Folsom City Council
August 11, 2026

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 22
capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Step 1 by the expected balance in the capitalized interest fund after such first interest payment.

Step 8: The redemption amount is equal to the sum of the amounts computed pursuant to Steps 2, 3, 4, and 5, less the amount computed pursuant to Steps 6 and 7 (the “Redemption Amount”).

If the Partial Prepayment Amount exceeds the Redemption Amount, then any remaining Partial Prepayment Amount, after allocating the Redemption Amount, shall be designated as Pay As You Go Costs.

The Partial Prepayment Amount shall include any fees or expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the cost of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

In addition, the City has the authority to adjust the Partial Prepayment Amount calculated above if a portion or all of the current property tax bill and the portion attributable to the payment of the Facilities Special Tax has not been used to make an interest and/or principal payment on the Bonds.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes), net of any priority administration, if any as defined in the Indenture, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed partial prepayment, is at least 1.1 times the annual debt service on all Outstanding Bonds to be paid from the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) in each Fiscal Year.

M. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied commencing in Fiscal Year 2027-2028 to the extent necessary to fully satisfy the Facilities Special Tax Requirement and shall be levied through the Facilities Special Tax Term.

The Services Special Tax shall be levied commencing in Fiscal Year 2027-2028 and shall be levied until the Transition Event to the extent necessary to fully satisfy the Services Special Tax Requirement.

The Transition Services Special Tax shall be levied commencing in the Fiscal Year following the Transition Event in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Transition Services Special Tax Requirement.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 23

ATTACHMENT A

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)
IMPROVEMENT AREA 1

MAXIMUM SPECIAL TAX RATES
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Maximum
Facilities Special
Tax Rate(1)
2026-2027
Maximum
Services Special
Tax Rate(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $3,500 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $2,800 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $2,600 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $2,000 $117 Residential Lot Other Taxable Property Any $15,000 $645 Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $3,500 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $2,800 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $2,600 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $2,000 $117 Residential Lot Other Taxable Property Any $15,000 $645 Acre
Permit Ready Multi-Family/Non-Residential Property $15,000 $645 Acre Large Lot Property $15,000 $645 Acre
Undeveloped Property $15,000 $645 Acre
(1) On each July 1, commencing on July 1, 2027, the Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year. (2) On each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates shall be increased by an amount equal to the Services Special Tax Escalation Factor of the Maximum Services Special Tax Rates in effect for the previous Fiscal Year.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 24

ATTACHMENT B

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)
IMPROVEMENT AREA 1

MINIMUM FACILITIES REVENUE
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
Planned Number
of Residential
Lots
2026-2027
Developed Property
Maximum Facilities
Special Tax Rate(1)(2)
2026-2027
Minimum
Facilities
Revenue (1)(3)
Developed Property:

Single-Family Detached Property – SF Zoning Any 78 $3,500 $273,000 Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 93 $2,800 $260,400 Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 38 $2,600 $98,800 Single-Family Detached Property – MLD Zoning Any 53 $2,000 $106,000 Other Taxable Property Any 0 $15,000 $0
Total Minimum Facilities Revenue(4) $738,200
(1) On each July 1, commencing on July 1, 2027, the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year. (2) As a result of future Assessor’s Parcel changes, described in Section C.2, the assigned Maximum Facilities Special Tax Rates for Developed Property may exceed the Developed Property Maximum Facilities Special Tax Rates set forth in this table. (3) The total Minimum Facilities Revenue may be decreased as result of a portion of Maximum Facilities Special Tax obligations being prepaid pursuant to Section L.
(4) Based upon the Developed Property Maximum Facilities Special Tax Rate for Single-Family Detached Property in Improvement Area No. 1.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 25

ATTACHMENT C

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)
IMPROVEMENT AREA 1

EFFECTIVE TAX RATE EVALUATION MAXIMUM FACILITIES SPECIAL TAX RATES (FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Permit Ready Multi-Family/Non-Residential Property $_________ Acre Large Lot Property $_________ Acre
Undeveloped Property $_________ Acre
(1) Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates will be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 26

ATTACHMENT D

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)
IMPROVEMENT AREA 1

EFFECTIVE TAX RATE EVALUATION MINIMUM FACILITIES REVENUE (FISCAL YEAR 2026-2027)
Land Use Category Lot / Village #
Planned Number
of Residential
Lots / Acres(1)
2026-2027
Developed Property
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2)(3)
2026-2027
Effective Tax Rate
Evaluation
Minimum Facilities
Revenue(1)(2)(4)
Developed Property:

Single-Family Detached Property – SF Zoning Any 78 $_________ $_________ Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 93 _________ _________ Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 38 _________ _________ Single-Family Detached Property – MLD Zoning Any 53 _________ _________ Other Taxable Property Any 0 _________ _________
Total Effective Tax Rate Evaluation Minimum
Facilities Revenue(5)
$_________
(1) Planned Number of Residential Units/Acres, Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate and Effective Tax Rate Evaluation Minimum Facilities Revenue to be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue in effect for the previous Fiscal Year. (3) As a result of future Assessor’s Parcel changes, described in Section C.3, the assigned Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates may exceed the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in this table.
(4) The total Effective Tax Rate Evaluation Minimum Facilities Revenue may be decreased as result of a portion of Effective Tax Rate Evaluation Maximum Facilities Special Tax obligations being prepaid pursuant to Section L. (5) Based upon the total Effective Developed Property Maximum Facilities Special Tax Rate Evaluation for Single-Family Detached Property in Improvement Area No. 1.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 27

ATTACHMENT E

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS)
IMPROVEMENT AREA 1

08/11/2026 Item No.21.

08/11/2026 Item No.21.

D-2
EXHIBIT D-2

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA NO. 2

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 1

RATE AND METHOD OF APPORTIONMENT FOR

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
IMPROVEMENT AREA 2
A Special Tax, as hereinafter defined, shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 2 of the City of Folsom Community Facilities District No. 22A (Folsom Heights) (CFD No. 22A IA2) and collected each Fiscal Year in an amount determined by the CFD No. 22A IA2 Administrator through the application of the Rate and Method of Apportionment as described below. All of the real property within CFD No. 22A IA2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. GENERAL DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map and secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Large Lot Map, Small Lot Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel.

If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number.
“Authorized Services” means the services authorized to be financed by CFD No. 22A IA2. “Average Sales Price” means the estimated average net price of new homes with options and upgrades by product category, as identified in the most recent Price Point Study for the CFD 22A IA2 market area.
“Bond Year” means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year, unless defined differently in the applicable Indenture. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 22A IA2 under the Act.
“CFD No. 22A IA2” means City of Folsom Community Facilities District No. 22A IA2 (Folsom Heights). “CFD No. 22A IA2 Administrator” means the City’s Finance Director, or designee thereof, responsible for determining the Facilities Special Tax Requirement, Services Special Tax Requirement, and

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 2
Transition Services Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“City” means the City of Folsom.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 22A IA2. “County” means the County of Sacramento.
“Developed Property” means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued prior to June 30 of the previous Fiscal Year. “Effective Tax Rate Evaluation” means an evaluation of the Total Effective Tax Rate of Residential Property at the time of such evaluation. The Effective Tax Rate Evaluation will be based upon a prepared Price Point Study to determine the Total Effective Tax Rate for Residential Property, based upon the calculated Total Estimated Tax Burden.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, as determined during the Effective Tax Rate Evaluation, in accordance with the provisions of Section C.3, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property that will be set forth in Attachment C, following the Effective Tax Rate Evaluation, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Minimum Facilities Revenue” means, following the Effective Tax Rate Evaluation, the total minimum amount of CFD No. 22A IA2 Effective Tax Rate Evaluation Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor after the Fiscal Year in which the Effective Tax Rate Evaluation occurs, less any Effective Tax Rate Evaluation Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Effective Tax Rate Evaluation Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment D of this Rate and Method of Apportionment.
“Exempt Property” means all Assessors’ Parcels that are exempt from the Special Tax pursuant to Section G.
“Facilities Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Facilities Special Tax including, but not limited to, the following: the costs of computing the Facilities Special Tax and preparing the annual Facilities Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Facilities Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Facilities Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 22A IA2, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS or SEC pertaining to any Bonds or any audit of any Bonds by the SEC or IRS; the costs to the City, CFD No. 22A IA2, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 3
applicable state or federal securities law; the costs associated with preparing Facilities Special Tax disclosure statements and responding to public inquiries regarding the Facilities Special Taxes; the costs of the City, CFD No. 22A IA2, or any designee thereof related to any appeal of the levy or application of the Facilities Special Tax; the costs associated with the release of funds from an escrow account, if any; and the costs associated with computing and preparing the Effective Tax Rate Evaluation, including the Price Point Study. Facilities Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA2 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Facilities Special Taxes. “Facilities Special Tax” means the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement. “Facilities Special Tax Escalation Factor” means two percent (2%) annually. “Facilities Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for CFD No. 22A IA2 to: (i) pay Facilities Administrative Expenses in an amount designated by the City; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year and known upcoming delinquencies; and (vi) pay for Pay As You Go Costs; less (vii) a credit for funds available to reduce the annual Facilities Special Tax levy as determined by the CFD No. 22A IA2 Administrator pursuant to the Indenture. “Facilities Special Tax Term” means the earlier of Fiscal Year 2086-2087 or the Fiscal Year occurring 50 years following the Fiscal Year in which the first building permit was issued, or the first series of Bonds was issued within CFD No. 22A IA2.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Large Lot Map” means a recorded subdivision map creating larger parcels by land use. The Large Lot Map does not create individual lots for which building permits may be issued for single-family Residential Units.
“Large Lot Property” means, for each Fiscal Year, all Taxable Property for which a Large Lot Map was recorded prior to June 30 of the previous Fiscal Year, excluding any portion(s) thereof classified as Developed Property, Small Lot Final Map Property, or Permit Ready Multi-Family/Non-Residential Property. Large Lot Property also means, for each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property as of June 30 of the previous Fiscal Year.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 4
“Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax” means the total maximum annual Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax Rate” means the maximum annual Services Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Special Tax” means, prior to the Transition Year, the total annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and Maximum Services Special Tax, determined in accordance with the provisions of Section C and Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

Beginning in the Transition Year, “Maximum Special Tax”, also means the total annual Maximum Transition Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Maximum Total Effective Tax Rate” means 1.80%, unless the City determines, in its sole discretion, that a higher Maximum Total Effective Tax Rate is appropriate. “Maximum Transition Services Special Tax” means, beginning in the Transition Year, the maximum amount, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Minimum Facilities Revenue” means the minimum amount of total CFD No. 22A IA2 Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor, less any Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment B of this Rate and Method of Apportionment. Following the Transition Event, the Minimum Facilities Revenue shall be zero.
“Non-Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing non-residential buildings. “Open Space Property” means property within the boundaries of CFD No. 22A IA2 which (a) has been designated with specific boundaries and acreage on a Small Lot Final Subdivision Map as open space, or (b) is classified by the City zoning code or County Assessor as open space, or (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, any other public agency, a private, non-profit organization, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 5
“Other Taxable Property” means all other land uses of Taxable Property, for which a building permit for new construction can be issued. Other Taxable Property does not include Residential Property and Non-Residential Property land use categories.
“Outstanding Bonds” means all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay As You Go Costs” means that portion of the Facilities Special Tax Requirement attributable to the direct payment for the acquisition and/or construction of public improvements, which are authorized to be financed by CFD No. 22A IA2.
“Permit Ready Multi-Family/Non-Residential Property” means an Assessor’s Parcel of Taxable Property zoned for multi-family or non-residential land use for which all discretionary entitlements have been obtained, including, without limitation, development plan review and improvement plan approval, such that building permits may be issued without further approvals for the construction of multi-family Residential Units or non-residential buildings within such Assessor’s Parcel. The City shall have sole discretion, based upon available development information, in classifying an Assessor’s Parcel as Permit Ready Multi-Family/Non-Residential Property. “Planned Development” means the planned number of Residential Lots, Permit Ready Multi- Family/Non-Residential Property Acreage planned within CFD No. 22A IA2, set forth in Attachment B or, following the Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, as amended by the future recordation of all Large Lot Maps and Small Lot Final Subdivision Maps within CFD No. 22A IA2.
“Price Point Study” means an analysis, prepared by an independent firm, to verify the estimated Average Sales Price within each land use category of Residential Property given the project location and current market conditions.
“Property Owner Association Property” means any property within the boundaries of CFD No. 22A IA2, which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Taxable Property that the ratio of the Facilities Special Tax levy to the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and the Services Special Tax levy to the Maximum Services Special Tax is equal for all Assessors’ Parcels within each classification (Developed Property, Single Family Final Map Property, Permit Ready Multi- Family/Non-Residential Property, Large Lot Property, etc.) within CFD No. 22A IA2. “Public Property” means any property within the boundaries of CFD No. 22A IA2, which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property, which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City, or any other public agency.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 6
“Residential Lot” means an individual lot of land for which a building permit could be issued to construct a Residential Unit.
“Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing Residential Units, including Single-Family Detached Property – SF/SFHD Zoning, Single-Family Detached Property – MLD Zoning Property. “Residential Unit” means a residential dwelling unit, including accessory dwelling units, as allowed by the City zoning code.
“Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Services Special Tax including, but not limited to, the following: the costs of computing the Services Special Taxes and preparing the annual Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Services Special Tax; and the costs of the City, CFD No. 22A IA2, or any designee thereof related to any appeal of the levy or application of the Services Special Tax. Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA2 for any other administrative purposes related to the Services Special Tax.
“Services Special Tax” means, prior to the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Services Special Tax Requirement.
“Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Services Special Tax Requirement” means the amount of Services Special Tax revenue required for CFD No. 22A IA2, before the Transition Year, to (i) pay Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) cover any shortfalls that exist if, in any Fiscal Year, the levy of the Facilities Special Tax on each Assessor’s Parcel of Taxable Property is insufficient to pay the Facilities Special Tax Requirement in that Fiscal Year. Facilities Special Tax Requirement shortfalls shall not include Pay As You Go Costs, and (v) pay for reasonably anticipated delinquent Services Special Taxes based on the delinquency rate for Services Special Taxes levied in the previous Fiscal Year; less (vi) a credit for funds available to reduce the annual Services Special Tax levy as determined by the CFD No. 22A IA2 Administrator.
“Single-Family Detached Property – MLD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more detached or attached Residential Units with a permitted density range of 7-12 Residential Units per Acre and more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

08/11/2026 Item No.21.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 2 Page 7
“Single-Family Detached Property – SF Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SF Zoning shall consist of single-family property with a permitted density range of 1-4 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

Single-Family Detached Property – SFHD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SFHD Zoning shall consist of single-family property with a permitted density range of 4-7 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council. “Special Tax” means, before the Transition Year, the annual Facilities Special Tax and Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement and the Services Special Tax Requirement; and, beginning in the Transition Year, the annual Transition Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement. “Small Lot Final Map Property” means, for each Fiscal Year, all Taxable Property for which a Small Lot Final Subdivision Map was recorded prior to June 30 of the previous Fiscal Year. “Small Lot Final Map Remainder Property” means an Assessor’s Parcel that is created from the subdivision of Large Lot Property by the recordation of a Small Lot Final Subdivision Map that has not yet been mapped for final development approval. Small Lot Final Map Remainder Property is that portion of property for which the Small Lot Final Subdivision Map definition does not apply (i.e., does not contain individual lots for which building permits may be issued for Residential Units without further subdivision of such property). Each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property, as of June 30 of the previous Fiscal Year, will be considered Large Lot Property.
“Small Lot Final Subdivision Map” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City 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 for Residential Units without further subdivision of such property. “State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 22A IA2 that are not exempt from the CFD No. 22A IA2 Special Tax pursuant to law or Section F below. “Total Effective Tax Rate” means the percentage of the Total Estimated Tax Burden as compared to the estimated average sales price identified in the Price Point Study for each land use category of Residential Property.
“Total Estimated Tax Burden” means the total amount of overlapping property taxes anticipated to be levied upon a Residential Unit, based upon the estimated Average Sales Price identified in the most

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recently completed Price Point Study and existing property tax rates for the current Fiscal Year.

Existing property tax rates shall reflect the actual property tax rates— excluding utility-related fees and charges and PACE loans— levied upon Taxable Property in the Fiscal Year that the Effective Tax Rate Evaluation is completed.
“Transition Event” means the earlier of (i) Fiscal Year 2086-2087 or (ii) the Fiscal Year when the CFD No. 22A IA2 Administrator determines that both of the following events have occurred (1) all Bonds secured by the levy and collection of the Facilities Special Tax in CFD No. 22A IA2 have been fully repaid and the City determines that no additional Bonds are to be issued, and (2) all Facilities Administrative Expenses have been paid or reimbursed to CFD No. 22A IA2. “Transition Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Transition Services Special Tax including, but not limited to, the following: the costs of computing the Transition Services Special Taxes and preparing the annual Transition Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Transition Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Transition Services Special Tax; and the costs of the City, CFD No. 22A IA2, or any designee thereof related to any appeal of the levy or application of the Transition Services Special Tax. Transition Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA2 for any other administrative purposes related to the Transition Services Special Tax.
“Transition Services Special Tax” means, after the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement.
“Transition Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Transition Services Special Tax Rate” means, calculated in the Transition Year, the amount equal to the prior Fiscal Year’s Maximum Services Special Tax Rate plus fifty percent (50%) of the prior Fiscal Year’s Maximum Facilities Special Tax Rate. The Transition Services Special Tax Escalation Factor shall be applied beginning in the Transition Year. Following the Transition Year, the Transition Services Special Tax Rate shall be equal to the prior Fiscal Year’s Transition Services Special Tax Rate, increased by the Transition Services Special Tax Escalation Factor. “Transition Services Special Tax Requirement” means the amount of Transition Services Special Tax revenue required for CFD No. 22A IA2, beginning in the Transition Year, to (i) pay Transition Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair, replacement and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) pay for reasonably anticipated delinquent Transition Services Special Taxes based on the delinquency rate for Transition Services Special Taxes levied in the previous Fiscal Year; less (v) a credit for funds

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available to reduce the annual Transition Services Special Tax levy as determined by the CFD No. 22A IA2 Administrator.
“Transition Year” means the first year in which the CFD No. 22A IA2 Administrator determines that the Transition Event occurred in the prior Fiscal Year. “Trustee” means the entity appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, or Large Lot Property.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 22A IA2 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, using City and County records, City zoning information, and land use development plans, all Assessor’s Parcels within the boundaries of CFD No. 22A IA2 shall be designated as either Taxable Property or Exempt Property.

All Taxable Property shall be further classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, Large Lot Property, or Undeveloped Property and shall be subject to the levy of the annual Special Tax determined pursuant to Sections C and D below.

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C. FACILITIES SPECIAL TAX
Prior to the Transition Year, a Maximum Facilities Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA2 according to the Maximum Facilities Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

Once assigned, the sum of the total Maximum Facilities Special Tax shall be equal to or greater than the Minimum Facilities Revenue, unless adjusted by an Effective Tax Rate Evaluation as described below. The Minimum Facilities Revenue for Fiscal Year 2027-2028 is set forth in Attachment B of this Rate and Method of Apportionment.

C.1. Increase in the Maximum Facilities Special Tax
On each July 1, commencing on July 1, 2028, the Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year shall be increased by the Facilities Special Tax Escalation Factor.

C.2. Future Assessor’s Parcel Changes – Prior to an Effective Tax Rate Evaluation The Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Maximum Facilities Special Tax revenue is not less than the Minimum Facilities Revenue set forth in Attachment B of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall be uniformly increased on the Large Lot Property created from the Undeveloped Property subdivision until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Further, if the sum of the total current Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this

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Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and/or Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property and/or Permit Ready Multi-Family/Non-Residential Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

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C.3. Effective Tax Rate Evaluation
Prior to the issuance of the first series of Bonds within CFD No. 22A IA2 an Effective Tax Rate Evaluation will be completed. Following the Effective Tax Rate Evaluation, Attachment C of this Rate and Method of Apportionment will be updated to reflect the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for all Taxable Property in CFD No. 22A IA2.

Additionally, prior to the issuance of the first series of Bonds, the Developer may, one time, at their discretion, further reduce the Maximum Facilities Special Tax Rate for any or all Taxable Property in CFD No. 22A IA2 to an amount less than the rates produced in the Effective Tax Rate Evaluation. If reduced, the reduction will be applied uniformly by land use category.

Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates As part of the Effective Tax Rate Evaluation, a Price Point Study will be prepared and an estimated Average Sales Price will be established for each Residential Property land use category. Using the estimated Average Sales Price information determined in the Price Point Study, the Total Estimated Tax Burden and Total Effective Tax Rate will be calculated, using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A, for each Residential Property land use category. If the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category, the Maximum Facilities Special Tax Rate shall not be adjusted and will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A. Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

If the Total Effective Tax Rate for any Residential Property land use category exceeds the Total Maximum Effective Tax Rate, the Developed Property Maximum Facilities Special Tax Rate set forth in Attachment A shall be reduced until the Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for that Residential Property land use category.

Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

Effective Tax Rate Evaluation Minimum Facilities Revenue As a result of the Effective Tax Rate Evaluation, if the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Developed Property Maximum Facilities Special Tax Rate for the applicable Residential Property land use category shall not be adjusted and the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment B. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

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If the calculated Total Effective Tax Rate exceeds the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in Attachment C. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

C.4. Future Assessor’s Parcel Changes – After an Effective Tax Rate Evaluation The Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue is not less than the total Effective Tax Rate Evaluation Minimum Facilities Revenue set forth in Attachment D of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be uniformly increased, on the Large Lot Property created from the Undeveloped Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Further, if the sum of the total current Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Effective Tax Rate Evaluation Maximum

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Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue.

Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi- Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-

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Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

C.5. Method of Apportionment of Facilities Special Tax
Using the definitions and procedures described herein, the CFD No. 22A IA2 Administrator shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax until the amount of Facilities Special Taxes equals the Facilities Special Tax Requirement. The Facilities Special Tax shall be levied each Fiscal Year until the Transition Year as follows:

Prior to an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Maximum Facilities Special Tax for Permit Ready Multi-Family/Non- Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Facilities Special Tax for Undeveloped Property.

After an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax

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shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Permit Ready Multi-Family/Non-Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Undeveloped Property.

D. SERVICES SPECIAL TAX
A Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA2 according to the Maximum Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

D.1. Prior to the Transition Event - Increase in the Maximum Services Special Tax Prior to the Transition Event, on each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates in effect for the previous Fiscal Year shall be increased by the Services Special Tax Escalation Factor.

D.2. Prior to the Transition Event - Method of Apportionment of Services Special Tax If, in any Fiscal Year prior to the Transition Year, the Facilities Special Tax is levied against each Assessor’s Parcel of Taxable Property within CFD No. 22A IA2 and the Facilities Special Tax revenues generated are insufficient to pay the Facilities Special Tax Requirement, such shortfall shall be deemed a component of the Services Special Tax Requirement in that Fiscal Year, and proceeds from the levy of the Services Special Tax shall first be applied to mitigate the shortfall in the Facilities Special Tax Requirement before being used to pay for Authorized Services. The Services Special Tax revenue shall not be applied to any Facilities Special Tax Requirement shortfalls attributable to Pay As You Go Costs authorized to be financed by CFD No. 22A IA2.

Using the definitions and procedures described herein, the CFD No. 22A IA2 Administrator shall determine the Services Special Tax Requirement and levy the Services Special Tax until the amount of Services Special Tax equals the Services Special Tax Requirement. The Services Special Tax shall be levied each Fiscal Year as follows:

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First: The Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Services Special Tax for Developed Property in order to satisfy the Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Services Special Tax Requirement after the first step has been completed, the Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Services Special Tax for Small Lot Final Map Property in order to satisfy the Services Special Tax Requirement.

Third: If additional monies are needed to satisfy the Services Special Tax Requirement after the second step has been completed, the Services Special Tax shall be levied Proportionately on all Permit-Ready Multi-Family/Non-Residential Property, Large Lot Property, and Undeveloped Property at a rate up to 100% of the Maximum Services Special Tax for Permit-Ready Multi- Family/Non-Residential Property, Large Lot Property, and Undeveloped Property in order to satisfy the Services Special Tax Requirement.

E. TRANSITION SERVICES SPECIAL TAX
A Transition Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA2 according to the Maximum Transition Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

E.1. After the Transition Event – Method of Apportionment of Transition Services Special Tax Using the definitions and procedures described herein, the CFD No. 22A IA2 Administrator shall determine the Transition Services Special Tax Requirement and levy the Transition Services Special Tax until the amount of Transition Services Special Tax equals the Transition Services Special Tax Requirement. The Transition Services Special Tax shall be levied each Fiscal Year as follows:

First: The Transition Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Transition Services Special Tax for Developed Property in order to satisfy the Transition Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Transition Services Special Tax Requirement after the first step has been completed, the Transition Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Transition Services Special Tax for Small Lot Final Map Property in order to satisfy the Transition Services Special Tax Requirement.

F. DELINQUENCIES
Notwithstanding the above, under no circumstances will the CFD No. 22A IA2 Facilities Special Tax levied against any Assessor’s Parcel of Developed Property classified as Residential Property, in any Fiscal Year, be increased as a consequence of the delinquency or default in the payment of the CFD No. 22A IA2 Facilities Special Taxes by the owner or owners of any other Taxable Property by more than ten percent (10%) above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.

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G. EXEMPTIONS
The CFD No. 22A IA2 Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Open Space Property, and Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement.

The Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for Taxable Property which will be transferred or dedicated to a public agency and will be classified as Public Property may be fully prepaid by the seller, pursuant to Section L, prior to the transfer/dedication of such Taxable Property. Until the Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for any such Taxable Property is prepaid, the Taxable Property shall continue to be subject to the levy of the Facilities Special Tax. An exception to this may be made if an Assessor’s Parcel of Public Property, such as a school site, is relocated to an Assessor’s Parcel of Taxable Property, in which case the Assessor’s Parcel of previously Public Property becomes Taxable Property and the Assessor’s Parcel of previously Taxable Property becomes Public Property. This trading of an Assessor’s Parcel from Taxable Property to Public Property will be permitted to the extent there is no loss in Maximum Facilities Special Tax revenue or, if applicable, Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue, and the transfer is agreed to by the owners of all Assessor’s Parcels involved in the transfer and the City Council.

If the use of an Assessor’s Parcel changes so that such Assessor’s Parcel is no longer eligible to be classified as one of the uses set forth in paragraph 1 of Section G. above that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the Special Tax.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcel that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

H. TRANSFERS
Prior to the issuance of the first series of Bonds within CFD No. 22A IA2, the City may permit the transfer of Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel. Before recordation of a Small Lot Final Subdivision Map, if a subdivision map is required, the City may permit a transfer if the number of planned Residential Units, Multi-Family Attached Property Acreage, or Non-Residential Property Acreage is transferred from one Assessor’s Parcel(s) to another Assessor’s Parcel(s) in any portion of Large Lot Property. The City may, in its sole discretion, allow for a transfer of the Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel provided such a transfer shall be allowed only if (1) all adjustments are

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agreed to in writing by the affected property owners and the City’s Finance Director, and (2) there is no reduction in the sum of the total Maximum Facilities Special Tax or sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax as a result of the transfer. Should a transfer result in an amendment to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, the requesting property owner shall bear the costs to affect the transfer in the CFD No. 22A IA2 records and prepare the required amendments to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment.

I. INTERPRETATIONS
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the Rate and Method of Apportionment. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

J. REVIEW/APPEALS
The CFD No. 22A IA2 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 22A IA2 Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified.

Any property owner may file a written appeal of the Special Tax with the CFD No. 22A IA2 Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD No. 22A IA2 Administrator shall review the appeal, meet with the appellant if the CFD No. 22A IA2 Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD No. 22A IA2 Administrator’s decision relative to the appeal, the owner may file a written notice with the City Manager of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action (if any by the City Manager of the City), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor’s Parcel. The decision of the City shall be final and binding to all persons. If the decision of the CFD No. 22A IA2 Administrator or subsequent decision by the City Manager of the City or City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

K. MANNER OF COLLECTION

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The annual 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. 22A IA2, may, at the sole discretion of the City, directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor’s Parcels of Taxable Property that are delinquent in the payment of Special Taxes.

L. PREPAYMENT IN PART OF FACILITIES SPECIAL TAX
The Facilities Special Tax obligation of an Assessor’s Parcel of Taxable Property may be partially prepaid as described herein; provided that there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of partial prepayment. An owner of an Assessor’s Parcel intending to partially prepay the Facilities Special Tax obligation shall provide the CFD No. 22A IA2 Administrator with written notice of intent to partially prepay. Within 30 days of receipt of such written notice, the CFD No. 22A IA2 Administrator shall notify such owner of the partial prepayment amount of such Assessor’s Parcel. Any partial prepayment must be submitted at least 60 days before the next occurring bond redemption date, and the proceeds of such prepayment shall be provided to the Trustee for application toward bond redemption in accordance with the Indenture. The CFD No. 22A IA2 Administrator may charge a fee for providing this service.

L.1. Partial Prepayment Amount
The Facilities Special Tax may be prepaid in an amount determined at the time of prepayment based on the portion of Bonds then outstanding; provided, however, that no partial prepayment shall be accepted in an amount equal to an annual Special Tax amount less than the annual Transition Services Special Tax rate escalated to the then current fiscal year less the then current Services Special Tax rate.

The “Partial Prepayment Amount” is calculated as follows:

Step 1: Determine the current Fiscal Year Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Maximum Facilities Special Tax described in Section C above. If an Effective Tax Rate Evaluation has occurred, determine the current Fiscal Year Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax described in Section C above.

If the Assessor’s Parcel is not already classified as Developed Property, the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) shall be assigned as though the Assessor’s Parcel was already designated as Developed Property.

Step 2: Calculate the annual revenue produced, by annually applying the Facilities Special Tax Escalation Factor, from the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) from the date of prepayment through the earlier of the end of the Facilities Special Tax Term or the Transition Event, except that this final date may be amended by the City no later than the time of the calculation of the prepayment. If the final date used in the prepayment calculation is amended by the City, this amended final date shall apply to any and all prepayment calculations from that point forward.

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Step 3: Calculate the present value of the Assessor’s Parcel’s annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) revenue stream determined in Step 2. The present value shall be calculated using a discount rate that earns a rate of interest that, when the prepayment is invested in City permitted and available investments, would produce annual revenues equal to the amounts calculated in Step 2.

If there are Outstanding Bonds at the time of the Partial Prepayment Amount calculation, the Partial Prepayment Amount shall be first allocated to the Redemption Amount. If the Partial Prepayment Amount is insufficient to fund the Redemption Amount, then the Partial Prepayment Amount shall be increased to equal the Redemption Amount.

The “Redemption Amount” is calculated as follows:

Step 1: Divide the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) computed pursuant to Step 1 of Section L.1 by the total Maximum Facilities Special Taxes (or total Effective Tax Rate Evaluation Maximum Facilities Special Taxes) for the entire CFD No. 22A IA2, based on the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) that could be charged in the current Fiscal Year if all Taxable Property were designated as Developed Property, excluding any Assessor’s Parcels which have prepaid the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) obligation (the “Prepayment Quotient”).

Step 2: Multiply the Prepayment Quotient by the Outstanding Bonds to compute the amount of Outstanding Bonds to be redeemed (the “Bond Redemption Amount”).

Step 3: Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed.

Step 4: Compute the amount needed to pay interest on the Bond Redemption Amount from the first Bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

Step 5: Determine that portion of Facilities Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year to satisfy the Facilities Special Tax Requirement, which have not yet been paid.

Step 6: A reserve fund credit shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture for the Bonds), if any, associated with the redemption of Outstanding Bonds as a result of the partial prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture for the Bonds) in effect after the redemption of Outstanding Bonds as a result of the partial prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. Such reserve fund credit will not decrease the balance in the reserve fund below the new reserve requirement.

Step 7: If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a

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capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Step 1 by the expected balance in the capitalized interest fund after such first interest payment.

Step 8: The redemption amount is equal to the sum of the amounts computed pursuant to Steps 2, 3, 4, and 5, less the amount computed pursuant to Steps 6 and 7 (the “Redemption Amount”).

If the Partial Prepayment Amount exceeds the Redemption Amount, then any remaining Partial Prepayment Amount, after allocating the Redemption Amount, shall be designated as Pay As You Go Costs.

The Partial Prepayment Amount shall include any fees or expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the cost of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

In addition, the City has the authority to adjust the Partial Prepayment Amount calculated above if a portion or all of the current property tax bill and the portion attributable to the payment of the Facilities Special Tax has not been used to make an interest and/or principal payment on the Bonds.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes), net of any priority administration, if any as defined in the Indenture, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed partial prepayment, is at least 1.1 times the annual debt service on all Outstanding Bonds to be paid from the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) in each Fiscal Year.

M. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied commencing in Fiscal Year 2027-2028 to the extent necessary to fully satisfy the Facilities Special Tax Requirement and shall be levied through the Facilities Special Tax Term.

The Services Special Tax shall be levied commencing in Fiscal Year 2027-2028 and shall be levied until the Transition Event to the extent necessary to fully satisfy the Services Special Tax Requirement.

The Transition Services Special Tax shall be levied commencing in the Fiscal Year following the Transition Event in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Transition Services Special Tax Requirement.

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ATTACHMENT A

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 2

MAXIMUM SPECIAL TAX RATES
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Maximum
Facilities Special
Tax Rate(1)
2026-2027
Maximum
Services Special
Tax Rate(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $3,770 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $3,067 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $2,959 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $2,357 $117 Residential Lot Other Taxable Property Any $15,000 $659 Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $3,770 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $3,067 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $2,959 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $2,357 $117 Residential Lot Other Taxable Property Any $15,000 $659 Acre
Permit Ready Multi-Family/Non-Residential Property $15,000 $659 Acre Large Lot Property $15,000 $659 Acre
Undeveloped Property $15,000 $659 Acre
(1) On each July 1, commencing on July 1, 2027, the Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year. (2) On each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates shall be increased by an amount equal to the Services Special Tax Escalation Factor of the Maximum Services Special Tax Rates in effect for the previous Fiscal Year.

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ATTACHMENT B

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 2

MINIMUM FACILITIES REVENUE
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
Planned Number
of Residential
Lots
2026-2027
Developed Property
Maximum Facilities
Special Tax Rate(1)(2)
2026-2027
Minimum
Facilities
Revenue (1)(3)
Developed Property:

Single-Family Detached Property – SF Zoning Any 55 $3,770 $207,350 Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 60 $3,067 $184,020 Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 81 $2,959 $239,679 Single-Family Detached Property – MLD Zoning Any 72 $2,357 $169,704 Other Taxable Property Any 0 $15,000 $0
Total Minimum Facilities Revenue(4) $800,753
(1) On each July 1, commencing on July 1, 2027, the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year. (2) As a result of future Assessor’s Parcel changes, described in Section C.2, the assigned Maximum Facilities Special Tax Rates for Developed Property may exceed the Developed Property Maximum Facilities Special Tax Rates set forth in this table. (3) The total Minimum Facilities Revenue may be decreased as result of a portion of Maximum Facilities Special Tax obligations being prepaid pursuant to Section L.
(4) Based upon the Developed Property Maximum Facilities Special Tax Rate for Single-Family Detached Property in Improvement Area No. 2.

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ATTACHMENT C

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 2

EFFECTIVE TAX RATE EVALUATION MAXIMUM FACILITIES SPECIAL TAX RATES (FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Permit Ready Multi-Family/Non-Residential Property $_________ Acre Large Lot Property $_________ Acre
Undeveloped Property $_________ Acre
(1) Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates will be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year.

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ATTACHMENT D

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 2

EFFECTIVE TAX RATE EVALUATION MINIMUM FACILITIES REVENUE (FISCAL YEAR 2026-2027)
Land Use Category Lot / Village #
Planned Number
of Residential
Lots / Acres(1)
2026-2027
Developed Property
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2)(3)
2026-2027
Effective Tax Rate
Evaluation
Minimum Facilities
Revenue(1)(2)(4)
Developed Property:

Single-Family Detached Property – SF Zoning Any 55 $_________ $_________ Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 60 _________ _________ Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 81 _________ _________ Single-Family Detached Property – MLD Zoning Any 72 _________ _________ Other Taxable Property Any 0 _________ _________
Total Effective Tax Rate Evaluation Minimum
Facilities Revenue(5)
$_________
(1) Planned Number of Residential Units/Acres, Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate and Effective Tax Rate Evaluation Minimum Facilities Revenue to be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue in effect for the previous Fiscal Year. (3) As a result of future Assessor’s Parcel changes, described in Section C.3, the assigned Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates may exceed the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in this table.
(4) The total Effective Tax Rate Evaluation Minimum Facilities Revenue may be decreased as result of a portion of Effective Tax Rate Evaluation Maximum Facilities Special Tax obligations being prepaid pursuant to Section L. (5) Based upon the total Effective Developed Property Maximum Facilities Special Tax Rate Evaluation for Single-Family Detached Property in Improvement Area No. 2.

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ATTACHMENT E

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 2

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D-3

EXHIBIT D-3

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA NO. 3

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RATE AND METHOD OF APPORTIONMENT FOR

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
IMPROVEMENT AREA 3
A Special Tax, as hereinafter defined, shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 3 of the City of Folsom Community Facilities District No. 22A (Folsom Heights) (CFD No. 22A IA3) and collected each Fiscal Year in an amount determined by the CFD No. 22A IA3 Administrator through the application of the Rate and Method of Apportionment as described below. All of the real property within CFD No. 22A IA3, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. GENERAL DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map and secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Large Lot Map, Small Lot Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel.

If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS. The square footage of an Assessor’s Parcel is equal to the Acreage of such parcel multiplied by 43,560.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.
“Assessor’s Parcel Map” means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number.
“Authorized Services” means the services authorized to be financed by CFD No. 22A IA3. “Average Sales Price” means the estimated average net price of new homes with options and upgrades by product category, as identified in the most recent Price Point Study for the CFD 22A IA3 market area.
“Bond Year” means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year, unless defined differently in the applicable Indenture. “Bonds” means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 22A IA3 under the Act.
“CFD No. 22A IA3” means City of Folsom Community Facilities District No. 22A IA3 (Folsom Heights). “CFD No. 22A IA3 Administrator” means the City’s Finance Director, or designee thereof, responsible for determining the Facilities Special Tax Requirement, Services Special Tax Requirement, and

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Transition Services Special Tax Requirement and providing for the levy and collection of the Special Taxes.
“City” means the City of Folsom.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 22A IA3. “County” means the County of Sacramento.
“Developed Property” means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued prior to June 30 of the previous Fiscal Year. “Effective Tax Rate Evaluation” means an evaluation of the Total Effective Tax Rate of Residential Property at the time of such evaluation. The Effective Tax Rate Evaluation will be based upon a prepared Price Point Study to determine the Total Effective Tax Rate for Residential Property, based upon the calculated Total Estimated Tax Burden.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, as determined during the Effective Tax Rate Evaluation, in accordance with the provisions of Section C.3, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property that will be set forth in Attachment C, following the Effective Tax Rate Evaluation, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Effective Tax Rate Evaluation Minimum Facilities Revenue” means, following the Effective Tax Rate Evaluation, the total minimum amount of CFD No. 22A IA3 Effective Tax Rate Evaluation Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor after the Fiscal Year in which the Effective Tax Rate Evaluation occurs, less any Effective Tax Rate Evaluation Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Effective Tax Rate Evaluation Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment D of this Rate and Method of Apportionment.
“Exempt Property” means all Assessors’ Parcels that are exempt from the Special Tax pursuant to Section G.
“Facilities Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Facilities Special Tax including, but not limited to, the following: the costs of computing the Facilities Special Tax and preparing the annual Facilities Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Facilities Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Facilities Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 22A IA3, or any designee thereof of complying with arbitrage rebate requirements or responding to questions from the IRS or SEC pertaining to any Bonds or any audit of any Bonds by the SEC or IRS; the costs to the City, CFD No. 22A IA3, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to

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applicable state or federal securities law; the costs associated with preparing Facilities Special Tax disclosure statements and responding to public inquiries regarding the Facilities Special Taxes; the costs of the City, CFD No. 22A IA3, or any designee thereof related to any appeal of the levy or application of the Facilities Special Tax; the costs associated with the release of funds from an escrow account, if any; and the costs associated with computing and preparing the Effective Tax Rate Evaluation, including the Price Point Study. Facilities Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA3 for any other administrative purposes, including, but not limited to, attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Facilities Special Taxes. “Facilities Special Tax” means the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement. “Facilities Special Tax Escalation Factor” means two percent (2%) annually. “Facilities Special Tax Requirement” means that amount of Special Tax revenue required in any Fiscal Year for CFD No. 22A IA3 to: (i) pay Facilities Administrative Expenses in an amount designated by the City; (ii) pay annual debt service on all Outstanding Bonds due in the Bond Year beginning in such Fiscal Year; (iii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year and known upcoming delinquencies; and (vi) pay for Pay As You Go Costs; less (vii) a credit for funds available to reduce the annual Facilities Special Tax levy as determined by the CFD No. 22A IA3 Administrator pursuant to the Indenture. “Facilities Special Tax Term” means the earlier of Fiscal Year 2086-2087 or the Fiscal Year occurring 50 years following the Fiscal Year in which the first building permit was issued, or the first series of Bonds was issued within CFD No. 22A IA3.
“Fiscal Year” means the period starting July 1 and ending on the following June 30. “Indenture” means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Large Lot Map” means a recorded subdivision map creating larger parcels by land use. The Large Lot Map does not create individual lots for which building permits may be issued for single-family Residential Units.
“Large Lot Property” means, for each Fiscal Year, all Taxable Property for which a Large Lot Map was recorded prior to June 30 of the previous Fiscal Year, excluding any portion(s) thereof classified as Developed Property, Small Lot Final Map Property, or Permit Ready Multi-Family/Non-Residential Property. Large Lot Property also means, for each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property as of June 30 of the previous Fiscal Year.

