Agenda packet — Lake Elsinore City Council, July 22, 2025 (part 1 of 3)

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:

July 22, 2025

Closed Session: 6:00 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.lake- elsinore.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/agendas- and-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@lake- elsinore.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) 674 -3124, at least 48 hours before the meeting, to make reasonable arrangements to ensure accessibility

City Council Agenda - Final July 22, 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 July 22, 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 - 6:00 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

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) Business in Action Monthly Spotlight – El Comal

Recognize El Comal as the City of Lake Elsinore’s Business in Action Monthly Spotlight for July 2025.

2) Calfire 2025 Second Quarter Statistical Update

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

3) Minutes of the Regular City Council Meeting of July 8, 2025

Approve the Minutes.

City Council Agenda - Final July 22, 2025

City of Lake Elsinore Page 4

4) CC Investment Report for June 2025

Receive and file the Investment Report for June 2025.

5) Second Reading and Adoption of an Ordinance for Annexation No. 23 Into Community Facilities District No. 2015- 2 (Maintenance Services) for Canyon Hills Heights

Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016 -1359 OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015- 2 OF THE CITY OF LAKE

ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

6) Second Reading and Adoption of an Ordinance for Annexation No. 25 Into Community Facilities District No. 2015- 2 (Maintenance Services) for Tuscany Valley & Tuscany Crest

Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016 -1359 OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015- 2 OF THE CITY OF LAKE

ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

7) 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.

8) On-Call Services Agreement with AK Security Alarm LLC for Minor Construction and Repair Services

Approve and authorize the City Manager to execute an On- Call Services Agreement with AK Security Alarm, LLC for minor construction and repair services in an amount not to exceed $525,000.00 in such final form approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $52,500.00 for uncertainties and adjustments.

9) Purchase of City Hall Furniture

Approve and authorize the City Manager to execute a Purchase Order with Talimar Systems, Inc. in the amount of $944,225 for the relocation, purchase, and set up of City Hall furniture.

City Council Agenda - Final July 22, 2025

City of Lake Elsinore Page 5

10) Southwest Communities Financing Authority Fifth Amendment to the Restated Joint Powers Agreement

Approve and authorize the City Manager to execute the Fifth Amended and Restated Joint Powers Agreement for the Southwest Communities Financing Authority in such final form as approved by the City Attorney

11) California Department of Parks and Recreation Land and Water Conservation Fund Grant Program

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

CALIFORNIA, APPROVING THE APPLICATION FOR THE LAND AND WATER CONSERVATION FUND LAKE ELSINORE PROJECT.

12) Amendment No. 1 to the Agreement Dennis Janda, Inc. for On-Call Surveyor Services for City-Wide Requirements

Approve and authorize the City Manager to execute Amendment No. 1 to the Agreement with Dennis Janda, Inc. for on -call Surveyor Services to extend the term beginning July 22, 2025 and ending June 30, 2027 and increase the annual compensation by an additional $50,000.00 for a total amount not to exceed $85,000.00 in such final form as approved by the City Attorney.

13) Agreement with PlainJoes Studios for the Maintenance and Management of the Launch Pointe Website

Approve and authorize the City Manager to execute an Agreement with PlainJoes Studios in an annual amount not to exceed $27,000 for Launch Pointe website content management 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 $2,700 for uncertainties and adjustments.

14) Temporary License to Use a Portion of Parking Lot at Alberhill Ranch Community Park for Charter School Site Pending Completion of a Permanent School Site on Riverside Drive

1. Find that the proposed temporary use project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15311 (Accessory Structures); and

2. Approve the temporary use of a portion of the parking lot at Alberhill Ranch Community Park for modular classrooms for a charter school facility and authorize the City Manager to execute the Right of Entry Agreement and License and to address any other ancillary matters as may be necessary to allow for and facilitate the use thereof, in such final form as approved by the City Attorney.

15) Final Closeout Amendment No. 3 to the Professional Services Agreement with FCG for Resident Engineering Services on the Main Street/I15 Interchange Improvement Project CIP Z10094

Authorize the City Manager to execute Amendment No. 3 to the Professional Services Agreement with FCG for $71,451.38 plus an additional 10% contingency for the closeout of Resident Engineering Services for the Main Street/I15 Interchange Improvement Project as approved in final form by the City Attorney.

City Council Agenda - Final July 22, 2025

City of Lake Elsinore Page 6

16) Tract Map No. 34249, Canyon Hills Estates

Approve Final Tract Map No. 34249, subject to the City Engineer’s acceptance as being true and correct, authorize the City Clerk to sign the map and arrange for recordation of Final Tract Map No. 34249, and approve and authorize the City Manager to execute the Construction of Improvements Agreement for Monumentation.

17) Agreement with St. Nick’s Christmas Lighting and Décor (DBA T&G Global, LLC) for the Design and Installation of Main Street Holiday Decorations

Approve and authorize the City Manager to execute an Agreement with St. Nick’s Christmas Lighting and Décor (DBA T&G Global, LLC) for the design and installation of the Main Street Holiday Decorations in an amount not to exceed $140,000.00 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 $14,000 for unanticipated costs.

18) Amendment No. 2 to Agreement with Tri -Star Electric in Support of City of Lake Elsinore Public Works Operations

Approve and authorize the City Manager to execute Amendment No. 2 to the Agreement with Tri-Star Electric to increase compensation by an additional $5,951.00 for a total not to exceed $60,951.00 in such final form as approved by the City Attorney.

SUCCESSOR AGENCY CONSENT CALENDAR

19) Minutes of the Regular Successor Agency Meeting of July 8, 2025

Approve the Minutes.

20) SA Investment Report for June 2025

Receive and file the Investment Report for June 2025.

PUBLIC HEARINGS

21) Citywide Landscaping and Street Lighting District and the Landscaping and Street Lighting Maintenance District No. 1 for Fiscal Year 2025-26

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

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025 -26 FOR THE CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT (LLMD); and

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

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025- 26 FOR THE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO.1.

City Council Agenda - Final July 22, 2025

City of Lake Elsinore Page 7

22) Placement of Delinquent Nuisance Abatement Charges on the Tax Roll

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

CALIFORNIA, ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS

AGAINST PARCELS OF LAND WITHIN THE PUBLIC NUISANCE ABATEMENT COSTS FOR THE FISCAL YEAR 2025-26.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 3 MINUTES

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, August 12, 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 Thursday, July 17, 2025.

_________________________
Candice Alvarez, MMC
City Clerk

1)
Business in Action Monthly Spotlight – El Comal
Recognize

Comal

the

City

Lake

Elsinore’s

Business

Action

Monthly

Spotlight

for
July 2025.

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:Gina Gonzalez, Director of Economic Development and Legislative Affairs Date:July 22, 2025
Subject:Business in Action Monthly Spotlight – El Comal Recommendation
Recognize El Comal as the City of Lake Elsinore’s Business in Action Monthly Spotlight for July 2025.

Background
The City of Lake Elsinore’s Business in Action Monthly Spotlight highlights outstanding local businesses that contribute to the community’s economic growth, exceptional customer service, and community involvement. For the month of July 2025, the City is proud to recognize El Comal for its dedication to providing high-quality, authentic Mexican and Salvadoran cuisine and beverages and its active engagement in supporting local events and initiatives.

Discussion
El Comal, a family-owned and operated restaurant, has been serving the Lake Elsinore community with passion and excellence since 2002. Known for its authentic cuisine, warm hospitality, and extensive Tequila & Mezcal selection backed by first-hand knowledge. El Comal has built a loyal customer base and a reputation for blending the rich culinary traditions of Mexico and El Salvador with delicious cuisines including menudo, pupusas, and enchiladas, while maintaining excellent friendly and attentive service and a festive atmosphere.

Beyond its core services, El Comal is deeply committed to the local community and was recognized as the 2020 Medium-Sized Business of the Year. The business frequently donates food for teacher appreciation events and donates to and sponsors local youth sports teams, supports the Lake Elsinore Valley Chamber of Commerce events as well as sponsoring and supporting other local events and charities, and engaging in civic initiatives. Their commitment to quality food, beverages and service and giving back exemplifies the values of a thriving local business.

July Monthly Spotlight

Page 2 of 2 ends

By recognizing El Comal as the Business in Action Monthly Spotlight, the City aims to celebrate their contributions and encourage other businesses to follow their example in supporting and enhancing the Lake Elsinore community.

Fiscal Impact
There is no fiscal impact associated with this recognition.

Attachments
None.
2)
Calfire 2025 Second Quarter Statistical Update

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:July 22, 2025
Subject:Calfire 2025 Second Quarter Statistical Update
RSO
3)
Minutes of the Regular City Council Meeting of July 8, 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:July 22, 2025
Subject:Minutes of the Regular City Council Meeting of July 8, 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:

July 08, 2025

Closed Session: NONE
Public Session: 7:00 PM

Cultural Center
183 N. Main Street
Lake Elsinore, CA 92530

CALL TO ORDER - 7:00 P.M.

The Regular Meetings of the City Council and the Successor Agency were called to order at 7:00 p.m.

PLEDGE OF ALLEGIANCE

Mayor Tisdale led the Pledge of Allegiance.

ROLL CALL

Present: 5 - Council/Agency Members Manos, Sheridan, and Johnson; Mayor Pro Tem/Vice Chair Magee; and Mayor/Chair Tisdale

Absent: 0 - None

PRESENTATIONS/CEREMONIALS

1) Business in Action Monthly Spotlight – Keller Williams Realty (KW) The Lakes

Recognize Keller Williams Realty (KW) The Lakes as the City of Lake Elsinore’s Business in Action Monthly Spotlight for June 2025.

Mayor Tisdale recognized Sofia Chacon and Arlen Perla.

