Folsom City Council
September 22, 2026

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 13
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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 14
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-

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 15
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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 16
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:

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 17
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.

09/22/2026 Item No.10.

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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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 19
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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City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 20
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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 25

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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 26

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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 Page 27

ATTACHMENT E

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

09/22/2026 Item No.10.

09/22/2026 Item No.10.

Attachment 2

09/22/2026 Item No.10.

Resolution No. 11711

RESOLUTION NO. 11711

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

DEEMING IT NECESSARY TO INCUR BONDED INDEBTEDNESS IN

AND FOR CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT
NO. 22A (FOLSOM HEIGHTS)
WHEREAS, for the preliminary scope of the project and financing contemplated by these proceedings, reference is made to Resolutions No. 11679 and No. 11680 adopted by the City Council of the City of Folsom (the “City Council”) on August 11, 2026; and WHEREAS, on September 22, 2026, at the time and place scheduled for the public hearing concerning the formation of the proposed City of Folsom Community Facilities District No. 22A (Folsom Heights ) (the “District”) and designation of each improvement area therein (the “Improvement Areas”), said public hearing of protests was duly convened by the City Council, and the City Council duly heard all interested parties desiring to be heard; and WHEREAS, at said hearing, the City Council determine d that a majority protest under Section 53324 of the Government Code was not made at the hearing for any Improvement Area within the District and therefore the proposed formation of the District , designation of the Improvement Areas therein, and special tax to be levied within the District has not been eliminated by majority protest pursuant to said Section 53324;
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 re citals are true and correct.

Section 2. The City Council now deems it necessary to incur the contemplated bonded indebtedness for Improvement Area No. 1 and Improvement Area No. 2 within the District.

Section 3. The purpose for incurring the bonded indebtedness is to assist in the financing of the public facilities described in the Resolution to Form a Community Facilities District, to Designate a Future Annexation Therein and to Levy Special Taxes Therein adopted this date (the “Resolution of Formation”).

Section 4. All Taxable Property (as defined in Exhibits D-1 and D-2 of the Resolution of Formation) within the boundaries of Improvement Area No. 1 and Improvement Area No. 2 of the District shall be subject to a special tax to repay the bonded indebtedness for the District.

Section 5. Subject to t he requirements of the Resolution of Formation and this resolution, the amount of bonded indebtedness to be incurred, and the amount and timing of each issuance of bonds, shall be subject to the discretion of this City Council; provided that the maximum principal amount of bonded indebtedness to be paid for by City of Folsom Community Facilities District No. 22A, Improvement Area No. 1 ( Folsom Heights) is $ 22,000,000; and by City of Folsom Community Facilities District No. 22A, Improvement Area No. 2 (Folsom Heights) is $25,000,000.

09/22/2026 Item No.10.

Resolution No. 11711

Section 6. The maximum term of any issue of bonds under this authority shall not extend beyond 40 years from their date of issue.

Section 7. The maximum rate of interest shall be determined by competitive sale or by negotiation at the time of bond sa le, but in any case shall not exceed the legal rate as specified, from time to time, by Government Code Section 53531 or any similar controlling provision of law.

Section 8. It is the intention of this City Council that any bonds issued may be made callable on terms to be specified in any resolution or indenture providing for the form, execution and issuance of bonds, in accordance with the terms of the Mello-Roos Community Facilities Act of 1982 (the “Act”).

Section 9. The question of the authorization to issue the bonds descri bed herein and incur the bonded indebtedness to be paid for by the District will be submitted to the voters of each Improvement Area of the District at a special election in accordance with the Act and with the findings contained in the certificate regarding landowners heretofore filed in these proceedings.

Section 10. The City Clerk of the City of Folsom (the “City Clerk”) is hereby designated as the official to conduct a special, mailed-ballot election related to each Improvement Area of the District pursuant to Elections Code Sections 307 and 320.

Section 11. The special community facilities district election for each Improvement Area of the District (which shall be consolidated with the special community facilities district election to levy a special tax within such respective Improvement Area) shall be conducted by mailed ballot. In order to be counted, ballots must be returned to, and be physically received by the City Clerk before 6:30 p.m. on September 22, 2026. If all authorized ballots are received prior to that time, the City Clerk shall be so notified and, pursuant to Government Code Section 53326(d), immediately close the election and declare the results.

Section 12. The ballot language for Improvement Area No. 1 shall be as follows:

Shall the City of Folsom be authorized to form the City of Folsom Community Facilities District No. 22A (Folsom Heights) (the “District”), designate Improvement Area No. 1 and a future annexation therein, issue a maximum amount not to exceed $22,000,000 in bonds that will be paid for by Improvement Area No. 1 of the District, levy a special tax in Improvement Area No. 1 and finance public facilities and services by and through the District and shall the appropriations limit for Improvement Area No. 1 within the District for fiscal year 2026-27 be established in the amount of $4,000,000, all as specified in the City’s Resolution to Form a Community Facilities District, to Designate Improvement Areas Within the District, to Designate a Future Annexation Area T herein and to Levy Special Taxes Therein and Resolution Deeming it Necessary to Incur Bonded Indebtedness In and for City of Folsom Community Facilities District No. 22A (Folsom Heights) each adopted by the City Council of the City on September 22, 2026?

09/22/2026 Item No.10.

Resolution No. 11711

The ballot language for Improvement Area No. 2 shall be as follows:

Shall the City of Folsom be authorized to form the City of Folsom Community Facilities District No. 2 2A (Folsom Heights) (the “District”), designate Improvement Area No. 2 and a future annexation therein, issue a maximum amount not to exceed $25,000,000 in bonds that will be paid for by Improvement Area No. 2 of the District, levy a special tax in Improvement Area No. 2 and finance public facilities and services by and through the District and shall the appropriations limit for Improvement Area No. 2 within the District for fiscal year 2026-27 be established in the amount of $4,000,000, all as specified in the City’s Resolution to Form a Community Facilities District, to Designate Improvement Areas Within the District, to Designate a Future Annexation Area Therein and to Levy Special Taxes Therein and Resolution Deeming it Necessary to Incur Bonded Indebtedness In and for City of Folsom Community Facilities District No. 22A (Folsom Heights) each adopted by the City Council of the City on September 22, 2026?
Section 13. This resolution shall take effect from and after its adoption.

09/22/2026 Item No.10.