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“Maximum Facilities Special Tax” means the total maximum annual Facilities Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Facilities Special Tax Rate” means the maximum annual Facilities Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax” means the total maximum annual Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax Rate” means the maximum annual Services Special Tax rate for each land use category of Taxable Property, as shown in Attachment A, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Special Tax” means, prior to the Transition Year, the total annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and Maximum Services Special Tax, determined in accordance with the provisions of Section C and Section D, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

Beginning in the Transition Year, “Maximum Special Tax”, also means the total annual Maximum Transition Services Special Tax, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Maximum Total Effective Tax Rate” means 1.80%, unless the City determines, in its sole discretion, that a higher Maximum Total Effective Tax Rate is appropriate. “Maximum Transition Services Special Tax” means, beginning in the Transition Year, the maximum amount, determined in accordance with the provisions of Section D, which may be levied in any Fiscal Year following the Transition Event on any Assessor’s Parcel of Taxable Property. “Minimum Facilities Revenue” means the minimum amount of total CFD No. 22A IA3 Maximum Facilities Special Tax, as adjusted annually by the Facilities Special Tax Escalation Factor, less any Maximum Facilities Special Tax amounts partially prepaid pursuant to Section L. The Minimum Facilities Revenue, based on Planned Development, is set forth in Attachment B of this Rate and Method of Apportionment. Following the Transition Event, the Minimum Facilities Revenue shall be zero.
“Non-Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing non-residential buildings. “Open Space Property” means property within the boundaries of CFD No. 22A IA3 which (a) has been designated with specific boundaries and acreage on a Small Lot Final Subdivision Map as open space, or (b) is classified by the City zoning code or County Assessor as open space, or (c) has been irrevocably offered for dedication as open space to the federal government, the State of California, the County, the City, any other public agency, a private, non-profit organization, or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space.

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“Other Taxable Property” means all other land uses of Taxable Property, for which a building permit for new construction can be issued. Other Taxable Property does not include Residential Property and Non-Residential Property land use categories.
“Outstanding Bonds” means all Bonds, which remain outstanding as defined in the Indenture pursuant to which such Bonds were issued.
“Pay As You Go Costs” means that portion of the Facilities Special Tax Requirement attributable to the direct payment for the acquisition and/or construction of public improvements, which are authorized to be financed by CFD No. 22A IA3.
“Permit Ready Multi-Family/Non-Residential Property” means an Assessor’s Parcel of Taxable Property zoned for multi-family or non-residential land use for which all discretionary entitlements have been obtained, including, without limitation, development plan review and improvement plan approval, such that building permits may be issued without further approvals for the construction of multi-family Residential Units or non-residential buildings within such Assessor’s Parcel. The City shall have sole discretion, based upon available development information, in classifying an Assessor’s Parcel as Permit Ready Multi-Family/Non-Residential Property. “Planned Development” means the planned number of Residential Lots, Permit Ready Multi- Family/Non-Residential Property Acreage planned within CFD No. 22A IA3, set forth in Attachment B or, following the Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, as amended by the future recordation of all Large Lot Maps and Small Lot Final Subdivision Maps within CFD No. 22A IA3.
“Price Point Study” means an analysis, prepared by an independent firm, to verify the estimated Average Sales Price within each land use category of Residential Property given the project location and current market conditions.
“Property Owner Association Property” means any property within the boundaries of CFD No. 22A IA3, which is (a) owned by a property owner association or (b) designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property owner association property. As used in this definition, a property owner association includes any master or sub-association. “Proportionately” means for Taxable Property that the ratio of the Facilities Special Tax levy to the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) and the Services Special Tax levy to the Maximum Services Special Tax is equal for all Assessors’ Parcels within each classification (Developed Property, Single Family Final Map Property, Permit Ready Multi- Family/Non-Residential Property, Large Lot Property, etc.) within CFD No. 22A IA3. “Public Property” means any property within the boundaries of CFD No. 22A IA3, which (a) is owned by a public agency, (b) has been irrevocably offered for dedication to a public agency, or (c) is designated with specific boundaries and Acreage on a Small Lot Final Subdivision Map as property, which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City, or any other public agency.

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“Residential Lot” means an individual lot of land for which a building permit could be issued to construct a Residential Unit.
“Residential Property” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing Residential Units, including Single-Family Detached Property – SF/SFHD Zoning, Single-Family Detached Property – MLD Zoning Property. “Residential Unit” means a residential dwelling unit, including accessory dwelling units, as allowed by the City zoning code.
“Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Services Special Tax including, but not limited to, the following: the costs of computing the Services Special Taxes and preparing the annual Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Services Special Tax; and the costs of the City, CFD No. 22A IA3, or any designee thereof related to any appeal of the levy or application of the Services Special Tax. Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA3 for any other administrative purposes related to the Services Special Tax.
“Services Special Tax” means, prior to the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Services Special Tax Requirement.
“Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Services Special Tax Requirement” means the amount of Services Special Tax revenue required for CFD No. 22A IA3, before the Transition Year, to (i) pay Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) cover any shortfalls that exist if, in any Fiscal Year, the levy of the Facilities Special Tax on each Assessor’s Parcel of Taxable Property is insufficient to pay the Facilities Special Tax Requirement in that Fiscal Year. Facilities Special Tax Requirement shortfalls shall not include Pay As You Go Costs, and (v) pay for reasonably anticipated delinquent Services Special Taxes based on the delinquency rate for Services Special Taxes levied in the previous Fiscal Year; less (vi) a credit for funds available to reduce the annual Services Special Tax levy as determined by the CFD No. 22A IA3 Administrator.
“Single-Family Detached Property – MLD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more detached or attached Residential Units with a permitted density range of 7-12 Residential Units per Acre and more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

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“Single-Family Detached Property – SF Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SF Zoning shall consist of single-family property with a permitted density range of 1-4 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council.

Single-Family Detached Property – SFHD Zoning” means, for each Fiscal Year, all Taxable Property for which a building permit could be issued for purposes of constructing one or more Residential Units.

Single-Family Detached Property – SFHD Zoning shall consist of single-family property with a permitted density range of 4-7 Residential Units per Acre, which is more fully described in the Folsom Plan Area Specific Plan adopted on June 28, 2011 and as amended by the City Council. “Special Tax” means, before the Transition Year, the annual Facilities Special Tax and Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Facilities Special Tax Requirement and the Services Special Tax Requirement; and, beginning in the Transition Year, the annual Transition Services Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement. “Small Lot Final Map Property” means, for each Fiscal Year, all Taxable Property for which a Small Lot Final Subdivision Map was recorded prior to June 30 of the previous Fiscal Year. “Small Lot Final Map Remainder Property” means an Assessor’s Parcel that is created from the subdivision of Large Lot Property by the recordation of a Small Lot Final Subdivision Map that has not yet been mapped for final development approval. Small Lot Final Map Remainder Property is that portion of property for which the Small Lot Final Subdivision Map definition does not apply (i.e., does not contain individual lots for which building permits may be issued for Residential Units without further subdivision of such property). Each Fiscal Year, all Taxable Property classified as Small Lot Final Map Remainder Property, as of June 30 of the previous Fiscal Year, will be considered Large Lot Property.
“Small Lot Final Subdivision Map” means a subdivision of property created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City 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 for Residential Units without further subdivision of such property. “State” means the State of California.
“Taxable Property” means all of the Assessor’s Parcels within the boundaries of CFD No. 22A IA3 that are not exempt from the CFD No. 22A IA3 Special Tax pursuant to law or Section F below. “Total Effective Tax Rate” means the percentage of the Total Estimated Tax Burden as compared to the estimated average sales price identified in the Price Point Study for each land use category of Residential Property.
“Total Estimated Tax Burden” means the total amount of overlapping property taxes anticipated to be levied upon a Residential Unit, based upon the estimated Average Sales Price identified in the most

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recently completed Price Point Study and existing property tax rates for the current Fiscal Year.

Existing property tax rates shall reflect the actual property tax rates— excluding utility-related fees and charges and PACE loans— levied upon Taxable Property in the Fiscal Year that the Effective Tax Rate Evaluation is completed.
“Transition Event” means the earlier of (i) Fiscal Year 2086-2087 or (ii) the Fiscal Year when the CFD No. 22A IA3 Administrator determines that both of the following events have occurred (1) all Bonds secured by the levy and collection of the Facilities Special Tax in CFD No. 22A IA3 have been fully repaid and the City determines that no additional Bonds are to be issued, and (2) all Facilities Administrative Expenses have been paid or reimbursed to CFD No. 22A IA3. “Transition Services Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of the Transition Services Special Tax including, but not limited to, the following: the costs of computing the Transition Services Special Taxes and preparing the annual Transition Services Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Transition Services Special Taxes (whether by the County, the City, or otherwise); the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Transition Services Special Tax; and the costs of the City, CFD No. 22A IA3, or any designee thereof related to any appeal of the levy or application of the Transition Services Special Tax. Transition Services Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 22A IA3 for any other administrative purposes related to the Transition Services Special Tax.
“Transition Services Special Tax” means, after the Transition Event, the annual Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Transition Services Special Tax Requirement.
“Transition Services Special Tax Escalation Factor” means the maximum of two percent (2%) or the June annualized percentage change of the Consumer Price Index for all Urban Consumers, for the San Francisco-Oakland-Hayward area, not to exceed four percent (4%). “Transition Services Special Tax Rate” means, calculated in the Transition Year, the amount equal to the prior Fiscal Year’s Maximum Services Special Tax Rate plus fifty percent (50%) of the prior Fiscal Year’s Maximum Facilities Special Tax Rate. The Transition Services Special Tax Escalation Factor shall be applied beginning in the Transition Year. Following the Transition Year, the Transition Services Special Tax Rate shall be equal to the prior Fiscal Year’s Transition Services Special Tax Rate, increased by the Transition Services Special Tax Escalation Factor. “Transition Services Special Tax Requirement” means the amount of Transition Services Special Tax revenue required for CFD No. 22A IA3, beginning in the Transition Year, to (i) pay Transition Services Administrative Expenses in an amount designated by the City; (ii) pay Authorized Services expenses; (iii) pay any amounts required to establish or replenish any repair, replacement and contingency funds, capital improvement funds, or reserve funds related to the Authorized Services expenses; (iv) pay for reasonably anticipated delinquent Transition Services Special Taxes based on the delinquency rate for Transition Services Special Taxes levied in the previous Fiscal Year; less (v) a credit for funds

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available to reduce the annual Transition Services Special Tax levy as determined by the CFD No. 22A IA3 Administrator.
“Transition Year” means the first year in which the CFD No. 22A IA3 Administrator determines that the Transition Event occurred in the prior Fiscal Year. “Trustee” means the entity appointed pursuant to an Indenture to act as the trustee, fiscal agent, or paying agent or a combination thereof.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, or Large Lot Property.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 22A IA3 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcels that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, using City and County records, City zoning information, and land use development plans, all Assessor’s Parcels within the boundaries of CFD No. 22A IA3 shall be designated as either Taxable Property or Exempt Property.

All Taxable Property shall be further classified as Developed Property, Small Lot Final Map Property, Permit Ready Multi-Family/Non-Residential Property, Large Lot Property, or Undeveloped Property and shall be subject to the levy of the annual Special Tax determined pursuant to Sections C and D below.

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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 10
C. FACILITIES SPECIAL TAX
Prior to the Transition Year, a Maximum Facilities Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA3 according to the Maximum Facilities Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

Once assigned, the sum of the total Maximum Facilities Special Tax shall be equal to or greater than the Minimum Facilities Revenue, unless adjusted by an Effective Tax Rate Evaluation as described below. The Minimum Facilities Revenue for Fiscal Year 2027-2028 is set forth in Attachment B of this Rate and Method of Apportionment.

C.1. Increase in the Maximum Facilities Special Tax
On each July 1, commencing on July 1, 2028, the Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year shall be increased by the Facilities Special Tax Escalation Factor.

C.2. Future Assessor’s Parcel Changes – Prior to an Effective Tax Rate Evaluation The Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Maximum Facilities Special Tax revenue is not less than the Minimum Facilities Revenue set forth in Attachment B of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall be uniformly increased on the Large Lot Property created from the Undeveloped Property subdivision until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Further, if the sum of the total current Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, the Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this

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Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and/or Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property and/or Permit Ready Multi-Family/Non-Residential Property, the Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is greater than or equal to the Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Maximum Facilities Special Tax is less than the Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Maximum Facilities Special Tax is equal to the Minimum Facilities Revenue. Attachment B of this Rate and Method of Apportionment shall be updated to reflect any increases to the Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

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C.3. Effective Tax Rate Evaluation
Prior to the issuance of the first series of Bonds within CFD No. 22A IA3 an Effective Tax Rate Evaluation will be completed. Following the Effective Tax Rate Evaluation, Attachment C of this Rate and Method of Apportionment will be updated to reflect the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for all Taxable Property in CFD No. 22A IA3.

Additionally, prior to the issuance of the first series of Bonds, the Developer may, one time, at their discretion, further reduce the Maximum Facilities Special Tax Rate for any or all Taxable Property in CFD No. 22A IA3 to an amount less than the rates produced in the Effective Tax Rate Evaluation. If reduced, the reduction will be applied uniformly by land use category.

Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates As part of the Effective Tax Rate Evaluation, a Price Point Study will be prepared and an estimated Average Sales Price will be established for each Residential Property land use category. Using the estimated Average Sales Price information determined in the Price Point Study, the Total Estimated Tax Burden and Total Effective Tax Rate will be calculated, using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A, for each Residential Property land use category. If the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category, the Maximum Facilities Special Tax Rate shall not be adjusted and will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment A. Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

If the Total Effective Tax Rate for any Residential Property land use category exceeds the Total Maximum Effective Tax Rate, the Developed Property Maximum Facilities Special Tax Rate set forth in Attachment A shall be reduced until the Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for that Residential Property land use category.

Attachment C of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category.

Effective Tax Rate Evaluation Minimum Facilities Revenue As a result of the Effective Tax Rate Evaluation, if the calculated Total Effective Tax Rate is less than or equal to the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Developed Property Maximum Facilities Special Tax Rate for the applicable Residential Property land use category shall not be adjusted and the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Maximum Facilities Special Tax Rates set forth in Attachment B. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

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If the calculated Total Effective Tax Rate exceeds the Total Maximum Effective Tax Rate for a Residential Property land use category used in the Minimum Facilities Revenue calculation, the Effective Tax Rate Evaluation Developed Property Maximum Facilities Special Tax Rate will be assigned using the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in Attachment C. Attachment D of this Rate and Method of Apportionment will be updated to set forth the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate for each Residential Property land use category and the Effective Tax Rate Evaluation Minimum Facilities Revenue.

C.4. Future Assessor’s Parcel Changes – After an Effective Tax Rate Evaluation The Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be assigned to all future Assessor’s Parcel(s) created from a subdivision, lot line adjustment, or merger of one or more Assessor’s Parcels so that the revised sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue is not less than the total Effective Tax Rate Evaluation Minimum Facilities Revenue set forth in Attachment D of this Rate and Method of Apportionment.

Undeveloped Property Subdividing into Large Lot Property When Undeveloped Property subdivides into Large Lot Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any Large Lot Property and any remaining Undeveloped Property shall be based upon the Planned Development for the Large Lot Property and remaining Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax generated by all of the Taxable Property is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property created from the Undeveloped Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non- Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be uniformly increased, on the Large Lot Property created from the Undeveloped Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Further, if the sum of the total current Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Large Lot Property and any remaining Undeveloped Property created from the Undeveloped Property subdivision shall be uniformly increased until the sum of the total current Effective Tax Rate Evaluation Maximum

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Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue.

Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Undeveloped Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property.

Large Lot Property Subdividing into Small Lot Final Map Property and Permit Ready Multi- Family/Non-Residential Property
When Large Lot Property subdivides into Small Lot Final Map Property or Permit Ready Multi- Family/Non-Residential Property, the Effective Tax Rate Evaluation Maximum Facilities Special Tax shall be calculated for all Taxable Property as if all of the Taxable Property was classified as Developed Property. If the Large Lot Property subdivision also creates Small Lot Final Map Remainder Property, the expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Small Lot Final Map Remainder Property shall be based upon the Planned Development for the Small Lot Final Map Remainder Property. The expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax for any remaining Large Lot Property and Undeveloped Property shall be based upon the Planned Development of the Large Lot Property and the Undeveloped Property.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is greater than or equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue, there will be no further adjustments to the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates for the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi-Family/Non-Residential Property created from the Large Lot Property subdivision.

If the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is less than the Effective Tax Rate Evaluation Minimum Facilities Revenue, and such difference is not eliminated by the partial prepayment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax pursuant to Section L, the Developed Property, Small Lot Final Map Property and Permit Ready Multi-Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be Proportionately increased, on the Small Lot Final Map Property, Small Lot Final Map Remainder Property and Permit Ready Multi- Family/Non-Residential Property created from the Large Lot Property subdivision, until the sum of the total expected Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax is equal to the Effective Tax Rate Evaluation Minimum Facilities Revenue. Attachment D of this Rate and Method of Apportionment shall be updated to reflect any increases to the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates from the Large Lot Property subdivision. The Developed Property, Small Lot Final Map Property and Permit Ready Multi-

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Family/Non-Residential Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall not be adjusted for any Taxable Property already classified as Developed Property, Small Lot Final Map Property or Permit Ready Multi-Family/Non-Residential Property created prior to the Large Lot Property subdivision.

C.5. Method of Apportionment of Facilities Special Tax
Using the definitions and procedures described herein, the CFD No. 22A IA3 Administrator shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax until the amount of Facilities Special Taxes equals the Facilities Special Tax Requirement. The Facilities Special Tax shall be levied each Fiscal Year until the Transition Year as follows:

Prior to an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Maximum Facilities Special Tax for Permit Ready Multi-Family/Non- Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Maximum Facilities Special Tax for Undeveloped Property.

After an Effective Tax Rate Evaluation
First: The Facilities Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Developed Property in order to satisfy the Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first step has been completed, the Facilities Special Tax

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shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Small Lot Final Map Property.

Third: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first two steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Permit Ready Multi-Family/Non-Residential Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Permit Ready Multi-Family/Non-Residential Property.

Fourth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first three steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Large Lot Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Large Lot Property.

Fifth: If additional monies are needed to satisfy the Facilities Special Tax Requirement (excluding Pay As You Go Costs) after the first four steps have been completed, the Facilities Special Tax shall be levied Proportionately on all Undeveloped Property at a rate up to 100% of the Effective Tax Rate Evaluation Maximum Facilities Special Tax for Undeveloped Property.

D. SERVICES SPECIAL TAX
A Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA3 according to the Maximum Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

D.1. Prior to the Transition Event - Increase in the Maximum Services Special Tax Prior to the Transition Event, on each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates in effect for the previous Fiscal Year shall be increased by the Services Special Tax Escalation Factor.

D.2. Prior to the Transition Event - Method of Apportionment of Services Special Tax If, in any Fiscal Year prior to the Transition Year, the Facilities Special Tax is levied against each Assessor’s Parcel of Taxable Property within CFD No. 22A IA3 and the Facilities Special Tax revenues generated are insufficient to pay the Facilities Special Tax Requirement, such shortfall shall be deemed a component of the Services Special Tax Requirement in that Fiscal Year, and proceeds from the levy of the Services Special Tax shall first be applied to mitigate the shortfall in the Facilities Special Tax Requirement before being used to pay for Authorized Services. The Services Special Tax revenue shall not be applied to any Facilities Special Tax Requirement shortfalls attributable to Pay As You Go Costs authorized to be financed by CFD No. 22A IA3.

Using the definitions and procedures described herein, the CFD No. 22A IA3 Administrator shall determine the Services Special Tax Requirement and levy the Services Special Tax until the amount of Services Special Tax equals the Services Special Tax Requirement. The Services Special Tax shall be levied each Fiscal Year as follows:

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First: The Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Services Special Tax for Developed Property in order to satisfy the Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Services Special Tax Requirement after the first step has been completed, the Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Services Special Tax for Small Lot Final Map Property in order to satisfy the Services Special Tax Requirement.

Third: If additional monies are needed to satisfy the Services Special Tax Requirement after the second step has been completed, the Services Special Tax shall be levied Proportionately on all Permit-Ready Multi-Family/Non-Residential Property, Large Lot Property, and Undeveloped Property at a rate up to 100% of the Maximum Services Special Tax for Permit-Ready Multi- Family/Non-Residential Property, Large Lot Property, and Undeveloped Property in order to satisfy the Services Special Tax Requirement.

E. TRANSITION SERVICES SPECIAL TAX
A Transition Services Special Tax shall be assigned to all Taxable Property within CFD No. 22A IA3 according to the Maximum Transition Services Special Tax Rates set forth in Attachment A of this Rate and Method of Apportionment.

E.1. After the Transition Event – Method of Apportionment of Transition Services Special Tax Using the definitions and procedures described herein, the CFD No. 22A IA3 Administrator shall determine the Transition Services Special Tax Requirement and levy the Transition Services Special Tax until the amount of Transition Services Special Tax equals the Transition Services Special Tax Requirement. The Transition Services Special Tax shall be levied each Fiscal Year as follows:

First: The Transition Services Special Tax shall be levied Proportionately on all Developed Property at a rate up to 100% of the Maximum Transition Services Special Tax for Developed Property in order to satisfy the Transition Services Special Tax Requirement.