2) Riverside County Sheriff's Office 2025 Second Quarter Statistical Update

Captain Rayls presented the update.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 2

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - 1 MINUTE

Doug Strosnider was called to speak.

Eddie Torres was called to speak.

Bryan Sanchez was called to speak.

Claudia Bautista was called to speak.

CITY COUNCIL CONSENT CALENDAR

A motion was made by Council Member Johnson, seconded by Council Member Manos to approve the City Council Consent Calendar with Item No. 7 being removed from the Agenda. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

3) Minutes of the Regular City Council Meeting of June 24, 2025

Approve the Minutes.

This item was approved on the City Council Consent Calendar.

4) Acceptance of a Donation of Undeveloped Real Property (APN 373-061-010)

Approve and authorize the City Manager to execute a Donation Agreement and Joint Escrow Instructions and such other ancillary documents as may be necessary to complete the donation of approximately 0.14 acres of undeveloped property (APN 373-061-010) in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

5) Second Reading of an Ordinance Approving Amendments to Title 17 (Zoning), Chapter 17.156 of the Lake Elsinore Municipal Code Related to Cannabis Uses

Adopt 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 MUNICIPAL CODE REGARDING CANNABIS USES.

This item was approved on the City Council Consent Calendar.

6) Second Reading of Ordinances Amending Development Agreements for Six Existing Cannabis Businesses to Revise the Community Benefit Fees

1. Adopt 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);

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 3

2. Adopt 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);

3. Adopt 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 LAKE
ELSINORE INVESTMENT CORP (DBA MR. NICE GUY) LOCATED AT 311 W MINTHORN STREET (APN: 377-220-021);

4. Adopt 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);

5. Adopt 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

6. Adopt 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).

This item was approved on the City Council Consent Calendar.

7) Citywide Landscaping and Street Lighting District and the Landscaping and Street Lighting Maintenance District No. 1 for Fiscal Year 2025-26

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

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025-26 FOR THE CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT (LLMD); and

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

ELSINORE, CALIFORNIA, CONFIRMING A DIAGRAM AND ASSESSMENT AND

PROVIDING FOR ANNUAL ASSESSMENT LEVY AFTER FORMATION OF A DISTRICT FOR FISCAL YEAR 2025-26 FOR THE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO.1.

This item was removed from the Agenda.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 4

8) Fiscal Year 2025-26 Special Taxes for Community Facilities Districts and Assessment District No. 2021-1 (Canyon Hills)

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

ELSINORE, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF

SPECIAL TAXES WITHIN EACH COMMUNITY FACILITIES DISTRICT LISTED FOR FISCAL YEAR 2025-26; and

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

ELSINORE, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS WITHIN REASSESSMENT DISTRICT NO. 2021-1 (CANYON HILLS) FOR FISCAL YEAR 2025-26.

This item was approved on the City Council Consent Calendar.

9) Notice of Decision - Planning Commission Approval of Planning Application No. 2021-34 (Evergreen/Dutch Bros) for a Commercial Design Review and Amendment to Conditional Use Permit No. 2021-12 for a New 980 Sq. Ft. Drive- through Dutch Bros Coffee Shop on an approximately 1.13-Acre Site Located South of Central Avenue (SR-74) and east of Cambern Avenue within the Evergreen Commercial Development

Receive and file the Notice of Decision for Planning Application No. 2021-34 approved by the Planning Commission on June 17, 2025.

This item was approved on the City Council Consent Calendar.

10) Change Order No.1 with Elsinore Valley Municipal Water District to Provide Construction Inspection Services for the Camino Del Norte Sewer Extension Project. EVMWD W.O. 2025-00164-INS

Approve and authorize the City Manager to execute Change Order No. 1 with Elsinore Valley Municipal Water District for $76,240.00 to provide Inspection Construction Services for the Camino Del Norte Sewer Extension Project.

This item was approved on the City Council Consent Calendar.

11) Change Order No. 1 to the Agreement with Aneen Construction Inc. to Provide Public Works Construction Services for the Camino Del Norte Sewer Extension Project (Project No. Z30016)

Approve and authorize the City Manager to execute Change Order No. 1 to the Agreement with Aneen Construction Inc. in the amount of for $432,246.00 for Public Works Construction Services for the Camino Del Norte Sewer Extension Improvements Project 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 $43,224.60 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 5

12) Agreement with Dost Engineering for Design of the SB 821 Spring Street Pedestrian Facilities Program Project in the Amount of $80,100

Approve and authorize the City Manager to execute a Professional Services Agreement with Dost Engineering for the design of the SB-821 Spring Street Pedestrian Facilities Program Project in the amount of $80,100 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 $8,010.00 for uncertainties and adjustments.

This item was approved on the City Council Consent Calendar.

13) Amendment No. 3 to the Agreement with Rightway Site Services, Inc. for Citywide Portable Sanitation Services Agreement

Approve and authorize the City Manager to execute Amendment No. 3 to the Agreement with Rightway Site Services, Inc. for Citywide portable sanitation services and increase compensation by an additional $4,897.11 for a total amount not to exceed $109,897.11 in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

14) Amendment No. 4 to the Agreement with Excel Landscape, Inc. for Monthly Landscape Services for Citywide Facilities and Streetscapes

Approve and authorize the City Manager to execute Amendment No. 4 to the Agreement with Excel Landscape, Inc. to extend the Term of the Original Agreement, as amended on a month-to-month basis for three (3) additional months with Excel Landscape, Inc., in an amount not to exceed $31,680 per month and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $3,168.00 for unforeseen additional work in Fiscal Year 2025-26 beginning July 1, 2025.

This item was approved on the City Council Consent Calendar.

15) Amendment No. 5 to the Agreement with RP Landscape & Irrigation, Inc. for Monthly Landscape Services for Citywide Parks

Approve and authorize the City Manager to execute Amendment No. 5 to extend the Term of the Original Agreement, as amended on a month-to-month basis for three (3) additional months with RP Landscape & Irrigation, Inc. in an amount not to exceed $74,530.35 per month and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $7,453.00 for unforeseen additional work, in FY 2025-26, beginning July 1, 2025.

This item was approved on the City Council Consent Calendar.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 6

16) Annual On-Call Services Agreements for Citywide Portable Sanitation Services

Approve and authorize the City Manager to execute On-Call Services Agreements with Rightway Site Services, Inc. in the amount of $120,000, and Reliable Rentals, Inc. in the amount of $34,800 for Citywide Portable Sanitation Services in such final form as approved by the City Attorney.

This item was approved on the City Council Consent Calendar.

SUCCESSOR AGENCY CONSENT CALENDAR

A motion was made by Agency Member Johnson, seconded by Agency Member Manos to approve the Successor Agency Consent Calendar. The motion carried by the following vote:

Aye: 5 Agency Members Manos, Sheridan, and Johnson; Vice Chair Magee; and Chair Tisdale
Nay: 0 None

17) Minutes of the Regular Successor Agency Meeting of June 24, 2025

Approve the Minutes.

This item was approved on the Successor Agency Consent Calendar.

18) Agreement with Hemet Fence for the Removal/Replacement of Iron Fencing at Lake Elsinore Diamond Stadium

Approve and Authorize the Executive Director to execute Agreement with Hemet Fence for the removal/replacement of iron fencing at Lake Elsinore Diamond Stadium in an amount not to exceed $45,000.00 in such final form as approved by the Agency Attorney authorize the Executive Director to execute change orders not to exceed the 10% contingency amount of $4,500 for unanticipated costs.

This item was approved on the Successor Agency Consent Calendar.

PUBLIC HEARINGS

19) Approve Placing Delinquent Weed Abatement Charges on the Tax Roll

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

CALIFORNIA, CONFIRMING AN ITEMIZED WRITTEN REPORT SHOWING COST

OF WEED ABATEMENT, CONFIRMING THE ITEMIZED WRITTEN REPORT FOR EACH SEPARATE PARCEL OF LAND REQUIRED BY SECTION 39574 OF THE

GOVERNMENT CODE OF THE STATE OF CALIFORNIA, AND PROVIDING THAT

THE COSTS THEREOF ON EACH PARCEL OF LAND SHALL CONSTITUTE A

SPECIAL ASSESSMENT LIEN AGAINST SAID PARCELS OF LAND PURSUANT TO SECTION 39574 OF THE GOVERNMENT CODE OF THE STATE OF CALIFORNIA,

AND PROVIDING FOR THE FILING OF SAID ASSESSMENTS AS PROVIDED IN SAID GOVERNMENT CODE.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 7

The Public Hearing was opened at 7:27 p.m.

Shane Spicer presented the staff report.

There were no speakers.

The Public Hearing was closed at 7:28 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt the Resolution. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

20) Placement of Delinquent Refuse Bills on the Fiscal Year 2025-26 Tax Roll

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

CALIFORNIA, AFFIRMING THE REPORT OF DELINQUENT RESIDENTIAL REFUSE FEES AND DIRECTING THEIR COLLECTION ON THE PROPERTY TAX ROLLS.

The Public Hearing was opened at 7:29 p.m.

There were no speakers.

The Public Hearing was closed at 7:30 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt the Resolution. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

21) Public Hearing and Election for Annexation Proceedings for Annexation No. 15 Into Community Facilities District No. 2015-1 (Safety Services)

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

ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY

SERVICES), ANNEXING TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES), AND CALLING ELECTIONS THEREIN; and

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

ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-1 (SAFETY SERVICES) CERTIFYING THE RESULTS OF THE JULY 8, 2025, ANNEXATION AND SPECIAL TAX ELECTIONS.

The Public Hearing was opened at 7:30 p.m.

There were no speakers.

