Agenda packet — Lake Elsinore City Council, June 24, 2025 (part 1 of 6)

City of Lake Elsinore
City Council Meeting
Agenda – Final
Brian Tisdale, Mayor
Robert E. Magee, Mayor Pro Tem
Steve Manos, Council Member
Timothy J. Sheridan, Council Member
Natasha Johnson, Council Member
Jason Simpson, City Manager
Meeting Date:

June 24, 2025
Closed Session: 5:30 PM
Public Session: 7:00 PM
Cultural Center
183 N. Main Street
Lake Elsinore, CA 92530
The City of Lake Elsinore appreciates your attendance. Citizens’ comments, input, and interests provide the City Council with valuable information regarding issues of the community.

Meeting Information
Meetings are held on the 2nd and 4th Tuesday of every month, and the agenda is posted 72 hours prior to each meeting outside of City Hall. The agenda and related reports are also available on the City’s website at www.Lake-Elsinore.org. Meetings are conducted in person, televised live on Spectrum Cable Station Channel 29 and Frontier Cable Channel 31, and streamed online at http://www.lakeelsinore.org/city-government/city-council/webcast-videos. If you are attending the meeting in person, please park in the parking lot across the street from the Cultural Center to assist us in limiting the impact of meetings on the Downtown Business District. Thank you for your cooperation.

Public Comments – Addressing the City Council
Any person wishing to address the City Council on items not included on the Agenda may do so during Public Comments for 1 minute at the beginning of the meeting or during Public Comments for 3 minutes at the end of the meeting. We respectfully ask those interested in addressing the City Council to either submit a request to speak online at http://www.lake-elsinore.org/city-government/agendasand-minutes or complete and present a “Request to Speak” form to the City Clerk at the meeting. This Form is available on the table located inside the Council Chamber. Members of the public may also provide comments on Agenda items by noting the item on the “Request to Speak” form and will be called to address the City Council when the item is considered by the City Council during the meeting.

Written Communications
If you would like to submit written public comments, you may do so prior to the meeting either by entering them online at the link above or emailing them to the City Clerk at calvarez@lakeelsinore.org. Any written communications or additional documents distributed to the City Council within 72 hours of the meeting will also be made available to the public in accordance with Government Code Section 54957.5.

Accessibility Accommodations
In compliance with the Americans with Disabilities Act, any person with a disability who requires a modification or accommodation in order to participate in a meeting should contact the City Clerk’s Department at (951) 824-8934, at least 48 hours before the meeting to make reasonable arrangements to ensure accessibility
City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 2
Dream Extreme 2040 is the City’s FIRST long-term strategic plan to assist the City in its pursuit of achieving its vision. The plan is a living document that will be updated regularly and serve as the framework to guide all decision-making over the next 20 years by identifying key Anchors, Aspirations, and Strategies.

Our Vision is the City of Lake Elsinore will be the ultimate destination where all can live, work, play, build futures, and fulfill dreams.

The Anchors are the City of Lake Elsinore’s unique community assets and opportunities: The Lake, Downtown, and Action and Adventure.
• The Lake: Lake Elsinore is a vital community asset. Protecting, enhancing, and celebrating the Lake is critical to Lake Elsinore’s City and community health. • Downtown: Enhancing and creating the highest quality downtown experience will serve to create a strong sense of place that will shape the City’s identity as a place where residents and visitors can live, work, and play.
• Action and Adventure: Lake Elsinore’s programs, facilities, and natural environment will define the City as a destination for action and adventure for both visitors and residents.

Our Aspirations are broad, long-term goals that encapsulate what we hope to achieve in Lake Elsinore’s future. The City has identified 4 key aspirations to work towards.

Items on the agenda that align with Aspirations from the Dream Extreme 2040 Plan are noted by the Aspiration’s icon to highlight City Council actions that help the City pursue its goals.

To read the plan and learn more about its implementation in the City, visit www.Lake-Elsinore.org/DreamExtreme2040.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 3

CALL TO ORDER
The regular meeting of the City Council will be called to order.

ROLL CALL

PUBLIC COMMENTS ON CLOSED SESSION ITEMS
CLOSED SESSION - 5:30 P.M.

A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 374-173-004
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Berthanna Taylor Under negotiation: Price and terms of payment
B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 373-151-014
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Letticia Cervantes Under negotiation: Price and terms of payment
C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 389-020-056 (portion)
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Vista Charter Public Schools Under negotiation: Price and terms of payment
RECESS
The City Council will recess to Closed Session.

RECONVENE/CALL TO ORDER - 7:00 P.M.

The Regular Meeting of the City Council will reconvene and the Regular Meeting of the Successor Agency will be called to order.

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

PRESENTATIONS/CEREMONIALS
1) Parks & Recreation Month Proclamation 2025
Present a Proclamation to the City of Lake Elsinore Community Services Department proclaiming the month of July 2025 as “Park and Recreation Month” in the City of Lake Elsinore.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 4
PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY COUNCIL CONSENT CALENDAR
2) Minutes of the Regular City Council Meeting of June 10, 2025 Approve the Minutes.
3) CC Warrant Report Dated May 26, 2025 to June 01, 2025 Receive and File.
4) CC Warrant Report Dated June 02, 2025 to June 08, 2025 Receive and file.
5) CC Warrant Report Dated June 09, 2025 to June 15, 2025 Receive and file.
6) CC Investment Report for May 2025
Receive and file the Investment Report for May 2025.
7) Annual Adoption of Investment Policy
Approve the 2025 Investment Policy.
8) Annexation No. 24 Into Community Facilities District No. 2015-2 (Maintenance Services) for PM 38195 & 38281 (Evergreen)
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF

THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 24) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.
9) Annexation No. 26 Into Community Facilities District No. 2015-2 (Maintenance Services) for APN Nos. 377-380-003 & 377-100-003 (Cambern Apartments) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF

THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 26) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 5
10) Intention to Establish Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)

1. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS

HEIGHTS), TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE

COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS

2. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $14,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)
11) Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN

APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON

PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES.
12) Second Reading of an Ordinance Amending Section 3.08.065 of the Lake Elsinore Municipal Code, Increasing the Amount of the City Manager's Contract Authority to $50,000
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION

3.08.065 OF THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’S CONTRACT AUTHORITY TO $50,000. 13) Agreement with City Net for Street Outreach Services Approve and authorize the City Manager to execute a Professional Services Agreement with City Net for Street Outreach Services in an annual amount not to exceed $291,181 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $29,118.10 for uncertainties and adjustments.
14) Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for Concrete Footings and Foundation, Bid Set A, on the New City Hall Project (CIP Project No. Z20006)
Approve and authorize the City Manager to execute Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for the Concrete Footings and Foundation, Bid Set 'A,' on the New City Hall Project (CIP Project No. Z20006) in an amount not to exceed $219,500.00 in such final form as approved by the City Attorney, authorize the City Clerk to record the notice of completion once the entire scope of work is complete, and return withheld retention to the contractor.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 6
15) Agreement with SAS Construction for the Interior, Exterior Wall and Ceiling Drywall and Insulation, Bid Set “H”, on the New City Hall Project (CIP Project No.

Z20006)
Approve and authorize the City Manager to execute a Public Works Construction Agreement with SAS Construction for an amount not to exceed $1,070,000.00 in such final form as approved by the City Attorney, authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $107,000.00 for construction uncertainties and adjustments; and authorize the City Clerk to record the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.
16) Purchase of a Back-up Generator from Quinn Caterpillar for the New City Hall Project (CIP No. Z20006)
Approve and authorize the City Manager to execute a purchase order with Quinn Caterpillar for a back-up generator for the new City Hall Project (CIP Project #Z20006) in an amount not to exceed $113,545.45.
17) Agreement with Pye-Barker for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) Approve and authorize the City Manager to execute a Public Works Construction Agreement with Pye-Barker in an amount not to exceed $156,379.20 for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $15,637.00 for construction uncertainties and adjustments. 18) Contractor Services Agreement with Azteca Cleaning Services, LLC for On-Call Cleaning Services
Approve and authorize the City Manager to execute a contract with Azteca Cleaning Services, LLC in an amount not to exceed $300,000 for on-call cleaning services in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $30,000 for uncertainties and adjustments.
19) Agreement with Lorena Hancock for Recreation Classes Approve and authorize the City Manager to execute an Independent Contractor Agreement with Lorena Hancock in an amount not to exceed $50,000 for recreation classes in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $5,000 for uncertainties and adjustments.
20) Agreement with National Junior Basketball League for Basketball League, Practices, Games, and Instruction
Approve and authorize the City Manager to execute an Independent Contractor Agreement with National Junior Basketball League in an amount not to exceed $75,000 for basketball league, practices, games, and instruction in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $7,500 for uncertainties and adjustments.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 7
21) Parcel Map No. 38614
Approve Parcel Map No. 38614, subject to the City Engineer’s acceptance as being true and correct, authorize the City Clerk to sign the map and arrange for the recordation, and approve and authorize the City Manager to execute the Construction of Improvements Agreement with Lake Elsinore Plaza 2.
22) Cooperative Agreement with the State of California Department of Transportation for the I-15 Nichols Road Interchange
Approve and authorize the City Manager to execute a Cooperative Agreement with the State of California Department of Transportation (Caltrans) for the I-15 Nichols Road Interchange Improvement Project in such final form as approved by the City Attorney. 23) Professional Services Agreement with Fehr & Peers to Provide Environmental Clearance, Final Design (PS&E) and Construction Support for HSIP Cycle 12 Citywide Signalized Intersections Systemic Safety Improvements Project Approve and authorize the City Manager to execute a Professional Services Agreement with Fehr & Peers for Environmental Clearance, Final Design, and Construction Support services for the HSIP Cycle 12 Citywide Signalized Intersections Systemic Safety Improvements Project in the amount of $82,100 in such final form as approved by the City Attorney and authorize City Manager to execute change orders not to exceed a 10% contingency for unanticipated costs. 24) KB Home Coastal TR 25475 & 33725 Tuscany Crest Haul Route Approve a request for the haul route, including hours of operation for the Tuscany Crest project, and authorize the Mayor and City Manager to execute the haul route construction agreement.
25) Amendment No. 1 to the Professional Services Agreement with Lochner (formerly KOA Corporation) for the HSIP Cycle 11 Project Approve and authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with Lochner (formerly KOA Corporation) in the amount of $125,049 plus a 10% contingency for additional services to complete pedestrian ramp design for the HSIP Cycle 11 Project for a total contract amount not to exceed $205,038, in such final form as approved by City Attorney. 26) Purchase of One (1) Diesel Elgin Broom Badger Sweeper Approve and authorize the City Manager to execute a Purchase Order with Haaker Equipment in an amount not to exceed $358,849.99 for One (1) Diesel Elgin Broom Badger Sweeper in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $35,884.99 for uncertainties and adjustments.
27) Approval of Fiscal Year 2025-26 Rates with the County of Riverside for Maintenance of City Traffic Signals and Safety Lighting Approve the Fiscal Year 2025-26 rates for the County of Riverside Transportation Department (County) Agreement for Traffic Signal and associated hardware maintenance, emergency call-out services, and inventory of City traffic signal equipment maintained by the County.

City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 8
28) On-Call Agreement with CM Wash Equipment for Maintenance of Wash Stations and Equipment for Citywide Facilities
Approve and authorize the City Manager to execute a Contractor Services Agreement with CM Wash Equipment for the maintenance of wash stations and equipment for Citywide Facilities in an amount not to exceed $60,000.00 annually in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $6,000.00 for unanticipated costs. 29) Agreement with Blue Triton Brands, Inc. (DBA ReadyRefresh) for Citywide Water Delivery Services
Approve and authorize the City Manager to execute an Agreement with Triton Brands, Inc. (DBA ReadyRefresh) for water delivery services in an amount not to exceed $11,000.00 per Fiscal Year in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency of $1,100.00 for unanticipated costs.

SUCCESSOR AGENCY CONSENT CALENDAR
30) Minutes of the Regular Successor Agency Meeting of June 10, 2025 Approve the Minutes.
31) SA Investment Report for May 2025
Receive and file the Investment Report for May 2025.
32) SA Warrant Report Dated May 26, 2025 to June 01, 2025 Receive and file.
33) SA Warrant Report Dated June 02, 2025 to June 08, 2025 Receive and file.
34) SA Warrant Report Dated June 09, 2025 to June 15, 2025 Receive and file.

PUBLIC HEARINGS
35) Preliminary Capital Improvement Plan (CIP) Budget for Fiscal Years 2025-26 to 2029-30
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2025-26 TO 2029-30.
36) Amendment to Title 17 (Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses

1. Find the proposed amendment to the Lake Elsinore Municipal Code Exempt from the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3); and City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 9

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AMENDMENTS TO TITLE 17, AMENDING AND RESTATING CHAPTER 17.156 OF THE LAKE ELSINORE MUNCIPAL CODE REGARDING CANNABIS USES. 37) Request to Amend Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees

1. Find that the proposed projects are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities);

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT (DA-2024-03) FOR MODERN LEAF CULTURE (DBA MODERN LEAF AND EMBR) LOCATED AT 31877 CORYDON ROAD, UNITS 120 AND 150 (APN: 370-051-016 AND 370-051-030);

3. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-01) FOR ALBA
SYSTEMS LOCATED AT 31879 CORYDON ROAD, UNIT 150 (APN: 370-051-025);

4. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-02) FOR LE
INVESTMENT GROUP (DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021);

5. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-04) FOR GREEN
ORIGINS LE (DBA THE SYNDICATE 1) LOCATED AT 504 CENTRAL AVENUE, BUILDING O (APN: 377-420-002);

6. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-05) FOR IE LICENSING (DBA THE SYNDICATE 2) LOCATED AT 31885 CORYDON ROAD, UNITS 130, 140, AND 150 (APN: 370-031-017, 370-031-018 AND 370-031-019); and

7. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-06) FOR THE
HEALING TREE LOCATED AT 480 3RD STREET (APN: 377-140-033).

BUSINESS ITEM
38) Adoption of the FY 2025-26 Annual Operating Budget, Schedule of Authorized Positions, and the Gann Limit

1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING THE FY 2025-26 ANNUAL OPERATING

BUDGET AND ESTABLISHING THE CONTROLS ON CHANGES IN THE
APPROPRIATIONS;
City Council Agenda - Final June 24, 2025
City of Lake Elsinore Page 10

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS; and

3. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY 2025-26 AND SELECTING THE POPULATION AND INFLATION FACTOR ACCORDINGLY.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES
(Please read & complete a Request to Address the City Council/Successor Agency form prior to the start of the meeting and turn it in to the City Clerk/Clerk. The Mayor/Chair or City Clerk/Clerk will call on you to speak.)

CITY MANAGER COMMENTS

CITY ATTORNEY COMMENTS

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED

ADJOURNMENT
The Lake Elsinore City Council will adjourn to the next Regular meeting of Tuesday, July 8, 2025 in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.

AFFIDAVIT OF POSTING
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, do hereby affirm that a copy of the foregoing agenda was posted at City Hall at 5:00 p.m. on Wednesday, June 18, 2025. _________________________
Candice Alvarez, MMC
City Clerk
A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 374-173-004
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Berthanna Taylor Under negotiation: Price and terms of payment

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: David Mann, Assistant City Attorney
Date: June 24, 2025
Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 374-173-004
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Berthanna Taylor Under negotiation: Price and terms of payment
B. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 373-151-014
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Letticia Cervantes Under negotiation: Price and terms of payment

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: David Mann, Assistant City Attorney
Date: June 24, 2025
Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 373-151-014
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Letticia Cervantes Under negotiation: Price and terms of payment
C. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 389-020-056 (portion)
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Vista Charter Public Schools Under negotiation: Price and terms of payment

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: David Mann, Assistant City Attorney
Date: June 24, 2025
Subject: CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov’t Code Section 54956.8)
Property: APN 389-020-056 (portion)
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Vista Charter Public Schools
Under negotiation: Price and terms of payment
1) Parks & Recreation Month Proclamation 2025
Present a Proclamation to the City of Lake Elsinore Community Services Department proclaiming the month of July 2025 as “Park and Recreation Month” in the City of Lake Elsinore.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Johnathan Oliver Skinner, Director Of Community Services Date: June 24, 2025
Subject: Parks & Recreation Month Proclamation 2025
Recommendation
Present a Proclamation to the City of Lake Elsinore Community Services Department proclaiming the month of July 2025 as “Park and Recreation Month” in the City of Lake Elsinore.

Background
Park and Recreation Month was first celebrated in July 1985, and it is observed annually to recognize the impact of park and recreation professionals on communities. This year marks the 40th anniversary of the celebration. The month is dedicated to celebrating those who maintain and operate local, state, and community parks. In California, July 2025 has been declared as Parks Make Life Better! Month to emphasize the importance of equitable access to local parks and recreation facilities.

Discussion
The City of Lake Elsinore Celebrates the month of July as “Park and Recreation Month” with various activities throughout July including:
• July 4th Party in the Park
• July 4th Fireworks Spectacular (able to view on shore and on the water on a boat!) • July 10th Live at the Lakefront Concert: Green Day Tribute Band (Lauch Pointe) • July 17th Live at the Lakefront Concert: Amigo Bronco, Mexican Regional (Launch Pointe) • July 24th Live at the Lakefront Concert: Taylor Swift Tribute by Swift nation (Launch Pointe) • July 31th Live at the Lakefront Concert: Tribute to Adele by Always Adel (Launch Pointe) There will also some “free lake pass” days with parking fee.

Parks & Recreation Month Proclamation

Page 2 of 2 ends

Fiscal Impact
No fiscal impact
Attachments
Attachment 1- Proclamation
Community Services

2) Minutes of the Regular City Council Meeting of June 10, 2025 Approve the Minutes.

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: June 24, 2025
Subject: Minutes of the Regular City Council Meeting of June 10, 2025 Recommendation
Approve the Minutes.

Attachments
Attachment 1 - Draft Minutes
City Clerk's Office
City of Lake Elsinore
City Council Meeting
Minutes – Draft
Brian Tisdale, Mayor
Robert E. Magee, Mayor Pro Tem
Steve Manos, Council Member
Timothy J. Sheridan, Council Member
Natasha Johnson, Council Member
Jason Simpson, City Manager
Meeting Date:

June 10, 2025
Closed Session: 5:30 PM
Public Session: 7:00 PM
Cultural Center
183 N. Main Street
Lake Elsinore, CA 92530

CALL TO ORDER
The Regular Meeting of the City Council was called to order at 5:30 p.m.

ROLL CALL

Present: 5 - Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale

Absent: 0 - Council Member Johnson

PUBLIC COMMENTS FOR CLOSED SESSION ITEMS
There were no speakers.

CLOSED SESSION - 5:30 P.M.

A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov’t Code Section 54956.8)
Property: APN: 377-313-013 & 377-320-004
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Perris Senior Apartments Under negotiation: Price and terms of payment
B. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov’t Code Section 54956.8)
Property: APN: 377-320-003
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Felipe Munoz Under negotiation: Price and terms of payment
City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 2
C. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov’t Code Section 54956.8)
Property: APN: 373-061-010
Agency negotiator: City Manager Simpson
Negotiating parties: City of Lake Elsinore and Michelle Hernandez Under negotiation: Price and terms of payment

RECONVENE/CALL TO ORDER
The Regular Meeting of the City Council reconvened and the Regular Meeting of the Successor Agency was called to order at 7:00 p.m.

PLEDGE OF ALLEGIANCE
Mayor Tisdale led the Pledge of Allegiance.

ROLL CALL

Present: 4 - Council/Agency Members Manos and Sheridan; Mayor Pro Tem/Vice Chair Magee; and Mayor/Chair Tisdale

Absent: 1 - Council/Agency Member Johnson

CLOSED SESSION REPORT
Assistant City Attorney Mann reported that all three items were discussed; however, no reportable action was taken.

PRESENTATIONS/CEREMONIALS
1) Proclamation Declaring June 19, 2025, as Juneteenth in the City of Lake Elsinore Present a Proclamation declaring June 19, 2025, as “Juneteenth” in the City of Lake Elsinore.

Mayor Tisdale presented the Proclamation to Lauren Venerable, Fundraising Chair for the NAACP.
2) Update on Elsinore Valley Municipal Water District's (EVMWD) Proposition 218 Process and Proposed Rate Adjustment
Director Harvey Ryan presented the update.
3) Update on the Community Services Department (CSD) Master Plan Receive an update on the CSD Master Plan project from consultants at BerryDunn.

Nikki Ginger and Elsa Fischer, BerryDunn, presented the update.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 3
4) Lake Elsinore Tigers High School Varsity Baseball
Present Certificates of Recognition to the Lake Elsinore Tigers High School 2024-2025 Varsity Baseball, CIF Southern Section Division 5 Champions.

Mayor Tisdale presented Certificates of Recognition to Lake Elsinore Tigers High School Varsity Baseball Head Coaches Bobby Kielty and Don Nicholson, Assistant Coach Jovanny Huerta, and the Team.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE
John Thorton was called to speak.

Leo Zoller was called to speak.

CITY COUNCIL CONSENT CALENDAR
A motion was made by Council Member Manos, seconded by Council Member Sheridan to approve the City Council Consent Calendar with Item Nos. 16 and 19 removed for discussion. The motion carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson
5) Minutes of the Regular City Council Meeting of May 27, 2025 Approve the Minutes.

This item was approved on the City Council Consent Calendar. 6) CC Warrant Report Dated May 12, 2025 to May 18, 2025 Receive and File.

This item was approved on the City Council Consent Calendar. 7) CC Warrant Report Dated May 19, 2025 to May 25, 2025 Receive and file.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 4
8) Resolution of Consideration of Change Proceedings for Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE (TUSCANY

VALLEY/CREST), DECLARING ITS INTENTION TO CONSIDER AMENDMENTS TO

THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR EACH OF IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE DISTRICT

AND INCREASING THE AUTHORIZED BONDED INDEBTEDNESS FOR EACH OF IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA NO. 2 OF THE DISTRICT.

This item was approved on the City Council Consent Calendar. 9) Approval of an Agreement with eScribe Software Ltd. for Agenda Management Services
Approve and authorize the City Manager to execute a Professional Services Agreement with eScribe Software Ltd. in an amount not to exceed $146,241 over the initial three-year term for the implementation, training, and support of a comprehensive digital agenda management platform in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar. 10) Agreement for Animal Control Services with Animal Friends of the Valleys Approve and authorize the City Manager to execute an Animal Control Services Agreement with Animal Friends of the Valleys, Inc. (AFV) in an amount not to exceed $271,376.52 for Fiscal Year 2025-26 for animal control services in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed 10% contingency of $27,137.65 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 11) Change Order #1 to the Public Works Agreement for the Fire Suppression System in the New City Hall Project (CIP Project No. Z20006) Approve and authorize the City Manager to negotiate and approve a change order to the agreement between Cal State Fire Protection and the City of Lake Elsinore in an amount not to exceed $117,996.97 for expanding the fire suppression system in the building. Authorize the City Manager to execute the change order, subject to approval as to form by the City Attorney.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 5
12) Professional Services Agreement with Inland Foundation Engineering, Inc. for Geotechnical Building Construction Inspection Services of the New City Library Project (CIP Project No. Z20003)
Approve and authorize the City Manager to execute an agreement with Inland Foundation Engineering, Inc. in an amount not to exceed $142,830.00 for Geotechnical Building Construction Inspection Services of the New City Library Project in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $14,283.00 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 13) Agreement with Pye-Barker for the Design and Installation of the Low Voltage Security and Data System in the City Hall Building Project (CIP Project No.

Z20006)
Approve and authorize the City Manager to execute an agreement with Pye-Barker in an amount not to exceed $958,761.82 for the design and installation of the low voltage security and data system for the New City Hall Project (CIP Project No. Z20006) in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $95,876.18 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 14) Agreement with Semper Patrol, Inc., for Security Services at the New City Hall Construction Project (CIP Project No. Z20006)
Approve and authorize the City Manager to execute a Professional Service Agreement with Semper Patrol, Inc. in an amount not to exceed $119,808 for security patrol services at the new City Hall in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency in the amount of $11,981 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar. 15) Vacant Land Purchase Agreement and Joint Escrow Instructions for Acquisition of Real Property: APN 377-231-040
Approve the Vacant Land Purchase Agreement and Joint Escrow Instructions, including Seller’s Counter Offer No. 1 and other related standard forms (the “Agreement”) in substantially the form attached, and confirm that the City Manager and Assistant City Manager are authorized to execute the Agreement in such final form as approved by the City Attorney and direct the City Manager to execute such other documents necessary to complete the transaction, including but not limited to, the Certificate of Acceptance.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 6
16) Agreement with the County of Riverside Sheriff's Department for Law Enforcement Services
Approve and authorize the Mayor to execute an Agreement with the County of Riverside Sheriff's Department to perform law enforcement services per the fee and terms noted in the agreement in such final form as approved by the City Attorney.

This item was removed from the City Council Consent Calendar for discussion. 17) Housing Successor Annual Report for Fiscal Years 2013-14 Through 2023-24 Regarding the Low- and Moderate-Income Housing Asset Fund Report Pursuant to Senate Bill 341
Receive and file the Housing Successor Annual Report for Fiscal Years 2013-14 through 2023-24.

This item was approved on the City Council Consent Calendar. 18) July 4th Fireworks Celebration on the Lake
Approve the recommended traffic detour map as approved by the City Engineer for the Annual Fireworks Show on Lake Elsinore.

This item was approved on the City Council Consent Calendar. 19) 2025 Annual Consumer Price Index Increase for Refuse Collection Services Provided by CR&R
Receive and file the 2025 Annual Consumer Price Index Increase for Refuse Collection Services provided by CR&R since the rate increase falls within the allowable amount per the Franchise Agreement.

This item was removed from the City Council Consent Calendar for discussion. 20) Fiscal Year 2025-26 SB-1 Lakeshore Drive and Mission Trail Pavement Resurfacing Project
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-2026 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017.

This item was approved on the City Council Consent Calendar. 21) Amendment No. 2 to the Agreement with Prudential Overall Supply for Weekly Employee Uniforms, Shop Towels, and Logo Mat Services
Approve and authorize the City Manager to execute Amendment No. 2 to the Agreement with Prudential Overall Supply to increase compensation by an additional $4,000.00 for a total contract amount not to exceed $27,784.00 for weekly employee uniforms, shop towels, and logo mat services in such final form approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 7
22) Annual On-Call and Construction Contractor Services Agreements in Support of City of Lake Elsinore Minor Construction, Maintenance, and Operations Approve the On-Call and Minor Construction Contractor Services Agreements with Endresen Development Inc. in the amount of $500,000, Cotter Construction Inc. in the amount of $500,000, Amber Airconditioning in the amount of $450,000, Pursuit Electric in the amount of $300,000, United Carports, LLC$250,000, SAS Construction in the amount of $250,000, R&R B Inc DBA Servpro of Chino in the amount of $200,000, B&B Nurseries Inc. (dba Landscape Center) in the amount of $150,000, BELFOR USA Group Inc. in the amount of $100,000, and J&M Leyva Enterprises in the amount of $100,000 in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

ITEMS REMOVED FROM THE CITY COUNCIL CONSENT CALENDAR FOR DISCUSSION 16) Agreement with the County of Riverside Sheriff's Department for Law Enforcement Services
Approve and authorize the Mayor to execute an Agreement with the County of Riverside Sheriff's Department to perform law enforcement services per the fee and terms noted in the agreement in such final form as approved by the City Attorney.

Levi Chacon was called to speak.

Leo Zoller was called to speak.

A motion was made by Mayor Pro Tem Magee, seconded by Council Member Manos to approve staff's recommendation. The motion carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson
19) 2025 Annual Consumer Price Index Increase for Refuse Collection Services Provided by CR&R
Receive and file the 2025 Annual Consumer Price Index Increase for Refuse Collection Services provided by CR&R, since the rate increase falls within the allowable amount per the Franchise Agreement.

Kim Cousins was called to speak.

A motion was made by Council Member Manos, seconded by Mayor Pro Tem Magee to approve staff's recommendation. The motion carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson
City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 8

SUCCESSOR AGENCY CONSENT CALENDAR
A motion was made by Agency Member Sheridan, seconded by Vice Chair Magee to approve the Successor Agency Consent Calendar. The motion carried by the following vote:

Aye: 4 Agency Members Manos and Sheridan; Vice Chair Magee; and Chair Tisdale Nay: 0 None

Absent: 1 Agency Member Johnson
23) Minutes of the Regular Successor Agency Meeting of May 27, 2025 Approve the Minutes.

This item was approved on the Successor Agency Consent Calendar. 24) SA Warrant Report Dated May 12, 2025 to May 18, 2025 Receive and file.

This item was approved on the Successor Agency Consent Calendar. 25) SA Warrant Report Dated May 19, 2025 to May 25, 2025 Receive and file.

This item was approved on the Successor Agency Consent Calendar. 26) Amendment No. 1 to the Agreement with RP Landscape & Irrigation, Inc. for Additional Maintenance Services at Lake Elsinore Diamond Stadium Approve and authorize the Executive Director to execute Amendment No. 1 to the Agreement with RP Landscape & Irrigation, Inc. to increase compensation by an additional $44,000.00 for an amount not to exceed $192,822.16 for additional maintenance services at Lake Elsinore Diamond Stadium in such final form as approved by the Agency Attorney.

This item was approved on the Successor Agency Consent Calendar.

PUBLIC HEARING
27) Assembly Bill 2561/Government Code Section 3502.3 Regarding Vacancies, Recruitment, and Retention Efforts
Receive and file the informational report on City of Lake Elsinore vacancies, recruitment, and retention efforts in compliance with Assembly Bill 2561/Government Code Section 3502.3.

The Public Hearing was opened at 7:54 p.m.

Assistant City Attorney Mann presented the staff report.

There were no speakers.

City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 9
The Public Hearing was closed at 7:57 p.m.

A motion was made by Council Member Manos, seconded by Council Member Sheridan to receive and file the item. The motion Carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson

BUSINESS ITEMS
28) First Reading of Local Responsibility Area Fire Map Ordinance Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ADOPTING THE FIRE

HAZARD SEVERITY ZONES AS RECOMMENDED BY THE CALIFORNIA

DEPARTMENT OF FORESTRY AND FIRE PROTECTION PURSUANT TO
GOVERNMENT CODE SECTION 51178.

Fire Marshal Traci Williams presented the staff report.

Kim Cousins was called to speak.

A motion was made by Council Member Manos, seconded by Council Member Sheridan to continue the item to an undisclosed date. The motion carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson
29) Amendment to Section 3.08.065 of the Lake Elsinore Municipal Code Increasing the Amount of the City Manager’s Contract Authority to $50,000 Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION

3.08.065 OF THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’S CONTRACT AUTHORITY TO $50,000.

Assistant City Attorney Mann presented the staff report.

Kim Cousins was called to speak.

A motion was made by Council Member Manos, seconded by Mayor Pro Tem Magee to introduce by title only and waive further reading of the Ordinance. The motion carried by the following vote:

Aye: 4 Council Members Manos and Sheridan; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

Absent: 1 Council Member Johnson
City Council Minutes - Draft June 10, 2025
City of Lake Elsinore Page 10

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - THREE MINUTES
Greg Langworthy was called to speak.

Jim Niederecker was called to speak.

CITY ATTORNEY COMMENTS
Assistant City Attorney Mann had no comments.

CITY MANAGER'S COMMENTS
City Manager Simpson had no comments.

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED
Council Member Sheridan shared that youth may ride Riverside Transit Agency buses free through December 31, 2026; announced that Riverside Transit Agency is holding a hiring event for drivers on Saturday, June 21, 2025 from 9:00 a.m. to 1:00 p.m. at the Corona Circle City Center in Corona; announced a Town Hall Fire Safety Discussion on Thursday, June 19, 2025 from 6:30 – 7:30 p.m. at the Summit Park Recreation Center; shared that South Coast AQMD is hosting a Lawn & Garden Equipment Exchange on Saturday, June 28, 2025 from 8:30 a.m. to 12:30 p.m. in Parking Lot E at Riverside City College; and shared that the Riverside University Health System is holding a free vaccine clinic on Friday, June 27, 2025 from 11:00 a.m. to 3:00 p.m. at the Lake Elsinore Senior Activity Center.

Council Member Manos addressed speakers’ comments; reported on his attendance at the Southern California Association of Governments Regional Council and Transportation Committee meetings on June 5, 2025.

Mayor Pro Tem Magee noted that he will attend the Riverside County Transportation Commission Executive Committee meeting on Wednesday, June 11, 2025; shared highlights from the Kids Fishing Derby, which was held on Saturday, June 7, 2025; announced that the Animal Friends of the Valleys is offering free microchips for Lake Elsinore Residents; and reminded the community that personal fireworks are illegal in the City of Lake Elsinore and encouraged residents to celebrate safely by enjoying our free Fireworks Spectacular on July 4, 2025 at 9:00 p.m.

Mayor Tisdale shared that he will attend the Western Riverside Council of Governments General Assembly on Thursday, June 12, 2025 and Executive Committee meeting on Friday, June 13, 2025; recognized the Elsinore High School Varsity Baseball team for winning the 2025 CIF-SS Championship; congratulated the 2025 Classes of all the High Schools in Lake Elsinore; and shared important dates regarding the June 24, 2025 Special Election for Assembly District 63.

ADJOURNMENT
The Lake Elsinore City Council adjourned at 8:50 p.m. to the next Regular meeting of Tuesday, June 24, 2025 in the Cultural Center located at 183 N. Main Street. Closed Session will commence at 5:00 p.m. or such later time as noticed on the Agenda, and the regular Open Session business meeting will commence at 7:00 p.m.
3) CC Warrant Report Dated May 26, 2025 to June 01, 2025 Receive and File.

Page 1 of 1 ends

Discussion
The Warrant Report lists all general checks issued since the prior Warrant Report.

Attachments
Attachment 1 – City Warrant Summary
Attachment 2 – City Warrant List
Administrative Services
MAY 26, 2025 TO JUNE 01, 2025 CITY OF LAKE ELSINORE CITY WARRANT SUMMARY FUND NO. FUND DESCRIPTION TOTAL
100 GENERAL 520,204.57 $
103 THE ANCHOR 14,878.33
110 GAS TAX 5,266.19
130 LIGHTING, LANDSCAPE, MAINTENANCE DIST - CITYWIDE 17,613.09 135 LIGHTING, LANDSCAPE, MAINTENANCE DIST - NO. 1 3,971.34 180 LAUNCH POINTE 41,737.37
305 INFORMATION SYSTEMS SERVICE 33,411.90
310 SUPPORT SERVICE 2,177.96
315 FLEET SERVICE 7,929.34
320 FACILITIES SERVICE 8,992.14
330 CFD 2015-2S MAINTENANCE SERVICES 10,000.00
381 CFD 2025-1 CANYON HILLS HEIGHTS IMPROVEMENT 12,500.00 398 CFD 2021-1 IA-1 TUSCANY VALLEY & CREST IMPROVEMENT 12,500.00 500 CAPITAL IMPROVEMENT PLAN 97,933.17
631 DESTRATIFICATION EQUIPMENT REPLACEMENT 7,111.65
655 CFD 2015-1S LAW, FIRE, PARAMEDIC SERVICES 5,000.00
GRAND TOTAL 801,227.05 $
Attachment 1 1 of 1
MAY 26, 2025 TO JUNE 01, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
APA25002288 ALLEGRA MARKETING PRINT MAIL 168.13 $
APA25002289 AZTECA CLEANING SERVICES LLC 2,075.00
APA25002290 BEGINNERS EDGE SPORTS TRAINING, LLC 2,913.75 APA25002291 CDW GOVERNMENT, INC. 749.58
APA25002292 CHARTER COMMUNICATIONS 2,678.98
APA25002293 CHARTER COMMUNICATIONS 231.61
APA25002294 CONCENTRA 773.00
APA25002295 COTTER CONSTRUCTION, INC. 10,900.00
APA25002296 DEPT. OF FORESTRY & FIRE PROTECTION 80,619.65 APA25002297 DISCOUNT HAULING & CLEANUP SERVICE 8,320.00 APA25002298 DREAM CENTER LAKE ELSINORE 5,000.00
APA25002299 DUSTIN THOMPSON PHOTOGRAPHY 560.00
APA25002300 FRONTIER CALIFORNIA - INTERNET 797.71
APA25002301 FRONTIER CALIFORNIA, INC. 4,548.95
APA25002302 GEI CONSULTANTS INC 714.65
APA25002303 GLENN LUKOS ASSOCIATES, INC. 2,159.70
APA25002304 GOLDSTAR ASPHALT PRODUCTS 3,327.75
APA25002305 GREAT AMERICA FINANCIAL SERVICES 2,177.96
APA25002306 IHEARTMEDIA ENTERTAINMENT INC. 19,562.16
APA25002307 IMAGEN, INC. 11,360.93
APA25002308 KELLEN'S BAIT 256.50
APA25002310 MIG 52,716.59
APA25002311 PYRO SPECTACULARS, INC. 50,000.00
APA25002312 SCOTT FAZEKAS & ASSOCIATES, INC. 8,578.68
APA25002313 SOUTHERN CALIFORNIA EDISON CO. 20,103.09
APA25002314 SPORTS SAINTS 787.50
APA25002315 STAUFFER LAWN EQUIPMENT 252.39
APA25002316 STENO SOLUTIONS TRANSCRIPTION SERVICES, INC, 281.34 APA25002317 STORYLAND STUDIOS DBA PLAINJOE STUDIOS 7,875.00 APA25002318 TRB AND ASSOCIATES, INC. 4,155.07
APA25002319 TRITON TECHNOLOGY SOLUTIONS, INC 34,686.00
APA25002320 VULCAN MATERIALS COMPANY 1,938.44
APA25002321 WALMART COMMUNITY 336.81
APA25002322 WAXIE SANITARY SUPPLY 1,748.22
9213 CALPERS RETIREES 54,420.70
9285 AK SECURITY ALARM LLC 34,328.59
9286 AMAZON BUSINESS 3,125.22
9287 DOWNS ENERGY 4,851.51
9288 HALO BRANDED SOLUTIONS, INC 1,423.72
9289 HALO BRANDED SOLUTIONS, INC 390.42
9290 HALO BRANDED SOLUTIONS, INC 1,364.90
Attachment 2 1 OF 2
MAY 26, 2025 TO JUNE 01, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
9292 LAKE ELSINORE VALLEY CHAMBER OF COMMERCE 13,500.00 9294 PROSTAFF, LLC 7,350.00
9295 PRUDENTIAL OVERALL SUPPLY 473.89
9296 READYREFRESH 699.21
9297 RIGHTWAY SITE SERVICES, INC. 2,185.73
9298 RIVERSIDE COUNTY SHERIFF'S, ACCOUNTING & FINANCE 249,984.27 9299 SPICER CONSULTING GROUP 40,000.00
143796 BROWN, MATTHEW SCOTT 347.39
143797 EVMWD 34,168.29
143800 HEYDAY 4,345.00
DFT250663 FRONTIER CALIFORNIA - INTERNET 792.17
DFT250664 FRONTIER CALIFORNIA - INTERNET 493.58
DFT250694 CHARTER COMMUNICATIONS 1,399.00
DFT250695 CHARTER COMMUNICATIONS 40.00
DFT250699 CALIFORNIA DEPARTMENT OF FISH AND WILDLIFE 233.37 DFT250702 CORE-MARK US, LLC 580.57
DFT250709 COLONIAL LIFE 1,374.38
GRAND TOTAL 801,227.05 $
Attachment 2 2 OF 2
4) CC Warrant Report Dated June 02, 2025 to June 08, 2025 Receive and file.

Page 1 of 1 ends

Discussion
The Warrant Report lists all general checks issued since the prior Warrant Report.

Attachments
Attachment 1 – City Warrant Summary
Attachment 2 – City Warrant List
Administrative Services
JUNE 02, 2025 TO JUNE 08, 2025 CITY OF LAKE ELSINORE CITY WARRANT SUMMARY FUND NO. FUND DESCRIPTION TOTAL
100 GENERAL 1,082,919.31 $
103 THE ANCHOR 2,757.46
110 GAS TAX 4,950.52
130 LIGHTING, LANDSCAPE, MAINTENANCE DIST - CITYWIDE 42,034.31 135 LIGHTING, LANDSCAPE, MAINTENANCE DIST - NO. 1 8,947.75 155 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM 3,070.04 180 LAUNCH POINTE 137,176.01
300 INSURANCE SERVICE (12,286.52)
305 INFORMATION SYSTEMS SERVICE 170,433.12
310 SUPPORT SERVICE 3,213.23
315 FLEET SERVICE 32,592.06
320 FACILITIES SERVICE 22,550.25
500 CAPITAL IMPROVEMENT PLAN 351,388.39
620 COST RECOVERY TRUST DEPOSITS 7,252.06
GRAND TOTAL 1,856,997.99 $
Attachment 1 1 of 1
JUNE 02, 2025 TO JUNE 08, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
APA25002323 AAA CONSTRUCTION SERVICES, INC 64,900.00 $
APA25002324 AARON CHEVROLET 1,861.05
APA25002325 ACTION GAS & WELDING SUPPLY 110.22
APA25002326 ADVANCED HEATING AND AIR CONDITIONING 3,250.00 APA25002327 ALLEGRA MARKETING PRINT MAIL 78.19
APA25002328 ARDURRA GROUP, INC. 1,020.00
APA25002329 ASCENT ENVIRONMENTAL, INC 21,855.00
APA25002330 CED LAGUNA 6,640.87
APA25002331 CENTURY LINK 40.71
APA25002332 CHARTER COMMUNICATIONS 57.64
APA25002333 COMCATE SOFTWARE INC 11,503.34
APA25002334 CONCENTRA 646.00
APA25002335 COTTER CONSTRUCTION, INC. 28,100.00
APA25002336 CREATIVE INDUSTRIES MEDIA GROUP 3,306.25
APA25002337 DAVID EVANS AND ASSOCIATES, INC. 32,588.71
APA25002338 DISCOUNT HAULING & CLEANUP SERVICE 8,790.00 APA25002339 DP GLASS CO 19,000.00
APA25002340 EGP CONSULTING, INC. 2,781.57
APA25002341 ENVIRONMENTAL SCIENCE ASSOCIATES 15,439.40
APA25002342 EXCEL LANDSCAPE, INC. 30,648.00
APA25002343 FRONTIER CALIFORNIA, INC. 305.80
APA25002344 GOLDSTAR ASPHALT PRODUCTS 424.67
APA25002345 HELIX ENVIRONMENTAL PLANNING INC. 6,662.50
APA25002346 IMAGEN, INC. 1,199.81
APA25002347 INNOVATIVE DOCUMENT SOLUTIONS 3,213.23
APA25002348 KEYSER MARSTON ASSOCIATES, INC. 221.25
APA25002349 KIMBALL MIDWEST 378.89
APA25002350 KNORR SYSTEMS, INC. 2,861.03
APA25002351 LED LIGHTING SOLUTIONS 41,614.20
APA25002352 MORTON PEST CONTROL INC 1,845.00
APA25002353 O'REILLY AUTO STORES INC/FIRST CALL 238.14
APA25002354 PLUMBERS DEPOT, INC. 3,070.04
APA25002355 PRECISION CONCRETE CUTTING 15,434.55
APA25002356 RAPID FIRE SAFETY & SECURITY LLC 66,407.52
APA25002357 RELIABLE RENTALS, INC 2,840.00
APA25002358 RIVERSIDE COUNTY TRANSPORTATION & LAND MANAGEMENT 1,056.72 APA25002359 ROW TRAFFIC SAFETY, INC 1,848.75
APA25002360 SAFETY-KLEEN SYSTEMS, INC. 267.90
APA25002361 SALES AND DISTRIBUTION SERVICES, INC. 1,888.30 APA25002362 SHRED-IT USA, LLC 85.60
APA25002363 SMAX ENTERTAINMENT, LLC 29,000.00
Attachment 2 1 OF 3
JUNE 02, 2025 TO JUNE 08, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
APA25002364 SOUTHERN CALIFORNIA EDISON CO. 57,050.56
APA25002365 SOUTHERN TIRE MART, LLC 224.00
APA25002366 STEWART TITLE OF CALIFORNIA 1,100.00
APA25002367 STK ARCHITECTURE, INC. 12,825.00
APA25002368 STORYLAND STUDIOS DBA PLAINJOE STUDIOS 2,250.00 APA25002370 TYLER TECHNOLOGIES, INC. 112,542.17
APA25002371 VICTORY BEE REMOVAL 250.00
APA25002372 VORTEX USA 4,390.00
APA25002373 VULCAN MATERIALS COMPANY 554.63
APA25002374 WAXIE SANITARY SUPPLY 753.57
APA25002375 WEST COAST SERVICES 1,325.00
APA25002376 WILLDAN 126.82
APA25002377 WILLSCOT MOBILE MINI 1,319.55
9271 AK SECURITY ALARM LLC 2,238.00
9272 ALVAREZ ENTERPRISE SERVICES 11,180.51
9273 AMAZON BUSINESS 1,733.35
9274 CHEN RYAN ASSOCIATES, INC. 21,776.37
9275 CM WASH EQUIPMENT 3,611.90
9276 DOWNS ENERGY 6,285.59
9277 ENDRESEN DEVELOPMENT, INC. 16,124.53
9278 ENDRESEN DEVELOPMENT, INC. 9,803.34
9279 HI-WAY SAFETY, INC. 2,914.50
9280 LAKE ELSINORE VALLEY CHAMBER OF COMMERCE 1,000.00
9281 LEIBOLD, MCCLENDON & MANN, PC 108,750.52
9282 MICHAEL BAKER INTERNATIONAL, INC. 18,040.79
9283 NTH GENERATION COMPUTING, INC. 11,045.02
9284 PRUDENTIAL OVERALL SUPPLY 473.89
9285 REGIONAL CONSERVATION AUTHORITY 125,672.00
9286 REGIONAL FIRST AID, INC. 856.03
9287 RIGHTWAY SITE SERVICES, INC. 424.40
9288 SECURITAS SECURITY SERVICES USA, INC. 3,210.75
9289 SERVICE FIRST 970.06
9290 SOUTHERN CALIFORNIA EDISON - SCE INSTALL 12,500.00 9291 SOUTHERN CALIFORNIA GAS CO. 127.88
9292 TC SPORTS MANAGEMENT, LLC 28,933.33
9293 WEST COAST ARBORISTS, INC. 16,737.00
9294 YUNEX, LLC 540.00
143801 DIAZ, FRANCISCO 990.00
143802 EVMWD 31,768.60
143806 IMPERIAL CATFISH 15,000.00
143807 SHERIFF'S SPECIAL EVENTS 600.00
DFT250701 CALPERS 188,050.32
Attachment 2 2 OF 3
JUNE 02, 2025 TO JUNE 08, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
DFT250703 INTERNAL REVENUE SERVICE 198.50
DFT250704 STATE DISBURSEMENT UNIT 392.30
DFT250705 FRANCHISE TAX BOARD 1,268.10
DFT250706 STATE DISBURSEMENT UNIT 134.30
DFT250707 TASC 12,910.96
DFT250708 PAYCHEX OF NEW YORK, LLC 1,808.20
DFT250710 CALPERS 79,253.66
DFT250711 FRANCHISE TAX BOARD 25,958.74
DFT250712 INTERNAL REVENUE SERVICE 122,636.95
DFT250713 MISSION SQUARE RETIREMENT 8,693.61
DFT250714 MISSION SQUARE RETIREMENT 569.20
DFT250715 NATIONWIDE TRUST COMPANY, FSB 1,924.13
PR06052025 NET PAYROLL 331,698.51
GRAND TOTAL 1,856,997.99 $
Attachment 2 3 OF 3
5) CC Warrant Report Dated June 09, 2025 to June 15, 2025 Receive and file.

Page 1 of 1 ends

Discussion
The Warrant Report lists all general checks issued since the prior Warrant Report.

Attachments
Attachment 1 – City Warrant Summary
Attachment 2 – City Warrant List
Administrative Services
JUNE 09, 2025 TO JUNE 15, 2025 CITY OF LAKE ELSINORE CITY WARRANT SUMMARY FUND NO. FUND DESCRIPTION TOTAL
100 GENERAL 1,150,228.13 $
103 THE ANCHOR 15,946.88
110 GAS TAX 836.52
130 LIGHTING, LANDSCAPE, MAINTENANCE DIST - CITYWIDE 175,800.34 135 LIGHTING, LANDSCAPE, MAINTENANCE DIST - NO. 1 4,510.83 180 LAUNCH POINTE 57,534.04
205 TRAFFIC IMPACT FEE 1,950.00
300 INSURANCE SERVICE 4,915.00
305 INFORMATION SYSTEMS SERVICE 35,973.65
310 SUPPORT SERVICE 1,745.48
315 FLEET SERVICE 1,338.81
320 FACILITIES SERVICE 1,305.42
330 CFD 2015-2S MAINTENANCE SERVICES 319.47
500 CAPITAL IMPROVEMENT PLAN 694,672.00
620 COST RECOVERY TRUST DEPOSITS 24,241.70
653 CFD 2009-1S PARK,OPEN SPACE,STREET LIGHT SERVICES 1,673.07 GRAND TOTAL 2,172,991.34 $
Attachment 1 1 of 1
JUNE 09, 2025 TO JUNE 15, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
APA25002378 ALBERT WEBB & ASSOCIATES 1,950.00 $
APA25002379 AMERICAN FORENSIC NURSES, INC. 674.00
APA25002380 AMERICAN LADY VETS, INC 62,425.15
APA25002381 ANIMAL FRIENDS OF THE VALLEY 22,063.12
APA25002382 AZTECA CLEANING SERVICES LLC 8,742.08
APA25002383 BANNER BANK 1,305.45
APA25002384 BIO-TOX LABORATORIES 80.00
APA25002385 CALIFORNIA, DEPARTMENT OF JUSTICE 280.00
APA25002386 CDW GOVERNMENT, INC. 120,372.45
APA25002387 CHARTER COMMUNICATIONS 1,718.49
APA25002388 CORODATA RECORDS MANAGEMENT, INC. 158.76
APA25002389 COSTAR REALTY INFORMATION INC. 860.00
APA25002390 COUNTY OF RIVERSIDE, EXECUTIVE OFFICE 177,570.00 APA25002391 CR&R, INC. 688,882.89
APA25002392 DAVID EVANS AND ASSOCIATES, INC. 23,243.01
APA25002393 DIRECTV 157.99
APA25002394 DISCOUNT HAULING & CLEANUP SERVICE 15,750.00 APA25002395 EGP CONSULTING, INC. 5,560.13
APA25002396 EL CHICANO 364.50
APA25002397 ENVIROMINE, INC. 138.75
APA25002398 FCS INTERNATIONAL, INC 22,510.00
APA25002399 FEHR & PEERS 3,980.00
APA25002400 FERGUSON 101.86
APA25002401 FRONTIER CALIFORNIA - INTERNET 946.60
APA25002402 FRONTIER CALIFORNIA, INC. 245.76
APA25002403 FRONTIER CALIFORNIA, INC. 90.61
APA25002404 GEI CONSULTANTS INC 1,614.35
APA25002406 GREAT AMERICA FINANCIAL SERVICES 600.30
APA25002407 GRIFFITH COMPANY 24,803.63
APA25002408 HANCOCK, LORENA 9,393.75
APA25002409 INLAND BOBCAT, INC. 669.86
APA25002410 JD PROMOTIONS 2,680.78
APA25002411 LAI GROUP 99.83
APA25002412 LIUNA LOCAL 777 720.00
APA25002413 MORTON PEST CONTROL INC 3,410.00
APA25002414 NATIONAL JUNIOR BASKETBALL LEAGUE 14,438.67 APA25002415 NPG, INC. 87,984.00
APA25002416 NSIDEOUT 498.75
APA25002417 O'REILLY AUTO STORES INC/FIRST CALL 356.83
APA25002418 PRECISION CONCRETE CUTTING 16,501.63
APA25002419 QUADIENT, INC. 191.13
Attachment 2 1 OF 3
JUNE 09, 2025 TO JUNE 15, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
APA25002420 RIVERSIDE ASSESSOR-COUNTY CLERK-RECORDER 20.00 APA25002421 RIVERSIDE ASSESSOR-COUNTY CLERK-RECORDER 20.00 APA25002422 RIVERSIDE ASSESSOR-COUNTY CLERK-RECORDER 17.00 APA25002423 ROGUE ELECTRIC 12,156.70
APA25002424 RP LANDSCAPE & IRRIGATION 9,576.27
APA25002425 SAFETY-KLEEN SYSTEMS, INC. 484.19
APA25002426 SAN DIEGO ICE COMPANY, INC. 310.32
APA25002427 SIGNATURE SYSTEMS GROUP, LLC 91,140.00
APA25002428 SOUTHERN CALIFORNIA EDISON CO. 40,289.96
APA25002429 STAUFFER LAWN EQUIPMENT 497.21
APA25002430 TRI-STAR ELECTRIC 585.00
APA25002431 TRITON TECHNOLOGY SOLUTIONS, INC 146,753.78 APA25002432 TUSCANY HILLS LANDSCAPE & REC. CO. 137,452.50 APA25002433 VALLEY-WIDE ELITE GYMNASTICS 3,843.75
APA25002434 VULCAN MATERIALS COMPANY 339.31
9295 AK SECURITY ALARM LLC 44,898.47
9296 AMAZON BUSINESS 1,121.23
9297 AMERICAN MATERIAL COMPANY 640.47
9298 BRINKS INCORPORATED 1,037.94
9299 CIVICA LAW GROUP, APC 18,966.85
9300 DELONE, MARIA JAZMINE 1,890.00
9301 DOWNS ENERGY 315.49
9302 ENDRESEN DEVELOPMENT, INC. 576.00
9303 ENDRESEN DEVELOPMENT, INC. 576.00
9304 ENDRESEN DEVELOPMENT, INC. 576.00
9305 ENDRESEN DEVELOPMENT, INC. 576.00
9306 ENDRESEN DEVELOPMENT, INC. 10,058.16
9307 ENDRESEN DEVELOPMENT, INC. 9,698.73
9308 ENDRESEN DEVELOPMENT, INC. 1,157.25
9309 ENDRESEN DEVELOPMENT, INC. 576.00
9310 ENDRESEN DEVELOPMENT, INC. 20,880.00
9311 ENDRESEN DEVELOPMENT, INC. 947.22
9312 ENDRESEN DEVELOPMENT, INC. 576.00
9313 ENDRESEN DEVELOPMENT, INC. 20,880.00
9314 ENDRESEN DEVELOPMENT, INC. 576.00
9315 ENDRESEN DEVELOPMENT, INC. 576.00
9316 ENDRESEN DEVELOPMENT, INC. 576.00
9317 ENDRESEN DEVELOPMENT, INC. 23,875.00
9318 ENDRESEN DEVELOPMENT, INC. 20,880.00
9319 ENDRESEN DEVELOPMENT, INC. 576.00
9320 ENDRESEN DEVELOPMENT, INC. 11,670.66
9321 ENDRESEN DEVELOPMENT, INC. 10,080.66
Attachment 2 2 OF 3
JUNE 09, 2025 TO JUNE 15, 2025 CITY OF LAKE ELSINORE CITY WARRANT LIST WARRANT NO. VENDOR NAME AMOUNT
9322 ENDRESEN DEVELOPMENT, INC. 576.00
9323 GMS ELEVATOR SERVICES, INC. 360.00
9324 HDR ENGINEERING, INC. 1,592.95
9325 HDR ENGINEERING, INC. 34,436.08
9326 HEFINGTON MARTIAL ARTS 1,532.81
9327 HI-WAY SAFETY, INC. 7,530.55
9328 KPA SERVICES, LLC 1,428.32
9329 LEIBOLD, MCCLENDON & MANN, PC 60,318.47
9330 MURPHY & EVERTZ LLP 6,068.00
9331 MURPHY & EVERTZ LLP 623.00
9332 MURPHY & EVERTZ LLP 623.00
9333 MURPHY & EVERTZ LLP 7,370.00
9334 PROSTAFF, LLC 14,175.00
9336 QUADIENT LEASING USA, INC. 954.05
9337 RENTERIA, YARABITH BUENFIL 1,385.25
9338 RENTERIA, YARABITH BUENFIL 1,079.25
9339 SECURITAS SECURITY SERVICES USA, INC. 3,415.08
9340 SERVICE FIRST 14,598.10
9341 SOUTHERN CALIFORNIA GAS CO. 2.09
9342 SOUTHERN CALIFORNIA GAS CO. 16.88
9343 SOUTHERN CALIFORNIA GAS CO. 18.98
9344 SOUTHERN CALIFORNIA GAS CO. 21.07
9345 SOUTHERN CALIFORNIA GAS CO. 743.20
9346 SOUTHERN CALIFORNIA GAS CO. 33.61
9347 SOUTHERN CALIFORNIA GAS CO. 68.90
9348 SOUTHERN CALIFORNIA GAS CO. 10.46
9349 SOUTHERN CALIFORNIA GAS CO. 129.89
9350 SOUTHERN CALIFORNIA GAS CO. 104.77
9351 SOUTHERN CALIFORNIA GAS CO. 18.98
9352 SOUTHERN CALIFORNIA MULCH, INC. 32,025.00
9353 THOMSON REUTERS - WEST PUBLISHING CORP. 538.68
143808 AMERICAN ALLIANCE DRUG TESTING 3,120.00
143809 ANDRADE, JUAN 323.41
143810 ARTHUR J. GALLAGHER & CO. INSURANCE BROKERS OF CA, INC. 4,915.00 143811 CONTRERAS, DARIN 95.48
143812 TISDALE, BRIAN 359.80
GRAND TOTAL 2,172,991.34 $
Attachment 2 3 OF 3
6) CC Investment Report for May 2025
Receive and file the Investment Report for May 2025.

Page 1 of 1 ends

Discussion
The Investment Report lists all funds invested for the City as the date shown on the report.

Fiscal Impact
No fiscal impact.

Attachments
Attachment 1 - Investment Report May 2025
Administrative Services

7) Annual Adoption of Investment Policy
Approve the 2025 Investment Policy.

Page 1 of 2 ends

Discussion
Under Government Code Section 53646(a), the City Council should review and adopt the City’s Investment Policy annually.

The City’s investment advisor, PFM Asset Management LLC (PFM), has reviewed the Investment Policy and provided recommendations. These recommendations have been incorporated into this year’s investment policy. A copy of the memorandum from PFM, noting their evaluation and recommendations, is included in this report.

The City Treasurer has reviewed the Investment Policy presented and has no objection. The policy conforms well to what is allowed by the California Government Code. The policy has all required elements outlined in the Model Investment Policy of the Municipal Treasurers’ Association of the United States & Canada.

Fiscal Impact
No fiscal impact.
2025 Investment Policy

Page 2 of 2 ends

Attachments
Attachment 1- 2025 Investment Policy
Attachment 2- 2025 Investment Policy PFM Recommendations Administrative Services
City of Lake Elsinore
Investment Policy
June 24, 2025
1 CITY OF LAKE ELSINORE

INVESTMENT POLICY
JUNE 2025
1) INTRODUCTION
The purpose of this document is to set out the policies and procedures that enhance opportunities for a prudent and systematic investment program and to organize and formalize investmentrelated activities.

The investment policies and practices of the City of Lake Elsinore (the “City”) are, in every case, subject to and limited by applicable provisions of state law and to prudent money management principles. All funds will be invested in accordance with the City’s Investment Policy, and applicable provisions of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (Section 53600 et seq.). 2) SCOPE
The investment policy applies to all financial assets, except bond proceeds and retirement funds, accounted for in the City of Lake Elsinore Annual Comprehensive Financial Report (ACFR) and any new fund created by the City Council, unless specifically exempted. The provisions of relevant bond documents will govern the investment of bond proceeds. 3) OBJECTIVES
The primary objectives, in priority order, of the City’s investment activities shall be:

A) Safety of Principal
Safety of principal is the foremost objective of the City. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City shall seek to preserve principal by mitigating two types of risk: credit risk and interest rate risk.

1. Credit Risk: The City will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer, by:
• Limiting investments to the types of securities listed in the Authorized Investments section of this Investment Policy. • Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized.

City of Lake Elsinore
Investment Policy
June 24, 2025
2 2. Interest Rate Risk: The City will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates, by:
• Structuring the investment portfolio with marketable securities so that securities can be liquidated to meet cash flow needs or structuring the portfolio to mature to meet cash requirements for ongoing operations.

B) Liquidity
Historical cash flow trends are compared to current cash flow requirements on an ongoing basis in an effort to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonably anticipated operating requirements.

C) Yield
The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and the cash flow characteristics of the portfolio. 4) PRUDENCE
In managing its investment program, the City will observe the “Prudent Investor” standard as stated in Government Code Section 53600.3, applied in the context of managing an overall portfolio. Investments will be made with care, skill, prudence and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

This standard of prudence shall be applied in the context of managing an overall portfolio.

Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 5) PERFORMANCE EVALUATION
Investment performance is to be continually monitored and evaluated by the City Manager or his designee. The City’s primary portfolio performance will be measured against a total return index with securities with similar attributes and similar average maturity, e.g., the Merrill Lynch 1-5 Year U.S. Treasury Index.

City of Lake Elsinore
Investment Policy
June 24, 2025
3 6) DELEGATION OF AUTHORITY
In accordance with the City Council Policy of the City of Lake Elsinore and under authority granted by the City Council, the City Treasurer’s function and responsibility for investing the unexpended cash in the City Treasury has been delegated to the City Manager or his designee.

The responsibility for conducting the City’s investment program has been delegated to the City Manager or his designee, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Such procedures shall include explicit delegation of authority to persons responsible for all investment activities.

No person may engage in an investment transaction except as provided under the terms of the policy and the procedures established by the City Manager or his designee. Portfolio management and transactions may be delegated to an independent investment advisor registered with the SEC.
7) INVESTMENT PROCEDURES
The City Manager or his designee shall establish written investment procedures and a system of controls to regulate the operation of the investment program and the activities of subordinate officials consistent with this policy. The procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of the policy and the procedures established by the City Manager or his designee.
8) ETHICS AND CONFLICTS OF INTEREST
Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper executions of the investment program or impairs their ability to make impartial investment decisions. Additionally, the City Officials are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC). 9) SAFEKEEPING AND CUSTODY
To protect against fraud or embezzlement of losses caused by collapse of an individual securities dealer, all deliverable securities owned by the City shall be held in safekeeping by a third-party bank / trust department.

All deliverable security transactions entered by the City of Lake Elsinore shall be conducted on delivery-versus-payment (DVP) basis. All deliverable securities purchased or acquired shall be delivered to the City of Lake Elsinore by book entry, physical delivery, or by third party custodial agreement as required by CGC 53601.

Securities held custody of the City shall be independently audited on an annual basis to verify investment holdings. All exceptions to this safekeeping policy must be approved by the City Manager or his designee in written form and included in monthly reporting to the City Council.

City of Lake Elsinore
Investment Policy
June 24, 2025
4 10) DIVERSIFICATION
The City of Lake Elsinore will diversify its investments by security type and institution. It is the policy of the City of Lake Elsinore to diversify its investment portfolio. Assets shall be diversified to eliminate the risk of loss resulting from over concentration of assets in a specific maturity, a specific issuer, or a specific class of securities. Diversification strategies shall be determined and revised periodically. In establishing specific diversification strategies, the following general policies and constraints shall apply:
a) Maturities selected shall provide for stability of income and liquidity b) Disbursement of payroll dates shall be covered through maturity investments and marketable securities
11) INTERNAL CONTROL
The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts by the Finance Staff on a monthly basis.

An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with policies and procedures and reported to City Council.
12) REPORTING
City Manager or his designee shall submit to City Council, and the City Treasurer a monthly report of investment transactions. The report shall also include a detailed security report. If all funds are placed in LAIF, FDIC- insured accounts, and/or in a county investment pool, the foregoing report elements may be replaced by copies of the latest statements from such institutions. The City Manager or his designee shall maintain a complete and timely record of all investment transactions.

Additionally, every quarter the City Manager or his designee shall render to the City Council and the City Treasurer a quarterly investment report, which shall include, at a minimum, the following information for each individual investment:
a) Type of investment instrument (i.e., Treasury Bill, medium term note) b) Issuer name (i.e., General Electric Credit Corporation) c) Purchase date (trade and settlement date)
d) Maturity date
e) Par value
f) Purchase price
g) Current market value and the source of the valuation h) Overall portfolio yield based on cost
The quarterly report also shall (a) state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance; (b) include a description of any of the City's funds, investments, or programs that are under the management of contracted parties, including lending programs; and (c) include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

City of Lake Elsinore
Investment Policy
June 24, 2025
5 13) AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
If the City plans to initiate investment transactions on its own behalf, excluding investments made directly with an issuer, the City Manager or his designee will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness with at least five years of operation. The City Manager or his designee will review the financial condition and registrations of qualified bidders annually.

All financial institutions and broker/dealers who desire to become qualified for investment transactions must supply the following as appropriate:
a) Audited financial statements demonstrating compliance with state and federal capital adequacy guidelines to be submitted annually
b) Proof of Financial Industry Regulatory Authority (FINRA) certification (not applicable to Certificate of Deposit counterparties)
c) Proof of state registration
d) Complete broker/dealer questionnaire (not applicable to Certificate of Deposit counterparties)
e) Certification of having read and understood and agreeing to comply with the City’s Investment Policy prior to commencing trading
f) Evidence of adequate insurance coverage
An annual review of the financial condition and registrations of qualified bidders will be conducted by the City Manager or his designee.

The City may also use broker/dealers approved and evaluated by a SEC registered investment advisor acting in a fiduciary capacity for the City.

The City shall use a competitive process, whenever practical to obtain at least 3 competing bids from different broker/dealers for every purchase or sale of a security. 14) AUTHORIZED INVESTMENTS
Investment of City funds is governed by the California Government Code sections 53601 et seq. Unless otherwise specified in this section, no investment shall be made in any security, other than a security underlying a repurchase agreement as authorized by this section, that at the time of the investment has a term remaining to maturity in excess of five years. The City Manager or his designee is authorized to purchase the following investment instruments:

A. U.S. Treasury, notes, bonds, bills, or other certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

B. Federal agency or United States government-sponsored enterprise obligations, participation, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises. No more than 40% of the City's portfolio may be invested City of Lake Elsinore
Investment Policy
June 24, 2025
6 in any one federal agency.

C. Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state or any local agency or by a department, board, agency or authority of the state or any local agency, provided that such obligations are rated in one of the top three rating categories by a NRSRO and are general obligation bonds or essential service bonds secured with revenue from a water, sewer, power, or electric system.

D. Registered treasury notes or bonds of any of the other 49 United States in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 United States, in addition to California, provided that such obligations are rated in one of the top three rating categories by a NRSRO and are general obligation bonds or essential service bonds secured with revenue from a water, sewer, power, or electric system.

E. Repurchase Agreements to be used solely as short-term investments not to exceed 30 days. The City may enter into repurchase agreements with primary government securities dealers rated in a rating category of "A" or its equivalent or better by two nationally recognized rating services. Counterparties should also have (i) a short-term credit rating in the highest category by a nationally recognized statistical rating organization (NRSRO); (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City's custodian bank versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102% of the total dollar value of the money invested by the City for the term of the investment. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on an on- going basis according to market conditions. Market value must also be calculated each time there is a substitution of collateral. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day.

The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to repurchase agreement. The City shall have properly executed a Master Repurchase Agreement with each counter party with which it enters into repurchase agreements.

F. Bills of exchange or time drafts drawn on and accepted by a commercial bank City of Lake Elsinore
Investment Policy
June 24, 2025
7 and brokered to investors in the secondary market, otherwise known as bankers' acceptances. Purchases of bankers' acceptances may not exceed 180 days' maturity, or 40% of the City's surplus money that may be invested. However, no more than 30% of the City's surplus funds may be invested in the bankers' acceptances of any one commercial bank. Eligible bankers' acceptances are restricted to issuing financial institutions with short-term paper rated in the highest category by one NRSRO.

G. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2) below:

1. The entity meets the following criteria: (a) is organized and operating in the United States as a general corporation. (b) Has total assets in excess of five hundred million dollars ($500,000,000). (c) Has debt other than commercial paper, if any, that is rated in a rating category of "A" or its equivalent or higher by a NRSRO.

2. The entity meets the following criteria: (a) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (b) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (c) Has commercial paper that is rated "A-1" or higher, or the equivalent, by a NRSRO.

The City may invest no more than 25% of its portfolio in eligible commercial paper with a maximum maturity of 270 days.

H. Medium term notes with a maximum remaining maturity of five years or less issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by a NRSRO and shall not be on credit watch for a potential downgrade by a NRSRO. Purchases of medium-term notes may not exceed 30% of the City's portfolio.

I. FDIC-insured or fully collateralized bank deposits, including, but not limited to, demand deposit accounts, savings accounts, market rate accounts, and time deposits. To be eligible to receive City deposits, the financial must be located in California and have received a minimum overall satisfactory rating under the Community Redevelopment Act, for meeting the credit needs of California Communities in its most recent evaluation. The amount on deposit in any financial institution shall not exceed the shareholder’s equity. Bank deposits are required to be collateralized as specified under Government Code Section 53630 et. Seq. The City Manager or his designee, at his/her discretion, may waive the collateralization requirements for any portion that is covered by federal deposit insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. The maturity of time certificate of deposits (TCDs) may not exceed 1 year. There is no limit on the City of Lake Elsinore
Investment Policy
June 24, 2025
8 percentage of the portfolio that may be invested in bank deposits. However, a maximum of 20 percent of the portfolio may be invested in TCDs.

J. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or statelicensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of “A” (long-term) or “A-1” (short-term) or their equivalents or better by a NRSRO. Purchases of negotiable certificates of deposit may not exceed 30% of the portfolio.

K. State of California's Local Agency Investment Fund (LAIF). Investment in LAIF may not exceed $75 million. The LAIF portfolio should be reviewed periodically.

L. California Asset Management Program (CAMP).

M. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et seq.). The purchase price of shares shall not exceed 20 percent of the investment portfolio of the City. To be eligible for investment pursuant to this subdivision these companies shall either:

1. Attain the highest-ranking letter or numerical rating provided by not less than two of the three largest NRSRO or

2. Have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000.

N. Insured savings account or money market account. To be eligible to receive local agency deposits, a financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation.

O. Supra-nationals-specifically the International Bank for Reconstruction and Development, International Finance Corporation, and Inter-American Development Bank.

1. Purchases restricted to debt denominated in U.S. dollars.

2. Supra-nationals eligible for investment under this subsection shall be rated in a rating category of “AA” or its equivalent or better by a NRSRO.

3. Purchases of supra-nationals may not exceed 30% of the City’s portfolio.

P. Asset-Backed Securities (ABS). For securities eligible for investment under this City of Lake Elsinore
Investment Policy
June 24, 2025
9 subdivision not issued or guaranteed by an agency or issuer identified in subdivisions (A) or (B) above, the following limitations apply:

1. ABS eligible for investment under this subsection must be rated in a rating category of “AA” or its equivalent or better by a NRSRO with a maximum remaining maturity of 5 years or less.

2. Purchase of ABS may not exceed 20% of the City’s portfolio.

Q. Placement Service Deposits (PSD) where funds may be placed with a bank that uses a private sector entity that assists in the placement of deposit with eligible financial institutions located in the United States (CGC § 53601.8). The full amount of the principal and the interest that may be accrued during the maximum term of each PSD shall at all times be insured by federal deposit insurance.

Purchase of PSD may not exceed 30% of the City’s portfolio. The maximum investment maturity will be restricted to five years.

Credit criteria and sectors and issuers percentages for investments listed in this section will be determined at the time the security is purchased. A decline in the overall investment balances that causes the percent to any investment above its maximum policy limit will not be considered out of compliance. The City may from time to time be invested in a security whose rating is downgraded. In the event a rating drops below the minimum allowed rating category for that given investment type, the City Manager or his designee shall notify the City Treasurer, and City Council and recommend a plan of action. Notwithstanding anything herein to the contrary, with the exception of the U.S. Treasury, federal agency institutions, and government sponsored enterprises no more than 5% of the City’s portfolio may be invested in securities issued by any one corporate, financial, or municipal issuer.
15) PROHIBITED INVESTMENTS
Any security type or structure not specifically approved by this policy is hereby specifically prohibited. Security types which are thereby prohibited include, but are not limited to, inverse floaters, derivatives, range notes, interest only strips that are derived from a pool of mortgages, or in any investment that could result in zero interest accrual if held to maturity, except as authorized by Code Section 53601.6.
16) LEGISLATIVE CHANGES
Any State of California legislative action that further restricts allowable maturities, investment type or percentage allocations will be deemed to be incorporated into the City of Lake Elsinore’s investment policy and will supersede any and all applicable language. 17) INTEREST EARNINGS
All moneys earned and collected from investments authorized in this policy shall be allocated quarterly to various fund accounts based on the cash balance in each fund as a percentage of the entire pooled portfolio.

City of Lake Elsinore
Investment Policy
June 24, 2025
10 18) POLICY REVIEW
The City of Lake Elsinore’s investment policy shall be adopted by the City Council on an annual basis. This investment policy shall be reviewed at least annually to insure its consistency with the overall objectives of preservation of principal, liquidity and yield, and its relevance to current law and financial and economic trends. Any amendments to the policy shall be forwarded to the City Council for approval.

City of Lake Elsinore
Investment Policy
June 24, 2025
11 GLOSSARY
Asset-Backed Securities (ABS): Bonds created from various types of consumer debt. The primary types of ABS are mortgages, home equity loans, auto loans, leases, credit card receivables and student loans.

Bankers Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.

Bond Proceeds: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

Broker: Someone who brings buyers and sellers together and is compensated for his/her service.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a certificate.

Large- denomination CD’s are typically negotiable.

Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security.

Commercial Paper: An unsecured short-term promissory note issued by corporations, with maturities ranging from 2 to 270 days.

Annual Comprehensive Financial Report (ACFR): The official annual report for the City of Lake Elsinore. It includes five combine statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

Dealer: Someone who acts as a principal in all transactions, including buying and selling from his/her own account.

Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Derivative: Securities that are based on, or derived from, some underlying asset, reference date, or index.

Diversification: Dividing investment funds among a variety of securities offering independent returns.

Federal Deposit Insurance Corporation (FDIC): Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.

Interest Rate: The annual yield earned on an investment, expressed as a percentage.

City of Lake Elsinore
Investment Policy
June 24, 2025
12 Issuer: Any corporation, government unit or financial institution which borrows money through the sale of securities.

Liquidity: Refers to the ability to rapidly convert an investment into cash.

Local Agency Investment Fund (LAIF): A special fund in the State Treasury which local agencies may use to deposit funds for investment. All interest is distributed to those agencies participating on a proportionate share determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly via direct deposit to the LAIF account. The State keeps an amount for reasonable costs of making the investments, not to exceed one-quarter of one per cent of the earnings.

Local Government Investment Pool (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the local government that organized the pool for investment and reinvestment.

Market Risk: Defined as market value fluctuations due to overall changes in the general level of interest rates. Adverse fluctuation possibilities shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis, and eliminating the need to sell securities for the sole purpose of short- term speculation mitigates market risk.

Market Value: The price at which a security is trading and could presumably be purchased or sold.

Maturity: The date the principal or stated value of an investment becomes due and payable.

Medium-Term Notes: Instruments issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Member: Refers to a governmental entity which is a signatory to the Joint Powers Agreement establishing the California Joint Powers Insurance Authority.

Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

Negotiable: Term used to designate a security, the title to which is transferable by delivery.

Portfolio: Collection of securities held by an investor.

Principal: Describes the original cost of a security. It represents the amount of capital or money which the investor pays for the investment.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return.

City of Lake Elsinore
Investment Policy
June 24, 2025
13 Repurchase Agreement (Repo): Contractual arrangements between a financial institution or dealer and an investor. The investor puts up their funds for a certain number of days at a stated yield. In return, they take title to a given block of securities as collateral. At maturity, the securities are repurchased, and the funds are repaid with interest.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.

Supra-nationals: Debt of an international or multilateral financial agency.

Treasury Bills: United States Treasury Bills which are short term, direct obligations of the United States Government issued with original maturities of 13 weeks, 26 weeks, and 52 weeks; sold in minimum amounts of $10,000 in multiples of $5,000 above the minimum. Issued in book entry form only, T-bills are sold on a discount basis.

Treasury Notes: Medium-term coupon- bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to ten years.

United States Government Agencies: Instruments issued by various United States Government Agencies most of which are secured only by the credit worthiness of the particular agency.

Yield: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Placement Service Deposits (PSD): A deposit is made with a California bank that uses a third-party service to divide a large dollar deposit into multiple pieces, each under the FDIC insurance limit. Each are then placed in banks across the nation in the third-party service’s network to ensure the full amount is covered by FDIC insurance.

City of Lake Elsinore
Investment Policy
June 24, 2025
14 INVESTMENT PROCEDURES

INTERNAL CONTROL GUIDELINES

OBJECTIVES OF INTERNAL CONTROL
Internal control is the plan of organization and all the related systems established by the management's objective of ensuring, as far as practicable:
• The orderly and efficient conduct of its business, including adherence to management policies.
• The safeguarding of assets.
• The prevention or detection of errors and fraud.
• The accuracy and completeness of the accounting records. • The timely preparation of reliable financial information.

LIMITATIONS OF INTERNAL CONTROL
No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:
• Management's usual requirement that a control be cost-effective. • The direction of most controls at recurring, rather than unusual, types of transactions. • Human error due to misunderstanding, carelessness, fatigue, or distraction. • Potential for collusion that circumvents controls dependent on the segregation of functions.
• Potential for a person responsible for exercising control abusing that responsibility; a responsible staff member could be in a position to override controls which management has set up.

City of Lake Elsinore
Investment Policy
June 24, 2025
15 ELEMENTS OF INTERNAL CONTROL
Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are:

1. ORGANIZATION
Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood.

2. PERSONNEL
Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies together with the quality and quantity of supervision are thus important.

3. SEGREGATION OF FUNCTIONS
Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or fraud in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or fraud. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations.

4. AUTHORIZATION
An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated. The individual or group authorizing a specific transaction or granting general authority for transactions should be in a position commensurate with the nature and significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully.

5. CONTROLS OVER AN ACCOUNTING SYSTEM
Controls over an accounting system include the procedures, both manual and computerized, carried out independently to ascertain that transactions are complete, valid, authorized, and properly recorded.

City of Lake Elsinore
Investment Policy
June 24, 2025
16 INVESTMENT PROCEDURES

CASH CONTROLS

PROCEDURES PERFORMED BY INTERNAL AND EXTERNAL AUDITORS WITH RESPECT

TO CASH RECEIPTS
A. City procedures and controls are reviewed. Some of the system strengths are:

1. Receipts are controlled upon receipt by proper registration devices.

2. Receipts are reconciled daily.

3. Amounts are deposited intact.

4. Bank reconciliations are reviewed.

5. Prompt posting of cash receipt entries in books.

6. Proper approval required for write-offs of customer accounts.

7. Checks are restrictively endorsed upon receipt or when run through cash register.

8. Adequate physical security over cash.

9. Individuals that handle cash do not post to customer account records or process billing statements.

10. Adequate supervision of Finance Department operations.

B. Significant revenues are confirmed directly with payer and compared with City books to make sure amounts are recorded properly.

C. Cash balances are substantiated by confirming all account balances recorded in books.

Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements.

City of Lake Elsinore
Investment Policy
June 24, 2025
17 Function Responsibility

1. Formal Investment Policy should be:
* Prepared By: Senior Accountant or Finance Manager
* Reviewed and Approved By: City Manager or his designee * Approved By: City Council

2. Develop Investment Strategy: Registered Investment Advisor

3. Investment Strategy should be approved
by:

City Manager or his designee

4. Execution of investment transactions: Registered Investment Advisor

5. Timely recording of investment
transactions:

Accountant, Senior Accountant or
Finance Manager (but reviewed by City
Manager or his designee)
Recording of investment transactions in
the City's records:

Accountant, Senior Accountant or
Finance Manager (but reviewed by City
Manager or his designee)
Recording of investment transactions in
the accounting records:

Accountant or Senior Accountant or
Finance Manager

6. Verification of investment, i.e., match
broker confirmation to City's records:

Senior Accountant or Finance Manager
(but reviewed by City Manager or his
designee)

7. Safeguarding of Assets and Records:

Reconciliation of City's records to the
accounting records:

Senior Accountant or Finance Manager
Reconciliation of City's records to bank
statements and safekeeping records:

Senior Accountant or Finance Manager
(but reviewed by City Manager or his
designee)

8. Annual review of (a) financial institution's
financial condition, (b) safety, liquidity,
and potential yields of investment
it t
City Manager or his designee

9. No less than an annual review of
investment portfolio as prepared by City
Manager or his designee:

Independent Auditors
April 09,2025
Memorandum
To: Edwin Castro, City Treasurer
Nancy Lassey, Finance Administrator
Andrew Zavala, Senior Accountant
City of Lake Elsinore
From: Monique Spyke, Managing Director
Robert Montoya, Institutional Relationship Manager
PFM Asset Management
Re: 2025 Investment Policy Review
At your request, we reviewed the City of Lake Elsinore (the “City”) Investment Policy (the “Policy”) as part of the City’s annual review process. The current Policy is comprehensive and is in compliance with the current California Government Code (“Code”) statutes regulating the investment of public funds.

Although no changes are required at this time, there is one Code change effective January 1, 2025, that will extend the amount permitted in Placement Service Deposits under Section 53601(o) from 30% to 50% until 2031. We are not recommending that you incorporate the 50% limit into the Policy unless you would like to change the current policy and replace the 30% Placement Service Deposits limit.

Please let us know if you have any questions or if you would like to discuss further.

PFM Asset Management serves clients in the public sector and is a division of U.S. Bancorp Asset Management, Inc., which is the legal entity providing investment advisory services. U.S. Bancorp Asset Management, Inc. is a registered investment adviser, a direct subsidiary of U.S. Bank N.A. and an indirect subsidiary of U.S. Bancorp. U.S.

Bank N.A. is not responsible for and does not guarantee the products, services, or performance of U.S. Bancorp Asset Management, Inc.

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE
For Institutional Investor or Investment Professional Use Only – This material is not for inspection by, distribution to, or quotation to the general public
8) Annexation No. 24 Into Community Facilities District No. 2015-2 (Maintenance Services) for PM 38195 & 38281 (Evergreen)
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 24) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Annexation No. 24 Into Community Facilities District No. 2015-2 (Maintenance Services) for PM 38195 & 38281 (Evergreen) Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

Background
On September 22, 2015, the City Council approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore (the "CFD No. 2015-2" or "District") to levy special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Cambern and Central North, LLC, an Arizona limited liability company, and Evergreen-Cambern and Central South Land, LLC, an Arizona limited liability company (the "Owners"), own 8.34 gross acres of a vacant commercial lot within the City. The Owners have requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with maintaining public improvements. The improvements proposed to be maintained include items such as landscaping, lighting, street maintenance, and drainage.

Discussion
The landowners have advised the City that the area described in Exhibit "B" of the Resolution of Intention is to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes are to be levied as described in Exhibit "C”.

CFD 2015-2 (Maintenance Services) Annexation 24

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The original area proposed within Annexation No. 24 will encompass a grocery store, several quick-serve restaurants, a gas station with a convenience store, and a separate drive-through car wash with 369 parking spaces. The territory proposed to be annexed into CFD No. 2015-2 will be included in Tax Zone 27. The property is located at the northeast intersection of Cambern Avenue and Central Avenue. The proposed maximum tax rate is $1,594 per acre per year for Special Tax A. The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. Refer to Exhibit 3 for a maintenance exhibit that illustrates which services are being maintained by the CFD.

The Owners have agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings under the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

The next step in annexing the property to CFD No. 2015-2 is to publish a notification of the proposed district, along with the "Resolution of Intention" and a Boundary Map of the proposed Annexation area. A public hearing on the matter will take place on August 12, 2025, at which time the Council will formally consider the approval of Annexation No. 24.

Fiscal Impact
On March 1 of each year, every taxable property for which a building permit has been issued will be subject to special taxes in the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, before the buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be on undeveloped property within the Tax Zones. Once developed, the Special Tax A for Tax Zone 27 will generate $11,297 for maintenance services.

Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A-G
Attachment 3 - Maintenance Exhibit
Administrative Services
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COMMUNITY FACILITIES DISTRICT NO. 2015-2
ANNEXATION NO. 24

PROJECT MAP
RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 24) AND AUTHORIZING THE LEVY OF A

SPECIAL TAXES THEREIN
Whereas, on September 22, 2015, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) approved Resolution No. 2015-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California, defined the "CFD No. 2015-2", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and
Whereas, the City Council has received a written instrument from the landowner in the CFD No. 2015-2 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2015-2 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and Whereas, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2015-2, that a rate and method of apportionment of the special tax to be levied therein be established;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2015-2 (Maintenance Services)”.

Section 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2015-2 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California,” as recorded on August 19, 2015 in Book 78 of Maps of Assessment and Community Facilities District,

Page 74 ends

The territory proposed to be annexed to the CFD No. 2015-2 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on CC Res. No. 2025-_____

Page 2 of 3 ends

the map thereof entitled "Annexation Map No. 24, Community Facilities District No. 2015-2 (Maintenance Services), City of Lake Elsinore, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

Section 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2015-2 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2015-2, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2015-2. The Services authorized to be financed by CFD No. 2015-2 are in addition to those currently provided in the territory of CFD No. 2015-2 and do not supplant services already available within that territory.

Section 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2015-2, will be levied annually within CFD No. 2015-2. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2015-2. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Section 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Tuesday, August 12, 2025, in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2015-2.

Section 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2015-2.

The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

Section 9. Mailing Ballots. In anticipation of its action on Tuesday, August 12, 2025 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2015-2 a ballot, the full text of which shall be as set forth in Exhibit G hereto, and shall be included in the ballot pamphlet mailed to each qualified elector. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

Section 10. Effective Date. This Resolution shall take effect immediately upon its adoption.

Section 11. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

CC Res. No. 2025-_____

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Passed And Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June 2025.
_____________________________
Brian Tisdale
Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2025-___ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 24, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Candice Alvarez, MMC
City Clerk

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Lake Elsinore Community Facilities District No. 2015-2 (Maintenance Services) (the “CFD No. 2015- 2”) Annexation No. 24 is currently comprised of five (5) parcels, located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

TAX ZONE 27
APN Owners Name
377-020-030 Cambern & Central North
377-020-031 Cambern & Central North
377-020-032 Cambern & Central North
377-020-034 Evergreen-Cambern & Central South
Land
377-020-035 Evergreen-Cambern & Central South
Land

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015‐2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways,streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2015‐2; as well as local roads within residential subdivisions located within CFD No. 2015‐2; and any portions adjacent to the properties within CFD No. 2015‐2; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services shall be limited to those provided within the boundaries of CFD No. 2015‐2 or for the benefit of the properties within the boundaries of CFD No. 2015‐2, asthe boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015‐2 only to the extent that they are in addition to those provided in the territory of CFD No. 2015‐2 before CFD No. 2015‐2 was created.

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT
City of Lake Elsinore 1
Community Facilities District No. 2015-2 (Maintenance Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

OF THE CITY OF LAKE ELSINORE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2015-2 (Maintenance Services) (the “CFD No. 2015-2” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2015, in an amount determined by the City Council of the City of Lake Elsinore, acting ex officio as the legislative body of CFD No. 2015-2, by applying the rate and method of apportionment set forth below.

All of the real property in CFD No. 2015-2, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2015-2 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 to the City, CFD No. 2015-2, or any designee thereof associated with fulfilling the CFD No. 2015-2 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2015-2 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2015-2 for any other administrative purposes of CFD No. 2015-2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of Lake Elsinore, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.

City of Lake Elsinore 2
Community Facilities District No. 2015-2 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2015-2” means the City of Lake Elsinore Community Facilities District No. 2015-2 (Maintenance Services).
“City” has the meaning set forth in the preamble.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2015-2.

City of Lake Elsinore 3
Community Facilities District No. 2015-2 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2015-2.
“Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2015-2 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2015-2 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.

City of Lake Elsinore 4
Community Facilities District No. 2015-2 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2015-2, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2015-2 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015-2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single-Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi-family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s City of Lake Elsinore 5
Community Facilities District No. 2015-2 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2015-2016 within Tax Zone 1 is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 LLA-2014-2743 Non-Residential Property Acre $121
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property 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 Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2015-2016 within Tax Zone 1 is identified in Table 2 below:

City of Lake Elsinore 6
Community Facilities District No. 2015-2 (Maintenance Services) TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 LLA-2014-2743 Non-Residential Property Acre $121
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2015-2016 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 LLA-2014-2743 Acre $121
On each July 1, commencing on July 1, 2016 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 1 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2015- 2016 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 LLA-2014-2743 Non-Residential Property Acre $0
City of Lake Elsinore 7
Community Facilities District No. 2015-2 (Maintenance Services) (ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property 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 Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

The Maximum Special Tax B (Contingent) for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 LLA-2014-2743 Non-Residential Property Acre $0
On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2015-2, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.

The Maximum Special Tax B (Contingent) for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 6 below:

City of Lake Elsinore 8
Community Facilities District No. 2015-2 (Maintenance Services) TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 LLA-2014-2743 Acre $0
On each July 1, commencing on July 1, 2016 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with Fiscal Year 2015-2016 and for each following Fiscal Year, the Council shall determine the Contingent Special Tax B Requirement and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax B (Contingent) equals the Contingent Special Tax B Requirement. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
City of Lake Elsinore 9
Community Facilities District No. 2015-2 (Maintenance Services) Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2015-2 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A.

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

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2015-2, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; or (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator.

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2015-2 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2015-2 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

City of Lake Elsinore 10
Community Facilities District No. 2015-2 (Maintenance Services)

APPENDIX A

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A Services- The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2025-26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2015-2.

TAX ZONE 27
PM 38195 & 38281
Item Description Estimated Cost
1 Landscape $1,583
2 Lighting $1,090
3 Streets $5,909
4 Drainage $335
5 Reserves $892
6 Admin $1,488
Total $11,297
Special Tax B Contingent Services – There are no anticipated costs for Special Tax B for Tax Zone 27.

TAX ZONE 27
FY 2025-26 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Non-Residential Property Acre $1,594 $0
TAX ZONE 27
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $1,594 $0
City of Lake Elsinore 11
Community Facilities District No. 2015-2 (Maintenance Services)

TAX ZONE SUMMARY
Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B Subdivider
Original 1 LLA-2014-2743 2015-16 $121 / Acre $0 / Acre Tractor Supply 1 2 36682 2016-17 $354 / RU $102 / RU Pardee Homes
2 3 PM 29996 2017-18 $951 / Acre $165 / Acre Pasadena Industrial Park, LLC 3 4 PM 36551 2017-18 $2,671 / Acre $201 / Acre ARI Chaney Street, LLC 4 5 TR 32996 2017-18 $378 / RU $321 / RU LE Cottage Lane, LLC 5 6 365-030-001 2018-19 $1,004/ Acre $0 / Acre Lake Elsinore CCR, LLC 6 7 TR 33267 2019-20 $350 / RU $56 / RU Pardee Homes
7 8 PM 37284 2019-20 $1,953 / Acre $0 / Acre Central Plaza 8 9 TR 37305 2019-20 $951 / RU $384 / RU Nichols Rd Partners, LLC 8 10 TR 37305; Lot 169 2019-20 $2,600 / Acre $0 / Acre Nichols Rd Partners, LLC 9 11 TR 32129 & 30698 2020-21 $541 / RU $69 / RU
Donald S. Clurman &
Three Strands Properties, LLC &
Spectrum Communities, LLC
10 12 TR 33370 2021-22 $294 / RU $30 / RU JLJ. LLC
11 13 PM 37534 2021-22 $1,113 / Acre $0 / Acre SRZ Yuma, LLC 12 14 TR 33725 2021-22 $749 / RU $87 / RU KB Home California Management Services
12 15 TR 25475 2021-22 $594 / RU $62 / RU KB Home California Management Services
13 16 LLA 2019-007 2021-22 $407 / Acre $0 / Acre Wal-Mart Real Estate Business Trust
14 17 TR 38008 2021-22 $366 / RU $123 / RU Tri Pointe Homes IE-SD, Inc. 15 18 TPM 37751 2021-22 $2,188 / Acre $2,540 / Acre Boos-Up Lake Elsinore 16 19 PM 37710 2021-22 $1,034 / Acre $0 / Acre Pennington Industrial, LLC 17 20 TR 37280 2022-23 $323 / RU $5 / RU Lake Elsinore Lakeshore, LLC and Erin Crowder
18 21 TR 38116 2022-23 $387 / RU $82 / RU Tri Pointe Homes IE-SD, Inc. 19 22 TR 38378 2023-24 $358 / RU $7 / RU Vista Emerald, LLC 20 23 TR 28214-9 2023-24 $647 / RU $19 / RU Pulte Home Co. 21 24 BLD-2023-0026B 2023-24 $739 / Acre $288 / Acre Lake Street Properties, LP 22 25 TPM 37710 2024-25 $5,569 / Acre $755 / Acre RA & B Development, LLC 23 26 TR 34249 2025-26 $1,027 / RU $216 / RU Tri-Pointe Homes 24 27 PM 38195 & PM
38281 2025-26 $1,594 / Acre $0 / Acre
Cambern and Central North, LLC,
& Evergreen-Cambern and
Central South Land, LLC
25 28 TTM 33725 2025-26 $821 / RU $221 / RU KB Home California 29 TTM 25475 2025-26 $604 / RU $157 / RU Management Services 26 30 377-100-003,
377-380-003 2025-26 $5,449 / Acre $2,227 / Acre Cambern Avenue Development Holding Company, LLC City of Lake Elsinore 12
Community Facilities District No. 2015-2 (Maintenance Services)

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2016 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

City of Lake Elsinore 13
Community Facilities District No. 2015-2 (Maintenance Services)

APPENDIX B

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2015-2, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2015-2; as well as local roads within residential subdivisions located within CFD No. 2015-2; and any portions adjacent to the properties within CFD No. 2015-2; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services shall be limited to those provided within the boundaries of CFD No. 2015-2 or for the benefit of the properties within the boundaries of CFD No. 2015-2, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2015-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2015-2 before CFD No. 2015-2 was created.

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

EXHIBIT D

CAMBERN AVE

CONARD AVE

THIRD ST
ALLAN
ST
74 }þ|·
377-020-035
377-020-031
377-020-032
377-020-034 377-020-030
ANNEXATION MAP NO. 24
COMMUNITY FACILITIES DISTRICT NO. 2015-2
(MAINTENANCE SERVICES)

CITY OF LAKE ELSINORE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2(MAINTENANCE SERVICES), OF THE CITY OF LAKE ELSINORE, COUNTYOF RIVERSIDE, STATE OF CALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONAUGUST 13, 2015 IN BOOK 78 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 73 ANDAS INSTRUMENT NO. 2015-0361493 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF RIVERSIDE,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICTNO. 2015-2 (MAINTENANCE SERVICES), CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVEDBY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AT A REGULARMEETING THEREOF, HELD ON ______ DAY OF ______, 20____, BY RESOLUTION NO. _______________ ___________________________________CITY CLERKCITY OF LAKE ELSINORE FILED IN THE OFFICE OF THE CITY CLERK, CITY OF LAKEELSINORE THIS ______ DAY OF ______, 20___.___________________________________CITY CLERKCITY OF LAKE ELSINORE RECORDED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITYFACILITIES DISTRICTS IN THE OFFICE OF THE COUNTYRECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY
- THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2024-25. ^_
CFD 2015-2
TAX ZONE 27
74}|·þ
74}|·þ
15 §¨¦
215
§¨¦

LAKE ELSINORE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
27 TAX ZONE
LEGEND

PARCEL LINEANNEXATION AREA BOUNDARYCITY BOUNDARY
27 EXHIBIT D

EXHIBIT E

PETITION

PETITION TO THE CITY COUNCIL OF THE CITY OF

REQUESTING COMMUNITY
FACILITIES DISTRICT NO. (MAINTENANCE SERVICES) OF PROPERTY

WITHIN THE CITY OF AND A WAIVER WITH

RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND

CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY

THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of Lake Elsinore, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2015-2 (Maintenance Services) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed annexation into Community Facilities District No. 2015-2 The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on annexing territory into Community Facilities District No. 2015-2 or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2015-2 of the portion of the incorporated Docusign Envelope ID: 4C3C1713-6F44-4758-8A5D-64A1B12E9E2A area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure.

IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___. [NAME OF LANDOWNER]
By: _____________________________________
Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:
__________________________________________
__________________________________________
__________________________________________

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of Lake Elsinore
PHOENIX, AZ 85016 2390 E CAMELBACK RD, STE 410
PARCEL MAP NO 38195
Cambern & Central North, L.L.C., an Arizona limited liability company By: Evergreen Development Company-2021, L.L.C., an Arizona limited liability company
Its: Managing Member
By: Evergreen Devco, Inc., a California corporation
Its: Manager
By: ___________________________________________
Name: ________________________________________
Title:__________________________________________
Docusign Envelope ID: 4C3C1713-6F44-4758-8A5D-64A1B12E9E2A Dana Dragon
4/24/2025
Principal

PETITION TO THE CITY COUNCIL OF THE CITY OF

REQUESTING COMMUNITY
FACILITIES DISTRICT NO. (MAINTENANCE SERVICES) OF PROPERTY

WITHIN THE CITY OF AND A WAIVER WITH

RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND

CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY

THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___. [NAME OF LANDOWNER]
By: _____________________________________
Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:
__________________________________________
__________________________________________
__________________________________________

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of Lake Elsinore
PHOENIX, AZ 85016 2390 E CAMELBACK RD, STE 410
PARCEL MAP NO 38281
Evergreen-Cambern & Central South Land, L.L.C., an Arizona limited liability company
By: Evergreen Development Company-2021, L.L.C., an Arizona limited liability company
Its: Managing Member
By: Evergreen Devco, Inc., a California corporation
Its: Manager
Docusign Envelope ID: 4C3C1713-6F44-4758-8A5D-64A1B12E9E2A Dana Dragon
4/24/2025
Principal

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 24)
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on June 24, 2025 adopted its Resolution No. 2025-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2015-2 (Maintenance Services) (the "CFD No. 2015-2"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2015-2 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, August 12, 2025 in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2015-2. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the August 12, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Lake Elsinore (www.lakeelsinore.org), and outside of City Hall at 130 S. Main Street, Lake Elsinore, CA 92530. A copy of the Agenda will be made available upon request to the Lake Elsinore City Clerk's office at 951-674-3124; Ext. 262 DATED: ____________, 20___ _________________________________________ City Clerk of the City of Lake Elsinore

EXHIBIT G
BALLOT

SPECIAL TAX ELECTION

CITY OF LAKE ELSINORE

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 24
(August 12, 2025)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 24 of the Community Facilities District No. 2015-2 (Maintenance Services) (“CFD No. 2015-2”) of the City of Lake Elsinore:

Name of Landowner
Number of Acres
Owned Total Votes
Cambern and Central North, LLC, an Arizona
limited liability company 3.72 4
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2015-2, City of Lake Elsinore, County of Riverside, State of California. Please advise the City Clerk, at (951) 674-3124 x 261 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than July 29, 2025, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 12, 2025, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 12, 2025.

Very truly yours,
Candice Alvarez, MMC,
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

Cambern and Central North, LLC, an Arizona limited liability company
Attn: Dana Dragon
2390 E. Camelback Rd, Ste 410
Phoenix, AZ 85016
377-020-030, 377-020-031, 377-020-032

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 24
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use Category Maximum Special Tax A
Non-Residential Property $1,594
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for the Riverside-San BernardinoOntario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 24 of Community Facilities District No. 2015-2 (Maintenance Services) City of Lake Elsinore” including landscaping, lighting, streets and drainage for Special Tax A as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Lake Elsinore on June 24, 2025 (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected?
YES _________

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

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Dana Dragon
Managing Member
Signature
Print Name
Title

SPECIAL TAX ELECTION

CITY OF LAKE ELSINORE

Name of Landowner
Number of Acres
Owned Total Votes
Evergreen-Cambern and Central South Land,
LLC, an Arizona limited liability company 4.62 5
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 12, 2025, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 12, 2025.

Very truly yours,
Candice Alvarez, MMC,
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

Evergreen-Cambern & Central South Land, LLC, an Arizona limited liability company
Attn: Dana Dragon
2390 E. Camelback Rd, Ste 410
Phoenix, AZ 85016
377-020-034, 377-020-035

Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use Category Maximum Special Tax A
Non-Residential Property $1,594
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for the Riverside-San BernardinoOntario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 24 of Community Facilities District No. 2015-2 (Maintenance Services) City of Lake Elsinore” including landscaping, lighting, streets, and drainage for Special Tax A as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Lake Elsinore on June 24, 2025 (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected?
YES _________

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 ____________, 20__.

Dana Dragon
Managing Member
Signature
Print Name
Title

ARCHIT ECT
Ph 602.753.5222 www.upwardarchitects.com
SEA
L
11/30/ 25
DATE SIGNED: 02/12/25 CONSUL TANT
41,745.68 sf
703.54 sf
1,251.59 sf 1,300.3 7 sf 1,542.22 sf 881.24 sf 63.04 sf OWN
ER
1,085.79 sf
762.95 sf

PROJECT DESCRIPTION

STO PSTO P

STO P STO P

STO PSTO P
STO P
661.84 sf
416.65 sf
21,930.0 6 sf
STO P
STO P
Storm Drain 30" 151.8 LF 674.68 sf
430.55 sf
DATE: REVISI ONS
NO. DATE
ISSUE
Storm Drain 36" 675.36 LF 1 02/12/25 TENANT/OWNER COMMENTS Sidewalk 5,216 SF Streets 63,675 SF
Streetscape 4,558 SF THESE DRAWINGS ARE THE INSTRUMENTS OF SERVICE AND ARE THE

PROPERTY OF UPWARD ARCHITECTS, UPWARD ARCHITECTS EXPRESSLY RESERVES ITS COMMON LAW COPYRIGHT AND OTHER PROPERTY RIGHTS TO THESE PLANS. THESE PLANS ARE NOT TO BE REPRODUCED, CHANGED OR

COPIED IN ANY FORM OR MANNER WHATSOEVER, NOR ARE THEY TO BE ASSIGNED TO ANY THIRD PARTY, WITHOUT FIRST OBTAINING THE EXPRESSED WRITTEN PERMISSION AND CONSENT OF UPWARD ARCHITECTS. WRITTEN

DIMENSIONS ON THESE DRAWINGS SHALL HAVE PRECEDENCE OVER SCALED DIMENSIONS.

Street Light 4 Ea
c COPYRIGHT 2024, UPWARD ARCHITECTS SHEET
All concrete TITLE
Median 330 LF MAST SITE ER
PLAN
All installed and maintaine d by Developm ent

PROJECT NUMBER
24065.00 A- 111

MASTER SITE PLAN
SCALE: 1" = 40'-0"
1 9) Annexation No. 26 Into Community Facilities District No. 2015-2 (Maintenance Services) for APN Nos. 377-380-003 & 377-100-003 (Cambern Apartments) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 26) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Annexation No. 26 Into Community Facilities District No. 2015-2 (Maintenance Services) for APN Nos. 377-380-003 & 377-100-003 (Cambern Apartments)
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 26) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN.

Cambern Avenue Development Holding Company, LLC (the "Owner") owns 4.02 gross acres of a vacant residential lot within the City. The Owner has requested that the City assist them in annexing territory into CFD No. 2015-2 (Maintenance Services) to cover the costs associated with maintaining public improvements. The improvements proposed to be maintained include items such as lighting, street maintenance, drainage, parks, and graffiti abatement.

Discussion
The landowner has advised the City that the area described in Exhibit "B" of the Resolution of Intention is to be annexed into CFD No. 2015-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C”.

Annexation 26 Into CFD 2015-2

Page 2 of 2 ends

The original area proposed within Annexation No. 26 will encompass a 76-unit multi-family affordable housing apartment complex. The territory proposed to be annexed into CFD No. 2015- 2 will be included in Tax Zone 30. The property is located at the northwestern corner of Third Street and Cambern Avenue. The proposed maximum tax rate is $5,449 per acre per year for Special Tax A and $2,227 per acre per year for Special Tax B. The maximum annual tax rates are proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. Refer to Exhibit 3 for a maintenance exhibit that illustrates which services are being maintained by the CFD.

The Owner has agreed to the annexation into the CFD and submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings under the Mello-Roos Act of 1982, requesting the annexation of property to CFD No. 2015-2 (Maintenance Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A-G
Attachment 3 - Maintenance Exhibit
Administrative Services
THIRD
ST

CONARD AVE

CAMBERN
AVE
MELBY
D
R
I-15
I-15
SBON
I-15
NBOFF
§¨¦15
·|}þ74
^_

RAILR OAD

CANYON RD

SU MM ERHI LL DR CANYON DR
·|}þ74
§¨¦15

TRELLIS LN

LAKESHORE

DR MAIN ST

NICHOLS RD

FLINT ST
EL

TORO RD

THIRD ST

MILL ST

HAYGOOD WAY

RIVERSIDE DR

LA STRADA

MINTHORN ST
10TH ST

GREEN WALD
A VE

CANYON DR

WEBER WAY

DOWLING RD

WAS SONCAN YON RD

SMITH RD

C OLLIER AVE

PLUM ST
COMMUNITY FACILITIES DISTRICT NO. 2015-2
ANNEXATION NO. 26

PROJECT MAP
RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

OF THE CITY OF LAKE ELSINORE, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 26) AND AUTHORIZING THE LEVY OF A

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, ACTING EX OFFICIO AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, DETERMINE AND ORDER AS FOLLOWS:

Section 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2015-2 (Maintenance Services)”.

Page 74 ends

Page 2 of 3 ends

the map thereof entitled "Annexation Map No. 26, Community Facilities District No. 2015-2 (Maintenance Services), City of Lake Elsinore, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

Section 10. Effective Date. This Resolution shall take effect immediately upon its adoption.

Section 11. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

CC Res. No. 2025-_____

Page 3 of 3 ends

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June 2025.
_____________________________
Brian Tisdale
Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Candice Alvarez, MMC
City Clerk

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Lake Elsinore Community Facilities District No. 2015-2 (Maintenance Services) (the “CFD No. 2015- 2”) Annexation No. 26 is currently comprised of two (2) parcels, located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

TAX ZONE 30
APN Owners Name
377-380-003 Cambern Avenue Development
Holding Company, LLC
377-100-003 Cambern Avenue Development
Holding Company, LLC

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015‐2 (MAINTENANCE SERVICES)

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT
City of Lake Elsinore 1
Community Facilities District No. 2015-2 (Maintenance Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

All of the real property in CFD No. 2015-2, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015-2 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.

TABLE 1

MAXIMUM SPECIAL TAX A RATES

City of Lake Elsinore 6
Community Facilities District No. 2015-2 (Maintenance Services) TABLE 2

MAXIMUM SPECIAL TAX A RATES

TABLE 3

MAXIMUM SPECIAL TAX A RATES

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

The Maximum Special Tax B (Contingent) for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 5 below:

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

The Maximum Special Tax B (Contingent) for Fiscal Year 2015-2016 within the Tax Zone is identified in Table 6 below:

City of Lake Elsinore 8
Community Facilities District No. 2015-2 (Maintenance Services) TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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

City of Lake Elsinore 10
Community Facilities District No. 2015-2 (Maintenance Services)

APPENDIX A

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

TAX ZONE 30
APNs 377-100-003 and 377-380-003
Special Tax B Contingent Services –The estimate in the table below breaks down the costs of providing one year’s contingent services for Fiscal Year 2025-26. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2015-2 Tax Zone 30.

TAX ZONE 30 (CONTINGENT SERVICES)
APNs 377-100-003 and 377-380-003
Item Description Estimated Cost
1 Drainage $5,967
2 Reserves $597
3 Admin $1,045
Total $7,609
TAX ZONE 30
FY 2025-26 MAXIMUM SPECIAL TAX RATES

DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single Family Residential Property RU $244 $100
Multi-Family Residential Property Acre $5,449 $2,227
Non-Residential Property Acre $5,449 $2,227
TAX ZONE 30
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $5,449 $2,227
Item Description Estimated Cost
1 Lighting $1,363
2 Streets $4,866
3 Drainage $5,586
4 Parks $2,947
5 Graffiti $358
6 Reserves $1,081
7 Admin $2,418
Total $18,619
City of Lake Elsinore 11
Community Facilities District No. 2015-2 (Maintenance Services)

City of Lake Elsinore 13
Community Facilities District No. 2015-2 (Maintenance Services)

APPENDIX B

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES)

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

EXHIBIT D
377-100-003
377-380-003

CAMBERN
AVE

THIRD ST
ANNEXATION MAP NO. 26
COMMUNITY FACILITIES DISTRICT NO. 2015-2
(MAINTENANCE SERVICES)

CITY OF LAKE ELSINORE,

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWINGPROPOSED BOUNDARIES TO BE ANNEXED TOCOMMUNITY FACILITIES DISTRICT NO. 2015-2(MAINTENANCE SERVICES), CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OFLAKE ELSINORE AT A REGULAR MEETING THEREOF,HELD ON ______ DAY OF ______, 20____, BYRESOLUTION NO. __________________________________________________CITY CLERK CITY OF LAKE ELSINORE FILED IN THE OFFICE OF THE CITY CLERK, CITY OF LAKEELSINORE THIS ______ DAY OF ______, 20___.___________________________________CITY CLERK CITY OF LAKE ELSINORE RECORDED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITYFACILITIES DISTRICTS IN THE OFFICE OF THE COUNTYRECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY
- THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26. ^_
CFD 2015-2
TAX ZONE 30
74}|·þ
74}|·þ
15 §¨¦
215
§¨¦

LAKE ELSINORE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
30 TAX ZONE
LEGEND

PARCEL LINEANNEXATION AREA BOUNDARYCITY BOUNDARY
30 EXHIBIT D

EXHIBIT E

PETITION

PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE REQUESTING ANNEXING TERRITORY INTO COMMUNITY
FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF PROPERTY

WITHIN THE CITY OF LAKE ELSINORE AND A WAIVER WITH

RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND

CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY

THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of Lake Elsinore (the “City”), initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2015-2 (Maintenance Services) (the “District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District.