Second: If additional monies are needed to satisfy the Transition Services Special Tax Requirement after the first step has been completed, the Transition Services Special Tax shall be levied Proportionately on all Small Lot Final Map Property at a rate up to 100% of the Maximum Transition Services Special Tax for Small Lot Final Map Property in order to satisfy the Transition Services Special Tax Requirement.

F. DELINQUENCIES
Notwithstanding the above, under no circumstances will the CFD No. 22A IA3 Facilities Special Tax levied against any Assessor’s Parcel of Developed Property classified as Residential Property, in any Fiscal Year, be increased as a consequence of the delinquency or default in the payment of the CFD No. 22A IA3 Facilities Special Taxes by the owner or owners of any other Taxable Property by more than ten percent (10%) above the amount that would have been levied against such Assessor’s Parcel in such Fiscal Year had there been no delinquencies or defaults.

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G. EXEMPTIONS
The CFD No. 22A IA3 Administrator shall classify the following as Exempt Property: Public Property, Property Owner Association Property, Open Space Property, and Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement.

The Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for Taxable Property which will be transferred or dedicated to a public agency and will be classified as Public Property may be fully prepaid by the seller, pursuant to Section L, prior to the transfer/dedication of such Taxable Property. Until the Maximum Facilities Special Tax obligation or, if applicable, the Effective Tax Rate Evaluation Maximum Facilities Special Tax obligation for any such Taxable Property is prepaid, the Taxable Property shall continue to be subject to the levy of the Facilities Special Tax. An exception to this may be made if an Assessor’s Parcel of Public Property, such as a school site, is relocated to an Assessor’s Parcel of Taxable Property, in which case the Assessor’s Parcel of previously Public Property becomes Taxable Property and the Assessor’s Parcel of previously Taxable Property becomes Public Property. This trading of an Assessor’s Parcel from Taxable Property to Public Property will be permitted to the extent there is no loss in Maximum Facilities Special Tax revenue or, if applicable, Effective Tax Rate Evaluation Maximum Facilities Special Tax revenue, and the transfer is agreed to by the owners of all Assessor’s Parcels involved in the transfer and the City Council.

If the use of an Assessor’s Parcel changes so that such Assessor’s Parcel is no longer eligible to be classified as one of the uses set forth in paragraph 1 of Section G. above that would make such Assessor’s Parcel eligible to continue to be classified as Exempt Property, such Assessor’s Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property and subject to the Special Tax.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Bonds, as applicable, any Assessor’s Parcel that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

H. TRANSFERS
Prior to the issuance of the first series of Bonds within CFD No. 22A IA3, the City may permit the transfer of Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel. Before recordation of a Small Lot Final Subdivision Map, if a subdivision map is required, the City may permit a transfer if the number of planned Residential Units, Multi-Family Attached Property Acreage, or Non-Residential Property Acreage is transferred from one Assessor’s Parcel(s) to another Assessor’s Parcel(s) in any portion of Large Lot Property. The City may, in its sole discretion, allow for a transfer of the Maximum Facilities Special Tax or Effective Tax Rate Evaluation Maximum Facilities Special Tax from one Assessor’s Parcel to another Assessor’s Parcel provided such a transfer shall be allowed only if (1) all adjustments are

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agreed to in writing by the affected property owners and the City’s Finance Director, and (2) there is no reduction in the sum of the total Maximum Facilities Special Tax or sum of the total Effective Tax Rate Evaluation Maximum Facilities Special Tax as a result of the transfer. Should a transfer result in an amendment to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment, the requesting property owner shall bear the costs to affect the transfer in the CFD No. 22A IA3 records and prepare the required amendments to Attachment B or, following an Effective Tax Rate Evaluation, Attachment D of this Rate and Method of Apportionment.

I. INTERPRETATIONS
The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the Rate and Method of Apportionment. In addition, the interpretation and application of any section of this document shall be at the City’s discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

J. REVIEW/APPEALS
The CFD No. 22A IA3 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 22A IA3 Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified.

Any property owner may file a written appeal of the Special Tax with the CFD No. 22A IA3 Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The CFD No. 22A IA3 Administrator shall review the appeal, meet with the appellant if the CFD No. 22A IA3 Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD No. 22A IA3 Administrator’s decision relative to the appeal, the owner may file a written notice with the City Manager of the City appealing the amount of the Special Tax levied on such Assessor’s Parcel. If following such consultation and action (if any by the City Manager of the City), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor’s Parcel. The decision of the City shall be final and binding to all persons. If the decision of the CFD No. 22A IA3 Administrator or subsequent decision by the City Manager of the City or City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years’ Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

K. MANNER OF COLLECTION

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The annual 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. 22A IA3, may, at the sole discretion of the City, directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner as necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor’s Parcels of Taxable Property that are delinquent in the payment of Special Taxes.

L. PREPAYMENT IN PART OF FACILITIES SPECIAL TAX
The Facilities Special Tax obligation of an Assessor’s Parcel of Taxable Property may be partially prepaid as described herein; provided that there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of partial prepayment. An owner of an Assessor’s Parcel intending to partially prepay the Facilities Special Tax obligation shall provide the CFD No. 22A IA3 Administrator with written notice of intent to partially prepay. Within 30 days of receipt of such written notice, the CFD No. 22A IA3 Administrator shall notify such owner of the partial prepayment amount of such Assessor’s Parcel. Any partial prepayment must be submitted at least 60 days before the next occurring bond redemption date, and the proceeds of such prepayment shall be provided to the Trustee for application toward bond redemption in accordance with the Indenture. The CFD No. 22A IA3 Administrator may charge a fee for providing this service.

L.1. Partial Prepayment Amount
The Facilities Special Tax may be prepaid in an amount determined at the time of prepayment based on the portion of Bonds then outstanding; provided, however, that no partial prepayment shall be accepted in an amount equal to an annual Special Tax amount less than the annual Transition Services Special Tax rate escalated to the then current fiscal year less the then current Services Special Tax rate.

The “Partial Prepayment Amount” is calculated as follows:

Step 1: Determine the current Fiscal Year Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Maximum Facilities Special Tax described in Section C above. If an Effective Tax Rate Evaluation has occurred, determine the current Fiscal Year Effective Tax Rate Evaluation Maximum Facilities Special Tax for the Assessor’s Parcel based on the assignment of the Effective Tax Rate Evaluation Maximum Facilities Special Tax described in Section C above.

If the Assessor’s Parcel is not already classified as Developed Property, the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) shall be assigned as though the Assessor’s Parcel was already designated as Developed Property.

Step 2: Calculate the annual revenue produced, by annually applying the Facilities Special Tax Escalation Factor, from the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) from the date of prepayment through the earlier of the end of the Facilities Special Tax Term or the Transition Event, except that this final date may be amended by the City no later than the time of the calculation of the prepayment. If the final date used in the prepayment calculation is amended by the City, this amended final date shall apply to any and all prepayment calculations from that point forward.

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Step 3: Calculate the present value of the Assessor’s Parcel’s annual Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) revenue stream determined in Step 2. The present value shall be calculated using a discount rate that earns a rate of interest that, when the prepayment is invested in City permitted and available investments, would produce annual revenues equal to the amounts calculated in Step 2.

If there are Outstanding Bonds at the time of the Partial Prepayment Amount calculation, the Partial Prepayment Amount shall be first allocated to the Redemption Amount. If the Partial Prepayment Amount is insufficient to fund the Redemption Amount, then the Partial Prepayment Amount shall be increased to equal the Redemption Amount.

The “Redemption Amount” is calculated as follows:

Step 1: Divide the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) computed pursuant to Step 1 of Section L.1 by the total Maximum Facilities Special Taxes (or total Effective Tax Rate Evaluation Maximum Facilities Special Taxes) for the entire CFD No. 22A IA3, based on the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) that could be charged in the current Fiscal Year if all Taxable Property were designated as Developed Property, excluding any Assessor’s Parcels which have prepaid the Maximum Facilities Special Tax (or Effective Tax Rate Evaluation Maximum Facilities Special Tax) obligation (the “Prepayment Quotient”).

Step 2: Multiply the Prepayment Quotient by the Outstanding Bonds to compute the amount of Outstanding Bonds to be redeemed (the “Bond Redemption Amount”).

Step 3: Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed.

Step 4: Compute the amount needed to pay interest on the Bond Redemption Amount from the first Bond interest payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

Step 5: Determine that portion of Facilities Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year to satisfy the Facilities Special Tax Requirement, which have not yet been paid.

Step 6: A reserve fund credit shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture for the Bonds), if any, associated with the redemption of Outstanding Bonds as a result of the partial prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture for the Bonds) in effect after the redemption of Outstanding Bonds as a result of the partial prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. Such reserve fund credit will not decrease the balance in the reserve fund below the new reserve requirement.

Step 7: If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a

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capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to Step 1 by the expected balance in the capitalized interest fund after such first interest payment.

Step 8: The redemption amount is equal to the sum of the amounts computed pursuant to Steps 2, 3, 4, and 5, less the amount computed pursuant to Steps 6 and 7 (the “Redemption Amount”).

If the Partial Prepayment Amount exceeds the Redemption Amount, then any remaining Partial Prepayment Amount, after allocating the Redemption Amount, shall be designated as Pay As You Go Costs.

The Partial Prepayment Amount shall include any fees or expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the cost of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

In addition, the City has the authority to adjust the Partial Prepayment Amount calculated above if a portion or all of the current property tax bill and the portion attributable to the payment of the Facilities Special Tax has not been used to make an interest and/or principal payment on the Bonds.

Notwithstanding the foregoing, no partial prepayment shall be allowed unless the amount of Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes), net of any priority administration, if any as defined in the Indenture, that may be levied on Taxable Property, in each Fiscal Year, both prior to and after the proposed partial prepayment, is at least 1.1 times the annual debt service on all Outstanding Bonds to be paid from the Maximum Facilities Special Taxes (or Effective Tax Rate Evaluation Maximum Facilities Special Taxes) in each Fiscal Year.

M. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied commencing in Fiscal Year 2027-2028 to the extent necessary to fully satisfy the Facilities Special Tax Requirement and shall be levied through the Facilities Special Tax Term.

The Services Special Tax shall be levied commencing in Fiscal Year 2027-2028 and shall be levied until the Transition Event to the extent necessary to fully satisfy the Services Special Tax Requirement.

The Transition Services Special Tax shall be levied commencing in the Fiscal Year following the Transition Event in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Transition Services Special Tax Requirement.

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ATTACHMENT A

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 3

MAXIMUM SPECIAL TAX RATES
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Maximum
Facilities Special
Tax Rate(1)
2026-2027
Maximum
Services Special
Tax Rate(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $0 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $0 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $0 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $0 $117 Residential Lot Other Taxable Property Any $0 $474 Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $0 $137 Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft $0 $137 Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft $0 $137 Residential Lot Single-Family Detached Property – MLD Zoning Any $0 $117 Residential Lot Other Taxable Property Any $0 $474 Acre
Permit Ready Multi-Family/Non-Residential Property $0 $474 Acre Large Lot Property $0 $474 Acre
Undeveloped Property $0 $474 Acre
(1) On each July 1, commencing on July 1, 2027, the Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year. (2) On each July 1, commencing on July 1, 2027, the Maximum Services Special Tax Rates shall be increased by an amount equal to the Services Special Tax Escalation Factor of the Maximum Services Special Tax Rates in effect for the previous Fiscal Year.

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ATTACHMENT B

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 3

MINIMUM FACILITIES REVENUE
(FISCAL YEAR 2026-2027)
Land Use Category Lot Size
Planned Number
of Residential
Lots
2026-2027
Developed Property
Maximum Facilities
Special Tax Rate(1)(2)
2026-2027
Minimum
Facilities
Revenue (1)(3)
Developed Property:

Single-Family Detached Property – SF Zoning Any 0 $0 $0 Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 0 $0 $0 Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 0 $0 $0 Single-Family Detached Property – MLD Zoning Any 0 $0 $0 Other Taxable Property Any 0 $0 $0
Total Minimum Facilities Revenue(4) $0
(1) On each July 1, commencing on July 1, 2027, the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Maximum Facilities Special Tax Rates and Minimum Facilities Revenue in effect for the previous Fiscal Year. (2) As a result of future Assessor’s Parcel changes, described in Section C.2, the assigned Maximum Facilities Special Tax Rates for Developed Property may exceed the Developed Property Maximum Facilities Special Tax Rates set forth in this table. (3) The total Minimum Facilities Revenue may be decreased as result of a portion of Maximum Facilities Special Tax obligations being prepaid pursuant to Section L.
(4) Based upon the Developed Property Maximum Facilities Special Tax Rate for Single-Family Detached Property in Improvement Area No. 3.

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ATTACHMENT C

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 3

EFFECTIVE TAX RATE EVALUATION MAXIMUM FACILITIES SPECIAL TAX RATES (FISCAL YEAR 2026-2027)
Land Use Category Lot Size
2026-2027
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2) Taxed Per
Developed Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Small Lot Final Map Property:

Single-Family Detached Property – SF Zoning Any $_________ Residential Lot Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft _________ Residential Lot Single-Family Detached Property – MLD Zoning Any _________ Residential Lot Other Taxable Property Any _________ Acre
Permit Ready Multi-Family/Non-Residential Property $_________ Acre Large Lot Property $_________ Acre
Undeveloped Property $_________ Acre
(1) Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates will be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates shall be increased by the Facilities Special Tax Escalation Factor of the Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates in effect for the previous Fiscal Year.

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ATTACHMENT D

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 3

EFFECTIVE TAX RATE EVALUATION MINIMUM FACILITIES REVENUE (FISCAL YEAR 2026-2027)
Land Use Category Lot / Village #
Planned Number
of Residential
Lots / Acres(1)
2026-2027
Developed Property
Effective Tax Rate
Evaluation Maximum
Facilities Special Tax
Rate(1)(2)(3)
2026-2027
Effective Tax Rate
Evaluation
Minimum Facilities
Revenue(1)(2)(4)
Developed Property:

Single-Family Detached Property – SF Zoning Any 0 $_________ $_________ Single-Family Detached Property – SFHD Zoning > = 5,775 Sq Ft 0 _________ _________ Single-Family Detached Property – SFHD Zoning < 5,775 Sq Ft 0 _________ _________ Single-Family Detached Property – MLD Zoning Any 0 _________ _________ Other Taxable Property Any 0 _________ _________
Total Effective Tax Rate Evaluation Minimum
Facilities Revenue(5)
$_________
(1) Planned Number of Residential Units/Acres, Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rate and Effective Tax Rate Evaluation Minimum Facilities Revenue to be inserted following the Effective Tax Rate Evaluation. (2) On each July 1, commencing in the Fiscal Year after the Effective Tax Rate Evaluation occurs, the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue shall be increased by the Facilities Special Tax Escalation Factor of the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates and Effective Tax Rate Evaluation Minimum Facilities Revenue in effect for the previous Fiscal Year. (3) As a result of future Assessor’s Parcel changes, described in Section C.3, the assigned Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates may exceed the Developed Property Effective Tax Rate Evaluation Maximum Facilities Special Tax Rates set forth in this table.
(4) The total Effective Tax Rate Evaluation Minimum Facilities Revenue may be decreased as result of a portion of Effective Tax Rate Evaluation Maximum Facilities Special Tax obligations being prepaid pursuant to Section L. (5) Based upon the total Effective Developed Property Maximum Facilities Special Tax Rate Evaluation for Single-Family Detached Property in Improvement Area No. 3.

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ATTACHMENT E

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) IMPROVEMENT AREA 3

08/11/2026 Item No.21.

08/11/2026 Item No.21.

E-1

EXHIBIT E

NOTICE OF PUBLIC HEARING REGARDING THE FORMATION OF THE

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS), DESIGNATION OF IMPROVEMENT AREAS WITHIN THE

DISTRICT

AND LEVYING OF SPECIAL TAXES THEREIN
NOTICE IS HEREBY GIVEN that on Tuesday, August 11, 2026, the City of Folsom (the “City”) duly adopted its Resolution No. [_____] (the “Resolution of Intention”) wherein it declared its intention to form a community facilities distri ct to be known as “City of Folsom Community Facilities District No. 22A (Folsom Heights)” (“CFD 22A” or the “CFD”), identify territory proposed for annexation to CFD 22A in the future wi th the unanimous approval of the owner or owners of each such parcel or parcels at the time t hat such parcel or parcels are annexed to CFD 22A (the “Future Annexation Area”), to designat e two improvement areas within CFD 22A (each, an “Improvement Area”) to be known as “City of Folsom Community Facilities District No. 22A (Folsom Heights) Improvement Area No. 1” (“Impr ovement Area No. 1”), “City of Folsom Community Facilities District No. 22A (Folsom Heigh ts) Improvement Area No. 2” (“Improvement Area No. 2”), and “City of Folsom Community Facilities District No. 22A (Folsom Heights) Improvement Area No. 3” (“Improvement Area No. 3”), and to levy a special tax within CFD 22A and to pay the costs of certain public facilities, including, transportation, water system, recycled water, drainage system, wastewater system, park, parkway and open space, and infrastructure required by the specific plan infras tructure fee; and other incidental expenses and bond issuance costs (collectively, the “Facilities”) and of certain services, including reconstruction and/or rehabilitation, operation, maintenance, repa ir and replacement of open space improvements, landscape corridors and paseos, stree tlights, medians, neighborhood parks, storm water management, and water quality controls, and certain costs related to the maintenance of the services described above (collectively, the “Servic es”), all as more specifically described in the Resolution of Intention, and its Resolution No. [__ __] (the “Resolution Declaring the Necessity for Incurring Bonded Indebtedness”) wherein it declared its intention to incur bonded indebtedness in a principal amount not to exceed $22,000,000 for Improvement Area No. 1 and $25,000,000 for Improvement Area No. 2 to finance the acquisition a nd construction of the Facilities within CFD 22A under and pursuant to the terms and provisions of the “Mello Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2 , Title 5 of the Government Code of the State of California (the “Act”).

This Notice contains a brief summary of the Proposa l (as described below), but you are referred to the City’s Resolution of Intention and its Resolution Declaring the Necessity for Incurring Bonded Indebtedness on file with the City Clerk for the definitive description of the Proposal, including a description of the Facilities and the Services, a list of incidental expenses and bond issuance costs and the rates and methods of apportionment of the special tax.

The Proposal consists of the authorization of (1) a special tax within CFD 22A and each Improvement Area therein, (2) the issuance of bonds for each Improvement Area to finance the Facilities and (3) the annual appropriations limit of CFD 22A to be set at $4,000,000 for

08/11/2026 Item No.21.

E-2
Improvement Area No. 1, $4,000,000 for Improvement Area No. 2, and $4,000,000 for Improvement Area No. 3, each for fiscal year 2026-27.

In order to confer the authority upon the City to levy the special tax and to issue the bonds, a public hearing must be held on the Proposal, the City must determine to form CFD 22A, designate the Improvement Areas, and, finally, the qualified electors within each Improvement Area must approve the Proposal by a two-thirds vote . Where a proposed community facilities district is uninhabited or inhabited by fewer than 12 registered voters (there are no registered voters inhabiting CFD 22A) the qualified electors are, pursuant to the Act, the owners of property within the proposed community facilities district.

THIS IS THE NOTICE OF THE PUBLIC HEARING.

The public hearing will be held during the City Cou ncil meeting on Tuesday, September
22, 2026, at 6:30 p.m., or as soon thereafter as th e City Council may reach the matter, at the City Hall, 50 Natoma Street, Folsom, CA, 95630.

At the hearing, oral and written testimony of all i nterested persons or potential special taxpayers for or against the formation of CFD 22A, the extent of CFD 22A, the identification of the Future Annexation Area, the designation of the Improvement Areas within CFD 22A, the furnishing of the Facilities, the authorization to levy a special tax within CFD 22A and the authorization to issue the bonds will be heard. Written protests against the formation of CFD 22A or the designation of the Improvement Areas deliver ed to the City Clerk at or before the time set for the hearing by either registered voters residin g within, or the owners of property within, CFD 22A or the Future Annexation Area will be counted toward a possible majority protest against such formation and designation. Written protests by a majority of the registered voters residing within CFD 22A (provided they number at least 6) or by the owners of a majority of the land area within CFD 22A that is or will be subject to the related special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protes ts to less than a majority, will require the formation of CFD 22A and the levy of the related sp ecified special tax to be eliminated from immediate consideration and prevent their being included in a subsequent proceedings for at least one year. Written protests by a majority of the re gistered voters residing within the Future Annexation Area (provided they number at least 6) or by the owners of a majority of the land area within the Future Annexation Area, or by the owners of one-half or more of the land area within the Future Annexation Area, will require suspension of the proceedings to authorize the same territory to be annexed to CFD 22A in the future for at least one year. If such protests constitute a majority protest and are directed only against the furnishing of a specified type or types of the Facilities or Services or against levying a specifi ed special tax, only those types of Facilities, Services or the specified special tax will be eliminated from the proceedings.