Resolution No. 11711

PASSED AND ADOPTED this 22nd day of September 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

09/22/2026 Item No.10.

Attachment 3

09/22/2026 Item No.10.

Resolution No. 11712

RESOLUTION NO. 11712

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

CALLING SPECIAL MAILED-BALLOT ELECTION IN THE CITY OF
FOLSOM COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
WHEREAS, reference is made to the Resolution to Form a Community Facilities District, to Designate Improvement Areas Within the District, to Designate a Future Annexation Therein and to Levy Special Taxes Therein (the “Resolution of Formation”) and to the Resolution Deeming it Necessary to Incur Bonded Indebtedness In and for City of Folsom Community Facilities District No. 22A (Folsom Heights) (the “Resolution of Necessity”), each adopted by the City Council of the City of Folsom (the “City Council”) on September 22, 2026; and WHEREAS, the levy of a special tax within each Improvement Area (as defined herein) of CFD 22A (as defined herein) proposed in the Resolution of Formation shall be submitted to the voters pursuant to Government Code Section 53326; and
WHEREAS, the authorization to issue bonded indebtedness proposed in the Resolution of Necessity shall be submitted to the voters pursuant to Government Code Section 53351; and WHEREAS, the setting of the appropriations limit shall be submitted t o the voters pursuant to Government Code Section 53325.7; and
WHEREAS, the three ballot questions just described shall be combined into a single ballot measure pursuant to Government Code Section 53353.5. The ballot language shall be as shown on the form of ballot attached hereto as Exhibit A, which form of ballot is hereby approved; and WHEREAS, a certificate regarding landowners have been filed with the City Clerk of the City of Folsom (the “City Clerk”);
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, as follows:

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

Section 2. This City Council hereby accepts the certificate regarding landowners heretofore filed in these proceedings and finds, in accordance therewith, that there are no registered voters residing within the boundaries of Improvement Area No. 1, Improvement Area No. 2, and Improvement Area No. 3 (the “Improvement Areas”) of Community Facilities District No. 22A (Folsom Heights) (“CFD 22A”) and have been no registered voters residing within the boundaries of each such Improvement Area for the 60 days preceding the date hereof . Accordingly, under Government Code Section 53326(b) the qualified electors in this election shall be the landowners owning land within each Improvement Area of CFD 22A.

Section 3. The City Council further finds, in accordance with the certificate regarding landowners that the landowners of record owning property within CFD 22A are those set forth in

09/22/2026 Item No.10.

Resolution No. 11712

the attachment to the certificate regarding landowners and that the attachment correctly sets forth the number of acres owned by each landowner and the number of votes to which each is entitled.

Section 4. The City Council hereby approves the form of Waiver and Consent Shortening Time Periods and Waiving Various Requirements for Proceedings and for Conducting Special Mailed -Ballot Election in the City of Folsom Community Facilities District No. 22A (Folsom Heights), attached hereto as Exhibit B. The City Council finds that the rights, procedures and time periods therein waived are solely for the protection of the voters, may be waived under Government Code Section 53326(a) and Section 53327(b), and that the waiver constitutes a full and knowing waiver, by any voter who has executed the form, of those rights, procedures and time periods.

Section 5. The City Council accepts the Certificate of the City Clerk that 100% of the voters eligible to vote in this election in each Improvement Area have delivered to the City Clerk properly executed waivers in the form of Exhibit B.

Section 6. Accordingly, this City Council hereby calls the special election described herein and sets September 22 , 2026 , as the election day. Purs uant to Government Code Section 53326(d), the election shall be conducted by mailed ballot. By attesting this resolution below, the City Clerk indicates her concurrence to such date and to the waivers and consents described in Section 4 hereof.

Section 7. The City Clerk is directed to cause the separate ballots to be mailed or delivered, in the form of Exhibit A hereto, to t he landowners for each Improvement Area shown on the attachment to the certificate regarding landowners. The City Clerk or her designee shall complete the form of ballot for each Improvement Area, and shall fill in the names of the landowners and the number of votes to be cast on each ballot, according to the certificate regarding landowners, before delivery or mailing.

Section 8. The City Clerk shall accept personal or mail delivery of the ballots at any time up to 6: 30 p.m. on September 22, 2026, provided, that if all authorized ballots are received by the City Clerk prior to that time, the City Clerk shall, pursuant to Government Code Section 53326(d), immediately close the election and declare the results to the City Council.

Section 9. This resolution shall take effect from and after its adoption.

09/22/2026 Item No.10.

Resolution No. 11712

PASSED AND ADOPTED this 22nd day of September 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

09/22/2026 Item No.10.

A-1

EXHIBIT A

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

FORM OF SPECIAL ELECTION BALLOT
(Mailed-Ballot Election)
This ballot is for the use of _________________________________________, a landowner owning land within City of Folsom Community Facilities District No. 22A (Folsom Heights), Improvement Area No. [1/2/3].

According to the provisions of the Mello-Roos Community Facilities Act of 1982 and the resolutions of the City Council of the City of Folsom, the above-named landowner is entitled to cast ________ votes on this ballot.

In order to be counted, this ballot must be certified below and be returned, either by mail or in person, before 6:30 p.m. on September 22, 2026, to:

Christa Freemantle, City Clerk
City of Folsom
50 Natoma Street
Folsom, CA 95630
Mailing by that date will not be sufficient. The ballot must be physically received by the City Clerk prior to the deadline in order to be counted.

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT, OR THE VOTER MAY WRITE NUMBERS IN THE SPACES PROVIDED.

BALLOT MEASURE
Shall the City of Folsom be authorized to form the City of Folsom Community Facilities District No. 22A (Folsom Heights ) (the “District”), designate Improvement Area No. [1/2/3] and a future annexation therein, [ issue a maximum amount not to exceed $[22,000,000/25,000,000] in bonds that will be paid for by Improvement Area No. [1/2] of the District], levy a special tax in Improvement Area No. [1/2/3] and finance public facilities and services by and through the District and shall the appropriations limit for Improvement Area No. [1/2/3] within the District for fiscal year 20 26-27 be established in the amount of
$[4,000,000/4,000,000/4,000,000], all as specified in the City’s Resolution to Form a Community Facilities District, to Designate Improvement Areas Within the District, to Designate a Future Annexation Area Therein and to Levy Special Taxes Therein and Resolution Deeming it Necessary to Incur Bonded Indebtedness Number of votes
YES

Number of votes
NO

09/22/2026 Item No.10.

