approvals that have been received or proposed for the Parcel as of March 1 preceding the beginning of a Fiscal Year. “Maintenance Category” means any of the categories listed in Table 2 hereof to which an Assessor’s Parcel is assigned consistent with the rate per Benefit Unit for providing Services to said Assessor’s Parcel as determined by the Administrator. “Maximum Special Tax Rate(s)” means the Maximum Special Tax for each Land Use Category of Taxable Property, as determined in accordance with Section C., below. “Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units available for rental, but not purchase, by the general public and under common management. “Religious Property” means any Assessor’s Parcel used as a place of worship or for other religious activities. The Administrator shall make the determination if an Assessor’s Parcel is Religious Property.
“Residential Unit” means, for each Fiscal Year, a building or portion thereof on an Assessor’s Parcel intended for use by one (1) family and containing but one (1) kitchen, which is designed primarily for residential occupancy including single family and multifamily dwellings. Residential Unit shall not include hotels or motels which shall be classified as Hotel Property.
“Services” means those services authorized to be funded by CFD No. 2010-1 as set forth in the documents adopted by the City Council when the CFD was formed. “Single Family Residential Property” means any residential property that consists of a building comprised of attached or detached residential units available for purchase or rent by the general public.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2010-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for Bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2010-1, which are not Exempt Property.

Item Number: 5.

City of Desert Hot Springs B-4
Community Facilities District No. 2010-1 (Services)
B. ASSIGNMENT TO LAND USE AND MAINTENANCE CATEGORY
The Special Tax shall be levied annually upon each Assessor’s Parcel of Taxable Property for each Fiscal Year according to the Land Use Category and Maintenance Category assigned. Each Fiscal Year the Administrator shall identify the current Assessor’s Parcel Number assigned to all Assessor’s Parcels of Taxable Property within CFD No. 2010-1 and determine which Land Use Category each Assessor’s Parcel should be assigned to according to Table 1 below. The Administrator shall further assign the appropriate Maintenance Category contained in Table 2 according to the estimated cost for providing Services to the Assessor’s Parcel.

TABLE 1
Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Land Use
Category Description Benefit Unit(s)
A Single Family Residential Property One (1) / Residential Unit B Multi-Family Residential Property Six tenths (0.6) / Residential Unit C Commercial Property Five (5) / Acre
D Hotel Property Five (5) / Acre
E Industrial Property Two (2) / Acre
F Religious Property Two (2) / Acre
No Special Tax shall be levied on property which, at the time of adoption of the Resolution of Formation for CFD No. 2010-1, is an Exempt Property.

Item Number: 5.

City of Desert Hot Springs B-5
Community Facilities District No. 2010-1 (Services)
C. MAXIMUM SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property assigned to each Maintenance Category shall be the greater of: (i) the applicable Assigned Special Tax described in Table 2 for such Maintenance Category or (ii) the amount derived by application of the Backup Special Tax.
a. Assigned Special Tax
The Assigned Special Tax for each Assessor’s Parcel of Taxable Property is shown in Table 2 is fixed and does not increase each Fiscal Year. For each Fiscal Year following the first Fiscal Year an Assessor’s Parcel is levied the applicable Assigned Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two and one half percent (2.50%), whichever is greater on each subsequent July 1 for the Fiscal Year then commencing.
b. Backup Special Tax
The Backup Special Tax shall equal the Assigned Special Tax that is applicable to an Assessor’s Parcel as determined for the current Fiscal Year the tax is calculated.

Notwithstanding the foregoing, if Assessor’s Parcels classified or to be classified as Taxable Property is subsequently changed or modified by recordation of a lot line adjustment or similar instrument, then the Backup Special Tax shall be recalculated for the area that has been changed or modified.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Commercial Property, Industrial Property, or Religious Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units or Acreage of Commercial Property, Industrial Property, or Religious Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Taxable Acres classified or to be classified as Commercial Property, Industrial Property, or Religious Property (i.e., the number of acres) within such Final Map.

When a Final Map is recorded, the Backup Special Tax for an Assessor’s Parcel classified or to be classified as Single Family Residential Property or Multi-Family Residential Property within such Final Map shall be determined by multiplying the Assigned Special Tax rate per Benefit Unit by the Proposed Benefit Units of Single Family Residential Property or MultiFamily Residential Property described in Table 4 of Section G., in such Final Map and dividing such amount by the number of Assessor’s Parcels classified or to be classified as Single Family Residential Property or Multi-Family Residential Property (i.e., the number of single family residential lots) within such Final Map.

For each Fiscal Year following Fiscal Year 2010-2011 the Backup Special Tax shall increase by the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, Item Number: 5.

City of Desert Hot Springs B-6
Community Facilities District No. 2010-1 (Services)
or by two and one half percent (2.50%), whichever is greater.

TABLE 2
Assigned Special Tax Rates
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Maintenance
Category
Assigned Special Tax
Rate Per Benefit Unit
1 $20.00
2 $30.00
3 $40.00
4 $50.00
5 $60.00
6 $70.00
7 $80.00
8 $90.00
9 $100.00
10 $150.00
11 $200.00
12 $250.00
13 $300.00
14 $350.00
15 $400.00
16 $450.00
17 $500.00
18 $550.00
19 $600.00
20 $650.00
21 $700.00
22 $750.00
23 $800.00
24 $850.00
25 $900.00
26 $950.00
27 $1,000.00
28 $1,250.00
29 $1,500.00
30 $2,000.00
31 $2,500.00
32 $3,000.00
33 $3,500.00
34 $4,000.00
35 $4,500.00
36 $5,000.00
Item Number: 5.

City of Desert Hot Springs B-7
Community Facilities District No. 2010-1 (Services)
TABLE 3
Assignment to Land Use Category
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Land Use Category Maintenance Category 666-360-017 E 36
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
For each Fiscal Year, the City shall determine the total amount of the Special Tax Requirement to be levied and collected to pay the costs of providing the Services during the Fiscal Year and shall levy the Special Tax as determined by the actual cost of providing services as shown in Exhibit A on all Assessor’s Parcels in all Land Use Categories and Maintenance Categories at the rates necessary to fully fund such costs; provided that such rates shall not exceed the Maximum Special Tax Rates for the Fiscal Year. In levying the Special Tax to fund the costs of providing the Services in each Fiscal Year, the City shall (a) determine the cost of providing the Services and the amount of the Special Tax per Benefit Unit to be levied on Assessor’s Parcels in each Maintenance Category to provide such Services; (b) levy the Special Tax on all Assessor’s Parcels in each Maintenance Category, as then applicable, based on the Benefit Units assigned to such Assessor’s Parcels depending on the Land Use Categories to which they are assigned. The amount of the Special Tax to be levied on any Assessor’s Parcel in any Fiscal Year shall be the total of the rates of Special Tax determined pursuant to clauses (a) and (b) above, to the extent that such clauses are applicable to the Assessor’s Parcel, based on the Land Use Category and Maintenance Category to which the Assessor’s Parcel is assigned and the Services which must be funded from the total amount of the Special Tax per Benefit Unit to be levied on all Assessor’s Parcels in the same Maintenance Category to fund the costs of such Services.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2010-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed will be assigned to the appropriate Maintenance Category and the appropriate Assigned Tax rate contained in Table 2.

F. TERM OF SPECIAL TAX
For each Fiscal Year, the Special Tax shall be levied in perpetuity as long as the Services are being provided.

Item Number: 5.

City of Desert Hot Springs B-8
Community Facilities District No. 2010-1 (Services)
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2010-1, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

Notwithstanding the foregoing, the classification of Exempt Property shall not reduce the Benefit Units or Acreage to less than the amount shown in Table 4 below.

TABLE 4
Proposed Benefit Units and Acreage
Community Facilities District No. 2010-1 (Services)
City of Desert Hot Springs, California
Assessor Parcel No. Benefit Units Acreage
666-360-017 8 4
H. APPEALS
Any property owner claiming that the amount or application of the Special Tax is not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2010-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2010-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Number: 5.

EXHIBIT C

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 51:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Administrative Services Director
Item Number: 5.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 51 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 2025.

OWNER NAME
Signature
Print Name
Title
Item Number: 5.

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Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

RESOLUTION NO. 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT

HOT SPRINGS DECLARING ELECTION RESULTS FOR COMMUNITY
FACILITIES DISTRICT NO. 2010-1 (SERVICES) (ANNEXATION NO. 51) WHEREAS, the City Council of the City of Desert Hot Springs (the "City") has heretofore conducted proceedings for the annexation of approximately 4 acres of land to Community Facilities District No. 2010- 1 (Services) (the "CFD No. 2010-1") of the City of Desert Hot Springs, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for October 7, 2025, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2010-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot attached thereto as Exhibit A; and
WHEREAS, a Certificate of Election Results, dated October 7, 2025, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS:

Section 1. Recitals. This Council finds and determines that the foregoing recitals are true and correct.

Section 2. Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2010-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code.

Section 3. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on October 7, 2025, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2010-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2010-1 on September 2, 2025 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2010-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2010-1.

Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

(b) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2010-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit A. (c) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on October 7, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on Election Day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(d) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.

Section 4. Declaration of Results. All votes voted in the special election on the proposition of the annual levy of special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2010-1 were voted in favor thereof, and such proposition carried.

Section 5. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2010-1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2010-1 as specified in Resolution No. 2025-042 adopted by the City Council on September 2, 2025. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 51 Community Facilities District No. 2010-1 (Services)" a copy of which was recorded, on September 11, 2025, in Book 97 of Maps of Assessment and Community Facilities Districts at Page(s) 26, in the office of the Riverside County Recorder.

Section 6. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2010-1 including the annexed territory.

Section 7. Effect. This resolution shall take effect from and after its adoption.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this seventh day of October 2025 by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney

Item Number: 5.

Resolution No. 2025-___
Date Adopted: October 7, 2025

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on October 7, 2025, of which meeting all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11-999 Palm Drive, Desert Hot Springs, 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: October 7, 2025
Jerryl Soriano, City Clerk
[SEAL]
Item Number: 5.

EXHIBIT A

SPECIAL TAX ELECTION

CITY OF DESERT HOT SPRINGS

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
(October 7, 2025)
This ballot is for the use of the authorized representative of the following owner of land within the City of Desert Hot Springs Community Facilities District No. 2010-1 (Services) (“CFD No. 2010-1”) Annexation No. 51:

Name of Landowner Number of Acres Owned Total Votes
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Desert Hot Springs (the “City”), the abovenamed landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcel identified below, which parcel is located within the territory proposed to be annexed to the CFD No. 2010-1, City of Desert Hot Springs, County of Riverside, State of California. Please advise the City Clerk, at (760) 329-6411 – Ext. 107, if the name set forth below is incorrect or if you are no longer one of the owners of this parcel. This special tax ballot may be used to express either support for, or opposition to, the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail in an adequate amount of time so that the City Clerk receives the signed ballot no later than October 7, 2025, the date set for the election.

Personal
Delivery: If in person, deliver to the City Clerk’s office (11-999 Palm Drive, Desert Hot Springs, 92240) any time before 4:00 p.m. on October 7, 2025. If after 4:00 p.m., please deliver to the City Clerk, at the City Council Chambers (11-999 Palm Drive, Desert Hot Springs, 92240) no later than 6:00 p.m.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on October 7, 2025.

Very truly yours,
Geoffrey Buchheim
Geoffrey Buchheim
Administrative Services Director
Item Number: 5.

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE
MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Desert Hot Springs be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex Territory to Community Facilities District No. 2010-1 (Services) adopted by the City Council on September 2, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 51 of Community Facilities District No. 2010-1 (Services) City of Desert Hot Springs, County of Riverside,” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses)? YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

OWNER NAME
Signature
Print Name
Title
Item Number: 5.

October 7, 2025
I, Jerryl Soriano, City Clerk of Desert Hot Springs, California, hereby attest that it has been determined that there are no registered voters residing within Community Facilities District No. 2010-1 Annexation No. 51.

Sincerely,
Jerryl Soriano, City Clerk
11-999 PALM DRIVE • DESERT HOT SPRINGS • CA • 92240
(760) 329-6411• www.cityofdhs.org

CITY OF DESERT HOT SPRINGS

OFFICE OF THE CITY CLERK
Item Number: 5.

CITY OF DESERT HOT SPRINGS
COMMUNITY FACILITIES DISTRICT NO. 2010-1 (SERVICES)
ANNEXATION NO. 51

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated ____________ 2025, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Qualified
Landowner Votes Votes Cast YES NO
TKC Desert Hot Springs, LLC,
an Arizona limited liability company
4 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

Jerryl Soriano
City Clerk
City of Desert Hot Springs
By:

(Attach completed copies of Waiver/Consent and Ballots) Item Number: 5.

CITY OF DESERT HOT SPRINGS

NOTICE OF PUBLIC HEARING
Annexation of Territory to the Existing Community Facilities District No. 2010-1 (Services) – Annexation No. 51
NOTICE IS HEREBY GIVEN that the City Council of the City of Desert Hot Springs on September 2, 2025 adopted Resolution No. 2025-042, on file with the City Clerk, in which it declared its intention to annex territory to existing Community Facilities District No. 2010-1 (Services) (the "CFD No. 2010-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed, specifies the type of services to be financed, and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2010-1 is proposed. For further details, the resolution is available at the Office of the City Clerk, 11999 Palm Drive, and Desert Hot Springs, CA 92240.

NOTICE IS FURTHER GIVEN that the City Council will conduct a public hearing on the proposed annexation of said territory to the CFD No. 2010-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard.

The Public Hearing will be held as follows:

Location: City Hall / Council Chamber
11999 Palm Drive, Desert Hot Springs, CA 92240
Date: Tuesday, October 7, 2025
Time: 6:00 P.M. (or as soon thereafter as the matter may be heard) INTERESTED PERSONS MAY appear and be heard, or written comments may be sent to the City Council prior to the hearing. Written comments may be mailed or delivered in person to:

City Clerk, City of Desert Hot Springs, 11999 Palm Drive, Desert Hot Springs, CA 92240; or via email to [email protected], prior to 4:30 p.m. on November 7, 2023.

QUESTIONS AND INQUIRIES may be addressed to Geoffrey Buchheim, Administrative Services Director, at (760) 329-6411 Ext. 227 or via Email: [email protected] /s/ Jerryl Soriano, CMC
City Clerk
Item Number: 5.

