Fontana City Council
April 14, 2026

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COMMUNITY FACILITIES

DISTRICT REPORT

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 117
(SOUTHRIDGE )

Report Date: April 14, 2026

www.FinanceDTA.com 18201 Von Karman, Suite 220
Irvine, CA 92612

COMMUNITY FACILITIES DISTRICT REPORT
FOR

CITY OF FONTANA
COMMUNITY FACILITIES DISTRICT NO. 117
(SOUTHRIDGE )

Prepared for:

City of Fontana
16860 Valencia Avenue
Fontana, CA 92335

TABLE

OF CONTENTS

SECTION
I INTRODUCTION ................................ .............................. 1 II PROJECT DESCRIPTION ................................ ................ 2

III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC
FACILITIES AND SERVICES ................................ ............ 3 A Description of Public Facilities and Services ................ 3 B Estimated Costs of Public Facilities and
Services ................................ ................................ ................. 4

IV BONDED INDEBTEDNESS AND INCIDENTAL
EXPENSES ................................ ................................ .......... 6 A Projected Bond Sales ................................ ......................... 6 B Incidental Bond Issuance Expenses to be
Included in the Proposed Bonded
Indebtedness ................................ ................................ ....... 6 C Incidental Expenses to be Included in the
Annual Levy of Special Taxes ................................ ........... 6 V RATE AND METHOD OF APPORTIONMENT .............. 7
A Explanation for Special Tax Apportionment ................. 7 B Maximum Facilities Special Tax ................................ ....... 8 C Backup Facilities Special Tax ................................ ............ 9 D Maximum Services Special Tax ................................ ........ 9 E Accuracy of Information ................................ ................... 9 VI BOUNDARIES OF THE CFD ................................ .......... 10 VII GENERAL TERMS AND CONDITIONS ....................... 11 A Substitution of Facilities and Services ......................... 11 B Appeals and Interpretations ................................ ........... 11 C Prepayment of Special Tax ................................ ............. 11

APPENDICES

APPENDIX A RATE AND METHOD OF

APPORTIONMENT

APPENDIX B BOUNDARY MAP

1 SECTION I

INTRODUCTION

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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I INTRODUCTION
WHEREAS, the City Council of the City of Fontana (hereinafter referred to as the "Council") did, pursuant to the provision of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part 1, Division 2 of Title 5 (commenc ing with Section 53311) of the Government Code of the State of California (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District (“CFD”). This CFD being City of Fontana CFD No. 117 (Southridge) shall hereinafter be referred to as:
"CFD No. 117"; and,
WHEREAS, on March 10, 2026, Council, pursuant to the Act, adopted a resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FO NTANA, CALIFORNIA OF

INTENTION TO ESTABLISH A COMMUNITY FACILITIES DISTR ICT PROPOSED TO BE NAMED CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN" (hereinafter referred to as the "Resolution of Intention") directing that the Report generally contain the following:

1. A brief description of the public facilities and services by type that will be required to adequately meet the needs of CFD No. 117; and

2. An estimate of the cost of providing the public facilities and services, including an estimate of the fair and reasonable cost of the public facilities proposed to be purchased as completed public facilities and of the incidental expenses proposed to be paid.

WHEREAS, each officer of the City of Fontana (hereinafter referred to as the "City") who is or will be responsible for providing one or more of the proposed types of public facilities or services to be financed by CFD No. 117 has hereby directed DTA Public Finance, Inc. (“DTA”) to study the proposed CFD No. 117 and, at or before the time of the public hearing on the establishment of CFD No. 117, file the Repor t with Council pursuant to the provisions of the Resolution of Intention.

NOW, THEREFORE, DTA does hereby submit the Report.
2 SECTION II

PROJECT DESCRIPTION

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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II PROJECT DESCRIPTION
CFD No. 117 encompasses approximately 32.2 gross ac res of land within the City located on the east side of Live Oak Avenue and south of Village Drive. Of this acreage, approximately 20.0 acres are expected to be developed into uses subject to a Mello- Roos Special Tax 1. At buildout, it is currently anticipated that CFD No. 117 will consist of approximately two hundred fifty-five (255) detached condominium units ranging in size from 1,710 to 2,320 square feet.

1 Please note that all capitalized terms used herein, unless otherwise indicated, shall have the meanings defined in the Rate and Method of Apportionment for CFD No. 117. 3 SECTION I II

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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III DESCRIPTION AND ESTIMATED COSTS OF PUBLIC FACILITIE S AND

SERVICES
A CFD may provide for the purchase, construction, expansion or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements, with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of d evelopment or rehabilitation occurring within the CFD. In addition, a CFD may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the CFD. A CFD may also provide for the financing of certain public services to meet these demands.

A Description of Public Facilities and Services
The type of public facilities proposed to be eligible for funding by CFD No. 117, as identified in the resolution establishing CFD No. 117 (the "Resolution of Formation"), shall consist of those listed below. It is intended that CFD No. 117 will be authorized to finance all or a portion of the costs of any of the following public facilities to be owned and operated by the City, and such public facilities shall be constructed, whether or not acquired in their completed states, pursuant to the plans and specifications approved by the City:

A.1 Facilities
The types of public facilities to be financed by CFD No. 117 are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, flood control facilities, fire protection facilities, police facilities, public facilities, library facilities, water distribution, treatment and storage facilities, dry utilities including natural gas electricity and telecommunications, and park and recreation facilities including trails and pathways, and land, landscaping, rights-of-way and easements necessary for any of such facilities and incidental expenses.

A.2 Facilities Authorized to be Purchased as Completed Public Facilities The types of public facilities to be purchased as completed facilities are streets, including grading, paving, curbs and gutters, sidewalks, street signalization and signage, street lights and parkway and landscaping related thereto, sewers, storm drains, water distribution, treatment and storage facilities, dry utilities including natural gas electricity and telecommunications, and park and recreation facilities including trails and pathways, and land, landscaping, rights-of-way and easements necessary for any of such facilities and incidental expenses. 4 SECTION I II

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

www.FinanceDTA.com
A.3 Services
The types of public services proposed to be eligible for funding by CFD No. 117 are fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City.

A.4 Incidental Expenses
The incidental expenses proposed to be incurred include the following:

The cost of planning and designing public facilities to be financed by CFD No. 117, including the cost of environmental evaluations of those facilities; The costs associated with the creation of CFD No. 117, issuance of CFD No. 117 bonds (the "Bonds"), determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 117; and
Any other expenses incidental to the construction, completion, and inspection of the authorized work.