Questions should be directed to Stacey Tamagni, Chief Financial Officer, telephone (916) 461-6081.

Dated: ________, 2026.

City Clerk of the

CITY OF FOLSOM

08/11/2026 Item No.21.

Attachment 2

08/11/2026 Item No.21.

Resolution No. 11680

RESOLUTION NO. 11680

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

DECLARING THE NECESSITY FOR INCURRING BONDED

INDEBTEDNESS IN AND FOR THE CITY OF FOLSOM COMMUNITY
FACILITIES DISTRICT NO. 22A (FOLSOM HEIGHTS) AND IN AND

FOR TWO IMPROVEMENT AREAS DESIGNATED THEREIN AND

CALLING FOR A PUBLIC HEARING THEREON
WHEREAS, the City Council (the “City Council”) of the City of Folsom (the “City”) has duly adopted its Resolution No. 11679 (the “Resolution of Intention”) this date, wherein it declared its intention to establish a community facilities district under and pursuant to the terms and provisions of the “Mello -Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 (commencing with Section 53311) of the Government Code of the State of California (the “Act”), to be known and designated as “ City of Folsom Community Facilities District No. 22A (Folsom Heights)” (“CFD 22A”), to designate Improvement Area No. 1 therein (“Improvement Area No. 1”) and Improvement Area No. 2 therein (“Improvement Area No. 2” and, together with Improvement Area No. 1, the “Improvement Areas” ), to identify territory proposed for annexation to CFD 22A in the future (the “Future Annexation Area”) and to levy special taxes therein to finance certain public improvements (the “Improvements”) that will assist in mitigating the impact on the need for public facilities occasioned by new development that has occurred or is expected to occur within the boundaries of the Community Facilities District; and WHEREAS, the City Council declares and finds that in order to finance the acquisition and construction of the Improvements, it is necessary to incur bonded indebtedness; and WHEREAS, the purpose for which the proposed debt is to be incurred is to provide the funds necessary to pay for the cost of said public improvements; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Folsom, as follows:

Section 1. The City Council finds and determines that the foregoing recitals are true and correct.

Section 2. The City Council hereby declares that the public convenience and necessity require that bonded indebtedness be incurred to finance the Improvements. The maximum amount of the proposed bonded indebtedness of the City of Folsom Community Facilities District No. 22A (Folsom Heights) Improvement Area No. 1 is $22,000,000 and City of Folsom Community Facilities District No. 22A (Folsom Heights) Improvement Area No. 2 is $ 25,000,000. Such amounts include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the bonded indebtedness is proposed to be incurred, including, but not limited to, the estimated costs of acquisition of land , rights-of-way, capacity or connection fees, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to the Act, architectural, engineering, inspection, legal, fiscal, and financial consultant fees, bond and other reserve funds, discount fees, interest on any bonds of CFD 22A for any Improvement Area estimated to be due and payable

08/11/2026 Item No.21.

Resolution No. 11680

within two (2) years of issuance of the bonds, election costs, and all costs of issuance of the bonds, including, but not limited to, underwriter’s discount, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, debt service reserve fund sureties or credit instruments , fees for letters of credit, and other credit enhancement costs, and printing costs.

The City expects that the authorization to incur bonded indebtedness for the Future Annexation Area annexed as a separate Improvement Area (a “Future Improvement Area”) shall be specified and be approved by the unanimous consent and approval (“Unanimous Approval”) of the owner or owners of the parcel or parcels at the time of such annexation.

Section 3. The City Council hereby sets Tuesday , September 22, 2026, 6:30 p.m., or as soon thereafter as the City Council may reach the matter, at the City Hall, 50 Natoma Street, Folsom, CA, 95630, as the time and place for a hearing by the City Council on the proposed bond issue. At that time and place any persons interested, including any persons owning property in the proposed community facilities district, will be heard.

Section 4. It is the intention of this City Council that any such bonds issued shall be made callable in accordance with the terms of the Mello-Roos Community Facilities Act of 1982.

Section 5. The City Clerk of the City of Folsom shall have a copy of the Notice of Public Hearing published pursuant to the Resolution of Intention.

Section 6. This resolution shall take effect from and after its adoption.

PASSED AND ADOPTED this 11th day of August, 2026, by the following roll-call vote:

AYES: Councilmember(s):

NOES: Councilmember(s):

ABSENT: Councilmember(s):

ABSTAIN: Councilmember(s):

___________________________________
Justin Raithel, MAYOR

ATTEST:

____________________________________
Christa Freemantle, CITY CLERK

08/11/2026 Item No.21.

Attachment 3

08/11/2026 Item No.21.

08/11/2026 Item No.21.

Folsom City Council
Staff Report

1 MEETING DATE:

8/11/2026
AGENDA SECTION:

New Business
ITEM TITLE: Resolution No 11686 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Lakeside Church in the Amount of $7.1 Million for the Purchase of ~6.69 acres at the Northeast Corner of East Bidwell Street and Oak Avenue Parkway and Appropriation of Funds (Folsom Housing Fund 238)

FROM: Community Development Department

RECOMMENDATION / CITY COUNCIL ACTION

Staff respectfully recommends that the City Council approve Resolution No 11686 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Lakeside Church in the Amount of $7.1 Million for the Purchase of ~6.69 acres at the Northeast Corner of East Bidwell Street and Oak Avenue Parkway and Appropriation of Funds (Folsom Housing Fund 238)

BACKGROUND / ISSUE

The subject property is an undeveloped site of approximately 6.69 acres located at the northeast corner of East Bidwell Street and Oak Avenue Parkway, adjacent to the existing Lakeside Church campus. The property is approximately one-half mile north of Highway 50 along East Bidwell Street and immediately adjacent to the Los Rios Community College campus. Lakeside Church owns several parcels surrounding its existing facility and recently completed a lot line adjustment and parcel merger to create the approximately 6.7-acre development site. The property was subsequently listed for sale as a commercial and/or multifamily residential infill opportunity. See vicinity map and parcel map on the following page.

08/11/2026 Item No.22.
2 Vicinity Map

Parcel Map

08/11/2026 Item No.22.
3 The property is designated Professional/Office/East Bidwell Mixed Use Overlay in the General Plan and zoned Business Professional–Planned Development. These designations allow commercial and/or multifamily residential development. In addition, the site is identified in the City's Housing Element as one of the inventory sites available to meet the City's Regional Housing Needs Allocation (RHNA) for lower-income housing, with an assumed development capacity of approximately 200 multifamily units.

Housing Element Program H-17 (Study the Purchase of Land for Affordable Housing) directs the City to explore the feasibility of using Housing Trust Fund revenues to acquire land for affordable housing development. If approved, this would represent the third acquisition of land using housing funds for future affordable housing.

Previous acquisitions include:

1. 300 Persifer Street, which was originally acquired in the 1960s and used for various City purposes over several decades. The property was recently transferred to Habitat for Humanity using Housing Trust Fund resources for development of ten for-sale homes affordable to lower-income households.

2. Leidesdorff Site (1.92 acres), which was recently acquired for future affordable housing as part of the long-term redevelopment plan for the Corporation Yard area.

When this property was listed for sale in June 2026, prospective purchasers were required to submit offers by July 15, 2026. At its July 14, 2026, closed session meeting, the City Council directed staff to submit an offer and negotiate the purchase of the property using Housing Fund resources given the site's strategic importance from an infrastructure planning perspective and as a potential student housing site adjacent to the community college campus.

Following Council direction, staff submitted an offer on July 15, 2026, contingent upon completion of an appraisal. According to the listing broker, the seller received 12 offers (including the City's), primarily from affordable multifamily housing developers. Following additional negotiations, the City's offer was accepted, subject to appraisal and formal City Council approval. Adoption of the proposed resolution authorizes completion of the purchase and allocation of housing funds.

Acquisition of the property advances multiple Housing Element goals, policies, and programs.

Ownership of the site will allow the City to control the timing of development as infrastructure improvements are completed and to identify the most appropriate development partner to ensure the project meets community needs and is compatible with surrounding development.

The City retained Colliers to prepare an independent appraisal of the property. The appraisal supports a market value of $7.0 million. The negotiated purchase price of $7.1 million is a qualifying expenditure under the Folsom Housing Fund and is well within the fund's approximately $22 million unencumbered balance.

08/11/2026 Item No.22.
4 POLICY / RULE

In 2013, the City established an inclusionary housing in-lieu fee to support affordable housing through the Folsom Housing Fund (Fund 238). As originally adopted, the fee equaled one percent of the sales price of the lowest-priced home within a subdivision multiplied by the total number of units. In 2025, following completion of a Nexus study, the City Council revised the methodology to a square-footage-based fee while maintaining a generally comparable level of revenue.

Pursuant to a legal agreement with the Sacramento Housing Alliance, at least 50 percent of the fees collected must be used to fund the construction or substantial rehabilitation of multifamily rental housing affordable to low- and very low-income households. The acquisition and disposition of land for affordable housing development are eligible uses of Fund 238.

ANALYSIS

State Housing Element Law (Government Code Section 65580) requires local jurisdictions to adequately plan for the housing needs of all economic segments of the community. The City of Folsom Housing Element, adopted in August 2021, identifies the City's hou sing needs based on the Regional Housing Needs Allocation (RHNA) prepared by the Sacramento Area Council of Governments (SACOG).

SACOG assigned Folsom a RHNA of 6,363 housing units between 2021 and 2029, including 2,226 very low -income units and 1,341 low -income units. The Housing Element assumes that a substantial portion of these lower -income housing needs will be met through multifamily rental housing.

In August 2025, staff presented the City Council with a mid -cycle Housing Element implementation update. As part of that presentation, staff summarized RHNA progress and reviewed expenditures from the City's housing funds.

Income Level RHNA Allocation Progress to Date Remaining RHNA Very Low (0 - 50% AMI) 2,226 225 2,001
Low (51 - 80% AMI) 1,341 347 994
Moderate (81 – 120% AMI) 829 817 12
Above Moderate (> 120%
AMI) 1,967 3,473 --
Total 6,363 4,862 3,007

Since 2019, the City Council has approved approximately $13.7 million in long-term, low- interest loans to support financing gaps for more than 550 deed-restricted affordable housing units across six multifamily affordable housing developments. In addition to providing affordable housing loans, Fund 238 may be used for Housing Element implementation, housing programs, and the acquisition or disposition of land for affordable housing.

08/11/2026 Item No.22.
5 At its August 2025 meeting, the City Council expressed interest in using Fund 238 to acquire appropriately zoned multifamily sites and to partner with affordable housing developers on City- owned property.

Acquisition of the subject property directly advances several Housing Element goals, policies, and programs. Specifically, ownership of the property helps ensure that a site identified in the Housing Element inventory is ultimately developed with lower-income housing (Goal H-1) in a location that provides convenient access to transit, employment, commercial services, schools, and other community amenities (Policy H-1.2). Housing Element Programs H-16 and H-17 specifically encourage the use of Housing Trust Fund resources to acquire land for affordable housing and facilitate affordable housing development on City-owned sites.

Any future development proposal would remain subject to all applicable public review processes, City development standards, environmental review, and discretionary approvals.

A key advantage of this acquisition is the site's location adjacent to the Los Rios Community College campus, where affordable student housing demand is high and supply is limited. This objective is reflected in General Plan Land Use Policy 3.1.8 (College District), which states:

"Encourage development of a vibrant, walkable district centered around Folsom Lake College and East Bidwell Street adjacent to the Broadstone District that includes higher density residential, retail, and daily service uses for employees and residents as well as students, faculty, and staff."

While Los Rios is not currently pursuing on-campus student housing, future partnerships with private developers to provide off-campus student housing remain a viable opportunity. Given the site's proximity to the campus and its potential for direct pedestrian and vehicle connections, staff will continue to explore opportunities to incorporate affordable student housing—and potentially faculty and staff housing—as part of future development of the property.

The City's appraisal, prepared by Colliers (Attachment 2), concludes with an estimated market value of $7.0 million based on accepted appraisal methodology and comparable sales. Given the site's development readiness, exceptional location, and access to employment, transit, schools, commercial services, and Highway 50, the property generated substantial market interest, including offers from numerous affordable housing developers.

Recognizing the strategic public benefits associated with long-term ownership and coordinated development, City staff negotiated a purchase price of $7.1 million. This modest premium above the appraised value reflects the significant public value of controlling both the timing and type of future affordable housing development at this important location. In addition to advancing Housing Element implementation, acquisition of the property provides the City with greater control over future development in a key corridor adjacent to the Los Rios Community College campus. Given recent State housing legislation that has reduced local discretion over higher- density housing near transit, City ownership will allow thoughtful planning to ensure future development is compatible with surrounding land uses while addressing community housing needs.

08/11/2026 Item No.22.
6 Staff recommends that the City Council authorize the City Manager to execute the Purchase and Sale Agreement with Lakeside Church at the negotiated purchase price of $7.1 million with the following key terms:

1. Purchase Price ($7.1 million) and deposit amounts (1% of purchase price)

2. Inspection (Due Diligence) Period – 45 days

3. Closing Date – 15 days after expiration of the Inspection Period

4. Monument Sign – Seller desire to relocate existing monument sign near the intersection along the edge of the parcel with an easement granted for agreed upon sign location contingent on receiving required City approvals

5. Expenses – Seller pays broker fees, parties split escrow costs, seller pays for title policy, and buyer pays for any endorsements

6. Default remedies – if seller defaults in reps and warranties or its obligation to close prior to the closing date, buyer can seek specific performance plus costs and expenses or terminate the agreement and have the deposit returned plus transaction expenses up to $25,000. For other defaults (such as a breach of representation after closing) buyer may only bring a claim if the damages are over $25,000 and damages are capped at $250,000.

See Attachment 3 for Purchase and Sale Agreement.

FINANCIAL IMPACT

The purchase of the property for $7.1 million will be funded by the Folsom Housing Fund (Fund 238), which has sufficient available resources to complete the acquisition. Acquisition of land for affordable housing is an eligible expenditure under Fund 238 and directly implements Housing Element Program H-17.

ENVIRONMENTAL REVIEW

Staff have reviewed the proposed property acquisition pursuant to the California Environmental Quality Act (CEQA) and determined that the action is exempt under CEQA Guidelines Section 15061(b)(3), commonly referred to as the Common Sense Exemption.

The proposed action consists solely of the acquisition of real property and will not result in any physical change to the environment. The property is currently vacant, and the acquisition does not approve or authorize any development, grading, or construction activity. Future development of the site will require separate environmental review and compliance with the City's zoning regulations and CEQA, as applicable.

The property's General Plan and zoning designations will remain unchanged, and the site will continue to serve as an identified Housing Element inventory site for lower-income RHNA obligations. Accordingly, it can be seen with certainty that the proposed acquisition has no potential to result in a significant environmental impact and is therefore exempt from CEQA.

08/11/2026 Item No.22.
7 ATTACHMENTS

1. Resolution No 11686 – A Resolution Authorizing the City Manager to Execute a Purchase and Sale Agreement with Lakeside Church in the Amount of $7.1 Million for the Purchase of ~6.69 acres at the Northeast Corner of East Bidwell Street and Oak Avenue Parkway and Appropriation of Funds (Folsom Housing Fund 238)

2. Appraisal

3. Purchase and Sale Agreement

Submitted,

Pam Johns
Community Development Director

08/11/2026 Item No.22.

ATTACHMENT 1

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

PURCHASE AND SALE AGREEMENT WITH LAKESIDE CHURCH IN THE AMOUNT OF $7.1 MILLION FOR THE PURCHASE OF ~6.69 ACRES AT THE

NORTHEAST CORNER OF EAST BIDWELL STREET AND OAK A VENUE

PARKWAY AND APPROPRIATION OF FUNDS
(FOLSOM HOUSING FUND 238)

08/11/2026 Item No.22.

Resolution No. 11686

RESOLUTION NO. 11686

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A

PURCHASE AND SALE AGREEMENT WITH LAKESIDE CHURCH IN THE AMOUNT OF $7.1 MILLION FOR THE PURCHASE OF ~6.69 ACRES AT THE

NORTHEAST CORNER OF EAST BIDWELL STREET AND OAK AVENUE
PARKWAY AND APPROPRIATION OF FUNDS (FOLSOM HOUSING FUND 238)

WHEREAS, Lakeside Church owns approximately 6.69 acres of undeveloped land located at the northeast corner of East Bidwell Street and Oak Avenue Parkway (the "Property"); and

WHEREAS, the Property is designated Professional/Office/East Bidwell Mixed Use Overlay in the City's General Plan and is zoned Business Professional –Planned Development, allowing for commercial and/or multifamily residential development; and

WHEREAS, the City of Folsom has identified the Property in its Housing Element as an available site to meet the lower -income Regional Housing Needs Allocation (RHNA) consistent with Housing Element Goal H-1 (Adequate Land Supply for Housing) and Policy H-1.2 (Location of Higher-Density Housing Sites); and

WHEREAS, Housing Element Program H-17 (Study the Purchase of Land for Affordable Housing) states that the City shall explore the feasibility and appropriateness to establish a program to use housing trust fund money or other sources to purchase land to support the development of affordable housing dispersed throughout the city; and

WHEREAS, acquisition of the Property will further the goals, policies, and programs of the City's Housing Element by preserving a strategically located site for future affordable housing development and providing the City with the ability to guide the timing, type, and quality of future development in a manner consistent with community needs; and

WHEREAS, the Property is located adjacent to the Los Rios Community College campus, creating opportunities to explore future partnerships for affordable housing, including potential student and workforce housing; and

WHEREAS, the City retained Colliers to prepare an independent appraisal of the Property, which concluded an estimated market value of $7.0 million; and

WHEREAS, the negotiated purchase price of $7.1 million reflects the strategic public benefit of acquiring and preserving the Property for future affordable housing purposes and is supported by the significant market demand for the site; and

WHEREAS, the purchase of the Property would be funded by the City’s Housing Fund 238, which has sufficient funds available to cover the cost of the purchase; and

WHEREAS, the agreement will be in a form acceptable to the City Attorney:

08/11/2026 Item No.22.

Resolution No. 11686

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom finds that the acquisition of the Property is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).

Finding. The acquisition of the Property is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).

Evidence. There is no possibility that the acquisition of the Property will result in a physical change in the environment. The Property consists of vacant land designated for commercial and/or multifamily residential development and assumed to accommodate ~200 units in the RHNA. The acquisition of the Property does not approve any development project, nor does it disturb the physical environment. The proposed action now is simply a transfer of property ownership. Any future development of the site would be subject to review under FMC Title 17 (Zoning) and CEQA. No change in zoning or allowed use is proposed. The sites are listed in the Housing Element as available to meet the City’s lower income RHNA and none of those designations or the associated underlying assumptions will change as a part of this agreement. Therefore, the proposed purchase is exempt from CEQA review.

BE IT FURTHER RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute a Purchase and Sale Agreement with Lakeside Church in the amount of $7.1 Million for the purchase of ~6.69 acres at the northeast corner of East Bidwell Street and Oak Avenue Parkway with funds allocated from the Folsom Housing Fund (Fund 238).

BE IT FURTHER RESOLVED that the Finance Director is authorized to appropriate $7.1 million for this agreement. The appropriation will be made in the Folsom Housing Fund (Fund 238).

PASSED AND ADOPTED this 11th day of August, 2026, by the following roll-call vote:

AYES: Councilmember(s):

NOES: Councilmember(s):

ABSENT: Councilmember(s):

ABSTAIN: Councilmember(s):

__________________________________
Justin Raithel, MAYOR

ATTEST:

______________________________
Christa Freemantle, CITY CLERK

08/11/2026 Item No.22.

ATTACHMENT 2

APPRAISAL

08/11/2026 Item No.22.

© 2026 Colliers
Vacant BP Zoned Land
701 Oak Avenue Parkway
Folsom, California 95630

APPRAISAL REPORT

Date of Report: August 5, 2026
Colliers File Number: SMF260804

Prepared for
Pam Johns
Community Development Director
City of Folsom
50 Natoma Street
Folsom, CA 95630

08/11/2026 Item No.22.

Letter of Transmittal

SMF260804
August 5, 2026

Pam Johns
Community Development Director
City of Folsom
50 Natoma Street
Folsom, CA 95630

RE: Vacant BP Zoned Land
701 Oak Avenue Parkway
Folsom, California 95630

Colliers File #: SMF260804

Ms. Johns:

This appraisal report satisfies the scope of work and requirements agreed upon by City of Folsom and Colliers Valuation & Advisory Services . At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2 -2(a). My appraisal format provides a summary description of the appraisal process, subject and market data and valuation analyses.

The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report:

The subject consists of a vacant parcel of land that is zoned BP – Business Professional and is slated for future multi- family development. The subject site will contain 6.69 -net acres (291,416 SF) or a 7.31-gross acre (318,249 SF) site at 701 Oak Avenue Parkway in Folsom, California.

Currently, there are three vacant parcels and the APN’s are as follows: 072-1310-010, 011 & 012. There is a proposed lot line adjustment in which the resultant parcel will encompass approximately 6.69 net acres. According to the client, the lot line adjustment was approved and parcel merger was recorded on July 16, 2026. However, the new parcel map has yet not been created.