6. The undersigned hereby acknowledges and agrees that the measure submitted in connection with the special election referred to herein, as set forth in the ballot provided to the undersigned, asked voters whether or not the District should be authorized to levy a special tax in order to finance services (the "Services"), as specified in the Resolution No. 2015-078, adopted by the City Council of the City on September 22, 2015 (the “Resolution of Formation”). The Resolution of Formation described the Services to be financed by the District. The Rate and Method of Apportionment of the Special Tax for the District (the “Rate and Method”) is included in the ballot materials provided to the undersigned for the election (the “Ballot”). The Rate and Method contains detailed provisions specifying (i) the type of the Special Tax and the amount or rate of the Special Tax to be levied on each parcel of property in the District, (ii) the duration of the Special Tax (the fiscal year after which the Special Tax will no longer be levied), and (iii) the use of the revenue derived from the Special Tax to pay for the Services. The undersigned, having received and reviewed the Rate and Method and the Ballot will be, at the time it votes on the measure submitted to voters in the Ballot, in possession the type and amount or rate of the Special Tax, the duration of the Special Tax and the use of the revenue derived from the Special Tax, is fully informed with respect thereto and has a thorough understanding thereof.

7. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2015-2 of the portion of the incorporated area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure.

IN WITNESS WHEREOF, I hereunto set my hand this day of , 20 . [NAME OF LANDOWNER]
By:

Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS DAY OF , 20 .

City Clerk of the City Council of the
City of Lake Elsinore
377-100-003, 377-380-003
Cambern Avenue Development Holding Company, LLC
3111 Camino Del Rio N Ste 800
San Diego, CA 92108
24th March 25
Kevin Leichner
Senior Vice President

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 26)
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on June 24, 2025 adopted its Resolution No. 2025-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2015-2 (Maintenance Services) (the "CFD No. 2015-2"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2015-2 is proposed.

EXHIBIT G
BALLOT

SPECIAL TAX ELECTION

CITY OF LAKE ELSINORE

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 26
(August 12, 2025)
This ballot is for the use of the authorized representative of the following owner of land within Annexation No. 26 of the Community Facilities District No. 2015-2 (Maintenance Services) (“CFD No. 2015-2”) of the City of Lake Elsinore:

Name of Landowner
Number of Acres
Owned Total Votes
Cambern Avenue Development Holding
Company, LLC 4.02 5
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 12, 2025, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 12, 2025.

Very truly yours,
Candice Alvarez, MMC,
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

Cambern Avenue Development Holding Company, LLC
Attn: Kevin Leichner
3111 Camino Del Rio N Ste 800
San Diego, CA 92108
377-100-003, 377-380-003

ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) ANNEXATION NO. 26
AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use Category Maximum Special Tax A Maximum Special Tax B Multi-Family Residential $5,449 $2,227
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax A for Developed Property, Approved Property and Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index for the Riverside-San BernardinoOntario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 26 of Community Facilities District No. 2015-2 (Maintenance Services) City of Lake Elsinore” including lighting, streets, parks, graffiti abatement, and drainage for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Lake Elsinore on June 24, 2025 (including incidental expenses) and shall an appropriation limit be established for Community Facilities District No. 2015-2 (Maintenance Services) in the amount of special taxes collected? YES _________

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 ____________, 20__.

Kevin Leichner
Senior Vice President
Signature
Print Name
Title
3RD & CAMBERN APARTMENTS

LAKE ELSINORE, CALIFORNIA

CFD MAINTENANCE

PARCEL A SITE PLAN EXHIBIT
3RD & CAMBERN APARTMENTS

LAKE ELSINORE, CALIFORNIA

CFD MAINTENANCE

PARCEL B SITE PLAN EXHIBIT
3RD & CAMBERN APARTMENTS

LAKE ELSINORE, CALIFORNIA

HOA MAINTENANCE

PARCEL A SITE PLAN EXHIBIT
3RD & CAMBERN APARTMENTS

LAKE ELSINORE, CALIFORNIA

HOA MAINTENANCE

PARCEL B SITE PLAN EXHIBIT
10) Intention to Establish Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)

1. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS

HEIGHTS), TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE COSTS OF

ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO PAY DEBT

SERVICE ON BONDED INDEBTEDNESS

2. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $14,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON

HILLS HEIGHTS)

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Intention to Establish Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)
Recommendation

1. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025- 1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS), TO AUTHORIZE THE

LEVY OF A SPECIAL TAX TO PAY THE COSTS OF ACQUIRING OR CONSTRUCTING

CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS

2. Adopt A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $14,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS) Background
The Property to be included within the proposed Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“CFD No. 2025-1” or the “District”) is located on the northwest corner of Canyon Road and Craig Avenue (the “Property”) (see the attached project map). Collectively, the Property comprises approximately 81 gross acres, with plans to be entitled to 133 single-family residential lots. The Property is currently owned by Tri Pointe Homes Ie-Sd, Inc., a California Corporation (the “Property Owner”).

The Property Owner has requested that the City form CFD No. 2025-1 to encompass the Property under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), to finance the costs of specific public improvements through the levy of a special tax and the issuance of bonds.

The maximum amount of bonded indebtedness proposed is $14 million.

Establishment of CFD 2025-1 (Canyon Hills Heights)

Page 2 of 2 ends

Discussion
On May 27, 2025, the City Council adopted resolutions 25-028 and 25-029, which declared the intention to form CFD No. 2025-1 and to incur bonded indebtedness for CFD No. 2025-1. The Property Owner requested to restart the formation of CFD 2025-1 due to a revised maintenance services tax, which impacted the special tax rates in CFD 2025-1. The resolutions presented at this meeting rescind the foregoing resolutions adopted on May 27, 2025, and call for a public hearing on the formation of CFD No. 2025-1 for July 8, 2025.

The Property Owner has requested that the boundaries of CFD No. 2025-1 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-1 presented at this meeting (the “Resolution of Intention”) and that special taxes be levied within the boundaries of the District per the Rate and Method of Apportionment (the “RMA”) described in Attachment C to the Resolution of Intention. The Resolution of Intention is the first step in the process of forming CFD No. 2025-1. The attached Resolutions declare the City’s intention to establish CFD No. 2025-1, its intention to incur bonded indebtedness by CFD No. 2025-1, and call for a public hearing. A public hearing on this matter is scheduled for August 12, 2025. At that time, the Council will formally consider the establishment of CFD No. 2025-1 and hold elections on the approval of the special taxes and the need to incur bonded indebtedness within CFD No. 2025-1.

Fiscal Impact
The Property Owner has made a deposit to pay for the costs of the formation proceedings, which may be reimbursed to the Property Owner from proceeds of future bond issuance (if any) in accordance with a reimbursement agreement with the Property Owner. If established and subject to necessary Council and voter approvals, CFD No. 2025-1 will annually levy special taxes on all taxable Property within the District, as per the RMA (attached to the Resolution of Intention). Such special taxes will be used to cover the costs of facilities, debt service on bonds, and the administration of CFD No. 2025-1. Any bonds issued by CFD No. 2025-1 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-1.

The RMA provides that the annual special tax rates will range from $4,437 for homes with sizes less than 1,900 square feet to $5,463 for homes with sizes greater than 2,300 square feet, which rates escalate at a rate of 2% per year.

Attachments
Attachment 1 - Resolution of Intention to Establish CFD 2025-1 Attachment 2 - Resolution of Intention to Incur Debt
Attachment 3 - Landowner Petition
Attachment 4 - Project Map
Attachment 5 - Reimbursement Agreement
Administrative Services
RESOLUTION NO. 2025-

A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

LAKE ELSINORE, CALIFORNIA, TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS

HEIGHTS), TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE

COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS
Whereas, the City of Lake Elsinore (the “City”) received a petition signed by the owners of all of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
Whereas, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights)” (“Community Facilities District No. 2025-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and Whereas, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2025-1; and Whereas, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2025-1 and the issuance of bonded indebtedness in an amount not to exceed $14,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2025-1; Whereas, the City desires to enter into a reimbursement agreement with Tri Pointe Homes Ie-Sd, Inc., a California Corporation (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; Whereas, the District and the Developer propose to enter into a joint community facilities agreement (the “JCFA”) with the Elsinore Valley Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act;
CC Reso. No. 2025-

Page 2 of 22 ends

2 Whereas, the City Council adopted Resolution No. 25-028 on May 27, 2025 relating to the formation of the District and the City Council desires to rescind Resolution No. 25-028; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-1 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the AssessorCounty Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights).” Section 4. The Facilities proposed to be provided within Community Facilities District No. 2025-1 are public facilities as defined in the Act, which the City and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.

Section 5. Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).

The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such CC Reso. No. 2025-

Page 3 of 22 ends

3 Special Tax is levied, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2069-70, as described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-1 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2025-1 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No. 2025-1, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2025-1 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-1, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on August 12, 2025, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-1 shall be established and as to the method of apportionment of the special tax and shall consider:

CC Reso. No. 2025-

Page 4 of 22 ends

4 (a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-1 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-1 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2025-1, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2025-1 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-1, may appear and be heard.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2025-1, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025- 1 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-1. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-1. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

CC Reso. No. 2025-

Page 5 of 22 ends

5 Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Fourteen Million Dollars ($14,000,000).

Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.

Section 14. Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).

Section 15. Resolution No. 25-028 is hereby rescinded and shall be of no further effect.

Section 16. This Resolution shall take effect immediately upon its adoption.

Section 17. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June, 2025.
_____________________________
Brian Tisdale
Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2025-

Page 6 of 22 ends

6 STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2025-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 24, 2025 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
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ATTACHMENT A

BOUNDARY MAP
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ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-1 of the City of Lake Elsinore The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina/lakeside and animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.

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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CANYON HILLS HEIGHTS)

OF THE CITY OF LAKE ELSINORE
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore Community Facilities District No. 2025-1 (Canyon Hills Heights) ("CFD No. 2025-1”). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2025-1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, 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:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single Family Residential Property with a stand-alone Residential Unit. "Acre or Acreage" means the land area of an Assessor'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 parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2025-1 or obligated persons associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-1 for any other administrative purposes of CFD No. 2025-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied. "Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2025-1 have been pledged. "Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
"Calendar Year" means the period commencing January 1 of any year and ending the following December

31. "CFD” or “CFD No. 2025-1” means Community Facilities District No. 2025-1 (Lakeside Highlands) established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. “City” means the City of Lake Elsinore.

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"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2025-1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 6624. "County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) has an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th. “Indenture” means the indenture, fiscal agent 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.
“Land Use Category” means any of the categories listed in Table 1 and Table 2 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-1 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.
"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

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“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable.
"Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025-1 or the payment of debt services on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
“Tax Zone(s)” means the geographical area(s) within CFD No. 2025-1 identified as Tax Zone 1 or Tax Zone 2 as shown on the Boundary Map.
“Tax Zone 1” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 1.
“Tax Zone 2” means all property located within CFD No. 2025-1 and identified on the Boundary Map as Tax Zone 2.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2025-1, which are not Exempt Property.

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“Taxable Unit” means either a Residential Unit or an Acre. "Tract(s)" means an area of land within a subdivision identified by a particular tract number on a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.

B. SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD No. 2025-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1 or Tax Zone 2.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further categorized into Land Use Categories based on its Building Square Footage and assigned to its appropriate Assigned Special Tax rate.

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup Special Tax.

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The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1 and Table 2 of Section D. a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 and Table 2 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,900 sq. ft $4,437

2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. ft $4,540

3. Single Family Residential Property RU Greater than 2,100 sq. ft $4,694

4. Multifamily Property Acre N/A $50,074

5. Non-Residential Property Acre N/A $50,074
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

TABLE 2

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2
FISCAL YEAR 2025-2026
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 2,100 sq. ft $5,092

2. Single Family Residential Property RU 2,100 sq. ft to 2,300 sq. ft $5,219

3. Single Family Residential Property RU Greater than 2,300 sq. ft $5,463

4. Multifamily Property Acre N/A $28,113

5. Non-Residential Property Acre N/A $28,113
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

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c. Backup Special Tax
When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final Map area lies within and the Backup Special Tax for an Assessor’s Parcel within the Final Map classified or to be classified as Single Family Property shall calculated according to the following formula.

B = (U x A) / L
The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time of calculation, as determined by the Administrator
L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be determined by Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX PER ACRE
Tax Zone
Maximum Special Tax
per Acre
1 $50,074
2 $28,113
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on the rate per Acre shown in the table above. The Backup Special Tax shall not apply to Multifamily Residential Property, or Non-Residential Property.

On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax computed pursuant to Section D.1.c above.

The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $50,074 per Acre for Tax Zone 1 and $28,113 per Acre for Tax Zone 2.

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On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $50,074 per Acre for Tax Zone 1 and $28,113 per Acre for Tax Zone 2 multiplied by the Acreage of such Assessor’s Parcel.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2025-2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate to satisfy the Special Tax Requirement.

Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Annual Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the C-9
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amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 4 below.

TABLE 4

MINIMUM TAXABLE ACRES
Tax Zone Acres
1 5.46
2 16.44
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acres shown in Table 4 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $13,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding program for CFD No. 2025-1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2025-1.
“Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the C-10
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previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering NewsRecord Building Cost Index for the city of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only 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 Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are defined below):

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

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2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor’s Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, Public Property, Property Owner’s Association Property, or Provisional Undeveloped Property to be prepaid compute the Maximum Special Tax for the Assessor’s Parcel.

3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax at build out of all Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax obligation has been previously prepaid.

4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the Prepayment Amount (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Determine the Future Facilities Costs.

7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s Parcel (the “Future Facilities Amount”).

8. Determine the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed from Special Tax prepayments.

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

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the Prepayment Amount.

11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount derived pursuant to paragraph 10 (the “Defeasance Amount”).

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

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13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding 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.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.

15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next redemption from other Special Tax prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the obligation to pay the Special Tax for such Assessor’s Parcel shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid. For purposes of determining the partial prepayment amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a Partial Prepayment for the Assessor’s Parcel and that a portion of the Maximum Special Tax obligation equal to the remaining percentage (1.00 - F) of the Maximum Special Tax obligation will continue to be levied on the Assessor’s Parcel pursuant to Section E.

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2069-2070 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2025-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2025- 1 have been satisfied.

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2025-1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During C-14
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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 appeal must specify the reasons why the appellant claims the Special Tax is in error. 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, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Taxes and any taxpayer who appeals, as herein specified.

RESOLUTION NO. 2025

A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY

OF LAKE ELSINORE, CALIFORNIA, TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $14,000,000
WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1

OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)
Whereas, the City Council of the City of Lake Elsinore (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (“Community Facilities District No. 2025-1” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. 2025-___ (the “Resolution of Intention to Establish”) adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and, Whereas, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $14,000,000; and, Whereas, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $14,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2025-1, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” to the Resolution of Intention to Establish.

Whereas, the City Council adopted Resolution No. 25-029 on May 27, 2025 relating to the intention to incur bonded indebtedness of the District and the City Council desires to rescind Resolution No. 25-029.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2025-1 in an amount not to exceed $14,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.

Section 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.

Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $14,000,000 and at a maximum CC Reso. No. 2025-

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Lake Elsinore City CouncilJune 24, 2025

Lake Elsinore City Council
June 24, 2025