B Estimated Costs of Public Facilities and Services
The estimated costs of infrastructure and facilities proposed to be eligible for funding by CFD No. 117 are set forth in the table below. The costs listed below are estimates only and actual costs may differ from those estimates herein. As previously referenced, it is intended that CFD No. 117 will be authorized to finance all or a portion of the costs of any of the following public facilities:
5 SECTION I II

DESCRIPTION AND ESTIMATED

COSTS OF PUBLIC FACILITIES AND

SERVICES

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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CFD No. 117 (SOUTHRIDGE ) PUBLIC FACILITIES AMOUNT

Acquisition Facilities

$3 ,53 7 ,41 0 [1]
Park, Trail & Landscaping Improvements $3,281,375
Streetlighting Improvements $256,035

Dry Utilities $550,000 [2]

Other Public Facilities
$3 ,893 ,3 40 [3 ]
Circulation Facility Improvements $1,704,675
Storm Drain Improvements $1,023,060
Sewer System Improvements $260,865
Active Transportation Plan
Improvements
$235,875
Police Facility Improvements $140,760
Public Facility Improvements $132,600
Local Arterials Improvements $132,090
Fire Facility Improvements $109,905
Landscape Median Improvements $83,130
Traffic Signal Improvements $40,800
Library Facility Improvements $29,580

Additional Capital Facility Infrastructure Improvements (Estimate) $1,839,000 TOTAL ESTIMATED COSTS $9,81 9,7 50
[1] Represents construction costs estimates provided by the project landowner and their consultants . Subject to review and confirmation.
[2] Represents estimated dry utilities costs provided by the project landowner and their consultants, not to exceed 5% of total indebtedness. Preliminary, subject to review and confirmation . [3 ] Represents e stimated amount of Permit Fees provided by the project landowner and their consultants and subject to review and confirmation .

In addition, CFD No. 117 is expected to finance the annual costs to provide fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services, and maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the City. The Services Special Tax within CFD No. 117 has been established to pay for these public services at approximately $1,080 per detached condominium unit per year. This amount is subject to change based on the actual need that arises as development progresses within CFD No. 117 and shall also be subject to an annual increase as specified in Section C.2 of the Rate and Method of Apportionment (defined herein).
6 SECTION IV

BONDED INDEBTEDNESS AND

INCIDENTAL EXPENSES

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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IV BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES
A Projected Bond Sales
The maximum authorized bonded indebtedness for CFD No. 117 is $14,000,000. It is anticipated that CFD No. 117 will sell one or more series of Bonds, as determined necessary and appropriate by Council, as development progresses within CFD No. 117.

B Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness
Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued, architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two years of issuance of the bonds; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, disclosure counsel and the City's general counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. For the Bonds proposed to be issued by CFD No. 117, the res erve requirement is estimated at approximately seven percent of the principal amount of Bonds, capitalized interest is estimated at approximately five percent of the principal amount of Bonds, and all other incidental bond issuance expenses are estimated at approximately four percent of the principal amount of Bonds. Actual bond issuance expenses, including the amount of Bond funded capitalized interest, may vary from the above estimates.

C Incidental Expenses to be Included in the Annual Levy of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to pay, in whole or part, the costs of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the costs of planning and designing public facilities to be financed, including the costs of environmental evaluations of those public facilities; the costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; any other expenses incidental to the construction, completion, and inspection of the authorized work; and the costs associated with the retirement of existing bonded indebtedness. While the actual costs of administering CFD No. 117 may vary, it is anticipated that the amount of Special Taxes which can be collected senior to the payment of principal and interest on the Bonds will be sufficient to fund at least $20,000 in annual administrative expenses, which shall also be subject to an annual increase of two (2%) annually. 7 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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V RATE AND METHOD OF APPORTIONMENT
All of the property located within CFD No. 117, unless exempted by law or by the Rate and Method of Apportionment (defined below), shall be taxed for the purpose of funding public facilities and services authorized to be financed by CFD No. 117. 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 costs of making authorized facilities or authorized services 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.

The rate and method of apportionment of the special tax (the "Rate and Method of Apportionment") proposed to be levied within CFD No. 117 is described in Exhibit C to the Resolution of Intention. This proposed Rate and Method of Apportionment, also provided herein as Appendix A, provides information sufficient to allow each property owner within CFD No. 117 to estimate the maximum annual Special Tax he or she will be required to pay.

Sections A through D below provide additional information on the Rate and Method of Apportionment.

A Explanation for Special Tax Apportionment
When a community facilities district is formed, a special tax may be levied on each parcel of taxable property within the community facilities district to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by a community facilities district.

This special tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis.

When more than one type of land use is present within a community facilities district, several criteria may be considered when apportioning the special tax. Generally, criteria based on building square footage, acreage, and land use are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the projected product mix and are reflective of the proposed land use types within that community facilities district. Specific special tax levels are assigned to each land use class, with all parcels within a land use class assigned the same special tax rate.

The Act does not require that special taxes be apportioned to individual parcels based on benefit received. However, in order to ensure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 117.

The major assumption inherent in the Special Tax rates set forth in the Rate and Method of 8 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

www.FinanceDTA.com
Apportionment is that the level of benefit received from the proposed public facilities and services is a function of land use and/or product type. This assumption is borne out through an examination of commonly accepted statist ical measures for public facility usage.

For example, in measuring average weekday vehicle t rip-ends, the Institute of Transportation Engineer's Trip Generation manual identifies land use as the primary determinant of trip-end magnitude. Larger residential dwelling units typically generate a greater number of trip-ends than do smaller residential dwelling units, and therefore, will tend to receive more benefit from road grading, roa d landscaping and road improvements.

Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that large homes situated on large lots have more impervious ground cover which will create more drainage flows than that of smaller homes situated on smaller lots.

In addition, sewer treatment costs are based on plant capacity to treat Biochemical Oxygen Demand (“BOD”), Suspended Solids (“SS”), and the flow rate. Other variables for water and sewer requirements include storage and fire flow requirements, as well as the number of bathrooms and fixture units in the home and the population of the household, which tends to vary directly with the size of the dwelling unit.

Furthermore, larger buildings typically generate a greater number of “person hours,” or the number of hours per week that residents associated with a specific type of land use could potentially use park and recreation facilities, or require the need for the proposed public services.

Therefore, Special Tax rates have been established for residential and non-residential land use classes for CFD No. 117. In addition, in order to ensure fairness, the Special Tax rates are uniformly applied within each land use class. The Special Tax for a parcel of Residential Property within CFD No. 117 will vary d irectly based on the amount of Residential Floor Area associated with each such parcel. The Special Tax for Non- Residential Property, if any, in CFD No. 117 will vary directly with the acreage of such parcel.

Based on the types of public facilities and services that are proposed for CFD No. 117 and the factors described above, the Special Taxes assigned to Developed Properties are generally proportionate to the relative benefits received by them, and, accordingly, the Special Taxes in CFD No. 117 can be considered fair and reasonable.

B Maximum Facilities Special Tax
Table 1 within the Rate and Method of Apportionment lists the Assigned Facilities Special Tax that may be levied on each Assessor’s Parcel classified as Developed Property within CFD No. 117 to fund the Special Tax Requirement for Facilities. The Facilities Special Tax for an Assessor’s Parcel of Developed Property cannot exceed the rates shown in such 9 SECTION V

RATE AND METHOD OF

APPORTIONMENT

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

www.FinanceDTA.com
Table 1, except when the Backup Facilities Special Tax is applied as discussed in Section C below. Furthermore, the Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall equal $50,190 per Acre.

C Backup Facilities Special Tax
Pursuant to the Rate and Method of Apportionment, the Maximum Facilities Special Tax for each Assessor’s Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax. The Backup Facilities Special Tax for an Assessor's Parcel of Developed Property shall equal $50,190 per Acre, or such lower amount as determined pursuant to Section C.1. a.(4) of the Rate and Method of Apportionment.