The Public Hearing was closed at 7:32 p.m.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 8

A motion was made by Council Member Manos, seconded by Mayor Pro Tem Magee to adopt the Resolution in Recommendation No. 1. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

A motion was made by Council Member Johnson, seconded by Mayor Pro Tem Magee to adopt the Resolution in Recommendation No. 2. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

22) Public Hearing and Election for Annexation Proceedings for Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 34249 Canyon Hills Heights

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

ELSINORE, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN

THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23);

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

ELSINORE, CALIFORNIA, DECLARING ELECTION RESULTS FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 23); and

3. Introduce AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN

ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

The Public Hearing was opened at 7:34 p.m.

There were no speakers.

The Public Hearing was closed at 7:35 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt the Resolution in Recommendation No. 1. The motion Carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 9

A motion was made by Council Member Johnson, seconded by Mayor Pro Tem Magee to adopt the Resolution in Recommendation No. 2. The motion Carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

A motion was made by Council Member Manos, seconded by Council Member Johnson to introduce by title only and waive further reading of the Ordinance in Recommendation No. 3. The motion Carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

23) Public Hearing and Election for Annexation Proceedings for Annexation No. 25 Into Community Facilities District No. 2015-2 (Maintenance Services) for TTM 33725 & 25475 (Tuscany Valley & Tuscany Crest)

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

ELSINORE, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE

QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN

THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25);

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

ELSINORE, CALIFORNIA, DECLARING ELECTION RESULTS FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) (ANNEXATION NO. 25); and

3. Introduce by title only and waive further reading an ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF

LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

The Public Hearing was opened at 7:38 p.m.

There were no speakers.

The Public Hearing was closed at 7:39 p.m.

A motion was made by Council Member Johnson, seconded by Council Member Manos to adopt the Resolution in Recommendation No. 1. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 10

A motion was made by Council Member Johnson, seconded by Mayor Pro Tem Magee to adopt the Resolution in Recommendation No. 2. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

A motion was made by Council Member Johnson, seconded by Council Member Manos to introduce by title only and waive further reading of the Ordinance in Recommendation No. 3. The motion carried by the following vote:

Aye: 5 Council Members Manos, Sheridan, and Johnson; Mayor Pro Tem Magee; and Mayor Tisdale
Nay: 0 None

24) Placement of Delinquent Nuisance Abatement Charges on the Tax Roll

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

CALIFORNIA, ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS

AGAINST PARCELS OF LAND WITHIN THE PUBLIC NUISANCE ABATEMENT COSTS FOR THE FISCAL YEAR 2025-26.

This item was removed from the Agenda.

PUBLIC COMMENTS - NON-AGENDIZED ITEMS - THREE MINUTES

Bryan Sanchez was called to speak.

Leo Zoller was called to speak.

Alan Vargas was called to speak.

Natalia Saca was called to speak.

CITY MANAGER'S COMMENTS

City Manager Simpson spoke on Fire Risk R eduction and the City’s work towards becoming a Firewise Community.

CITY ATTORNEY COMMENTS

Assistant City Attorney Mann had no comments.

CITY COUNCIL COMMENTS/REPORTS ON MEETINGS ATTENDED

Council Member Sheridan spoke on areas in Lake Elsinore working on becoming Firewise Communities; requested that City staff consider proposing an e-bike Ordinance; reported on his attendance at the Riverside Transit Agency Tow-Now meeting on June 25, 2025 and Board of Directors meeting on June 26, 2025; shared updates from the Lake Elsinore Storm; invited the community to attend the Live! @ the Plateau 2025 Summer Concerts and Art Show on Tuesdays through Saturdays from July 1 – August 9, 2025 at Plateau Vineyards; shared that representatives from “ohmio” visited Lake Elsinore on June 25, 2025; shared updates from the Party in the Park on July 4, 2025 at Summerly Park; and addressed those who spoke during public comments.

City Council Minutes - Draft July 08, 2025

City of Lake Elsinore Page 11

Council Member Manos addressed those who spoke during public comments; and invited the community to attend the Live at the Lakefront Summer Concert Series, held every Thursday in July at 7:00 p.m. at Launch Pointe.

Council Member Johnson addressed those who spoke during public comments; and spoke on the confiscation of fireworks over the 4th of July weekend.

Mayor Pro Tem Magee thanked the Riverside Sheriff’s Office for their fireworks enforcement; noted that the new I- 15/SR-71 interchange has opened; and invited the community to attend and participate in the Cal Club SCCA Autocross Championship and Practice on July 26-27, 2025 at Diamond Stadium.

Mayor Tisdale requested prayers for those affected by the storm in Texas; spoke on reporting mosquitoes throughout the community; shared highlights from the Riverside County Sheriff’s Office Annual Awards Ceremony and recognized Lake Elsinore’s Sergeants and Deputies; shared an update on the Lakeshore Drive Sidewalk Project currently underway and is expected to be completed by July 31, 2025; shared information regarding a Special Election that will be held on August 26, 2025; shared the acquisition of the Station 97 Fire Truck; and asked that the community pray for the communities in Texas ex periencing floods and for City Attorney Leibold’s health.

ADJOURNMENT

The Lake Elsinore City Council adjourned at 8:20 p.m. to the next Regular meeting on Tuesday, July 22, 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.

4)
CC Investment Report for June 2025
Receive and file the Investment Report for June 2025.

Page 1 of 1 ends

Background
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 June 2025
Administrative Services

5)
Second Reading and Adoption of an Ordinance for Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for Canyon Hills Heights
Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

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:Shannon Buckley, Assistant City Manager
Date:July 22, 2025
Subject:Second Reading and Adoption of an Ordinance for Annexation No. 23 Into Community Facilities District No. 2015-2 (Maintenance Services) for Canyon Hills Heights
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

Background
At the July 8, 2025, Council meeting, this Ordinance was introduced for first reading. This is the required second reading and adoption. The Ordinance will become effective 30 days from the date of adoption.

Fiscal Impact
There is no fiscal impact associated with the recommended action of this item.

Attachments
Attachment 1 - Location Map
Attachment 2 - Ordinance
Administrative Services
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COMMUNITY FACILITIES DISTRICT NO. 2015-2
ANNEXATION NO. 23

PROJECT MAP

ORDINANCE NO. 2025-___
AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF

THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF

THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES)

AUTHORIZING THE LEVY OF SPECIAL TAXES
Whereas, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on July 28, 2015, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) adopted Resolution No. 15-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California (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 (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and Whereas, on May 10, 2016, the City Council adopted Ordinance No. 2016-1359 entitled, “An Ordinance of the City of Council of the City of Lake Elsinore, California, acting in its capacity as the legislative body of Community Facilities District No. 2015-2 of the City of Lake Elsinore (Maintenance Services) authorizing the levy of special tax” (“Ordinance No. 2015-1359”), pursuant to which the City Council levied special taxes with the CFD No. 2015-2; and Whereas, on May 27, 2025, the City Council adopted Resolution No. 2025-27 entitled “A Resolution of the City Council of the City of Lake Elsinore 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. 23) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2015-2 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for July 8, 2025; and
Whereas, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2015-2, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and Whereas, on July 8, 2025, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services by the CFD No. 2015-2; and
Whereas, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and Whereas, subsequent to said public hearing, the City Council adopted Resolution No. 25- ___ entitled “A Resolution of the City Council of the City of Lake Elsinore, California, Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 23)” (the “Resolution Calling the Election”) on July 8, 2025 wherein the City Ord. No. 2025-____

Page 2 of 25 ends

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5 Council submitted the question of levying a special tax in territory proposed to be annexed to the CFD No. 2015-2 at the rate and according to the method of apportionment described therein; and Whereas, at said special election on July 8, 2025, the qualified electors of the territory proposed to be annexed to the CFD No. 2015-2 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and Whereas, subsequent to said special election, the City Council adopted Resolution No. 25-___ entitled “A Resolution of the City Council of the City of Lake Elsinore, California, Declaring the Election Results for Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 23)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2015-2 (such territory being referred to herein as “Annexation No. 23”).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) OF THE CITY OF LAKE ELSINORE, DOES ORDAIN AS FOLLOWS:

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

Section 2.Amendment to Exhibit B of Ordinance No. 2016-1359. Ordinance No. 2016-1359 is hereby amended by including Exhibit B to Ordinance No. 2016-1359 attached hereto.

Section 3.Amendment to Section 2 of Ordinance No. 2016-1359. Section 2 of Ordinance No. 2016-1359 is hereby amended by deleting it in its entirety and replacing it with the following:

Section 2.By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District which are subject to taxation which are identified in Exhibit B attached hereto, pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of
apportionment set forth in Exhibit A attached hereto, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be finance by the District, are provided through such financing within the District.

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5 area, Revised Exhibit B of Ordinance No. 2016-1359 shall be further amended to include any additional territory annexed to the CFD No. 2015-2. The City Council hereby authorizes and directs the officers, employees, and agents of the City to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Section 4 of this Ordinance to further include Exhibit B to Ordinance No. 2016-1359.

Section 5.Severability. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes found inapplicable to any particular parcel within the CFD No. 2015- 2, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD No. 2015-2 shall not be affected.

Section 6.Authorization to Publish Ordinance. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall, within fifteen (15) days of its adoption, cause it or a summary of it to be published at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City and the CFD No. 2015-2.

Section 7. Effective Date. This Ordinance shall take effect and shall be in force thirty (30) days after the date of its adoption, at which time Revised Exhibit B will include Exhibit B to Ordinance No. 2016-1359 and Section 2 of Ordinance No. 2016-1359 will be amended as described herein.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 22nd day of July 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
Ord. No. 2025-____

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5 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 Ordinance No. 2025-____ was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of July 8, 2025, and adopted at the Regular meeting of July 22, 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Candice Alvarez, MMC
City Clerk

EXHIBIT A

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.
“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 1 st 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.
“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.
“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 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:

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
(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:

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;
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.

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 26
TTM 34249
Item Description Estimated Cost
1 Landscaping $5,590
2 Street Lights $14,684
3 Streets $24,796
4 Drainage $6,587
5 Parks $31,844
6 Graffiti $611
7 Reserves $8,411
8 Admin $12,767
Total $105,289
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 26.

TAX ZONE 26 (CONTINGENT SERVICES)
TTM 34249
Item Description Estimated Cost
1 Drainage $22,961
2 Reserves $2,296
3 Admin $3,444
Total $28,702
TAX ZONE 26
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 RU $792 $216
Non-Residential Property Acre $4,803 $1,309
Note: The maximum special tax rate of $792 for Single Family Residential units reflects a reduction from the $1,026 rate initially proposed in Resolution No. 2025-27. This adjustment accounts for a refined scope of maintenance responsibilities TAX ZONE 26
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $4,803 $1,309

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 SPT-AREP III Tuscany Associates 12 15 TR 25475 2021-22 $594 / RU $62 / RU SPT-AREP III Tuscany Associates 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 TTM 34249 2025-26 $792 / RU $216 / RU Tri Pointe Homes IE-SD, Inc. 24 To Be Determined
28 TTM 33725 2025-26 $821 / RU $221 / RU25
29 TTM 25475 2025-26 $604 / RU $157 / RU
KB Home California
Management 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.

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; 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.

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2025-26
(Effective as of July 22, 2025)

ASSESSOR'S PARCEL NUMBERS
Annexation Zone Owner Assessor's Parcel Numbers
Original 1 Tractor Supply 377-120-068
1 2 Pardee Homes See Below
2 3 Pasadena Industrial Park, LLC 377-120-032, -043 thru -047, -069, and -071
3 4 ARI Chaney Street, LLC 377-140-028 thru -030, -032 thru -035, -038 thru -041, -044 thru -046
4 5 LE Cottage Lane, LLC See Next Page
5 6 Lake Elsinore CCR, LLC 365-030-048
6 7 Pardee Home See Next Page
7 8 Central Plaza 377-081-002 thru -009
8 9 Nichols Rd Partners, LLC
389-200-038 (por.),
389-210-008 (por.), 389-210-032,
389-210-034, and 389-210-036 (por.)
8 10 Nichols Rd Partners, LLC 389-200-046, -049, and -053 9 11
Donald S. Clurman &
Three Strands Properties, LLC &
Spectrum Communities, LLC
See Next Page
10 12 JLJ, LP See Next Page
11 13 SRZ Yuma, LLC 377-081-035
12 14 SPT AREP III Tuscany Associates
349-240-006, -043, -044, -045, -046,
-047, -054, -055, -056 and
349-380-024, -025
12 15 SPT AREP III Tuscany Associates 349-240-034, -038, -072, -075 13 16 Wal-Mart Real Estate Business Trust 377-090-052, -053, -054, -055, -056, -057
14 17 Tri Pointe Homes IE-SD, Inc. 363-940-038
15 18 Boos-Up Lake Elsinore 377-243-024
16 19 Pennington Industrial, LLC 377-160-051, -052, -053 17 20 Lake Elsinore Lakeshore, LLC and
Erin Crowder 379-230-001 and 379-230-002
18 21 Tri Pointe Homes IE-SD, Inc. 379-060-005, -022, and -027 19 22 Vista Emerald, LLC 370-050-019, -020, -032
20 23 Pulte Home Co. See Next Page
21 24 Lake Street Properties, LP 390-130-050
22 25 RA & B Development, LLC 377-220-037
23 26 Tri Pointe Homes IE-SD, Inc. 365-230-005, -006, -009, -011, and - 012
24 To Be Determined
25 28 KB Home California Management Services
25 29 KB Home California Management Services See Next Page EXHIBIT B (cont.)
ANNEXATION NO. 1

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
358710001 358710002 358710003 358710004 358710005 358710006 358710007 358710008 358710009 358710010 358710011 358710012 358710013 358710014 358710015 358710016 358710017 358710018 358710019 358710020 358710021 358710022 358710023 358710024 358710025 358710026 358710027 358710028 358710029 358710030 358710031 358710032 358710033 358710034 358710035 358710036 358710037 358710038 358710039 358710040 358710041 358711001 358711002 358711003 358711004 358711005 358711006 358711007 358712001 358712002 358712003 358712004 358712005 358712006 358712007 358712008 358712009 358712010 358712011 358712012 358712013 358712014 358712015 358712016 358712017 358712018 358712019 358712020 358712021 358712022 358712023 358712024 358712025 358712026

ANNEXATION NO. 4

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
379490004 379490005 379490006 379490007 379490008 379490009 379490010 379491001 379491002 379491003 379491004 379491005 379491006 379491007 379491008 379491010 379491011 379491012 379491013 379491014 379491017 379491018 379491019 379491020 379491021 379491022 379491023 379491024 379491025 379491026 379491027 379491028 379491029 379491030 379491031 379491032 379491033 379491034 379491035 379491036 379491037
ANNEXATION NO. 6

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
379051001 379051002 379051003 379051004 379051005 379051006 379051007 379051009 379051010 379051011 379051013 379051014 379051015 379051016 379051018 379051019 379051020 379051021 379051023 379051024 379051025 379051026 379051027 379051028 379051029 379051031 379051032 379051033 379051034 379051035 379051036 379051037 379051038 379051040 379051041 379051042 379051043 379051045 379051046 379051047 379051048 379051049 379051051 379051052 379051053 379051054 379051055 379051056 379051057 379051058 379051061 379051062 379051063 379051064 379051066 379051067 379051068 379051069 379051071 379051072 379051073 379051074 379051075 379051077 379051078 379051079 379051080 379051081 379051083 379051084 379051085 379051086 379051087 379051089 379051090 379051091 379051092 379052001 379052002 379052003 379052004 379052005 379052006 379052007 379052008 379052009 379052011 379052012 379052013 379052014 379052016 379052017 379052018 379052019 379052020 379052022 379052023 379052024 379052025 379052026 379052027 379052028 379052029 379052031 379052032 379052033 379052034 379052035 379052036 379052037 379052038 379052039 379052040 379052042 379052043 379052044 379052045 379052046 379052047 379052049 379052050 379052051 379052052 379052053 379052054 379052056 Assessor's Parcel Numbers
379052057 379052058 379052059 379052060 379052061 379052062 379052064 379052065 379052066 379052067 379052068 379052087 379052088 379052089 379052090 379052091 379052092 379052094 379052095 379052096 379052097 379052098 379053001 379053002 379053003 379053004 379053005 379053006 379053007 379053008 379053009 379053010 379053011 379053012 379053014 379053015 379053016

ANNEXATION NO. 9

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
347110021 347580007 347580001 347580002 347580003 347580004 347580005 347580006 347581001 347581002 347581003 347581004 347581005 347581006 347581007 347581008 347582001 347582002 347582003 347582004 347582005 347582006 347582007 347582008 347582009 347580010 347582023 347582019 347582018 347582017 347582016 347582015 347582014 347582013 347582012 347582021 347560012 347560013 347560014 347560015 347560016 347560017 347560018 347560019 347560043 347560020 347560021 347560022 347560023 347560024 347560025 347560026 347560027 347560028 347560044 347560029 347560030 347560031 347560032 347560033 347560034 347560035 347560036 347560037 347560038 347560039 347560040 347560041 347560042 347560001 347560002 347560003 347560004 347560005 347560006 347560007 347560008 347560009 347560010 347560011 347570001 347570002 347570003 347570004 347570005 347570006 347570007 347570008 347570009 347570010 347570011 347570012 347570013 347570014 347561001 347561002 347561003 347561004 347561005 347561006 347561007 347561008 347561009 347561010 347561011 347561012 347561013 347561014 347561015 347561016 347561017 347561018 347570015 347570016 347570017 347570018 347570019 347570020 347570021 347570022 347571001 347571002 347571003 347571004 347571005 347571006 347571007 347571008 347571009 347571010 347571011 347571012 347571013 347571014 347571015 347571016 347571017 347571018 347571019 347571020 347571021 347571022 347571023 347571024 347571025 347571026 347571027 347571028 347571029 347562001 347562002 347562003 347562004 347562005 347562006 347562007 347562008 347562009 347562010 347562011 347562012 347562013 347562014 347562015 347562016 347562017
EXHIBIT B (cont.)
ANNEXATION NO. 10

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
373071040 373074054 373074040 373074047 373074033 373074026 373074017 373074002 373074007 373074049 373074035 373074042 373074028 373074022 373074013 373074018 373074003 373074008 373074050 373074036 373074043 373074029 373074023 373074014 373074019 373074004 373074009 373074051 373074037 373074044 373074030 373074024 373074015 373074020 373074005 373074010 373074052 373074038 373074045 373074031 373074025 373074016 373074001 373074006 373074011 373074053 373074039 373074046 373074032
ANNEXATION NO. 20

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
389090032 389090033 389090034 389090035 389790000 389790001 389790002 389790003 389790004 389790005 389790006 389790007 389790008 389790009 389790010 389790011 389790012 389790013 389790014 389790015 389790016 389790017 389790018 389790019 389790020 389790021 389790022 389790023 389790024 389790025 389790026 389790027 389790028 389790029 389790030 389790031 389790032 389790033 389790034 389790035 389790036 389790037 389790038 389790039 389790040 389790041 389790042 389790044 389790045 389790046 389790047 389790048 389800001 389800002 389800003 389800004 389800005 389800006 389800007 389800008 389800009 389800010 389800011 389800012 389800013 389800014 389800015 389800016 389800017 389800018 389800019 389800020 389800021 389800022 389800023 389800024 389801001 389801002 389801003 389801004 389801005 389801006 389801007 389801008 389801009 389801010 389801011 389801012 389801013 389801014 389801015 389801016 389801017 389801018 389801019 389801020 389801021 389801022 389801023 389801024 389801025 389801026 389801027 389801028 389801029 389801030 389801031 389802001 389802002 389802003 389802004 389802005 389802006 389802007 389802008 389802009 389802010 389802011 389802012 389802013 389802014 389802015 389802016 389802017 389802018 389802019 389802020 389810001 389810002 389810003 389810004 389810005 389810006 389810007 389810008 389810009 389810010 389810011 389810012 389810013 389810014 389810015 389810016 389810017 389810018 389810019 389810020 389810021 389810022 389810023 389810024 389810025 389810026 389810027 389810028 389810029 389810030 389810031 389810032 389810033 389810034 389810035 389811001 389811002 389811003 389811004 389811005 389811006 389811007 389811008 389811009 389811010 389811011 389812001 389812002 389812003 389812004 389812005 389812006 389812007 389812008 389812009 389812010 389812011 389812012 389812013 389812014 389812015 389812016 389812017 389820001 389820002 389820003 389820004 389820005 389820006 389820007 389821001 389821002 389821003 389821004 389821005 389821006 389822001 389822002 389822003 389822004 389822005 389822006 389822007 389822008 389822009 389822010 389822011 389822012 389822013 389822014 389822015 389822016 389822017 389822018 389822019 389822020 389822021 389822022 389822023 389822024 389822025 389822026 389822027 389822028 389822029 389822030 389822031 Assessor's Parcel Numbers
389822032 389822033 389822034 389822035 389822036 389822037 389823001 389823002 389823003 389823004 389823005 389823006 389823007 389823008 389830001 389830002 389830003 389830004 389830005 389830006 389830007 389830008 389830009 389830010 389830011 389830012 389830013 389830014 389830015 389830016 389830017 389830018 389830019 389830020 389830021 389830022 389831001 389831002 389831003 389831004 389831005 389831006 389831007 389831008 389831009 389831010 389831011 389831012 389831013 389831014 389831015 389831016 389831017 389831018 389831019 389831020 389832001 389832002 389832003 389832004 389832005 389832006 389832007 389832008 389832009 389832010 389832011 389840001 389840002 389840003 389840004 389840005 389840006 389840007 389840008 389840009 389840010 389840011 389840012 389840013 389840014 389840015 389840016 389840017 389840018 389840019 389840020 389840021 389840022 389840023 389840024 389841001 389841002 389841003 389841004 389841005 389841006 389841007 389841008 389841009 389841010 389841011 389841012 389841013 389841014 389841015 389841016 389841017 389841018 389841019 389841020 389841021 389841022 389841023 389841024 389841025 389841026 389841027 389841028 389841029 389841030 389841031 389841032 389841033 389841034 389841035 389841036 389841037 389841038 389841039 389841040 389841041 389841042 389841043 389841044 389841045 389841046 389841047 389841048 389841049 389841050 389841051 389841052 389841053 389841054
ANNEXATION NO. 25

ASSESSOR'S PARCEL NUMBERS
349240006 349240044 349240054 349240075
349240034 349240045 349240055 349380024
349240038 349240046 349240056 349380025
349240043 349240047 349240072
6)
Second Reading and Adoption of an Ordinance for Annexation No. 25 Into Community Facilities District No. 2015-2 (Maintenance Services) for Tuscany Valley & Tuscany Crest
Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

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:Shannon Buckley, Assistant City Manager
Date:July 22, 2025
Subject:Second Reading and Adoption of an Ordinance for Annexation No. 25 Into Community Facilities District No. 2015-2 (Maintenance Services) for Tuscany Valley & Tuscany Crest
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE LEVY OF SPECIAL TAXES.

Background
At the July 8, 2025, Council meeting, this ordinance was introduced for first reading. This is the required second reading and adoption. The Ordinance will become effective 30 days from the date of adoption.

Fiscal Impact
There is no fiscal impact associated with the recommended action of this item.

Attachments
Attachment 1 - Location Map
Attachment 2 - Ordinance
Administrative Services

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COMMUNITY FACILITIES DISTRICT NO. 2015-2
ANNEXATION NO. 25

PROJECT MAP

ORDINANCE NO. 2025-___
AN ORDINANCE AMENDING ORDINANCE NO. 2016-1359 OF THE

CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2015-2 OF THE CITY OF

LAKE ELSINORE (MAINTENANCE SERVICES) AUTHORIZING THE

LEVY OF SPECIAL TAXES
Whereas, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on July 28, 2015, the City Council (the “City Council”) of the City of Lake Elsinore (the “City”) adopted Resolution No. 15-078 establishing Community Facilities District No. 2015-2 (Maintenance Services) of the City of Lake Elsinore, County of Riverside, State of California (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 (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and
Whereas, on May 10, 2016, the City Council adopted Ordinance No. 2016-1359 entitled, “An Ordinance of the City of Council of the City of Lake Elsinore, California, acting in its capacity as the legislative body of Community Facilities District No. 2015-2 of the City of Lake Elsinore (Maintenance Services) authorizing the levy of special tax” (“Ordinance No. 2015-1359”), pursuant to which the City Council levied special taxes with the CFD No. 2015-2; and Whereas, on May 27, 2025, the City Council adopted Resolution No. 2025-25 entitled “A Resolution of the City Council of the City of Lake Elsinore 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. 25) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2015-2 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for July 8, 2025; and Whereas, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2015-2, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and
Whereas, on July 8, 2025, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services by the CFD No. 2015-2; and Whereas, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2015-2, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and Whereas, subsequent to said public hearing, the City Council adopted Resolution No. 25-___ entitled “A Resolution of the City Council of the City of Lake Elsinore, California, Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 25)” (the “Resolution Calling the Election”) on July 8, 2025 wherein the City Council submitted the question of levying a special tax in territory proposed to be annexed to the CFD No. 2015-2 at the rate and according to the method of apportionment described therein; and
Whereas, at said special election on July 8, 2025, the qualified electors of the territory proposed to be annexed to the CFD No. 2015-2 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and Ord. No. 2025-____

Page 2 of 23 ends

3 9
1 5
9 Whereas, subsequent to said special election, the City Council adopted Resolution No. 25-___ entitled “A Resolution of the City Council of the City of Lake Elsinore, California, Declaring the Election Results for Community Facilities District No. 2015-2 (Maintenance Services) (Annexation No. 25)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2015-2 (such territory being referred to herein as “Annexation No. 25”).

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

Section 2.Amendment to Exhibit B of Ordinance No. 2016-1359. Ordinance No. 2016-1359 is hereby amended by including Exhibit B to Ordinance No. 2016-1359 attached hereto.

Section 3.Amendment to Section 2 of Ordinance No. 2016-1359. Section 2 of Ordinance No. 2016-1359 is hereby amended by deleting it in its entirety and replacing it with the following:

Section 2.By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District which are subject to taxation which are identified in Exhibit B attached hereto, pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Exhibit A attached hereto, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be finance by the District, are provided through such financing within the District.

Section 4.Future Annexations. The annexation of additional territory into the CFD No. 2015- 2 was contemplated as part of the adoption of Resolution No. 15-066. The boundaries of the territory within which any property may annex to the CFD No. 2015-2 are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2015-2 (Maintenance Services) 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, at Page 74, and as Document No. 2015-0369598 in the official records of the County of Riverside. Following a public hearing and the adoption of resolutions required by the Act for any additional annexations of property within said potential annexation area, Revised Exhibit B of Ordinance No. 2016-1359 shall be further amended to include any additional territory annexed to the CFD No. 2015-2. The City Council hereby authorizes and directs the officers, employees, and agents of the City to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Section 4 of this Ordinance to further include Exhibit B to Ordinance No. 2016-1359.

Section 5.Severability. If for any reason any portion of this Ordinance is found to be invalid, or if the special taxes found inapplicable to any particular parcel within the CFD No. 2015-2, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the CFD No. 2015-2 shall not be affected.

Ord. No. 2025-____

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3 9
1 5
9 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California , on this 22nd day of July 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
City of Lake Elsinore 4
Community Facilities District No. 2015-2 (Maintenance Services)

EXHIBIT A

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.

City of Lake Elsinore 5
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 1 st 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.
“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 City of Lake Elsinore 6
Community Facilities District No. 2015-2 (Maintenance Services) 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.
“Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on City of Lake Elsinore 7
Community Facilities District No. 2015-2 (Maintenance Services) 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.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of City of Lake Elsinore 8
Community Facilities District No. 2015-2 (Maintenance Services) Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s 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.

TABLE 1

MAXIMUM SPECIAL TAX A RATES

City of Lake Elsinore 9
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

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 10
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

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 11
Community Facilities District No. 2015-2 (Maintenance Services) TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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 12
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.

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 13
Community Facilities District No. 2015-2 (Maintenance Services)

APPENDIX A

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

TAX ZONE 28
TRACT NO. 33725
Item Description Estimated Cost
1 Streetlights $16,623
2 Streets $59,875
3 Drainage $21,778
4 Parks $48,844
5 Graffiti $937
6 Reserves $4,578
7 Admin $14,806
Total $167,441
TAX ZONE 29
TRACT NO. 25475
Item Description Estimated Cost
1 Streetlights $5,995
2 Streets $23,347
3 Drainage $8,638
4 Parks $31,365
5 Trails $361
6 Graffiti $601
7 Reserves $1,771
8 Admin $7,031
Total $79,109
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 28 & 29.

TAX ZONE 28 (CONTINGENT SERVICES)
TRACT NO. 33725
Item Description Estimated Cost
1 Drainage $37,519
2 Reserves $3,752
3 Admin $3,752
Total $45,023
TAX ZONE 29 (CONTINGENT SERVICES)
TRACT NO. 25475
Item Description Estimated Cost
1 Drainage $17,121
2 Reserves $1,712
3 Admin $1,712
Total $20,545
TAX ZONE 28
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 $821 $221
TAX ZONE 29
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 $604 $157
TAX ZONE 28
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $5,797 $221
TAX ZONE 29
FY 2025-26 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $4,056 $157

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 To Be Determined
28 TTM 33725 2025-26 $821 / RU $221 / RU25 29 TTM 25475 2025-26 $604 / RU $157 / RU KB Home California
Management Services

APPENDIX B

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

APPENDIX C

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

PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES

EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2015-2 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2025-26
(Effective as of July 22, 2025)

ASSESSOR'S PARCEL NUMBERS
Annexation Zone Owner Assessor's Parcel Numbers
Original 1 Tractor Supply 377-120-068
1 2 Pardee Homes See Below
2 3 Pasadena Industrial Park, LLC 377-120-032, -043 thru -047, -069, and -071
3 4 ARI Chaney Street, LLC 377-140-028 thru -030, -032 thru -035, -038 thru -041, -044 thru -046
4 5 LE Cottage Lane, LLC See Next Page
5 6 Lake Elsinore CCR, LLC 365-030-048
6 7 Pardee Home See Next Page
7 8 Central Plaza 377-081-002 thru -009
8 9 Nichols Rd Partners, LLC
389-200-038 (por.),
389-210-008 (por.), 389-210-032,
389-210-034, and 389-210-036 (por.)
8 10 Nichols Rd Partners, LLC 389-200-046, -049, and -053 9 11
Donald S. Clurman &
Three Strands Properties, LLC &
Spectrum Communities, LLC
See Next Page
10 12 JLJ, LP See Next Page
11 13 SRZ Yuma, LLC 377-081-035
12 14 SPT AREP III Tuscany Associates
349-240-006, -043, -044, -045, -046,
-047, -054, -055, -056 and
349-380-024, -025
12 15 SPT AREP III Tuscany Associates 349-240-034, -038, -072, -075 13 16 Wal-Mart Real Estate Business Trust 377-090-052, -053, -054, -055, -056, -057
14 17 Tri Pointe Homes IE-SD, Inc. 363-940-038
15 18 Boos-Up Lake Elsinore 377-243-024
16 19 Pennington Industrial, LLC 377-160-051, -052, -053 17 20 Lake Elsinore Lakeshore, LLC and
Erin Crowder 379-230-001 and 379-230-002
18 21 Tri Pointe Homes IE-SD, Inc. 379-060-005, -022, and -027 19 22 Vista Emerald, LLC 370-050-019, -020, -032
20 23 Pulte Home Co. See Next Page
21 24 Lake Street Properties, LP 390-130-050
22 25 RA & B Development, LLC 377-220-037
23 26 Tri Pointe Homes IE-SD, Inc. 365-230-005, -006, -011, -012, -009 24 27 Cambern & Central North and Evergreen-
Cambern & Central South Land 377-020-030, -031, -032, -034, -035 28 25 29 KB Home Cal Management Services, LLC
349-240-006, -034, -038, -043, -044,
-045, -046, -047, -054, -055, -056, -
072, -075, 349-380-024 and -025
EXHIBIT B (cont.)
ANNEXATION NO. 1

ANNEXATION NO. 4

ANNEXATION NO. 9

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.

Page 1 of 3 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:July 22, 2025
Subject:Resolution of Consideration of Change Proceedings for Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest)
Recommendation
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.

Background
The City of Lake Elsinore (the “City”) formed the Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (the “District”) and designated two improvement areas therein (each an “Improvement Area” and together the “Improvement Areas”) pursuant to the Mello-Roos Community Facilities District Act of 1982. The District is located to the south of Highway 74, at the intersection of Greenwald Avenue and Little Valley Road, in the northeastern part of the City. KB HOME Cal Management Services LLC, a Delaware limited liability company, is the landowner within the District (the “Developer”). At build-out, development within Improvement Area No. 1 and Improvement Area No. 2 is expected to include 204 and 131 homes, respectively, for a total of 335 homes within the District.

Page 2 of 3 ends

Homebuilding within the District has not yet commenced. Based on updated expected product types and estimated home pricing to be developed in the District, the Developer has requested that the District undertake proceedings to amend the Rate and Method of Apportionment of Special Taxes for each Improvement Area with each Second Amended and Restated Rate and Method of Apportionment attached to the Resolution of Consideration presented at this meeting (each a “Second Amended RMA”).

The current annual Special Tax rates for a single-family home within Improvement Area No. 1 range from $2,936 to $3,441. If the current rate and method of apportionment of special tax for Improvement Area No. 1 is approved, the annual Special Tax rates for a single-family home within Improvement Area No. 1 will range from $3,457 to $4,719.

The current annual Special Tax rates for a single-family home within Improvement Area No. 2 range from $3,036 to $3,511. If the current rate and method of apportionment of special tax for Improvement Area No. 2 is approved, the annual Special Tax rates for a single-family home within Improvement Area No. 2 will range from $3,619 to $4,882.

The current authorized indebtedness for Improvement Area No. 1 is $14,000,000. If the amended authorized indebtedness for Improvement Area No. 1 is approved, the authorized indebtedness for Improvement Area No. 1 will be $16,000,000.

The current authorized indebtedness for Improvement Area No. 2 is $10,000,000. If the amended authorized indebtedness for Improvement Area No. 2 is approved, the authorized indebtedness for Improvement Area No. 2 will be $12,000,000.

On June 10, 2025, the City Council adopted Resolution No. 2025-30, which declared the intention of the City Council to amend the rate and method of apportionment of special taxes and increase the authorized indebtedness for each of Improvement Area No. 1 and Improvement Area No. 2 of the District. The resolution presented at this meeting rescinds the foregoing resolution adopted on June 10, 2025.

Discussion
Approval of the attached resolution is the first step in the process to effectuate the changes discussed above. The attached resolution declares the District’s intention to consider the proposed changes and calls a public hearing on the proposed changes.

Fiscal Impact
The Developer has made a deposit to pay for the costs of the change proceedings. The Developer will be reimbursed for such costs if and when bonds are issued for the District.

Page 3 of 3 ends

The District will annually levy special taxes on all of the taxable property within each Improvement Area of the District in accordance with the applicable Second Amended RMA in order to pay for the costs of facilities, debt service on bonds for the respective Improvement Area and administration of the District. Any bonds issued by the District for each Improvement Area are not obligations of the City and will be secured solely by the Special Taxes levied in the applicable Improvement Area.

Attachments
Attachment 1 - Resolution of Consideration
Attachment 2 - Landowner Petition
Administrative Services
RESOLUTION NO. 2025-___

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
Whereas, on March 23, 2021, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2021-25 (the “Resolution of Intention”) stating its intention to form Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (“Community Facilities District No. 2021-1” or the “District”) and designate Improvement Area No. 1 (“Improvement Area No. 1”) and Improvement Area No. 2 (“Improvement Area No. 2” and together with Improvement Area No. 1, the “Improvement Areas”) therein pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
Whereas, on March 23, 2021, the City Council also adopted Resolution No. 2021-26 stating its intention to incur bonded indebtedness within Improvement Area No. 1 in the amount not to exceed $14,000,000 and within Improvement Area No. 2 in the amount not to exceed $10,000,000 to finance the facilities and improvements identified in Resolution No. 2021-53 (collectively, the “Improvements”); and the incidental expenses to be incurred in financing the Improvements and forming and administering the District (the “Incidental Expenses”); and Whereas, a notice calling a public hearing on April 27, 2021, was published as required by law relative to the intention of the City Council to establish Community Facilities District No. 2021-1 and to incur bonded indebtedness within Community Facilities District No. 2021-1 for the Improvement Areas; and
Whereas, on April 27, 2021, the City Council conducted a noticed public hearing to determine whether it should proceed with the establishment of Community Facilities District No. 2021-1, issue bonds for the benefit of Community Facilities District No. 2021-1 to pay for the Improvements and Incidental Expenses and authorize the rate and method of apportionment of the special taxes for Improvement Area No. 1 in the form attached as Attachment C to the Resolution of Intention (the “Improvement Area No. 1 Rate and Method”) and the rate and method of apportionment of the special taxes for Improvement Area No. 2 in the form attached as Attachment D to the Resolution of Intention (the “Improvement Area No. 2 Rate and Method”) to be levied within Improvement Area No. 1 and Improvement Area No. 2, respectively, for the purposes described in the Resolution of Formation (defined below); and Whereas, at the April 27, 2021, public hearing all persons desiring to be heard on all matters pertaining to the establishment of Community Facilities District No. 2021-1, the levy of the special taxes in accordance with the Improvement Area No. 1 Rate and Method and the Improvement Area No. 2 Rate and Method and the issuance of bonds within Community CC Reso. No. 2025-

Page 2 of 32 ends

Facilities District No. 2021-1 for Improvement Area No. 1 and Improvement Area No. 2 to pay for the cost of the proposed Improvements and Incidental Expenses were heard and a full and fair hearing was held; and
Whereas, after the public hearing, on April 27, 2021, the City Council adopted Resolution Nos. 2021-53 (the “Resolution of Formation”) and 2021-54 which formed the District, designated Improvement Area No. 1 and Improvement Area No. 2 therein and called a special election on April 27, 2021, within each of Improvement Area No. 1 and Improvement Area No. 2 on propositions relating to the levying of the special taxes, the incurring of bonded indebtedness and the establishment of an appropriations limit for the District, which were approved by more than two-thirds vote by the qualified electors on April 27, 2021; and Whereas, pursuant to Resolution No. 2021-55, adopted on April 27, 2021, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, declared the results of the special elections and directed the recording of notices of special tax liens within Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2021-1; and
Whereas, on December 14, 2021, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, adopted Resolution No. 2021-130, stating its intention to consider the approval of an Amended and Restated Rate and Method of Apportionment for each of Improvement Area No. 1 and Improvement Area No. 2 (the “Amended and Restated Rate and Methods”); and
Whereas, a notice calling a public hearing on January 25, 2022, was published as required by law relative to the intention of the City Council to consider the approval of the Amended and Restated Rate and Methods; and
Whereas, on January 25, 2022, this Council conducted a noticed public hearing to determine whether it should proceed with the approval of the Amended and Restated Rate and Methods; and
Whereas, at the January 25, 2022, public hearing all persons desiring to be heard on all matters pertaining to the approval of the Amended and Restated Rate and Methods were heard and a full and fair hearing was held; and
Whereas, after the public hearing, on January 25, 2022 the City Council adopted Resolution No. 2022-9 which approved the Amended and Restated Rate and Method and called a special election on January 25, 2022, within each of Improvement Area No. 1 and Improvement Area No. 2 on a proposition relating to the approval of the Amended and Restated Rate and Method, which was approved by more than two-thirds vote by the qualified electors on January 25, 2022; and
Whereas, pursuant to Resolution No. 2022-10, adopted on January 25, 2022, the City Council, acting as the legislative body of Community Facilities District No. 2021-1, declared the results of the special elections and directed the recording of notices of special tax liens within Improvement Area No. 1 and Improvement Area No. 2 of Community Facilities District No. 2021-1; and
Whereas, the District has received a petition signed by KB HOME Cal Management Services LLC, a Delaware limited liability company (the “Owner”), which owns all of the land CC Reso. No. 2025-

Page 3 of 32 ends

within Community Facilities District No. 2021-1, the boundaries of which are described herein in Attachment “A,” which petition meets the requirements of Section 53332 of the Act, requesting that the District initiate proceedings to approve the new rate and method of apportionment for Improvement Area No. 1, attached hereto as Attachment “B” (the “Second Amended and Restated Improvement Area No. 1 Rate and Method”) and the new rate and method of apportionment for Improvement Area No. 2, attached hereto as Attachment “C” (the “Second Amended and Restated Improvement Area No. 2 Rate and Method”); and Whereas, the City Council previously approved the form of a Joint Community Facilities Agreement (the “JCFA”) to be entered into by the District, the Owner and 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 City Council, acting as the legislative body of the District, desires to authorize certain revisions to the JCFA, which revisions are included in the form of JCFA on file with the City Clerk; and Whereas, the City Council adopted Resolution No. 2025-30 on June 10, 2025 relating to the consideration of an amended and restated rate and method of apportionment and an increase of the authorized indebtedness for each of Improvement Area No. 1 and Improvement Area No. 2 of the District and the City Council desires to rescind Resolution No. 2025-30; and

NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2021-1 OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST), DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the District.

Section 2. The City Council, acting as the legislative body of the District, declares its intention to conduct proceedings pursuant to the Act to consider (i) amending and restating the Amended and Restated Improvement Area No. 1 Rate and Method with the Second Amended and Restated Improvement Area No. 1 Rate and Method and amending and restating the Amended and Restated Improvement Area No. 2 Rate and Method with the Second Amended and Restated Improvement Area No. 2 Rate and Method and (ii) amending the authorized indebtedness for Improvement Area No. 1 from $14,000,000 to $16,000,000 and amending the authorized indebtedness for Improvement Area No. 2 from $10,000,000 to $12,000,000.

Section 3. The Improvements proposed to be provided within the District are public facilities as defined in the Act. The Improvements and Incidental Expenses authorized to be financed by the District are described in the Resolution of Formation. 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 Improvements for the benefit of the District.

Section 4. A public hearing (the “Hearing”) on the levy of special taxes in Improvement Area No. 1 in accordance with the Second Amended and Restated Improvement Area No. 1 Rate and Method and in Improvement Area No. 2 in accordance with the Second Amended and Restated Improvement Area No. 2 Rate and Method, increasing the authorized bonded indebtedness limit with respect to Improvement Area No. 1 and with respect to Improvement Area No. 2, shall be held at 7:00 p.m., or as soon thereafter as practicable, on August 26, 2025, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to submit the proposed Second Amended and Restated Improvement Area CC Reso. No. 2025-

Page 4 of 32 ends

No. 1 Rate and Method to the qualified electors of Improvement Area No. 1, a special election will be held within Improvement Area No. 1 to authorize the Second Amended and Restated Improvement Area No. 1 Rate and Method and to authorize increasing the authorized indebtedness for Improvement Area No. 1 from $14,000,000 to $16,000,000 in accordance with the procedures contained in Government Code Section 53326. If such election is 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 Improvement Area No. 1 at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within Improvement Area No. 1.

Should the City Council determine to submit the proposed Second Amended and Restated Improvement Area No. 2 Rate and Method to the qualified electors of Improvement Area No. 2, a special election will be held within Improvement Area No. 2 to authorize the Second Amended and Restated Improvement Area No. 2 Rate and Method and to authorize increasing the authorized indebtedness for Improvement Area No. 2 from $10,000,000 to $12,000,000 in accordance with the procedures contained in Government Code Section 53326. If such election is 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 Improvement Area No. 2 at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within Improvement Area No. 2.

Ballots for each special election may be distributed by mail or by personal service.

Section 5. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the District, may appear and be heard.

Section 6. 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 within Community Facilities District No. 2021-1. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of Community Facilities District No. 2021-1 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 District and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 7. Resolution No. 2025-30 is hereby rescinded and shall be of no further effect.

Section 8. This Resolution shall be effective upon its adoption.

Section 9. 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 22nd day of July 2025.

CC Reso. No. 2025-

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_____________________________
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 July 22, 2025 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2025-

Page 1 of 32 ends

ATTACHMENT “A”

DESCRIPTION OF PROPERTY WITHIN THE DISTRICT
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows:

Improvement Area No. 1
349-240-006
349-380-024
349-380-025
349-240-043
349-240-044
349-240-045
349-240-046
349-240-047
349-240-054
349-240-055
349-240-056
Improvement Area No. 2
349-240-034
349-240-038
349-240-072
349-240-075
CC Reso. No. 2025-

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B-1
4880-7873-3828v6/022042-0035
ATTACHMENT “B”

PROPOSED SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2021-1

OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
IMPROVEMENT AREA NO. 1
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. 2021-1 (Tuscany Valley/Crest) ("CFD No. 2021-1 IA 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. 2021-1 IA 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:
"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. 2021-1 IA 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. 2021-1 IA 1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 IA 1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2021-1 IA 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. 2021-1 IA 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. 2021-1 IA 1 for any other administrative purposes of CFD No. 2021-1 IA 1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "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 CC Reso. No. 2025-

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B-2
4880-7873-3828v6/022042-0035
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. "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 CFD No. 2021-1 IA 1 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 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. "CFD” or “CFD No. 2021-1 IA 1" means Improvement Area No. 1 of CFD No. 2021-1 as identified on the boundary map for CFD No. 2021-1.
“CFD No. 2021-1" means Community Facilities District No. 2021-1 (Tuscany Valley/Crest) established by the City under the Act.
"CFD No. 2021-1 IA 1 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. 2021-1 IA 1 have been pledged.

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“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2021-1 IA 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 1 st 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 1st 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 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. 2021-1 IA 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. "Rate and Method of Apportionment" means this Second Amended and Restated Rate and Method of Apportionment of Special Tax for CFD No. 2021-1 IA 1.
"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. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2021-1 IA 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 CFD No. 2021-1 IA 1 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 CFD No. 2021-1 IA 1 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. 2021-1 IA 1 or the payment of debt service on CFD No. 2021-1 IA 1 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 CFD No. 2021-1 IA 1 Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1 IA 1, which are not Exempt Property.
“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.

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“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. 2021-1 IA 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.

Assessor’s Parcels of Developed Property shall further be classified as Residential Property or Non- Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as 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.

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 of Section D. a. Assigned Special Tax
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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 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

1. Single Family Residential Property RU Less than 1,600 sq. ft $3,457

2. Single Family Residential Property RU 1,600 sq. ft to 1,750 sq. ft $3,563

3. Single Family Residential Property RU 1,751 sq. ft to 1,900 sq. ft $3,748

4. Single Family Residential Property RU 1,901 sq. ft to 2,050 sq. ft $3,913

5. Single Family Residential Property RU 2,051 sq. ft to 2,200 sq. ft $3,966

6. Single Family Residential Property RU 2,201 sq. ft to 2,350 sq. ft $4,020

7. Single Family Residential Property RU 2,351 sq. ft to 2,500 sq. ft $4,204

8. Single Family Residential Property RU 2,501 sq. ft to 2,650 sq. ft $4,302

9. Single Family Residential Property RU 2,651 sq. ft to 2,800 sq. ft $4,438

10. Single Family Residential Property RU 2,801 sq. ft to 2,950 sq. ft $4,574

11. Single Family Residential Property RU Greater than 2,950 sq. ft $4,719

12. Multifamily Property Acre N/A $31,949

13. Non-Residential Property Acre N/A $31,949
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.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a 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
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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 $31,949 per Acre.

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 $31,949 per Acre. 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 $31,949 per Acre.

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 that is not Exempt Property pursuant to the provisions of Section F
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 $31,949 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 rates in Table 1 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.

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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 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 sum of all Taxable Property to less than

28.95 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 28.95 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 28.95 Acres 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:

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“CFD Public Facilities” means $13,500,000 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. 2021-1 IA 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. 2021-1 IA 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 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 News-Record 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 CFD No. 2021-1 IA 1 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 CC Reso. No. 2025-

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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.

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.

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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”).

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.

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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
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. 2021-1 IA 1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 IA 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. 2021-1 IA 1 have been satisfied.

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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. 2021-1 IA 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 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.

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ATTACHMENT “C”

PROPOSED SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2021-1

OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
IMPROVEMENT AREA NO. 2
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. 2021-1 (Tuscany Valley/Crest) ("CFD No. 2021-1 IA 2"). 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. 2021-1 IA 2, 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.

B. DEFINITIONS
The terms hereinafter set forth have the following meanings:
"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. 2021-1 IA 2: 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. 2021-1 IA 2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 IA 2 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2021-1 IA 2 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. 2021-1 IA 2 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. 2021-1 IA 2 for any other administrative purposes of CFD No. 2021-1 IA 2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "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 CC Reso. No. 2025-

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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. "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 CFD No. 2021-1 IA 2 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 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. "CFD” or “CFD No. 2021-1 IA 2" means Improvement Area No. 2 of CFD No. 2021-1 as identified on the boundary map for CFD No. 2021-1.
“CFD No. 2021-1" means Community Facilities District No. 2021-1 (Tuscany Valley/Crest) established by the City under the Act.
"CFD No. 2021-1 IA 2 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. 2021-1 IA 2 have been pledged.

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“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2021-1 IA 2.
“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 1 st 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 1st 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 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. 2021-1 IA 2 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.

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"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.
“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. "Rate and Method of Apportionment" means this Second Amended and Restated Rate and Method of Apportionment of Special Tax for CFD No. 2021-1 IA 2.
"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. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2021-1 IA 2 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 CFD No. 2021-1 IA 2 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 CFD No. 2021-1 IA 2 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. 2021-1 IA 2 or the payment of debt services on CFD No. 2021-1 IA 2 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 CFD No. 2021-1 IA 2 Bonds pursuant to the Indenture. "Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1 IA 2, which are not Exempt Property.
“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.

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“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.

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. 2021-1 IA 2 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.

D. MAXIMUM SPECIAL TAX

4. 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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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 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit

2. Single Family Residential Property RU Less than 1,600 sq. ft $3,619

2. Single Family Residential Property RU 1,600 sq. ft to 1,750 sq. ft $3,726

3. Single Family Residential Property RU 1,751 sq. ft to 1,900 sq. ft $3,911

4. Single Family Residential Property RU 1,901 sq. ft to 2,050 sq. ft $4,076

5. Single Family Residential Property RU 2,051 sq. ft to 2,200 sq. ft $4,130

6. Single Family Residential Property RU 2,201 sq. ft to 2,350 sq. ft $4,183

7. Single Family Residential Property RU 2,351 sq. ft to 2,500 sq. ft $4,368

8. Single Family Residential Property RU 2,501 sq. ft to 2,650 sq. ft $4,465

9. Single Family Residential Property RU 2,651 sq. ft to 2,800 sq. ft $4,601

10. Single Family Residential Property RU 2,801 sq. ft to 2,950 sq. ft $4,737

11. Single Family Residential Property RU Greater than 2,950 sq. ft $4,882

12. Multifamily Property Acre N/A $31,711

13. Non-Residential Property Acre N/A $31,711
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.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a 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:

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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 $31,711 per Acre.

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 $31,711 per Acre. 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.

5. 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 $31,711 per Acre.

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.

6. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property pursuant to the provisions of Section F
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 $31,711 multiplied by the Acreage of such Assessor’s Parcel.

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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.

19.51 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 19.51 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 19.51 Acres 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:

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“CFD Public Facilities” means $9,000,000 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. 2021-1 IA 2, 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. 2021-1 IA 2.
“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 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 News-Record 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 CFD No. 2021-1 IA 2 Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

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 CC Reso. No. 2025-

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below):

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

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.

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

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

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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.

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

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. 2021-1 IA 2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 IA 2 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. 2021-1 IA 2 have been satisfied.

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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. 2021-1 IA 2 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.

1 4919-0360-3258v3/022042-0035

PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE

ELSINORE REQUESTING INSTITUTION OF CHANGE
PROCEEDINGS FOR COMMUNITY FACILITIES DISTRICT NO. 2021- 1 OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)

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

1. The undersigned (the “Owner”) is the owner of more than 25% of the land described in Exhibit A hereto as land included within Improvement Area No. 1 (“Improvement Area No. 1”) and more than 25% of the land described in Exhibit A hereto as land included within Improvement Area No. 2 (“Improvement Area No. 2” and together with Improvement Area No. 1, the “Property”), which land is all of the land included within the boundaries of Community Facilities District No. 2021-1 of the City of Lake Elsinore (Tuscany Valley/Crest) (the “District”).

The Property is located within the City of Lake Elsinore (the “City”) in the County of Riverside.

2. The Owner requests, pursuant to Chapter 2.5 (commencing with Section 53311), Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), that the City Council of the City (the “City Council”) institute proceedings to approve the new rate and method of apportionment for Improvement Area No. 1, attached hereto as Exhibit B (the “Second Amended and Restated Improvement Area No. 1 Rate and Method”) and the new rate and method of apportionment for Improvement Area No. 2, attached hereto as Exhibit C (the “Second Amended and Restated Improvement Area No. 2 Rate and Method”).

3. The Owners further request that the City Council institute proceedings to increase the authorized bonded indebtedness limit within Improvement Area No. 1 of the District from $14,000,000 to $16,000,000 and increase the authorized bonded indebtedness limit within Improvement Area No. 2 of the District from $10,000,000 to $12,000,000; and

4. The Owner further requests that the City Council authorize the levy of special taxes in accordance with the Second Amended and Restated Improvement Area No. 1 Rate and Method in Improvement Area No. 1 and in accordance with the Second Amended and Restated Improvement Area No. 2 Rate and Method in Improvement Area No. 2 to pay the costs of the improvements and incidental expenses of the District previously authorized in connection with the formation of the District (the “Facilities”) and to pay principal of, interest and premium, if any, on the bonds issued for Improvement Area No. 1 and Improvement Area No. 2, as applicable, in order to contribute to the financing of the Facilities and the incidental expenses.

5. The Owner further requests that, upon the sale of bonds for Improvement Area No. 1, the City Council, as legislative body of the District, annually levy special taxes in accordance with the Second Amended and Restated Improvement Area No. 1 Rate and Method on the property within Improvement Area No. 1 for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on such bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District.

6. The Owner further requests that, upon the sale of bonds for Improvement Area No. 2, the City Council, as legislative body of the District, annually levy special taxes in accordance with the Second Amended and Restated Improvement Area No. 2 Rate and Method 2 4919-0360-3258v3/022042-0035
on the property within Improvement Area No. 2 for the construction, acquisition and rehabilitation of the Facilities, for the payment of the aggregate amount of principal of and interest owing on such bonds in each fiscal year, including the maintenance of reserves therefor, and for the payment of administrative expenses of the District.

7. The Owner has advanced to the City the amounts necessary to pay for the costs related to the change proceedings for the District, which amounts will be reimbursed, without interest, from the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is expected to be governed by the terms of that certain Acquisition, Construction and Funding Agreement (the “Acquisition Agreement”) entered into by and between the City and the Owner relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced by the Owner as set forth in the Acquisition Agreement.

Dated: _______, 2025
KB HOME Cal Management Services LLC,
a Delaware limited liability company

By:

Name: Scott Hansen
Title: VP Forward Planning

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EXHIBIT A

LEGAL DESCRIPTION
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows:

Improvement Area No. 1

349-240-006
349-380-024
349-380-025
349-240-043
349-240-044
349-240-045
349-240-046
349-240-047
349-240-054
349-240-055
349-240-056

Improvement Area No. 2

349-240-034
349-240-038
349-240-072
349-240-075

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EXHIBIT B

PROPOSED SECOND AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF
COMMUNITY FACILITIES DISTRICT NO. 2021-1

OF THE CITY OF LAKE ELSINORE (TUSCANY VALLEY/CREST)
IMPROVEMENT AREA NO. 1

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. 2021-1 (Tuscany Valley/Crest) ("CFD No. 2021-1 IA 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. 2021-1 IA 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:

"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. 2021-1 IA 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. 2021-1 IA 1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 IA 1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2021-1 IA 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. 2021-1 IA 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. 2021-1 IA 1 for any other administrative purposes of CFD No. 2021-1 IA 1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"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 B-2
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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.

"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 CFD No. 2021-1 IA 1 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 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.

"CFD” or “CFD No. 2021-1 IA 1" means Improvement Area No. 1 of CFD No. 2021-1 as identified on the boundary map for CFD No. 2021-1.

“CFD No. 2021-1" means Community Facilities District No. 2021-1 (Tuscany Valley/Crest) established by the City under the Act.

"CFD No. 2021-1 IA 1 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. 2021-1 IA 1 have been pledged.

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“City” means the City of Lake Elsinore.
"City Council" means the City Council of the City of Lake Elsinore, acting as the Legislative Body of CFD No. 2021-1 IA 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 1st 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 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. 2021-1 IA 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.

"Rate and Method of Apportionment" means this Second Amended and Restated Rate and Method of Apportionment of Special Tax for CFD No. 2021-1 IA 1.

"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.

“Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.

"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2021-1 IA 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 CFD No. 2021-1 IA 1 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 CFD No. 2021-1 IA 1 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. 2021-1 IA 1 or the payment of debt service on CFD No. 2021-1 IA 1 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 CFD No. 2021-1 IA 1 Bonds pursuant to the Indenture.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2021-1 IA 1, which are not Exempt Property.

“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.

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“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. 2021-1 IA 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.

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.

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 of Section D.

a. Assigned Special Tax

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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 below.

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY

Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax Per
Taxable Unit