A-2
In and for City of Folsom Community Facilities District No. 22A (Folsom Heights) each adopted by the City Council of the City on September 22, 2026?

Certification
The undersigned is or are the authorized representative(s) of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed as of September 22, 2026. [LANDOWNER]

By:

Name:

Title:

09/22/2026 Item No.10.

B-1

EXHIBIT B

FORM OF WAIVER AND CONSENT

SHORTENING TIME PERIODS AND WAIVING VARIOUS

REQUIREMENTS FOR PROCEEDINGS AND FOR

CONDUCTING SPECIAL MAILED-BALLOT ELECTION

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

The undersigned ________________________________, is the authorized representative of the owner (the “Owner”) of all of the property within Improvement Area No. [1/2/3] of the above-captioned Community Facilities District (the “District”).

The Owner is the present owner of [__] acres of land located within the proposed boundaries of Improvement Area No. [1/2/3]. To the actual knowledge of the undersigned, there are no registered voters residing within Improvement Area No. [1/2/3], and there have been none during the 90 day period preceding September 22, 2026.

The undersigned is (or are) the person (or persons) legally entitled and authorized to cast the ballot for the Owner in the election to be conducted within Improvement Area No. [1/2/3] of the District to determine, among other things, whether certain land, including land owned by the Owner, shall be subject to an annual special tax.

The undersigned, on behalf of the Owner, certifies that the Owner has received notice of the September 22, 2026 public hearing to be held by the City Council of the City of Folsom (the “City”) regarding the levy of special taxes in Improvement Area No. [1/2/3] and the incurring of bonded indebtedness by the District for Improvement Area No. [1/2/3]. The undersigned, on behalf of the Owner, agrees that the Owner received adequate notice of the September 22, 2026 hearing.

The Owner has received from the City, and the City has made available to the owner, necessary and relevant information regarding the proposed formation of the District and designation of Improvement Area No. [1/2/3] and the imposition of the special tax and the issuance of bonded indebtedness, as set forth in Resolution No. 11679 and Resolution No. 11680 adopted by the City Council of the City on August 11, 2026 (the “Resolutions”) to finance the facilities, services and other amounts as set forth in the Resolutions.

In order to induce the City to conduct an election on the same date that the District is formed, the undersigned, on behalf of the Owner, hereby waives:

1. any and all minimum time periods relative to the election pursuant to Government Code Section 53326(a);

2. preparation and distribution of an impartial analysis of the ballot measure, as well as arguments in favor and against, under the authority of Government Code Section 53327(b);

09/22/2026 Item No.10.

B-2

3. publication of notice of the election under Government Code Section 53352;

4. requirements regarding the time to mail ballots to the qualified electors under Elections Code Section 4101;

5. requirements regarding id entification envelopes for the return of mailed ballots contained in Government Code Section 53327.5;

6. requirements pertaining to impartial analysis, arguments or rebuttals concerning the election provided in Elections Code Sections 9160 to 9167, inclusive and Elections Code Section 9190; and

7. any other time limits or procedural requirements pertaining to the conduct of the election.

The undersigned, on behalf of the Owner, hereby waives any right to notice and hearing and consents to authorized facilities, expenses and rate and method of apportionment of special tax as described in the Resolution of Formation to be adopted by the City Council of the City of Folsom on September 22, 2026.

The undersigned, on behalf of the Owner, hereby waives any and all defects in notice or procedure in the formation of the District, time periods to record the boundary map, conduct of the election, whether known or unknown (other than the right to have ballots accurately counted), and states that the election is being expedited, pursuant to this waiver and consent, at the particular instance and request of the Owner.

Further, the undersigned, on behalf of the Owner, hereby waives any entitlement to initiate or prosecute any form of legal proceedings, including judicial proceedings, to challenge any aspect of the proceedings for levy of the special tax and for issuance of special tax bonds in the District.

I declare, under penalty of perjury, under the laws of the State of California, that the foregoing is true and correct and that this declaration is executed on __________________, 2026. [LANDOWNER]

By:

Name:

Title:

09/22/2026 Item No.10.

Attachment 4

09/22/2026 Item No.10.

Resolution No. 11713

RESOLUTION NO. 11713

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

DECLARING ELECTION RESULTS IN THE CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
WHEREAS, reference is made to the Resolution Calling Special Mailed -Ballot Election in the City of Folsom Community Facilities District No. 22A (Folsom Heights) (the “Resolution Calling Election”) adopted by the City Council of the City of Folsom (the “City Council”) on September 22, 2026; and
WHEREAS, the City Council has received, reviewed and hereby accepts the Certificate of City Clerk Regarding Election Results, dated September 22, 2026; 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 finds and declares that the ballot measure submitted to the qualified electors of the Improvement Area No. 1 for City of Folsom Community Facilities District No. 22A (Folsom Heights) pursuant to the Resolution Calling Election has been passed and approved by those qualified electors in accordance with California G overnment Code Sections 53328 and 53355.

Section 3. The City Council here by finds and declares that the ballot measure submitted to the qualified electors of the Improvement Area No. 2 for City of Folsom Community Facilities District No. 22A (Folsom Heights) pursuant to the Resolution Calling Election has been passed and approved by those qualified electors in accordance with California G overnment Code Sections 53328 and 53355.

Section 4. The City Council hereby finds and declares that the ballot measure submitted to the qualified electors of the Improvement Area No. 3 for City of Folsom Community Facilities District No. 22A (Folsom Heights) pursuant to the Resolution Calling Election has been passed and approved by those qualified electors in accordance with California G overnment Code Sections 53328 and 53355.

Section 5. The City Council hereby authorizes and directs the City Clerk to record the separate notice of special tax lien related to each such ballot measure in accordance with the provisions of California Government Code Section 53328.3 and California Streets and Highways Code Section 3114.5.

09/22/2026 Item No.10.

Resolution No. 11713

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

PASSED AND ADOPTED this 22nd day of September 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

09/22/2026 Item No.10.

Attachment 5

09/22/2026 Item No.10.