D Maximum Services Special Tax
Table 2 within the Rate and Method of Apportionment lists the Fiscal Year 2026-2027 Maximum Services Special Tax that may be levied against Developed Property within CFD No. 117 to fund the Special Tax Requirement for Services. On each July 1, commencing July 1, 2027, the Maximum Services Special Tax shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. No Services Special Tax shall be levied on Undeveloped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property or Property Owner Association Property in CFD No. 117. Refer to Section C.2 of the Rate and Method of Apportionment for further details on the Services Special Tax.

E Accuracy of Information
In order to establish the Maximum Special Tax rates for CFD No. 117 as set forth in the Rate and Method of Apportionment, DTA has relied on information including, but not limited to, land-use types, building square footage, and net taxable acreage provided by others.

DTA has not independently verified such data and disclaims responsibility for the impact of inaccurate data, if any, on the Rate and Method of Apportionment for CFD No. 117, including the inability to meet the financial obligations within CFD No. 117. 10 SECTION VI

BOUNDARIES OF THE CFD

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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VI BOUNDARIES O F THE CFD
The boundaries of CFD No. 117 include all land on which the Special Taxes may be levied.

A reduced scale map showing the boundaries of CFD N o. 117 is provided herein as Appendix B. A full-scale map is on file with the City Clerk of the City and was recorded on March 17, 2026, in Book 92 of Maps of Assessment and Community Facilities Districts at

County of San Bernardino.
11 SECTION VII

GENERAL TERMS AND

CONDITIONS

City of Fontana April 16, 2026
Community Facilities District No. 117 (Southridge)

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VII GENERAL TERMS AND CONDITIONS
A Substitution of Facilities and Services
The descriptions of the public facilities and services, as set forth herein, are general in their nature. The City will determine the final nature, location, and costs of facilities and services upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu of modifications to the proposed work in order to accomplish the work of improvement, and any such substitution shall not be a change or modification in the proceedings as long as the public facilities and services provide a service substantially similar to that as set forth in this Report.

B Appeals and Interpretations
Pursuant to Section G of the Rate and Method of Apportionment, any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Special Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, a cash refund shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is dissatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

C Prepayment of Special Tax
The Facilities Special Tax applicable to an Assessor’s Parcel in CFD No. 117 may be prepaid according to the prepayment provisions identified in Section H of the Rate and Method of Apportionment. The Services Special Tax may not be prepaid.

APPENDIX A

City of Fontana
Community Facilities District No. 117
(Southridge)

RATE AND METHOD OF

APPORTIONMENT

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 1

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE)

CITY OF FONTANA, COUNTY OF SAN BERNARDINO

STATE OF CALIFONIA

A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels of Taxable Property in City of Fontana Community Facilities District No . 117 (Southridge) ("CFD No. 117") and collected each Fiscal Year commencing in Fiscal Yea r 2026-2027, in an amount determined by the City Council of the City of Fontana, through th e application of the Rate and Method of Apportionment as described below. All of the real property in CFD No. 117, 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. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"Acre" or "Acreage" means the land area expressed in acres of an Asses sor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County map or the land area calculated to the reaso nable satisfaction of the CFD Administrator using the boundaries set forth on such map or plan. For residential dwelling units within a condominium plan, the Acres applicable to each resi dential dwelling unit shall be determined by dividing (i) the Acres of the underlying lot or par cel on which the residential dwelling unit is constructed or to be constructed, by (ii) the total number of residential dwelling units constructed or to be constructed on such lot or parcel. The sq uare 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, Part 1, Division 2 of Title 5 (commencing with Section 53311) of the California Government Code. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 117, including but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecti ng the Special Taxes (whether by the County or otherwise); the costs of remitting the Special Taxe s to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of t he duties required of it under the Indenture; the costs to the City, CFD No. 117 or any designee ther eof of complying with arbitrage rebate requirements with respect to the Special Tax and CFD No. 117 Bonds; the costs to the City, CFD No. 117 or any designee thereof of complying with disclosure requirements of the City, CFD No. 117 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax dis closure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 117, or any designee thereof related to the reduction of the Assigned Facilities Special Tax and Backup Facilities Special Tax in accordance with Section C.1 herein; the costs of the City, CFD No. 117 or any designee thereof related to an appeal of the Special Tax; and the Ci ty’s annual administration fees and third party expenses related to CFD No. 117 Bonds. Administrat ive Expenses shall also include amounts estimated or advanced by the City or CFD No. 117 fo r any other administrative purposes of CFD