The subject property is currently listed for sale, but is not in contract at this time . The subject is being marketed for sale by Peter Nixon with Newcastle Properties Group and the asking price is $6,835,000 or $23.45/SF. The broker indicated that the subject was on the market for about 6 weeks and during that time, the broker received 11 offers.

Six of the offers were full price offers at $6,835,000. There were a few offers below the asking price. There are two offers at $7,100,000. All of the offers came from affordable housing developers. The city of Folsom originally submitted a full price offer, but later submitted a higher offer at $7,100,000. The as is value in this appraisal is slightly below the $7,100,000 offer price by the City of Folsom, but is above the asking price and above some of the offers made by other buyers.

Value Type Interest Appraised Date of Value Value
As-Is Market Value Fee Simple July 31, 2026 $7,000,000

08/11/2026 Item No.22.

Letter of Transmittal

SMF260804
The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The report is intended to conform to the appraisal guidelines of City of Folsom.

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific -assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”.

The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at my opinion of value are fully discussed below. I advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results.

Extraordinary Assumptions
The land area is based upon the Sacramento County recorded parcel merger and lot line adjustment document. The land area indicated in this report is based upon lot line adjustment map and is assumed to be accurate. An ALTA survey was not provided for this appraisal. This appraisal assumes the land area is correct. A change to this assumption could impact the assignment results.

Colliers International has not observed, yet is not qualified to detect, the existence of potentially hazardous material or underground storage tanks, which may be present on or near the site. The existence of hazardous materials or underground storage tan ks may influence the value of the property. For this appraisal, Colliers International has specifically assumed that any hazardous materials and/or underground storage tanks do not affect the property, which may be present on or near the property.

Hypothetical Conditions
None
My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value.

The signature below indicates my assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal . If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below.

Sincerely,
Colliers Valuation & Advisory Services

Joe Esparza, MAI
Senior Valuation Services Director
Certified General Real Estate Appraiser
State of California License #AG031186
+1 916 724 5582
[email protected]

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Table of Contents

SMF260804
Report Organization
Property and Assignment Overview
Executive Summary ________________________________________________________________________________________________ 1 Regional and Local Analysis ________________________________________________________________________________________ 9 Exhibits ____________________________________________________________________________________________________________ 20 Exhibits ____________________________________________________________________________________________________________ 21 Assessment & Taxation ____________________________________________________________________________________________ 28 Zoning Analysis ____________________________________________________________________________________________________ 29 Market Analysis ___________________________________________________________________________________________________ 30 Highest & Best Use ________________________________________________________________________________________________ 38 Valuation
Valuation Methods ________________________________________________________________________________________________ 39 Land Valuation ____________________________________________________________________________________________________ 40 Land Valuation Conclusion ________________________________________________________________________________________ 45 Reconciliation of Value Conclusions _______________________________________________________________________________ 47 Certification
Assumptions & Limiting Conditions
Addenda

Engagement Letter
Offering Memorandum
LOI
Valuation Glossary
Qualifications of Appraiser
Qualifications of Colliers International Valuation & Advisory Services

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Executive Summary

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Executive Summary

General Information
Property Name
Property Type
Address
City Folsom
State California
Zip Code 95630
County Sacramento
Core Based Statistical Area (CBSA) Sacramento--Roseville--Arden-Arcade, CA Market Sacramento
Submarket Folsom
Latitude 38.664394
Longitude -121.135398
Number Of Parcels 1
Assessor Parcel
Total Taxable Value $2,174,772
Census Tract Number 85.10
Site Information
Land Area Acres Square Feet
Usable 6.69 291,416
Unusable 0.62 26,833
Excess 0.00 0
Surplus 0.00 0
Total 7.31 318,249
Topography Level at street grade
Shape Irregular
Access Average
Exposure Average
Current Zoning
Overlay District East Bidwell Mixed Use
Flood Zone Zone X (Shaded)
Seismic Zone Moderate Risk
Vacant BP Zoned Land
Business Professional-Planned Development (BP-PD)
072-1310-010
701 Oak Avenue Parkway
Land - Multi-Family Land
Highest & Best Use
As Vacant
Exposure Time & Marketing Period
Exposure Time Six Months or Less
Marketing Period Six Months or Less
Mixed Use Development As Market Conditions
Warrant
Valuation Summary
Valuation Indices As-Is
Market Value
Interest Appraised Fee Simple
Date of Value July 31, 2026
Final Value Conclusion
Final Value $7,000,000
$/SF $24/SF
Land Valuation
Land Value $7,000,000
Value/SF $24.00

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Aerial Photograph

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Comparable Key

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Property & Assignment Overview

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View of Subject Site

View of Subject Site

View of Subject Site

View of Subject Site

View of Subject Site

View of Subject Site

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Property & Assignment Overview

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View of Subject Site

View of Subject Site

View of Subject Site

Rail Line

View of E Bidwell Street

View of Oak Avenue Parkway

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Property & Assignment Overview

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Property Identification
The subject property consists of a vacant parcel of land that is zoned BP-PD and contains 6.69 net acres or 7.31 gross acres located at the NEC of Oak Avenue Parkway and E Bidwell Street in Folsom, Sacramento County, California. There are th ree parcels are 072 -1310-010, 011 & 012. However, these three parcels will be merged and a new lot line adjustment will be performed to create a 6.69 net acre parcel. The parcel merger was recorded by the County, but the parcel map has not been created.

The Sacramento County Assessor’s Parcel numbers are: 072-1310-010, 011 & 012.

The legal description of the subject property is as follows: The following legal description shows the resultant parcel totaling 7.308 gross acres.

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Property & Assignment Overview

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Scope of Work
The scope of work for this appraisal assignment is outlined below:

The appraiser analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends.
• The appraiser confirmed and analyzed legal and physical features of the subject, and how they impact the functionality and overall competitive position of the property. • The appraiser completed an office and multi family supply/demand market analysis of the Sacramento market and Folsom sub-market. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences. • The appraiser conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant and As-Improved.

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Property & Assignment Overview

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• The appraiser confirmed and analyzed financial features of the subject property. This information, as well as trends established by confirmed market indicators, was used to forecast performance of the subject property. • Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions.

This appraisal developed the land sales comparison approach to value, which were adjusted and reconciled as appropriate.
• Technological tools, including closed -end Artificial Intelligence (AI) operating within controlled and secure environments, were utilized in the development of this appraisal report. The use of AI is limited to research of publicly available information in the regional and local market analysis sections of the report. Safeguards are in place to mitigate risks of bias, discrimination, or unlawful outcomes. In accordance with USPAP , the integrity and confidentiality of all non-public information is maintained and is neither shared with nor used to train or enhance any tool. AI-generated content is independently reviewed and approved by the appraiser(s) prior to inclusion and remains subject to their professional judgment. Any broader use of AI beyond this scope will be disclosed as necessary to avoid a misleading report.
• Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are summarized within this document. • I understand the Competency Rule of USPAP and the author of this report meets the standards. • No one provided significant real property appraisal assistance to appraiser signing this certification.

Sources of Information
The following sources were contacted to obtain relevant information:

Subject Property Inspection
The following table illustrates the Colliers International professionals involved with this appraisal report and their status related to the property inspection.

The subject site was inspected on July 31, 2026 and was unaccompanied during the site visit.

Client Identification
The client of this specific assignment is City of Folsom.

Purpose
The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest.

Sources of Information
Item Source
Tax Information Sacramento County Tax Collector
Zoning Information City of Folsom Zoning Code
Site Size Information Sacramento County Assessor's Parcel Map Flood Map Realquest
Demographics Esri ArcGIS®
Legal Description Grant Deed
Subject Property Inspection
Appraiser Inspected Extent Date of Inspection
Joe Esparza, MAI Yes Site Only July 31, 2026

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Property & Assignment Overview

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Intended Use
The intended use of this appraisal is to assist the client in making internal business decisions related to this asset.

This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. This report is specifically not intended for any litigation, arbitration, or any other alternative dispute resolution purposes.

Intended Users
Intended users of this report include City of Folsom. Use of this report by third parties and other unintended users is not permitted. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone.

Assignment Dates

Personal Intangible Property
No personal property or intangible items are included in this valuation.

Property and Sales History
Current Owner
The subject title is currently recorded in the name of Lakeside Church. This entity acquired the site in December 1997.

Three-Year Sales History
The subject has not sold within the past three years.

Subject Sale Status
The subject property is currently listed for sale, but is not in contract at this time . The subject is being marketed for sale by Peter Nixon with Newcastle Properties Group and the asking price is $6,835,000 or $23.45/SF. The broker indicated that the subject was on the market for about 6 weeks and during that time, the broker received 11 offers.

Six of the offers were full price offers at $6,835,000. There were a few offers below the asking price. There are two offers at $7,100,000. All of the offers came from affordable housing developers. The city of Folsom originally submitted a full price offer, but later submitted a higher offer at $7,100,000. The as is value in this appraisal is slightly below the $7,100,000 offer price by the City of Folsom, but is above the asking price and above some of the offers made by other buyers.

Definitions of Value
Given the scope and intended use of this assignment, the definition of Market Value is applicable. The definition of Market Value, along with all other applicable definitions for this assignment, is located in the Valuation Glossary section of the Addenda (see Interagency Guidelines definition).

Property Rights Appraised
The property rights appraised constitute the fee simple interest.

Value Scenarios
The valuation scenarios developed in this appraisal report include the As-Is Market Value of the subject property’s fee simple interest.

Date of Report August 5, 2026
Date of Inspection July 31, 2026
Valuation Date - As-Is July 31, 2026

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Regional and Local Analysis

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Regional Map

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Regional and Local Analysis

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Sacramento-Roseville-Folsom, CA
The subject property is located within the State of California in the Sacramento -Roseville-Folsom, CA Core Based Statistical Area (CBSA). The subject's region is the 27th most populous within the United States.

Demographics
The following table provides a regional demographic overview, the regional trends and overall impact on the subject property.

0.7%
# Households over
next 5 years (CBSA)

2.66 Average Household
Size (CBSA)
103
Cost of Living Index
(CBSA) (100 = US)
38%
Renter Occupied
Housing Units (CBSA)

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Regional and Local Analysis

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Employment, Labor & Output
The following table illustrates the regional employment, labor, and output trends and their impact on the subject property. It is noted that GDP is included given it reflects demand for goods and services, but timely data is only available at US level. The region’s employer mix highlights variety and depth of major employers.

16.6%
Employment
Growth (CBSA)

4.5%
Unemployment
Rate (CBSA)

32.7%
College Educated
Labor (CBSA)

2.1%
Gross Domestic
Product (US)

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Regional and Local Analysis

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Infrastructure & Public Services
Airports
The airports serving the region are shown below.

Interstate & Major Highways
The interstate highways serving the region are shown below.

Railways
The rail services serving the region are shown below.

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Regional and Local Analysis

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Higher Education
The educational institutions serving the region are shown below.

Ports & Waterways
The ports and waterways serving the region are shown below.

Overall Impact on Subject Property Positive

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Regional and Local Analysis

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Local Map

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Regional and Local Analysis

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Local Area Insights
The subject is located at 701 Oak Avenue Pkwy, Folsom, CA. Its immediate area is commonly referred to as Natoma Station. The following provides insight into the local area and its influence on the subject property. We have placed emphasis on the 5-mile radius as most meaningful for trends in the subject's local area.

Natoma Station
The following table provides a demographic overview of the local area based on a 1/3/5 mile radius from the subject property. We have placed emphasis on the 5 mile radius as most meaningful for trends in the subject's local area.

0.7%
# Households over next
5 years (5 Miles)

2.62 Average Household
Size (5 Miles)

27.03%
Renter Occupied
Housing Units (5 Miles)

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Regional and Local Analysis

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Infrastructure & Public Services
Major Roadways
The major roadways serving the local area are shown below.

Public Transportation
The public transportation services serving the local area are shown below.

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Regional and Local Analysis

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Public Schools
The public schools serving the local area are shown below.

Community Services
The community services serving the local area are shown below.

Overall Impact on Subject Property Positive

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Regional and Local Analysis

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Land Use Mix
The local area has a mix of commercial uses nearby, the composition of which is shown in the graph/table below.

Surrounding Land Uses
The uses adjacent to the property are noted below:

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Regional and Local Analysis

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Conclusions
Trends in the regional, local and immediate areas, adjacent uses and the property's specific location features indicate an overall typical external influence on the subject. The overall impact on the subject property considers each section and trend.

Regional growth in employment and income trends, coupled with positive local demographic and infrastructure indicators, suggest a favorable external influence on the subject property.

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Exhibits

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Plat Map – Resultant Parcel After Lot Line Adjustment

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Exhibits

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Plat Map – Resultant Parcel After Lot Line Adjustment

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Exhibits

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Zoning Map

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Exhibits

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General Plan Map

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Exhibits

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Flood Map

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Site Description

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General Description The subject site will consist of 1 legal parcel after the lot line adjustment. As noted below, the subject site has 318,249 SF (7.31 AC) of gross land area. The area is estimated based on the approved lot line adjustment parcel map, but has not been recorded, and may change if a professional survey determines more precise measurements. Per the parcel merger map, the net land area is 6.69 acres.

Accessibility The accessibility of the subject is rated as average. The subject is accessed from two streets, with the main entrance and primary point of ingress/egress being Oak Avenue Parkway. Major transportation arterials within proximity to the subject include E Bidwell Street, Blue Ravine Road and Broadstone Parkway, providing linkage to the surrounding area. Primary access is from Oak Ave Parkway. There is not access from E Bidwell Street due to the rail line that runs along the frontage road.

Exposure The subject has average exposure, as it is located along a major arterial. The project's exposure rating takes into account its above average visibility and its average traffic count. It also considers the subject's exposure from multiple streets.

Seismic The U.S. Geological Survey (USGS) produces a seismic hazards map that is considered the standard map for assessing seismic risk. According to the USGS map, the subject property is considered to be within a Moderate Risk zone.

Additionally, the California Geological Survey has another mapping program as a part of the Alquist-Priolo Earthquake Fault Zoning Act of 1972. As a part of this law, property owners are required to formally disclose that their property lies within the fault zones defined by the California Geological Survey, before selling the property. According to California Geological Survey, the subject is not located within 1,000 feet of an Alquist - Priolo Fault Zone.

Assessor Parcel
Number Of Parcels 1
Land Area Acres Square Feet
Primary Parcel 6.69 291,416
Unusable Land 0.62 26,833
Excess Land 0.00 0
Surplus Land 0.00 0
Total Gross Land Area 7.31 318,249
Shape Irregular - See Plat Map For Exact Shape
Topography Level at street grade
Drainage Assumed Adequate
Utilities All available to the site
072-1310-010
Street Improvements Street Direction No. Lanes Street Type CurbsSidewalksStreetlightsCenter LaneGutters Oak Avenue Parkway Primary Street two-way four-lane major arterial ✓ ✓ ✓ ✓ E Bidwell Street Primary Street two-way four-lane major arterial ✓ ✓ ✓ Frontage Refer to plat map

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Site Description

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Flood Zone Zone X (Shaded). This is referenced by Community Number 060263, Panel Number 06067C0117J, dated February 22, 2024. Zone X (shaded) is a moderate and minimal risk area. Areas of moderate or minimal hazard are studied based upon the principal source of flood in the area. However, buildings in these zones could be flooded by severe, concentrated rainfall coupled with inadequate local drainage systems. Local stormwater drainage systems are not normally considered in a community’s flood insurance study. The failure of a local drainage system can create areas of high flood risk within these zones. Flood insurance is available in participating communities, but is not required by regulation in these zones. Nearly 25-percent of all flood claims filed are for structures located within these zones. Moderate risk areas within the 0.2 - percent-annual-chance floodplain, areas of 1 -percent-annual-chance flooding where average depths are less than 1 foot, areas of 1-percent-annual-chance flooding where the contributing drainage area is less than 1 square mile, and areas protected from the 1-percent-annual-chance flood by a levee. No BFEs or base flood depths are shown within these zones. (Zone X (shaded) is used on new and revised maps in place of Zone B.)
Site Rating A+
Easements A preliminary title report was not available for review. During the on -site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised.

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Site Description

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Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements.

Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer.

08/11/2026 Item No.22.

Assessment & Taxation

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Introduction
The subject property is located within the Sacramento County municipality. The assessed value and property tax for the current year are summarized in the following table.

Subject Property Analysis
The total taxable value for the subject property is $2,174,772 or $6.83/SF. There are no exemptions in place. Total taxes for the property are $23,924 or $0.08/SF.

In California, reassessments of property values occur upon the sale of a property due to the passage of Proposition 13 in July of 1978. If this has not occurred during the tax year, properties are limited to a maximum increase in assessed value of 2% per y ear. Taxes are based upon 1% of full cash value plus any amounts necessary to satisfy general obligation bonds or other indebtedness. In the valuation section, property taxes for the subject are estimated by applying the current tax rate to the concluded value since the stabilized property taxes are calculated by assuming a sale at market value per Proposition 13.

According to the Sacramento County Assessor’s Office, real estate taxes for the subject property are current as of the date of this report.

Tax Comparables
Real estate taxes in California are set based on market value at the time of sale rather than market value as of the current date. With real estate values generally increasing since Proposition 13 was originated in 1978, it is common for California properties that have been owned for a significant period of time to have a lower real estate tax burden than a property that was recently sold. Therefore, tax comparables are not commonly used in the state of California.

Assessment & Taxes
Tax Year 2026 Tax Rate 1.0907%
Tax Rate Area 04-000 Taxes Current Yes
Taxes SF Basis
APN Land Impv Personal Total Exemptions Taxable Base Tax 072-1310-010 $782,408 $0 $0 $782,408 $0 $782,408 $8,534 072-1310-011 $686,602 $0 $0 $686,602 $0 $686,602 $7,489 072-1310-012 $705,762 $0 $0 $705,762 $0 $705,762 $7,698 Totals $2,174,772 $0 $0 $2,174,772 $0 $2,174,772 $23,720 Total/SF $6.83 $0.00 $0.00 $6.83 $0.00 $6.83 $0.07
Additional Tax Charges
Willow Creek Estates L&L $204
Total Additional Tax Charges $204
Total Base Tax & Additional Tax Charges $23,924
Total Base Tax & Additional Tax Charges Per SF $0.08
Source: Sacramento County Assessment & Taxation
Total Land Area

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Zoning Analysis

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Introduction
The zoning characteristics for the subject property are summarized below:

BP , Business Professional: The intent of the BP zone is to designate areas suitable for business and professional offices. Uses in the BP zone are intended to be low -intensity commercial uses and compatible with higher -intensity residential uses. Retail commercial activities are discouraged. The BP zone may serve as a buffer between retail commercial and residential areas. The BP zone should be loca ted along major arterials or have direct access to one via a collector street.

The East Bidwell Corridor Mixed-Use Overlay is a special zoning designation in Folsom, California, created to allow a mix of housing, retail, and offices along East Bidwell Street. It helps the city meet state housing goals by increasing residential density without changing older suburban neighborh oods. According to the planning department, the subject is located in the East Bidwell Corridor Mixed Use Overlay district.

Zoning and Development Rules
• Allowed uses: Combines multi-family housing with retail shops, restaurants, and professional offices. • Housing density : Mandates higher density limits, such as a minimum of 30 units per acre for certain affordable or targeted projects. The subject has 6.69 net acres of land area and the minimum density is 30 units per acre . As a result, the minimum number of units is 200 developable un its. The subject c ould be improved with a higher density, but would have to comply with FAR requirements. • Design standards : Follows objective rules to make buildings more walker -friendly, visually attractive, and consistent in layout.

Zoning Conclusions
Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. According to the city planner, the subject is permitted to have a minimum density of 30 units per acre.

Zoning Summary
Municipality Governing Zoning City of Folsom Planning & Zoning Department Current Zoning Business Professional-Planned Development (BP-PD) Overlay District East Bidwell Corridor Mixed-Use
Permitted Uses
Current Use Multi-Family Land
Is Current Use Legally Permitted? Yes
Zoning Change Not Likely
Permitted uses withinthis zoningdistrict primarily include a wide range of residential and commercial uses.

Zoning Requirements
Conforming Use The subject's improvements represent a legal, conforming use.

Minimum Site Area (SF) 6,000 SF
Minimum Yard Setbacks
Front (Feet) 20
Rear (Feet) 20
Side (Feet) 6
Minimum Density (Units/Acre) 30 : 1
Maximum Site Coverage 60%
Maximum Building Height 35 Feet
Maximum Floor Area Ratio (FAR) 0.2 to 1.5 times the lot area Source: City of Folsom Planning & Zoning Department

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Market Analysis

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Introduction
This section provides a study of office and multi family supply/demand conditions for the Sacramento Market and Folsom Submarket, and transaction trends. These findings are used to support my conclusions for the competitive position, general vacancy and exposure period for the subject property. The first analysis highlights the office market and the second analysis provides insight into the apartment market.

Sacramento Office Market
The following is an analysis of supply/demand trends in the Sacramento Office market using information provided by CoStar, widely recognized as a credible source for tracking market statistics. The table below presents historical data for key market indicators.