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FD2010-1Annexation51
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CITYOFDESERTHOTSPRINGS
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CityBoundary
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Item Number: 5.

SR-25-224
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 7, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Creating Special Tax Area 56 for Property (Amazon.com Services, LLC) for APN 666-370-039 located west of Little Morongo Road and north of 20th Street, to the Desert Hot Springs Special Public Safety Tax Area RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
5) Close the Public Hearing;
6) City Council discussion and questions of Staff;
7) Hold the election;
8) Canvass the election; and
9)Adopt an Ordinance Establishing a Special Public Safety Tax Area Zone 56 (Amazon.com Services, LLC).

BACKGROUND:

On September 2, 2025, the City Council adopted a Resolution Creating Special Tax Area Zone 56 (Amazon.com Services, LLC), Resolution No. 2025-043, within the Desert Hot Springs Special Public Safety Tax Area.

The Public Safety Tax Area Zone 56 (Amazon.com Services, LLC) is currently comprised of 94.91 acres of non-residential land, Assessor’s Parcel Number 666-370-039. This property is located west of Little Morongo Road and north of 20th Street.

It is anticipated that the Special Taxes levied by the District will provide funding for services and incidental expenses in connection with said services.

DISCUSSION:

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high-quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments, it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate highquality public safety services unless additional revenues are obtained.

Item Number: 6.

SR-25-224
It is the purpose and intent of this Ordinance to generate additional funds to pay for police and fire protection services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 56 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 56 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the residents of Zone 56.

FISCAL IMPACT:

The applicant has paid a deposit of $5,000, which covers the costs of establishing the zone. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for police and fire maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) Ordinance for Zone 56
2) PTAX2 Zone 56 Site Map
3) Certificate re Election Results - PTAX2 (Zone 56)
4) City Clerk Letter Attesting No Registered Voters
5) Council Properties Map PTAX2 Zone 56
Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

ORDINANCE NO. 2025-___

AN ORDINANCE OF THE CITY OF DESERT HOT SPRINGS

ESTABLISHING A SPECIAL PUBLIC SAFETY TAX FOR POLICE AND

FIRE PROTECTION SERVICES SUBJECT TO VOTER APPROVAL OF

THE VOTERS OF THE DESERT HOT SPRINGS PUBLIC SAFETY TAX
AREA ZONE 56 (AMAZON.COM SERVICES, LLC)
THE VOTERS OF ZONE 56 OF THE DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX AREA DO ORDAIN AS FOLLOWS:

Section 1. Purpose, Intent and Authority.

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high-quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments, it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate high-quality public safety services unless additional revenues are obtained.

It is the purpose and intent of this Ordinance to generate additional funds to pay for police and fire protection services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 56 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 56 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

This tax is a special tax within the meaning of Section 4 of Article XIIIA of the California Constitution. Because the burden of this tax falls upon property, this tax also is a property tax, but this tax is not determined according to nor in any manner based upon the value of property; this tax is levied on a parcel and use of property basis. Insofar as not inconsistent with this Ordinance or with legislation authorizing special taxes and insofar as applicable to a property tax that is not based on value, such provisions of the California Revenue and Taxation Code and of Article XIII of the California Constitution as relate to ad valorem property taxes are intended to apply to the collection and administration of this tax (Section 4 of this Ordinance), as authorized by law. This tax is not an ad valorem property tax; it is an excise tax on the use of property. Because the revenue from the tax may be used only to fund public safety services, it is also a special tax.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the property owner(s) of Zone 56.

This Ordinance is enacted pursuant to the authority of Government Code Section 54978 and is in compliance with that law and all others applicable to the tax. At the time that the Council submitted this Ordinance to the voters of Zone 56, there were 0 registered voters residing there is one property owner.

Because the Special Public Safety Tax will be imposed on property in Zone 56 and paid by the owners of the property, the Council finds that restricting the vote on the Special Public Safety Tax to property owners in Zone 56 is appropriate and consistent with the principles and requirements of California Constitution Article XIIIC (Proposition 218).

Section 2. Definitions.

The following definitions shall apply throughout this Ordinance.

A. “Animal control services” means services directed toward maintaining a safe and stray-free community, including but not limited to the enforcement of applicable State and City laws and citing of Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

B. violators; kennel operation and maintenance services; care for impounded animals and adoption services; pick-up of stray animals; issuing and recording dog licenses; investigating animal abuse; handling endangered species; removing wild animals and reptiles from the community; and administrative costs related to those activities.

C. “Code enforcement services” means services directed toward the enforcement of provisions of the Desert Hot Springs Municipal Code related to public nuisances, including but not limited to zoning, signs, land use, and property maintenance violations; business licensing; removal of abandoned vehicles; and administrative costs related to those activities.

D. “Constant first year dollars” shall mean an actual dollar amount which, in years subsequent to the first fiscal year the tax is levied, shall have the same purchasing price as the base amount in first fiscal year dollars as measured by the Consumer Price Index. The base amount shall be the amount of tax per parcel as specified in Section 3(A) herein. The adjustments from actual to constant dollars shall be made by use of the Consumer Price Index, as specified in Section 3(B) herein.

E. “Consumer Price Index” means the Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario in the month of March as published by the U.S. Department of Labor, Bureau of Labor Statistics. If the Consumer Price Index is discontinued or revised, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Consumer Price Index had not been discontinued or revised.

F. “Fiscal year” means the period of July 1 through the following June 30.

G. “Desert Hot Springs Special Public Safety Tax Area” means all the properties within the jurisdictional limits of the City of Desert Hot Springs.

H. “Desert Hot Springs Special Public Safety Tax Area Zone 56” (the “Zone”) means that portion of the incorporated area of the City of Desert Hot Springs located within the boundaries described in Exhibit A hereto and as shown on the map Exhibit B hereto.

I. “Fire protection services” means the services provided by the Riverside County Fire Department pursuant to A Cooperative Agreement to Provide Fire Protection, Fire Prevention, Rescue and Medical Aid for the City of Desert Hot Springs, or any successor agreement, entered into by and between the City and Riverside County Fire Department, or another public agency, and the administrative costs directly related to those activities.

J. “Parcel” means the land and any improvements thereon, designated by an assessor’s parcel map and parcel number and carried on the secured property tax roll of Riverside County. For the purposes of this Ordinance, parcel does not include any land or improvements outside the boundaries of the Zone nor any land or improvements owned by any governmental entity.

K. “Police protection services” means services protecting the safety of the citizens of the City through the maintenance of law and order, including but not limited to the enforcement of criminal, civil, and vehicular laws and provisions of the Desert Hot Springs Municipal Code; services to enhance the quality of life, environment, and safety of the citizens of the City; services responding to calls for police assistance; services in cooperation with other City departments, including code enforcement and animal administrative costs directly related to those activities.

L. “Public safety services” means police protection, fire protection, code enforcement, and animal control services.

M. Pursuant to Government Code §54978, “voter” means a person owning real property within the Zone at the time this Ordinance was adopted, as shown on the last equalized assessment roll prepared by the Riverside County Assessor’s Office.

Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

Section 3. Amount and Level of Taxes. The tax per year on each parcel in the Zone shall not exceed the amount applicable to the parcel, as specified below.

A. For First Fiscal Year:

The tax per year for the first fiscal year (July 1, 2025, through June 30, 2026) shall be the amount of Tax per Parcel for a Property Use Code Category as set forth in Exhibit C hereto. The use code assigned to each parcel shall be reviewed and updated periodically.

B. For Subsequent Fiscal Year:

In order to keep the tax on each parcel in constant first year dollars for each fiscal year subsequent to the first fiscal year, the tax per year shall be adjusted as set forth below to reflect any increase in the Consumer Price Index beyond the first fiscal year the tax is levied.

For each Property Use Category on Exhibit C, the tax per year on each parcel for each fiscal year subsequent to the first fiscal year shall be an amount determined as follows:

Tax Per Parcel
For the Current
Fiscal Year =
Tax Per Parcel
For Preceding
Fiscal Year X
Consumer Price Index
for April of immediately
Preceding Fiscal Year
OR 1.03, whichever is less
Provided, however, that in no event shall the tax per parcel for any fiscal year be less than the amount established for the first fiscal year.

C. Nature of Tax Levy.

The taxes levied on each parcel pursuant to this Article shall be a charge upon the parcel and shall be due and collectible as set forth in Section 4, below.

D. Reduction of Tax for Parcels Subject to Existing Public Safety Parcel Tax.

The tax imposed on any parcel in Zone 56 shall not be reduced by the amount of tax imposed on that parcel pursuant to Ordinance No. 517 (codified as §§ 35.150 et seq. of the Desert Hot Springs Municipal Code). The tax imposed on any parcel in Zone 56 pursuant to this ordinance shall be the full amount set forth in Exhibit C, adjusted for inflation as provided for in Section 3(B).

Section 4. Collection and Administration.

A. Taxes as Liens Against the Property.

The amount of taxes for each parcel each year shall constitute a lien on such property, in accordance with Revenue and Taxation Code Section 2187, and shall have the same effect as an ad valorem real property tax lien until fully paid.

B. Collection.

The taxes on each parcel shall be billed on the secured roll tax bills for ad valorem property taxes and are to be collected in the same manner in which Riverside County collects secured roll ad valorem property taxes. Insofar as feasible and insofar as not inconsistent with this Ordinance, the times and procedures regarding exceptions, due dates, installment payments, corrections, cancellations, refunds, late payments, penalties, liens, and collections for secured roll ad valorem property taxes (as established by Riverside County) shall be applicable to the collection of this tax. Notwithstanding anything to the contrary in the foregoing, as to this tax:

Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

1. The secured roll tax bills shall be the only notices required for this tax, and

2. The homeowners and veterans exemptions shall not be applicable because such exemptions are determined by dollar amount of value.

C. Costs of Administration by County.

The reasonable costs incurred by the County officers collecting and administering this tax shall be deducted from the collected taxes.

D. Use of Tax Revenue.

The revenue collected from the tax imposed by this ordinance shall be placed into a separate account and may be used only to fund public safety services, including the costs of administering and collecting the tax and enforcing the provisions of this ordinance. Revenue from the tax may be used for public safety services citywide.

E. Refunds.

1. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City pursuant to this ordinance, it may be refunded as provided in this Section.

2. No refund may be made except upon a written claim verified by the person who paid the tax or by his or her guardian or conservator or the executor or administrator of his or her will or estate and stating the grounds upon which the claim is made. All claims filed pursuant to this subsection must be presented within one year after payment of the amount for which the claimant is seeking a refund.

3. No order of a refund may be made until a written claim therefore has been presented in accordance with this subsection. No suit for money, damages or a refund may be brought against the City until a written claim therefore has been presented to the City and has been acted upon or has been deemed rejected by the City, in accordance with this subsection. Only the person who filed the claim may bring such a suit, and if another person should do so, judgment shall not be rendered for the plaintiff.

F. Initiatives to Affect Tax.

Consistent with the California Constitution (art. XIIIC, §3) the tax imposed by this ordinance may be affected by initiative. The procedures for qualification of such an initiative and the election on a qualified initiative shall be consistent with the California Constitution (art. 2, sec. 8), the California Elections Code (Chapter 3 of Division 9), and the Municipal Code. The minimum number of signatures necessary to qualify an initiative to affect the tax approved by this ordinance shall be equal to 5 percent of the votes in the City for all candidates for Governor at the last gubernatorial election. The election on a qualified initiative to affect the tax shall be a regular citywide election. An initiative affecting the tax shall be approved only if at least two-thirds of the votes cast on the measure are in favor of its approval.

Section 5. Severability Clause.

If any article section, subsection, sentence, phrase of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance.

The voters of the Zone hereby declare that they would have adopted the remainder of this Ordinance, including each article, section, subsection, sentenced phrase or clause, irrespective of the invalidity of any other article, section, subsection, sentence, phrase or clause.

Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

Section 6. Effective Date and Posting.

A. Canvass of Election.

The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office.

At the conclusion of the canvass, the City Clerk shall certify the results of the election.

B. Effective Date
This Ordinance shall take effect immediately upon its approval by two-thirds of the voters voting within the Zone in an election to be held on October 7, 2025, so that taxes shall first be collected hereunder for the tax year beginning July 1, 2026.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
.

Item Number: 6.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

APPROVED by the following vote of the Voters of Zone 56 of the Desert Hot Springs Special Public Safety Tax Area on October 7, 2025: Yes Votes: _____ No. Votes: Percent (%) Approval: _____ PASSED AND ADOPTED by Declaration of the vote by the City Council of the City of Desert Hot Springs on this seventh day of October 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 6.

EXHIBIT A

DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX
ZONE 56 (AMAZON.COM SERVICES, LLC)

ZONE DESCRIPTION
The City of Desert Hot Springs Special Public Safety Tax District (the “District”) boundary is coterminous with that of the City of Desert Hot Springs’ (the “City”) incorporated territory. Each zone within the District is a portion of that area and is described below by Riverside County Assessor’s Parcel Number (APN) included within the zone.
(Note: the APNs are current as of the Final Tax Lien Assessment Roll for FY 2025-2026) Assessor's Parcel No. Lot Size Acres
666-370-039 94.91
Item Number: 6.

EXHIBIT B

BOUNDARY MAP

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 56 (AMAZON.COM SERVICES, LLC)

CITY OF DESERT HOT SPRINGS
A map of the above-entitled zone within the City of Desert Hot Springs Special Public Safety Tax follows on the next page.

Item Number: 6.

Item Number: 6.

EXHIBIT C

CITY OF DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX

TAX RATE TABLE
City Land Use
Category
County Property
Use Code Category
Per Parcel
Annual Tax Rate*
Single Family Residential/R-1 R1 (Single Family Residential) $360.58 per unit CR (Single family residential on
commercially zoned property)
$360.58 per unit
Duplexes/R-2 and other Nonrental Multi-family ResidentialR2 (2 or 3 unit dwelling units on a single parcel)
$201.55 per unit
RC (Condos with private entry) $201.55 per unit
RD (Condos with common entry) $201.55 per unit
Apartments and Mobile R3 (Apartment buildings) $115.37 per unit Homes/R-3 RM (Individually owned mobile home
lot with mobile home hook-up; mobile
home not assessed by assessor)
$115.37 per unit
MF (Individually owned parcel
improved by assessor because it is on a
legal foundation)
$115.37 per unit
MI (Mobile home assessed by assessor,
located on leased land, and not
associated with rental park)
$115.37 per unit
MO (Individually owned parcel
improved with mobile home hook-up;
mobile home assessed by assessor)
$115.37 per unit
MP (Mobile home located on rented
land in rental park and assessed by
assessor)
$115.37 per unit
Commercial CL (Commercial building on leased
land)
$600.99 for 1 acre or less
$901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Item Number: 6.

CITY OF DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX

TAX RATE TABLE (CONTINUED)
City Land Use
Category
County Property
Use Code Category
Per Parcel
Annual Tax Rate*
Commercial (Continued) C1 (All other commercial property) $600.99 for 1 acre or less $901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Industrial $600.99 for 1 acre or less
$901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Hotel $113.93 per room
* Rates will be escalated by lessor of CPI or 3.00% commencing Fiscal Year 2026-27 Item Number: 6.

SHEET 1 OF 1 SHEET
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THIS BOUNDARY MAP CORRECTLY SHOWS THE
BOUNDARIES OF ZONE 55 (RANCHO DESCANO).

FORDETAILSCONCERNINGTHELINESANDDIMENSIONSOF
LOTS OR PARCELS REFER TO THE COUNTY ASSESSOR’S
MAPSFORFISCALY EAR2025-2026.

BOUNDARY MAP
S1/2 OF SEC 14, T.3S, R.4E

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 56 (AMAZON)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE

PARCELIDENTIFICATIONNUMBER
15TH AVE
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PARCEL LINES
M:\GIS-Assessmen t\DHS\PTAX2_Z56_Bo u n dary.mx d

Item Number: 6.

DESERT HOT SPRINGS PUBLIC SAFETY TAX AREA
ZONE 56 (AMAZON.COM SERVICES, LLC, A DELAWARE LIMITED LIABILITY COMPANY)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) on this same date in the proceedings of the City Council for the above-entitled public safety tax area, I personally received (a) a signed and dated waiver and consent form and (b) signed, dated and marked election ballots on behalf of, AMAZON.COM SERVICES, LLC, A DELAWARE LIMITED LIABILITY COMPANY, the entities named as the sole landowners of the land within the boundary of the above-entitled zone of the public safety tax area in the Certificate Regarding Registered Voters and Landowners, dated October 7, 2025, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waivers and consent forms and the completed ballots received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballots to confirm that they were properly marked and signed, and I hereby certify the result of that count to be that the ballots were cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Name
Qualified
Landowner
Votes Votes Cast YES NO
AMAZON.COM SERVICES, LLC 95
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

Jerryl Soriano
City Clerk
City of Desert Hot Springs
By:
(Attach completed copies of Waiver/Consent and Ballot)
Item Number: 6.

October 7, 2025
I, Jerryl Soriano, City Clerk of Desert Hot Springs, California, hereby attest that it has been determined that there are no registered voters residing within Special Public Safety Tax Area Zone 56 (Amazon.com Services, LLC).

Sincerely,
Jerryl Soriano, City Clerk
11-999 PALM DRIVE • DESERT HOT SPRINGS • CA • 92240
(760) 329-6411• www.cityofdhs.org

CITY OF DESERT HOT SPRINGS

OFFICE OF THE CITY CLERK
Item Number: 6.

P
TAX2Zone56
CouncilMemberProperties
Source:CountyofRiversideGIS,2025.

PTAX2Zone56
AMAZON
2 0
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PALM DR
I 10
VARNE
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RD

MIHALYO RD

PALM DR

VERBENA DR
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LITTLE MORONGO RD

MESQUITE AVE
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PIERSONBLVD

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M:\GIS-Assessment\DHS\Council
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Properties_PTAX2_Zone56.mxd; Map revised April 4, 2025. 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
LEGEND
ZONE56(Northof20thAve.&WestofLittleMorongoRd.)
CityBoundary
CouncilMember'sProperty
500FootBuffer
JP-JanPye
DV-DirkVoss
DP-DanielPitts
GG-GaryGardner
SM-ScottMatas

Item Number: 6.

SR-25-225
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 7, 2025
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Creating Special Tax Area 57 for Property (TKC Desert Hot Springs, LLC) for APN 660-160-029 located west of Palm Drive and north of Paul Road, to the Desert Hot Springs Special Public Safety Tax Area
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony;
5) Close the Public Hearing;
6) City Council discussion and questions of Staff;
7) Hold the election;
8) Canvass the election; and
9) Adopt an Ordinance Establishing a Special Public Safety Tax Area Zone 57 (TKC Desert Hot Springs, LLC).

BACKGROUND:

On September 2, 2025, the City Council adopted a Resolution Creating Special Tax Area Zone 57 (TKC Desert Hot Springs, LLC), Resolution No. 2025-044, within the Desert Hot Springs Special Public Safety Tax Area.

The Public Safety Tax Area Zone 57 (TKC Desert Hot Springs, LLC) is currently comprised of 3.90 acres of non-residential land; Assessor’s Parcel Number 660-160-029. This property is located west of Palm Drive and north of Paul Road.

It is anticipated that the Special Taxes levied by the District will provide funding for services and incidental expenses in connection with said services.

DISCUSSION:

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high-quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments, it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate highquality public safety services unless additional revenues are obtained.

Item Number: 7.

SR-25-225
It is the purpose and intent of this Ordinance to generate additional funds to pay for police and fire protection services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 57 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 57 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the residents of Zone 57.

FISCAL IMPACT:

The applicant has paid a deposit of $5,000, which covers the costs of establishing the zone. The property owner is responsible for all costs and payment of associated levy amounts applied to the annual tax roll for police and fire maintenance services.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 11: Financial and Operations
Continue to provide fiscally sound operations via the ongoing evaluation of city processes and operational needs to maximize efficiency, streamline processes and eliminate bureaucracy, when possible, to deliver outstanding customer service and professionalism in all interactions with residents and the public.

ATTACHMENTS:
1) Ordinance for Zone 57
2) PTAX2 Zone 57 Site Map
3) Certificate re Election Results - PTAX2 (Zone 57)
4) City Clerk Letter Attesting No Registered Voters
5) Council Properties Map PTAX2 Zone 57
Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

ORDINANCE NO. 2025-___

AN ORDINANCE OF THE CITY OF DESERT HOT SPRINGS

ESTABLISHING A SPECIAL PUBLIC SAFETY TAX FOR POLICE AND

FIRE PROTECTION SERVICES SUBJECT TO VOTER APPROVAL OF

THE VOTERS OF THE DESERT HOT SPRINGS PUBLIC SAFETY TAX
AREA ZONE 57 (TKC DESERT HOT SPRINGS, LLC)
THE VOTERS OF ZONE 57 OF THE DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX AREA DO ORDAIN AS FOLLOWS:

Section 1. Purpose, Intent and Authority.

It is of critical importance to the City Council of the City of Desert Hot Springs that residents of the City receive high-quality police and fire protection services. In carefully reviewing the City’s budget and revenue projections with the Police and Fire Departments, it has become clear to City staff that the City budget does not contain adequate funding to ensure the continued delivery of adequate high-quality public safety services unless additional revenues are obtained.

It is the purpose and intent of this Ordinance to generate additional funds to pay for police and fire protection services by authorizing the levy of a tax on improved parcels of real property on the secured property tax roll of Riverside County that are within Zone 57 of the Desert Hot Springs Special Public Safety Tax Area (the “Zone”). The voters of Zone 57 recognize the importance of adequate public safety services to the entire Desert Hot Springs community and approve this tax to ensure that those services will be maintained and improved citywide.

This tax is a special tax within the meaning of Section 4 of Article XIIIA of the California Constitution. Because the burden of this tax falls upon property, this tax also is a property tax, but this tax is not determined according to nor in any manner based upon the value of property; this tax is levied on a parcel and use of property basis. Insofar as not inconsistent with this Ordinance or with legislation authorizing special taxes and insofar as applicable to a property tax that is not based on value, such provisions of the California Revenue and Taxation Code and of Article XIII of the California Constitution as relate to ad valorem property taxes are intended to apply to the collection and administration of this tax (Section 4 of this Ordinance), as authorized by law. This tax is not an ad valorem property tax; it is an excise tax on the use of property. Because the revenue from the tax may be used only to fund public safety services, it is also a special tax.

The revenues raised by this tax are to be used solely for the purposes of obtaining, furnishing, operating, and maintaining police and fire protection equipment or apparatus, for paying the salaries and benefits of police and fire protection personnel, and for such other police and fire protection service expenses as are deemed necessary for the benefit of the property owner(s) of Zone 57.

This Ordinance is enacted pursuant to the authority of Government Code Section 54978 and is in compliance with that law and all others applicable to the tax. At the time that the Council submitted this Ordinance to the voters of Zone 57, there were 0 registered voters residing there is one property owner.

Because the Special Public Safety Tax will be imposed on property in Zone 57 and paid by the owners of the property, the Council finds that restricting the vote on the Special Public Safety Tax to property owners in Zone 57 is appropriate and consistent with the principles and requirements of California Constitution Article XIIIC (Proposition 218).

Section 2. Definitions.

The following definitions shall apply throughout this Ordinance.

A. “Animal control services” means services directed toward maintaining a safe and stray-free community, including but not limited to the enforcement of applicable State and City laws and citing of Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

B. violators; kennel operation and maintenance services; care for impounded animals and adoption services; pick-up of stray animals; issuing and recording dog licenses; investigating animal abuse; handling endangered species; removing wild animals and reptiles from the community; and administrative costs related to those activities.

C. “Code enforcement services” means services directed toward the enforcement of provisions of the Desert Hot Springs Municipal Code related to public nuisances, including but not limited to zoning, signs, land use, and property maintenance violations; business licensing; removal of abandoned vehicles; and administrative costs related to those activities.

D. “Constant first year dollars” shall mean an actual dollar amount which, in years subsequent to the first fiscal year the tax is levied, shall have the same purchasing price as the base amount in first fiscal year dollars as measured by the Consumer Price Index. The base amount shall be the amount of tax per parcel as specified in Section 3(A) herein. The adjustments from actual to constant dollars shall be made by use of the Consumer Price Index, as specified in Section 3(B) herein.

E. “Consumer Price Index” means the Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario in the month of March as published by the U.S. Department of Labor, Bureau of Labor Statistics. If the Consumer Price Index is discontinued or revised, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Consumer Price Index had not been discontinued or revised.

F. “Fiscal year” means the period of July 1 through the following June 30.

G. “Desert Hot Springs Special Public Safety Tax Area” means all the properties within the jurisdictional limits of the City of Desert Hot Springs.

H. “Desert Hot Springs Special Public Safety Tax Area Zone 57” (the “Zone”) means that portion of the incorporated area of the City of Desert Hot Springs located within the boundaries described in Exhibit A hereto and as shown on the map Exhibit B hereto.

I. “Fire protection services” means the services provided by the Riverside County Fire Department pursuant to A Cooperative Agreement to Provide Fire Protection, Fire Prevention, Rescue and Medical Aid for the City of Desert Hot Springs, or any successor agreement, entered into by and between the City and Riverside County Fire Department, or another public agency, and the administrative costs directly related to those activities.

J. “Parcel” means the land and any improvements thereon, designated by an assessor’s parcel map and parcel number and carried on the secured property tax roll of Riverside County. For the purposes of this Ordinance, parcel does not include any land or improvements outside the boundaries of the Zone nor any land or improvements owned by any governmental entity.

K. “Police protection services” means services protecting the safety of the citizens of the City through the maintenance of law and order, including but not limited to the enforcement of criminal, civil, and vehicular laws and provisions of the Desert Hot Springs Municipal Code; services to enhance the quality of life, environment, and safety of the citizens of the City; services responding to calls for police assistance; services in cooperation with other City departments, including code enforcement and animal administrative costs directly related to those activities.

L. “Public safety services” means police protection, fire protection, code enforcement, and animal control services.

M. Pursuant to Government Code §54978, “voter” means a person owning real property within the Zone at the time this Ordinance was adopted, as shown on the last equalized assessment roll prepared by the Riverside County Assessor’s Office.

Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

Section 3. Amount and Level of Taxes. The tax per year on each parcel in the Zone shall not exceed the amount applicable to the parcel, as specified below.

A. For First Fiscal Year:

The tax per year for the first fiscal year (July 1, 2025, through June 30, 2026) shall be the amount of Tax per Parcel for a Property Use Code Category as set forth in Exhibit C hereto. The use code assigned to each parcel shall be reviewed and updated periodically.

B. For Subsequent Fiscal Year:

In order to keep the tax on each parcel in constant first year dollars for each fiscal year subsequent to the first fiscal year, the tax per year shall be adjusted as set forth below to reflect any increase in the Consumer Price Index beyond the first fiscal year the tax is levied.

For each Property Use Category on Exhibit C, the tax per year on each parcel for each fiscal year subsequent to the first fiscal year shall be an amount determined as follows:

Tax Per Parcel
For the Current
Fiscal Year =
Tax Per Parcel
For Preceding
Fiscal Year X
Consumer Price Index
for April of immediately
Preceding Fiscal Year
OR 1.03, whichever is less
Provided, however, that in no event shall the tax per parcel for any fiscal year be less than the amount established for the first fiscal year.

C. Nature of Tax Levy.

The taxes levied on each parcel pursuant to this Article shall be a charge upon the parcel and shall be due and collectible as set forth in Section 4, below.

D. Reduction of Tax for Parcels Subject to Existing Public Safety Parcel Tax.

The tax imposed on any parcel in Zone 57 shall not be reduced by the amount of tax imposed on that parcel pursuant to Ordinance No. 517 (codified as §§ 35.150 et seq. of the Desert Hot Springs Municipal Code). The tax imposed on any parcel in Zone 57 pursuant to this ordinance shall be the full amount set forth in Exhibit C, adjusted for inflation as provided for in Section 3(B).

Section 4. Collection and Administration.

A. Taxes as Liens Against the Property.

The amount of taxes for each parcel each year shall constitute a lien on such property, in accordance with Revenue and Taxation Code Section 2187, and shall have the same effect as an ad valorem real property tax lien until fully paid.

B. Collection.

The taxes on each parcel shall be billed on the secured roll tax bills for ad valorem property taxes and are to be collected in the same manner in which Riverside County collects secured roll ad valorem property taxes. Insofar as feasible and insofar as not inconsistent with this Ordinance, the times and procedures regarding exceptions, due dates, installment payments, corrections, cancellations, refunds, late payments, penalties, liens, and collections for secured roll ad valorem property taxes (as established by Riverside County) shall be applicable to the collection of this tax. Notwithstanding anything to the contrary in the foregoing, as to this tax:

Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

1. The secured roll tax bills shall be the only notices required for this tax, and

2. The homeowners and veterans exemptions shall not be applicable because such exemptions are determined by dollar amount of value.

C. Costs of Administration by County.

The reasonable costs incurred by the County officers collecting and administering this tax shall be deducted from the collected taxes.

D. Use of Tax Revenue.

The revenue collected from the tax imposed by this ordinance shall be placed into a separate account and may be used only to fund public safety services, including the costs of administering and collecting the tax and enforcing the provisions of this ordinance. Revenue from the tax may be used for public safety services citywide.

E. Refunds.

1. Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once or has been erroneously or illegally collected or received by the City pursuant to this ordinance, it may be refunded as provided in this Section.

2. No refund may be made except upon a written claim verified by the person who paid the tax or by his or her guardian or conservator or the executor or administrator of his or her will or estate and stating the grounds upon which the claim is made. All claims filed pursuant to this subsection must be presented within one year after payment of the amount for which the claimant is seeking a refund.

3. No order of a refund may be made until a written claim therefore has been presented in accordance with this subsection. No suit for money, damages or a refund may be brought against the City until a written claim therefore has been presented to the City and has been acted upon or has been deemed rejected by the City, in accordance with this subsection. Only the person who filed the claim may bring such a suit, and if another person should do so, judgment shall not be rendered for the plaintiff.

F. Initiatives to Affect Tax.

Consistent with the California Constitution (art. XIIIC, §3) the tax imposed by this ordinance may be affected by initiative. The procedures for qualification of such an initiative and the election on a qualified initiative shall be consistent with the California Constitution (art. 2, sec. 8), the California Elections Code (Chapter 3 of Division 9), and the Municipal Code. The minimum number of signatures necessary to qualify an initiative to affect the tax approved by this ordinance shall be equal to 5 percent of the votes in the City for all candidates for Governor at the last gubernatorial election. The election on a qualified initiative to affect the tax shall be a regular citywide election. An initiative affecting the tax shall be approved only if at least two-thirds of the votes cast on the measure are in favor of its approval.

Section 5. Severability Clause.

If any article section, subsection, sentence, phrase of clause of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion of this Ordinance.

The voters of the Zone hereby declare that they would have adopted the remainder of this Ordinance, including each article, section, subsection, sentenced phrase or clause, irrespective of the invalidity of any other article, section, subsection, sentence, phrase or clause.

Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

Section 6. Effective Date and Posting.

A. Canvass of Election.

The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on October 7, 2025, or when all qualified electors have voted) at the City Clerk’s office.

At the conclusion of the canvass, the City Clerk shall certify the results of the election.

B. Effective Date
This Ordinance shall take effect immediately upon its approval by two-thirds of the voters voting within the Zone in an election to be held on October 7, 2025, so that taxes shall first be collected hereunder for the tax year beginning July 1, 2026.

Dated: October 7, 2025
[SIGNATURES FOLLOW ON THE NEXT PAGE]
.

Item Number: 7.

Ordinance No. 2025-___
Date Adopted: October 7, 2025

APPROVED by the following vote of the Voters of Zone 57 of the Desert Hot Springs Special Public Safety Tax Area on October 7, 2025: Yes Votes: _____ No. Votes: Percent (%) Approval: _____ PASSED AND ADOPTED by Declaration of the vote by the City Council of the City of Desert Hot Springs on this seventh day of October 2025, by the following vote:

AYES:

NAYS:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 7.

EXHIBIT A

DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX
ZONE 57 (TKC DESERT HOT SPRINGS, LLC)

ZONE DESCRIPTION
The City of Desert Hot Springs Special Public Safety Tax District (the “District”) boundary is coterminous with that of the City of Desert Hot Springs’ (the “City”) incorporated territory. Each zone within the District is a portion of that area and is described below by Riverside County Assessor’s Parcel Number (APN) included within the zone.
(Note: the APNs are current as of the Final Tax Lien Assessment Roll for FY 2025-2026) Assessor's Parcel No. Lot Size Acres
660-160-029 3.90
Item Number: 7.

EXHIBIT B

BOUNDARY MAP

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 57 (TKC DESERT HOT SPRINGS, LLC)

CITY OF DESERT HOT SPRINGS
A map of the above-entitled zone within the City of Desert Hot Springs Special Public Safety Tax follows on the next page.

Item Number: 7.

Item Number: 7.

EXHIBIT C

CITY OF DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX

TAX RATE TABLE
City Land Use
Category
County Property
Use Code Category
Per Parcel
Annual Tax Rate*
Single Family Residential/R-1 R1 (Single Family Residential) $360.58 per unit CR (Single family residential on
commercially zoned property)
$360.58 per unit
Duplexes/R-2 and other Nonrental Multi-family ResidentialR2 (2 or 3 unit dwelling units on a single parcel)
$201.55 per unit
RC (Condos with private entry) $201.55 per unit
RD (Condos with common entry) $201.55 per unit
Apartments and Mobile R3 (Apartment buildings) $115.37 per unit Homes/R-3 RM (Individually owned mobile home
lot with mobile home hook-up; mobile
home not assessed by assessor)
$115.37 per unit
MF (Individually owned parcel
improved by assessor because it is on a
legal foundation)
$115.37 per unit
MI (Mobile home assessed by assessor,
located on leased land, and not
associated with rental park)
$115.37 per unit
MO (Individually owned parcel
improved with mobile home hook-up;
mobile home assessed by assessor)
$115.37 per unit
MP (Mobile home located on rented
land in rental park and assessed by
assessor)
$115.37 per unit
Commercial CL (Commercial building on leased
land)
$600.99 for 1 acre or less
$901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Item Number: 7.

CITY OF DESERT HOT SPRINGS SPECIAL PUBLIC SAFETY TAX

TAX RATE TABLE (CONTINUED)
City Land Use
Category
County Property
Use Code Category
Per Parcel
Annual Tax Rate*
Commercial (Continued) C1 (All other commercial property) $600.99 for 1 acre or less $901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Industrial $600.99 for 1 acre or less
$901.50 > than 1 acre to 3 acres
$1,352.24 > than 3 acres to 5 acres
$2,028.37 > than 5 acres to 15 acres
$3,042.55 > than 15 acres to 25 acres
$4,563.06 > than 25 acres to 40 acres
$6,843.84 > than 40 acres
Hotel $113.93 per room
* Rates will be escalated by lessor of CPI or 3.00% commencing Fiscal Year 2026-27 Item Number: 7.

SHEET 1 OF 1 SHEET
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THIS BOUNDARY MAP CORRECTLY SHOWS THE
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FORDETAILSCONCERNINGTHELINESANDDIMENSIONSOF
LOTS OR PARCELS REFER TO THE COUNTY ASSESSOR’S
MAPSFORFISCALYEAR2025-2026.

BOUNDARY MAP
S1/2 of the NW1/4 OF SEC 30, T.3S, R 5E.

SPECIAL PUBLIC SAFETY TAX AREA
ZONE 57 (TKC DESERT HOT SPRINGS LLC)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

VICINITY MAP

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M:\GIS-Assessm en t\DHS\PTAX 2_Z57_Bou n dary.m xd

Item Number: 7.

DESERT HOT SPRINGS PUBLIC SAFETY TAX AREA
ZONE 57 (TKC DESERT HOT SPRINGS, LLC)

CITY OF DESERT HOT SPRINGS

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Desert Hot Springs (the “City”) on this same date in the proceedings of the City Council for the above-entitled public safety tax area, I personally received (a) a signed and dated waiver and consent form and (b) signed, dated and marked election ballots on behalf of, TKC DESERT HOT SPRINGS, LLC, the entities named as the sole landowners of the land within the boundary of the above-entitled zone of the public safety tax area in the Certificate Regarding Registered Voters and Landowners, dated October 7, 2025, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waivers and consent forms and the completed ballots received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballots to confirm that they were properly marked and signed, and I hereby certify the result of that count to be that the ballots were cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Landowner
Name
Qualified
Landowner
Votes Votes Cast YES NO
TKC Desert Hot Springs, LLC 4
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025.

Jerryl Soriano
City Clerk
City of Desert Hot Springs
By:
(Attach completed copies of Waiver/Consent and Ballot)
Item Number: 7.

October 7, 2025
I, Jerryl Soriano, City Clerk of Desert Hot Springs, California, hereby attest that it has been determined that there are no registered voters residing within Special Public Safety Tax Area Zone 57 (TKC Desert Hot Springs, LLC).

Sincerely,
Jerryl Soriano, City Clerk
11-999 PALM DRIVE • DESERT HOT SPRINGS • CA • 92240
(760) 329-6411• www.cityofdhs.org

CITY OF DESERT HOT SPRINGS

OFFICE OF THE CITY CLERK
Item Number: 7.

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Properties_PTAX2_Zone57.mxd; Map revised April 4, 2025. 06,00012,000Feet

CITYOFDESERTHOTSPRINGS
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Zone57(NorthofPaulRd.&WestofPalmDr.)
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SM-ScottMatas

Item Number: 7.

SR-25-227
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 7, 2025
Department: Animal Care and Control
Prepared by: Tiyler Messer, Acting Compliance Manager
Subject: Resolution to Waive Animal Adoption Fees
RECOMMENDATION:

Adopt a Resolution of the City Council authorizing the City Manager to offer a reduced or no-cost adoption fee as deemed appropriate to facilitate and encourage adoptions during capacity challenges.

BACKGROUND:

The City of Desert Hot Springs has been committed to animal care and control since 2017, when the program was brought in-house to improve the welfare of our community's animals. In 2024, we proudly acquired an Animal Sanctuary, which became an extension of our Animal Care and Control Division, further demonstrating our dedication to providing a safe haven for animals in need. Staff manages both the Hacienda and Indian locations of Animal Care and Control and handles a high volume of animal intakes, highlighting the necessity for an Adoption Specialist to facilitate a large number of adoptions.

In alignment with the City's Strategic Plan, in July of 2025, the City Council approved a contract for an animal adoption coordinator. The animal adoption coordinator has established a more structured and collaborative approach to animal adoptions. This has enhanced the efficiency of our adoption processes and fostered a deeper connection between the City and its residents, ultimately leading to increased adoption rates.

However, the City also recognizes the ongoing capacity challenges faced by animal shelters in Southern California, including those serving Desert Hot Springs residents. High occupancy rates at shelters have created an urgent need to promote animal adoption and reduce overcrowding by encouraging responsible pet ownership. The City of Desert Hot Springs supports humane and sustainable animal care practices and aims to facilitate pet adoption opportunities for its residents and the surrounding communities.

DISCUSSION:

To support an increase in adoption rates, promote adoption events, and address capacity challenges, staff recommends that the City Council authorize the City Manager to reduce or waive the current $105 adoption fee, as deemed appropriate, in order to facilitate and encourage adoptions during periods of high capacity.

Item Number: 8.

SR-25-227
The City intends to host a minimum of one adoption event per month over twelve months in collaboration with local animal shelters and animal welfare organizations. City staff has determined that the proposed adoption fee reduction will encourage public participation and adoptions.

FISCAL IMPACT:

The City receives over $9,000 in adoption fees annually. Depending on the number of reduced fee adoption events and how many animals are adopted during these events, the City would most likely experience a marginal decrease in adoption fee revenue.

ENVIRONMENTAL ANALYSIS:

The establishment of the fees as set forth in the User Fee Study is not a “project” subject to the California Environmental Quality Act because it is a funding mechanism have no physical effect on the environment.

STRATEGIC ALIGNMENT:

This initiative supports the following goals of the City's Strategic Plan:

Goal 9: Animal Care and Control
Provide exceptionally high levels of customer service to the city residents while ensuring the highest levels of humane treatment of all animals in the care of the city’s Animal Care and Control.

ATTACHMENTS:
1) Reduced Fee Adoptions Resolution
Item Number: 8.

RESOLUTION NO. 2025-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

DESERT HOT SPRINGS, COUNTY OF RIVERSIDE, STATE

OF CALIFORNIA, ADOPTING A TEMPORARY ADOPTION
FEE REDUCTION FOR ONE (1) YEAR IN ORDER TO

PROMOTE THE ADOPTION OF ANIMALS
WHEREAS, the City of Desert Hot Springs recognizes the ongoing capacity challenges faced by animal shelters in Southern California, including those serving residents within the City; and
WHEREAS, high occupancy rates at shelters have created an urgent need to promote animal adoption and reduce overcrowding by encouraging responsible pet ownership; and WHEREAS, the City of Desert Hot Springs supports humane and sustainable animal care practices and desires to facilitate pet adoption opportunities for its residents and surrounding communities; and
WHEREAS, the City seeks to authorize the City Manager to offer a reduced or no-cost adoption fee as deemed appropriate to facilitate and encourage adoptions during capacity challenges.

WHEREAS, the City seeks to implement an incentive program by offering a reduced or no-cost adoption fee per animal.

WHEREAS, the City’s intention is to host a minimum of one adoption event per month over a twelve-month period in collaboration with local animal shelters and animal welfare organizations; and
WHEREAS, City staff has determined that the proposed adoption fee reduction will encourage public participation and encourage adoptions.

WHEREAS, the establishment of the fees as set forth in the User Fee Study is not a “project” subject to the California Environmental Quality Act because it is a funding mechanism have no physical effect on the environment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the Recitals set forth above are true and correct.

Section 2. APPROVAL OF USER FEE
That the City Council hereby authorize the City Manager to offer a reduced-cost adoption fee as deemed appropriate.

Item Number: 8.

Section 3. REPEAL OF CONFLICTING PROVISIONS
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 4. SEVERABLITY
That if any provisions of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

Section 5. EFFECTIVE DATE
That this Resolution shall take effect upon its adoption and the User Fee Study and the Fees contained therein shall take effect immediately, but the fees therein shall take effect accordance with law.

Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this Resolution and enter it into the book or original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on this _____ day of _____ 2025 by the following vote:

AYES:

NAYES:

ABSENT:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
Item Number: 8.