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 2 No. 117, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Assessor" means the Assessor of the County.
"Assessor's Parcel" means a lot or parcel to which an Assessor’s parce l number is assigned as determined from an Assessor’s Parcel Map or the applicable assessment roll. "Assessor's Parcel Map" means an official map of the Assessor designating parcels by Assessor’s Parcel number.
"Assigned Facilities Special Tax" means the applicable Facilities Special Tax for (i) Residential Property as determined in accordance with Section C .1.a.(2) herein, and (ii) Non-Residential Property as determined in accordance with Section C.1.a.(3) herein. "Authorized Facilities" means those facilities eligible to be funded by CFD No. 117. "Authorized Services" means those services eligible to be funded by CFD No. 117 in accordance with the Act, namely, fire protection and suppression services, maintenance and lighting of parks, parkways, streets, roads and open space, flood and storm protection services and maintenance and operation of any real property or other tangible pr operty with an estimated useful life of five or more years that is owned by the City.
"Backup Facilities Special Tax" means the Facilities Special Tax applicable to eac h Assessor's Parcel of Developed Property, as determined in accordance with Section C.1.a.(4) herein. "Buildout" means, for CFD No. 117, that all expected building permits for residential dwelling units and/or non-residential development to be constructed within CFD No. 117 have been issued, as determined by the CFD Administrator.
"CFD Administrator" means an official of the City, or designee thereof , responsible for determining the Special Tax Requirement for Facilit ies and the Special Tax Requirement for Services, providing for the levy and collection of the Special Taxes, and performing other duties as set forth herein.
"CFD No. 117" means City of Fontana Community Facilities District No. 117 (Southridge). "CFD No. 117 Bonds" means any bonds or other debt (as defined in Section 53317(d) of the Act), whether in one or more series, issued by CFD No. 11 7 and secured by the Facilities Special Tax levy on property within the boundaries of CFD No. 117 under the Act. "City" means the City of Fontana, California.
"Contractual Impositions" means (a) a voluntary contractual assessment established and levied on an Assessor’s Parcel pursuant to Chapter 29 of P art 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10 et seq. ), as amended from time to time, (b) a special tax established and levied on an Assessor’s Parcel pursuant to Section 53328.1 of the California Government Code and related provisions of the Act, as amended from time to time, and (c) any other fee, charge, tax or assessment establ ished and levied on an individual Assessor’s Parcel pursuant to a contractual agreement or other voluntary consent by the owner thereof. "Council" means the City Council of the City acting as the legislative body of CFD No. 117. "County" means the County of San Bernardino.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 3 "Developed Property" means, for each Fiscal Year, (i) with respect to the Facilities Special Tax, all Taxable Property, exclusive of Taxable Public P roperty and Taxable Property Owner Association Property, for which a building permit for new construction, other than the construction of a garage, parking lot, or parking structure, was issued after January 1, 2026 and on or before May 1 of the Fiscal Year preceding the Fiscal Year for which the Facilities Special Taxes are being levied, and (ii) with respect to the Services Special Tax, all Taxable Property, exclusive of Taxable Public Property and Taxable Property Owner Associat ion Property, (a) for which the Final Residential Subdivision was recorded prior to the Fiscal Year for which the Services Special Taxes are being levied, or (b) for which a building permit has been issued with respect to Non-Residential Property on or before May 1 of the Fiscal Year prec eding the Fiscal Year for which the Services Special Taxes are being levied.
"Facilities Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within CFD No. 117 to fund the Special Tax Requirement for Facilities, as set forth in Section C.1 herein.
"Final Residential Subdivision" means a Final Subdivision that creates individual lots for which building permits may be issued for residential dwel ling units without further subdivision of such property.
"Final Subdivision" means (i) a subdivision of property by recordation of a final map, parcel map, or lot line adjustment approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq. ) that creates individual lots or parcels for which building permits may be issued, or (ii) for condominiums, a final map approved by the City and a condominium plan recorded pursuant to California Ci vil Code Section 4285 that creates an individual lot(s) for which a building permit(s) ma y be issued without further subdivision. The term "Final Subdivision" shall not include any Asse ssor’s Parcel Map or subdivision map or portion thereof that does not create individual lot s for which a building permit may be issued, including Assessor’s Parcels that are designated as remainder parcels. Notwithstanding the above, a condominium plan for which one or more building p ermits have been issued, but no individual lots have been created for such building permits, s hall be considered a Final Subdivision, and the portion of the condominium plan for which build ing permits have been issued shall be defined as Developed Property.
"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 CFD No. 117 Bonds are issued, as modified, amended and/or supplemented from time to time.
"Land Use Class" means any of the classes listed in Table 1 or Table 2 herein. "Lower Income Households Welfare Exemption Property " means, for each Fiscal Year, an Assessor’s Parcel within the boundaries of CFD No. 117 that is subject to a welfare exemption under subdivision (g) of Section 214 of the Califor nia Revenue and Taxation Code (or any successor statute), as indicated in the County’s as sessment roll finalized as of the last preceding January 1.
"Maximum Facilities Special Tax" means the maximum Facilities Special Tax, determin ed in accordance with Section C.1 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 4 "Maximum Services Special Tax" means the maximum Services Special Tax, determined in accordance with Section C.2 herein, that can be levied in any Fiscal Year on any Assessor’s Parcel of Developed Property.
"Minimum Sale Price" means the minimum price at which any parcel in a given Land Use Class has sold or is expected to be sold in a normal mark eting environment and shall not include prices for such parcels that are sold at a discount to exp ected sales prices for the purpose of stimulating the initial sales activity with respect to such Land Use Class. "Non-Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City perm itting the construction of one or more non- residential structures or facilities.
"Outstanding Bonds" means all CFD No. 117 Bonds which are outstanding under the Indenture. "Price Point Consultant" means any consultant or firm of such consultants selected by CFD No. 117 that (a) has substantial experience in performi ng price point studies for residential dwelling units within community facilities districts or othe rwise estimating or confirming pricing for residential dwelling units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relate s to the pricing of residential dwelling units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 117 or the City, (d) does not have any substantial inte rest, direct or indirect, with or in (i) CFD No. 117, (ii) the City, (iii) any owner of real property in CFD No. 117, or (iv) any real property in CFD No. 117, and (e) is not connected with CFD No. 117 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 117 or the City. "Price Point Study" means a price point study or a letter updating a p revious price point study prepared by the Price Point Consultant pursuant to Section C herein. "Property Owner Association Property" means, for each Fiscal Year, (i) any property with in the boundaries of CFD No. 117 for which the owner o f record, as determined from the County’s assessment roll for the Fiscal Year in which the Special Tax is being levied, is a property owner’s association, including any master or sub-associatio n, or (ii) any property located in a Final Subdivision that was recorded as of the January 1 p receding the Fiscal Year in which the Special Tax is being levied and which, as determined from such Final Subdivision, is or will be open space, a common area recreation facility, or a private street. Notwithstanding the foregoing, any property previously classified as Developed Property and sub sequently owned in fee or by easement, or dedicated to, a property owner association, includi ng any master or sub-association, shall remain classified as Developed Property.
"Proportionately" means that the ratio of the actual Facilities Speci al Tax levy to the Assigned Facilities Special Tax is equal for all Assessor’s Parcels of Developed Property, and that the ratio of the actual Services Special Tax levy to the Maxi mum Services Special Tax is equal for all Assessor’s Parcels of Developed Property. For Unde veloped Property, "Proportionately" means that the ratio of the actual Facilities Special Tax levy per Acre to the Maximum Facilities Special Tax per Acre is equal for all Assessor’s Parcels of Undeveloped Property. The term "Proportionately" shall similarly be applied to oth er categories of Taxable Property as listed in Section D herein.
"Public Property" means, for each Fiscal Year, any property within t he boundaries of CFD No. 117 that is (i) owned by, irrevocably offered or dedicated to the federal government, the State, the