Over the past ten years the Sacramento Office market inventory increased by 4.80%. Further there was positive absorption, increase in vacancy and increase of the average asking rent. There has been new construction in each of the last ten years while net absorption has been positive in seven of the last ten years. Vacancy decreased each year through 2021 before increasing each year to 10.8% in 2025. Asking rent has increased in each of the last ten years.

The following table summarizes the trailing four quarter performance of the Sacramento market.

Over the past four quarters the Sacramento office market has experienced no growth of supply. Net absorption was negative over the past 12 months and vacancy has remained generally flat. However, asking rents have declined a bit.

Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below.

Sacramento Historical Statistics (Last Ten Years)
Period Supply Added Supply Net Absorption Vacancy Asking Rent 2016 107,786,115SF 387,367SF 1,288,918SF 10.2% $1.75/SF 2017 107,862,947SF 82,832SF 783,438SF 9.5% $1.78/SF
2018 108,022,106SF 303,295SF 699,737SF 9.0% $1.86/SF
2019 108,565,382SF 616,776SF 1,432,095SF 8.2% $1.90/SF
2020 109,079,082SF 781,456SF (5,219) SF 8.6% $2.00/SF
2021 110,044,656SF 1,302,667SF 186,108SF 9.2% $2.07/SF
2022 110,729,227SF 773,414SF (138,948) SF 9.9% $2.13/SF 2023 110,787,954SF 97,677SF (373,400) SF 10.3% $2.15/SF 2024 112,240,932SF 1,566,908SF 1,045,848SF 10.5% $2.17/SF 2025 112,877,808SF 679,492SF 309,589SF 10.8% $2.20/SF
CAGR 0.5% - - - 2.3%
*Supply numbers based on information which is amended/updated on an on-going basis by Costar.

Source: Costar®
Sacramento Trailing Four Quarter Performance
Period Supply Added Supply Net Absorption Vacancy Asking Rent 2025 Q3 112,877,808SF 0 SF 27,835SF 10.7% $2.19/SF
2025 Q4 112,877,808SF 0 SF (71,995) SF 10.8% $2.19/SF
2026 Q1 112,877,808SF 0 SF 49,893SF 10.7% $2.17/SF
2026 Q2 112,869,928SF 0 SF (68,550) SF 10.8% $2.14/SF
Source: Costar®

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Market Analysis

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Sacramento Market Conclusion
Based on the preceding analysis, the Sacramento Office market demonstrates generally stable fundamentals. There has been new construction in each of the last ten years while net absorption has been positive in seven of the last ten years. Vacancy decreased each year through 2021 before increasing each year to 11% in 2025. Asking rent has increased in each of the last ten years. Analysis of supply and demand factors indicate the market is generally stable.

Folsom Office Submarket Overview
The following is an analysis of supply/demand trends in the Folsom Office submarket using information provided by CoStar. The table below presents historical data for key submarket indicators.

The Folsom office submarket has experienced some new growth over the past 10 years. Due to relatively low vacancy and current market conditions, there has only been some construction in seven of the last 10 years. Further there was positive absorption, fluctuating vacancy and increase of the asking average rent. Net absorption has been positive in eight of the last 10 years. Vacancy decreased from 2016 to 2019, before increasing in 2020 due to Covid 19 remained somewhat elevated in the 5% to 9% range through 2025. The vacancy reached 7.4% in 2025. Asking rent has generally increased over the last five years and reached a high of $2.38/SF in 2025.

The following table summarizes the trailing four quarter performance of the Folsom submarket.

Over the past four quarters the Folsom office submarket has experienced no growth of supply. There was also negative net absorption, increase in vacancy rates and increase of asking rent in the marketplace.

Sacramento Market Trend Analysis Trailing Four Quarters Trend Analysis Q2 2026 2025 Last 10
Total SF 112,869,928 112,877,808 109,799,621
Vacant SF 12,156,157 12,190,803 10,562,724
Market Vacancy 10.8% 10.8% 9.6%
Construction Growth Rate 0.0% 0.6% 0.5%
Absorption Rate (0.1%) 0.3% 0.5%
Average Asking Rent/SF $2.14 $2.20 $2.00
Source: Costar®
Folsom Historical Statistics (Last Ten Years)
Period Supply Added Supply Net Absorption Vacancy Asking Rent 2016 6,429,698SF 20,704SF 312,628SF 7.7% $1.85/SF
2017 6,437,195SF 7,497 SF 79,177SF 6.6% $1.87/SF
2018 6,447,011SF 9,816 SF 71,329SF 5.6% $1.90/SF
2019 6,452,374SF 5,363 SF 113,149SF 3.9% $2.02/SF
2020 6,472,745SF 20,371SF (56,074) SF 5.1% $2.14/SF
2021 6,472,745SF 0 SF 108,562SF 3.4% $2.19/SF
2022 6,472,745SF 0 SF (287,929) SF 7.9% $2.31/SF
2023 6,492,745SF 20,000SF 7,757 SF 8.0% $2.36/SF
2024 6,527,525SF 34,780SF 25,113SF 8.1% $2.36/SF
2025 6,527,525SF 0 SF 45,924SF 7.4% $2.38/SF
CAGR 0.2% - - - 2.6%
*Supply numbers based on information which is amended/updated on an on-going basis by Costar.

Source: Costar®
Folsom Trailing Four Quarters Performance
Period Supply Added Supply Net Absorption Vacancy Asking Rent 2025 Q3 6,527,525SF 0 SF (15,746) SF 7.1% $2.39/SF
2025 Q4 6,527,525SF 0 SF (23,626) SF 7.4% $2.37/SF
2026 Q1 6,527,525SF 0 SF (70,786) SF 8.5% $2.37/SF
2026 Q2 6,527,525SF 0 SF (14,004) SF 8.7% $2.42/SF
Source: Costar®

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Market Analysis

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Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below.

Folsom Office Submarket Conclusion
Based on the preceding analysis, the Folsom Office submarket demonstrates generally stable fundamentals. There has been limited new construction in the past 10 years and no new construction over the past 12 months. Net absorption was positive in only one of the last four quarters. Vacancy has increased over the past four quarters and is currently 8.5% in the last quarter. Asking rent has been generally stable over the last four quarters with little movement. Analysis of supply and demand factors indicate the market is generally stable due to relatively low vacancy and negative net absorption.

Folsom/Orangevale/Fair Oaks Apartment Submarket Overview The table below presents a current quarter snapshot of the key indicators within the Folsom submarket.

Submarket Occupancy, Rental Rate, and Concession Trends

Folsom Market Trend Analysis Trailing Four Quarters Trend Analysis Q2 2026 2025 Last 10
Total SF 6,527,525 6,527,525 6,473,231
Vacant SF 569,687 483,037 412,345
Market Vacancy 8.7% 7.4% 6.4%
Construction Growth Rate 0.0% 0.0% 0.2%
Absorption Rate (0.2%) 0.7% 0.6%
Average Asking Rent/SF $2.42 $2.38 $2.14
Source: Costar®
Folsom/Orangevale/Fair Oaks Submarket at a Glance 2026 Q1 Total Occup- Absorp. New Inv. Removals Inventory Inventory Under Near-Term Units ancy (%) (Units) (Units) (Units) Units ∆ % ∆ Const. Deliveries1 Inventory 15,995 95.7% 83 0 0 0 0.0% 0 0
By Vintage By Style Rental Rate / Revenue
Category 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Occupancy 93.8% 96.2% 96.8% 95.6% 96.2% 96.3% 97.9% 95.7% 95.5% n.a. 95.7% Quarterly Occ. ∆ 1.4% 2.2% 0.1% 0.3% 0.3% 0.8% 1.4% 0.5% 1.3% n.a. 0.5% Annual Occ. ∆ -1.9% -1.0% 0.5% -0.5% -1.2% 0.6% 0.0% -0.7% -0.4% n.a. -0.7% Rent ($/mo.) $2,534 $2,561 $2,217 $2,066 $1,865 $1,898 $2,071 $2,130 $2,505 n.a. $2,151 Rent ($/sf) $2.49 $2.30 $2.31 $2.17 $2.33 $2.38 $2.54 $2.30 $2.69 n.a. $2.32 Annual Revenue ∆2 -1.0% 1.2% 0.6% -3.1% -0.6% 5.2% 4.8% -0.5% -4.1% n.a. -0.7% % Offering Concessions 46.7% 13.3% 0.0% 39.2% 19.5% 0.0% 0.0% 25.4% 0.8% n.a. 24.0% Avg. Concession 3.3% 9.9% n.a. 8.7% 4.8% n.a. n.a. 5.7% 5.2% n.a. 5.7% Qtr. Same-Property Rent ∆ 1.5% 1.1% 1.3% -1.4% 1.8% 1.1% -2.3% 0.8% 0.1% n.a. 0.8% Ann. Same-Property Rent ∆ 0.9% 2.2% 0.1% -2.6% 0.6% 4.6% 4.8% 0.3% -3.7% n.a. 0.0% Source: MPF Research® 1 Delivering within next four quarters. 2 Annual Revenue Change = Annual Occ. Change + Annual Rent Change Occupancy Analysis Folsom/Orangevale/Fair Oaks Submarket By Vintage By Style Submarket Market Versus
Period 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Total Market 2021 95.6% 96.2% 96.9% 97.3% 97.3% 97.9% 94.6% 97.1% n.a. n.a. 97.1% 97.3% n 2022 96.5% 92.4% 95.5% 96.1% 97.8% 97.3% 99.3% 96.6% 95.5% n.a. 96.5% 97.8% n 2023 92.9% 97.1% 94.8% 92.0% 95.5% 94.5% 100.0% 94.0% 93.5% n.a. 94.0% 94.7% n 2024 94.1% 94.3% 94.9% 94.1% 96.5% 95.1% 91.7% 95.0% 93.5% n.a. 94.9% 94.4% n 2025 95.7% 97.1% 96.3% 96.1% 97.4% 95.7% 97.9% 96.4% 95.9% n.a. 96.4% 95.7% n 2026 93.8% 96.2% 96.8% 95.6% 96.2% 96.3% 97.9% 95.7% 95.5% n.a. 95.7% 95.4% n 2025 Q2 94.9% 96.2% 96.7% 96.4% 97.1% 96.8% 100.0% 96.6% 94.7% n.a. 96.5% 96.0% n 2025 Q3 91.5% 96.2% 96.9% 96.9% 96.2% 95.6% 100.0% 95.5% 96.3% n.a. 95.5% 95.5% n 2025 Q4 92.4% 94.3% 96.7% 95.3% 96.0% 95.6% 95.8% 95.3% 94.1% n.a. 95.2% 95.2% n 2026 Q1 93.8% 96.2% 96.8% 95.6% 96.2% 96.3% 97.9% 95.7% 95.5% n.a. 95.7% 95.4% n Source: MPF Research® Legend: n Outperforming n Underperforming n SimilarPage 547 08/11/2026 Item No.22.

Market Analysis

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Inventory/Occupancy
As presented, the Folsom/Orangevale/Fair Oaks market maintains a current inventory of 15,995 units, representing no change from the previous quarter The current market-wide occupancy rate of 95.7% is indicated through a range extending from 93.8% to 97.9% across all property styles and vintages. When compared to the previous quarter, the market-wide average occupancy rate has increased 0.5%. On a current -quarter annualized basis, occupancy rates have decreased -0.7%.

Rental Rate/Revenue
On a per unit basis, rental rates By Vintage range from a low of $1,865 per month to a high of $2,561 per month.

When analyzed on the basis of style, rental rates range from $2,130 (Low -Rise) to $2,505 (High -Rise). In Total, the market-wide inventory-weighted average rental rate is $2,151 per unit per month. On a per square foot basis, rental rates range from a low of $2.17 to a high of $2.54 when analyzing property vintage and $2.30 to $2.69 when analyzed by property style. In aggregate, the market-wide average rental rate is $2.32 per square foot. Annual revenue change, defined as annual occupancy change plus annual rent change represents a dec rease of -0.7% Versus the previous same-quarter annual period.

Effective Rent ($/Unit) Folsom/Orangevale/Fair Oaks Submarket By Vintage By Style Submarket Market Versus
Period 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Total Market 2021 $2,251 $2,207 $2,030 $1,841 $1,621 $1,663 $1,496 $1,832 n.a. n.a. $1,832 $1,643 n 2022 $2,592 $2,386 $2,210 $2,120 $1,823 $1,893 $1,684 $2,078 $2,539 n.a. $2,106 $1,892 n 2023 $2,445 $2,461 $2,157 $2,100 $1,792 $1,911 $1,792 $2,046 $2,532 n.a. $2,077 $1,925 n 2024 $2,588 $2,542 $2,193 $2,101 $1,844 $1,872 $1,991 $2,085 $2,514 n.a. $2,111 $1,956 n 2025 $2,517 $2,506 $2,207 $2,122 $1,868 $1,794 $1,976 $2,077 $2,601 n.a. $2,109 $1,970 n 2026 $2,534 $2,561 $2,217 $2,066 $1,865 $1,898 $2,071 $2,130 $2,505 n.a. $2,151 $1,991 n 2025 Q2 $2,589 $2,593 $2,273 $2,142 $1,872 $1,859 $1,949 $2,121 $2,559 n.a. $2,148 $2,004 n 2025 Q3 $2,531 $2,594 $2,246 $2,140 $1,894 $1,903 $1,973 $2,157 $2,591 n.a. $2,182 $2,010 n 2025 Q4 $2,496 $2,533 $2,188 $2,092 $1,837 $1,877 $2,120 $2,114 $2,504 n.a. $2,136 $1,978 n 2026 Q1 $2,534 $2,561 $2,217 $2,066 $1,865 $1,898 $2,071 $2,130 $2,505 n.a. $2,151 $1,991 n Source: MPF Research® Legend: n Outperforming n Underperforming n Similar Effective Rent ($/SF) Folsom/Orangevale/Fair Oaks Submarket By Vintage By Style Submarket Market Versus
Period 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Total Market 2021 $2.24 $1.99 $2.13 $1.92 $2.01 $1.98 $1.73 $2.02 n.a. n.a. $2.02 $1.90 n 2022 $2.60 $2.15 $2.31 $2.21 $2.27 $2.25 $1.95 $2.27 $2.73 n.a. $2.30 $2.19 n 2023 $2.46 $2.21 $2.26 $2.20 $2.24 $2.41 $2.07 $2.25 $2.72 n.a. $2.28 $2.22 n 2024 $2.60 $2.29 $2.29 $2.20 $2.29 $2.36 $2.44 $2.29 $2.70 n.a. $2.31 $2.24 n 2025 $2.53 $2.26 $2.30 $2.22 $2.32 $2.26 $2.42 $2.28 $2.80 n.a. $2.31 $2.26 n 2026 $2.49 $2.30 $2.31 $2.17 $2.33 $2.38 $2.54 $2.30 $2.69 n.a. $2.32 $2.26 n 2025 Q2 $2.60 $2.33 $2.36 $2.24 $2.32 $2.35 $2.39 $2.33 $2.75 n.a. $2.35 $2.29 n 2025 Q3 $2.49 $2.33 $2.34 $2.24 $2.35 $2.39 $2.42 $2.33 $2.79 n.a. $2.35 $2.28 n 2025 Q4 $2.45 $2.28 $2.28 $2.20 $2.29 $2.35 $2.60 $2.28 $2.69 n.a. $2.30 $2.24 n 2026 Q1 $2.49 $2.30 $2.31 $2.17 $2.33 $2.38 $2.54 $2.30 $2.69 n.a. $2.32 $2.26 n Source: MPF Research® Legend: n Outperforming n Underperforming n Similar

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Market Analysis

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Concessions Offered
Analyzed By Vintage, the percentage of properties currently offering concessions range from 0.0% (2000s) to 46.7% (2020+). When singularly analyzing property style, this range shifts to a low of 0.8% (mid-rise) to a high of 25.4% (low- rise). An aggregate, market-wide average of 24.0% is indicated.

Concessions Given
The average concession given ranges from 3.3% to 9.9% (vintage) and 5.2% to 5.7% (style) of potential gross revenue.

An inventory-weighted average across all vintages and styles of 5.7% is indicated.

Folsom/Orangevale/Fair Oaks Submarket Conclusion
The Folsom/Orangevale/Fair Oaks submarket continues to demonstrate relatively stable fundamentals within the Sacramento–Roseville–Folsom metro, supported by steady renter demand and limited near -term supply pressure.

Current occupancy stands at 95.7%, outp erforming the metro average and reflecting a 0.5 -point quarterly increase, though down 0.7 points year-over-year as demand has moderated slightly. Despite this annual softening, occupancy remains in line with historical norms and is forecast to decline modestly to 94.4% over the next year amid weaker projected demand.

Average effective rents in the submarket measure approximately $2,151 per month, among the higher levels in the metro, and have remained flat year -over-year, outperforming broader market trends. Quarterly rent growth of 0.8% and revenue growth of 1.3% indicate some near-term pricing resilience, though annual revenue has declined 0.7% as concessions have increased. Currently, about 24.0% of units are offering concessions, reflecting heightened competition for renters. With no meaningful supply pipeline under way and inventory growth expected to remain negligible, the submarket is well -positioned for gradual stabilization. As demand recovers and concession usage moderates, Folsom/Orangevale/Fair Oaks should maintain its position as a relatively stable, higher-income submarket within the region.

Percent of Properties Offering Concessions Folsom/Orangevale/Fair Oaks Submarket By Vintage By Style Submarket Market Versus
Period 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Total Market 2021 0.0% 0.0% 0.0% 10.0% 0.0% 0.0% 0.0% 2.8% n.a. n.a. 2.8% 5.4% n 2022 0.0% 0.0% 20.5% 11.9% 2.2% 0.0% 0.0% 9.1% 0.0% n.a. 8.5% 6.0% n 2023 30.7% 0.0% 22.0% 18.1% 6.6% 11.9% 0.0% 18.4% 0.0% n.a. 17.2% 11.4% n 2024 0.0% 0.0% 17.8% 27.9% 12.5% 11.9% 0.0% 17.2% 0.0% n.a. 16.1% 15.4% n 2025 30.7% 64.8% 0.0% 23.6% 25.4% 11.9% 0.0% 19.3% 0.0% n.a. 18.1% 16.6% n 2026 46.7% 13.3% 0.0% 39.2% 19.5% 0.0% 0.0% 25.4% 0.8% n.a. 24.0% 19.9% n 2025 Q2 30.7% 26.7% 0.0% 23.0% 13.9% 0.0% 0.0% 14.7% 0.0% n.a. 13.8% 17.4% n 2025 Q3 49.1% 19.0% 7.7% 4.7% 7.1% 7.5% 0.0% 16.0% 7.9% n.a. 15.6% 17.0% n 2025 Q4 39.6% 45.7% 0.0% 0.7% 9.5% 0.0% 0.0% 11.7% 0.0% n.a. 11.0% 17.7% n 2026 Q1 46.7% 13.3% 0.0% 39.2% 19.5% 0.0% 0.0% 25.4% 0.8% n.a. 24.0% 19.9% n Source: MPF Research® Legend: n Outperforming n Underperforming n Similar Concessions as a Percent of PGI Folsom/Orangevale/Fair Oaks Submarket By Vintage By Style Submarket Market Versus
Period 2020+ 2010s 2000s 1990s 1980s 1970s Pre-1970s Low-Rise Mid-Rise High-Rise Total Total Market 2021 n.a. n.a. n.a. 0.8% n.a. n.a. n.a. 0.8% n.a. n.a. 0.8% 4.6% n 2022 n.a. n.a. 1.9% 1.5% 0.8% n.a. n.a. 1.7% n.a. n.a. 1.7% 3.5% n 2023 4.2% n.a. 6.4% 2.0% 1.1% 1.4% n.a. 3.8% n.a. n.a. 3.8% 2.6% n 2024 n.a. n.a. 2.6% 5.1% 1.6% 1.5% n.a. 3.6% n.a. n.a. 3.6% 4.0% n 2025 7.0% 4.7% n.a. 1.9% 3.5% 2.2% n.a. 3.8% n.a. n.a. 3.8% 5.9% n 2026 3.3% 9.9% n.a. 8.7% 4.8% n.a. n.a. 5.7% 5.2% n.a. 5.7% 6.3% n 2025 Q2 1.3% 8.3% n.a. 3.4% 8.8% n.a. n.a. 4.0% n.a. n.a. 4.0% 5.9% n 2025 Q3 3.7% 9.5% 4.0% 1.2% 7.1% 0.6% n.a. 3.8% 5.5% n.a. 3.8% 6.6% n 2025 Q4 3.6% 4.4% n.a. 3.0% 6.0% n.a. n.a. 4.0% n.a. n.a. 4.0% 6.6% n 2026 Q1 3.3% 9.9% n.a. 8.7% 4.8% n.a. n.a. 5.7% 5.2% n.a. 5.7% 6.3% n Source: MPF Research® Legend: n Outperforming n Underperforming n Similar

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Market Analysis

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Inflation Impact / Macroeconomy Overview
Over the past two years, macroeconomic conditions
have slowed commercial real estate activity and
constrained debt markets. Following a period of
aggressive monetary tightening through 2022 and
early 2023, GDP growth moderated and financial
conditions beca me increasingly restrictive,
contributing to reduced transaction activity across
commercial real estate sectors. Inflation has eased
from its 2022 peak, reflecting the cumulative impact
of tighter monetary policy, though it remains
modestly above the Feder al Reserve’s long -term

2.0% target. In response to moderating economic
conditions, the Federal Reserve maintained the
federal funds rate at a restrictive level through most
of 2023 and mid -2024. Beginning in late 2024, the
Federal Reserve initiated a series of rate reductions
that continued through 2025, easing financial
conditions while policy rates remained elevated
relative to the pre -2022 environment. As a result,
borrowing costs remain above historical norms, and
capital markets continue to reflect a more
disciplined lending environment, with transaction
activity proceeding at a measured pace. Declines in
the 10 -year Treasury have provided some relief in
borrowing c osts and modestly improved investor
sentiment, though underwriting standards remain
conservative. The increase in interest rates during the 2022 –2024 tightening cycle placed upward pressure on capitalization rates as investors required higher yields, contributing to valuation adjustments and reduced transaction activity. As monetary policy has shifted toward easing and benchmark rates have moderated, the pace of cap rate expansion has slowed and capital market conditions have become more stable.