Resolution No. 11714

RESOLUTION NO. 11714

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOLSOM

DETERMINING THAT THE SPECIAL TAX OF CITY OF FOLSOM COMMUNITY FACILITIES DISTRICT NO. 22 (FOLSOM HEIGHTS) SHALL CEASE TO BE LEVIED

AND AUTHORIZING AND DIRECTING THE RECORDATION OF A NOTICE OF

CESSATION OF SPECIAL TAX

WHEREAS, the City Council (the “City Council”) of the City of Folsom (the “City”) previously formed the City of Folsom Community Facilities Dis trict No. 22 (Folsom Heights)” (“CFD 22”) and authorized the levy and collection of a special tax therein (the “Special Tax”); WHEREAS, a Notice of Special Tax Lien was recorded November 28, 2018, in the office of the County Recorder of Sacramento County; and
WHEREAS, Elliott Homes, Inc., as developer and landowner within CFD 22 , has requested that the City dissolve CFD 22; and
WHEREAS, no bonds have been issued and no Special Tax has been levied in connection with CFD 22, and CFD 22 is not obligated to pay any outstanding debt; and WHEREAS, the City Council has determined that it no longer intends to incur debt in order to construct facilities, and that there are no costs and incidental expenses of services or of the construction of facilities for which the levy of special taxes is needed; and WHEREAS, elimination of the Special Tax will not result in the loss of any benefits to the owners of property within CFD 22, but it will relieve them of the burden of paying the Special Tax; and
WHEREAS, the City Coun cil, acting as the legislative body of CFD 22 desires to take action in accordance with Government Code Section 53330.5 to determine that the obligation to pay the Special Tax within CFD 22 has ceased and to extinguish the lien created by the Notice of Special Tax Lien;
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. In accordance with Government Code Section 53330.5, the City Council acting as the legislative body of CFD 22 hereby determines that the obligation to pay the Special Tax within CFD 22 has ceased and hereby authorizes and directs the City Clerk to execute a Notice of Cessation of Special Tax and to cause it to be recorded with the County Recorder of the County of Sacramento.

09/22/2026 Item No.10.

Resolution No. 11714

Section 3. All actions heretofore taken by the officers and agents of the City with respect to the matters set forth in this resolution are hereby approved, confirmed, and ratified.

Section 4. This resolution shall take effect from and after its adoption.

PASSED AND ADOPTED this 22nd day of September, 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

09/22/2026 Item No.10.

Attachment 6

09/22/2026 Item No.10.

Ordinance No. 1379

ORDINANCE NO. 1379

AN UNCODIFIED ORDINANCE LEVYING SPECIAL TAXES
FOR THE FISCAL YEAR 2026-27 AND FOLLOWING FISCAL YEARS

SOLELY WITHIN AND RELATING TO THE CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
The City Council of the City of Folsom hereby ordains as follows:

SECTION 1 PURPOSE
The City Council of the City of Folsom hereby finds, determines and declares based on the record before it that:

1. The City is authorized to establish a community facilities district pursuant to the terms of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Division 2 of Title 5 of the California Government Code, commencing with Section 53311 (the “Act”); and

2. On September 22 , 2026 , the City Council adopted its Resolution No. [___] (the “Resolution of Formation ”) establishing the City of Folsom Community Facilities District No. 22A (Folsom Heights ) (the “District”) and designated three separate improvement areas therein (the “Improvement Areas”), pursuant to the Act; and

3. In accordance with the separate Rate and Method of Apportionment for each Improvement Area, the Resolution of Formation approved the annual levy, subject to voter approval, of a special tax in connection with each Improvement Area of the District (the “Special Tax”); and

4. The Resolution of Formation proposed the establishment of an appropriations limit for each Improvement Area of the District (the “Appropriations Limit”); and

5. On September 22, 2026, the City Clerk, as elections official, conducted an election of the landowners of each Improvement Area of the District (the “Elections”); and

6. On September 22, 2026, the City Council adopted its Resolution No. [___] certifying that, at the Election s, the landowne rs of each Improvement Area of the District approved the Special Tax and the Appropriations Limit for each respective Improvement Area; and

7. The City Council desires to levy and impose the Special Tax and to take other related actions.

SECTION 2

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FOLSOM
RESOLVES:

1. The recitals set forth in Section 1 are true and correct.

09/22/2026 Item No.10.

Ordinance No. 1379

2. A special tax is hereby levied on all Taxable Property (as defined in the respective Rate and Method of Apportionment ) within each Improvement Area of the District, for the 2026-27 fiscal year and for all subsequent fiscal years in the amount of the maximum authorized tax, provided that this amount may be adjusted annually, subject to the maximum authorized special tax limit, by resolution of the City Council.

3. The Finance Director of the City of Folsom or designee thereof (the “CFD Administrator”) is authorized and directed, to determine each year, without further action of the City Council, the Special Tax, to prepare the annual Special Tax roll in the amount of the Special Tax in accordance with the related exhibit and, without further action of the City Council, to provide all necessary and appropriate information to the Sacramento County Auditor- Controller’s Office (the “County”) in proper form, and in proper time, necessary to effect the correct and timely billing and collection of the Special Tax on the secured property tax roll of the County; provided, that as provided in the Resolution of Formation and Section 53340 of the California Government Code, the City has reserved the right to utilize any method of collecting the Special Tax which it shall, from time to time, determine to be in the best interests of the City of Folsom (the “City”), including bu t not limited to, direct billing by the City to the property owners and supplemental billing.

4. The appropriate officers and agents of the City are authorized to make adjustments to the Special Tax roll prior to the final posting of the Special Tax to the Co unty tax roll each fiscal year, as may be necessary to achieve a correct match of the Special Tax levy with the assessor’s parcel numbers finally utilized by the County in sending out property tax bills.

5. The City agrees that, in the event the Special Tax is collected on the secured tax roll of the County, the County may deduct its reasonable and agreed charges for collecting the Special Tax from the amounts collected, prior to remitting the Special Tax collections to the City.

6. Taxpayers who have requested c hanges or corrections of the Special Tax pursuant to Section J of the respective Rate and Method of Apportionment and who are not satisfied with the decision of the CFD Administrator (whether the CFD Administrator disagrees with the taxpayer or concludes t hat the City is not authorized to consider the change requested), may appeal to the City Council. The appeal must be in writing and fully explain the grounds of appeal, and must be based solely on the correction of mistakes in the levy based upon the stat us of the property, and no other appeals will be allowed. The CFD Administrator shall schedule the appeal for consideration within a reasonable time at a City Council meeting.

SECTION 3 SEVERABILITY
If for any cause any portion of this ordinance is found to be inva lid, or if the Special Tax is found inapplicable to any particular parcel by a court of competent jurisdiction, the balance of this ordinance, and the application of the Special Tax to the remaining parcels, shall not be affected.

09/22/2026 Item No.10.

Ordinance No. 1379

SECTION 4 EFFECTIVE DATE
This ordinance shall take effect and be in force as a tax measure thirty (30) days following its second reading and adoption at a meeting of the City Council ; and before the expiration of twenty (20) days after its passage the same shall be published, with the names of the members voting for and against the same, at least once in a newspaper of general circulation published and circulated in the District.

This ordinance was introduced and the title thereof read at the regular meeting of the City Council on September 22, 2026, and the second reading is to occur at the regular meeting of the City Council on October __, 2026.

On a motion by Council member _________ seconded by Councilmember ___________, the foregoing ordinance was passed and adopted by the City Council of the City of Folsom, State of California, this __th day of October 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

09/22/2026 Item No.10.

Attachment 7

09/22/2026 Item No.10.

nbsgov.com
Prepared by:

Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516

Public Hearing Report for:

Community Facilities District No. 22A
(Folsom Heights)
September 2026

Prepared by NBS for and on behalf of the City of Folsom

09/22/2026 Item No.10.

TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................... 1 DISTRICT INFORMATION ........................................................................................................ 2 Background .......................................................................................................................... 2 District Purpose ................................................................................................................... 2 District Description .............................................................................................................. 3 District Boundaries .............................................................................................................. 3 DESCRIPTION OF FACILITIES AND SERVICES ............................................................................ 4 Facilities ............................................................................................................................... 4 Authorized Services ............................................................................................................. 6 Incidental Expenses ............................................................................................................. 7 COST ESTIMATE ..................................................................................................................... 9 Estimated Cost of Public Facilities ....................................................................................... 9 Estimated Cost of Public Services........................................................................................ 9 Annual Appropriations Limit ............................................................................................... 9 Maximum Bonded Indebtedness ...................................................................................... 10 Maximum Special Tax Rates .............................................................................................. 10 Annual Maximum Special Tax Escalation .......................................................................... 10 RATE AND METHOD OF APPORTIONMENT ........................................................................... 14 Term of Facilities, Services, & Transition Services Special Tax ......................................... 14 Manner of Collection ......................................................................................................... 14 APPENDIX A: BOUNDARY MAP .............................................................................................. A APPENDIX B: RATE AND METHOD OF APPORTIONMENT – IA 1 ............................................... B APPENDIX C: RATE AND METHOD OF APPORTIONMENT – IA 2 ............................................... C APPENDIX D: RATE AND METHOD OF APPORTIONMENT – IA 3 .............................................. D

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 1

INTRODUCTION
The City Council (the “City Council”) of the City of Folsom (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on August 11, 2026, adopt Resolution No. XXXX entitled “A Resolution of the City Council of the City of Folsom Approving a Proposed Boundary Map and Declaring Intention to Form a Community Facilities District to be Named ‘City of Folsom Community Facilities District No. 22A (Folsom Heights),’ Identify Territory Proposed for Annexation to the Community Facilities District in the Future and to Levy Special Taxes Therein” (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Folsom Community Facilities District No. 22A (Folsom Heights) (the “District” or “CFD 22A”).

Section 53321.5 of the Act provides that the Report contain the following:

1. A brief description of the public facilities and services to be provided by the District; and

2. An estimate of the fair and reasonable cost of providing the public facilities and services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on August 11, 2026, by the City Council.

NOW, THEREFORE, the City Manager of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:
 DISTRICT INFORMATION. Information related to the District, including background information, land use plans, and the proposed boundaries that include those properties and parcels on which special taxes may be levied to pay for the costs and expenses of the facilities and services.
 DESCRIPTION OF FACILITIES AND SERVICES. A description of the facilities and services that the City Council has determined to be eligible to be funded by the District.  COST ESTIMATE. The cost estimate for the District facilities and services.  RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax for each Improvement Area approved by this City Council on August 11, 2026.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 2

DISTRICT INFORMATION
Background
The District is located within the Folsom Plan Area, south of Highway 50. The Folsom Plan Area is located on approximately 3,500 acres and is bounded by Grand Prairie Road on the west, Highway 50 on the north, White Rock Road on the south, and the Sacramento County/El Dorado County boundary on the east. The Folsom Plan Area is a master-planned community, and, through December 31, 2025, the City has received and approved several Specific Plan Amendments that have changed the entitlements to include approximately 11,300 residential units of various size and densities and approximately 2.5 million building square feet of non-residential land uses.

FOLSOM PLAN AREA SPECIFIC PLAN PUBLIC FACILITIES FINANCING PLAN On January 28, 2014, the City Council approved the Folsom Plan Area Specific Plan Public Facilities Financing Plan (the “PFFP”). The PFFP is an $877 million plan that describes the backbone infrastructure and facility requirements, presents a comprehensive financing strategy, and sets forth the estimated time horizon for the development of the Folsom Plan Area. The backbone infrastructure improvements identified in the PFFP include roadways, on-site water, off-site potable water, recycled water, wastewater (sewer), storm drainage, and habitat mitigation for infrastructure. The public facilities identified in the PFFP include public schools, parks, transit services, housing trust, trails, fire facilities and equipment, police facilities and equipment, a municipal service center, corporation yard, solid waste, branch library, a community and aquatic center, other general capital facilities, and transportation.

District Purpose
This District is being formed, with three separate improvement areas (the “Improvement Areas”) to provide funding for all or a portion of each Improvement Area’s share of the backbone infrastructure, on- site and off-site costs, the estimated Specific Plan Infrastructure Fee Program obligation, and other internal site improvements necessary for development. The District will provide funding for authorized facilities through a combination of bonded indebtedness and pay as you go funding (the “PAYGO”), both of which are secured by the levy of special taxes upon property within the boundaries of each Improvement Area of the District. In addition, a special tax will be levied upon District property to provide funding for development specific services that include open space, landscape corridors, streetlight maintenance, median, entries and entry monumentation maintenance, neighborhood park maintenance, community amenities, and storm water management.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 3 District Description
The District boundaries include three Improvement Areas and encompass all of the property designated by the Assessor’s Parcel Numbers below:

Improvement Area (“IA”) 1:
072-3460-013-0000, 072-3460-014-0000, 072-3460-015-0000, 072-3460-016-0000, 072-3460-017-0000, 072-3460-018-0000, 072-3460-019-0000, 072-3460-020-0000, 072-3460-021-0000, 072-3460-022-0000, 072-3460-023-0000
IA 2A:
072-3460-001-0000, 072-3460-002-0000, 072-3460-003-0000, 072-3460-007-0000, 072-3460-008-0000, 072-3460-009-0000, 072-3460-010-0000, 072-3460-011-0000, 072-3460-012-0000 IA 3:
072-3460-004-0000, 072-3460-005-0000, 072-3460-006-0000

The current development plans for each IA are presented in the table below.

Proposed Development within the Improvement Areas
Development Plan IA 1 IA 2 IA 3
Single-Family Detached Property - SF Zoning (1) 78 55 0 Single-Family Detached Property - SFHD Zoning < 5,775 sq.ft. (1) 38 81 0 Single-Family Detached Property - SFHD Zoning >= 5,775 sq.ft. (1) 93 60 0 Single-Family Detached Property - MLD Zoning (1) 53 72 0 Non-Residential Property (2) 0 0 11.549
(1) Residential units.
(2) Acres.

District Boundaries
The proposed boundaries of the District, including the Improvement Areas, are identified on the map of the District recorded on August 14, 2026, in Book 149 at Page 12 of Maps of Assessment and Community Facilities Districts in the office of the County Recorder for the County of Sacramento. The District map is on file with the City Clerk, to which reference is hereby made and a reduced copy of such map is set forth in Appendix A of this Report.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 4

DESCRIPTION OF FACILITIES AND SERVICES
Facilities
The Facilities to be financed by CFD 22A include facilities designed to meet the needs of development within CFD 22A, whether such facilities are located within or outside the boundaries of CFD 22A, and include but are not limited to the following:

TRANSPORTATION IMPROVEMENTS
Eligible roadway improvements include, but are not limited to: acquisition of land and easements; roadway design; project management; bridge crossings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; joint trenches, underground utilities and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off- site), enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters, Bus Rapid Transit improvements including transfer stations and regional public transit improvements; masonry walls; traffic control and agency fees; and other improvements related thereto. Eligible improvements for the roads listed herein also include any and all necessary underground potable and recycled water, sanitary sewer, and storm drainage system improvements.

Authorized facilities include the following transportation improvements:
- Summit Street
- Prima Drive
- Empire Ranch Road
- Alder Creek Parkway
- Folsom Heights Drive
- Other public roadway improvements designed to meet the needs of development of property within CFD 22A, including internal subdivision streets and related underground utilities.

WATER SYSTEM IMPROVEMENTS
Authorized facilities include any and all water facilities designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to: water storage, treatment and distribution facilities including waterlines and appurtenances, gate valves, pressure reducing stations, flow meters, fire hydrants, and other improvements related thereto such as site clearing, grading and paving; curbs and gutters; booster pump stations and power; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

RECYCLED WATER SYSTEM IMPROVEMENTS

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 5 Authorized facilities include any and all recycled water system facilities designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to: treatment and distribution facilities including pipelines and appurtenances, gate valves, flow meters, booster pump pressurization system, and other improvements related thereto - such as site clearing, grading and paving; curbs and gutters; booster pump stations; stand-by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

DRAINAGE SYSTEM IMPROVEMENTS
Authorized facilities include any and all drainage and storm drain improvements designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to:
excavation and grading, pipelines and appurtenances, outfalls and water quality measures, detention/retention basins, drainage pretreatment facilities, drainage ways/channels, pump stations, landscaping and irrigation; access roads, gates, and fencing; and striping and signage and other improvements related thereto.

WASTEWATER SYSTEM IMPROVEMENTS
Authorized facilities include any and all wastewater facilities designed to meet the needs of development of property within CFD 22A. These facilities include, but may not be limited to, pipelines and all appurtenances thereto; manholes; tie-in to existing main lines; force mains; lift stations; upgrades to existing lift stations; odor-control facilities; and permitting related thereto; and related sewer system improvements.

PARK, PARKWAY AND OPEN SPACE IMPROVEMENTS
Authorized facilities include any and all improvements to parks, parkways and open space required for development of property within CFD 22A. These facilities include, but may not be limited to: grading, turf, shrubs and trees, landscaping irrigation, site lighting, drainage, sanitary sewer and water service, pedestrian and bicycle trails, protective fencing (including soundwalls), pedestrian/bicycle bridges, storm drain crossings, wetland mitigation, hawk mitigation for authorized facilities herein, access gates and fencing and related open space improvements. Authorized facilities include acquisition of any and all parkland as well as open space/bike trail/public access easements required for development of property within CFD 22A.

SPECIFIC PLAN INFRASTRUCTURE FEE INFRASTRUCTURE
Authorized facilities include any and all improvements that are included in the Specific Plan Infrastructure Fee Program adopted by the City Council on September 8, 2015, including any future amendments thereto.

OTHER INCIDENTAL EXPENSES AND BOND ISSUANCE COSTS
In addition to the above facilities, other incidental expenses as authorized by the Mello-Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facilities (including the cost of environmental evaluation, remediation and mitigation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construction management; costs (including the costs of legal services) associated with the formation

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 6 of the Mello-Roos CFD; issuance of bonds (if any); determination of the amount of taxes; collection of taxes; payment of taxes; costs of calculating and providing reimbursements from one-time special tax payments; or costs otherwise incurred in order to carry out the authorized purposes of CFD 22A; and any other expenses incidental to the formation and implementation of CFD 22A and to the construction, completion, inspection and acquisition of the authorized facilities.

Authorized Services
The authorized services to be funded from the levy and collection of annual special taxes include those set forth below in addition to the costs associated with collecting and administering the special taxes and annual administration of CFD 22A.

CFD 22A will be eligible to fund all or a portion of the costs of reconstruction and/or rehabilitation, operation, maintenance, repair and replacement, and servicing of the following items not otherwise subject to funding from the City of Folsom Community Facilities District No. 18 (Folsom Plan Area – Area-Wide Improvements and Services):

1. Open Space improvements, operations and management, monitoring, maintenance (including general maintenance, signage, City owned fence maintenance, trash and debris collection, and bike trails and their appurtenances [drainage culverts or pipes from adjacent subdivisions] within open space), creation and maintenance of fire breaks, Permits, Vandalism/Graffiti, Flood Conveyance (Vegetation/tree removals), Beaver dam removals, Outfall/drainage swale maintenance, Erosion control/bank stabilization, Native planting/replanting, Pre and post emergent, maintenance activities as required by a 404 permit and Operations and Management Plan-Conservation and Passive Recreation Open Space, dated June 9, 2017, and repair and replacement of facilities within open space areas in the Project Area.

2. The maintenance of on-site landscape corridors and paseos designed to serve land uses within CFD 22A, including general maintenance, masonry walls, accent lighting, water and utility costs.

3. The maintenance of streetlights, including any utility costs related thereto.

4. The maintenance of medians, entries, and entry monumentation.

5. Neighborhood park maintenance, and repair and replacement.

6. Community amenities, such as a community clubhouse.

7. Storm water management, water quality structural controls, including drainage swales constructed between storm drain facilities and receiving waters.

8. Miscellaneous costs related to any of the items described above including planning, engineering, GIS, legal, and city and county administration costs.

9. The levy of special taxes to accumulate sinking funds for anticipated future repairs or replacement costs of landscape corridors, irrigation facilities, medians, entries and entry monumentation,

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 7 lighting, neighborhood parks, storm water management and other facilities maintained by CFD 22A as determined by the Administrator.

Annual maintenance functions and costs generally will include the installation, maintenance and servicing of ground cover, shrubs and trees, irrigation systems, street lighting, fencing, sound walls, sidewalks, monuments, enhanced open space maintenance including but not limited to maintaining the enhanced open space areas located adjacent to avoided or created habitat mitigation areas and other buffer areas between the enhanced open space and vertical development, bike trails, walkways, entry signage, street pavers, and labor, materials, supplies, utilities (including water and electricity) and equipment, as applicable, for property owned or maintained by the City. Annual maintenance costs include an allowance for long-term repair and replacement of improvements.

CFD 22A may fund any of the following related to the maintenance of the services described above:
obtaining, repairing, reconstructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of the personnel necessary or convenient to provide the services, and other related expenses and the provision of reserves for repairs and replacements for the future provision of services. It is expected that the services will be provided by the City, either with its own employees or by contract with third parties, or any combination thereof. CFD 22A may also fund administrative fees of the City related to CFD 22A.

CFD 22A will further be eligible to fund all or a portion of the costs of the following public services:

Police, fire and other emergency services that are in addition to those services that were provided within the boundaries of CFD 22A at the time of formation of CFD 22A, including but not limited to (i) the costs of contracting services, (ii) related equipment, vehicles, ambulances, fire apparatus and supplies, (iii) the salaries and benefits of City and non-City staff that directly provide police, fire and emergency services, and (iv) City and non-City overhead costs associated with providing such services within CFD 22A Incidental Expenses
It is anticipated that the following incidental expenses may be incurred for CFD 22A:
 Engineering services
 Special tax consultant services
 City review and administration
 Bond counsel services
 Bond counsel expenses
 Disclosure counsel services
 Disclosure counsel expenses
 Independent municipal advisor services and expenses
 Appraiser services

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 8  Market absorption study and real estate economist services  Initial bond transfer agent, fiscal agent, registrar and paying agent fees  Rebate calculation service set up charge
 Bond printing
 Offering memorandum printing and mailing costs
 Publishing, mailing and posting of notices
 Underwriter’s discount
 Bond reserve fund
 Capitalized interest
 Bond syndication costs
 Governmental notification and filing costs
 Credit enhancement costs
 Real estate acquisition costs
 Rating agency fees
 Charges and fees of City other than those waived
Certain annual costs may be included in each annual special tax levy. These include:
 Annual bond transfer agent, fiscal agent, registrar and paying agent fees  Annual rebate calculation costs
 Special tax consultant costs and administrative expenses  Other necessary consultant costs
 Costs of posting and collecting the special taxes
 Personnel and Administrative costs of the City
 Arbitrage rebate
 Continuing disclosure reporting and compliance

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 9

COST ESTIMATE
Estimated Cost of Public Facilities
The District is eligible to finance the authorized public facilities described in the Description of Facilities and Services section of this Report. The estimated cost for constructing all required facilities for the Folsom Heights subdivision is approximately $83,819,615, covering backbone infrastructure, soft costs, and improvement area subdivision infrastructure. Backbone infrastructure improvements include upgrades to transportation, water systems, recycled water systems, drainage, wastewater, parks, parkways, and open spaces. Subdivision infrastructure encompasses underground utilities, roadways, street lighting, sound walls, and landscaping.

The District will provide the financing to fund the authorized public facilities and estimated Specific Plan Infrastructure Fee obligation through bond issuance and the generation of PAYGO special tax revenue from the levy and collection of the facilities special tax within each IA. The primary pledge of facilities special tax revenues will be to service outstanding debt. Facilities special tax revenues in excess of the annual debt service and administrative expenses will be used on a PAYGO basis. The developers will retain 100 percent of the annual PAYGO revenues to fund authorized facilities for the first 20 years, beginning the fiscal year following the issuance of the first building permit or the issuance of the first series of bonds or other debt for the respective IA, whichever occurs first for each IA. Beginning the 21st year and thereafter, the City will be able to utilize 100 percent of the annual PAYGO revenues to fund or acquire eligible facilities.

Estimated Cost of Public Services
The District is eligible to finance the authorized public services described in the Description of Facilities and Services section of this Report. The authorized public services and the estimated costs herein are subject to review and confirmation and the actual costs may differ from the estimated costs presented below.

District Services Cost Estimate for each IA
Description IA 1 IA 2 IA 3
Landscaping & Irrigation $12,163 $12,314 $1,800
Public Safety Services 16,201 16,401 2,398
Administrative Services 6,480 6,561 959
Total Services Cost Estimate for each IA: $34,844 $35,276 $5,158

Annual Appropriations Limit
The Fiscal Year 2026/27 annual appropriations limit for each IA is:
 IA 1: $4,000,000
 IA 2: $4,000,000
 IA 3: $4,000,000

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 10 Maximum Bonded Indebtedness
The maximum authorized bonded indebtedness for each IA is:
 IA 1: $22,000,000
 IA 2: $25,000,000
 IA 3: $0
Maximum Special Tax Rates
The determination and application of the maximum special tax rates for the Improvement Areas are more fully set forth in the Rate and Method of Apportionment for each IA, which are included under Appendices B through D of this Report. The Rate and Method of Apportionment for each IA of the District was included as part of the Resolution of Intention, approved by the City Council on August 11, 2026, and established Fiscal Year 2026/27 maximum special tax rates. The Fiscal Year 2026/27 maximum special tax rates for each IA are presented in the tables on the following pages.

Annual Maximum Special Tax Escalation
On each July 1, commencing on July 1, 2027, the Facilities Special Tax shall be increased by 2% of the maximum facilities special tax in effect for the previous Fiscal Year.

On each July 1, commencing on July 1, 2027, the Services Special Tax shall be increased by 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%).

On each July 1, commencing on July 1, 2027, the Transition Services Special Tax shall be increased by 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%).

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 11 IA 1
Maximum Special Tax Rates
Fiscal Year 2026/27

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.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 12

IA 2
Maximum Special Tax Rates
Fiscal Year 2026/27

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.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 13 IA 3
Maximum Special Tax Rates
Fiscal Year 2026/27

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.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report 14

RATE AND METHOD OF APPORTIONMENT
All of the property located within the District, unless exempted by law or by the Rate and Method of Apportionment, shall be taxed for the purpose of providing the necessary facilities and services for the District. Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The special tax "may be based on benefit received by parcels of real property, the cost of making facilities available to each parcel, or other reasonable basis as determined by the legislative body," although the special tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution.

As shown in Appendices B through D, the Rate and Method of Apportionment for each IA provides information sufficient to allow each property owner to estimate the maximum special tax that he or she will be required to pay.

Term of Facilities, Services, & Transition Services Special Tax The District’s facilities special tax shall be levied commencing in Fiscal Year 2026/27 and shall be levied to the extent necessary to fully satisfy the annual facilities special tax requirement. For each IA, the facilities special tax shall be levied for a period no longer than the earlier of fiscal year 2086/87 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 or other debt was issued within the IA.

The District’s services special tax shall be levied commencing in Fiscal Year 2026/27 and shall be levied until the transition event occurs, which shall be the earlier of Fiscal Year 2086/87 or the or the fiscal year when the District 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 an improvement area 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 an improvement area. The District’s transition services special tax shall commence in the transition year, which is the first year in which the District administrator determines that the transition event occurred in the prior fiscal year.

The District’s transition services special tax shall be levied commencing in the transition year and shall be levied in perpetuity unless and until such time the City determines that revenues are no longer needed to pay the transition services special tax requirement.

Manner of Collection
The annual District special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the City, may directly bill the District special tax, and 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.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report A APPENDIX A: BOUNDARY MAP
The boundary map for the District, including the boundaries for the Improvement Areas, is shown on the following pages. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

09/22/2026 Item No.10.

09/22/2026 Item No.10.

City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report B APPENDIX B: RATE AND METHOD OF APPORTIONMENT –
IA 1
The following pages provide a copy of the Rate and Method of Apportionment for IA 1.

09/22/2026 Item No.10.

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

RATE AND METHOD OF APPORTIONMENT FOR

CITY OF FOLSOM
COMMUNITY FACILITIES DISTRICT NO. 22A
(FOLSOM HEIGHTS)
IMPROVEMENT AREA 1
A Special Tax, as hereinafter defined, shall be levied on each Assessor's Parcel of Taxable Property within Improvement Area No. 1 of the City of Folsom Community Facilities District No. 22A (Folsom Heights) (CFD No. 22A IA1) and collected each Fiscal Year in an amount determined by the CFD No. 22A IA1 Administrator through the application of the Rate and Method of Apportionment as described below. All of the real property within CFD No. 22A IA1, 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 IA1. “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 IA1 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 IA1 under the Act.
“CFD No. 22A IA1” means City of Folsom Community Facilities District No. 22A IA1 (Folsom Heights). “CFD No. 22A IA1 Administrator” means the City’s Finance Director, or designee thereof, responsible for determining the Facilities Special Tax Requirement, Services Special Tax Requirement, and

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1. “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 IA1 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 IA1, 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 IA1, or any designee thereof of providing continuing disclosure regarding the Bonds pursuant to

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1, 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 IA1 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 IA1 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 IA1 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 IA1.
“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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1 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 IA1 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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1.
“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 IA1, 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 IA1.
“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 IA1, 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 IA1. “Public Property” means any property within the boundaries of CFD No. 22A IA1, 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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1, 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 IA1 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 IA1, 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 IA1 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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 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 IA1 that are not exempt from the CFD No. 22A IA1 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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 8
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 IA1 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 IA1 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 IA1. “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 IA1, 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 IA1 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 IA1, 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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 1 Page 9
available to reduce the annual Transition Services Special Tax levy as determined by the CFD No. 22A IA1 Administrator.
“Transition Year” means the first year in which the CFD No. 22A IA1 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 IA1 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 IA1 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 IA1 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 IA1 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 IA1.

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 IA1 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 IA1 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 IA1 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 IA1 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 IA1.

Using the definitions and procedures described herein, the CFD No. 22A IA1 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 IA1 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 IA1 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 IA1 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 IA1 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 IA1 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 IA1, 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 IA1 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 IA1 Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal. The CFD No. 22A IA1 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 IA1 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 IA1 Administrator shall review the appeal, meet with the appellant if the CFD No. 22A IA1 Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD No. 22A IA1 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 IA1 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 IA1, 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 IA1 Administrator with written notice of intent to partially prepay. Within 30 days of receipt of such written notice, the CFD No. 22A IA1 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 IA1 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 IA1, 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 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.

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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.

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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.

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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.

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ATTACHMENT E

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

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City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report C APPENDIX C: RATE AND METHOD OF APPORTIONMENT –
IA 2
The following pages provide a copy of the Rate and Method of Apportionment for IA 2.

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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

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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 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

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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 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.

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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 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.

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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 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.

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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 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.

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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 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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City of Folsom
Community Facilities District No. 22A (Folsom Heights) Public Hearing Report D APPENDIX D: RATE AND METHOD OF APPORTIONMENT –
IA 3
The following pages provide a copy of the Rate and Method of Apportionment for IA 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

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 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 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.

09/22/2026 Item No.10.

City of Folsom - Community Facilities District No. 22A (Folsom Heights) July 20, 2026 Improvement Area 3 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 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.