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 5 County, the City, or any local government or other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by a public utility easement making impractical its use for any purpose other than that set forth in the easement. "Rate and Method of Apportionment" means this Rate and Method of Apportionment for CFD No. 117.
"Residential Floor Area" means all of the square footage of living area wit hin the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area for an Assessor’s Parcel shall be as set forth in the building permit(s) issued for such Assessor’s Parcel and/or as set forth in the appropriate records kept by the Building and Safety Department of the City, or other applicable City department, as determined by the CFD Administrator. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued by the City permitting the construction thereon of one or more residential dwelling units.
"Services Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Developed Property within CFD No. 117 to fund the Special Tax Requirement for Services, as set forth in Section C.2 herein.
"Special Tax" or "Special Taxes" means the Facilities Special Tax and/or Services Special Tax, as applicable.
"Special Tax Requirement for Facilities" means, for any Fiscal Year, that amount required, after taking into account available amounts held in the f unds and accounts under the Indenture, for the following items: (i) debt service on all Outstandin g Bonds due in the calendar year commencing in such Fiscal Year; (ii) periodic costs with respe ct to the CFD No. 117 Bonds, including but not limited to, costs of credit enhancement and federal rebate payments due in the calendar year commencing in such Fiscal Year; (iii) pay all or a portion of Administrative Expenses; (iv) any amounts required to establish or replenish any reserve funds for all Outstanding Bonds; (v) without duplicating any amounts described in clause (iv), a bove, reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for the Facilities Special Tax in the previous Fiscal Year, as said levy for delinquencies shall be limited by the Act; and (vi) pay directly for the acquisition or construction of Authorized Facilitie s, provided that the inclusion of such amount does not increase the Facilities Special Tax levy beyond the first step in Section D.1 herein. "Special Tax Requirement for Services" means that amount required in any Fiscal Year for CFD No. 117 to (i) pay directly for the Authorized Serv ices; (ii) pay Administrative Expenses not funded through the Special Tax Requirement for Faci lities as determined by the CFD Administrator; (iii) pay for reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for the Services Special Tax levy in the previous Fiscal Year; less (iv) a credit for funds available to reduce the annual Services S pecial Tax levy, as determined by the CFD Administrator, so long as the amount required is not less than zero. "State" means the State of California.
"Taxable Property" means all of the Assessor's Parcels within the bou ndaries of CFD No. 117 which are not exempt from the Special Tax pursuant to applicable law or Section E herein.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 6 "Taxable Property Owner Association Property" means all Assessor’s Parcels of Property Owner Association Property that are not exempt pursuant to Section E herein. "Taxable Public Property" means all Assessor’s Parcels of Public Property th at are not exempt pursuant to Section E herein.
"Total Tax Burden" means, for a parcel of residential property within a Land Use Class, for the Fiscal Year in which Total Tax Burden is being calc ulated, the sum of (a) the Assigned Facilities Special Tax for such Fiscal Year, plus (b) the Maximum Services Special Tax for such Fiscal Year, plus (c) the ad valorem property taxes, special assessments, special taxes for any overlapping community facilities districts, and any other governmental fees, charges (other than fees or charges for services such as sewer and trash), taxes and assessments (which, for purposes of clarity, do not include Contractual Impositions) collected by the County on ad valorem tax bills and that the CFD Administrator estimates would be levied or imposed on such residential property in such Fiscal Year if the residential dwelling unit thereon or th erein had been completed and sold, and was subject to such fees, charges, taxes and assessments in such Fiscal Year. "Trustee" means the trustee or fiscal agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Public Property or Taxable Property Owner Association Property.

Please refer to additional definitions in Section H herein relating to the Prepayment of Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year, commencing with Fiscal Year 2026-2027, all Taxable Property within CFD No. 117 shall be classified as Developed Property, Undeveloped Property, Taxable Public Property or Taxable Property Owner Association Property, and shall be subject to Special Taxes in accordance with this Rate and Method of Apportionment determined pursuant to Sections C and D herein.

C. MAXIMUM SPECIAL TAX RATE

1. Facilities Special Tax
At least 30 days prior to the issuance of the first series of CFD No. 117 Bonds, the Assigned Facilities Special Tax for Residential Property (se t forth in Table 1 below) shall be analyzed in accordance with and subject to the conditions set f orth in this Section C. At such time, the CFD Administrator shall request the Price Point Consultant to prepare a Price Point Study setting forth the Minimum Sale Price of residential property with in each Land Use Class. If based upon such Price Point Study the CFD Administrator calculates that the Total Tax Burden applicable to one or more Land Use Classes of residential property constructed or to be constructed within CFD No. 117 shall exceed 1.95% of the Minimum Sale Price of such residential property constructed or to be constructed within CFD No. 117, the CFD Administ rator shall reduce the Assigned Facilities Special Tax to the extent necessary to cause the To tal Tax Burden that shall apply to residential property within such Land Use Class(es) to not exceed 1.95% of the Minimum Sale Price of such residential property. Each Assigned Facilities Spe cial Tax reduction for a Land Use Class shall be calculated separately, and it shall not be requi red that such reduction be proportionate among Land Use Classes. In connection with any reduction in the Assigned Facilities Special Tax for Residential Property, the CFD Administrator shall also reduce the Assigned Facilities Special Tax for Non-Residential in accordance with Section C.1.a.(3) herein, and the Backup Facilities Special Tax in accordance with Section C.1.a.(4) herein. U pon determining the reductions, if any, in the

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 7 Assigned Facilities Special Tax and Backup Faciliti es Special Tax required pursuant to this Section C, the CFD Administrator shall complete the Certificate to Amend Facilities Special Tax substantially in the form attached hereto as Exhibi t A (the “Certificate to Amend”) and shall execute such completed Certificate to Amend and shall deliver such Certificate to Amend to CFD No. 117. Upon receipt thereof, if in satisfactory form, CFD No. 117 shall execute such Certificate to Amend. The reduced Assigned Facilities Special T ax and Backup Facilities Special Tax specified in such Certificate to Amend shall become effective upon the execution of such Certificate to Amend by CFD No. 117. The Assigned Facilities Special Tax and Backup Facilities Special Tax reductions permitted pursuant to this Section C shall be reflected in an amended notice of Special Tax lien which CFD No. 117 shall cause to be recorded with the San Bernardino County Recorder as soon as practicable after execution of the Certificate to Amend by CFD No. 117. If based upon such Price Point Study the CFD Administr ator calculates that the Total Tax Burden applicable to each Land Use Class of residential pr operty constructed or to be constructed within CFD No. 117 does not exceed 1.95% of the Minimum Sa le Price of each such Land Use Class of residential property constructed or to be construct ed within CFD No. 117, then there shall be no reduction in the Assigned Facilities Special Tax, n or shall there be a reduction in the Backup Facilities Special Tax.
a. Developed Property
(1). Maximum Facilities Special Tax
The Maximum Facilities Special Tax for each Assesso r's Parcel classified as Developed Property shall be the greater of (i) the amount der ived by application of the Assigned Facilities Special Tax or (ii) the amount derived b y application of the Backup Facilities Special Tax.
(2). Assigned Facilities Special Tax for Residenti al Property Residential Property shall be assigned to Land Use Classes 1 through 5 as listed in Table 1 below based on the Residential Floor Area associated with each such residential dwelling unit. The Assigned Facilities Special Tax that sha ll be levied in any Fiscal Year for each Land Use Class is shown below in Table 1 and shall not be subject to escalation.

Table 1
Assigned Facilities Special Tax for Residential Property City of Fontana CFD No. 117 (Southridge)

Land
Use
Class Description
Residential Floor
Area (square feet)
Assigned
Facilities
Special Tax
1 Residential Property 2,175 or greater $3,706 per unit 2 Residential Property 2,025 to less than 2,175 $3,435 per unit 3 Residential Property 1,875 to less than 2,025 $3,382 per unit 4 Residential Property 1,725 to less than 1,875 $3,184 per unit 5 Residential Property Less than 1,725 $3,107 per unit
(3). Assigned Facilities Special Tax for Non-Resid ential Property The Assigned Facilities Special Tax for an Assessor’s Parcel of Non-Residential Property shall equal the lesser of (a) $42,665 per Acre, or (b) in connection with any reduction in

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 8 the Assigned Facilities Special Tax as set forth in Section C.1 herein, the amount per Acre calculated pursuant to the formula below:

RAFST = AFST  ATP
These terms have the following meaning:

RAFST = the reduced Assigned Facilities Special Tax for Non-Residential Property AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 117 based on the reduced Assigned Facilities Special Ta xes for Developed Property permitted pursuant to Section C.1 herein which coul d be levied on all expected development assuming Buildout of CFD No. 117.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout) within CFD No. 117 (after exclu ding Public Property and Property Owner Association Property as set forth in Section E.1 herein). (4). Backup Facilities Special Tax
The Backup Facilities Special Tax for an Assessor’s Parcel of Developed Property shall equal the lesser of (a) $50,190 per Acre, or (b) in connection with any reduction in the Assigned Facilities Special Tax as set forth in Sec tion C.1 herein, the amount per Acre calculated pursuant to the formula below:

BFST = AFST  ATP
These terms have the following meaning:

BFST = the reduced Backup Facilities Special Tax
AFST = The total estimated Assigned Facilities Special Tax levy for CFD No. 117 based on the reduced Assigned Facilities Special Ta xes for Developed Property permitted pursuant to Section C.1 herein which coul d be levied on all expected development assuming Buildout of CFD No. 117.

ATP = The sum of the Acreage of all Taxable Property within a Final Subdivision (assuming Buildout) within CFD No. 117 (after exclu ding Public Property and Property Owner Association Property as set forth in Section E.1 herein) multiplied by 85%.

Furthermore, all Assessors’ Parcels within CFD No. 117 shall be relieved simultaneously and permanently from the obligation to pay and disclose the Backup Facilities Special Tax if the CFD Administrator calculates that (i) the an nual debt service required for the Outstanding Bonds, when compared to the Assigned Fa cilities Special Tax that shall be levied against all Assessors’ Parcels of Developed Property in CFD No. 117 results in 110% debt service coverage (i.e., the Assigned Faci lities Special Tax that shall be levied against all Developed Property in CFD No. 117 in ea ch remaining Fiscal Year based on the then existing development is at least equal to the sum of (a) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (b) Administrative Expenses), and (ii) all authorized CFD No. 117 Bonds have already been issued or the Council has covenanted that it s hall not issue any additional CFD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax in CFD No. 117.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 9 (5). Multiple Land Uses
In some instances an Assessor’s Parcel may contain both Developed Property and Undeveloped Property. In such cases, the Acreage o f the Assessor’s Parcel shall be allocated between Developed Property and Undeveloped Property based on the portion of the Assessor’s Parcel for which building permits ha d been issued prior to May 1 of the prior Fiscal Year and the portion of the Assessor’s Parcel for which building permits had not been issued prior to May 1 of the prior Fiscal Year.

Furthermore, Developed Property may contain more th an one Land Use Class. In such cases, the Acreage that is considered Developed Pro perty shall be allocated between Residential Property and Non-Residential Property b ased on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Facilities Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Facilities Special Tax that can be levied on each type of property located on that Assessor’s Parcel.

The CFD Administrator’s allocation to each type of property shall be final. b. Undeveloped Property, Taxable Public Property, a nd Taxable Property Owner Association Property
The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Public Property, and Taxable Property Owner Association Property shall be $50,190 per Acre and shall not be subject to escalation and shall therefore remain the same in every Fiscal Year.

2. Services Special Tax
For purposes of the Services Special Tax, an Assess or(s) Parcel of Developed Property within a Final Residential Subdivision shall be assigned to Land Use Class 1, as identified in Table 2 below.

Non-Residential Property shall be assigned to Land Use Class 2. Furthermore, the Services Special Tax levied against each Assessor’s Parcel w ithin a Final Residential Subdivision shall be based on the number of residential dwelling units f or which building permits have been issued or are expected to be issued for such Assessor’s Parce l, as determined by the CFD Administrator based on such Final Residential Subdivision or other available documents. a. Maximum Services Special Tax
The Fiscal Year 2026-2027 Maximum Services Special Tax for each Land Use Class of Developed Property is shown below in Table 2.

Table 2
Maximum Services Special Tax for Developed Property
City of Fontana CFD No. 117 (Southridge)

Land Use
Class

Description

Fiscal Year 2026-2027
Maximum Services Special Tax
1 Final Residential Subdivision $1,080.45 per unit
2 Non-Residential Property $13,765.00 per Acre
b. Increase in the Maximum Services Special Tax

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 10 The Maximum Services Special Tax in Table 2 above s hall be applicable for Fiscal Year 2026-2027, and shall increase thereafter, commencing on July 1, 2027, and on each July 1 thereafter by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.
c. Multiple Land Uses
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Class. In such cases, the Acreage of Deve loped Property shall be allocated between Residential Property and Non-Residential Pr operty based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Maximum Services Special Tax that can be levied on such Assessor’s Parcel shall be the sum of the Maximum Services Special Tax that can be levied on each type of property located on that Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

1. Facilities Special Tax
Commencing with Fiscal Year 2026-2027, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requirement for Facilities and shall provide for the levy of the Facilities Special Tax each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied on each Assessor’s Parcel of Developed Property in an amount equal to 100% of the applicable Assigned Facilities Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Facilities Special Tax for Undeveloped Property;
Third: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first two steps have been completed, then the l evy of the Facilities Special Tax on each Assessor's Parcel of Developed Property whose Maxim um Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the Assigned Facilities Special Tax up to the Maximum Facilities Special Tax for each such Assessor's Parcel;
Fourth: If additional monies are needed to satisfy the Special Tax Requirement for Facilities after the first three steps have been completed, then the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Taxable Public Property and Taxable Property Owner Association Property at up to 100% of the Maximum F acilities Special Tax for Taxable Public Property and Taxable Property Owner Association Pro perty, as needed to satisfy the Special Tax Requirement for Facilities.

Notwithstanding the above, the CFD Administrator sh all, in any Fiscal Year, calculate a levy Proportionately less than 100% of the Assigned Faci lities Special Tax in step one (above), when (i) the CFD Administrator is no longer required to provide for the levy of the Facilities Special Tax pursuant to steps two through four above in ord er to meet the Special Tax Requirement for Facilities; and (ii) all authorized CFD No. 117 Bonds have already been issued or the Council has covenanted that it shall not issue any additional C FD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 11 Further notwithstanding the above, under no circumstances shall the Facilities Special Tax levied in any Fiscal Year against any Assessor’s Parcel of Residential Property for which an occupancy permit for private residential use has been issued (in accordance with Section 53321(d)(3) of the California Government Code), be increased as a cons equence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 117 by more than ten percent above the amount that would have been levied in that Fiscal Y ear had there never been any such delinquencies or defaults. To the extent that the levy of the Facilities Special Tax on Residential Property is limited by the provision in the previous sentence, the levy of the Facilities Special Tax on each Assessor’s Parcel of Non-Residential Proper ty shall continue in equal percentages up to 100% of the applicable Maximum Facilities Special Tax.

2. Services Special Tax
Commencing with Fiscal Year 2026-2027, and for each following Fiscal Year, the CFD Administrator shall determine the Special Tax Requi rement for Services and shall levy the Services Special Tax Proportionately on each Assess or’s Parcel of Developed Property at up to 100% of the applicable Maximum Services Special Tax as needed to satisfy the Special Tax Requirement for Services;
E. EXEMPTIONS

1. Facilities Special Tax
No Facilities Special Tax shall be levied on up to 12.22 Acres of Public Property and/or Property Owner Association Property in CFD No. 117. Tax-exe mpt status shall be assigned by the CFD Administrator in the chronological order in which p roperty in CFD No. 117 becomes Public Property or Property Owner Association Property. H owever, should an Assessor’s Parcel no longer be classified as Public Property or Property Owner Association Property, it shall, from that point forward, be subject to the Facilities Special Tax.

Notwithstanding the above, an Assessor’s Parcel in CFD No. 117 that is transferred to a public agency or property owner’s association prior to the issuance of the first series of CFD No. 117 Bonds that causes the Acreage of Public Property an d Property Owner Association Property to exceed the 12.22 Acreage limit that can be designat ed by the CFD Administrator under this Section E.1 shall also be exempted from paying the Facilities Special Tax.

Public Property or Property Owner Association Prope rty that is not exempt from the Facilities Special Tax under this Section E.1 shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fourt h step in Section D herein, at up to 100% of the applicable Maximum Facilities Special Tax for Taxab le Public Property and Taxable Property Owner Association Property.

In addition, no Facilities Special Tax shall be lev ied on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Facilities Special Tax, then the Facilities Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

2. Services Special Tax

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 12 No Services Special Tax shall be levied on Undevelo ped Property, Taxable Public Property, Taxable Property Owner Association Property, Public Property, or Property Owner Association Property.

In addition, no Services Special Tax shall be levie d on Lower Income Households Welfare Exemption Property, provided that if, in any Fiscal Year, applicable law does not require that an Assessor’s Parcel that is Lower Income Households Welfare Exemption Property be exempt from the Services Special Tax, then the Services Special Tax shall be levied on such Assessor’s Parcel in accordance with this Rate and Method of Apportionment as if such Assessor’s Parcel were not classified as Lower Income Households Welfare Exemption Property.

F. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 117 may directly bill the Special Tax, and/or may collect Special Taxes at a different time or in a different manner if necessary to meet financial obligations, and, to the extent of the Facilities S pecial Tax, may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels.

G. APPEALS AND INTERPRETATIONS
Any landowner or resident who feels that the amount of the Special Tax levied on his/her Assessor’s Parcel is in error may submit a written appeal to the CFD Administrator, provided that the appellant is current in his/her payment of Spec ial Taxes. During the pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the a ppellant of its determination. If the CFD Administrator agrees with the appellant, a cash ref und shall not be made (except for the last year of levy), but the amount of the Special Tax levied shall be appropriately modified through an adjustment to the Special Tax levy in the following Fiscal Year. If the CFD Administrator disagrees with the appellant and the appellant is d issatisfied with the determination, the appellant then has 30 days in which to appeal to the Council by filing a written notice of appeal with the City Clerk, provided that the appellant is current in his/her payment of Special Taxes. This second appeal must specify the reasons for its disagreement with the CFD Administrator's determination.

The CFD Administrator shall interpret this Rate and Method of Apportionment for purposes of clarifying any ambiguity and make determinations re lative to the annual administration of the Special Tax and any landowner or resident appeals. Any decision of the CFD Administrator shall be subject to appeal to the Council whose decision shall be final and binding as to all persons.

H. PREPAYMENT OF FACILITIES SPECIAL TAX
Under this Rate and Method of Apportionment, an Ass essor’s Parcel within CFD No. 117 is permitted to prepay the Facilities Special Tax. The obligation of the Assessor’s Parcel to pay the Facilities Special Tax may be fully prepaid and per manently satisfied or partially prepaid as described herein, provided that a prepayment may be made only for Assessor’s Parcels of Developed Property, or for an Assessor’s Parcel of Undeveloped Property for which a building permit has been issued after January 1, 2026, and o nly if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. The

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 13 CFD Administrator may charge such owner a reasonabl e fee for providing this service. If there are Outstanding Bonds, prepayment must be made not less than 30 days prior to a date that notice of redemption of CFD No. 117 Bonds from the proceeds of such prepayment may be given by the Trustee pursuant to the Indenture that is specified in the report of the Facilities Special Tax Prepayment Amount (defined below).

The following additional definitions apply to this Section H:
"CFD Public Facilities Costs" means either $9,463,900 in 2026 dollars, which shall increase by the Construction Inflation Index on July 1, 2027, a nd on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Admini strator as sufficient to provide funding for the Authorized Facilities under the authorized bond ing program for CFD No. 117, or (ii) shall be determined by the Council concurrently with a covenant that it shall not issue any more CFD No. 117 Bonds (except refunding bonds) to be supported by the Facilities Special Tax levy under this Rate and Method of Apportionment.
"Construction Inflation Index" means the annual percentage change in the Engineer ing News Record Building Cost Index for the City of Los Ange les, measured as of the month of December in the calendar year which ends in the previous Fis cal Year. In the event this index ceases to be published, the Construction Inflation Index shall b e another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News Record Building Cost Index for the City of Los Angeles.
"Future Facilities Costs" means the CFD Public Facilities Costs minus (i) co sts of Authorized Facilities previously paid from the Improvement Fun d, (ii) moneys currently on deposit in the Improvement Fund available to pay costs of Authoriz ed Facilities, and (iii) the amount the CFD Administrator reasonably expects to derive from the reinvestment of these funds. "Improvement Fund" means a fund or account specifically identified in the Indenture (or prior to the issuance of the first series of CFD No. 117 Bonds a fund or account held by the City) to hold funds which are currently available for expenditure to acquire or construct Authorized Facilities. "Previously Issued Bonds" means, for any Fiscal Year, all Outstanding Bonds that are outstanding under the Indenture after the first interest and/or principal payment date following the current Fiscal Year.

1. Prepayment in Full
The Facilities Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Facilities Special Tax Prepayment Amo unt As of the proposed date of prepayment, the Faciliti es Special Tax Prepayment Amount shall be calculated according to the following paragraphs:

1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 14

2. For Assessor’s Parcels of Developed Property, compu te the Assigned Facilities Special Tax and Backup Facilities Special Tax for the Asses sor’s Parcel to be prepaid. For Assessor’s Parcels of Undeveloped Property for whic h a building permit has been issued after January 1, 2026, compute the Assigned Facilit ies Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for such Assessor’s Parcel.

3. (a) Divide the Assigned Facilities Special Tax comp uted pursuant to paragraph 2 by the total estimated Assigned Facilities Special Tax lev y for CFD No. 117 based on the Assigned Facilities Special Taxes for Developed Pro perty which could be levied on all expected development assuming Buildout of CFD No. 1 17, excluding any Assessor’s Parcels which have been prepaid, and
(b) Divide the Backup Facilities Special Tax computed pursuant to paragraph 2 by the total estimated Backup Facilities Special Taxes at Buildo ut for the entire CFD No. 117, excluding any Assessor’s Parcels which have been prepaid.

4. Multiply the larger quotient computed pursuant to paragraph 3(a) or 3(b) by the Previously Issued Bonds to compute the amount of Previously Is sued Bonds to be redeemed (the "Bond Redemption Amount").

5. Multiply the Bond Redemption Amount computed pursua nt to paragraph 4 by the applicable redemption premium (e.g., the redemption price minus 100%) set forth in the Indenture, if any, on the Previously Issued Bonds t o be redeemed (the "Redemption Premium").

6. Compute the current Future Facilities Costs.

7. Multiply the larger quotient computed pursuant to p aragraph 3(a) or 3(b) by the amount determined pursuant to paragraph 6 to compute the amount of Future Facilities Costs to be prepaid (the "Future Facilities Amount").

8. Compute the amount needed to pay interest on the Bo nd Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the redemption date for the Previously Issued Bonds spe cified in the report of the Facilities Special Tax Prepayment Amount.

9. Determine the Facilities Special Tax levied on the Assessor’s Parcel in the current Fiscal Year which has not yet been paid.

10. Compute the minimum amount the CFD Administrator re asonably expects to derive from the reinvestment of the Facilities Special Tax Prep ayment Amount, less any interest earnings attributed to the Future Facilities Amount, and less any interest earnings attributed to the Administrative Fees and Expenses (defined below) from the date of prepayment until the redemption date for the Previously Issued Bonds to be redeemed with the prepayment.

11. Add the amounts computed pursuant to paragraphs 8 a nd 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount").

12. The administrative fees and expenses of CFD No. 117 are as calculated by the CFD Administrator and include the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming CFD No. 117 Bonds, and the costs of

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 15 recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses").

13. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as d efined in the Indenture), if any, associated with the redemption of Previously Issued Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new re serve requirement (as defined in the Indenture) in effect after the redemption of Previo usly Issued Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. No Reserve Fund Credit shall be granted if the amount then on deposit in the reserve fund for the Previou sly Issued Bonds is below 100% of the reserve requirement (as defined in the Indenture).

14. If any capitalized interest for the Previously Issued Bonds will not have been expended as of the date immediately following the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the larger quotient computed pursuant to paragraph 3(a) or 3(b ) by the expected balance in the capitalized interest fund or account under the Inde nture after such first interest and/or principal payment date (the "Capitalized Interest Credit").

15. The Facilities Special Tax prepayment is equal to t he sum of the amounts computed pursuant to paragraphs 4, 5, 7, 11 and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Facilities Special Tax Prepayment Amount").

2. Prepayment in Part
The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = [(PE – A) x F] + A
These terms have the following meaning:

PP = the partial prepayment.

PE = the Facilities Special Tax Prepayment Amount calculated according to Section H.1.

F = the percentage, expressed as a decimal, by which the owner of the Assessor’s Parcel is partially prepaying the Facilities Special Tax.

A = the Administrative Fees and Expenses calculated according to Section H.1.

3. General Provisions Applicable to the Prepayment of Facilities Special Tax (a). Use of the Facilities Special Tax Prepayment Amount The Facilities Special Tax Prepayment Amount, less the Administrative Fees and Expenses calculated according to Section H.1 which shall be retained by CFD No. 117, and less the Future Facilities Amount calculated according to Section H.1 which shall be deposited into the Improvement Fund, shall be deposited into speci fic funds established under the Indenture, to fully or partially redeem as many Out standing Bonds as possible, and, if amounts are less than $5,000, to make debt service payments on the Outstanding Bonds. (b). Full Prepayment of Facilities Special Tax
Upon confirmation of the payment of the current Fiscal Year’s entire Facilities Special Tax obligation, the CFD Administrator shall remove the current Fiscal Year’s Facilities Special

City of Fontana January 30, 2026
Community Facilities District No. 117 (Southridge) Page 16 Tax levy for such Assessor’s Parcel from the County tax rolls. With respect to any Assessor’s Parcel that is prepaid in accordance wit h Section H.1, the CFD Administrator shall cause a suitable notice to be recorded in com pliance with the Act, to indicate the prepayment of the Facilities Special Tax and the re lease of the Facilities Special Tax lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay the Facilities Special Tax shall cease.
(c). Partial Prepayment of Facilities Special Tax
With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute or cause to be distributed the funds remitted to it according to Section H.3.(a) and (ii) indicate in the records of CFD No. 117 that there has been a partial prepayment of the Facilities Special Tax and that a portion of th e Facilities Special Tax with respect to such Assessor’s parcel, equal to the outstanding pe rcentage (1.00 – F) of the remaining Maximum Facilities Special Tax, shall continue to b e levied on such Assessor’s Parcel pursuant to Section D herein.
(d). Debt Service Coverage
Notwithstanding the foregoing, no prepayment of the Facilities Special Tax shall be allowed unless the amount of Facilities Special Tax that may be levied on Taxable Property (assuming Buildout) within CFD No. 117 in each future Fiscal Year (after excluding Public Property and Property Owner Association Property as set forth in Section E.1 herein), after the proposed prepayment, is at least equal to the s um of (i) 1.10 times the debt service necessary to support the remaining Outstanding Bonds in each corresponding Fiscal Year, and (ii) Administrative Expenses.

I. TERM OF SPECIAL TAX
The Facilities Special Tax shall be levied for a pe riod not to exceed fifty years commencing with Fiscal Year 2026-2027. The Services Special Tax shall be levied in perpetuity to fund the Special Tax Requirement for Services.

EXHIBIT A

CERTIFICATE TO AMEND FACILITIES SPECIAL TAX

CFD NO. 117 CERTIFICATE

1. Pursuant to Section C.1 of the Rate and Method o f Apportionment (the "Rate and Method") for City of Fontana Community Facilities District No. 117 (Southridge) ("CFD No. 117"), the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property within CFD No. 117 has been reduced as described herein.

(a) The information in Table 1 of the Rate and Method r elating to the Assigned Facilities Special Tax for Residential Property within CFD No. 117 shall be modified as follows:

Land
Use
Class Description
Residential Floor
Area (square feet)
Original
Assigned
Facilities
Special Tax
Reduced

Assigned
Facilities
Special Tax
1 Residential Property 2,175 or greater $3,706 per unit $[_____] per unit 2 Residential Property 2,025 to less than 2,175 $3, 435 per unit $[_____] per unit 3 Residential Property 1,875 to less than 2,025 $3,382 per unit $[_____] per unit 4 Residential Property 1,725 to less than 1,875 $3,184 per unit $[_____] per unit 5 Residential Property Less than 1,725 $3,107 per unit $[_____] per unit

(b) The Assigned Facilities Special Tax for Non-Residential Property, as stated in Section C.1.a.(3) of the Rate and Method, shall be reduced from $42,665 per Acre to $[_____] per Acre.

(c) The Backup Facilities Special Tax for Developed Pro perty, as stated in Section C.1.a.(4) of the Rate and Method, shall be reduced from $50,190 per Acre to $[_____] per Acre.

2. The Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property may only be reduced prior to the first issuance of CFD No. 117 Bonds.

3. Upon execution of the certificate by CFD No. 117, CFD No. 117 shall cause an amended notice of Special Tax lien for CFD No. 117 to be recorded reflecting the reductions set forth herein.

All capitalized terms used herein shall have the meanings set forth in the Rate and Method.

By:___________________________ Date:______________ ________ CFD Administrator

By execution hereof, the undersigned acknowledge, o n behalf of CFD No. 117, receipt of this certificate and modification of the Rate and Method as set forth in this certificate.

CITY OF FONTANA COMMUNITY FACILITIES DISTRICT NO. 117 (SOUTHRIDGE)

By:___________________________ Date:______________ _______

APPENDIX B

City of Fontana
Community Facilities District No. 117
(Southridge)

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