Looking forward, the current lower—but still elevated—interest rate environment may support gradual improvement in investment activity and continued stabilization in capitalization rates. However, investors and lenders remain cautious, and cap rates are generally expected to remain above pre-2022 levels in the near term as markets continue adjusting to a higher cost of capital environment.

U.S.–Iran Conflict: Impact on U.S. Commercial Real Estate Geopolitical tensions involving the United States and Iran have introduced uncertainty into global shipping and energy markets, particularly due to the strategic importance of the Strait of Hormuz as a key corridor for global oil and liquefied natural gas transportation. While direct exposure to the conflict is limited for most U.S. commercial real estate markets, indirect effects are emerging through higher transportation costs, increased input prices, and supply- chain disruptions. Elevated fuel prices and rising shipping risks have contributed to higher logistics expenses and longer delivery times. In response, many companies are adjusting operational strategies by increasing safety stock levels and securing additional warehouse capacity to maintain service reliability.

Supply-chain uncertainty and rising energy costs are also affecting commodity markets and manufacturing inputs, which can influence tenant operating costs across industrial and retail sectors. In the near term, these conditions may encourage more defensive occupier behavior, including greater demand for warehouse and distribution space as firms maintain higher inventory levels and position goods closer to end markets. Over the longer term, persistent geopolitical instability could contribute to structural s upply-chain shifts, including diversification of sourcing and increased nearshoring activity in North America. For commercial real estate, the most direct impacts are modestly

08/11/2026 Item No.22.

Market Analysis

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higher operating and logistics costs for tenants and continued demand support for well -located industrial and distribution facilities as firms prioritize supply-chain resilience.

Transaction Trends
The following information highlights the office and multifamily market sale transaction trends per Costar.

Over the past year, 15 office properties traded in Folsom, accounting for 210,000 SF of inventory turnover. Office sales volume in Folsom has totaled $50.8 million over the past year. Average annual sales volume over the past five years is $63.5 million and $66.4 million over the past 10 years.

Estimated office market pricing in Folsom is $194/SF compared to the market average of $185/SF. Average market pricing for Folsom is estimated at $192/SF for 4 & 5 Star properties, $200/SF for 3 Star assets, and $164/SF for 1 & 2 Star buildings. The estimated cap rate for Folsom office is 9.3%, compared to the metro average of 9.3%.

Investment activity has been lean in the submarket over the years. It has been nearly four years since quarterly sales volume exceeded $10 million. Most transactions involve private parties, although fund-level equity has accounted for nearly 90% of buy -side volume in the past five years due to the sale of The Falls at Willow Creek for $150 million in 2022. Sales volume in the past 12 months has tallied $115 million compared with $10.0 million for the prior 12-month period. In general, only a few properties trade hands in a given calendar year.

A private investor purchased two properties at the end of 2025 at 10930 Fair Oaks Boulevard and 8125 Monte Park Avenue in Fair Oaks for $6.7 million, or about $152,000/unit. The larger property on Fair Oaks Boulevard consisted of 36 units built in 1961, while the other has eight units built in 1971.

A material change in investment patterns is not expected in the near term.

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Market Analysis

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General Vacancy Conclusion
As summarized in the table below this market analysis relied on various published data sources and field research for assessing how supply/demand conditions influence the long-term vacancy estimate of the subject property.

Based on the subject's size, location and appeal, the market and submarket analyses findings warrant primary consideration. The market level analysis indicated a CoStar vacancy rate of 10.8% and an average vacancy rate of 9.6% over the past ten years. The submarket level analysis indicated a CoStar vacancy rate of 8.7% and an average vacancy rate of 6.4% over the past ten years. As of the effective date of this appraisal, the subject property has a current vacancy rate of 0.0%. Based on my analysis of supply/demand trends and considering the subject's actual performance, a general vacancy rate of 5.0% is concluded.

Exposure Time & Marketing Period
Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys.

The preceding information generally supports an exposure time range from 1 to 18 months for Land (Multi-Family Land) properties. The availability of acquisition financing also factors into exposure time and marketing period. My review of the local capital market indicate that adequate financing options would have been available to consummate a sale of the subject on the date of value.

Exposure Time Conclusion
Six Months Or Less
Marketing Period Conclusion
Six Months Or Less
General Vacancy Conclusion
CoStar 2026 Q3 Last Year 10 Yr Avg
Sacramento Market-Office 10.8% 10.8% 9.6%
Folsom Submarket-Office 8.7% 7.4% 6.4%
Folsom Submarket-Multifamily 4.3% 3.6% 4.2%

08/11/2026 Item No.22.

Highest & Best Use

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Introduction
This section develops the highest and best use of the subject property as -vacant and as-improved. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive.

As-Vacant Analysis
Permitted uses of the subject’s Business Professional-Planned Development (BP-PD) zoning were listed in the Zoning Analysis section. Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject site has frontage along two main a rterials at a signalized intersection. The immediate area is developed with office, retail, and mixed-use development along major arterials that is interspersed with multi -family complexes and single -family residential development removed from arterials.

Based on my observations of land development trends for sites with similar zoning and physical characteristics as the subject and analysis of current supply/demand trends, the highest and best use of the subject site as -vacant is a mixed used development as market conditions warrant.

08/11/2026 Item No.22.

Valuation Methods

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Valuation Methods
The following presentation of the appraisal process deals directly with the valuation of the subject property. The paragraphs below describe the standard approaches to value that were considered for this analysis.

Income Approach
The two fundamental methods of this valuation technique include Discounted Cash Flow and Direct Capitalization.

Characteristics specific to the subject property do not warrant that this valuation technique is developed.

Development of the Income Approach is not a specific scope requirement of this assignment. Based on the preceding information, the Income Approach will not be presented.

Sales Comparison Approach
Characteristics specific to the subject property do not warrant that this valuation technique to be developed.

Development of the Sales Comparison Approach is not a specific scope requirement of this assignment. Due to unique characteristics of the interest being appraised or lack of market transactions of like substitute comparable properties, insufficient sales data is available to provide a credible value opinion by the Sales Comparison Approach. Based on this reasoning, the Sales Comparison Approach is not presented within this appraisal.

Land Valuation
Characteristics specific to the subject property warrant that a site value is developed. Development of the subject site value is a specific scope requirement of this assignment. Within the Site Valuation section, the subject is valued as one marketable economic site.

Cost Approach
Characteristics specific to the subject property do not warrant that this valuation technique is developed.

Development of the Cost Approach is not a specific scope requirement of this assignment. The Cost Approach has limited applicability due to the age of the improvements and lack of market based data to support an estimate of accrued depreciation. Based on the preceding information, the Cost Approach will not be presented.

Reconciliation of Value Conclusions
The land sales comparison approach is used to value the subject property, which will be reconciled into the final opinion of market value in the Analysis of Value Conclusions section.

08/11/2026 Item No.22.

Land Valuation

SMF260804 40
Land Valuation
As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. The most relevant unit of comparison is the price per square foot, as it best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning. A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. Overall, the sales selected represent the best comparables available for this analysis.

Adjustment Process
The following adjustments or general market trends were considered for the basis of valuation.

Transactional Adjustments
Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments including property rights transferred, financing terms, conditions of sale, expenditures after purchase such as demolition costs and market conditions. Comparable 2 is currently listed for sale and is adjusted downward for conditions of sale due to a buyers opportunity to negotiate a lower sale price.

The following table summarizes the market conditions adjustment applied in this analysis.

The market has exhibited value stability during the time from the oldest sale date up through the effective valuation date; therefore a market conditions adjustment is not warranted.

Property Adjustments
Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site.

Market Conditions Adjustment
Per Year As Of July 2026 (As-Is) 0%

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Land Valuation

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Presentation
The following Land Sales Summation Table, Location Map and plat maps summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded.

Land Sales Summation Table
Comparable Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6 Name Vacant BP Zoned
Land
Commercial Land Vacant Land Retail Lot Commercial Land Commercial Land Apartments Site Address 701 Oak Avenue
Parkway
7007 South Land
Park Drive
851 Sacramento
Avenue
1726 Freedom Way 2270 Del Paso Road2720 Kilgore Road 14533 Alder Creek Pkwy
City Folsom Sacramento West Sacramento Roseville Sacramento Rancho Cordova Folsom State CA CA CA CA CA CA CA
Zip 95630 95831 95605 95678 95834 95670 95630
County Sacramento Sacramento Yolo Placer Sacramento Sacramento Sacramento APN 072-1310-010 029-0470-024, -025 010-320-038 363-022-031 225-0070-127, 225- 2990-008
072-0223-001, 002,
003
072-3670-036
Physical Information
Acres 6.69 3.53 8.16 1.55 2.24 4.65 10.67
SF 291,416 153,766 355,318 67,518 97,574 202,553 464,785 Zoning BP-PD C-2-EA-2 MU-NC PD/SA-NC EC-50 OPMU MHD
Flood Zone Zone X (Shaded) X X500 X A99 X X
Corner Yes No Yes No No Yes Yes
Topography Level Level Level Level Level Level Level
Utilities Yes Yes Yes Yes Yes Yes Yes
Sale Information
Date 4/28/2026 8/4/2026 1/15/2026 7/1/2025 4/29/2025 7/3/2025 Status Recorded Listing Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $4,500,000 $8,888,888 $1,677,000 $2,276,500 $5,064,000 $11,000,000 Analysis Price $4,500,000 $8,888,888 $1,677,000 $2,276,500 $5,064,000 $11,000,000 $/SF Land $29.27 $25.02 $24.84 $23.33 $25.00 $23.67

08/11/2026 Item No.22.

Land Valuation

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Land Sales Location Map

Comparable Key
Comp Distance Address Sale Date Acres SF $/SF
Subject - 701 Oak Avenue Parkway, Folsom, CA - 6.7 291,416 - No. 1 23.3 Miles 7007 South Land Park Drive, Sacramento, CA 4/28/2026 3.5 153,766 $29.27 No. 2 21.6 Miles 851 Sacramento Avenue, West Sacramento, CA 8/4/2026 8.2 355,318 $25.02 No. 3 12.3 Miles 1726 Freedom Way, Roseville, CA 1/15/2026 1.6 67,518 $24.84 No. 4 20.3 Miles 2270 Del Paso Road, Sacramento, CA 7/1/2025 2.2 97,574 $23.33 No. 5 8.7 Miles 2720 Kilgore Road, Rancho Cordova, CA 4/29/2025 4.7 202,553 $25.00 No. 6 2.4 Miles 14533 Alder Creek Pkwy, Folsom, CA 7/3/2025 10.7 464,785 $23.67

08/11/2026 Item No.22.

Land Valuation

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Land Sales Exhibits

Comparable 1

Comparable 2

Comparable 3

Comparable 4

Comparable 5

Comparable 6

Centerpointe at Natomas Crossing Phases III & IV
Alpha One Sports And Entertainment Group Llc

08/11/2026 Item No.22.

Land Valuation

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Land Sales Adjustment Table
Comparable Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6 Name Vacant BP Zoned
Land
Commercial Land Vacant Land Retail Lot Commercial Land Commercial Land Apartments Site Address 701 Oak Avenue
Parkway
7007 South Land
Park Drive
851 Sacramento
Avenue
1726 Freedom Way 2270 Del Paso Road 2720 Kilgore Road 14533 Alder Creek Pkwy
City Folsom Sacramento West Sacramento Roseville Sacramento Rancho Cordova Folsom Acres 6.69 3.53 8.16 1.55 2.24 4.65 10.67
SF 291,416 153,766 355,318 67,518 97,574 202,553 464,785 Zoning BP-PD C-2-EA-2 MU-NC PD/SA-NC EC-50 OPMU MHD
Flood Zone Zone X (Shaded) X X500 X A99 X X
Corner Yes No Yes No No Yes Yes
Topography Level Level Level Level Level Level Level
Utilities Yes Yes Yes Yes Yes Yes Yes
Sale Information
Date 4/28/2026 8/4/2026 1/15/2026 7/1/2025 4/29/2025 7/3/2025 Status Recorded Listing Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $4,500,000 $8,888,888 $1,677,000 $2,276,500 $5,064,000 $11,000,000 Price/SF $29.27 $25.02 $24.84 $23.33 $25.00 $23.67
Transactional Adjustments
Property Rights 0% 0% 0% 0% 0% 0%
Financing 0% 0% 0% 0% 0% 0%
Conditions of Sale 0% -5% 0% 0% 0% 0%
Expenditures After the Sale 0% 0% 0% 0% 0% 0%
Market Conditions¹ 0% 0% 0% 0% 0% 0%
Subtotal Transactional Adj Price $29.27 $23.77 $24.84 $23.33 $25.00 $23.67 Property Adjustments
Location 0% 5% 0% 5% 5% 0%
Size -10% 0% -15% -15% -10% 5%
Exposure 0% 0% 0% 0% 5% 0%
Access 0% 0% 0% 0% 0% 0%
Shape 0% 0% 0% 0% 0% 0%
Zoning 0% 0% 0% 0% 0% 0%
Flood Zone 0% 0% 0% 10% 0% 0%
Topography 0% 0% 0% 0% 0% 0%
Utilities 0% 0% 0% 0% 0% 0%
Approvals -5% 0% 0% 0% -5% -5%
Subtotal Property Adjustment -15% 5% -15% 0% -5% 0%
Total Adjusted Price $24.88 $24.95 $21.11 $23.33 $23.75 $23.67 Statistics Unadjusted Adjusted
Low $23.33 $21.11
High $29.27 $24.95
Median $24.92 $23.71
Average $25.19 $23.62
¹ Market Conditions Adjustment: 0%
Date of Value (for adjustment calculations): 7/31/26

08/11/2026 Item No.22.

Land Valuation

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Land Sales Analysis
The comparable land sales indicate an adjusted value range from $21.11 to $24.95/SF, with a median of $23.71/SF and an average of $23.62/SF.

Discussion of Adjustments
• Conditions of Sale - Comparable 2 is currently listed for sale and is adjusted downward for conditions of sale due to a buyers opportunity to negotiate a lower sale price. • Location – Comparables 2, 4 and 5 are located in inferior submarkets and are adjusted upward for inferior locations. Based on discussions with market participants, these properties are inferior in terms of location. • Size – Due to economies of scale, smaller properties tend to sell at a higher dollar per square foot amount compared to larger properties and vice versa. Comparables 1, 3, 4 and 5 are adjusted downward for smaller size. Comparable 6 is larger in size and is adjusted upward for size. • Exposure – Comparable 5 is adjusted upward for inferior exposure along secondary corridors. • Flood Zoning – Comparable 4 is adjusted upward for flood hazard zones and limits development potential. • Approvals – Comparables 1, 5 and 6 are adjusted downward for approvals and entitlements.

Calculation of Land Value
Four of the primary sales provide an adjusted average of $23.91/SF. For this analysis, a price per SF indication of $24/SF is concluded for the subject. The subject could have a maximum of 200 units (6.69 acres x 30 units/acre). The value conclusion equates to $34,877 per unit. The concluded value of $7,000,000 is slightly below the offer submitted by the city of Folsom, but is also slightly higher than a majority of the offers received.

The following table summarizes the analysis of the comparables, reports the reconciled price per square foot value conclusion, and presents the concluded value of the subject site.

Calculation of Land Value
Analysis Adjustment Net Gross Overall
Comp Price Transactional¹ Adjusted Property² Final Adj % Adj % Comparison 1 $29.27 0% $29.27 -15% $24.88 -15% 15% Primary
2 $25.02 -5% $23.77 5% $24.95 -0% 10% Secondary
3 $24.84 0% $24.84 -15% $21.11 -15% 15% Secondary
4 $23.33 0% $23.33 0% $23.33 0% 30% Primary
5 $25.00 0% $25.00 -5% $23.75 -5% 25% Primary
6 $23.67 0% $23.67 0% $23.67 0% 10% Primary
Low $21.11 Average $23.62
High $24.95 Median $23.71
Component Subject SF $/SF Conclusion Value
Usable 291,416 x $24.00 = $7,000,000
¹Cumulative ²Additive Rounded to nearest $100,000

08/11/2026 Item No.22.

Land Valuation

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Crosscheck to Value
Give that the subject is permitted to have a maximum density of 30 units per acre or 200 developable units per zoning standards, we have also looked at land sales on a per unit basis. The following table highlights multifamily land sales on a per unit basi s and range from $21,930 to $41,509 per unit . The comparables bracket the subjects implied per unit value of $34,877 and is considered reasonable, but is at the higher end of the range.

Land Sale Comparables
Comp Location Sale Date Size AC Size SF Sale Price Zoning Density/AC Price per Unit 1 791 Harrington Way, Folsom 6/27/2025 1.95 84,811 $1,400,000 BP-PD 26.7 $26,923 2 2450 W El Camino Ave, Sacramento 12/12/2025 5.47 283,273 $2,500,000 R-2B 21.0 $21,930 3 14533 Alder Creek Pkwy, Folsom 7/3/2025 10.67 464,785 $11,000,000 MHD 24.8 $41,509 4 SWC Big Horn Blvd, Elk Grove 7/1/2025 9.65 420,354 $6,250,000 SC 25.0 $25,934 5 5044 Peabody Road, Fairfield 9/30/2025 9.75 424,710 $5,500,000 TS-PD 18.0 $31,429

08/11/2026 Item No.22.

Reconciliation of Value Conclusions

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Reconciliation of Value Conclusions
The Analysis of Value Conclusions is the final step in the appraisal process and involves the weighing of the individual valuation techniques in relationship to their substantiation by market data, and the reliability and applicability of each valuation technique to the subject property. The following table summarizes the opinions of the As-Is Market Value of the subject property’s fee simple interest. Based on the overall quality of the data and analyses, and considering the decision-making process of the typical buyer profile of the subject asset, primary emphasis was placed on the land sales comparison approach, which is reflected in my final opinion of market value below.

My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value.

Analysis of Value Conclusions
Valuation Indices As-Is
Market Value
Interest Appraised Fee Simple
Date of Value July 31, 2026
Final Value Conclusion $7,000,000
$/SF $24/SF
Exposure Time Six to Nine Months
Marketing Period Six to Nine Months

08/11/2026 Item No.22.

Certification

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I certify that, to the best of my knowledge and belief:
• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
• The signer of this report has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • Joe Esparza, MAI has performed no services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment.
• The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
• The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • Joe Esparza, MAI personally inspected the property that is the subject of this report. • No one provided significant real property appraisal assistance to appraiser signing this certification.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

As of the date of this report Joe Esparza, MAI completed the continuing education program for Designated Members of the Appraisal Institute.

08/11/2026 Item No.22.

Certification

SMF260804 49

August 5, 2026

Date

August 5, 2026

Date
Joe Esparza, MAI
Senior Valuation Services Director
Certified General Real Estate Appraiser
State of California License #AG031186
+1 916 724 5582
[email protected]

08/11/2026 Item No.22.

Assumptions & Limiting Conditions

SMF260804 50
This appraisal is subject to the following assumptions and limiting conditions:
• The appraiser may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. • We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens , encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management.
• The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property.
• The appraiser assumes no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate.
• This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication.
• The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraiser which is not specifically disclosed in this report.
• Without the written consent or approval of the author neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraiser and the firm with which the appraiser is connected.
• This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the author no portion of the report stands alone.
• The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. • The liability of Colliers Valuation & Advisory Services , its principals, agents, and employees is limited to the client.

Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser is in no way responsible for any costs incurred to discover or correct any deficiency in the property.
• The appraiser is not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous subs tances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutant s.

08/11/2026 Item No.22.

Assumptions & Limiting Conditions

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• The appraiser assumes no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non -compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion.
• An on-site inspection of the subject property was conducted. No evidence of asbestos materials on-site was noted.

A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on val ue and increased perceived risk, a revision of the concluded values may be necessary.
• A detailed soils study was not provided for this analysis. The subject's soils and sub -soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions.