Agenda packet — Lake Elsinore City Council, January 13, 2026 (part 8 of 10)

REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Shannon Buckley, Assistant Executive Director Date: January 13, 2026
Subject: SA Warrant Report Dated December 01, 2025 to December 07, 2025 Recommendation
Receive and file.

Background
The Warrant Report lists all general checks issued for the Successors Agency of the Redevelopment Agency of the City of Lake Elsinore for the above-mentioned period.

Attachments
Attachment 1 – SA Warrant Summary
Attachment 2 – SA Warrant Listing
DECEMBER 01, 2025
TO DECEMBER 07, 2025

CITY OF LAKE ELSINORE SA WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
510 SARDA AREA I, II, & III 3,329.98 $
GRAND TOTAL 3,329.98 $
Attachment 1 1 OF 1
DECEMBER 01, 2025
TO DECEMBER 07, 2025

CITY OF LAKE ELSINORE SA WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
APA26001042 COUNTY OF RIVERSIDE DEPT. OF ENVIRONMENTAL HEALTH $ 1,052.00 APA26001070 RP LANDSCAPE & IRRIGATION 277.98
10569 WILMINGTON TRUST, NATIONAL ASSOCIATION 2,000.00
GRAND TOTAL 3,329.98 $
Attachment 2 1 OF 1

Page 1 of 1 ends

REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Shannon Buckley, Assistant Executive Director Date: January 13, 2026
Subject: SA Warrant Report Dated December 08, 2025 to December 14, 2025 Recommendation
Receive and file.

Background
The Warrant Report lists all general checks issued for the Successors Agency of the Redevelopment Agency of the City of Lake Elsinore for the above-mentioned period.

Attachments
Attachment 1 – SA Warrant Summary
Attachment 2 – SA Warrant Listing
DECEMBER 08, 2025
TO DECEMBER 14, 2025

CITY OF LAKE ELSINORE SA WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
510 SARDA AREA I, II, & III 590.77 $
540 SARDA DIAMOND STADIUM 50,369.00
GRAND TOTAL 50,959.77 $
Attachment 1 1 OF 1
DECEMBER 08, 2025
TO DECEMBER 14, 2025

CITY OF LAKE ELSINORE SA WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
10570 AK SECURITY ALARM LLC 1,699.00 $
10577 COTTER CONSTRUCTION, INC. 48,670.00
10587 LEIBOLD, MCCLENDON & MANN, PC 590.77
GRAND TOTAL 50,959.77 $
Attachment 2 1 OF 1

Page 1 of 1 ends

REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Shannon Buckley, Assistant Executive Director Date: January 13, 2026
Subject: SA Warrant Report Dated December 15, 2025 to December 21, 2025 Recommendation
Receive and file.

Background
The Warrant Report lists all general checks issued for the Successors Agency of the Redevelopment Agency of the City of Lake Elsinore for the above-mentioned period.

Attachments
Attachment 1 – SA Warrant Summary
Attachment 2 – SA Warrant Listing
DECEMBER 15, 2025
TO DECEMBER 21, 2025

CITY OF LAKE ELSINORE SA WARRANT SUMMARY
FUND NO. FUND DESCRIPTION TOTAL
510 SARDA AREA I, II, & III 1,660.00 $
540 SARDA DIAMOND STADIUM 6,250.00
GRAND TOTAL 7,910.00 $
Attachment 1 1 OF 1
DECEMBER 15, 2025
TO DECEMBER 21, 2025

CITY OF LAKE ELSINORE SA WARRANT LIST
WARRANT NO. VENDOR NAME AMOUNT
APA26001185 RP LANDSCAPE & IRRIGATION 1,660.00 $
6250 AK SECURITY ALARM LLC 6,250.00
GRAND TOTAL 7,910.00 $
Attachment 2 1 OF 1

Page 1 of 1 ends

REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Shannon Buckley, Assistant Executive Director Date: January 13, 2026
Subject: Investment Report for November 2025
Recommendation
Receive and file the Investment Report for November 2025.

Background and Discussion
The Investment Report is a listing of all funds invested in the City of Lake Elsinore and includes funds held for the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore as of the date shown on the report.

Fiscal Impact
No fiscal impact.

Attachments
Attachment 1 – Investment Report for November 2025

CITY OF LAKE ELSINORE

INVESTMENT REPORT

BANK DEPOSITS OUTSTANDING BOOK

CASH ACCOUNTS BALANCE IN TRANSIT PAYMENTS BALANCE
Bank Accounts:

General Checking Account $ 6,620,467 $ 49,847 $ (41,909) $ 6,628,405 Cash On Hand:

Cashier Drawers #1 & #2 - - - 300
City of Lake Elsinore Petty Cash Fund - - - 2,000
Total Cash Accounts 6,620,467 49,847 (41,909) 6,630,705

INVESTMENTS
Local Agency Investment Funds 50,885,578 - - 50,885,578 CAMP Investments:

CAMP Pool Account 190,570 - - 190,569.55
U.S. Treasury Bond / Note 26,182,331 - - 26,182,331.08
Municipal Bond / Note 200,000 - - 200,000.00
Federal Agency Commercial Mortgage-Backed Security 8,499,051 - - 8,499,051.46 Federal Agency Bond / Note - - - -
Corporate Note 13,478,027 - - 13,478,026.70
Certificate of Deposit - - - -
Bank Note 525,525 - - 525,525.00
Asset-Backed Security 6,436,684 - - 6,436,683.74
Sub-total Investments 106,397,766 - - 106,397,766
Market Value Adjustment:

Unrealized Gain/(Loss) at 09/30/2025 1,143,327 - - 1,143,327 Total Investments 107,541,093 - - 107,541,093
Total Pooled Cash and Investments $ 114,161,560 $ 49,847 $ (41,909) $ 114,171,798 TOTAL POOLED CASH AND INVESTMENTS $ 114,171,798
I certify that this report accurately reflects all pooled investments and it is in conformity with the investment policy as approved by the City Council on June 24, 2025. A copy of this policy is available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow liquidity to meet the next six months estimated expenditures.

Jason P. Simpson December 3, 2025
City Manager Date

C I T Y O F L A K E E L S I N O R E

INVESTMENT REPORT OF POOLED CASH AND INVESTMENTS
AS OF NOVEMBER 30, 2025

FUND NO FUND NAME AMOUNT
100 General $ 12,157,917
102 Measure Z 12,658,266
106 Affordable Housing In Lieu 1,524,583
107 Developer Agreement Revenue 418,215
108 American Rescue Plan 242,949
109 Road Maintenance and Rehabilitation (SB1) 2,664,194 110 State Gas Tax 811,310
111 TUMF C.I.P. 245,274
112 Measure A 1,912,440
114 SB1186 CASP Education Program 88,415
115 Traffic Safety 18,490
116 City Hall-Public Works DIF 771,220
117 Community Center DIF 707,537
118 Lake Side Facility DIF 996,407
119 Animal Shelter DIF 21,467
121 T.R.I.P.-2014A 2,607
135 Lighting & Landscape Maintenance - Dist. No. 1 2,045,312 140 Geothermal 13,116
202 La Strada RBBD 26,751
203 E.L.S.P. - S.T.I.F. 3,772,352
205 Traffic Impact Fee 929,467
211 Storm Drain C.I.P. 2,048,364
221 Quimby Park C.I.P. 53,240
231 Library C.I.P. 1,096,767
232 City Fire Protection 1,464,681
300 Insurance Service 366,165
305 Information Systems Service 2,598,775
310 Support Service 39,073
315 Fleet Service 77,039
320 Facilities Service 2,777,798
333 CFD 2015-3 Terracina 240,467
335 CFD 2003-2E Canyon Hills Improvement Area E 912
346 CFD 2014-1 Southshore 64,905
350 CFD 98-1 Summerhill 10,004
354 CFD 90-2 Tuscany Hills 536
359 CFD 2021-1 IA-2 Tuscany Valley & Crest Improvement 5,060 361 CFD 2022-2 Lakeshore Improvement 4,460
364 CFD 2023-2 Coastal Mission Trail Improvement 4,679
366 CFD 2005-6 City Center Townhomes 46,187
368 CFD 2006-2 Viscaya 3,438

C I T Y O F L A K E E L S I N O R E

POOLED CASH AND INVESTMENTS BY FUND
AS OF NOVEMBER 30, 2025

FUND NO FUND NAME AMOUNT

C I T Y O F L A K E E L S I N O R E

POOLED CASH AND INVESTMENTS BY FUND
AS OF NOVEMBER 30, 2025
369 CFD 2004-3 Area 1 Rosetta Canyon Improvement Area 66,445 371 CFD 2005-1 Serenity 3,195
372 CFD 2005-2 Alberhill Ranch Improvement Area 24,312
379 CFD 2022-1 Alberhill 1,462
384 CFD 2003-2 Area B Canyon Hills Improvement Area 2,746 385 CFD 2004-3 Area 2 Rosetta Canyon Improvement Area 23,309 388 CFD 2007-6 Holiday Inn Express 22
390 CFD 2003-2 Area C Canyon Hills Improvement Area 227 394 CFD 2005-5 (2012A) Wasson Canyon 1,046
396 CFD 2018-2 Nichols Ranch Improvement Area 42,155
500 Capital Improvement Plan 8,464,866
603 Endowment Trust - Carl Graves 71,229
604 Endowment Trust - Korn Memorial 37,691
605 Public Improvement Trust 3,256,645
606 Mobile Source Air Polution Reduction 248,013
608 Trust Deposit & Pre Paid Expense 1,864,377
617 Successor Agency Housing 42,289,638
620 Cost Recovery System 4,494,027
631 Lake Destratification Equipment Replacement 349,554 Total Pooled Cash & Investments $ 114,171,798

MAXIMUM DIVERSIFICATION CURRENT

TYPES OF SECURITIES PERCENTAGE PERCENTAGE BALANCE
CAMP - Pooled Sweep Account Unlimited 0.18% $ 190,570
U.S. Treasury Bond / Note Unlimited 24.61% $ 26,182,331 Supra-National Agency Bond / Note 30% 0.00% $ -
Municipal Bond / Note Unlimited 0.19% $ 200,000
Federal Agency Collaterized Mortgage Obligation 40% 7.99% $ 8,499,051 Federal Agency Bond / Note Unlimited 0.00% (1) $ -
Banker's Acceptance 40.00% 0.00% $ -
Corporate Note (Includes Bank Note) 30% 13.16% $ 14,003,552 Commercial Paper 25% 0.00% $ -
Negotiable Certificates of Deposit 30% 0.00% $ -
Asset-Backed Security / Collaterized Mortgage 20% 6.05% $ 6,436,684 Repurchase Agreements Unlimited 0 $ -
Reverse Repurchase Agreements 10.00% 0.00% $ -
LAIF (Local Agency Investment Funds) $150 Million 47.83% (2) $ 50,885,578 Placement Service Deposits (PDS) 30% 0.00% $ -
TOTAL 100.00% $ 106,397,766
Note:
(1) No more than 40% in any one federal agency. See CAMP Portfolio Statement for listing of agencies. (2) Investment in LAIF may not exceed $75 million in each agency.

C I T Y O F L A K E E L S I N O R E

SUMMARY OF POLICY LIMITATIONS
FOR THE MONTH ENDING NOVEMBER 30, 2025
Local Agency Investment Fund
November 4.096
October 4.150
September 4.212
August 4.251
July 4.258
June 4.269
PMIA Average Life(1): 254
LAIF Fair Value Factor(1): 1.001929581
PMIA Daily(1): 4.19
PMIA Quarter to Date(1): 4.24
LAIF Apportionment Rate(2): 4.34
LAIF Earnings Ratio(2): 0.00011893333163814
LAIF Administrative Cost(1)*: 0.26
Treasuries

52.46%
Agencies

28.00%
Certificates of
Deposit/Bank Notes

9.74%
Time
Deposits

3.39%
Commercial
Paper

5.66%
Corporate
Bonds

0.58%
Loans

0.17%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) .
*The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year.

Source:
(1) State of California, Office of the Treasurer
(2) State of California, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 12/03/25
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 9/30/25
Chart does not include $961,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
10/31/25
$156.2 billion
Yield Purchase Date Maturity Rate

4.096% Daily 24-Hour
Investment Beginning Balance Net Increase/(Decrease) Ending Balance Total Investments Held with
Local Agency Investment Fund: $ 54,885,578 $ (4,000,000) $ 50,885,578 Note:

Per California State Treasurer, LAIF Statute 16429.1: Separate accounts for each governmental unit shall be maintained.

C I T Y O F L A K E E L S I N O R E

LOCAL AGENCY INVESTMENT FUND

TRANSACTION SUMMARY
FOR THE MONTH ENDING NOVEMBER 30, 2025
CAMP
Investment Portfolio
Account Statement - Transaction Summary For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Opening Market Value
Purchases
Redemptions
Change in Value
Closing Market Value
1,124,172.64
1,612,230.83
(2,545,833.92)

0.00 $190,569.55
CAMP Pool
Unsettled Trades 0.00
Cash Dividends and Income 2,380.63
Opening Market Value
Purchases
Redemptions
Change in Value
Closing Market Value
55,348,130.94
2,537,718.11
(1,513,063.65)
163,049.85
$56,535,835.25
CAMP Managed Account
Unsettled Trades 0.00
Cash Dividends and Income 108,790.79
November 30, 2025 October 31, 2025
Asset Summary
CAMP Pool 190,569.55 1,124,172.64
CAMP Managed Account 56,535,835.25 55,348,130.94
Total $56,726,404.80 $56,472,303.58
Asset Allocation

0.34%
CAMP Pool

99.66%
CAMP Managed
Account
PFM Asset Management, a division of Page 1
U.S. Bancorp Asset Management, Inc.

Managed Account Summary Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dividend
Closing Market Value
Redemptions
Purchases
Opening Market Value
Closing Market Value
Change in Current Value
Unsettled Trades
Principal Acquisitions
Principal Dispositions
Maturities/Calls
Opening Market Value
Closing Market Value
Opening Market Value
Account Total
Total Cash Basis Earnings
Plus Net Realized Gains/Losses
Less Purchased Interest Related to Interest/Coupons
Interest/Dividends/Coupons Received
Earnings Reconciliation (Cash Basis) - Managed Account
Dividends
Less Beginning Accrued Interest
Less Beginning Amortized Value of Securities
Less Cost of New Purchases
Plus Coupons/Dividends Received
Plus Proceeds of Maturities/Calls/Principal Payments
Plus Proceeds from Sales
Ending Accrued Interest
Ending Amortized Value of Securities
Earnings Reconciliation (Accrual Basis)
Reconciling Transactions
Net Cash Contribution
Security Purchases
Principal Payments
Coupon/Interest/Dividend Income
Sale Proceeds
Maturities/Calls
Cash Transactions Summary- Managed Account
$1,124,172.64
1,612,230.83
(2,545,833.92)
$190,569.55
2,380.63
$55,348,130.94
(1,324,704.27)
(188,359.38)
2,537,718.11

0.00 163,049.85
$56,535,835.25
$56,472,303.58
$56,726,404.80
96,563.26
(3,430.03)
15,657.56
$108,790.79
1,185,000.00
189,330.85
95,591.79
139,704.27
(2,541,148.14)
931,521.23

0.00 Managed Account Total
55,806,189.65 55,996,759.20
501,369.76
189,330.85
1,324,704.27
95,591.79
(2,541,148.14)
(54,749,812.66)
(429,554.61)

0.00 501,369.76
2,735,164.77
1,324,704.27
95,591.79
(4,153,378.97)
(55,873,985.30)
(429,554.61)
2,380.63
Total Accrual Basis Earnings $196,670.91 $199,051.54
Transaction Summary - Money Market Transaction Summary - Managed Account _______________________________________________ _______________________________________________ _____________________________________________________ Cash Balance
Closing Cash Balance $0.00
PFM Asset Management, a division of Page 2
U.S. Bancorp Asset Management, Inc.

Portfolio Summary and Statistics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Account Summary
Description Par Value Market Value Percent
U.S. Treasury Bond / Note 27,275,000.00 26,810,123.70 47.26 Municipal Bond / Note 200,000.00 202,805.80 0.36
Federal Agency Commercial
Mortgage-Backed Security
8,628,997.60 8,738,519.70 15.40
Corporate Note 13,645,000.00 13,760,396.20 24.26
Bank Note 525,000.00 532,385.18 0.94
Asset-Backed Security 6,433,808.68 6,491,604.67 11.44
Managed Account Sub-Total 56,707,806.28 56,535,835.25 99.66% Accrued Interest 501,369.76
Total Portfolio 56,707,806.28 57,037,205.01
CAMP Pool 190,569.55 190,569.55 0.34
Total Investments 56,898,375.83 57,227,774.56 100.00%
Unsettled Trades 0.00 0.00
Sector Allocation

11.44%
ABS

0.94%
Bank Note

23.75%
Corporate Note

15.40%
Federal Agency
Commercial
Mortgage-Backed
Security

0.34%
Joint Powers
Authority

0.36%
Muni Bond / Note

0.51%
Priv Placement
Bond

47.26%
US TSY Bond / Note
0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years

0.99% 2.03%

9.33%

32.15%

42.71%

12.79%

0.00%
Maturity Distribution Characteristics
Yield to Maturity at Cost
Yield to Maturity at Market
Weighted Average Days to Maturity 1101

4.25%

3.71%
PFM Asset Management, a division of Page 3
U.S. Bancorp Asset Management, Inc.

Managed Account Issuer Summary For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Credit Quality (S&P Ratings)

4.78%
A

6.98%
A+

4.26%
A1.84%
AA

64.01%
AA+

4.30%
AA9.60%
AAA

0.34%
AAAm

0.72%
BBB+

3.17%
NR
Issuer Summary
Issuer of Holdings Percent
Market Value
Adobe Inc 385,589.62 0.68
Air Products and Chemicals Inc 346,719.42 0.61
Amazon.com Inc 577,764.60 1.02
American Express Co 1,404,746.88 2.48
Analog Devices Inc 406,953.60 0.72
Apple Inc 764,966.07 1.35
BA Credit Card Trust 605,569.84 1.07
Bank of America Corp 688,772.28 1.21
Bank of New York Mellon Corp 465,556.05 0.82
Bayerische Motoren Werke AG 171,732.75 0.30
Berkshire Hathaway Inc 466,904.10 0.82
BlackRock Inc 793,934.03 1.40
Bristol-Myers Squibb Co 375,679.50 0.66
CAMP Pool 190,569.55 0.34
Capital One Financial Corp 490,930.02 0.87
CarMax Inc 25,274.51 0.04
Caterpillar Inc 220,058.55 0.39
Charles Schwab Corp 297,607.20 0.52
Cisco Systems Inc 431,631.48 0.76
Citigroup Inc 1,344,115.20 2.37
Deere & Co 385,314.00 0.68
Discover Card Execution Note Trust 672,119.89 1.18
Federal Home Loan Mortgage Corp 8,211,024.60 14.47
Federal National Mortgage Association 527,495.10 0.93
Fifth Third Auto Trust 226,097.26 0.40
Ford Credit Auto Owner Trust 55,558.73 0.10
GM Financial Consumer Automobile Receiv 140,768.78 0.25 Harley-Davidson Inc 57,400.43 0.10
Home Depot Inc 384,689.25 0.68
Honda Auto Receivables Owner Trust 366,071.80 0.65
Honda Motor Co Ltd 403,760.80 0.71
JPMorgan Chase & Co 408,915.54 0.72
PFM Asset Management, a division of Page 4
U.S. Bancorp Asset Management, Inc.

Managed Account Issuer Summary For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Issuer of Holdings Percent
Market Value
Lockheed Martin Corp 60,791.82 0.11
Mars Inc 117,803.82 0.21
Mercedes-Benz Auto Receivables Trust 556,787.55 0.98
Microsoft Corp 747,345.00 1.32
Morgan Stanley 532,385.18 0.94
National Australia Bank Ltd 500,735.50 0.88
National Rural Utilities Cooperative Fi 346,349.85 0.61 Nissan Auto Receivables Owner Trust 34,041.48 0.06
Northern Trust Corp 577,172.35 1.02
Novartis AG 511,967.07 0.90
PACCAR Inc 408,176.40 0.72
Porsche Innovative Lease Owner 101,091.50 0.18
Shell PLC 577,999.78 1.02
State of California 202,805.80 0.36
State Street Corp 206,251.60 0.36
Target Corp 39,193.08 0.07
Texas Instruments Inc 86,372.33 0.15
Toyota Auto Receivables Owner Trust 94,328.44 0.17
Toyota Motor Corp 380,918.63 0.67
United States Treasury 26,810,123.70 47.25
UnitedHealth Group Inc 222,066.90 0.39
Verizon Master Trust 418,102.95 0.74
Wells Fargo & Co 407,846.80 0.72
WF Card Issuance Trust 491,455.84 0.87
Total $56,726,404.80 100.00%
PFM Asset Management, a division of Page 5
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

US TREASURY N/B
DTD 11/15/2016 2.000% 11/15/2026
912828U24 75,000.00 AA+ Aa1 01/13/23 01/17/23 70,441.41 3.72 66.30 73,861.98 73,840.43

US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
91282CCH2 225,000.00 AA+ Aa1 07/01/24 07/03/24 198,641.60 4.49 1,176.97 207,430.05 212,633.78

US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
91282CCH2 1,275,000.00 AA+ Aa1 09/04/24 09/06/24 1,169,364.26 3.59 6,669.50 1,201,963.45 1,204,924.73

US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
91282CCH2 1,300,000.00 AA+ Aa1 08/01/24 08/05/24 1,173,960.94 3.96 6,800.27 1,214,486.14 1,228,550.70

US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
91282CCH2 2,400,000.00 AA+ Aa1 10/01/24 10/07/24 2,211,468.75 3.51 12,554.35 2,266,955.80 2,268,093.60

US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
91282CCH2 2,700,000.00 AA+ Aa1 06/06/24 06/11/24 2,388,339.85 4.39 14,123.64 2,495,199.12 2,551,605.30

US TREASURY N/B
DTD 01/02/2024 3.750% 12/31/2028
91282CJR3 1,200,000.00 AA+ Aa1 10/31/24 11/05/24 1,182,093.75 4.14 18,831.52 1,186,425.72 1,208,625.60

US TREASURY N/B
DTD 01/02/2024 3.750% 12/31/2028
91282CJR3 1,375,000.00 AA+ Aa1 01/02/25 01/07/25 1,344,653.32 4.36 21,577.79 1,351,066.96 1,384,883.50

US TREASURY N/B
DTD 01/02/2024 3.750% 12/31/2028
91282CJR3 1,475,000.00 AA+ Aa1 02/03/25 02/06/25 1,444,693.36 4.33 23,147.08 1,450,630.79 1,485,602.30

US TREASURY N/B
DTD 01/02/2024 3.750% 12/31/2028
91282CJR3 2,600,000.00 AA+ Aa1 12/03/24 12/06/24 2,565,773.44 4.10 40,801.63 2,573,564.66 2,618,688.80

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 600,000.00 AA+ Aa1 07/01/25 07/03/25 589,054.69 3.75 8,160.33 590,109.40 594,163.80

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 900,000.00 AA+ Aa1 04/01/25 04/04/25 878,414.06 3.87 12,240.49 881,543.07 891,245.70

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 900,000.00 AA+ Aa1 06/02/25 06/05/25 875,566.41 3.98 12,240.49 878,294.38 891,245.70

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 925,000.00 AA+ Aa1 08/01/25 08/05/25 902,236.33 3.94 12,580.50 903,979.97 916,002.53 PFM Asset Management, a division of Page 6
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 1,500,000.00 AA+ Aa1 05/01/25 05/06/25 1,476,796.88 3.65 20,400.82 1,479,781.87 1,485,409.50

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 2,650,000.00 AA+ Aa1 03/03/25 03/06/25 2,565,117.19 4.06 36,041.44 2,578,604.24 2,624,223.45

US TREASURY N/B
DTD 06/30/2022 3.250% 06/30/2029
91282CEV9 3,900,000.00 AA+ Aa1 09/02/25 09/05/25 3,841,652.34 3.67 53,042.12 3,845,038.81 3,862,064.70

US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
91282CMG3 300,000.00 AA+ Aa1 11/04/25 11/07/25 306,820.31 3.66 4,261.55 306,724.14 307,839.90

US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
91282CMG3 975,000.00 AA+ Aa1 10/01/25 10/06/25 997,242.19 3.67 13,850.03 996,516.81 1,000,479.68 Security Type Sub-Total 27,275,000.00 26,182,331.08 3.94 318,566.82 26,482,177.36 26,810,123.70 Municipal Bond / Note
CA ST
DTD 03/15/2023 4.846% 03/01/2027
13063D3N6 200,000.00 AA- Aa2 03/09/23 03/15/23 200,000.00 4.85 2,423.00 200,000.00 202,805.80 Security Type Sub-Total 200,000.00 200,000.00 4.85 2,423.00 200,000.00 202,805.80 Federal Agency Commercial Mortgage-Backed Security
FHMS K054 A2
DTD 04/01/2016 2.745% 01/01/2026
3137BNGT5 150,008.39 AA+ Aa1 04/11/23 04/14/23 143,797.10 4.32 343.14 149,673.31 149,456.06 FHMS K058 A2
DTD 11/01/2016 2.653% 08/01/2026
3137BSP72 550,000.00 AA+ Aa1 04/06/23 04/12/23 526,839.84 3.98 1,215.96 544,959.37 544,429.60 FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
3137BTUM1 362,852.11 AA+ Aa1 05/19/23 05/24/23 351,683.07 4.29 1,012.05 359,716.63 359,768.59 FHMS K064 A2
DTD 05/01/2017 3.224% 03/01/2027
3137BXQY1 550,000.00 AA+ Aa1 08/16/23 08/18/23 518,804.69 4.94 1,477.67 538,599.40 545,422.35 FHMS K065 A2
DTD 07/01/2017 3.243% 04/01/2027
3137F1G44 550,000.00 AA+ Aa1 06/08/23 06/13/23 527,033.20 4.42 1,486.38 541,684.43 545,341.50 PFM Asset Management, a division of Page 7
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Federal Agency Commercial Mortgage-Backed Security
FHMS KJ48 A1
DTD 12/01/2023 4.858% 05/01/2028
3137HBC69 379,608.07 AA+ Aa1 12/06/23 12/14/23 379,605.03 4.86 1,536.78 379,607.18 386,426.97 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
3137HAD45 430,689.59 AA+ Aa1 07/19/23 07/27/23 430,678.85 4.78 1,714.50 430,683.97 434,441.32 FHMS K505 A2
DTD 07/01/2023 4.819% 06/01/2028
3137HACX2 550,000.00 AA+ Aa1 07/13/23 07/20/23 555,493.40 4.59 2,208.71 552,859.66 561,739.20 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
3136BQDE6 525,060.92 AA+ Aa1 07/18/23 07/31/23 516,159.49 4.58 1,833.34 520,327.38 527,495.10 FHMS K508 A2
DTD 10/01/2023 4.740% 08/01/2028
3137HAQ74 500,000.00 AA+ Aa1 10/11/23 10/19/23 489,032.00 5.25 1,975.00 493,461.88 510,378.50 FHMS K506 A2
DTD 09/01/2023 4.650% 08/01/2028
3137HAMH6 800,000.00 AA+ Aa1 09/07/23 09/14/23 788,165.60 4.99 3,100.00 793,085.32 814,627.20 FHMS K509 A2
DTD 10/01/2023 4.850% 09/01/2028
3137HAST4 375,000.00 AA+ Aa1 10/25/23 10/31/23 363,043.88 5.60 1,515.63 367,603.46 384,138.37 FHMS K507 A2
DTD 09/01/2023 4.800% 09/01/2028
3137HAMS2 500,000.00 AA+ Aa1 09/20/23 09/28/23 494,023.50 5.07 2,000.00 496,381.04 511,940.50 FHMS K510 A2
DTD 11/01/2023 5.069% 10/01/2028
3137HB3D4 180,000.00 AA+ Aa1 11/14/23 11/21/23 179,479.62 5.14 760.35 179,677.38 185,378.04 FHMS K511 A2
DTD 12/01/2023 4.860% 10/01/2028
3137HB3G7 275,000.00 AA+ Aa1 11/28/23 12/07/23 274,209.93 4.93 1,113.75 274,507.09 282,269.90 FHMS K514 A2
DTD 02/01/2024 4.572% 12/01/2028
3137HBLV4 290,000.00 AA+ Aa1 02/01/24 02/08/24 292,899.71 4.34 1,104.90 291,897.30 295,364.13 FHMS K524 A2
DTD 07/01/2024 4.720% 05/01/2029
3137HDV56 440,000.00 AA+ Aa1 07/16/24 07/25/24 442,702.04 4.58 1,730.67 442,041.26 451,139.04 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
3137HDJJ0 535,778.54 AA+ Aa1 06/05/24 06/13/24 535,776.93 4.80 2,144.45 535,778.54 550,222.06 FHMS K526 A2
DTD 08/01/2024 4.543% 07/01/2029
3137HDXL9 495,000.00 AA+ Aa1 08/07/24 08/15/24 499,630.23 4.33 1,873.99 498,516.60 505,142.55 PFM Asset Management, a division of Page 8
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

UNITEDHEALTH GROUP INC (CALLABLE)
DTD 05/19/2021 1.150% 05/15/2026
91324PEC2 225,000.00 A+ A2 05/17/21 05/19/21 224,608.50 1.19 115.00 224,964.25 222,066.90

BMW US CAPITAL LLC (CALLABLE)
DTD 08/12/2021 1.250% 08/12/2026
05565EBW4 175,000.00 A A2 08/12/21 08/16/21 174,947.50 1.26 662.33 174,992.66 171,732.75

CATERPILLAR FINL SERVICE
DTD 01/10/2022 1.700% 01/08/2027
14913R2U0 225,000.00 A A2 01/11/22 01/13/22 223,863.75 1.81 1,519.38 224,748.70 220,058.55

TARGET CORP (CALLABLE)
DTD 01/24/2022 1.950% 01/15/2027
87612EBM7 40,000.00 A A2 01/19/22 01/24/22 39,932.00 1.99 294.67 39,984.66 39,193.08

BANK OF NY MELLON CORP (CALLABLE)
DTD 01/26/2022 2.050% 01/26/2027
06406RBA4 475,000.00 A Aa3 01/26/22 01/28/22 473,945.50 2.10 3,381.08 474,756.61 465,556.05

MICROSOFT CORP (CALLABLE)
DTD 02/06/2017 3.300% 02/06/2027
594918BY9 750,000.00 AAA Aaa 03/14/23 03/17/23 721,942.50 4.36 7,906.25 741,476.46 747,345.00

AMERICAN EXPRESS CO (CALLABLE)
DTD 03/04/2022 2.550% 03/04/2027
025816CS6 300,000.00 A- A2 01/13/23 01/18/23 277,203.00 4.59 1,848.75 293,050.44 295,138.50

BERKSHIRE HATHAWAY FIN (CALLABLE)
DTD 03/15/2022 2.300% 03/15/2027
084664CZ2 475,000.00 AA Aa2 03/15/22 03/17/22 466,089.00 2.70 2,306.39 472,700.39 466,904.10

CHARLES SCHWAB CORP (CALLABLE)
DTD 09/24/2021 3.300% 04/01/2027
808513BW4 300,000.00 A- A2 02/17/23 02/22/23 284,925.00 4.66 1,650.00 295,107.50 297,607.20

NATIONAL AUSTRALIA BK/NY
DTD 06/09/2022 3.905% 06/09/2027
63254ABE7 500,000.00 AA- Aa2 01/13/23 01/18/23 488,325.00 4.50 9,328.61 495,953.26 500,735.50

APPLE INC (CALLABLE)
DTD 09/12/2017 2.900% 09/12/2027
037833DB3 775,000.00 AA+ Aaa 01/19/23 01/23/23 741,062.75 3.94 4,932.01 761,965.98 764,966.07

TOYOTA MOTOR CREDIT CORP
DTD 01/12/2023 4.625% 01/12/2028
89236TKQ7 375,000.00 A+ A1 02/08/23 02/10/23 376,282.50 4.55 6,696.61 375,550.78 380,918.63 PFM Asset Management, a division of Page 9
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

NATIONAL RURAL UTIL COOP (CALLABLE)
DTD 02/07/2018 3.400% 02/07/2028
637432NP6 350,000.00 A- A1 02/17/23 02/22/23 329,189.00 4.76 3,768.33 340,836.16 346,349.85

TEXAS INSTRUMENTS INC (CALLABLE)
DTD 11/18/2022 4.600% 02/15/2028
882508BV5 85,000.00 A+ Aa3 05/11/23 05/18/23 87,043.40 4.04 1,151.28 85,930.92 86,372.33

BRISTOL-MYERS SQUIBB CO (CALLABLE)
DTD 07/15/2020 3.900% 02/20/2028
110122DE5 375,000.00 A A2 03/09/23 03/13/23 358,263.75 4.93 4,103.13 367,474.81 375,679.50

LOCKHEED MARTIN CORP (CALLABLE)
DTD 05/25/2023 4.450% 05/15/2028
539830BZ1 60,000.00 A- A2 05/23/23 05/25/23 59,892.00 4.49 118.67 59,946.66 60,791.82

JOHN DEERE CAPITAL CORP
DTD 07/14/2023 4.950% 07/14/2028
24422EXB0 375,000.00 A A1 07/21/23 07/25/23 377,865.00 4.78 7,064.06 376,510.17 385,314.00

CITIBANK NA (CALLABLE)
DTD 09/29/2023 5.803% 09/29/2028
17325FBB3 750,000.00 A+ Aa3 10/02/23 10/04/23 746,280.00 5.92 7,495.54 747,760.37 787,218.75

AIR PRODUCTS & CHEMICALS (CALLABLE)
DTD 02/08/2024 4.600% 02/08/2029
009158BH8 340,000.00 A A2 02/06/24 02/08/24 339,547.80 4.63 4,909.22 339,700.17 346,719.42

CISCO SYSTEMS INC (CALLABLE)
DTD 02/26/2024 4.850% 02/26/2029
17275RBR2 420,000.00 AA- A1 02/21/24 02/26/24 419,853.00 4.86 5,375.42 419,901.78 431,631.48

BLACKROCK FUNDING INC (CALLABLE)
DTD 03/14/2024 4.700% 03/14/2029
09290DAA9 50,000.00 AA- Aa3 03/05/24 03/14/24 49,909.50 4.74 502.64 49,938.32 51,221.55

BLACKROCK FUNDING INC (CALLABLE)
DTD 03/14/2024 4.700% 03/14/2029
09290DAA9 725,000.00 AA- Aa3 03/06/24 03/14/24 725,355.25 4.69 7,288.26 725,244.55 742,712.48

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 170,000.00 A+ A1 04/02/24 04/04/24 169,775.60 4.83 1,292.00 169,844.40 174,800.63

ADOBE INC (CALLABLE)
DTD 04/04/2024 4.800% 04/04/2029
00724PAF6 205,000.00 A+ A1 04/01/24 04/04/24 204,694.55 4.83 1,558.00 204,787.98 210,788.99

WELLS FARGO & COMPANY (CALLABLE)
DTD 04/23/2025 4.970% 04/23/2029
95000U3T8 110,000.00 BBB+ A1 04/16/25 04/23/25 110,088.00 4.95 577.07 110,071.43 112,157.87

WELLS FARGO & COMPANY (CALLABLE)
DTD 04/23/2025 4.970% 04/23/2029
95000U3T8 290,000.00 BBB+ A1 04/15/25 04/23/25 290,000.00 4.97 1,521.37 290,000.00 295,688.93 PFM Asset Management, a division of Page 10
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

BANK OF AMERICA CORP (CALLABLE)
DTD 05/09/2025 4.623% 05/09/2029
06051GMT3 600,000.00 A- A1 05/06/25 05/09/25 600,000.00 4.62 1,695.10 600,000.00 608,187.00

HOME DEPOT INC (CALLABLE)
DTD 06/25/2024 4.750% 06/25/2029
437076DC3 125,000.00 A A2 06/17/24 06/25/24 124,193.75 4.90 2,572.92 124,405.41 128,229.75

HOME DEPOT INC (CALLABLE)
DTD 06/25/2024 4.750% 06/25/2029
437076DC3 250,000.00 A A2 06/18/24 06/25/24 248,627.50 4.88 5,145.83 248,988.36 256,459.50

AMERICAN HONDA FINANCE
DTD 09/05/2024 4.400% 09/05/2029
02665WFQ9 400,000.00 A- A3 09/03/24 09/05/24 399,520.00 4.43 4,204.44 399,629.69 403,760.80

MARS INC (CALLABLE)
DTD 03/12/2025 4.800% 03/01/2030
571676AY1 115,000.00 A A2 03/05/25 03/12/25 114,875.80 4.83 1,380.00 114,892.05 117,803.82

STATE STREET CORP (CALLABLE)
DTD 04/24/2025 4.834% 04/24/2030
857477DB6 200,000.00 A Aa3 04/22/25 04/24/25 200,000.00 4.83 993.66 200,000.00 206,251.60

PACCAR FINANCIAL CORP
DTD 05/08/2025 4.550% 05/08/2030
69371RT71 400,000.00 A+ A1 05/05/25 05/08/25 399,380.00 4.59 1,162.78 399,443.83 408,176.40

ANALOG DEVICES INC (CALLABLE)
DTD 06/16/2025 4.500% 06/15/2030
032654BE4 400,000.00 A- A2 06/12/25 06/16/25 399,648.00 4.52 8,250.00 399,678.28 406,953.60

NOVARTIS CAPITAL CORP (CALLABLE)
DTD 11/05/2025 4.100% 11/05/2030
66989HAY4 510,000.00 AA- Aa3 11/03/25 11/05/25 508,470.00 4.17 1,510.17 508,492.09 511,967.07

SHELL FINANCE US INC (CALLABLE)
DTD 11/06/2025 4.125% 11/06/2030
822905AN5 125,000.00 A+ Aa2 11/03/25 11/06/25 124,520.00 4.21 358.07 124,526.45 125,652.13

SHELL FINANCE US INC (CALLABLE)
DTD 11/06/2025 4.125% 11/06/2030
822905AN5 450,000.00 A+ Aa2 11/04/25 11/06/25 449,136.00 4.17 1,289.06 449,147.66 452,347.65

NORTHERN TRUST CORP
DTD 11/19/2025 4.150% 11/19/2030
665859AY0 115,000.00 A+ A2 11/12/25 11/19/25 114,943.65 4.16 159.08 114,944.28 115,434.47

NORTHERN TRUST CORP
DTD 11/19/2025 4.150% 11/19/2030
665859AY0 460,000.00 A+ A2 11/13/25 11/19/25 459,443.40 4.18 636.33 459,448.12 461,737.88 AMAZON.COM INC (CALLABLE)
DTD 11/20/2025 4.100% 11/20/2030
023135CT1 575,000.00 AA A1 11/17/25 11/20/25 574,384.75 4.12 720.35 574,388.20 577,764.60 PFM Asset Management, a division of Page 11
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Security Type Sub-Total 13,645,000.00 13,478,026.70 4.30 117,443.86 13,581,183.83 13,760,396.20 Bank Note

MORGAN STANLEY BANK NA (CALLABLE)
DTD 07/19/2024 4.968% 07/14/2028
61690U8E3 525,000.00 A+ Aa3 07/18/24 07/19/24 525,525.00 4.94 9,925.65 525,294.59 532,385.18 Security Type Sub-Total 525,000.00 525,525.00 4.94 9,925.65 525,294.59 532,385.18 Asset-Backed Security
CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027
14318MAD1 25,281.24 AAA NR 07/12/22 07/20/22 25,280.64 3.97 44.61 25,281.06 25,274.51 NAROT 2022-B A3
DTD 09/28/2022 4.460% 05/17/2027
65480JAC4 34,008.96 AAA Aaa 09/20/22 09/28/22 34,001.93 4.46 67.41 34,006.75 34,041.48 GMCAR 2022-4 A3
DTD 10/12/2022 4.820% 08/16/2027
36265QAD8 49,991.53 AAA NR 10/04/22 10/12/22 49,983.34 4.82 100.40 49,988.64 50,070.02 TAOT 2023-A A3
DTD 01/30/2023 4.630% 09/15/2027
891940AC2 94,142.89 AAA NR 01/24/23 01/30/23 94,142.84 4.63 193.73 94,142.87 94,328.44 HDMOT 2023-A A3
DTD 02/23/2023 5.050% 12/15/2027
41285JAD0 57,247.47 NR Aaa 02/13/23 02/23/23 57,241.70 5.05 128.49 57,245.02 57,400.43 FORDO 2023-A A3
DTD 03/31/2023 4.650% 02/15/2028
344928AD8 55,441.25 AAA NR 03/28/23 03/31/23 55,435.47 4.65 114.58 55,438.64 55,558.73 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
43815QAC1 183,887.76 AAA NR 08/15/23 08/22/23 183,849.84 5.42 359.25 183,869.06 185,250.73 DCENT 2023-A1 A
DTD 04/11/2023 4.310% 03/15/2028
254683CY9 320,000.00 NR Aaa 04/04/23 04/11/23 319,981.44 4.31 612.98 319,991.38 320,258.24 BACCT 2023-A1 A1
DTD 06/16/2023 4.790% 05/15/2028
05522RDG0 170,000.00 AAA NR 06/08/23 06/16/23 169,961.51 4.79 361.91 169,980.77 170,616.08 AMXCA 2023-1 A
DTD 06/14/2023 4.870% 05/15/2028
02582JJZ4 190,000.00 AAA NR 06/07/23 06/14/23 189,983.15 4.87 411.24 189,991.59 190,739.48 COMET 2023-A1 A
DTD 05/24/2023 4.420% 05/15/2028
14041NGD7 490,000.00 AAA NR 05/17/23 05/24/23 489,887.64 4.42 962.58 489,944.54 490,930.02 PFM Asset Management, a division of Page 12
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
DCENT 2023-A2 A
DTD 06/28/2023 4.930% 06/15/2028
254683CZ6 350,000.00 AAA Aaa 06/21/23 06/28/23 349,952.72 4.93 766.89 349,975.82 351,861.65 HAROT 2023-4 A3
DTD 11/08/2023 5.670% 06/21/2028
438123AC5 64,539.00 NR Aaa 11/01/23 11/08/23 64,527.64 5.67 101.65 64,532.42 65,245.84 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
31680EAD3 224,268.58 AAA Aaa 08/15/23 08/23/23 224,254.67 5.53 551.20 224,261.02 226,097.26 CHAIT 2023-A1 A
DTD 09/15/2023 5.160% 09/15/2028
161571HT4 405,000.00 AAA NR 09/07/23 09/15/23 404,887.73 5.17 928.80 404,933.86 408,915.54 AMXCA 2023-3 A
DTD 09/19/2023 5.230% 09/15/2028
02582JKD1 410,000.00 AAA NR 09/12/23 09/19/23 409,981.67 5.23 953.02 409,989.38 414,371.83 PILOT 2025-1A A3
DTD 05/21/2025 4.610% 10/20/2028
73329KAD8 100,000.00 AAA NR 05/14/25 05/21/25 99,989.29 4.61 140.86 99,991.10 101,091.50 BACCT 2023-A2 A2
DTD 12/14/2023 4.980% 11/15/2028
05522RDH8 180,000.00 NR Aaa 12/07/23 12/14/23 179,975.83 4.98 398.40 179,985.19 181,864.26 AMXCA 2024-1 A
DTD 04/23/2024 5.230% 04/16/2029
02582JKH2 495,000.00 AAA NR 04/16/24 04/23/24 494,898.53 5.23 1,150.60 494,898.53 504,497.07 HAROT 2025-2 A3
DTD 05/08/2025 4.150% 10/15/2029
437921AD1 115,000.00 NR Aaa 04/29/25 05/08/25 114,987.15 4.15 212.11 114,988.91 115,575.23 BAAT 2025-1A A3
DTD 05/12/2025 4.350% 11/20/2029
05594BAD8 80,000.00 NR Aaa 05/06/25 05/12/25 79,994.48 4.35 106.33 79,995.34 80,585.28 MBART 2025-1 A3
DTD 01/23/2025 4.780% 12/17/2029
58773DAD6 550,000.00 NR Aaa 04/08/25 04/09/25 553,673.83 4.62 1,168.44 553,216.28 556,787.55 VZMT 2025-3 A1A
DTD 03/31/2025 4.510% 03/20/2030
92348KDY6 415,000.00 NR Aaa 03/25/25 03/31/25 414,982.16 4.51 571.89 414,985.42 418,102.95 GMCAR 2025-2 A3
DTD 05/14/2025 4.280% 04/16/2030
362549AD9 90,000.00 AAA Aaa 05/06/25 05/14/25 89,986.75 4.28 160.50 89,988.17 90,698.76 BACCT 2025-A1 A
DTD 06/12/2025 4.310% 05/15/2030
05522RDK1 250,000.00 AAA NR 06/05/25 06/12/25 249,999.05 4.31 478.89 250,000.00 253,089.50 PFM Asset Management, a division of Page 13
U.S. Bancorp Asset Management, Inc.

Managed Account Detail of Securities Held For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Trade Settle Original YTM Accrued Amortized Market Par
Asset-Backed Security
WFCIT 2025-A1 A
DTD 06/10/2025 4.340% 05/15/2030
92970QAJ4 485,000.00 AAA NR 06/03/25 06/10/25 484,991.95 4.34 935.51 484,994.12 491,455.84 CCCIT 2025-A1 A
DTD 06/26/2025 4.300% 06/21/2030
17305EHA6 550,000.00 AAA Aaa 06/18/25 06/26/25 549,850.79 4.31 10,182.64 549,862.57 556,896.45 Security Type Sub-Total 6,433,808.68 6,436,683.74 4.73 22,164.91 6,436,478.45 6,491,604.67 Managed Account Sub-Total 56,707,806.28 55,321,617.98 4.25 501,369.76 55,806,189.65 56,535,835.25 Joint Powers Authority
CAMP Pool 190,569.55 AAAm NR 190,569.55 0.00 190,569.55 190,569.55 Liquid Sub-Total 190,569.55 190,569.55 0.00 190,569.55 190,569.55 $56,898,375.83 $55,512,187.53 4.25% $501,369.76 $55,996,759.20 $56,726,404.80 $57,227,774.56
$501,369.76
Total Investments
Accrued Interest
Securities Sub-Total
PFM Asset Management, a division of Page 14
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
U.S. Treasury Bond / Note
US TREASURY N/B 912828U24 75,000.00 JPMorgan 98.45 73,840.43 3,399.02 (21.55) DTD 11/15/2016 2.000% 11/15/2026

0.95 3.68
US TREASURY N/B 91282CCH2 225,000.00 BMO 94.50 212,633.78 13,992.18 5,203.73 DTD 06/30/2021 1.250% 06/30/2028

2.50 3.47
US TREASURY N/B 91282CCH2 1,275,000.00 MorganSt 94.50 1,204,924.73 35,560.47 2,961.28 DTD 06/30/2021 1.250% 06/30/2028

2.50 3.47
US TREASURY N/B 91282CCH2 1,300,000.00 BMO 94.50 1,228,550.70 54,589.76 14,064.56 DTD 06/30/2021 1.250% 06/30/2028

2.50 3.47
US TREASURY N/B 91282CCH2 2,400,000.00 BMO 94.50 2,268,093.60 56,624.85 1,137.80 DTD 06/30/2021 1.250% 06/30/2028

2.50 3.47
US TREASURY N/B 91282CCH2 2,700,000.00 BMO 94.50 2,551,605.30 163,265.45 56,406.18 DTD 06/30/2021 1.250% 06/30/2028

2.50 3.47
US TREASURY N/B 91282CJR3 1,200,000.00 Citigrou 100.72 1,208,625.60 26,531.85 22,199.88 DTD 01/02/2024 3.750% 12/31/2028

2.86 3.48
US TREASURY N/B 91282CJR3 1,375,000.00 MorganSt 100.72 1,384,883.50 40,230.18 33,816.54 DTD 01/02/2024 3.750% 12/31/2028

2.86 3.48
US TREASURY N/B 91282CJR3 1,475,000.00 JPMorgan 100.72 1,485,602.30 40,908.94 34,971.51 DTD 01/02/2024 3.750% 12/31/2028

2.86 3.48
US TREASURY N/B 91282CJR3 2,600,000.00 MorganSt 100.72 2,618,688.80 52,915.36 45,124.14 DTD 01/02/2024 3.750% 12/31/2028

2.86 3.48
US TREASURY N/B 91282CEV9 600,000.00 Citigrou 99.03 594,163.80 5,109.11 4,054.40 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 900,000.00 BMO 99.03 891,245.70 12,831.64 9,702.63 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 900,000.00 BMO 99.03 891,245.70 15,679.29 12,951.32 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 925,000.00 Citigrou 99.03 916,002.53 13,766.20 12,022.56 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 1,500,000.00 Citigrou 99.03 1,485,409.50 8,612.62 5,627.63 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 2,650,000.00 MorganSt 99.03 2,624,223.45 59,106.26 45,619.21 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
US TREASURY N/B 91282CEV9 3,900,000.00 RBC Capi 99.03 3,862,064.70 20,412.36 17,025.89 DTD 06/30/2022 3.250% 06/30/2029

3.31 3.51
PFM Asset Management, a division of Page 15
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
U.S. Treasury Bond / Note
US TREASURY N/B 91282CMG3 300,000.00 Citigrou 102.61 307,839.90 1,019.59 1,115.76 DTD 01/31/2025 4.250% 01/31/2030

3.76 3.54
US TREASURY N/B 91282CMG3 975,000.00 HSBC 102.61 1,000,479.68 3,237.49 3,962.87 DTD 01/31/2025 4.250% 01/31/2030

3.76 3.54
Security Type Sub-Total 27,275,000.00 26,810,123.70 627,792.62 327,946.34 2.99 3.49 Municipal Bond / Note
CA ST 13063D3N6 200,000.00 WellsFar 101.40 202,805.80 2,805.80 2,805.80 DTD 03/15/2023 4.846% 03/01/2027

1.19 3.68
Security Type Sub-Total 200,000.00 202,805.80 2,805.80 2,805.80 1.19 3.68 Federal Agency Commercial Mortgage-Backed Security
FHMS K054 A2 3137BNGT5 150,008.39 RobertBa 99.63 149,456.06 5,658.96 (217.25) DTD 04/01/2016 2.745% 01/01/2026

0.13 4.31
FHMS K058 A2 3137BSP72 550,000.00 BREAN 98.99 544,429.60 17,589.76 (529.77) DTD 11/01/2016 2.653% 08/01/2026

0.69 3.92
FHMS K061 A2 3137BTUM1 362,852.11 Citigrou 99.15 359,768.59 8,085.52 51.96 DTD 01/01/2017 3.347% 11/01/2026

0.89 4.08
FHMS K064 A2 3137BXQY1 550,000.00 MorganSt 99.17 545,422.35 26,617.66 6,822.95 DTD 05/01/2017 3.224% 03/01/2027

1.12 3.80
FHMS K065 A2 3137F1G44 550,000.00 Citigrou 99.15 545,341.50 18,308.30 3,657.07 DTD 07/01/2017 3.243% 04/01/2027

1.27 3.76
FHMS KJ48 A1 3137HBC69 379,608.07 JPMorgan 101.80 386,426.97 6,821.94 6,819.79 DTD 12/01/2023 4.858% 05/01/2028

2.04 3.85
FHMS KJ46 A1 3137HAD45 430,689.59 JPMorgan 100.87 434,441.32 3,762.47 3,757.35 DTD 07/01/2023 4.777% 06/01/2028

1.49 4.02
FHMS K505 A2 3137HACX2 550,000.00 JPMorgan 102.13 561,739.20 6,245.80 8,879.54 DTD 07/01/2023 4.819% 06/01/2028

2.29 3.78
FNA 2023-M6 A2 3136BQDE6 525,060.92 JPMorgan 100.46 527,495.10 11,335.61 7,167.72 DTD 07/01/2023 4.190% 07/01/2028

2.42 3.89
FHMS K508 A2 3137HAQ74 500,000.00 BMO 102.08 510,378.50 21,346.50 16,916.62 DTD 10/01/2023 4.740% 08/01/2028

2.46 3.80
PFM Asset Management, a division of Page 16
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Federal Agency Commercial Mortgage-Backed Security
FHMS K506 A2 3137HAMH6 800,000.00 WellsFar 101.83 814,627.20 26,461.60 21,541.88 DTD 09/01/2023 4.650% 08/01/2028

2.43 3.80
FHMS K509 A2 3137HAST4 375,000.00 MorganSt 102.44 384,138.37 21,094.49 16,534.91 DTD 10/01/2023 4.850% 09/01/2028

2.54 3.80
FHMS K507 A2 3137HAMS2 500,000.00 BOFAML 102.39 511,940.50 17,917.00 15,559.46 DTD 09/01/2023 4.800% 09/01/2028

2.49 3.75
FHMS K510 A2 3137HB3D4 180,000.00 JPMorgan 102.99 185,378.04 5,898.42 5,700.66 DTD 11/01/2023 5.069% 10/01/2028

2.57 3.82
FHMS K511 A2 3137HB3G7 275,000.00 BOFAML 102.64 282,269.90 8,059.97 7,762.81 DTD 12/01/2023 4.860% 10/01/2028

2.61 3.76
FHMS K514 A2 3137HBLV4 290,000.00 JPMorgan 101.85 295,364.13 2,464.42 3,466.83 DTD 02/01/2024 4.572% 12/01/2028

2.69 3.80
FHMS K524 A2 3137HDV56 440,000.00 PIER 102.53 451,139.04 8,437.00 9,097.78 DTD 07/01/2024 4.720% 05/01/2029

3.13 3.84
FHMS K522 A2 3137HDJJ0 535,778.54 MorganSt 102.70 550,222.06 14,445.13 14,443.52 DTD 06/01/2024 4.803% 05/01/2029

3.00 3.83
FHMS K526 A2 3137HDXL9 495,000.00 BMO 102.05 505,142.55 5,512.32 6,625.95 DTD 08/01/2024 4.543% 07/01/2029

3.28 3.85
FHMS K539 A2 3137HKXJ8 190,000.00 JPMorgan 101.79 193,398.72 3,405.37 3,404.50 DTD 04/01/2025 4.410% 01/01/2030

3.71 3.86
Security Type Sub-Total 8,628,997.60 8,738,519.70 239,468.24 157,464.28 2.17 3.85 Corporate Note
UNITEDHEALTH GROUP INC (CALLABLE) 91324PEC2 225,000.00 Citigrou 04/15/26 98.70 222,066.90 (2,541.60) (2,897.35) DTD 05/19/2021 1.150% 05/15/2026

0.46 4.01
BMW US CAPITAL LLC (CALLABLE) 05565EBW4 175,000.00 SUMITR 07/12/26 98.13 171,732.75 (3,214.75) (3,259.91) DTD 08/12/2021 1.250% 08/12/2026

0.69 3.99
CATERPILLAR FINL SERVICE 14913R2U0 225,000.00 JPMorgan 97.80 220,058.55 (3,805.20) (4,690.15) DTD 01/10/2022 1.700% 01/08/2027

1.07 3.75
TARGET CORP (CALLABLE) 87612EBM7 40,000.00 Citigrou 12/15/26 97.98 39,193.08 (738.92) (791.58) DTD 01/24/2022 1.950% 01/15/2027

1.10 3.78
BANK OF NY MELLON CORP (CALLABLE) 06406RBA4 475,000.00 Deutsche 12/24/26 98.01 465,556.05 (8,389.45) (9,200.56) DTD 01/26/2022 2.050% 01/26/2027

1.11 3.83
PFM Asset Management, a division of Page 17
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Corporate Note
MICROSOFT CORP (CALLABLE) 594918BY9 750,000.00 GoldmanS 11/06/26 99.65 747,345.00 25,402.50 5,868.54 DTD 02/06/2017 3.300% 02/06/2027

1.04 3.59
AMERICAN EXPRESS CO (CALLABLE) 025816CS6 300,000.00 RBS 02/01/27 98.38 295,138.50 17,935.50 2,088.06 DTD 03/04/2022 2.550% 03/04/2027

1.20 3.88
BERKSHIRE HATHAWAY FIN (CALLABLE) 084664CZ2 475,000.00 SEEL 02/15/27 98.30 466,904.10 815.10 (5,796.29) DTD 03/15/2022 2.300% 03/15/2027

1.24 3.66
CHARLES SCHWAB CORP (CALLABLE) 808513BW4 300,000.00 Barclays 01/01/27 99.20 297,607.20 12,682.20 2,499.70 DTD 09/24/2021 3.300% 04/01/2027

1.22 3.92
NATIONAL AUSTRALIA BK/NY 63254ABE7 500,000.00 CAS 100.15 500,735.50 12,410.50 4,782.24 DTD 06/09/2022 3.905% 06/09/2027

1.45 3.79
APPLE INC (CALLABLE) 037833DB3 775,000.00 TD Secur 06/12/27 98.71 764,966.07 23,903.32 3,000.09 DTD 09/12/2017 2.900% 09/12/2027

1.64 3.66
TOYOTA MOTOR CREDIT CORP 89236TKQ7 375,000.00 WellsFar 101.58 380,918.63 4,636.13 5,367.85 DTD 01/12/2023 4.625% 01/12/2028

1.98 3.84
NATIONAL RURAL UTIL COOP (CALLABLE) 637432NP6 350,000.00 MorganSt 11/07/27 98.96 346,349.85 17,160.85 5,513.69 DTD 02/07/2018 3.400% 02/07/2028

1.99 3.87
TEXAS INSTRUMENTS INC (CALLABLE) 882508BV5 85,000.00 JPMorgan 01/15/28 101.61 86,372.33 (671.07) 441.41 DTD 11/18/2022 4.600% 02/15/2028

2.02 3.80
BRISTOL-MYERS SQUIBB CO (CALLABLE) 110122DE5 375,000.00 MAXE 12/04/25 100.18 375,679.50 17,415.75 8,204.69 DTD 07/15/2020 3.900% 02/20/2028

1.96 3.81
LOCKHEED MARTIN CORP (CALLABLE) 539830BZ1 60,000.00 Barclays 04/15/28 101.32 60,791.82 899.82 845.16 DTD 05/25/2023 4.450% 05/15/2028

2.27 3.88
JOHN DEERE CAPITAL CORP 24422EXB0 375,000.00 Citigrou 102.75 385,314.00 7,449.00 8,803.83 DTD 07/14/2023 4.950% 07/14/2028

2.40 3.83
CITIBANK NA (CALLABLE) 17325FBB3 750,000.00 Barclays 08/29/28 104.96 787,218.75 40,938.75 39,458.38 DTD 09/29/2023 5.803% 09/29/2028

2.52 3.93
AIR PRODUCTS & CHEMICALS (CALLABLE) 009158BH8 340,000.00 Barclays 01/08/29 101.98 346,719.42 7,171.62 7,019.25 DTD 02/08/2024 4.600% 02/08/2029

2.86 3.93
CISCO SYSTEMS INC (CALLABLE) 17275RBR2 420,000.00 Citigrou 01/26/29 102.77 431,631.48 11,778.48 11,729.70 DTD 02/26/2024 4.850% 02/26/2029

2.90 3.93
BLACKROCK FUNDING INC (CALLABLE) 09290DAA9 50,000.00 Citigrou 02/14/29 102.44 51,221.55 1,312.05 1,283.23 DTD 03/14/2024 4.700% 03/14/2029

2.95 3.90
BLACKROCK FUNDING INC (CALLABLE) 09290DAA9 725,000.00 BOFAML 02/14/29 102.44 742,712.48 17,357.23 17,467.93 DTD 03/14/2024 4.700% 03/14/2029

2.95 3.90
PFM Asset Management, a division of Page 18
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Corporate Note
ADOBE INC (CALLABLE) 00724PAF6 170,000.00 SEEL 03/04/29 102.82 174,800.63 5,025.03 4,956.23 DTD 04/04/2024 4.800% 04/04/2029

3.00 3.89
ADOBE INC (CALLABLE) 00724PAF6 205,000.00 BOFAML 03/04/29 102.82 210,788.99 6,094.44 6,001.01 DTD 04/04/2024 4.800% 04/04/2029

3.00 3.89
WELLS FARGO & COMPANY (CALLABLE) 95000U3T8 110,000.00 SEEL 04/23/28 101.96 112,157.87 2,069.87 2,086.44 DTD 04/23/2025 4.970% 04/23/2029

2.24 4.44
WELLS FARGO & COMPANY (CALLABLE) 95000U3T8 290,000.00 WellsFar 04/23/28 101.96 295,688.93 5,688.93 5,688.93 DTD 04/23/2025 4.970% 04/23/2029

2.24 4.44
BANK OF AMERICA CORP (CALLABLE) 06051GMT3 600,000.00 BOFAML 05/09/28 101.36 608,187.00 8,187.00 8,187.00 DTD 05/09/2025 4.623% 05/09/2029

2.28 4.35
HOME DEPOT INC (CALLABLE) 437076DC3 125,000.00 MorganSt 05/25/29 102.58 128,229.75 4,036.00 3,824.34 DTD 06/25/2024 4.750% 06/25/2029

3.16 3.93
HOME DEPOT INC (CALLABLE) 437076DC3 250,000.00 PNCBank 05/25/29 102.58 256,459.50 7,832.00 7,471.14 DTD 06/25/2024 4.750% 06/25/2029

3.16 3.93
AMERICAN HONDA FINANCE 02665WFQ9 400,000.00 Deutsche 100.94 403,760.80 4,240.80 4,131.11 DTD 09/05/2024 4.400% 09/05/2029

3.41 4.13
MARS INC (CALLABLE) 571676AY1 115,000.00 BOFAML 02/01/30 102.44 117,803.82 2,928.02 2,911.77 DTD 03/12/2025 4.800% 03/01/2030

3.75 4.13
STATE STREET CORP (CALLABLE) 857477DB6 200,000.00 MorganSt 03/24/30 103.13 206,251.60 6,251.60 6,251.60 DTD 04/24/2025 4.834% 04/24/2030

3.90 4.02
PACCAR FINANCIAL CORP 69371RT71 400,000.00 TD Secur 102.04 408,176.40 8,796.40 8,732.57 DTD 05/08/2025 4.550% 05/08/2030

3.99 4.01
ANALOG DEVICES INC (CALLABLE) 032654BE4 400,000.00 BOFAML 05/15/30 101.74 406,953.60 7,305.60 7,275.32 DTD 06/16/2025 4.500% 06/15/2030

3.96 4.08
NOVARTIS CAPITAL CORP (CALLABLE) 66989HAY4 510,000.00 JPMorgan 10/05/30 100.39 511,967.07 3,497.07 3,474.98 DTD 11/05/2025 4.100% 11/05/2030

4.40 3.99
SHELL FINANCE US INC (CALLABLE) 822905AN5 125,000.00 MorganSt 10/06/30 100.52 125,652.13 1,132.13 1,125.68 DTD 11/06/2025 4.125% 11/06/2030

4.40 3.98
SHELL FINANCE US INC (CALLABLE) 822905AN5 450,000.00 RBC Capi 10/06/30 100.52 452,347.65 3,211.65 3,199.99 DTD 11/06/2025 4.125% 11/06/2030

4.40 3.98
NORTHERN TRUST CORP 665859AY0 115,000.00 BOFAML 100.38 115,434.47 490.82 490.19 DTD 11/19/2025 4.150% 11/19/2030

4.46 4.04
NORTHERN TRUST CORP 665859AY0 460,000.00 CIDLY 100.38 461,737.88 2,294.48 2,289.76 DTD 11/19/2025 4.150% 11/19/2030

4.46 4.04
PFM Asset Management, a division of Page 19
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Corporate Note
AMAZON.COM INC (CALLABLE) 023135CT1 575,000.00 JPMorgan 10/20/30 100.48 577,764.60 3,379.85 3,376.40 DTD 11/20/2025 4.100% 11/20/2030

4.43 3.99
Security Type Sub-Total 13,645,000.00 13,760,396.20 282,369.50 179,212.37 2.58 3.92 Bank Note
MORGAN STANLEY BANK NA (CALLABLE) 61690U8E3 525,000.00 Citigrou 07/14/27 101.41 532,385.18 6,860.18 7,090.59 DTD 07/19/2024 4.968% 07/14/2028

1.53 4.37
Security Type Sub-Total 525,000.00 532,385.18 6,860.18 7,090.59 1.53 4.37 Asset-Backed Security
CARMX 2022-3 A3 14318MAD1 25,281.24 RBC Capi 99.97 25,274.51 (6.13) (6.55) DTD 07/20/2022 3.970% 04/15/2027

0.14 4.20
NAROT 2022-B A3 65480JAC4 34,008.96 WellsFar 100.10 34,041.48 39.55 34.73 DTD 09/28/2022 4.460% 05/17/2027

0.26 4.18
GMCAR 2022-4 A3 36265QAD8 49,991.53 RBC Capi 100.16 50,070.02 86.68 81.38 DTD 10/12/2022 4.820% 08/16/2027

0.20 4.08
TAOT 2023-A A3 891940AC2 94,142.89 BOFAML 100.20 94,328.44 185.60 185.57 DTD 01/30/2023 4.630% 09/15/2027

0.38 4.18
HDMOT 2023-A A3 41285JAD0 57,247.47 JPMorgan 100.27 57,400.43 158.73 155.41 DTD 02/23/2023 5.050% 12/15/2027

0.33 4.32
FORDO 2023-A A3 344928AD8 55,441.25 BNPPSA 100.21 55,558.73 123.26 120.09 DTD 03/31/2023 4.650% 02/15/2028

0.45 4.25
HAROT 2023-3 A3 43815QAC1 183,887.76 BOFAML 100.74 185,250.73 1,400.89 1,381.67 DTD 08/22/2023 5.410% 02/18/2028

0.56 4.14
DCENT 2023-A1 A 254683CY9 320,000.00 RBC Capi 100.08 320,258.24 276.80 266.86 DTD 04/11/2023 4.310% 03/15/2028

0.28 4.06
BACCT 2023-A1 A1 05522RDG0 170,000.00 BOFAML 100.36 170,616.08 654.57 635.31 DTD 06/16/2023 4.790% 05/15/2028

0.44 4.02
AMXCA 2023-1 A 02582JJZ4 190,000.00 RBC Capi 100.39 190,739.48 756.33 747.89 DTD 06/14/2023 4.870% 05/15/2028

0.44 4.04
COMET 2023-A1 A 14041NGD7 490,000.00 RBC Capi 100.19 490,930.02 1,042.38 985.48 DTD 05/24/2023 4.420% 05/15/2028

0.44 4.03
PFM Asset Management, a division of Page 20
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Asset-Backed Security
DCENT 2023-A2 A 254683CZ6 350,000.00 BOFAML 100.53 351,861.65 1,908.93 1,885.83 DTD 06/28/2023 4.930% 06/15/2028

0.53 3.96
HAROT 2023-4 A3 438123AC5 64,539.00 JPMorgan 101.10 65,245.84 718.20 713.42 DTD 11/08/2023 5.670% 06/21/2028

0.73 4.23
FITAT 2023-1 A3 31680EAD3 224,268.58 JPMorgan 100.82 226,097.26 1,842.59 1,836.24 DTD 08/23/2023 5.530% 08/15/2028

0.63 4.30
CHAIT 2023-A1 A 161571HT4 405,000.00 JPMorgan 100.97 408,915.54 4,027.81 3,981.68 DTD 09/15/2023 5.160% 09/15/2028

0.77 3.95
AMXCA 2023-3 A 02582JKD1 410,000.00 Citigrou 101.07 414,371.83 4,390.16 4,382.45 DTD 09/19/2023 5.230% 09/15/2028

0.77 3.89
PILOT 2025-1A A3 73329KAD8 100,000.00 Barclays 101.09 101,091.50 1,102.21 1,100.40 DTD 05/21/2025 4.610% 10/20/2028

1.63 3.98
BACCT 2023-A2 A2 05522RDH8 180,000.00 BOFAML 101.04 181,864.26 1,888.43 1,879.07 DTD 12/14/2023 4.980% 11/15/2028

0.92 3.91
AMXCA 2024-1 A 02582JKH2 495,000.00 Barclays 101.92 504,497.07 9,598.54 9,598.54 DTD 04/23/2024 5.230% 04/16/2029

1.30 3.82
HAROT 2025-2 A3 437921AD1 115,000.00 JPMorgan 100.50 115,575.23 588.08 586.32 DTD 05/08/2025 4.150% 10/15/2029

1.80 3.90
BAAT 2025-1A A3 05594BAD8 80,000.00 BOFAML 100.73 80,585.28 590.80 589.94 DTD 05/12/2025 4.350% 11/20/2029

1.43 3.88
MBART 2025-1 A3 58773DAD6 550,000.00 WellsFar 101.23 556,787.55 3,113.72 3,571.27 DTD 01/23/2025 4.780% 12/17/2029

1.28 3.86
VZMT 2025-3 A1A 92348KDY6 415,000.00 BOFAML 100.75 418,102.95 3,120.79 3,117.53 DTD 03/31/2025 4.510% 03/20/2030

1.78 4.18
GMCAR 2025-2 A3 362549AD9 90,000.00 TD Secur 100.78 90,698.76 712.01 710.59 DTD 05/14/2025 4.280% 04/16/2030

1.77 3.87
BACCT 2025-A1 A 05522RDK1 250,000.00 BOFAML 101.24 253,089.50 3,090.45 3,089.50 DTD 06/12/2025 4.310% 05/15/2030

2.29 3.81
WFCIT 2025-A1 A 92970QAJ4 485,000.00 WellsFar 101.33 491,455.84 6,463.89 6,461.72 DTD 06/10/2025 4.340% 05/15/2030

2.30 3.78
CCCIT 2025-A1 A 17305EHA6 550,000.00 Citigrou 101.25 556,896.45 7,045.66 7,033.88 DTD 06/26/2025 4.300% 06/21/2030

2.36 3.78
Security Type Sub-Total 6,433,808.68 6,491,604.67 54,920.93 55,126.22 1.18 3.96 PFM Asset Management, a division of Page 21
U.S. Bancorp Asset Management, Inc.

Managed Account Fair Market Value & Analytics For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Dated Date/Coupon/Maturity CUSIP Par Broker Date Price Value On Cost Amort Cost at Mkt Security Type/Description Next Call Market Market Unreal G/L Unreal G/L Effective YTM Duration
Managed Account Sub-Total 56,707,806.28 56,535,835.25 1,214,217.27 729,645.60 2.53 3.71 Joint Powers Authority
CAMP Pool 190,569.55 1.00 190,569.55 0.00 0.00 0.00
Liquid Sub-Total 190,569.55 190,569.55 0.00 0.00 0.00
Total Investments $57,227,774.56
$501,369.76
$56,726,404.80
Accrued Interest
Securities Sub-Total $56,898,375.83 $1,214,217.27 $729,645.60 2.53 3.71% PFM Asset Management, a division of Page 22
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Transaction Type
Trade Settle Security Description CUSIP Par Proceeds
Principal Accrued
Interest Total Cost
Realized G/L Realized G/L Sale
Amort Cost Method
BUY
11/05/25 NOVARTIS CAPITAL CORP (CALLABLE)
DTD 11/05/2025 4.100% 11/05/2030
11/03/25 66989HAY4 510,000.00 (508,470.00) 0.00 (508,470.00) 11/06/25 SHELL FINANCE US INC (CALLABLE)
DTD 11/06/2025 4.125% 11/06/2030
11/03/25 822905AN5 125,000.00 (124,520.00) 0.00 (124,520.00) 11/06/25 SHELL FINANCE US INC (CALLABLE)
DTD 11/06/2025 4.125% 11/06/2030
11/04/25 822905AN5 450,000.00 (449,136.00) 0.00 (449,136.00) 11/07/25 US TREASURY N/B
DTD 01/31/2025 4.250% 01/31/2030
11/04/25 91282CMG3 300,000.00 (306,820.31) (3,430.03) (310,250.34) 11/19/25 NORTHERN TRUST CORP
DTD 11/19/2025 4.150% 11/19/2030
11/12/25 665859AY0 115,000.00 (114,943.65) 0.00 (114,943.65) 11/19/25 NORTHERN TRUST CORP
DTD 11/19/2025 4.150% 11/19/2030
11/13/25 665859AY0 460,000.00 (459,443.40) 0.00 (459,443.40) 11/20/25 AMAZON.COM INC (CALLABLE)
DTD 11/20/2025 4.100% 11/20/2030
11/17/25 023135CT1 575,000.00 (574,384.75) 0.00 (574,384.75) Transaction Type Sub-Total 2,535,000.00 (2,537,718.11) (3,430.03) (2,541,148.14)

INTEREST
11/01/25 CALIFORNIA ST UNIV-B
DTD 07/29/2021 0.862% 11/01/2025
11/01/25 13077DQD7 0.00 366.35 366.35
11/25/25 FHMS K514 A2
DTD 02/01/2024 4.572% 12/01/2028
11/01/25 3137HBLV4 0.00 1,104.90 1,104.90
11/25/25 FHMS K065 A2
DTD 07/01/2017 3.243% 04/01/2027
11/01/25 3137F1G44 0.00 1,486.38 1,486.38
11/25/25 FHMS K064 A2
DTD 05/01/2017 3.224% 03/01/2027
11/01/25 3137BXQY1 0.00 1,477.67 1,477.67
11/25/25 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
11/01/25 3136BQDE6 0.00 1,833.51 1,833.51
11/25/25 FHMS K511 A2
DTD 12/01/2023 4.860% 10/01/2028
11/01/25 3137HB3G7 0.00 1,113.75 1,113.75
11/25/25 FHMS K508 A2
DTD 10/01/2023 4.740% 08/01/2028
11/01/25 3137HAQ74 0.00 1,975.00 1,975.00
11/25/25 FHMS K509 A2
DTD 10/01/2023 4.850% 09/01/2028
11/01/25 3137HAST4 0.00 1,515.63 1,515.63
PFM Asset Management, a division of Page 23
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

INTEREST
11/25/25 FHMS KJ48 A1
DTD 12/01/2023 4.858% 05/01/2028
11/01/25 3137HBC69 0.00 1,540.82 1,540.82
11/25/25 FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
11/01/25 3137BTUM1 0.00 1,014.17 1,014.17
11/25/25 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
11/01/25 3137HDJJ0 0.00 2,144.66 2,144.66
11/25/25 FHMS K505 A2
DTD 07/01/2023 4.819% 06/01/2028
11/01/25 3137HACX2 0.00 2,208.71 2,208.71
11/25/25 FHMS K510 A2
DTD 11/01/2023 5.069% 10/01/2028
11/01/25 3137HB3D4 0.00 760.35 760.35
11/25/25 FHMS K058 A2
DTD 11/01/2016 2.653% 08/01/2026
11/01/25 3137BSP72 0.00 1,215.96 1,215.96
11/25/25 FHMS K524 A2
DTD 07/01/2024 4.720% 05/01/2029
11/01/25 3137HDV56 0.00 1,730.67 1,730.67
11/25/25 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
11/01/25 3137HAD45 0.00 1,716.46 1,716.46
11/25/25 FHMS K526 A2
DTD 08/01/2024 4.543% 07/01/2029
11/01/25 3137HDXL9 0.00 1,873.99 1,873.99
11/25/25 FHMS K507 A2
DTD 09/01/2023 4.800% 09/01/2028
11/01/25 3137HAMS2 0.00 2,000.00 2,000.00
11/25/25 FHMS K054 A2
DTD 04/01/2016 2.745% 01/01/2026
11/01/25 3137BNGT5 0.00 445.38 445.38
11/25/25 FHMS K539 A2
DTD 04/01/2025 4.410% 01/01/2030
11/01/25 3137HKXJ8 0.00 698.25 698.25
11/25/25 FHMS K506 A2
DTD 09/01/2023 4.650% 08/01/2028
11/01/25 3137HAMH6 0.00 3,100.00 3,100.00
11/03/25 NORDEA BANK ABP NEW YORK
DTD 11/03/2022 5.530% 11/03/2025
11/03/25 65558UYF3 0.00 12,442.50 12,442.50
11/07/25 FANNIE MAE
DTD 11/12/2020 0.500% 11/07/2025
11/07/25 3135G06G3 0.00 1,625.00 1,625.00
11/08/25 PACCAR FINANCIAL CORP
DTD 05/08/2025 4.550% 05/08/2030
11/08/25 69371RT71 0.00 9,100.00 9,100.00
11/09/25 BANK OF AMERICA CORP (CALLABLE)
DTD 05/09/2025 4.623% 05/09/2029
11/09/25 06051GMT3 0.00 13,869.00 13,869.00
PFM Asset Management, a division of Page 24
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

INTEREST
11/15/25 HDMOT 2023-A A3
DTD 02/23/2023 5.050% 12/15/2027
11/15/25 41285JAD0 0.00 273.97 273.97
11/15/25 FORDO 2023-A A3
DTD 03/31/2023 4.650% 02/15/2028
11/15/25 344928AD8 0.00 238.81 238.81
11/15/25 BACCT 2023-A2 A2
DTD 12/14/2023 4.980% 11/15/2028
11/15/25 05522RDH8 0.00 747.00 747.00
11/15/25 US TREASURY N/B
DTD 11/15/2016 2.000% 11/15/2026
11/15/25 912828U24 0.00 750.00 750.00
11/15/25 LOCKHEED MARTIN CORP (CALLABLE)
DTD 05/25/2023 4.450% 05/15/2028
11/15/25 539830BZ1 0.00 1,335.00 1,335.00
11/15/25 BACCT 2023-A1 A1
DTD 06/16/2023 4.790% 05/15/2028
11/15/25 05522RDG0 0.00 678.58 678.58
11/15/25 AMXCA 2023-1 A
DTD 06/14/2023 4.870% 05/15/2028
11/15/25 02582JJZ4 0.00 771.08 771.08
11/15/25 NAROT 2022-B A3
DTD 09/28/2022 4.460% 05/17/2027
11/15/25 65480JAC4 0.00 147.15 147.15
11/15/25 AMXCA 2023-3 A
DTD 09/19/2023 5.230% 09/15/2028
11/15/25 02582JKD1 0.00 1,786.92 1,786.92
11/15/25 DCENT 2023-A1 A
DTD 04/11/2023 4.310% 03/15/2028
11/15/25 254683CY9 0.00 1,149.33 1,149.33
11/15/25 COMET 2023-A1 A
DTD 05/24/2023 4.420% 05/15/2028
11/15/25 14041NGD7 0.00 1,804.83 1,804.83
11/15/25 AMXCA 2024-1 A
DTD 04/23/2024 5.230% 04/16/2029
11/15/25 02582JKH2 0.00 2,157.37 2,157.37
11/15/25 UNITEDHEALTH GROUP INC
(CALLABLE)
DTD 05/19/2021 1.150% 05/15/2026
11/15/25 91324PEC2 0.00 1,293.75 1,293.75
11/15/25 BACCT 2025-A1 A
DTD 06/12/2025 4.310% 05/15/2030
11/15/25 05522RDK1 0.00 897.92 897.92
11/15/25 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
11/15/25 31680EAD3 0.00 1,119.84 1,119.84
11/15/25 CHAIT 2023-A1 A
DTD 09/15/2023 5.160% 09/15/2028
11/15/25 161571HT4 0.00 1,741.50 1,741.50
PFM Asset Management, a division of Page 25
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

INTEREST
11/15/25 MBART 2025-1 A3
DTD 01/23/2025 4.780% 12/17/2029
11/15/25 58773DAD6 0.00 2,190.83 2,190.83
11/15/25 WFCIT 2025-A1 A
DTD 06/10/2025 4.340% 05/15/2030
11/15/25 92970QAJ4 0.00 1,754.08 1,754.08
11/15/25 CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027
11/15/25 14318MAD1 0.00 111.34 111.34
11/15/25 HAROT 2025-2 A3
DTD 05/08/2025 4.150% 10/15/2029
11/15/25 437921AD1 0.00 397.71 397.71
11/15/25 TAOT 2023-A A3
DTD 01/30/2023 4.630% 09/15/2027
11/15/25 891940AC2 0.00 406.91 406.91
11/15/25 DCENT 2023-A2 A
DTD 06/28/2023 4.930% 06/15/2028
11/15/25 254683CZ6 0.00 1,437.92 1,437.92
11/16/25 GMCAR 2022-4 A3
DTD 10/12/2022 4.820% 08/16/2027
11/16/25 36265QAD8 0.00 249.09 249.09
11/16/25 GMCAR 2025-2 A3
DTD 05/14/2025 4.280% 04/16/2030
11/16/25 362549AD9 0.00 321.00 321.00
11/18/25 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
11/18/25 43815QAC1 0.00 908.88 908.88
11/20/25 VZMT 2025-3 A1A
DTD 03/31/2025 4.510% 03/20/2030
11/20/25 92348KDY6 0.00 1,559.71 1,559.71
11/20/25 PILOT 2025-1A A3
DTD 05/21/2025 4.610% 10/20/2028
11/20/25 73329KAD8 0.00 384.17 384.17
11/20/25 BAAT 2025-1A A3
DTD 05/12/2025 4.350% 11/20/2029
11/20/25 05594BAD8 0.00 290.00 290.00
11/21/25 HAROT 2023-4 A3
DTD 11/08/2023 5.670% 06/21/2028
11/21/25 438123AC5 0.00 327.99 327.99
Transaction Type Sub-Total 0.00 95,591.79 95,591.79

MATURITY
11/01/25 CALIFORNIA ST UNIV-B
DTD 07/29/2021 0.862% 11/01/2025
11/01/25 13077DQD7 85,000.00 85,000.00 0.00 85,000.00 0.00 0.00 11/03/25 NORDEA BANK ABP NEW YORK
DTD 11/03/2022 5.530% 11/03/2025
11/03/25 65558UYF3 450,000.00 450,000.00 0.00 450,000.00 0.00 0.00 PFM Asset Management, a division of Page 26
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

MATURITY
11/07/25 FANNIE MAE
DTD 11/12/2020 0.500% 11/07/2025
11/07/25 3135G06G3 650,000.00 650,000.00 0.00 650,000.00 2,327.00 0.00 Transaction Type Sub-Total 1,185,000.00 1,185,000.00 0.00 1,185,000.00 2,327.00 0.00

PAYDOWNS
11/25/25 FHMS KJ46 A1
DTD 07/01/2023 4.777% 06/01/2028
11/01/25 3137HAD45 492.32 492.32 0.00 492.32 0.01 0.01
11/25/25 FHMS K061 A2
DTD 01/01/2017 3.347% 11/01/2026
11/01/25 3137BTUM1 759.96 759.96 0.00 759.96 23.39 7.12 11/25/25 FHMS K054 A2
DTD 04/01/2016 2.745% 01/01/2026
11/01/25 3137BNGT5 44,692.88 44,692.88 0.00 44,692.88 1,850.56 155.29 11/25/25 FHMS K522 A2
DTD 06/01/2024 4.803% 05/01/2029
11/01/25 3137HDJJ0 52.68 52.68 0.00 52.68 0.00 0.00
11/25/25 FHMS KJ48 A1
DTD 12/01/2023 4.858% 05/01/2028
11/01/25 3137HBC69 997.97 997.97 0.00 997.97 0.01 0.00
11/25/25 FNA 2023-M6 A2
DTD 07/01/2023 4.190% 07/01/2028
11/01/25 3136BQDE6 50.03 50.03 0.00 50.03 0.85 0.47
11/15/25 FITAT 2023-1 A3
DTD 08/23/2023 5.530% 08/15/2028
11/15/25 31680EAD3 18,733.91 18,733.91 0.00 18,733.91 1.16 0.64 11/15/25 HDMOT 2023-A A3
DTD 02/23/2023 5.050% 12/15/2027
11/15/25 41285JAD0 7,854.19 7,854.19 0.00 7,854.19 0.79 0.34 11/15/25 TAOT 2023-A A3
DTD 01/30/2023 4.630% 09/15/2027
11/15/25 891940AC2 11,319.36 11,319.36 0.00 11,319.36 0.00 0.00 11/15/25 CARMX 2022-3 A3
DTD 07/20/2022 3.970% 04/15/2027
11/15/25 14318MAD1 8,372.08 8,372.08 0.00 8,372.08 0.20 0.06 11/15/25 FORDO 2023-A A3
DTD 03/31/2023 4.650% 02/15/2028
11/15/25 344928AD8 6,186.55 6,186.55 0.00 6,186.55 0.64 0.29 11/15/25 NAROT 2022-B A3
DTD 09/28/2022 4.460% 05/17/2027
11/15/25 65480JAC4 5,581.61 5,581.61 0.00 5,581.61 1.15 0.37 11/16/25 GMCAR 2022-4 A3
DTD 10/12/2022 4.820% 08/16/2027
11/16/25 36265QAD8 12,022.62 12,022.62 0.00 12,022.62 1.97 0.71 11/18/25 HAROT 2023-3 A3
DTD 08/22/2023 5.410% 02/18/2028
11/18/25 43815QAC1 17,711.93 17,711.93 0.00 17,711.93 3.65 1.83 PFM Asset Management, a division of Page 27
U.S. Bancorp Asset Management, Inc.

Managed Account Security Transactions & Interest For the Month Ending November 30, 2025

PAYDOWNS
11/21/25 HAROT 2023-4 A3
DTD 11/08/2023 5.670% 06/21/2028
11/21/25 438123AC5 4,876.18 4,876.18 0.00 4,876.18 0.86 0.50 Transaction Type Sub-Total 139,704.27 139,704.27 0.00 139,704.27 1,885.24 167.63 SELL
11/20/25 US TREASURY N/B
DTD 06/30/2021 1.250% 06/30/2028
11/17/25 91282CCH2 200,000.00 188,359.38 971.47 189,330.85 11,445.32 3,694.65 FIFO Transaction Type Sub-Total 200,000.00 188,359.38 971.47 189,330.85 11,445.32 3,694.65 Managed Account Sub-Total (1,024,654.46) 93,133.23 (931,521.23) 15,657.56 3,862.28 Total Security Transactions ($1,024,654.46) $93,133.23 ($931,521.23) $15,657.56 $3,862.28 PFM Asset Management, a division of Page 28
U.S. Bancorp Asset Management, Inc.

Account Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Trade Settlement Share or Dollar Amount Total
Date Date Transaction Description Unit Price of Transaction Shares Owned CAMP Pool
Opening Balance 1,124,172.64
11/03/25 11/03/25 Purchase - Interest 65558UYF3 1.00 12,442.50 1,136,615.14 11/03/25 11/03/25 Purchase - Interest 13077DQD7 1.00 366.35 1,136,981.49 11/03/25 11/03/25 Purchase - Principal 65558UYF3 1.00 450,000.00 1,586,981.49 11/03/25 11/03/25 Purchase - Principal 13077DQD7 1.00 85,000.00 1,671,981.49 11/05/25 11/05/25 Redemption - Principal 66989HAY4 1.00 (508,470.00) 1,163,511.49 11/06/25 11/06/25 Redemption - Principal 822905AN5 1.00 (124,520.00) 1,038,991.49 11/06/25 11/06/25 Redemption - Principal 822905AN5 1.00 (449,136.00) 589,855.49 11/07/25 11/07/25 Purchase - Interest 3135G06G3 1.00 1,625.00 591,480.49 11/07/25 11/07/25 Purchase - Principal 3135G06G3 1.00 650,000.00 1,241,480.49 11/07/25 11/07/25 Redemption - Interest 91282CMG3 1.00 (3,430.03) 1,238,050.46 11/07/25 11/07/25 Redemption - Principal 91282CMG3 1.00 (306,820.31) 931,230.15 11/10/25 11/10/25 Purchase - Interest 06051GMT3 1.00 13,869.00 945,099.15 11/10/25 11/10/25 Purchase - Interest 69371RT71 1.00 9,100.00 954,199.15 11/10/25 11/10/25 U.S. Bank Fees August 2025 1.00 223.29 954,422.44 11/12/25 11/12/25 U.S. Bank Fees August 2025 1.00 (246.95) 954,175.49 11/17/25 11/17/25 Purchase - Interest 539830BZ1 1.00 1,335.00 955,510.49 11/17/25 11/17/25 Purchase - Interest 912828U24 1.00 750.00 956,260.49 11/17/25 11/17/25 Purchase - Interest 91324PEC2 1.00 1,293.75 957,554.24 11/17/25 11/17/25 Purchase - Interest 02582JJZ4 1.00 771.08 958,325.32 11/17/25 11/17/25 Purchase - Interest 02582JKD1 1.00 1,786.92 960,112.24 11/17/25 11/17/25 Purchase - Interest 02582JKH2 1.00 2,157.37 962,269.61 PFM Asset Management, a division of Page 29
U.S. Bancorp Asset Management, Inc.

Account Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Trade Settlement Share or Dollar Amount Total
Date Date Transaction Description Unit Price of Transaction Shares Owned CAMP Pool
11/17/25 11/17/25 Purchase - Interest 05522RDG0 1.00 678.58 962,948.19 11/17/25 11/17/25 Purchase - Interest 05522RDH8 1.00 747.00 963,695.19 11/17/25 11/17/25 Purchase - Interest 05522RDK1 1.00 897.92 964,593.11 11/17/25 11/17/25 Purchase - Interest 14041NGD7 1.00 1,804.83 966,397.94 11/17/25 11/17/25 Purchase - Interest 14318MAD1 1.00 111.34 966,509.28 11/17/25 11/17/25 Purchase - Interest 161571HT4 1.00 1,741.50 968,250.78 11/17/25 11/17/25 Purchase - Interest 254683CY9 1.00 1,149.33 969,400.11 11/17/25 11/17/25 Purchase - Interest 254683CZ6 1.00 1,437.92 970,838.03 11/17/25 11/17/25 Purchase - Interest 31680EAD3 1.00 1,119.84 971,957.87 11/17/25 11/17/25 Purchase - Interest 344928AD8 1.00 238.81 972,196.68 11/17/25 11/17/25 Purchase - Interest 362549AD9 1.00 321.00 972,517.68 11/17/25 11/17/25 Purchase - Interest 36265QAD8 1.00 249.09 972,766.77 11/17/25 11/17/25 Purchase - Interest 41285JAD0 1.00 273.97 973,040.74 11/17/25 11/17/25 Purchase - Interest 437921AD1 1.00 397.71 973,438.45 11/17/25 11/17/25 Purchase - Interest 58773DAD6 1.00 2,190.83 975,629.28 11/17/25 11/17/25 Purchase - Interest 65480JAC4 1.00 147.15 975,776.43 11/17/25 11/17/25 Purchase - Interest 891940AC2 1.00 406.91 976,183.34 11/17/25 11/17/25 Purchase - Interest 92970QAJ4 1.00 1,754.08 977,937.42 11/17/25 11/17/25 Purchase - Principal 14318MAD1 1.00 8,372.08 986,309.50 11/17/25 11/17/25 Purchase - Principal 31680EAD3 1.00 18,733.91 1,005,043.41 11/17/25 11/17/25 Purchase - Principal 344928AD8 1.00 6,186.55 1,011,229.96 11/17/25 11/17/25 Purchase - Principal 891940AC2 1.00 11,319.36 1,022,549.32 PFM Asset Management, a division of Page 30
U.S. Bancorp Asset Management, Inc.

Account Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Trade Settlement Share or Dollar Amount Total
Date Date Transaction Description Unit Price of Transaction Shares Owned CAMP Pool
11/17/25 11/17/25 Purchase - Principal 65480JAC4 1.00 5,581.61 1,028,130.93 11/17/25 11/17/25 Purchase - Principal 41285JAD0 1.00 7,854.19 1,035,985.12 11/17/25 11/17/25 Purchase - Principal 36265QAD8 1.00 12,022.62 1,048,007.74 11/18/25 11/18/25 Purchase - Interest 43815QAC1 1.00 908.88 1,048,916.62 11/18/25 11/18/25 Purchase - Principal 43815QAC1 1.00 17,711.93 1,066,628.55 11/19/25 11/19/25 Redemption - Principal 665859AY0 1.00 (114,943.65) 951,684.90 11/19/25 11/19/25 Redemption - Principal 665859AY0 1.00 (459,443.40) 492,241.50 11/20/25 11/20/25 Purchase - Interest 05594BAD8 1.00 290.00 492,531.50 11/20/25 11/20/25 Purchase - Interest 73329KAD8 1.00 384.17 492,915.67 11/20/25 11/20/25 Purchase - Interest 92348KDY6 1.00 1,559.71 494,475.38 11/20/25 11/20/25 Purchase - Principal 91282CCH2 1.00 188,359.38 682,834.76 11/20/25 11/20/25 Purchase - Interest 91282CCH2 1.00 971.47 683,806.23 11/20/25 11/20/25 Redemption - Principal 023135CT1 1.00 (574,384.75) 109,421.48 11/21/25 11/21/25 Purchase - Interest 438123AC5 1.00 327.99 109,749.47 11/21/25 11/21/25 Purchase - Principal 438123AC5 1.00 4,876.18 114,625.65 11/25/25 11/25/25 Purchase - Interest 3136BQDE6 1.00 1,833.51 116,459.16 11/25/25 11/25/25 Purchase - Interest 3137BNGT5 1.00 445.38 116,904.54 11/25/25 11/25/25 Purchase - Interest 3137BSP72 1.00 1,215.96 118,120.50 11/25/25 11/25/25 Purchase - Interest 3137BTUM1 1.00 1,014.17 119,134.67 11/25/25 11/25/25 Purchase - Interest 3137BXQY1 1.00 1,477.67 120,612.34 11/25/25 11/25/25 Purchase - Interest 3137F1G44 1.00 1,486.38 122,098.72 11/25/25 11/25/25 Purchase - Interest 3137HACX2 1.00 2,208.71 124,307.43 PFM Asset Management, a division of Page 31
U.S. Bancorp Asset Management, Inc.

Account Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Trade Settlement Share or Dollar Amount Total
Date Date Transaction Description Unit Price of Transaction Shares Owned CAMP Pool
11/25/25 11/25/25 Purchase - Interest 3137HAD45 1.00 1,716.46 126,023.89 11/25/25 11/25/25 Purchase - Interest 3137HAMH6 1.00 3,100.00 129,123.89 11/25/25 11/25/25 Purchase - Interest 3137HAMS2 1.00 2,000.00 131,123.89 11/25/25 11/25/25 Purchase - Interest 3137HAQ74 1.00 1,975.00 133,098.89 11/25/25 11/25/25 Purchase - Interest 3137HAST4 1.00 1,515.63 134,614.52 11/25/25 11/25/25 Purchase - Interest 3137HB3D4 1.00 760.35 135,374.87 11/25/25 11/25/25 Purchase - Interest 3137HB3G7 1.00 1,113.75 136,488.62 11/25/25 11/25/25 Purchase - Interest 3137HBC69 1.00 1,540.82 138,029.44 11/25/25 11/25/25 Purchase - Interest 3137HBLV4 1.00 1,104.90 139,134.34 11/25/25 11/25/25 Purchase - Interest 3137HDJJ0 1.00 2,144.66 141,279.00 11/25/25 11/25/25 Purchase - Interest 3137HDV56 1.00 1,730.67 143,009.67 11/25/25 11/25/25 Purchase - Interest 3137HDXL9 1.00 1,873.99 144,883.66 11/25/25 11/25/25 Purchase - Interest 3137HKXJ8 1.00 698.25 145,581.91 11/25/25 11/25/25 Purchase - Principal 3137HAD45 1.00 492.32 146,074.23 11/25/25 11/25/25 Purchase - Principal 3137HDJJ0 1.00 52.68 146,126.91 11/25/25 11/25/25 Purchase - Principal 3137HBC69 1.00 997.97 147,124.88 11/25/25 11/25/25 Purchase - Principal 3137BTUM1 1.00 759.96 147,884.84 11/25/25 11/25/25 Purchase - Principal 3137BNGT5 1.00 44,692.88 192,577.72 11/25/25 11/25/25 Purchase - Principal 3136BQDE6 1.00 50.03 192,627.75 11/28/25 11/28/25 IP Fees October 2025 1.00 (4,199.64) 188,428.11 11/28/25 11/28/25 U.S. Bank Fees September 2025 1.00 (239.19) 188,188.92 11/28/25 12/01/25 Accrual Income Div Reinvestment - Distributions 1.00 2,380.63 190,569.55 PFM Asset Management, a division of Page 32
U.S. Bancorp Asset Management, Inc.

Account Statement For the Month Ending November 30, 2025

CITY OF LAKE ELSINORE - LAKE ELSINORE - CITY FUNDS
Trade Settlement Share or Dollar Amount Total
Date Date Transaction Description Unit Price of Transaction Shares Owned 190,569.55
190,569.55
190,569.55
704,782.73
13,850.41

0.00 (22,802,820.14)
22,723,469.77
269,919.92
2,380.63
190,569.55

0.00 (2,545,833.92)
1,612,230.83
1,124,172.64
Monthly Distribution Yield
Average Monthly Balance
Closing Balance
Month of Fiscal YTD
Cash Dividends and Income
Closing Balance
Check Disbursements
Redemptions (Excl. Checks)
Purchases
Opening Balance
Closing Balance
November January-November

4.10%
PFM Asset Management, a division of Page 33
U.S. Bancorp Asset Management, Inc.

Page 1 of 3 ends

REPORT TO SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE

CITY OF LAKE ELSINORE
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Barbara Leibold, Agency Counsel
Date: January 13, 2026
Subject: Recognized Obligation Payment Schedule (ROPS 26-27) and Administrative Budget for the period July 1, 2026 through June 30, 2027 Recommendation

1. Find that the project is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines; and

2. Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 26-27) AND ADMINISTRATIVE BUDGET FOR JULY 1, 2026 THROUGH JUNE 30, 2027.

Background
As part of the dissolution of the former Redevelopment Agency, Health and Safety Code Section 34177 (added by AB 1X 27, as amended to date) requires the Successor Agency to adopt a Recognized Obligation Payment Schedule (ROPS) that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34167 for each twelve month period of each fiscal year. The Successor Agency has previously adopted ROPS for prior twelve-month periods that have been approved by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, the Riverside Countywide Oversight Board (RCOB) and the State Department of Finance (DOF). (Subject Matter 1- 4 words only. Do Not add date or page numbering)

Page 2 of 3 ends

Discussion
Applicable law requires that the ROPS for July 2026 through June 2027 be submitted to DOF and the State Controller’s office, after approval by the Riverside Countywide Oversight Board, no later than February 2, 2026. The DOF has five (5) days after submittal to request a review and fortyfive (45) days to review the ROPS if it decides to do so. If the ROPS is not submitted by the deadline, the City is subject to a $10,000 fine for every day the ROPS is late and the administrative cost allowance for the Successor Agency is reduced by 26% after 10 days.

The attached ROPS 26-27 for the period July 1, 2026 – June 30, 2027 follows the form prescribed by the DOF and incorporates all of the remaining obligations identified in the previous ROPS. As the Successor Agency winds down the former Redevelopment Agency, the primary remaining enforceable obligations are the outstanding bonds, Stadium operation and maintenance, and the Summerly Disposition and Development Agreement. No new line items have been added.

Stadium Obligations
As described in the Report to the Successor Agency requesting approval of an Extension to the Eleventh Amendment to the Interim Stadium Management Agreement and the Stadium Operation and Maintenance Agreement, the Successor Agency’s ROPS 26 - 27 includes a request for Real Property Tax Trust Funds to cover the Successor Agency’s obligations for the period of July 1, 2026 through June 30, 2027 in the amount of $4,642,705 as follows:

Stadium ROPS 26-27A (July 1, 2026 – December 31, 2026)
Line 33 – Interim Management Agreement
Payment to Storm (6 months @ $101,626.25) $ 609,757.50
Capital Repair Schedule $ 900,000.00
Facilities Audit $ 75,000.00
Recapture PPA Adjustments* $1,848,190.00
*The Successor Agency requests $1,848,190 for the ROPS 26-27A period, for capital repairs that were previously approved by the Oversight Board and DOF, but completed after the ROPS period and subsequently swept through Prior Period Adjustments. This amount is comprised of $307,823.00 that was swept in the 21-22 PPA and $1,540,366 that was swept in the 23-24 PPA.

Stadium ROPS 26-27B (January 1, 2027 – June 30, 2027)
Line 32 Stadium Operation and Maintenance
Payment to City (6 months @ $101,626.25) $ 609,757.50
Capital Repair Budget $ 600,000.00
Administrative Budget
The Successor Agency staff has prepared the attached administrative budget for the fiscal period commencing on July 1, 2026 and continuing through June 30, 2027 (“FY 2026 - 2027 Administrative Budget”).
(Subject Matter 1- 4 words only. Do Not add date or page numbering)

Page 3 of 3 ends

In compliance with DOF guidance, all administrative costs, including city staff support costs, professional outside services, auditors and other administrative expenses have been combined into one line item. The Successor Agency is entitled to an administrative cost allowance (the “Administrative Cost Allowance”) pursuant to Health and Safety Code Sections 34171(b) and 34183(a)(3) in the approximate amount of $399,142 for the 2026-27 fiscal year of which approximately $199,571 will be disbursed July 1, 2026 and approximately $199,571 will be disbursed January 4, 2027.

Notably, the Successor Agency’s Administrative Cost Allowance has been reduced by approximately $150,000 from last year due to the reduction in the amount of RPTTF distributed in FY 25-26. That reduction results primarily from the full repayment and retirement of the Housing Fund Loan. In other words, as the obligations of the former Redevelopment Agency are retired and less RPTTF is required to satisfy the remaining obligations, the statutory calculation of the Administrative Cost Allowance is reduced.

The attached ROPS 26-27 and FY 2026-2027 Administrative Budget will be considered by the Riverside Countywide Oversight Board on January 15, 2026 and subsequently submitted to the State Department of Finance.

CEQA Exemption
Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter, adoption of the ROPS FY 2026-27 and the Administrative Budget FY 2026-27 is categorically exempt from CEQA pursuant to Section 15061(b)(3) of the State CEQA Guidelines because there is no possibility that the activities in question will have a significant impact on the environment and the amendment is merely the adoption of annual budget; it will not require any construction activities and will not lead to any direct or reasonably foreseeable indirect physical environmental impacts.

Fiscal Impact
Total RPTTF requested on ROPS 26-27 is $15,222,990 necessary to satisfy enforceable obligations and administrative budget expenses. Approval of the ROPS 26-27 by the Countywide Oversight Board and the Department of Finance will result in total RPTTF of $8,482,176 for ROPS 26-27A period and $6,740,814 for the ROPS 26-27B period being distributed to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore.

Attachments
Attachment 1 – Resolution
Exhibit A - ROPS 26-27
Exhibit B - Administrative Budget FY 26-27
RESOLUTION NO. SA-2026-

A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 26-27) AND ADMINISTRATIVE BUDGET FOR JULY 1, 2026 THROUGH JUNE 30, 2027 WHEREAS, the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (the “Successor Agency”) is charged with implementing enforceable obligations and winding down of the affairs of the former Redevelopment Agency of the City of Lake Elsinore (the “Agency”) in accordance with the California Health and Safety Code; and WHEREAS, Senate Bill (SB) 107, enacted in September 2016, added Health and Safety Code Section 34177(o) requiring the Successor Agency to prepare and adopt a “Recognized Obligation Payment Schedule” that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34171 for twelve month periods, including July 2026 through June 2027; and
WHEREAS, applicable law requires that the ROPS 26-27 for the period July 1, 2026 through June 30, 2027 be submitted to the Department of Finance and the State Controller’s office, after approval by the Riverside Countywide Oversight Board, no later than February 2, 2026 or be subject to penalties; and
WHEREAS, the Successor Agency staff has prepared an administrative budget for the fiscal period commencing on July 1, 2026 and continuing through June 30, 2027 (“FY 26-27 Administrative Budget”), substantially in the form shown in Attachment “B”, attached hereto and incorporated herein by this reference; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference.

SECTION 2. The Successor Agency hereby approves the Schedule attached hereto as Exhibit A as the Recognized Obligation Payment Schedule 26-27 for the period July 1, 2026 through June 30, 2027. Pursuant to Health & Safety Code Section 34173, the Successor Agency’s liability, including, but not limited to, its liability for the obligations on the attached schedule, is limited to the total sum of property tax revenues it receives pursuant to Part 1.85 of AB X1 26.

SECTION 3. The Successor Agency hereby approves the Schedule attached hereto as Exhibit B as the Successor Agency Administrative Budget FY 26-27.

SECTION 4. The Successor Agency has examined all of the items on the ROPS FY 26-27 and finds that each of them is necessary for the continued maintenance and preservation of property owned by the Successor Agency until disposition in accordance with the Dissolution Act, the continued administration of the ongoing enforceable obligations, or the expeditious wind-down of the affairs of the former Redevelopment Agency of the City of Lake Elsinore.

SA Reso No. SA 2026-

Page 2 of 2 ends

SECTION 5. Executive Director Simpson, or his designee, is hereby authorized to make necessary minor corrections or adjustments and to submit the ROPS to the Riverside Countywide Oversight Board and to such parties as may be required in accordance with the Health & Safety Code, and to take such other actions on behalf of the Successor Agency with respect to the ROPS as may be necessary in accordance with applicable law.

SECTION 6. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Successor Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

SECTION 7. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code.

Passed and Adopted at a regular meeting of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 13th day of January 2026.

Robert E. Magee
Chair
Attest:

Candice Alvarez, MMC
Secretary

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, Secretary of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, do hereby certify that Resolution No. SA 2026- was adopted by the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at the Regular meeting of January 13, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
Secretary

EXHIBIT A
ROPS 26-27

EXHIBIT B
ADMINISTRATIVE BUDGET FY 26-27
Recognized Obligation Payment Schedule (ROPS 26-27) - Summary Filed for the July 1, 2026 through June 30, 2027 Period Successor Agency: Lake Elsinore
County: Riverside
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
26-27A Total
(July -
December)
26-27B Total
(January -
June)
ROPS 26-27
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 1,210,000 $ - $ 1,210,000 B Bond Proceeds - - -
C Reserve Balance 1,210,000 - 1,210,000
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 7,272,176 $ 6,740,814 $ 14,012,990 F RPTTF 7,072,605 6,541,243 13,613,848
G Administrative RPTTF 199,571 199,571 399,142
H Current Period Enforceable Obligations (A+E) $ 8,482,176 $ 6,740,814 $ 15,222,990 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
Lake Elsinore
Recognized Obligation Payment Schedule (ROPS 26-27) - ROPS Detail July 1, 2026 through June 30, 2027

Total
outstanding
debt or
obligation is
estimated
based on
projections of
tax revenue
growth at 2%
per annum. If
property values
and
corresponding
revenues grow
at a higher or
lower rate than
2% per annum,
the total
obligation will
similarly
increase or
decreased.

DDA pledges a
portion of tax
increment for
so long as the
Agency
receives tax
increment
Project
II and
III
44,985,314 N $2,431,070 - - - 564,128 - $564,128 - - - 1,866,942 - $1,866,942 13 Summerly DDA
Extraordinary
Infrastructure
Fund

OPA/DDA/
Construction
03/11/2011 09/08/2038 Mc Millin
Summerly
LLC
DDA pledges a
portion of
property tax
revenues
through 2038.

Total
outstanding
debt or
obligation is
estimated
based on
projections of
tax revenue
Project
II and
III
9,782,210 N $459,281 - - - 38,567 - $38,567 - - - 420,714 - $420,714

DDA pledges a
portion of tax
increment for
so long as the
Agency
receives tax
increment.
18 City
Reimbursement
LERA
Bond
Reimbursement
Agreements
07/01/
2000
02/01/2032 City of Lake
Elsinore
City
Reimbursement
LERA - Debt
Service
All 7,748,344 N $1,127,362 - - - 563,681 - $563,681 - - - 563,681 - $563,681 22 Legal Services Fees 07/01/
2024
09/01/2039 Leibold
McClendon
& Mann
Legal services
for projects,
bonds & DDA/
Stadium
Agreement
compliance.

All 80,000 N $80,000 - - - 40,000 - $40,000 - - - 40,000 - $40,000 23 Consultant
Fees
Fees 10/23/
2007
09/08/2025 HdL Coren
& Cone
Tax Projections
for bond & DDA
compliance
All 24,800 N $24,800 - - - 12,400 - $12,400 - - - 12,400 - $12,400 28 Estimated
Admin Cost
Admin Costs 02/01/
2012
09/08/2038 City of Lake
Elsinore
City Staff
Support/other
admin
reimbursement
All 399,142 N $399,142 - - - - 199,571 $199,571 - - - - 199,571 $199,571 29 Stadium
License
Agreement
Miscellaneous 03/15/
2001
12/31/2026 Lake
Elsinore
Storm, LP
License to use
stadium for
baseball games
Project
III
- N $- - - - - - $- - - - - - $-
30 Stadium
Maintenance
Agreement
Property
Maintenance
03/15/
2001
12/31/2026 Lake
Elsinore
Storm, LP
Agreement to
maintain
baseball field
and facilities
Project
III
- N $- - - - - - $- - - - - - $-
31 Stadium
Concession
Agreement
Miscellaneous 01/30/
2002
12/31/2026 Golden
State
Concessions
and
Catering
Provision of
concessions for
baseball games
Project
III
- N $- - - - - - $- - - - - - $-

Miscellaneous 01/01/
2013
12/31/2026 Lake
Elsinore
Storm, LP
Stadium
Maintenance
and
Management
Project
III
3,432,948 N $3,432,948 - - - 3,432,948 - $3,432,948 - - - - - $- 39 Bond
Disclosure
Services
Fees 07/01/
2023
06/30/2026 Urban
Futures
Bond
disclosure
compliance
All 265,127 N $12,768 - - - - - $- - - - 12,768 - $12,768 41 Subordinated
Tax Allocation
Refunding
Bonds, Series
2015
Bonds Issued
After 12/31/10
08/25/
2015
09/01/2038 Wilmington
Trust
Bond issue to
refund Tax
Allocation
Revenue
Bonds, 2011
Series A and
Local Agency
Revenue
Bonds, 2011
Series A
All 3,340,853 N $484,456 - 130,000 - 176,078 - $306,078 - - - 178,378 - $178,378 42 Fiscal Agent
Fees
Fees 08/01/
2015
09/01/2038 Wilmington
Trust
Annual fiscal
agent fees for
bonds issues
All 122,000 N $12,500 - - - 6,000 - $6,000 - - - 6,500 - $6,500 45 Arbitrage Fees Fees 07/01/
2024
06/30/2026 Various Arbitrage fees
for bonds
All 49,800 N $19,800 - - - 16,800 - $16,800 - - - 3,000 - $3,000 46 Third Lien Tax
Allocation
Bonds, Series
2018A
Bonds Issued
After 12/31/10
03/05/
2018
03/01/2038 Wilmington
Trust
Bond issue to
refund
Developer
Obligation
II and
III
2,057,269 N $153,182 - - - 76,591 - $76,591 - - - 76,591 - $76,591 47 Third Lien Tax
Allocation
Bonds, Series
2018B
(Federally
Taxable)
Bonds Issued
After 12/31/10
03/05/
2018
03/01/2038 Wilmington
Trust
Bond issue to
refund
Developer
Obligation
II and
III
6,611,425 N $594,232 - - - 297,116 - $297,116 - - - 297,116 - $297,116 48 Subordinated
Tax Allocation
Refunding
Bonds, Series
2019A
Bonds Issued
After 12/31/10
03/05/
2018
03/01/2038 Wilmington
Trust
Bond issue to
refund
Developer
Obligation
II and
III
10,344,500 N $893,500 - 170,000 - 359,750 - $529,750 - - - 363,750 - $363,750 50 Tax Allocation
Refunding
Bonds, Series
2019B
(Housing-SetAside)
Bonds Issued
After 12/31/10
10/04/
2019
09/01/2025 Wilmington
Trust,
National
Association
Bond issue to
refund Tax
Allocation
Revenue
Bonds, 2010
Series B
ALL - Y $- - - - - - $- - - - - - $-
52 Tax Allocation
Refunding
Bonds, Series
Bonds Issued
After 12/31/10
04/01/
2020
09/01/2030 Wilmington
Trust,
National
Bond issue to
refund the Tax
Allocation
Project
I and
Project
13,050,500 N $3,125,300 - 910,000 - 1,107,100 - $2,017,100 - - - 1,108,200 - $1,108,200

A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
26-27 Total
ROPS 26-27A (Jul - Dec)
26-27A
Total
ROPS 26-27B (Jan - Jun)
26-27B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds
RPTTF
Admin
RPTTF
2020A Association Revenue
Bonds, 2010
Series C
II
54 Third Lien Tax
Allocation
Bonds, Series
2020B
Bonds Issued
After 12/31/10
12/23/
2020
03/01/2038 Wilmington
Trust,
National
Association
Bond issue to
refund
Developer
Obligation
Project
II and
Project
III
5,788,200 N $304,800 - - - 152,400 - $152,400 - - - 152,400 - $152,400 55 Third Lien Tax
Allocation
Bonds, Series
2020C
(Federally
Taxable)
Bonds Issued
After 12/31/10
12/23/
2020
03/01/2038 Wilmington
Trust,
National
Association
Bonds issue to
refund
Developer
Obligation
Project
II and
Project
III
2,611,153 N $458,092 - - - 229,046 - $229,046 - - - 229,046 - $229,046 Lake Elsinore
Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 23-24 Cash Balances
(07/01/23 - 06/30/24)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/23)
RPTTF amount should exclude "A" period distribution
amount.
602,500 30,509 1,981,064 Col. G Line 1 - Amount shown reflects ROPS 20-21 Prior Period Adjustment (PPA)
($1,986,721) and ROPS 21-22 PPA
($50,760), Expenditures of $56,417 due from
the City for administrative expense in excess
of approved ROPS
2 Revenue/Income (Actual 06/30/24)
RPTTF amount should tie to the ROPS 23-24 total
distribution from the County Auditor-Controller
- 345,678 17,522,985
3 Expenditures for ROPS 23-24 Enforceable Obligations
(Actual 06/30/24)
602,500 289,533 18,017,584
4 Retention of Available Cash Balance (Actual 06/30/24) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
120,000 1,260,000
5 ROPS 23-24 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 23-24 PPA
form submitted to the CAC
No entry required 35,690
6 Ending Actual Available Cash Balance (06/30/24) $- $- $- $(33,346) $190,775 Col. G Line 6 - Amount shown reflects Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

Non-Admin
and Admin
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) ROPS 21-22 Prior Period Adjustment (PPA) ($50,754) and ROPS 22-23 PPA ($88,452),
Expenditures of $88,232 due from the City
for administrative expense in excess of
approved ROPS
Lake Elsinore
Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027
Item # Notes/Comments
12 13
18 22
23 28
29 The Stadium License Agreement (Line 29), the Stadium Maintenance Agreement (Line 30) and the Stadium Concession Agreement (Line 32) (collectively “Stadium Operations Contract”) set forth the rights and obligations of the former Redevelopment Agency on the one hand and the Storm and its affiliates on the other hand with respect to the use, operation, maintenance, and management of the Diamond Stadium. Upon dissolution of the former Redevelopment Agency, the Successor Agency and the Storm entered into the Interim Stadium Management Agreement and subsequent amendments thereto (Line 33) which incorporate the Stadium Operations Agreements by reference. Under the Interim Stadium Management Agreement (Line 33) the License Fee for the period covered by ROPS 26-27 “A” (July 1, 2026 – December 31, 2026) is waived as part of the compensation to the Storm for its performance of the operation, maintenance and management of the Diamond Stadium. 30 The Stadium License Agreement (Line 29), the Stadium Maintenance Agreement (Line 30) and the Stadium Concession Agreement (Line 32) (collectively “Stadium Operations Contract”) set forth the rights and obligations of the former Redevelopment Agency on the one hand and the Storm and its affiliates on the other hand with respect to the use, operation, maintenance, and management of the Diamond Stadium. Upon dissolution of the former Redevelopment Agency, the Successor Agency and the Storm entered into the Interim Stadium Management Agreement and subsequent amendments thereto (Line 33) which incorporate the Stadium Operations Agreements by reference. Under the Interim Stadium Management Agreement (Line 33) the Maintenance Fee for the period covered by ROPS 26-27 “A” (July 1, 2026 – December 31, 2026) is included as part of the compensation to the Storm for its performance of the operation, maintenance and management of the Diamond Stadium. 31 The Stadium License Agreement (Line 29), the Stadium Maintenance Agreement (Line 30) and the Stadium Concession Agreement (Line 32) (collectively “Stadium Operations Contract”) set forth the rights and obligations of the former Redevelopment Agency on the one hand and the Storm and its affiliates on the other hand with respect to the use, operation, maintenance, and management of the Diamond Stadium. Upon dissolution of the former Redevelopment Agency, the Successor Agency and the Storm entered into the Interim Stadium Management Agreement and subsequent amendments thereto (Line 33) which incorporate the Stadium Operations Agreements by reference. Under the Interim Stadium Management Agreement (Line 33) the Concession Fee covered by ROPS 26-27 “A” (July 1, 2026 – December 31, 2026) is credited and assigned to the Storm as part of the compensation to the Storm for its performance of the operation, maintenance and management of the Diamond Stadium.
32 The Diamond Stadium site was donated to the Former Redevelopment Agency in 1993 subject to a 50-year covenant obligating the Agency to own and operate the Diamond Stadium as a minor league baseball stadium. The operation, maintenance and management obligations for the period covered by ROPS 26-27 “A” (July 1, 2026 – December 31, 2026) are incorporated into the Interim Stadium Management Agreement (Line 33). Upon expiration of the Interim Stadium Management Agreement Lake Elsinore
Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027
Item # Notes/Comments
and underlying Stadium Operations Contracts, the operation, management and maintenance obligations must be performed by the Successor Agency through 2043. For the for the period covered by ROPS 26-27 “B” (January 1, 2027 – June 30, 2027) the Successor Agency has entered into a Stadium Operation and Maintenance Agreement with the City to perform these services. 33 The Interim Stadium Management Agreement incorporates all of the obligations under the Stadium Operations Contract (Lines 29-31) and the operation and maintenance obligations under Line 32. The obligations under the Interim Stadium Management Agreement include compensation to the Storm for the performance of the management, maintenance and operation services of the Diamond Stadium and necessary Capital Repairs for the period covered by ROPS 26-27 “A” (July 1, 2026 – December 31, 2026). The Extension to the Eleventh Amendment to the Interim Stadium Management Agreement extends the Interim Agreement 3 months to coincide with the expiration of the Stadium Operations Contracts on December 31, 2026.
39 41
42 45
46 47
48 50
52 54
55 DESCRIPTION AMOUNT

City Staff Support Costs $ 274,142.00
Operating Costs:

Professional/ Outside Services 85,000.00
Auditors 25,000.00
Other 15,000.00
Total Operating Costs 125,000.00
Total Administrative Budget $ 399,142.00

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE

ADMINISTRATIVE BUDGET

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REPORT TO SUCCESSOR AGENCY
To: Honorable Chair and Members of the Successor Agency From: Jason Simpson, Executive Director
Prepared by: Barbara Leibold, Agency Counsel
Date: January 13, 2026
Subject: Extension to Eleventh Amendment to Stadium Interim Management Agreement with the Lake Elsinore Storm, LP and Approval of a Stadium Operation and Maintenance Agreement with the City of Lake Elsinore Recommendation

1. Find that the Extension to Eleventh Amendment to Stadium Interim Management Agreement and the Stadium Operation and Maintenance Agreement are exempt from California Environmental Quality Act (CEQA) pursuant to Section 15301 of the State CEQA Guidelines; and

2. Adopt A Resolution of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore Approving an Extension to Eleventh Amendment to Stadium Interim Management Agreement Between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm, LP and a Stadium Operation and Maintenance Agreement Between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the City of Lake Elsinore.

Background
In 1994, the former Redevelopment Agency of the City of Lake Elsinore (the “Former RDA”), completed the Lake Elsinore Diamond Stadium (“Diamond Stadium”) on property donated for purposes of developing a minor league professional baseball stadium. The Diamond Stadium was intended to stimulate economic development and redevelopment within the Rancho Laguna Redevelopment Project Area 3 consistent with and in furtherance of the Redevelopment Plan. As required by that certain First Amendment to Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance Subject To Covenants, Conditions, Restrictions and Reservations dated August 5, 1993 (“Offer To Donate”), the Former RDA operated, managed and maintained the Diamond Stadium pursuant to various agreements. (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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In 2001 and 2002, the Former RDA entered into certain agreements involving the operation and maintenance of the Diamond Stadium, including a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement (collectively, the “Stadium Operations Contracts”). Pursuant to the Stadium Operations Contracts, the Storm licensed and maintained the Stadium for baseball games and other Storm events. An affiliate of the Storm, Golden State Concessions and Catering, Inc. (“Golden State”), operated the concessions at the Stadium. Under the Stadium Operations Contracts, the Former RDA’s management, operation and maintenance costs were significant and the Stadium operated at a loss requiring a significant allocation of the Former RDA’s tax increment annually.

In an effort to mitigate the financial strain on the Former RDA and seek a more cost-effective means of Stadium operations, the Former RDA published a “Request For Proposals for the Operation, Lease or Purchase of Lake Elsinore Diamond Stadium” (“RFP”) in May 2005. The RFP was widely distributed, including publication in institutional baseball publications such as International Association of Assembly Managers, Stadia, and Streets & Smiths Sports Business Journal.

In 2005, the Former RDA commenced negotiations with respondent Diamond Stadium Group (DSG) to undertake all of the Stadium operations, maintenance and management responsibilities.

Storm LP, Golden State and DSG share common controlling ownership. Negotiations between the Former RDA and DSG resulted in June 2007 amendments to the Stadium Operations Contracts and a new Stadium License, Lease and Management Agreement (the “2007 Management Agreement”).

The amendments to the Stadium Operations Contracts extended the term of each of the Agreements through December 31, 2026. The Amendments provided that so long as the 2007 Management Agreement was in effect, the Stadium Operations Contracts were suspended, but that if the 2007 Management Agreement was terminated, then the Former RDA and the Storm would again be responsible for performance under the Stadium Operations Contracts.

DSG fulfilled all aspects of the 2007 Management Agreement which reduced the Former RDA’s Stadium-related costs. However, in June 2011 DSG elected to exercise its right to terminate the 2007 Management Agreement effective December 31, 2012 citing annual losses under the 2007 Management Agreement. Upon termination of the 2007 Management Agreement, the rights and responsibilities for Stadium management, operations and maintenance were again divided in accordance with the Stadium Operations Contracts; however, at that time, the Former RDA had been dissolved and the Successor Agency did not have the resources to satisfactorily perform its obligations.

On December 11, 2012, the Successor Agency approved the Stadium Interim Management Agreement (“Interim Agreement”) to provide for the efficient and cost effective management, maintenance and operation of the Stadium by the Storm through 2013. A First Amendment to the Interim Agreement was approved in September 2013. A Second Amendment was approved in September 2014, a Third Amendment was approved in September 2015, a Fourth Amendment was approved in September 2016, a Restated Fifth Amendment and Extension (collectively, “Fifth Amendment”) was approved in May and June 2018, a Sixth Amendment was approved January 8, 2019, a Seventh Amendment and Amended and Restated Seventh Amendment (collectively, (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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“Seventh Amendment”) were approved January 14, 2020 and January 12, 2021 respectively, an Eighth Amendment and Amendment No. 1 to Eighth Amendment (collectively, “Eighth Amendment”) were approved January 11, 2022 and September 13, 2022, respectively, a Ninth Amendment was approved January 10, 2023; a Tenth Amendment was approved January 18, 2024; and an Eleventh Amendment was approved January 14, 2025.

Since the dissolution of the Former RDA, the State Department of Finance has approved the allocation of Real Property Tax Trust Funds for Stadium obligations in accordance with the Successor Agency Recognized Obligations Payment Schedules (ROPS). The Interim Agreement and the First through Eleventh Amendments have been successfully implemented to provide for efficient and cost effective management, maintenance and operation of the Diamond Stadium.

Discussion
Extension to Eleventh Amendment to Stadium Interim Management Agreement The Eleventh Amendment will expire on September 30, 2026, three months prior to the December 31, 2026 expiration of the Stadium Operations Contracts. In order to avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to extend the term of the Eleventh Amendment to December 31, 2026. The Extension will provide for continued efficient and cost effective management, maintenance and operation of the Diamond Stadium by the Storm consistent with the term of the Stadium Operations Contracts. The terms and conditions of the Eleventh Amendment remain status quo under the proposed Extension. A Capital Repair Schedule in the total amount of nine hundred thousand dollars ($900,000) is included.

The Extension to the Eleventh Amendment is reasonable and necessary to satisfy the Successor Agency’s contractual obligations under the Stadium Operations Contracts and to protect and maintain the assets of the Former RDA. The proposed Extension to the Eleventh Amendment is in the best interests of the taxing entities because the Storm’s experience will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium through the term of the Stadium Operations Contracts which will protect the public’s investment in the Stadium, minimize costs and mitigate against potential breach of contract and related damages.

Stadium Operation and Maintenance Agreement
The Stadium Operations Contracts and the proposed Extension to the Eleventh Amendment to the Interim Agreement will expire December 31, 2026, but the covenants, conditions, restrictions and reservations set forth in the Offer to Donate remain enforceable obligations within the meaning of Health and Safety Code (“HSC”) Section 34171(d)(1)(E).

In order to comply with its obligations under to the Offer to Donate and avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to retain the City to perform the operational and maintenance services to ensure that the Diamond Stadium is maintained and promoted as a premier first class minor league baseball stadium and entertainment venue consistent with its obligations under the Offer to Donate. Engagement of the (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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City is necessary and consistent with the legislative authorization contained in HSC Section 34171(d)(1)(F) allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the Former RDA. Absent the Stadium Operation and Maintenance Agreement, the burden of maintaining, managing and operating Diamond Stadium will fall onto the Successor Agency which lacks the personnel to fulfil these obligations.

Pursuant to the proposed Stadium Operation and Maintenance Agreement, the City will provide maintenance, management, operations, and marketing and promotion services and be responsible for all costs, including utility costs, incurred in the provision of such services. The Successor Agency will pay the City the sum of One Million Two Hundred Nineteen Thousand Five Hundred Fifteen Dollars ($1,219,515) as consideration for the services provided by City during the 2027 calendar year which amount shall be payable in equal monthly installments of One Hundred One Thousand Six Hundred Twenty-Six Dollars and Twenty-Five Cents ($101,626.25).

This amount is equal to the consideration paid to the Storm under the Eleventh Amendment without factoring in the waiver of the Storm’s license fee under the License Agreement and assignment of the concession revenues under the Concession Agreement.

Prior to the Effective Date of the Stadium Operation and Maintenance Agreement and subject to Riverside Countywide Oversight Board and Department of Finance approvals, the Successor Agency intends to enter into a new License Agreement and Concession Agreement which will further define the allocation of revenues and responsibilities.

Under the terms of the Stadium Operation and Maintenance Agreement, the Successor Agency will remain responsible for capital repairs. Prior to the Effective Date of the Stadium Operation and Maintenance Agreement, the Successor Agency will engage a third party inspector to conduct a capital facilities audit to ensure funds are budgeted for necessary capital repairs. For purposes of the Stadium Operation and Maintenance Agreement, an initial Capital Repair budget in the amount of six hundred thousand dollars ($600,000) has been requested in the ROPS 26-27 for the period commencing January 1, 2027. In the event the cost of necessary capital repairs exceed available funds, the City will advance funds subject to repayment by the Successor Agency from future Real Property Tax Trust Funds.

The Stadium Operation and Maintenance Agreement is reasonable and necessary to satisfy the Successor Agency’s enforceable obligations under the Offer to Donate and to protect and maintain the assets of the Former RDA. Subject to the terms and conditions of future Stadiumrelated agreements, the City possesses the capabilities and qualifications to best carry out these obligations. The proposed Stadium Operation and Maintenance Agreement is in the best interests of the taxing entities because the City’s knowledge and resources will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium following expiration of the Stadium Operations Contracts which will protect the public’s investment in the Stadium, minimize costs and mitigate against potential breach of contract and related damages.

The Extension to the Eleventh Amendment to the Interim Agreement and approval of the Stadium Operation and Maintenance Agreement are subject to the approval of the Riverside Countywide Oversight Board and the California Department of Finance. (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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CEQA Exemption
Pursuant to the California Environmental Quality Act (CEQA), based upon a review of the evidence and information presented on the matter as it relates to the approval of the Extension to the Eleventh Amendment to the Interim Agreement and the Stadium Operation and Maintenance Agreement, are categorically exempt from CEQA pursuant to Section 15301 of the State CEQA Guidelines because it consists of the operation, repair, and maintenance of existing facilities and will not lead to any direct or reasonably foreseeable indirect environmental impacts.

Fiscal Impact
The Successor Agency ROPS 26-27 includes Real Property Tax Trust Funds to cover the Successor Agency obligations under the proposed Extension to the Eleventh Amendment to the Interim Agreement and the Stadium Operation and Maintenance Agreement for the period of July 1, 2026 through June 30, 2027.

Attachments
Attachment 1 - Resolution
Attachment 2 - Extension to Eleventh Amendment
Attachment 3 - Stadium Operation and Management Agreement RESOLUTION NO. SA 2026-

A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING AN

EXTENSION TO THE ELEVENTH AMENDMENT TO THE STADIUM INTERIM

MANAGEMENT AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND

THE LAKE ELSINORE STORM, LP, AND A STADIUM OPERATION AND

MAINTENANCE AGREEMENT BETWEEN THE SUCCESSOR AGENCY AND

THE CITY OF LAKE ELSINORE
Whereas, in furtherance of the Redevelopment Plan for the Rancho Laguna Redevelopment Project Area 3 (“Redevelopment Plan”) and that certain First Amendment to Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance Subject To Covenants, Conditions, Restrictions and Reservations (“Offer to Donate”) dated August 5, 1993, the former Redevelopment Agency of the City of Lake Elsinore (the “RDA”) acquired certain real property for redevelopment purposes and thereafter, in 1994, completed the Lake Elsinore Diamond Stadium (“Diamond Stadium”) on property donated for purposes of developing a minor league professional baseball stadium; and Whereas, in furtherance of the Redevelopment Plan and the covenants, conditions, restrictions and reservations set forth in the Offer to Donate restricting the use of the property as a minor league professional baseball stadium for a minimum of fifty (50) years, the RDA operated, managed and maintained the Diamond Stadium pursuant to various agreements, including a Concession License Agreement, a License Agreement, and a Stadium Field and Maintenance Agreement (collectively, “Stadium Operations Contracts”); and Whereas, following the dissolution of the RDA, the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”) and the Oversight Board to the Successor Agency (“Lake Elsinore Oversight Board”) approved the Stadium Interim Management Agreement dated January 1, 2013 by and between the Successor Agency and the Lake Elsinore Storm LP (the “Interim Agreement”) to provide for the performance of the enforceable obligations under the Stadium Operation Contracts and the Offer to Donate, including maintenance, management, promotion and operations of the Diamond Stadium and following such approval by the Lake Elsinore Oversight Board and the Successor Agency, the Interim Agreement was submitted to and approved by the State Department of Finance (“DOF”); and
Whereas, in 2013, the Successor Agency and the Lake Elsinore Oversight Board approved the First Amendment to Stadium Interim Management Agreement dated January 1, 2014 by and between the Successor Agency and the Lake Elsinore Storm LP (the “First Amendment”) and following such approval by the Lake Elsinore Oversight Board and the Successor Agency, the First Amendment was submitted to and approved by the DOF; and Whereas, in 2014, the Successor Agency and the Lake Elsinore Oversight Board approved the Second Amendment to Stadium Interim Management Agreement dated January 1, 2015 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Second Amendment”) and following such approval by the Lake Elsinore Oversight Board and the Successor Agency, the Second Amendment was submitted to and approved by the DOF; and Reso No. SA 2026-

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Whereas, in 2015, the Successor Agency and the Lake Elsinore Oversight Board approved the Third Amendment to Stadium Interim Management Agreement dated January 1, 2016 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Third Amendment”) and following such approval by the Lake Elsinore Oversight Board and the Successor Agency, the Third Amendment was submitted to and approved by the DOF; and
Whereas, in 2016, the Successor Agency and the Lake Elsinore Oversight Board approved the Fourth Amendment to Stadium Interim Management Agreement dated January 1, 2017 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Fourth Amendment”) and following such approval by the Lake Elsinore Oversight Board and the Successor Agency, the Fourth Amendment was submitted to and approved by the DOF; and
Whereas, in 2018, the Successor Agency and the Lake Elsinore Oversight Board approved the Restated Fifth Amendment to Stadium Interim Management Agreement dated May 8, 2018 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP and the Extension to Restated Fifth Amendment dated June 26, 2018 (collectively, the “Fifth Amendment”) and following such approvals by the Lake Elsinore Oversight Board and the Successor Agency, the Fifth Amendment was submitted to and approved by the DOF; and Whereas, in 2019, the Successor Agency and the Riverside County Oversight Board approved the Sixth Amendment to Stadium Interim Management Agreement dated January 8, 2019 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Sixth Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Sixth Amendment was submitted to and approved by the DOF; and
Whereas, in 2020 and 2021, the Successor Agency and the Riverside County Oversight Board approved the Seventh Amendment to Stadium Interim Management Agreement dated January 14, 2020 and the Amended and Restated Seventh Amendment dated January 12, 2021 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (collectively, the “Seventh Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Amendments were submitted to and approved by the DOF; and Whereas, in 2022, the Successor Agency and the Riverside County Oversight Board approved the Eighth Amendment to Stadium Interim Management Agreement dated January 11, 2022 and the First Amendment to the Eighth Amendment to Stadium Interim Management Agreement dated September 13, 2022 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (collectively, the “Eighth Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Amendments were submitted to and approved by the DOF; and
Whereas, in 2023, the Successor Agency and the Riverside County Oversight Board approved the Ninth Amendment to Stadium Interim Management Agreement dated January 10, 2023 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Ninth Amendment”) and following such approval Reso No. SA 2026-

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by the Riverside County Oversight Board and the Successor Agency, the Ninth Amendment was submitted to and approved by the DOF; and
Whereas, in 2024, the Successor Agency and the Riverside County Oversight Board approved the Tenth Amendment to Stadium Interim Management Agreement dated January 18, 2024 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Tenth Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Tenth Amendment was submitted to and approved by the DOF; and
Whereas, in 2025, the Successor Agency and the Riverside County Oversight Board approved the Eleventh Amendment to Stadium Interim Management Agreement dated January 14, 2025 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP (the “Eleventh Amendment”) and following such approval by the Riverside County Oversight Board and the Successor Agency, the Eleventh Amendment was submitted to and approved by the DOF; and Whereas, the Interim Agreement and the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Amendments have been successfully implemented to provide for efficient and cost effective management, maintenance and operation of the Diamond Stadium in furtherance of the Successor Agency’s obligations under the Offer to Donate and the Stadium Operations Contracts; and
Whereas, the Eleventh Amendment will expire on September 30, 2026, three months prior to the December 31, 2026 expiration of the Stadium Operations Contracts and in order to avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to extend the term of the Eleventh Amendment to December 31, 2026; and Whereas, the Stadium Operations Contracts and the proposed Extension to the Eleventh Amendment to the Interim Agreement will expire December 31, 2026, but the covenants, conditions, restrictions and reservations set forth in the Offer to Donate remain enforceable obligations within the meaning of Health and Safety Code (“HSC”) Section 34171(d)(1)(E) and in order to comply with its obligations under to the Offer to Donate and avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to retain the City to perform the operational and maintenance services pursuant to a Stadium Operation and Maintenance Agreement; and
Whereas, consistent with the legislative authorization contained in AB 1484 and SB 107 allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the former redevelopment agency and implementing enforceable obligations pursuant to underlying contracts and agreements, the Successor Agency seeks to provide for the continued, efficient and cost effective management, maintenance and operation of the Stadium and to retain the Storm to carry out such continuing obligations through the December 31, 2026 expiration of the Stadium Operations Contracts in accordance with the proposed Extension to the Eleventh Amendment to Stadium Interim Management Agreement (“Extension”); and
Whereas, consistent with the legislative authorization contained in AB 1484 and SB 107 allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the former redevelopment agency and implementing enforceable obligations pursuant to underlying contracts and agreements, the Successor Agency seeks to provide for Reso No. SA 2026-

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the continued, efficient and cost effective management, maintenance and operation of the Stadium and to retain the City of Lake Elsinore to carry out such continuing obligations following the December 31, 2026 expiration of the Stadium Operations Contracts in accordance with the proposed Stadium Operation and Maintenance Agreement; and Whereas, pursuant to Health and Safety Code Section 34177(o)(1) a “Recognized Obligation Payment Schedule” that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34167 for the period commencing July 1, 2026 – June 30, 2027 (the “ROPS 26-27”) which lists, among other things, as enforceable obligations of the Successor Agency, the following obligations related to the Lake Elsinore Diamond Stadium (the “Stadium”): (i) License Agreement; (ii) Maintenance Agreement; (iii) Concession Agreement; (iv) Stadium operations and maintenance obligations, and (v) the Interim Agreement (as amended) has been approved by the Successor Agency and will prepared for approval by the Oversight Board throughout the term of the Stadium Operations Contracts and the continuing obligations under the Offer to Donate; and Whereas, the accompanying staff report and attachments incorporated herein by this reference provide the supporting information upon which the actions set forth in this Resolution are based.

NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT

AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Recitals set forth above are true and correct and incorporated herein by reference.

Section 2. Based on the information presented in the staff report and testimony received, the Successor Agency finds (i) that the proposed Extension to the Eleventh Amendment to the Stadium Interim Management Agreement and the Stadium Operation and Maintenance Agreement are reasonable and necessary to satisfy the Successor Agency’s enforceable obligations under the Stadium Operations Contracts and Offer to Donate and to protect and maintain the assets of the former Redevelopment Agency and conform to state law and regulations, (ii) that Real Property Tax Trust Fund (RPTTF) revenues requested by the Successor Agency in the ROPS 26-27 includes funds necessary to meet the Successor Agency’s enforceable obligations, and (iii) that the Extension to the Eleventh Amendment to the Stadium Interim Management Agreement and the Stadium Operation and Maintenance Agreement are in the best interests of the taxing entities because the Storm and the City will provide continued, efficient and cost effective management, maintenance and operation of the Diamond Stadium which will protect the public’s investment in the Stadium, minimize costs and mitigate against potential breach of contract and related damages.

Section 3. Based on the above findings, the Successor Agency approves (i) the Extension to the Eleventh Amendment to the Stadium Interim Management Agreement by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the Lake Elsinore Storm LP and (2) the Stadium Operation and Maintenance Agreement by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the City of Lake Elsinore in substantially the forms attached and authorizes and directs the Executive Director to execute the Extension to the Eleventh Amendment and the Stadium Operation and Maintenance Agreement in such final form as approved by Successor Agency Counsel and submitted to and approved by the Riverside Countywide Oversight Board. The Reso No. SA 2026-

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Executive Director is further authorized to execute such other documents as necessary to implement the Extension to the Eleventh Amendment and the Stadium Operation and Maintenance Agreement as approved as approved by Successor Agency Counsel and submitted to and approved by the Riverside Countywide Oversight Board.

Section 4. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end, the provisions of this Resolution are severable. The Successor Agency hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof.

Section 5. This Resolution shall take effect from and after the date of its passage and adoption in accordance with, and subject to, all applicable requirements of the Health & Safety Code.

Passed and Adopted at a regular meeting of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, this 13th day of January 2026.

Robert E. Magee
Chair
Attest:

Candice Alvarez, MMC
Secretary

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
Secretary
1 EXTENSION TO ELEVENTH AMENDMENT

TO STADIUM INTERIM MANAGEMENT AGREEMENT
This Extension to Eleventh Amendment to Stadium Interim Management Agreement (“Extension”) is made and entered into as of January 13, 2026 by and between the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (“Successor Agency”), and the Lake Elsinore Storm LP, a California limited partnership (“Storm”).

RECITALS
A. The Successor Agency and the Storm entered into that certain Eleventh Amendment to Stadium Interim Management Agreement dated as of January 14, 2025 (the “Eleventh Amendment”). Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Eleventh Amendment.

B. The Interim Management Agreement dated January 1, 2013 and each of the amendments thereto, including the Eleventh Amendment, were entered into to provide for the performance of the obligations of the former Redevelopment Agency of the City of Lake Elsinore (“Former Agency”) under certain agreements involving the operation and maintenance of the Lake Elsinore Diamond Stadium, including a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement (collectively, the “Stadium Operations Contracts”) and the First Amendment to Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance Subject To Covenants, Conditions, Restrictions and Reservations (“Offer to Donate”) dated August 5, 1993 requiring the Lake Elsinore Diamond Stadium property be used as a minor league professional baseball stadium for a minimum of fifty (50) years.

C. The Stadium Operations Contracts between the Former Agency and the Storm and its affiliates expire December 31, 2026.

D. The Eleventh Amendment will expire on September 30, 2026, three months prior to the expiration of the Stadium Operations Contracts, which would result significant uncertainty, disruption and potential financial liabilities.

C. The Successor Agency and Storm desire to extend the term of the Eleventh Amendment to December 31, 2026 in order to provide for continued efficient and cost effective management, maintenance and operation of the Lake Elsinore Diamond Stadium through the expiration of the Stadium Operations Contracts.

NOW, THEREFORE, incorporating the foregoing recitals herein, and in consideration of the mutual covenants and conditions set forth herein and in the Eleventh Amendment, Successor Agency and the Storm agree as follows:

1. Sections 6.1 and 6.2 (a) of the Interim Agreement, as amended by Section 5 of the Eleventh Amendment is hereby deleted in its entirety and replaced with the following:
2 “6.1 Term. The term of this Interim Agreement (hereinafter the “Term”) shall commence on the Effective Date and shall, unless earlier terminated in accordance with Sections 6.2, 19, or 20 hereof, shall expire December 31, 2026.

6.2 Rights of Termination
(a) September 30, 2026 Termination. Successor Agency may terminate this Interim Agreement effective as of September 30, 2026, by giving written notice thereof to the Storm no later than June 30, 2026.”

2. All references to “September 30, 2026” in the Eleventh Amendment shall be replaced with “December 31, 2026”.

3. Exhibit “C” Capital Repair Schedule is amended to add necessary Capital Repairs for the extended Term as set forth in Exhibit C-1 attached hereto and incorporated by reference herein.

4. Except for the changes specifically set forth herein, all other terms and conditions of the Eleventh Amendment shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Extension to Eleventh Amendment to Stadium Interim Management Agreement on the respective dates set forth below. “SUCCESSOR AGENCY”

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY OF THE

CITY OF LAKE ELSINORE
Dated: By:

Jason Simpson, Executive Director
ATTEST:

SUCCESSOR AGENCY SECRETARY
By:

Candice Alvarez, MMC
APPROVED AS TO FORM:

LEIBOLD McCLENDON & MANN, P.C.

Successor Agency Counsel
By:

Barbara Leibold
3 “STORM”
LAKE ELSINORE STORM LP, a
California limited partnership
By: GJJ STORM MANAGEMENT,
LLC, a California limited liability
company
Its: General Partner
Dated: By:

Gary E. Jacobs, Manager
4 EXHIBIT “C-1”

ADDITIONAL CAPITAL REPAIRS FOR EXTENDED TERM
OCTOBER 1, 2026 – DECEMBER 31, 2026

DESCRIPTION ESTIMATED COST
Sewer and Plumbing on Third Base Side/Visiting Team
Locker Room
$ 500,000
Seal off open attic shortfall $ 150,000
Emergency Capital Repairs/MILB Requirements
Field Lighting Update
$ 200,000
$ 50,000
TOTAL $2,910,150 $ 900,000

STADIUM OPERATION AND MAINTENANCE

AGREEMENT

BY AND BETWEEN THE

SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE

CITY OF LAKE ELSINORE

AND THE

CITY OF LAKE ELSINORE
January 1, 2027
1 STADIUM OPERATION AND MAINTENANCE AGREEMENT
THIS STADIUM OPERATION AND MAINTENANCE AGREEMENT (this
“Agreement”), dated as of January 1, 2026 (the “Effective Date”), is made by and between the

SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE (“Successor Agency”), and the CITY OF LAKE ELSINORE, a California municipal corporation (“City”). Successor Agency and City are sometimes referred to individually as a “Party” and collectively as the “Parties.”

RECITALS
The following recitals are a substantive part of this Agreement:

A. The City Council of the City of Lake Elsinore adopted a redevelopment plan (the “Redevelopment Plan”) for an area within the City known as the Rancho Laguna Redevelopment Project Area 3 (the “Project Area”) by way of its approval of Ordinance No. 815 on September 8, 1987, as thereafter amended by Ordinance No. 987 adopted on November 22, 1994.

B. In furtherance of the Redevelopment Plan and that certain First Amendment to Amended and Restated Option Agreement Under Threat of Condemnation and Irrevocable Offer To Donate Stadium Site and Stadium Access Parcel and Unconditional Acceptance Subject To Covenants, Conditions, Restrictions and Reservations (“Offer to Donate”) dated August 5, 1993, the former Redevelopment Agency of the City of Lake Elsinore (“Former Redevelopment Agency”) acquired certain real property for redevelopment purposes and thereafter, in 1994, completed the Lake Elsinore Diamond Stadium on property donated for purposes of developing a minor league professional baseball stadium.

C. In furtherance of the Redevelopment Plan and the covenants, conditions, restrictions and reservations set forth in the Offer to Donate restricting the use of the property as a minor league professional baseball stadium for a minimum of fifty (50) years, the Former Redevelopment Agency operated, managed and maintained the Lake Elsinore Diamond Stadium and related facilities on the donated property (collectively, the Premises”) pursuant to various agreements with the Storm LP and its affiliates, including a License Agreement, a Stadium Field and Maintenance Agreement, and a Concession License Agreement (collectively, the “Stadium Operations Contracts”).

D. Following the dissolution of the Former Redevelopment Agency, the Successor Agency entered into that certain Stadium Interim Management Agreement dated January 1, 2013 (the “Interim Agreement”) and amendments thereto to provide for the performance of the enforceable obligations under the Offer to Donate and the Stadium Operation Contracts, including maintenance, management, promotion and operations of the Premises.

E. The Stadium Operations Contracts and the Eleventh Amendment to the Interim Agreement, as extended, expire December 31, 2026, but the covenants, conditions, restrictions and reservations set forth in the Offer to Donate remain enforceable obligations within the meaning of Health and Safety Code (“HSC”) Section 34171(d)(1)(E). 2 F. In order to comply with its obligations under to the Offer to Donate and avoid uncertainty, disruption and potential financial liabilities, the Successor Agency desires to retain the City to perform the operational and maintenance services to ensure that the Diamond Stadium is maintained in accordance with applicable laws and regulations, including compliance with Health & Safety Code, Fire Code, Building Code, ADA, mandatory recycling standards, Minor League Baseball (MiLB) requirements for minor league facilities, audit standards, and emergency repairs and that the diamond Stadium is promoted as a premier first class minor league baseball stadium and entertainment venue. Engagement of the City is necessary and consistent with the legislative authorization contained in HSC Section 34171(d)(1)(F) allowing successor agencies to enter into enforceable obligations for the purpose of maintaining the assets of the Former Redevelopment Agency.

G. Prior to the Effective Date of this Agreement and subject to Riverside Countywide Oversight Board and Department of Finance approvals, the Successor Agency intends to enter into a new License Agreement and Concession Agreement which will further define the allocation of revenues and responsibilities and ensure the operation of the Premises as minor league professional baseball stadium for calendar year 2027 and thereafter. The Successor Agency will also engage a third party inspector to conduct a capital facilities audit. The Successor Agency and City will cooperate to amend this Agreement as necessary to accommodate the terms and conditions of these future agreements and ensure that funds are budgeted for capital needs identified in the facilities audit.

H. The Stadium Operations Contracts, the Stadium Interim Management Agreement and Stadium operations and maintenance have been approved and recognized by the Oversight Board and the Department of Finance as enforceable obligations on the Successor Agency’s Recognized Obligations Payment Schedule since dissolution of the Former Redevelopment Agency. On January 13, 2027 the Successor Agency adopted ROPS 26-27 which listed, among other things, as enforceable obligation of the Successor Agency, the following obligations related to the Premises as more fully described and referenced therein:

Line 32 Stadium operations and maintenance obligations.

Line 33 Stadium Interim Management Agreement which incorporates the obligations under the Stadium Operations Contracts (Lines 29, 30, and 31).

AGREEMENT
NOW THEREFORE, in consideration of the foregoing Recitals and the terms contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:

1. City Responsibilities.

1.1. Maintenance. Commencing January 1, 2027 and subject to the Successor Agency’s obligations herein with respect to Capital Repairs, City shall perform all interior and exterior maintenance services and take all additional necessary actions to maintain the Premises, and all components thereof, of whatever kind or nature, as may be necessary to keep the Premises in a first class condition and a good state of appearance and repair in accordance with 3 applicable laws and regulations, including compliance with Health & Safety Code, Fire Code, Building Code, ADA, mandatory recycling standards, and Minor League Baseball (MiLB) requirements for minor league facilities. City shall provide all supplies necessary for the City to perform its obligations hereunder. In addition, City shall responsible for providing the maintenance and repair of all equipment. The replacement of equipment shall be treated as a Capital Repair as defined in Section 2.2.

1.2. Utilities. Commencing January 1, 2027, City shall be responsible for the payment of all utilities regardless of whether the utility account is in the name of the Successor Agency or the City. The City agrees to explore ways to incorporate the use of or replace existing systems with alternative clean energy and to improve energy efficiency, including electrical utility savings by way of power purchase agreements through the Southwest Riverside County Energy Authority.

1.3. Management and Operations. Commencing January 1, 2027, City shall manage the operations of the Premises, including the coordination and implementation of all license agreements, concessions agreements, and vendor and professional services agreements.

City shall obtain or ensure that all necessary licenses, permits, insurance policies, and/or other approval applications or renewals are obtained in connection with the provision of the services hereunder and in connection with all activities occurring on the Premises. City shall solicit and evaluate proposals aimed to increase the use and efficiency of the Premises, improve general maintenance standards and efficiencies for all areas of the Premises, attract new users and visitors to the Premises and monitor or prepare other relevant data or information relating to the performance hereunder.

1.4. Marketing and Promotion. Commencing January 1, 2027, City will undertake all marketing and promotional services, including special events, advertising and cross-marketing efforts to promote the Premises as a premier baseball and entertainment venue and shall exercise best efforts to maximize the use of the Premises year round to generate revenues to offset the high cost of maintenance, management and operations. City shall comply or ensure compliance by third party promoters and sponsors with all Special Event Permit requirements and procedures in accordance with applicable provisions of Chapter 5.108 of the Lake Elsinore Municipal Code, as now exists or as may hereafter be amended.

1.5. Master Calendar. Commencing January 1, 2027, City shall be responsible for scheduling all events at the Premises and shall maintain a Master Calendar to avoid conflicting events and compatibility of multiple events on the same day. The Minor League Baseball schedule shall be first priority of the Master Calendar and City will maintain open communications and will consult with the Minor League Baseball Team prior to scheduling any events during the baseball season so that the Parties can consider the scope of the event, the use of the Premises and any potential impacts on baseball operations.

1.6. Review Meetings. As often as necessary, but in no event less than one time every month during the term of any License and/or Concession Agreements and any Vendor Services and/or Professional Services Agreement, the City’s designated representative shall meet with the licensee, concessionaire, vendor or professional at a mutually agreed upon time and 4 place in order to discuss the performance of the services thereunder, the condition of the Stadium and any other applicable issues.

1.7. City Performance. City shall perform all services pursuant to this Agreement with its own forces and/or pursuant to vendor and professional services agreements as determined by the City to ensure the most efficient, cost-effective and satisfactory performance required to protect, promote and maintain the Premises as a first class minor league baseball stadium and entertainment venue.

1.8. City Advance for Capital Repairs. Subject to the provisions of Section

2.2, in the event the Successor Agency does not have adequate funds to pay for necessary Capital Repairs during the Term of this Agreement, City shall advance funds to complete such Capital Repairs. Each such amount shall be deemed to have been loaned by City to Successor Agency (“Capital Repair Loan”).

2. Successor Agency Responsibilities.

2.1. Compensation for City Services. Successor Agency agrees to pay City the sum of One Million Two Hundred Nineteen Thousand Five Hundred Fifteen Dollars ($1,219,515) as consideration for the services provided by City hereunder during the Term which amount shall be payable in equal monthly installments of One Hundred One Thousand Six Hundred Twenty-Six Dollars and Twenty-Five Cents ($101,626.25). The Parties acknowledge that this amount is equal to the consideration paid to the Storm under the Eleventh Amendment to the Interim Agreement without factoring in the waiver of the Storm’s license fee under the License Agreement and assignment of the concession revenues under the Concession Agreement. The Parties further acknowledge that Successor Agency intends to enter into a new License Agreement and Concession Agreement prior to the Effective Date and that the allocation of revenues and responsibilities will be determined pursuant to those new agreements and subject to Riverside Countywide Oversight Board and Department of Finance approvals.

2.2. Capital Repairs. Successor Agency shall be responsible for all Capital Repairs. “Capital Repairs” means all activities, and the provision of all labor and materials which are reasonably required to improve, repair, refurbish, modify, restore and/or replace, when reasonably necessary, the Premises, or portions or components thereof, and the costs and expenses of which equal or exceed Two Thousand Five Hundred Dollars ($2,500.00).

Notwithstanding the foregoing, the term Capital Repairs as used herein does not include the City’s responsibility for maintenance and upkeep as set forth in Section 1.1.

2.2.1. Capital Facilities Audit. Prior to the Effective Date, Successor Agency shall engage a third party inspector to inspect the Premises and evaluate the condition of the capital facilities as well as the general maintenance of the Premises in accordance with the provisions of Section 2.4(b) of the Eleventh Amendment to the Interim Agreement.

2.2.2. Capital Repair Budget. For the ROPS 26-27A period commencing January 1, 2027 to June 30, 2027, Successor Agency has included a budget in the amount of Six Hundred Thousand ($600,000) for emergency Capital Repairs. Capital Repair needs identified by the third party inspector in the Capital Facilities Audit completed pursuant to Section 2.2.1 shall be incorporated in the Successor Agency’s Amended ROPS 26-27B. 5 2.2.3. Repayment of Capital Repair Loan. In the event the amounts budgeted for Capital Repairs pursuant to Section 2.2.2 are insufficient to complete necessary Capital Repairs, Successor Agency agrees to repay the Capital Repair Loan advanced by City pursuant to Section 1.8. Successor Agency shall request Real Property Tax Trust Funds on future ROPS to repay the principal of all Capital Repair Loans, if any. Capital Repair Loans shall not accrue interest.

2.3. Facilities Inspections & Budget; Maintenance Standards. As often as necessary, but in no event less than one time during the Term, the Successor Agency shall engage a third party inspector to inspect the Premises and evaluate the condition of the capital facilities as well as the general maintenance of the Premises. Capital facility repair needs identified by the third party inspector shall be incorporated into the Schedule of Capital Repairs for the following year. Maintenance deficiencies identified by the third party inspector shall be remedied by the City as necessary to keep the Premises in a first class condition and a good state of appearance and repair. Successor Agency and City shall work together to prepare an updated comprehensive schedule of maintenance standards designed to maintain the Premises as a first class facility. A third party facilities consultant may be engaged to assist in this regard.

3. Term of Agreement. The term of this Agreement (hereinafter the “Term”) shall commence on January 1, 2027 (“Effective Date”) and shall, unless earlier terminated by the Parties, automatically terminate on December 31, 2027.

4. Further Assurances. The Successor Agency and the City will each take any and all other actions, and execute and deliver any and all other documents, as may be required or reasonably requested in order to effectuate the terms and provisions set forth in this Agreement.

5. Administration. Unless clearly indicated otherwise, any action, decision, direction, notice or approval to be given by the Successor Agency hereunder may be given by the Executive Director and any action, decision, direction, notice or approval to be given by the City hereunder may be given by the City Manager, provided, however that the Executive Director and City Manager, in his/her absolute discretion may determine that such matter must be submitted to the legislative body of the Successor Agency and/or City Council.

6. Counterparts. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the Parties.

7. Severability. The invalidity or illegality of any provision shall not affect the remainder of this Agreement and all remaining provisions shall, notwithstanding any such invalidity or illegality, continue in full force and effect.

8. Nature of this Agreement. This Agreement is in the nature of a services agreement and is not intended to create a lease, license or other possessory interest or other interest in real property of any kind.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.
6 [signatures on next page]
7 “SUCCESSOR AGENCY”

SUCCESSOR AGENCY OF THE

REDEVELOPMENT AGENCY OF THE

CITY OF LAKE ELSINORE
By: _______________________________
Jason Simpson, Executive Director
ATTEST:

SUCCESSOR AGENCY SECRETARY
By: __________________________
Candice Alvarez, MMC
APPROVED AS TO FORM:

LEIBOLD McCLENDON & MANN, P.C.

Successor Agency Counsel
By: ___________________________
Barbara Zeid Leibold
“CITY”

CITY OF LAKE ELSINORE
By: _______________________________
Jason Simpson, City Manager
ATTEST:

CITY CLERK
By: __________________________
Candice Alvarez, MMC
APPROVED AS TO FORM:

LEIBOLD McCLENDON & MANN, P.C.

City Attorney
By: ___________________________
Barbara Zeid Leibold

Page 1 of 5 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: January 13, 2026
Subject: Approval of a Joint Community Facilities Agreement and an Acquisition, Construction and Funding Agreement for Community Facilities District No. 2015-4 (Terracina) and Authorizing the Issuance of its Special Tax Bonds, Series 2026
Recommendation

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

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

ELSINORE, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT OF THE CITY OF LAKE ELSINORE NO. 2015-4 (TERRACINA) AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX BONDS, SERIES 2026 IN A PRINCIPAL AMOUNT NOT TO EXCEED TWELVE MILLION DOLLARS ($12,000,000) AND

APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH; and

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

CALIFORNIA, APPROVING A JOINT COMMUNITY FACILITIES AGREEMENT AND AN

ACQUISITION, CONSTRUCTION, AND FUNDING AGREEMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE (TERRACINA). (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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Background
The City of Lake Elsinore (the “City”) formed Community Facilities District No. 2015-4 (Terracina) (the “District”) in 2016 pursuant to the Mello-Roos Community Facilities District Act of 1982, as amended.

The District contains approximately 151 gross acres and is located approximately one mile southwest of Interstate 15 along the east side of Terra Cotta Road north of Lakeshore Drive. The developer of the property within the District is KB Home Coastal, Inc. (“KB Home”). The project is being marketed by KB Home as “Terracina” and is being developed in two neighborhoods:
“Carrera” and “Villa Real.”
The property within the District is planned for 402 single-family detached homes. As of September 25, 2025, KB Home had completed and conveyed 182 homes within the District to individual homeowners, and as of such date, KB Home owned six model homes, 42 production homes over 95 percent complete, 34 homes in various stages of construction, and 138 finished lots. KB Home currently expects to complete and convey all homes planned within the District to individual homeowners by the end of June 2027.

The development and ownership status of the planned homes within the District as of September 25, 2025 is shown in the table below.

Ownership and Development Summary (September 25, 2025)
Parcels In Escrow
Individually Owned
Completed 182 --
Developer Owned
Model Homes 6 --
Production Homes (Over 95% Complete) 42 22
Under Construction 34 25
Finished Lots
Subtotal
138
220
18 65
TOTAL 402 65
Annual debt service on the proposed Special Tax Bonds, Series 2026 (the “2026 Bonds”) will be sized based on the expected Special Tax revenues to be received from 227 homes classified as Developed Property for fiscal year 2025-26. The bond documents allow for the issuance of additional bonds payable from Special Tax revenues on parity with the 2026 Bonds. Staff expects KB Home to request the issuance of parity bonds in Fiscal Year 2027. (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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The Resolutions before the City Council authorizes the issuance of the 2026 Bonds to finance the costs of construction of City facilities, including but not limited to public improvements to be owned by the City, and water and sewer facilities to be owned and operated by the Elsinore Valley Municipal Water District (the “Water District”). The Resolutions also authorize the approval and execution of certain documents, including a Joint Community Facilities Agreement (“JCFA”) with the Water District, and an Acquisition, Construction and Funding Agreement (“Acquisition Agreement”).

Discussion
The proposed 2026 Bonds are estimated to be issued in the principal amount of approximately $11,335,000. The final structure and payment schedule will be determined when the 2026 Bonds are priced and sold, which is expected to be in January 2026. The bond closing is expected to occur approximately two weeks after the pricing of the 2026 Bonds.

The table below highlights preliminary financing statistics of the 2026 Bonds based on current market conditions.

Summary of Financing Statistics¹
2026 Bonds
Par Amount $11,335,000
True Interest Rate 5.08%
Estimated Cost to Homeowners
FY 2025-26 Assessment² $2,759 - $3,290
¹Preliminary and subject to change.
²Annual Assigned Special Tax will increase at approximately 2% per year.

The Fiscal Year 2025-26 estimated Special Tax levy on homes within the District range between $2,759 and $3,290, depending on the size of the home. Such rates will increase 2.0% per year.

As required under Section 5852.1 of the California Government Code, the good faith estimates as provided by the Municipal Advisor and Underwriter are set forth in Exhibit A to this staff report.

Approval of the Resolutions with respect to the issuance of the 2026 Bonds approves the form of and/or authorizes the execution and delivery of the following documents:
 Preliminary Official Statement: The Preliminary Official Statement (the “POS”) is the “offering document” for the 2026 Bonds. It provides a description of the District, the 2026 Bonds, the proposed development within District, and any other information that would be material to a prospective investor’s decision on whether to purchase the 2026 Bonds.

While the City’s counsel, consultants, and the underwriter have participated in preparing the POS, City Council and staff are ultimately responsible for ensuring that the POS is accurate, contains no misleading information and does not omit any information necessary to make the POS not misleading to investors.
(Subject Matter 1- 4 words only. Do Not add date or page numbering)

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 Bond Indenture: The Bond Indenture is a contract entered into between the District and Wilmington Trust, National Association, as the appointed Trustee for the 2026 Bonds. This document contains terms of the 2026 Bonds including, but not limited to, the payment and redemption provisions, the pledge of revenues to pay the 2026 Bonds, rights and duties of the Trustee, remedies upon a default in the payment of the 2026 Bonds, and other related matters.
 Continuing Disclosure Certificate: Executed for the benefit of bondholders, the Continuing Disclosure Certificate obligates the District to file an annual report each Fiscal Year which includes, among other things, the most recent audited financial statements of the City and financial data relating to the District. The District is also required to report certain events which are significant to bondholders if and when they occur.  Bond Purchase Agreement: Pursuant to the Bond Purchase Agreement, the District agrees to sell the 2026 Bonds to the underwriter and the underwriter agrees to purchase the 2026 Bonds, subject to typical closing conditions. City staff, the City’s municipal advisor, and bond counsel will sign off on the final pricing of the 2026 Bonds prior to the execution of the Bond Purchase Agreement.
 Appraisal: The Resolution approves the preparation of the Appraisal, which provides an estimate of the market value of property within the District subject to the special tax lien.

The estimates, provided by an independent and impartial qualified appraiser, will be used to market the 2026 Bonds to prospective investors in the POS.  Acquisition Agreement: The Acquisition Agreement establishes the terms pursuant to which the City will acquire and the District will reimburse KB home for the eligible facilities which KB Home has completed and conveyed to the City.
 Joint Community Facilities Agreement: The JCFA establishes the terms pursuant to which the District will finance certain water and/or sewer facilities that will be constructed, owned and operated by the Water District.

Bond Counsel and the City Attorney have reviewed the attached financing documents on behalf of the City. If this resolution is approved, City staff will continue to work with the financing team to finalize all of the aforementioned documents. As previously mentioned, the pricing date is currently targeted for January 2026.

Fiscal Impact
The 2026 Bonds are paid from special taxes levied in the District. There is no fiscal impact to the City’s General Fund. The City will, however, be required to provide administration for the District, which will be funded as part of the annual special tax levy.

As previously mentioned, the Fiscal Year 2025-26 estimated Special Tax levy on homes within the District range between $2,759 - $3,290. Such special taxes will increase at 2.0% per year. (Subject Matter 1- 4 words only. Do Not add date or page numbering)

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Attachments
Attachment 1 - Good Faith Estimates
Attachment 2 - City Resolution Approving Issuance of 2026 Bonds Attachment 3 - City Council Resolution Approving JCFA and Acquisition Agreement Attachment 4 - Acquisition, Construction and Funding Agreement Attachment 5 - Joint Community Facilities Agreement
Attachment 6 - Preliminary Official Statement
Attachment 7 - Bond Indenture
Attachment 8 - Continuing Disclosure Certificate (Exhibit F to the Preliminary Official Statement) Attachment 9 - Bond Purchase Agreement
Attachment 10 - Appraisal Report
ATTACHMENT 1

GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the 2026 Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the District by Urban Futures, Inc., the District’s Municipal Advisor (the “Municipal Advisor”) in consultation with Stifel, Nicolaus & Company, Incorporated, the Underwriter for the 2026 Bonds.

Principal Amount. The Municipal Advisor has informed the District that, based on the District’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the 2026 Bonds to be sold is $11,335,000 (the “Estimated Principal Amount”).

True Interest Cost of the 2026 Bonds. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the 2026 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the 2026 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the 2026 Bonds, is 5.08%.

Finance Charge of the 2026 Bonds. The Municipal Advisor has informed the District that assuming that the Estimated Principal Amount of the 2026 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the 2026 Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the 2026 Bonds), is $458,690. Additionally, there will be an annual Trustee fee of approximately $2,000 for as long as the 2026 Bonds are outstanding.

Amount of Proceeds to be Received. The Municipal Advisor has informed the District that, assuming the Estimated Principal Amount of the 2026 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the District for sale of the 2026 Bonds, less the finance charge of the 2026 Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the 2026 Bonds, is $9,934,878.

Total Payment Amount. The Municipal Advisor has informed the District that, assuming that the Estimated Principal Amount of the 2026 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the District will make to pay debt service on the 2026 Bonds, plus the finance charge for the 2026 Bonds, as described above, not paid with the proceeds of the 2026 Bonds, calculated to the final maturity of the Bonds, is $23,306,847.

Additionally, there will be an annual Trustee fee of $2,000 for as long as the 2026 Bonds are outstanding.

The foregoing estimates constitute good faith estimates only. The actual principal amount of the 2026 Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the 2026 Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of the 2026 Bonds sold being different from the Estimated Principal Amount, (c) the actual amortization of the 2026 Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the 2026 Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the District’s financing plan, or a combination of such factors. The actual date of sale of the 2026 Bonds and the actual principal amount of 2026 Bonds sold will be determined by the District based on the timing of the need for proceeds of the 2026 Bonds and other factors. The actual interest rates borne by the 2026 Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the 2026 Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the District.

RESOLUTION NO. 2026-

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

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT OF THE CITY OF LAKE ELSINORE NO. 2015-4 (TERRACINA) AUTHORIZING THE ISSUANCE OF ITS SPECIAL TAX BONDS, SERIES 2026 IN A PRINCIPAL AMOUNT NOT TO EXCEED TWELVE MILLION DOLLARS ($12,000,000) AND APPROVING CERTAIN DOCUMENTS

AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH Whereas, on March 8, 2016, the City Council of the City of Lake Elsinore (the “City Council”) adopted Resolution No. 2016-023 stating its intention to form Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “CFD” or the “District”) 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 8, 2016, the Council also adopted Resolution No. 2016-024 stating its intention to incur bonded indebtedness within the District in the amount not to exceed $20,000,000 to finance the facilities and improvements identified in Resolution No. 2016-023 and the incidental expenses to be incurred in financing such facilities and improvements and forming and administering the District; and
Whereas, after a noticed public hearing, on April 12, 2016, the Council adopted Resolution Nos. 2016-037 and 2016-038 which formed the District and called a special election on April 12, 2016, within the District on three 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 12, 2016; and
Whereas, subsequent to the formation of the District, the District received a petition signed by the property owner within the District, requesting that the District approve a new rate and method of apportionment for the District (the “Change Proceedings”); and Whereas, on March 8, 2022, following the close of a noticed public hearing, the Council adopted Resolution No. 2022-25, which called a special election on March 8, 2022 within the District on the approval of the Change Proceedings; and Whereas, on March 8, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote, the Change Proceedings; and Whereas, the legislative body of the District desires to issue a first series of bonds for the District at this time under the Act to finance certain public facilities which the District is authorized to finance; and
Whereas, the District desires to accomplish the financing of certain public facilities through the issuance of bonds in an aggregate principal amount not to exceed $12,000,000 designated as the “Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) Special Tax Bonds, Series 2026” (the “Bonds”); and Whereas, in order to effect the issuance of the Bonds, the District desires to enter into various agreements and approve certain documents in substantially the forms presented herein; and
CC Reso. No. 2026-

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Whereas, based on the appraisal of real property prepared by Kitty Siino & Associates, Inc. (the “Appraisal”) of property within the District, the value of the real property in the District subject to the special tax to pay debt service on the Bonds is more than three times the sum of the principal amount of the Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District as calculated in the manner set forth in Section 53345.8(a) of the Act; and
Whereas, the City Council has determined in accordance with Section 53360.4 of the Act that a negotiated sale of the Bonds to Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) in accordance with the terms of the Bond Purchase Agreement for the Bonds to be entered into by the District and the Underwriter (the “Bond Purchase Agreement”) approved as to form by this City Council herein will result in a lower overall cost to the District than a public sale; and
Whereas, pursuant to Government Code Section 8855, the District is required to adopt a debt management policy; and
Whereas, the District has determined to adopt the City’s Debt Management Policy adopted by the City Council of the City on July 11, 2017 as the debt management policy of the District;

NOW, THEREFORE, THE CITY COUNCIL, ACTING AS THE LEGISLATIVE BODY OF CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Each of the above recitals is true and correct.

Section 2. The issuance of the Bonds is hereby authorized in an aggregate principal amount not to exceed $12,000,000, with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 5 below. The City Council hereby determines that it is prudent in the management of the District’s fiscal affairs to issue the Bonds. The Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 5 hereof. All other provisions of the Bonds shall be governed by the terms and conditions of the Bond Indenture (the “Indenture”), which Indenture shall be substantially in the form on file with the City Clerk, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to enhance the security for the Bonds, to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 5 hereof or to conform any provisions therein to the Bond Purchase Agreement or the Official Statement delivered to the Underwriter of the Bonds.

Approval of such changes shall be conclusively evidenced by the execution and delivery of the Indenture by one of the following: the Mayor, the City Manager, the Assistant City Manager, or their written designees (each, an “Authorized Officer” and collectively, the “Authorized Officers”), each of whom is authorized to execute the Indenture. Capitalized terms used in this Resolution that are not defined herein have the meanings ascribed to them in the Indenture.

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Section 3. The Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the City or his or her written designee and be attested by the manual or facsimile signature of the City Clerk. Wilmington Trust, National Association is hereby appointed to act as trustee, registrar and transfer agent for the Bonds.

Section 4. The covenants set forth in the Indenture to be executed in accordance with Section 2 above are hereby approved, shall be deemed to be covenants of the City Council and shall be complied with by the District and its officers. The Indenture shall constitute a contract between the District and the Owners of the Bonds.

Section 5. The form of the Bond Purchase Agreement presented at this meeting is hereby approved and each of the Authorized Officers is hereby authorized to execute the Bond Purchase Agreement, with such additions thereto and changes therein relating to dates and numbers as are necessary to conform the Bond Purchase Agreement to the dates, amounts and interest rates applicable to the Bonds as of the sale date. Approval of such additions and changes shall be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement by one or more of such Authorized Officers; provided, however, that the Bond Purchase Agreement shall be signed only if the Underwriter’s discount does not exceed 1.40% of the principal amount of the Bonds and only if the true interest cost on the Bonds does not exceed 6.00%. Each of the Authorized Officers is authorized to determine the day on which the Bonds are to be priced in order to attempt to produce the lowest borrowing cost for the District and may reject any terms presented by the Underwriter if determined not to be in the best interest of the District.

Section 6. The form of the Continuing Disclosure Certificate presented at this meeting is hereby approved and each of the Authorized Officers is hereby authorized and directed to execute the Continuing Disclosure Certificate in the form hereby approved, with such additions therein and changes thereto as the officer or officers executing the same deem necessary to cure any defect or ambiguity therein, with such approval to be conclusively evidenced by the execution and delivery of such certificate.

Section 7. The form of the Preliminary Official Statement presented at this meeting is hereby approved and the Underwriter is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Bonds in the form hereby approved, together with such additions thereto and changes therein as are determined necessary by the Authorized Officers to make such Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 of the Securities and Exchange Commission. Each of the Authorized Officers is hereby authorized to execute a final Official Statement in the form of the Preliminary Official Statement, together with such changes as are determined necessary by the Authorized Officers, to make such Official Statement complete and accurate as of its date. The Underwriter is further authorized to distribute the final Official Statement for the Bonds and any supplement thereto to the purchasers of the Bonds upon the execution of the final Official Statement as described above.

Section 8. In accordance with the requirements of Section 53345.8 of the Act, based on the Appraisal, the legislative body of the District hereby determines that the value of the real property in the District subject to the special tax to pay debt service on the Bonds is more than three times the principal amount of the Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District, all as calculated in the manner provided in Section 53345.8(a) of the Act.

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Section 9. Each Authorized Officer is authorized to provide for all services necessary to effect the issuance of the Bonds. Such services shall include, but not be limited to, printing the Bonds, obtaining legal services, trustee and paying agent services and any other services deemed appropriate as set forth in a certificate of such Authorized Officer. Each Authorized Officer is authorized to pay for the cost of such services, together with other costs of issuance, from Bond proceeds deposited pursuant to the Indenture.

Section 10. The Authorized Officers, the City Clerk and the other officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the Bonds in accordance with the provisions of this Resolution and the fulfillment of the purposes of the Bonds as described in the Indenture, including, in the discretion of any of the Authorized Officers, the execution of a letter of credit or cash depository agreement with the developer within the District and Wilmington Trust, National Association relating to any security provided by the developer with respect to the special taxes to be levied within the District, and providing certificates to the Underwriter as to the accuracy of any information relating to the District which is included within the Official Statement. Any document authorized herein to be signed by the City Clerk may be signed by a duly appointed deputy clerk.

Section 11. The District hereby adopts the City’s Debt Management Policy, as amended, supplemented and restated from time to time, as the debt management policy of the District pursuant to California Government Code Section 8855.

Section 12. The City Council acknowledges that the good faith estimates required by Section 5852.1 of the California Government Code are disclosed in the staff report and are available to the public at the meeting at which this Resolution is approved.

Section 13. This Resolution shall be effective upon its adoption.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 13th day of January 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
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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. 2026-____ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 13, 2025 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk
RESOLUTION NO. 2026-

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

CALIFORNIA, APPROVING A JOINT COMMUNITY FACILITIES AGREEMENT

AND AN ACQUISITION, CONSTRUCTION, AND FUNDING AGREEMENT FOR COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE

ELSINORE (TERRACINA)
Whereas, the City Council of the City of Lake Elsinore (the “City”), located in Riverside County, California (hereinafter sometimes referred to as the “legislative body of the District”), previously formed Community Facilities District No. 2015-4 (Terracina) of the City of Lake Elsinore (the “District”) pursuant to the terms and provisions of the Mello Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and Whereas, subsequent to the formation of the District, the District received a petition signed by the property owner within the District, requesting that the District approve a new rate and method of apportionment for the District (the “Change Proceedings”); and Whereas, on March 8, 2022, following the close of a noticed public hearing, the City Council adopted Resolution No. 2022-25, which called a special election on March 8, 2022 within the District on the approval of the Change Proceedings; and Whereas, on March 8, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote, the Change Proceedings; and Whereas, pursuant to Section 53316.2 of the Act, a community facilities district is authorized to finance facilities to be owned or operated by an entity other than the agency that created the community facilities district pursuant to a joint community facilities agreement; and Whereas, Elsinore Valley Municipal Water District (the “Water District”), previously authorized the use of the District to finance water and/or sewer facilities that will be constructed, owned and operated by the Water District and have requested the City to enter into a joint community facilities agreement that would permit the District to finance such facilities, the form of which is on file with the Secretary of this City Council and which is incorporated herein by this reference (the “Joint Community Facilities Agreement”); and Whereas, KB HOME COASTAL, INC. a California corporation (the “Developer”), owns property within the District; and
Whereas, the Developer and the City (acting for itself and on behalf of the District) desire to enter into the Acquisition, Construction and Funding Agreement in the form on file with the City Clerk (the “Acquisition Agreement”), to constitute a formal understanding between the Developer and the City concerning financial and other obligations and responsibilities related to the Improvements to be financed by the District, and to set forth the conditions upon which the District will reimburse the Developer or its designee for certain costs of the Improvements constructed by or on behalf of the Developer, including from proceeds of the Bonds, to the extent available;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1. Each of the above recitals is true and correct.

Section 2. Pursuant to Section 53316.2 of the Act, this City Council hereby approves the Joint Community Facilities Agreement substantially in the form on file with the City Clerk and determines that the Joint Community Facilities Agreement will be beneficial to the residents of the territory served by the City and included within the jurisdictional boundaries of the District.

The Mayor, the City Manager, the Assistant City Manager, or their written designees are each hereby authorized and directed to execute and deliver the Joint Community Facilities Agreement in said form with such changes, insertions, and omissions as may be approved by the officer or officers executing such agreement, said execution and delivery being conclusive evidence of such approval.

Section 3. The City Council hereby approves the Acquisition Agreement in substantially the form presented to the City Council at this meeting. The Mayor, the City Manager, and the Assistant City Manager are each hereby authorized and directed to execute and deliver the Acquisition Agreement in said form with such changes, insertions, and omissions as may be approved by the officer or officers executing such agreement, said execution and delivery being conclusive evidence of such approval.

Section 4. This Resolution shall be effective upon its adoption.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 13th day of January 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk
Stradling Yocca Carlson & Rauth
Draft of 11/19/2025
4910-1947-9414v4/022042-0051

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4
(TERRACINA)

ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT
THIS ACQUISITION, CONSTRUCTION AND FUNDING AGREEMENT dated ______, 2025 (the “Agreement”), is made and entered into by and between CITY OF LAKE ELSINORE (the “City”), acting for and on behalf of itself and COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF THE CITY OF LAKE ELSINORE, (TERRACINA) (the “Community Facilities District” or “CFD”), and KB HOME COASTAL, INC., a California corporation (the “Developer”), each individually a “Party” and collectively the “Parties.” WHEREAS, the City has formed the CFD pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), authorized special taxes and issuance of bonded indebtedness to finance certain public improvements to be owned, operated or maintained by the City and the Elsinore Valley Municipal Water District (“Water District”), and Incidental Expenses in accordance with the Act; and
WHEREAS, in order to proceed in a timely way with development of the property within the Community Facilities District which is attached as Exhibit “A” (the “Developer Property”), Developer desires to fund through the Community Facilities District (i) the City’s acquisition of certain public improvements that are to be owned, operated and maintained by the City (“Acquisition Improvements”), as more particularly described in Exhibit “B” attached hereto, (ii) improvements included in the City’s fee programs (the “City Fee Facility Improvements”), as more particularly set forth and described in the Description of Cost Estimates attached hereto as Exhibit “B” and (iii) improvements of the Water District, as described in Exhibit “D” hereto (the “EVMWD Improvements” and, together with the Acquisition Improvements and City Fee Facility Improvements, the “Improvements”); and
WHEREAS, the City is authorized by the Act to form the CFD, levy special taxes and issue bonds to fund the Improvements; and
WHEREAS, the City Council has adopted its “Statement of Goal and Policies for the Use of the Mello-Roos Community Facilities Act of 1982,” which sets forth the City’s policies and procedures concerning the use of special district financing programs to finance City facilities (the “Policy”); and
WHEREAS, the purpose of this Agreement is to constitute a formal understanding between Developer and the City (pursuant to the requirements of Government Code Section 53313.51 and other provisions of the Act and the Policy) concerning financial and other obligations and responsibilities related to the Improvements to be financed by the Community Facilities District to the extent funds are available, and to set forth the conditions upon which the Community Facilities District will fund the Improvements. 2 4910-1947-9414v4/022042-0051
NOW, THEREFORE, it is mutually agreed between the respective parties as follows:

SECTION 1. DEVELOPER DEPOSIT
At Developer’s request, the City undertook the formation of the Community Facilities District. The Developer has advanced to the City a sum of money related to the costs of such formation proceedings, all of which shall be eligible for reimbursement from the CFD. The City will provide to Developer on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by Developer and, to the extent determined reasonable and appropriate by the City, expenses incurred by Developer for engineering consultant costs in connection with the formation of the Community Facilities District and the issuance of bonds, will be reimbursable to Developer, without interest, from the proceeds of bonds (the “Bonds”) issued by the Community Facilities District. In the event that Bonds are not issued to provide a source of reimbursement to Developer, the City shall not have any liability to Developer to reimburse it for any of the amounts previously advanced by Developer and expended by the City.

Prior to the issuance of the Bonds, the City may request a final advance for any unpaid expenses incurred during preparatory technical, financial and legal work; and following payment of such expenses, the City shall promptly release the balance, if any, of the advance to Developer. Should the City’s expenses exceed the remaining balance, the City will bill Developer for the difference, which Developer agrees to pay within 10 days following receipt of such billing, subject to the conditions of paragraph one of this section.

SECTION 2. SALE OF BONDS

2.1 City Policy and Requirements for the Issuance of Bonds. The Policy sets forth the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements. Pursuant to the Policy, the total annual amount of the special taxes to be collected with respect to a parcel within the CFD and all other taxes and assessments which will be collected with respect to such parcel must not exceed two percent (2%) of the expected assessed value of such parcel within the Community Facilities District upon the completion of all expected structural improvements to such parcel.

The parties hereby agree that, unless waived by the City, at the time of issuance of the Bonds, the following requirements shall be met: (1) the ratio of the value of all parcels of property for which the Bonds are being issued to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four-to-one (4:1) and (2) at least 50% of the proposed residential units within the Community Facilities District shall have been completed and conveyed to individual homeowners. The fair market value of the property within the Community Facilities District for purposes of determining the foregoing ratio will be determined based on the assessed value of the property or the appraised value of the property based on the appraisal made by an appraiser selected by the City with a valuation date within ninety (90) days of the issuance of the Bonds. Subject to satisfaction of the Policy and the requirements of this Agreement, the City shall use its best efforts to issue and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in accordance with the schedule for development of the Developer Property.
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2.2 Security for Payment of Special Taxes.
(a) Concurrently with the issuance and sale of each series of the Bonds, the owner of any land within the CFD which the City has determined, in its sole discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum Special Taxes for the then-current fiscal year (as defined in the Rate and Method of Apportionment of Special Tax for the CFD (“Rate and Method”) and such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument of credit from a financial institution (rated “A” or better, or otherwise approved by the City) and approved by the City, or (ii) cash in-lieu thereof (a “Security”). The Security shall be in an amount calculated by multiplying the Special Tax Requirement (as defined in the Rate and Method) for the then current and following fiscal year, by the percentage of the Maximum Special Taxes for the current fiscal year allocable to the Sizing Property owned by the Account Party (the “Stated Amount). The Security shall be maintained by the Account Party in each fiscal year until terminated in accordance with Section

2.2(c) below. While the Security is still required the Stated Amount of such Security shall be reduced as set forth in a Certificate of Reduction or Termination (as defined in Section 2.2(c) below).

The Security shall name the City, or its designee, as a beneficiary and shall provide that the City, or its designee, may draw an amount equal to any delinquencies in payment of semiannual installments of the Special Taxes levied on property owned by the Account Party in the Community Facilities District. The total amount to be drawn under the Security shall not exceed an amount equal to the Special Taxes owed by the Account Party with respect to property within the Community Facilities District that is delinquent at the time the draw is made.

The amount drawn on the Security shall be applied in the same manner and for the same purposes as the delinquent Special Taxes would have been applied; provided, however the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.

If, subsequent to a draw on the Security and prior to the satisfaction of any reimbursements due to the institution providing the Security (the “Security Provider”) pursuant to this Agreement, the City receives payment of all or a portion of the delinquent Special Taxes or the proceeds of a sale of delinquent real property pursuant to foreclosure proceedings (“Delinquency Proceeds”) for a parcel for which the Security has been drawn, the Security Provider shall be reimbursed for such draws to the extent of Delinquency Proceeds net of the City’s costs of collection, provided that the Security is or has been concurrently reinstated to, or a Substitute Security (as defined below) provided for, the then applicable Stated Amount. The Security Provider is intended by the Parties to be a third party beneficiary of this Section 2.2. (b) The Security shall be renewed, or a substitute Security reasonably satisfactory to the City (a “Substitute Security”) provided, not less than thirty (30) calendar days prior to the expiration of the Security or Substitute Security then in effect. If the Account Party provides a Substitute Security to the City, then the City or its designee, shall return any existing Security on the effective date of the Substitute Security to the Security Provider.

If the Security is not renewed within thirty (30) days prior to its expiration date and the requirements for release or termination of the Security as set forth in Section 2.2(c) below have not then been met, the full amount of the Security may be drawn by the City and deposited in an 4 4910-1947-9414v4/022042-0051
account established under the Indenture (as hereinafter defined) or in such account established with a financial institution selected by the City. Thereafter, amounts in such account shall be held as security, and if Special Taxes owed by the Account Party with respect to property within the Community Facilities District are not paid prior to delinquency, then such amounts in such account may be applied by the City to pay the delinquent Special Taxes owed by the Account Party with respect to such property on the same terms and conditions applicable hereunder to draws on the Security.

At such time as the Security is renewed, or a Substitute Security is accepted by the City, or the requirement for the Security has been terminated pursuant to this section, the City or its designee, shall release all amounts in the Security account to the Security Provider within ten (10) calendar days from the date of renewal or acceptance. (c) Following the sale or transfer by the Account Party of any property to a person other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the Account Party, the Account Party shall notify the Community Facilities District of such event, in writing, and, if requested by the Account Party, the Stated Amount of the Security shall be reduced and be recalculated in accordance with this Section 2.2; provided, however, that any costs associated with the recalculation and reduction shall be borne by the Account Party. Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount determined by the method of calculation set forth in Section 2.2(a) above. The Security shall be terminated upon the earlier of (i) when the Sizing Property owned by, or under option to, the Account Party is responsible for less than 20% of the Maximum Special Taxes applicable to all of the Sizing Property or (ii) when the Account Party has paid (or cause to be paid) all Special Taxes owed by the Account Party in the current fiscal year and the Sizing Property owned by, or under option to, the Account Party is expected to be responsible for less than 20% of the Maximum Special Taxes in the next fiscal year.

Reduction or termination of a Security shall occur automatically upon submission to the Security Provider by the City of a “Certificate of Reduction or Termination.” The City shall deliver to the Security Provider, such Certificate of Reduction or Termination promptly upon receiving from the Account Party a certification which shall be made under penalty of perjury and which shall indicate (i) the legal description of all land owned by the Account Party, and either (ii) a recalculation of the new Stated Amount that the Account Party proposes be applicable to the Security or (iii) if termination of the Security is requested, a statement that one of the requirements set forth in (i) through (iii) of the preceding paragraph have been satisfied.

The Account Party shall notify the City of any events that will result in a reduction of the Stated Amount of the Security and shall provide the City with verification of said events. The Account Party may provide the City with a Substitute Security in the reduced amount, and the City shall release and return to the Security Provider the Security then in effect. The Parties expressly acknowledge that the Account Party’s failure to so notify the City or to reduce the Security at the times prescribed herein shall in no way effect or invalidate sale or transfer of property, or recordation of maps on property.
(d) If property is sold or transferred by an Account Party with the result that the land owned by the transferee or any of its affiliates (“Transferee”) is responsible for twenty percent (20%) or more of the Maximum Special Tax of all Sizing Property in the current fiscal year, a Security on the same terms specified herein will be furnished by Transferee with respect to all land owned by such Transferee in the Community Facilities District. Any applicable purchase and sale agreement and/or escrow instructions shall notify the Transferee of this Security 5 4910-1947-9414v4/022042-0051
requirement and obligate the Transferee to provide such Security, if applicable. The Security of the Account Party will not be reduced to reflect the sale or transfer of land until a Security is furnished by the Transferee and accepted by the City. The issuing financial institution and the form and terms of said Security will be subject to reasonable prior approval by the City. All terms provided in this Section 2.2 are applicable to the Transferee by replacing the term “Account Party” at each place where it occurs in each section with the term “Transferee.” Each provider of a Security for a Transferee shall be an express third party beneficiary of the provisions of this Section 2.2.

Any costs related to the holding or maintaining the Security, including any fees of a fiscal agent, trustee or other depository shall be borne by the Account Party.

2.3 Major Landowner Initial and Continuing Disclosure. An owner of land which is responsible for twenty percent (20%) or more of the Special Tax in the fiscal year in which the Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a “Major Landowner”) will be required to provide all information regarding the development of its property, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of Rule 15c2-12 of the Securities and Exchange Commission (the “Rule”) and all other applicable federal and state securities laws. Additionally, Developer acknowledges that, if it is a Major Landowner at the time of issuance of the Bonds, it will be necessary that Developer enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned by Developer within the Community Facilities District as necessary to assist the underwriter in complying with the continuing disclosure requirements of the Rule and/or to assist in the marketing of the Bonds.

2.4 Bond Issuance Parameters. The terms and conditions upon which each series of the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City in its reasonable discretion in conformance with the requirements of Government Code Section 53313.5, the Act, the Policy, and this Agreement. The Bonds shall be issued with a term not to exceed 31 years and annual debt service on the Bonds shall be permitted to escalate by two percent (2%) per year consistent with the annual escalation of the Special Tax. The proceeds of the Bonds shall be used in the following priority to (1) fund a reserve fund for the payment of principal and interest with respect to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt service on Bonds, or (iii) 125% of average annual debt service; (2) fund up to eighteen (18) months of capitalized interest; (3) pay for costs of issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax consultant fees, printing, and fiscal agent fees; (4) pay for the costs of forming the Community Facilities District and any change proceedings for the Community Facilities District; and (5) pay for the actual costs of the Improvements. The Community Facilities District shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution (hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or improvement fund (herein, the “Improvement Fund”) into which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (4) in the second preceding sentence. The Indenture shall also establish separate accounts of the Improvement Fund designated the “City Fee Facility Improvements Account,” the “City Acquisition Account” and the “EVMWD Facilities Account,” into which shall be deposited such portions of the Improvement Fund as directed by the City pursuant to consultation with the Developer at or subsequent to the closing of the sale of the Bonds consistent with the following priorities:
6 4910-1947-9414v4/022042-0051
(a) An amount sufficient to fund the reasonable, current estimated cost of the City Fee Facility Improvements anticipated to be funded out of the Bonds being issued shall be deposited in the City Fee Facility Improvements Account; (b) An amount equal to 20% of the amount funded in (a) shall be deposited in the City Fee Facility Improvements Account;
(c) An amount equal to the actual or estimated acquisition price(s) of the Acquisition Improvements to be funded with the proceeds of the Bonds shall be deposited in the City Acquisition Account; and
(d) An amount sufficient to fund the reasonable, current estimated cost of any EVMWD Facilities anticipated to be funded out of the Bonds being issued shall be deposited in the EVMWD Facilities Account.

The Indenture shall provide that (i) amounts in the City Acquisition Account and EVMWD Facilities Account may be transferred to one another at the request of the Developer and (ii) amounts remaining in the Improvement Fund after funding all proposed Improvements or sooner, as specified by the City, shall be deposited in the special tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of maturity.

SECTION 3. ALLOCATION OF SPECIAL TAXES
Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body of the Community Facilities District, shall levy Special Taxes at the assigned special tax rate on all parcels classified as Developed Property pursuant to the Rate and Method. Such Special Taxes collected by the City shall first be applied to fund annual administrative expenses of the Community Facilities District and then to fund Improvements in the same manner as the proceeds of Bonds as set forth in Section 2.4 above. Prior to the issuance of Bonds, such Special Taxes collected by the City each fiscal year in excess of that required to fund annual administrative expenses of the Community Facilities District shall be deposited in a special fund of the City, which shall also be referred to as the City Improvements Account. Upon the issuance of the Bonds, such City Improvements Account shall be closed and all funds then remaining in it shall be transferred to the City Fee Facility Improvements Account of the Improvement Fund that is established with the issuance of the Bonds. Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in documents pursuant to which the Bonds were issued. Following the issuance of the Bonds, the City shall have no obligation to levy Special Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds. The entire amount of any Special Tax levied by the Community Facilities District to repay the Bonds and recover costs and expenses allowable pursuant to Government Code Section 53313.5, shall be allocated to the Community Facilities District.

SECTION 4. NOTICE OF SPECIAL TAX
Developer, or Developer’s successors or assigns, shall provide written notice to all potential purchasers of lots advising of the special tax obligation applicable to the Developer Property in the form required by Section 53341.5 of the Government Code. 7 4910-1947-9414v4/022042-0051
SECTION 5. CITY FEE FACILITY IMPROVEMENTS AND DEPOSITS
The Developer may be required pursuant to the conditions of development or the City’s development impact fee ordinance to pay certain City fees (the “City Fees”) relating to the City Fee Facility Improvements prior to the availability of proceeds of the Special Taxes or Bonds to pay for such City Fee Facility Improvements in satisfaction of the City Fees. In the event such City Fees are paid prior to the availability of Special Taxes or Bond proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that are subject to refund by the City to the Developer in accordance with this Agreement. The City shall place each Deposit in a capital facilities account(s). If the Developer has made any Deposits to the City, then following deposit of Special Taxes in the City Improvements Account or Bond proceeds in the City Fee Facility Improvements Account, the City shall return to the Developer, from the capital account in which the Deposits were deposited an equal amount of the Deposits not previously returned, without interest or other earnings thereon. The City shall be so obligated to return such Deposits only to the extent that an equivalent amount of the Deposits to be returned is deposited in the City Improvements Account from Special Taxes and/or in the City Fee Facility Improvements Account from Bond proceeds.

Bond proceeds used to finance City Fee Facility Improvements shall be allocated first for return of all Deposits prior to being allocated to the satisfaction of City Fees not previously deposited by the Developer. Any Deposits that have not been returned to the Developer at the time it is determined that there will be no further Bond proceeds available (i.e. when the final series of Bonds to finance the Improvements have been issued) shall be retained by the City and may be used for the purposes for which the City Fees were required, and the unrefunded Deposits shall constitute full and final payment for such City Fees, without any increase of any kind.

Any City Fees paid (as Deposits) by the Developer shall be made with the understanding that such Deposits will be returned to the Developer if, and when, Special Taxes and Bond proceeds have been deposited to the City Improvements Account and/or City Fee Facility Improvements. The City shall expend any amounts disbursed to it from such Accounts on capital facilities. The payment of Deposits prior to the availability of the Special Taxes and Bond proceeds in such Accounts shall not be construed as a dedication or gift of the City Fees, or a waiver of the return of the Deposits, it being the intention that the City Fees be satisfied by Special Taxes and Bond proceeds to the extent of such Special Taxes and Bond proceeds.

SECTION 6. EVMWD FACILITIES.

The amounts deposited in the EVMWD Account, if any, will be disbursed for the acquisition or construction of EVMWD Facilities in accordance with the provisions in the Joint Community Facilities Agreement by and among the City, EVMWD and Developer relating to the CFD dated ________, 2025, as it may be amended (the “EVMWD JCFA”). Any amounts in the EVMWD Facilities Account shall be disbursed at the written direction of the City upon Developer’s or EVMWD’s submittal of a Payment Request Form provided for in the EVMWD JCFA. Upon receipt of the Payment Request Form, the City shall submit a written requisition for payment of the requested amount to trustee for the Bonds to pay the amount requested to the applicable entity.
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SECTION 7. DESIGN PLANS AND SPECIFICATIONS
The requirements of this Section shall not apply to any Acquisition Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other Acquisition Improvements. All plans, specifications and bid documents for the Acquisition Improvements (“Plans”) constructed or to be constructed by the Developer shall be prepared by the Developer at the Developer’s initial expense, subject to approval by the applicable public agency. Costs for preparation of the Plans will be eligible for reimbursement, conditioned upon the final approval of the applicable public agency and the availability of funds. Reimbursement of costs for plan revisions will be considered on a case by case basis. All facilities shall be bid in accordance with the “public works” requirements of Section 8.2 to be eligible for reimbursement. The Developer shall not award bids for construction, or commence or cause commencement of construction, of an Acquisition Improvement until the Plans and bidding documents have been approved by the City. The bid opening for Acquisition Improvements shall be coordinated with and take place at the City’s facilities, with City personnel in attendance.

SECTION 8. CONSTRUCTION OF IMPROVEMENTS
The requirements of this Section 8 shall not apply to any Acquisition Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other Acquisition Improvements.

8.1 Pre-Construction. A qualified engineering firm (the “Field Engineer”) shall be employed by the Developer to provide all field engineering surveys determined to be necessary by the City’s inspection personnel with respect to the Acquisition Improvement. Field Engineer shall promptly furnish to City a complete set of grade sheets listing all locations, offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting from Field Engineer’s engineering surveys and/or proposed facility design changes. City shall have the right, but not the obligation, to review, evaluate and analyze whether such results comply with applicable specifications.

A full-time soil-testing firm, approved by City, shall be employed by the Developer to conduct soil compaction testing and certification. The Developer shall promptly furnish results of all such compaction testing to the City for its review, evaluation and decision as to compliance with applicable specifications. In the event the compaction is not in compliance with applicable specifications, the Developer shall be fully liable and responsible for the costs of achieving compliance. A final report certifying all required compaction in accordance with the specifications shall be a condition of final acceptance of the Acquisition Improvement.

The costs of all surveying, testing and reports associated with the Acquisition Improvement furnished and constructed by the Developer’s contractor(s) shall be eligible to be paid from funds in the City Acquisition Account.

The City shall not be responsible for conducting any environmental, archaeological, biological, or cultural studies or any mitigation requirements that may be requested by appropriate Federal, State, and/or local agencies. Any such work shall be paid for and conducted by the Developer and reimbursed out of the City Acquisition Account.

Should the Developer notify the City that the Developer is unable to complete an Acquisition Improvement, the City shall have the right but not the obligation to require the 9 4910-1947-9414v4/022042-0051
Developer to make an irrevocable offer of dedication to the City of the land owned by the Developer for the Acquisition Improvement identified in the notice and to assume responsibility for the work to be performed thereunder. In the event the City elects to assume the responsibility for any work on a previously awarded contract as described in the preceding sentence, the following will occur: (i) the Developer will make an irrevocable offer of dedication to the City of the land owned by the Developer for such Acquisition Improvement identified in the notice; (ii) to the extent permitted by law and the applicable contract, the Developer will assign all of the contracts for the work performed to date on the Acquisition Improvement identified in the notice to the City, if requested to do so by the City Manager; the City will use its best efforts to complete the Acquisition Improvement within a reasonable time frame; and upon completion of the Acquisition Improvement, to the extent there are Special Taxes or proceeds of the Bonds available following payment to the City for the costs of completing such Acquisition Improvement, the Developer will be reimbursed for the lesser of the cost or value of the previously unreimbursed satisfactory work performed or paid for by the Developer. The cost of such work will be determined by taking the unreimbursed amounts expended by the Developer under the contract(s) taken over by the City and deducting any incremental cost incurred by the City to complete the work under the contracts in question. Incremental cost shall be costs in excess of the sum of the original contract cost plus change orders approved by the City.

8.2 Public Works Requirements. In order that the Acquisition Improvements funded through the CFD may be properly and readily acquired by the City, the Developer shall comply with all of the following requirements with respect to any such Acquisition Improvement to be acquired with funds in the City Acquisition Account, and the Developer shall provide such proof to the City as the City may reasonably require and at such intervals and in such form as the City may reasonably require, that the following requirements have been satisfied as to all such Acquisition Improvements:
(a) The Developer shall prepare a bid package for review, comment and approval by the City Manager of the City or his designee (the “City Representative”). (b) The Developer shall, after obtaining at least three sealed bids for the construction of the Acquisition Improvement in conformance with the procedures and requirements of the City, submit to the City written evidence of such competitive bidding procedure, including evidence of the means by which bids were solicited, a listing of all responsive bids and their amounts, and the name or names of the contractor or contractors to whom the Developer proposes to award the contracts for such construction, which shall be the lowest responsible bidder.
(c) The City Representative shall attend the bid opening. If unable to attend the bid opening, the City Representative shall approve or disapprove of a contractor or contractors, in writing, within five (5) business days after receipt from the Developer of the name or names of such contractor or contractors recommended by the Developer. If the City Representative disapproves of any such contractor; the Developer shall select the next lowest responsible bidder from the competitive bids received who is acceptable to the City Representative.
(d) The specifications and bid and contract documents shall require all such contractors to pay prevailing wages and to otherwise comply with applicable provisions of the Labor Code, the Government Code and the Public Contract Code relating to public works projects and as required by the procedures and standards of the City with respect to the construction of its public works projects.
10 4910-1947-9414v4/022042-0051
(e) The Developer shall submit faithful performance and payment bonds with respect to the Acquisition Improvement and the following documents shall be submitted to the City along with the performance and payment bonds:
(i) The original, or a certified copy, of the unrevoked appointment, power of attorney, bylaws, or other instrument entitling or authorizing the person who executed the bond to do so;
(ii) A certified copy of the certificate of authority of the insurer issued by the State of California’s Insurance Commissioner; and (iii) Copies of the insurer’s most recent annual and quarterly statements filed with the Department of Insurance.
(f) The Developer and its contractor and subcontractors shall be required to provide proof of insurance coverage throughout the term of the construction of the Acquisition Improvement, which they will construct in conformance with the City’s standard procedures and requirements. The City’s insurance requirements are set out in Section 20 herein. (g) The Developer and all such contractors shall comply with such other requirements relating to the construction of the Acquisition Improvement which the City may impose by written notification delivered to the Developer and each such contractor at the time either prior to the receipt of bids by the Developer for the construction of the Acquisition Improvement or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof; provided that such other requirements shall only be imposed to the extent the City reasonably determines they are required in order to comply with applicable law. The Developer or its contractor(s) shall be solely responsible for compliance and enforcement of the provisions of the Labor Code, Government Code, and Public Contract Code. (h) A “Change Order” is an order from the Developer to a contractor authorizing a change in the work to be performed that is required by a change in the Plans. The Developer shall solicit comments from the City Representative prior to the Developer’s approval of any Change Order. The City Representative shall comment on or deny the Change Order request within five (5) business days of receipt of all necessary information. The City’s comments to a Change Order shall not be unreasonably delayed, conditioned or withheld. The Developer shall not be entitled to be compensated for costs associated with a “Change Order” that has not been approved by the City Representative.

Developer shall provide proof to the City, at such intervals and in such form as the City may reasonably require, that the foregoing requirements have been satisfied as to all of the Acquisition Improvements which are funded through Bond proceeds.

SECTION 9. INSPECTION; COMPLETION OF CONSTRUCTION
The requirements of this Section shall not apply to any Acquisition Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other Acquisition Improvements funded through the CFD.

The City shall have primary responsibility for inspecting the Acquisition Improvements to assure that the work is being accomplished in accordance with the Plans. Such inspection does 11 4910-1947-9414v4/022042-0051
not include inspection for compliance with safety requirements by the Developer’s contractor(s).

The City’s personnel shall be granted access to each construction site at all reasonable times for the purpose of accomplishing such inspection. Upon satisfaction of the City’s inspectors, the Developer shall notify the City in writing that an Acquisition Improvement has been completed in accordance with the Plans. Any actual costs reasonably incurred by the City for inspection not previously paid by the Developer shall be reimbursed from funds in the City Acquisition Account.

Within three (3) business days of receipt of written notification from City inspectors that an Acquisition Improvement has been completed in accordance with the Plans, the City Representative shall notify the Developer in writing that such Acquisition Improvement has been satisfactorily completed. Upon receiving such notification, the Developer shall file a Notice of Completion with the County of Riverside Recorders Office, pursuant to the provisions of Section 3093 of the Civil Code. The Developer shall furnish to the City a duplicate copy of each such Notice of Completion showing thereon the date of filing with the County of Riverside (the “County”). City will in turn file a notice with the County for acceptance.

SECTION 10. LIENS
Prior to any payment by the CFD to the Developer for an Acquisition Improvement, the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment for the construction of the Acquisition Improvement have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation. With respect to the Acquisition Improvement, upon the earlier of (i) receipt of all applicable lien releases, or (ii) expiration of the time for the recording of claim of liens as prescribed by Sections 3115 and 3116 of the Civil Code, the Developer shall provide to the City such evidence or proof as the City shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment for the construction of the Acquisition Improvement have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation.

SECTION 11. ACQUISITION; ACQUISITION PRICE; SOURCE OF FUNDS The acquisition price of an Acquisition Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD shall be its fair market value, as determined by the City Manager or his or her designee, as of the date of acquisition. The City shall consider input and data provided by the Developer prior to determining the final fair market value.

The costs eligible to be included in the acquisition price of an Acquisition Improvement that is not described in the preceding paragraph (the “Actual Costs”) shall include:
(i) The actual hard costs for the construction of such Acquisition Improvement as established by the City-approved construction contracts and approved Change Orders, including costs of payment, performance and maintenance bonds and insurance costs, pursuant to this Agreement; (ii) The design and engineering costs of such Acquisition Improvement including, without limitation, the costs incurred in preparing the Plans.

Costs for plan revisions will be considered on a case by case basis; 12 4910-1947-9414v4/022042-0051
(iii) The costs of environmental evaluations and public agency permits and approvals attributable to the Acquisition Improvement;
(iv) Costs incurred by the Developer for construction management and supervision of such Acquisition Improvement, in an amount equal to five percent (5%) of the actual hard construction costs described in clause (i) above;
(v) Professional costs associated with the Acquisition Improvement such as engineering, inspection, construction staking, materials, testing and similar professional services; and
(vi) Costs approved by the City in accordance with the Act of acquiring any real property or interests therein required for the Acquisition Improvement including, without limitation, temporary construction easements, temporary by-pass road and maintenance easements.

Provided the Developer has complied with the requirements of this Agreement, the City agrees to pay the acquisition price of a completed Acquisition Improvement to the Developer or its designee within thirty (30) days after the Developer’s satisfaction of the preconditions to such payment stated herein, but only to the extent there are sufficient funds available in the City Acquisition Account. Except in the case of an Acquisition Improvement described in the first paragraph of this Section, the acquisition price to be paid from Bond proceeds for the acquisition of an Acquisition Improvement by the City shall be the least of (1) the value of the Acquisition Improvement; or (2) the total of the Actual Costs of the Acquisition Improvement.

As a condition to the payment of the acquisition price, the ownership of the completed Acquisition Improvement shall be transferred to the City by grant deed, bill of sale or such other documentation as the City may require free and clear of all taxes, liens, encumbrances, and assessments, but subject to any exceptions determined by the City to not interfere with the actual or intended use of the land or interest therein (including the lien of a community facilities district so long as the subject property is exempt from taxation or is otherwise not taxable by such community facilities district). Upon the transfer of ownership of Acquisition Improvement or any portion thereof to the City, the City shall be responsible for the maintenance of such Acquisition Improvement or the portion transferred. Notwithstanding the foregoing, the acquisition price of an Acquisition Improvement may be paid prior to transfer of ownership and acceptance of the Acquisition Improvement if it is substantially completed at the time of payment. The Acquisition Improvement shall be considered “substantially complete” when it has been reasonably determined by the City to be usable, subject to final completion of such items as the final lift or any other items not essential to the primary use or operation of the Acquisition Improvement. If the acquisition price of an Acquisition Improvement is paid prior to transfer of ownership and acceptance based on it being “substantially complete”, Developer may, upon transfer of ownership of such Acquisition Improvement to the City, submit a second reimbursement request for any unpaid portion of the Actual Costs associated with completing such improvement.

For purposes of determining the acquisition price to be paid by the Community Facilities District for the acquisition of an Acquisition Improvement by the City (other than Acquisition Improvements described in the first paragraph of this Section), the value of such Acquisition Improvement shall include the construction costs specified in the City-approved contracts and City-approved Change Orders conforming to Section 8.2, as hereinbefore specified. City 13 4910-1947-9414v4/022042-0051
approval is a condition prior to initiation of contract work. However, if the City reasonably determines that the additional Actual Costs are excessive and that the value of the Acquisition Improvement is less than the total amount of such Actual Costs and such construction costs, the acquisition price to be paid for the Acquisition Improvement shall be the value thereof as determined by the Engineer, subject, however, to the Developer’s right to appeal to the City Council.

Upon completion of the construction of an Acquisition Improvement, the Developer shall deliver or cause to be delivered to the City a Disbursement Request Form in substantially the form of Exhibit “D,” attached hereto, copies of the contract(s) with the contractor(s) who have constructed the Acquisition Improvement and other relevant documentation with regard to the payments made to such contractor(s) and each of them for the construction of the Acquisition Improvement, documentation evidencing payment of prevailing wages, and shall also provide to the City invoices and purchase orders with respect to all equipment, materials and labor purchased for the construction of the Acquisition Improvement. The City shall require the Engineer to complete its determination of the acquisition price of the Acquisition Improvement as promptly as is reasonably possible.

Notwithstanding the preceding provisions of this Section, the source of funds for the acquisition of the Acquisition Improvements or any portion thereof shall be funds in the City Acquisition Account. If for any reason beyond the City’s control the Bonds are not sold, the City shall not be required to acquire the Acquisition Improvements from the Developer, except to the extent of funds from the collection of Special Taxes. In such event, the Developer shall complete the design and construction and offer to the City ownership of such portions of the Acquisition Improvements as are required to be constructed by the Developer as a condition to recordation of subdivision maps for the Developer Property (but only at such times as required by such condition), but need not construct any portion of the Acquisition Improvements which it is not so required to construct. Reimbursement for these facilities would be made from the collection of Special Taxes.

In addition to the foregoing, the City shall have the right to withhold payment for acquisition of an Acquisition Improvement, if:
(a) the Developer or any of its affiliates is delinquent in the payment of any Special Taxes levied by the Community Facilities District on properties then owned by the Developer or any of its affiliates within the CFD, or
(b) the Developer is not then in substantial compliance with a condition or obligation imposed upon the Developer Property by the City, including but not limited to, payment of all applicable fees, dedication of all applicable rights-of-way or other property and construction requirements.

The City shall immediately provide written notice to the Developer of the decision to withhold any such payment and shall specify the reason for such decision. If the payment is withheld as a result of the delinquency in the payment of Special Taxes, the notice shall identify the delinquent parcels and the amount of such delinquency. If the payment is withheld as a result of substantial non-compliance with a condition or obligation, the notice shall specify such condition or obligation and what action will be necessary by the Developer to substantially comply with such condition or obligation. Upon receipt of evidence reasonably satisfactory to the City that the Developer has paid the delinquent Special Taxes or complied with the subject 14 4910-1947-9414v4/022042-0051
condition or obligation, the City shall forthwith make all payments which have been withheld pursuant to the provisions of this Section.

SECTION 12. EASEMENTS AND/OR FEE TITLE OWNERSHIP DEEDS
Without limiting the Developer’s rights to reimbursement for such grants pursuant to Section 11 above, the Developer shall, at the time the City acquires an Acquisition Improvement as provided in Section 11 hereof, grant or cause to be granted to the City, by appropriate instruments prescribed by the City, all easements across private property and/or fee title ownership deeds which may be reasonably necessary for the proper operation and maintenance of such Acquisition Improvement, or any part thereof, but only to the extent located within the Developer Property.

SECTION 13. PERMITS
The Developer shall be responsible for obtaining all necessary construction permits from the City and/or the County (as appropriate) covering construction and installation of the Acquisition Improvements. If applicable, the City will request the County to issue an “operate and maintain permit” to the City, which will become effective upon the completion of the Acquisition Improvements and acceptance of ownership therewith by the City.

SECTION 14. MAINTENANCE
Prior to the transfer of ownership of an Acquisition Improvement by the Developer to the City, as provided in Section 12 hereof, the Developer shall be responsible for the maintenance thereof and shall require its contractor(s) to repair all facilities damaged by any party other than the City, prior to acceptance by the City and/or make corrections determined to be necessary by the City’s inspection personnel. The City shall not be permitted to place any Acquisition Improvement in service prior to acceptance of the same, unless the Developer otherwise consents in writing.

SECTION 15. INSPECTION OF RECORDS
The City shall have the right to review all books and records of the Developer pertaining to the costs and expenses incurred by the Developer for the design and construction of the Acquisition Improvements during normal business hours by making arrangements with the Developer. The Developer shall have the right to review all books and records of the City pertaining to costs and expenses incurred by the City for services of the Engineer by making arrangements with the City.

SECTION 16. OWNERSHIP OF IMPROVEMENTS
Notwithstanding the fact that some or all of the Acquisition Improvements may be constructed in dedicated street rights-of-way or on property which has been or will be dedicated to the City, each Acquisition Improvement shall be and remain the property of the Developer until acquired by the City as provided in this Agreement. 15 4910-1947-9414v4/022042-0051
SECTION 17. MATERIALS AND WORKMANSHIP WARRANTY
The requirements of this Section shall not apply to any Acquisition Improvement that was complete (as determined by the City Council) prior to the adoption by the City Council of the resolution forming the CFD, but they shall apply to all other Acquisition Improvements.

Upon the completion of the acquisition of an Acquisition Improvement by the City, the performance bond related to such Acquisition Improvement provided by the Developer pursuant to Section 8.2 hereof, shall be reduced by 90%, and the remaining 10% shall serve as a maintenance bond to guarantee that such Acquisition Improvement will be free from defects due to faulty workmanship or materials for a period of one year.

SECTION 18. INDEPENDENT CONTRACTOR
In performing this Agreement, Developer is an independent contractor and not the agent of the City. The City shall not have any responsibility for payment to any contractor or supplier of Developer. It is not intended by the parties that this Agreement create a partnership or joint venture among them and this Agreement shall not otherwise be construed.

SECTION 19. INDEMNIFICATION
Developer shall assume the defense of, indemnify and hold harmless, the City, its officers, employees and agents, and the Community Facilities District, its officers, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subject or put, by reason of, or resulting from the Developer’s performance of its obligations under this Agreement, the issuance of the Bonds, the construction of the Acquisition Improvements, the failure of the Developer to provide notice of the special tax to be levied by the Community Facilities District pursuant to Section 53341.5 of the Act (but only if the Developer is required by law to provide such notice), or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the City, the Community Facilities District, the underwriter of the Bonds and its counsel, the appraiser, the special tax consultant, the market absorption consultant or bond counsel regarding the Developer, its proposed developments, its property ownership, and any contractual arrangement it may enter into in a disclosure document describing the Community Facilities District and the risks relating to the Bonds. No provision of this Agreement shall in any way limit the extent of Developer’s responsibility for payment of damages resulting from the operations of Developer and its contractors; provided, however that Developer shall not be required to assume the defense or indemnify and hold harmless the City, its officers, employees or agents, or the Community Facilities District, its officers, employees or agents, as to actions, damages, claims, losses or expenses resulting from negligence or willful misconduct of such person or entity.

SECTION 20. INSURANCE REQUIREMENTS
Neither the Developer nor its contractor shall commence work on a City Improvement under this Agreement prior to obtaining insurance with a company or companies acceptable to the City, nor shall the Developer’s contractor allow any subcontractor to commence work on its subcontract until all insurance required of the subcontractor has been obtained.

The Developer shall, during the life of this Agreement, notify the City in writing of any incident giving rise to any potential bodily injury or property damage claim and any resultant 16 4910-1947-9414v4/022042-0051
settlements, whether in conjunction with this or any other project which may affect the limits of the required coverage, as soon as is reasonable and practical.

SECTION 21. CONFLICT WITH OTHER AGREEMENTS
Except as specifically provided herein, nothing contained herein shall be construed as releasing Developer from any condition of development or requirement imposed by any other agreement with City. In the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by City. In addition, funding of the acquisition price of an Acquisition Improvement through the CFD shall not preclude the Developer’s receipt of, or entitlement to credit against any applicable City Fee.

SECTION 22. TERMINATION
The provisions of this Agreement related to the financing of the Improvements shall terminate and be of no further force or effect upon the earlier of (i) ten (10) years following the issuance of building permits for all dwelling units expected to be built within the Community Facilities District, (ii) the funding of all Improvements pursuant to this Agreement, or (iii) December 31, 2035. Notwithstanding the foregoing, this Agreement shall not terminate pursuant to (iii) of the previous sentence if, on December 31, 2035, all of the building permits within the Community Facilities District have been pulled, construction within the Community Facilities District, as contemplated by the parties hereto, is ongoing, and the Developer has not yet received a full return of all Deposits or full reimbursement for the Acquisition Improvements and EVMWD Facilities from Special Taxes. If the Community Facilities District is unable to sell the first series of Bonds after diligent, commercially reasonable efforts to do so, this Agreement shall terminate and be of no further force and effect.

Notwithstanding the foregoing, so long as the CFD has no outstanding debt or other financial obligations, the Developer may elect to terminate this Agreement upon written notice to the City and may request a notice of cessation of special tax be recorded against the Developer Property. Upon a finding by the City Council that the Special Tax is not required to be levied to satisfy the Special Tax Requirement (as defined in the Rate and Method) and all requirements to terminate the Special Tax under Section H of the Rate and Method have been satisfied or are no longer required, the City may: (i) record a notice of cessation of special tax in accordance with Section 53330.5 of the Act and (ii) the City Council will place on its next reasonably available agenda an ordinance to dissolve the CFD in accordance with Section 53338.5 of the Act. The Developer shall be responsible for reasonable City costs incurred relating to the dissolution of the CFD and recordation of required notices.

SECTION 23. NOTICES
Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid. Any notice to the Community Facilities District or the City shall be addressed to City of Lake Elsinore, 130 South Main Street, Lake Elsinore, CA 92530, Attention: City Manager. Any notice to Developer shall be addressed to KB Home Coastal, Inc., a California corporation, Attention: Scott Hansen, Vice President, Forward Planning.
17 4910-1947-9414v4/022042-0051
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party hereto.

SECTION 24. GENERAL PROVISIONS
(a) Amendment. This Agreement may be amended at any time but only in writing signed by each party hereto.
(b) Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
(c) Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. (d) Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other parties hereto, or the failure by a party to exercise its rights upon the default of another party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by such other parties with the terms of this Agreement thereafter.
(e) No Third Party Beneficiaries. Except as provided explicitly in this Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the Community Facilities District, and Developer (and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(f) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. (g) Assignment. Developer may assign all or any of its rights pursuant to this Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City and Developer, in a form reasonably acceptable to Developer and the City, whereby such rights assigned are specified and such purchaser agrees, except as may be otherwise specifically provided therein, to assume the obligations of Developer pursuant to this Agreement and to be bound thereby. (h) Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. (i) Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City and Developer and shall be deemed for all purposes to have been jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement.
(j) Attorneys’ Fees. In the event of any action or proceeding, including an arbitration or a reference pursuant to Section 638, et seq., of the Code of Civil Procedure brought by any Party against any other under this Agreement, the prevailing Party shall be 18 4910-1947-9414v4/022042-0051
entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation, or advice in such action or proceeding. In addition to the foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post-judgment proceedings to collect or enforce the judgment.

This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.
(k) Venue and Forum. Any action at law or in equity arising under this Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties waive all provisions of law providing for the filing, removal or change of venue to any other Court. (l) Entire Agreement. There are no oral or written representations, understandings, undertaking or agreements, which are not contained or expressly referred to herein, and any such representations, understandings or agreements are superseded by this Agreement. No evidence of any such representations, understandings or agreements shall be admissible in any proceeding of any kind or nature relating to the terms or conditions of this Agreement, its interpretation or breach.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

CITY OF LAKE ELSINORE, a political subdivision
of the State of California
By:

City Manager
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY OF THE CITY OF LAKE ELSINORE
By:

Barbara Z. Leibold, City Attorney
[SIGNATURES CONTINUED ON NEXT PAGE.]
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[SIGNATURE PAGE CONTINUED]
KB Home Coastal, Inc.
a California corporation
By:

Scott Hansen, Vice President, Forward Planning
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LIST OF EXHIBITS

EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY

EXHIBIT B - DESCRIPTION OF COST ESTIMATES

EXHIBIT C - DISBURSEMENT REQUEST FORM

EXHIBIT D - EVMWD FACILITIES
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EXHIBIT A

DESCRIPTION OF DEVELOPER PROPERTY

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

Riverside County Assessor Parcel Nos.:
378-040-004
378-040-005
378-040-006
378-040-007
378-040-012
389-180-001
389-180-002
389-190-002
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EXHIBIT B

DESCRIPTION OF CITY FEE FACILITY IMPROVEMENTS AND

ACQUISITION IMPROVEMENTS AND COST ESTIMATES
I. CITY FEE FACILITY IMPROVEMENTS.

City facilities included in the City’s development fee programs used to finance expansion projects, exclusive of in-tract facilities constructed by a property owner, but including and not limited to the following.

Estimated City Fees for the Project of the City Fee Facility Improvements Description Estimated Cost
General Drainage Fees (West Lake Elsinore $5,955 x 23 acres ) $ 136,965 General Drainage Fees (Nichols SW $6,080 x 128 acres) 778,240 Library Fees 60,300
City Hall & Public Works Facilities 325,218
Community Center Facilities 219,090
Marina Facilities 313,158
Animal Shelter Facilities 139,896
Fire Facilities 301,902
Traffic Impact Fee 550,338
Total Fees $ 2,825,107
II. ACQUISITION IMPROVEMENTS.

City Streets and Signals (Terracotta) $ 3,820,833
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EXHIBIT C
CFD NO. 2015-4 (TERRACINA)

OF THE CITY OF LAKE ELSINORE

DISBURSEMENT REQUEST FORM

1. Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “CFD”) is hereby requested to pay from the City Improvements Account, or any applicable account or sub-account thereof, established by the CFD in connection with its [20__] Special Tax Bonds (the “Bonds”) to City of Lake Elsinore (the “City”) as payee, the sum set forth below :
$_____________________ (the Requested Amount”)

2. The Requested Amount represents the payment of City Fees for ___ lot(s) within the boundaries of the CFD (the “Property”).
(Tract No. __________, Lot Nos. ________________).

3. The Requested Amount is due and payable, has not formed the basis of any prior request or disbursement.

4. The Requested Amount shall be payable to _______________ (the “Developer”), pursuant to the wiring instructions attached hereto.

5. The Requested Amount is authorized and payable pursuant to the terms of the certain Funding Agreement (the “Agreement”) between the City, acting for and on behalf of itself and the CFD and Developer.

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6. Capitalized undefined terms used herein shall have the meaning ascribed to them in the Agreement.

Dated: DEVELOPER:

KB Home Coastal, Inc.
a California corporation
By:

Name:

Title:

Dated: CITY OF LAKE ELSINORE
By:

Its:
[ATTACH WIRING INSTRUCTIONS]
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EXHIBIT D

DESCRIPTION AND COST ESTIMATES OF EVMWD FACILITIES
I. ELSINORE VALLEY MUNICIPAL WATER DISTRICT IMPROVEMENTS.

The construction, purchase, modification, expansion, rehabilitation and/or improvement of water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Water Facilities.

Estimated Cost of the Water District Improvements
Description Estimated Cost
Sewer Connection Fee (Net of Meter) $3,601,116
Water Connection Fee (Net of Meter) 6,335,520
Irrigation Meter (8 1.5" Meters) 419,104
Offsite Water Improvements (20" DIP Water Main - 2,600 LF) 946,916 Offsite Sewer Improvements (Nicole's Lift Station) 2,545,060 Total Fees $ 13,847,716
#225242 v2 9143.119

JOINT COMMUNITY FACILITIES AGREEMENT
by and among

CITY OF LAKE ELSINORE,

ELSINORE VALLEY MUNICIPAL WATER DISTRICT,
and
KB HOME COASTAL INC.

RELATING TO
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

OF THE CITY OF ELSINORE VALLEY
Dated ________________, 2025
#225242 v2 9143.119 i

TABLE OF CONTENTS
Page
ARTICLE I GENERAL PROVISIONS .................................................................................2 Section 1.1 Recitals ................................................................................................................2 Section 1.2 Definitions ...........................................................................................................2 ARTICLE II FORMATION OF CFD AND ISSUANCE OF BONDS ...................................3 Section 2.1 Formation of CFD No. 2015-4 ............................................................................3 Section 2.2 Issuance and Sale of Bonds .................................................................................3 Section 2.3 CFD Proceeds......................................................................................................4 Section 2.4 Responsibility for EVMWD Costs and Facilities ...............................................4 Section 2.5 Responsibility for Debt Service or Special Taxes...............................................6 Section 2.6 Administration of CFD No. 2015-4 ....................................................................6 ARTICLE III TERM AND TERMINATION ...........................................................................6 Section 3.1 Effective Date......................................................................................................6 Section 3.2 Termination .........................................................................................................6 ARTICLE IV ADDITIONAL GENERAL PROVISIONS........................................................6 Section 4.1 Recordkeeping: Inspection of Records...............................................................6 Section 4.2 Partial Invalidity ..................................................................................................7 Section 4.3 Successors and Assigns .......................................................................................7 Section 4.4 Indemnification ...................................................................................................7 Section 4.5 Notice ..................................................................................................................8 Section 4.6 Captions...............................................................................................................8 Section 4.7 Governing Law and Venue..................................................................................8 Section 4.8 Entire Agreement ................................................................................................9 Section 4.9 Amendments........................................................................................................9 Section 4.10 Waiver .................................................................................................................9 Section 4.11 Cooperation and Execution of Documents..........................................................9 Section 4.12 Attorneys’ Fees....................................................................................................9 Section 4.13 No Third Party Beneficiaries...............................................................................9 Section 4.14 Exhibits................................................................................................................9 Section 4.15 Signatories ...........................................................................................................9 Section 4.16 Execution in Counterparts ...................................................................................9 EXHIBIT “A” PROPERTY DESCRIPTION......................................................................A-1 EXHIBIT “B” WATER AND SEWER FACILITIES DESCRIPTION ..............................B-1 EXHIBIT “C” EVMWD ACQUISITION FACILITIES DESCRIPTION ..........................C-1 EXHIBIT “D” PAYMENT REQUEST FORM - WATER/SEWER FACILITIES ............D-1 EXHIBIT “E” PUBLIC WORKS PROVISIONS .......................................................................E-1 #225242 v2 9143.119 Page 1 of 18

JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG

CITY OF ELSINORE VALLEY,

ELSINORE VALLEY MUNICIPAL WATER DISTRICT,
AND
KB HOME COASTAL INC.
(Community Facilities District No. 2015-4 (Terracina) of the City of Lake Elsinore) This Joint Community Facilities Agreement (“Agreement”) is made and entered into as of the 11th day of December, 2025, by and among the Elsinore Valley Municipal Water District (a municipal water district organized under the laws of the State of California with its principal place of business at 31315 Chaney Street, Lake Elsinore, California 92530) (“EVMWD”), City of Lake Elsinore (a general law city organized and operating under the laws of the State of California with its principal place of business at 130 South Main Street, Lake Elsinore, California 92530 (“City”)), and KB HOME Coastal Inc. (a California corporation with its principal place of business at 36310 Inland Valley Drive #300, Wildomar, California 92595) (“Developer”)).

EVMWD, City, and Developer are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties”.

R E C I T A L S
A. Developer owns certain real property located within the boundaries of both the City and EVMWD, and designated as Tract Map No. 36557 (“Property”). The boundaries of the Property are identified in Exhibit “A” attached hereto. Developer has obtained entitlements to develop the Property with approximately 402 dwelling units (“Project”).

B. Development of the Project will require the payment of certain water and sewer service capacity and connection charges (“EVMWD Costs”), proceeds of which will be used by EVMWD to construct water and sewer facilities of EVMWD as further described herein (“EVMWD Facilities”) pursuant to the rules and regulations of EVMWD as amended from time to time (“EVMWD Rules and Regulations”). Developer may also construct water and sewer facilities of EVMWD, which are eligible to be acquired with Community Facilities District (“CFD”) proceeds as further described herein (“EVMWD Acquisition Facilities”); the costs of which, together with EVMWD Costs, may be paid from time to time from funds of hereinafter described CFD No. 2015-4 to the extent such funds are made available to finance EVMWD Facilities and EVMWD Acquisition Facilities.

C. Pursuant to actions of the City, the City has formed CFD No. 2015-4 pursuant to the provisions of the Act (as defined herein). The Parties herein have acknowledged and agreed that the City shall be solely responsible for the formation and administration of the CFD No. 2015- 4 and the costs thereof.

D. In accordance with Sections 53313.5 and 53316.2 of the Act, CFD No. 2015-4 may finance facilities to be owned or operated by EVMWD. It is the intention of the Parties that this Agreement shall constitute a “joint community facilities agreement” (“JCFA”) within the meaning of Section 53316.2 of the Act by and among the Parties pursuant to which CFD No. 2015-4 will be authorized to provide financing for the EVMWD Facilities and EVMWD Acquisition Facilities. #225242 v2 9143.119 Page 2 of 18
Pursuant to Section 53316.2(b) of the Act, a JCFA may be approved by two or more public agencies prior to the adoption of a resolution authorizing the issuance of bonds. As provided by Section 53316.6 of the Act, the EVMWD shall be responsible for constructing or otherwise acquiring, maintaining, and operating the EVMWD Facilities and EVMWD Acquisition Facilities.

E. The provision of the EVMWD Facilities and EVMWD Acquisition Facilities is necessitated by the Project; the Parties find and determine that the residents of the City, EVMWD, and CFD No. 2015-4 will be benefited by the financing of the EVMWD Facilities and the EVMWD Acquisition Facilities as set forth herein; and this Agreement is beneficial to the interests of such residents.

ARTICLE I

GENERAL PROVISIONS
Section 1.1 Recitals. The above recitals are true and correct, and are hereby incorporated by this reference.

Section 1.2 Definitions. Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311, et seq.
“Agreement” means this Joint Community Facilities Agreement. “Bond Resolution” means that Resolution, Resolution Supplement, Fiscal Agent Agreement, and/or other equivalent document(s) providing for the issuance of the Bonds.
“Bonds” shall mean those bonds or other securities issued by, or on behalf of, as authorized by the qualified electors within CFD No. 2015-4. “CFD No. 2015-4” means Community Facilities District No. 2015-4 (Terracina) of the City of Lake Elsinore.
“CFD Proceeds” shall mean those net funds generated by the sale of the Bonds or other securities issued on behalf of or for the benefit of CFD No. 2015-4, and Special Taxes made available to finance EVMWD Facilities and EVMWD Acquisition Facilities. “City Council” means the City Council of the City of Lake Elsinore. “EVMWD Acquisition Facilities” means those sewer and water facilities constructed by the Developer or anticipated to be constructed by the Developer, and eligible to be acquired with CFD Proceeds as described in Exhibit “C” hereto. #225242 v2 9143.119 Page 3 of 18
“EVMWD Facilities” means those public water and sewer facilities necessary to be funded by the EVMWD Costs as generally described in Exhibit “B” and which have not been previously funded with CFD Proceeds.
“EVMWD Facilities Fund” means the fund(s) or account(s) into which a portion of the CFD Proceeds may be deposited in accordance with the Bond Resolution for payment of EVMWD Costs applicable to the Property and for acquisition of the EVMWD Acquisition Facilities.
“Rate and Method” means the Rate and Method of Apportionment of the Special Tax authorized for levy and collection pursuant to proceedings undertaken for the formation of CFD No. 2015-4 pursuant to the Act.
“State” means the State of California.
“Special Taxes” means the special taxes authorized to be levied and collected pursuant to the final Rate and Method as approved by CFD No. 2015-4.

Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only; and shall be deemed to include the neuter, masculine, or feminine gender as appropriate.

Headings of sections herein are solely for convenience of reference; do not constitute a part hereof; and shall not affect the meaning, construction, or effect hereof.

All references herein to “Sections” and other subdivisions are to the corresponding Sections or subdivisions of this Agreement; and the words “herein,” “hereof,” “hereby,” “hereunder,” and other words of similar import refer to this Agreement as a whole and not to any particular Section or subdivision hereof.

ARTICLE II

FORMATION OF CFD AND ISSUANCE OF BONDS
Section 2.1 Formation of CFD No. 2015-4. The City has formed CFD No. 2015-4 and has authorized the Special Taxes and maximum indebtedness for CFD No. 2015-4.

Nothing contained herein shall be deemed to limit the discretion of the City in that regard.

Section 2.2 Issuance and Sale of Bonds. The City Council (acting as the Legislative Body of CFD No. 2015-4) may in its sole discretion in accordance with its adopted policies (“CFD Policies”) adopt the Bond Resolution and issue the Bonds. Prior to the sale of any series of Bonds in which it is anticipated that CFD Proceeds will be available to finance any EVMWD Costs or EVMWD Acquisition Facilities, the City shall consult with EVMWD to determine whether EVMWD is able to comply with tax-exempt regulations related to the expenditure of CFD Proceeds proposed to be allocated towards the EVMWD Facilities Fund. #225242 v2 9143.119 Page 4 of 18
Section 2.3 CFD Proceeds. Upon completion of the issuance of the Bonds and receipt of the CFD Proceeds, the City shall determine the amount of the CFD Proceeds allocable to finance the EVMWD Costs to be used by EVMWD to construct the EVMWD Facilities to accommodate development of the Property and the EVMWD Acquisition Facilities in accordance with the CFD Policies. CFD No. 2015-4 may pay the EVMWD Costs applicable to the Property directly to EVMWD, reimburse EVMWD for the EVMWD Costs paid by EVMWD, pay the acquisition price of EVMWD Acquisition Facilities, and/or reimburse the Developer for the EVMWD Costs if paid directly to EVMWD by such Developer or any owner of the Property as shall be coordinated with EVMWD and the Developer from time to time. EVMWD and/or the Developer shall use the Payment Request Form set forth as Exhibit “D”, which is attached hereto and incorporated herein by this reference to request payment of funds in the EVMWD Facilities Fund.

Section 2.4 Responsibility for EVMWD Costs and Facilities a. The Parties hereto acknowledge and agree that the final responsibility for the payment of the EVMWD Costs and the design, construction, and dedication of the EVMWD Acquisition Facilities constructed by the Developer; and the cost(s) of facilities required by EVMWD to be provided by the Developer to provide water and sewer service to the Project lies with the Developer as set forth in the exhibits hereto. The responsibility for and control of the design, construction, and completion of facilities required to provide water and sewer service to the Project constructed and completed by EVMWD lies with EVMWD.
b. If the amount derived from CFD Proceeds (including investment earnings thereon, if any) are not sufficient to fund the total cost of the EVMWD Costs or EVMWD Acquisition Facilities for the Project, the Parties hereto agree that all responsibility and liability for the amount of such shortfall(s) shall be and remain with the Developer and shall not lie with the City, CFD No. 2015-4, or EVMWD.
c. In addition to the EVMWD Costs referenced above, the Parties acknowledge that EVMWD may require the Developer (pursuant to the EVMWD Rules and Regulations) to design, construct, and dedicate certain facilities to EVMWD (including without limitation the EVMWD Acquisition Facilities) as a condition to providing water and sewer service to the Project. The Parties hereto agree and acknowledge that all responsibility and obligation for the design, construction, and dedication of such facilities to EVMWD (in accordance with all applicable statutes and the EVMWD Rules and Regulations) shall be and remain the responsibility of the Developer.
d. EVMWD and Developer acknowledge that Developer intends to construct the EVMWD Acquisition Facilities. In order to ensure that the EVMWD Acquisition Facilities are eligible for community facilities district financing:

1. The EVMWD Acquisition Facilities must be constructed as if under the supervision or direction of EVMWD. EVMWD shall supervise and direct the work pursuant to the Public Works Provisions set forth in Exhibit “E” (“Public Works Provisions”). #225242 v2 9143.119 Page 5 of 18

2. The acquisition purchase price for the EVMWD Acquisition Facilities will be equal the actual cost of construction of the EVMWD Acquisition Facilities, notwithstanding any estimates in this Agreement.

3. Developer may be constructing the EVMWD Acquisition
Facilities prior to the availability of CFD Proceeds that may be used to pay for such EVMWD Acquisition Facilities. Prior to the availability of CFD Proceeds, EVMWD will inspect the EVMWD Acquisition Facilities, approve the construction of the EVMWD Acquisition Facilities, and sign off on payment requests for costs incurred by the Developer upon satisfactory completion of the EVMWD Acquisition Facilities. Developer may convey the EVMWD Acquisition Facilities to EVMWD, and EVMWD may accept the EVMWD Acquisition Facilities in accordance with this Agreement, when there are insufficient CFD Proceeds to pay the purchase price of such EVMWD Acquisition Facilities. EVMWD will defer the payment of any approved payment requests for the construction costs of the EVMWD Acquisition Facilities until there are sufficient CFD Proceeds available to pay the purchase price of the EVMWD Acquisition Facilities, at which time EVMWD will make the payments but only out of the CFD Proceeds made available to EVMWD for such purpose. If the CFD Proceeds are not sufficient or made available to finance all or any part of the purchase price of the EVMWD Acquisition Facilities for whatever reason, EVMWD will not be responsible for paying the purchase price of the EVMWD Acquisition Facilities to Developer. The Developer will be constructing such EVMWD Acquisition Facilities with the expectation that the purchase price for the EVMWD Acquisition Facilities will be paid from the CFD Proceeds at all times, if and to the extent the CFD Proceeds are sufficient and available to pay the purchase price. Developer’s conveyance of the EVMWD Acquisition Facilities to EVMWD pursuant to this Agreement prior to receipt of all or any part of the purchase price shall not be construed as a dedication or gift, or a waiver of the payment of all or any part of the purchase price for the EVMWD Acquisition Facilities.

4. Notwithstanding any language in this Agreement to the contrary, Developer will pay the costs of the EVMWD Acquisition Facilities using its own funds; but with the expectation that the EVMWD Acquisition Facilities will be acquired by EVMWD using CFD Proceeds, if and to the extent the CFD Proceeds are sufficient and available to pay the purchase price.
e. EVMWD agrees to utilize or apply funds provided to it as set forth herein for the EVMWD Costs and/or EVMWD Acquisition Facilities. f. Should it be determined after the consultation described in Section

2.2 above that EVWMD is able to use CFD Proceeds in a manner that complies with tax-exempt regulations, EVMWD agrees that it will comply with the requirements set forth in this subsection (f). Such requirements are as follows:

1. EVMWD expressly acknowledges that the Bonds may be
subject to Federal tax requirements applicable to the tax-exempt securities. EVMWD expressly confirms and warrants to the City that the EVMWD Facilities financed hereunder have not been previously financed with the proceeds of other tax-exempt securities or bonds. EVMWD agrees to promptly provide written notice to the City of any such financing of EVMWD Facilities financed hereunder until the issuance of the Bonds.
#225242 v2 9143.119 Page 6 of 18

2. EVMWD agrees that in processing the disbursements of CFD Proceeds with respect to EVMWD Costs and/or EVMWD Acquisition Facilities, it will comply with all legal requirements for the expenditure of CFD Proceeds under the Act and the Internal Revenue Code of 1986 and any amendments thereto. As a condition to receiving any CFD Proceeds, EVMWD agrees that it shall provide to CFD No. 2015-4, a certificate to the effect that EVMWD agrees to comply with the provisions of the tax certificate delivered by CFD No. 2015- 4 in connection with the Bonds, and such other matters as CFD No. 2015-4 may reasonably request upon which CFD No. 2015-4 and its bond counsel may rely in connection with the issuance of such Bonds and their conclusion that interest on such Bonds is not included in gross income for Federal income tax purposes.

Section 2.5 Responsibility for Debt Service or Special Taxes. EVMWD’s obligations under this Agreement shall be limited to its obligations with respect to the design, construction, ownership, operation, and maintenance of the EVMWD Facilities to be funded by the EVMWD Costs; and EVMWD shall have no obligation, responsibility, or authority with respect to the issuance and sale of the Bonds (or the payment of the principal and interest thereon, or for the levy of the Special Taxes to provide for the payment of principal and interest thereon) and CFD No. 2015-4 shall have the sole authority and responsibility for all such matters. The Parties hereto specifically agree that the liabilities of CFD No. 2015-4 (including liabilities, if any, of CFD No. 2015-4 and pursuant to the documents providing for the issuance of Bonds including the Bond Resolution) shall not be or become liabilities of EVMWD.

Section 2.6 Administration of CFD No. 2015-4. The City shall have the power and duty to provide for the administration of CFD No. 2015-4 and once it is formed, including employing and compensating all consultants and providing for the various other administration duties set forth in this Agreement. It is understood and agreed by the Parties hereto that EVMWD will not be considered a participant in the proceedings relative to formation of CFD No. 2015-4 or the issuance of the Bonds, other than as a Party to this Agreement.

ARTICLE III

TERM AND TERMINATION
Section 3.1 Effective Date. This Agreement shall become effective and of full force and effect as of the date (“Effective Date”) this Agreement is approved and executed by the last of the Parties to be confirmed upon execution of this Agreement by the authorized representatives of the Parties.

Section 3.2 Termination. If the City is unable to complete the sale of the Bonds prior to January 1, 2039, this Agreement shall thereafter automatically terminate and be of no further force or effect.

ARTICLE IV

ADDITIONAL GENERAL PROVISIONS
Section 4.1 Recordkeeping: Inspection of Records. Each Party hereto agrees to keep and maintain full and accurate records of all amounts (and investment earnings, if any) paid to EVMWD for the EVMWD Facilities as to the respective portions of the Property and amounts #225242 v2 9143.119 Page 7 of 18
expended from the EVMWD Facilities Account. Each Party further agrees to make such records available to the other Party hereto during normal business hours upon reasonable prior notice. All such records shall be kept and maintained by the appropriate Party as provided by applicable law and their respective policies.

Section 4.2 Partial Invalidity. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

Section 4.3 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto. This Agreement may not be assigned without the prior written consent of the other Parties hereto, and any such non-consented assignment shall be void. Such assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the Parties in a form reasonably acceptable to the City EVMWD; and the Developer whereby such rights assigned are specified and such assignee agrees, except as may be otherwise specifically provided therein, to assume the obligations of the Developer pursuant to this Agreement and to be bound thereby. This Agreement is for the sole benefit of the Parties and their successors and assigns; and no other person or entity shall be deemed to be a beneficiary hereof or have an interest herein.

Section 4.4 Indemnification. The City shall assume the defense of, indemnify, and save harmless EVMWD (its officers, employees and agents, and each and every one of them) from and against all actions, damages, claims, losses, or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of the City with respect to this Agreement and the issuance of the Bonds. No provision of this Agreement shall in any way limit the extent of the City’s responsibility for payment of damages resulting from the operations of the City and its contractors; provided however that the City shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. EVMWD shall assume the defense of, indemnify, and save harmless the City (its officers, employees, and agents, and each and every one of them) from and against all actions, damages, claims, losses, or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of EVMWD with respect to this Agreement; and the design, engineering, and construction of the EVMWD Facilities. No provision of this Agreement shall in any way limit the extent of EVMWD’s responsibility for payment of damages resulting from the operations of EVMWD and its contractors; provided however that EVMWD shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. Developer shall assume the defense of, indemnify, and save harmless EVMWD and the City (each of their officers, employees, and agents, and each and every one of them) from and against all actions, damages, claims, losses, or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from, any act or omission of the Developer with respect to this Agreement; and the design, engineering, and construction of the EVMWD Facilities. No provision of this Agreement shall in any way limit the extent of the Developer’s responsibility for payment of damages resulting from the operations and/or development of the Property and its contractors; provided however that Developer shall not be required to indemnify any person or entity as to damages resulting from negligence or willful misconduct of such person or entity or their agents or employees. #225242 v2 9143.119 Page 8 of 18
Section 4.5 Notice. Any notice, payment, or instrument required or permitted by this Agreement to be given or delivered to any Party or other person shall be deemed to have been received (a) when personally delivered, (b) the next business day after deposit with a nationally recognized overnight courier service, (c) seventy-two (72) hours following deposit of the same in the United States Post Office registered or certified, postage prepaid, or (d) if given by electronic communication upon the sender’s receipt of an appropriate answerback or other written acknowledgement, addressed as follows:

City: City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Attention: City Manager
Telephone: [________]
Email: [_________]
EVMWD: Elsinore Valley Municipal Water District
31315 Chaney Street
Lake Elsinore, California 92530
Attention: Greg Thomas, General Manager
Telephone: (951) 674-3146
Email: [email protected]
Developer: KB HOME Coastal Inc.

Inland Empire Division
36310 Inland Valley Drive, Suite 300
Lake Elsinore, California 92595
Attention: Scott Hansen,
Vice President, Forward Planning
Telephone: (951) 691-5239
Email: [email protected]
Each Party can change its address for delivery of notice by delivering written notice of such change or address to the other parties within ten (10) calendar days prior to such change.

Section 4.6 Captions. The captions to Sections used herein are for convenience purposes only and are not part of this Agreement.

Section 4.7 Governing Law and Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and performed in such State. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in the County of Riverside, California; and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the Parties specifically agree to waive any and all rights to request that an action be transferred for trial to another county.
#225242 v2 9143.119 Page 9 of 18
Section 4.8 Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the matters provided for herein, and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement.

Section 4.9 Amendments. This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each of the Parties hereto.

Section 4.10 Waiver. The failure of any Party hereto to insist on compliance within any of the terms, covenants, or conditions of this Agreement by any other Party hereto shall not be deemed a waiver of such terms, covenants, or conditions of this Agreement by such other Party; nor shall any waiver constitute a relinquishment of any other right or power for any other times.

Section 4.11 Cooperation and Execution of Documents. The Parties hereto agree to complete and execute any further or additional documents which may be necessary to complete or further the terms of this Agreement.

Section 4.12 Attorneys’ Fees. In the event of the bringing of any action or suit by any Party against another Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the other Parties all costs and expenses of suit, including reasonable attorneys’ fees.

Section 4.13 No Third Party Beneficiaries. No person or entity other than the CFD No. 2015-4 when and if formed shall be deemed to be a third party beneficiary hereof; and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity other than EVMWD, the City, CFD No. 2015-4, and Developer (and their respective successors and assigns) any rights, remedies, obligations, or liabilities under or by reason of this Agreement.

Section 4.14 Exhibits. The following exhibits attached hereto are incorporated into this Agreement by reference.

Exhibit Description
“A” Property Description
“B” Water and Sewer Facilities Descriptions
“C” EVMWD Acquisition Facilities Description
“D” Payment Request Form – Water/Sewer Facilities
“E” Public Works Provisions
Section 4.15 Signatories. The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the party for whom they sign.

Section 4.16 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. [Remainder of this page is blank]
#225242 v2 9143.119 Page 10 of 18
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year written alongside their signature below.

EVMWD: ELSINORE VALLEY MUNICIPAL WATER DISTRICT
By:____________________________________
Name: Greg Thomas
Title: General Manager
Date Signed:

DEVELOPER: KB HOME COASTAL INC.,
a California corporation
By: _________________________________
Name: Scott Hansen
Title: Vice President Forward Planning
Date Signed:
[Joint Community Facilities Agreement Signature Page]
#225242 v2 9143.119 Page 11 of 18
City: CITY OF LAKE ELSINORE
By:

Name: Jason Simpson,
Title: City Manager
Date Signed:

ATTEST:

By:

Candice Alvarez, City Clerk
APPROVED AS TO FORM:

By:

Barbara Leibold, City Attorney
[Joint Community Facilities Agreement Signature Page]
#225242 v2 9143.119 A-1
EXHIBIT “A”

PROPERTY DESCRIPTION
Riverside County Assessor’s Parcel Nos.:
378-040-004 to 007
378-040-012
389-180-001 and 002
389-190-002
#225242 v2 9143.119 B-1
EXHIBIT “B”

WATER AND SEWER FACILITIES DESCRIPTION

1. Water source, storage, transmission facilities financed through EVMWD water connection and capacity fees and charges, including, but not limited to, water transmission lines, water reservoirs and related and appurtenant facilities. Further description(s) and cost(s) of these facilities are on file with EVMWD and are incorporated herein by this reference.

2. Sewer treatment, transmission and reclamation facilities financed through EVMWD sewer fees. Further description(s) and cost(s) of these facilities are on file with EVMWD and are incorporated herein by this reference.
#225242 v2 9143.119 C-1
EXHIBIT “C”

EVMWD ACQUISITION FACILITIES DESCRIPTION
Description of Acquisition Facilities:

1. Offsite Water Improvement – (20” DIP Water Main – 2,600 LF)

2. Offsite Sewer Improvement – (Nichols Road Lift Station) *The facilities listed above are preliminary in nature. The final description, scope, cost and location will be determined upon the preparation of final plans. #225242 v2 9143.119 D-1
EXHIBIT “D”

PAYMENT REQUEST FORM - WATER/SEWER FACILITIES
Community Facilities District No. 2015-4 (Terracina) of the City of Lake Elsinore is hereby requested to pay from the EVMWD Facilities Fund to the person, corporation, or other entity designated below as Payee, the sum set forth below such designation, in payment of the water/sewer Project Costs described below. The amount shown below is due and payable under a purchase order, contract or other authorization with respect to the water/sewer Project Costs described below and has not formed the basis of any prior request for payment.

Payee:

Address:

Amount: $
Project Costs Description:
(Include identification of lots or APN’s where request is made for fees) REQUESTING PARTY (check box)
[_] ELSINORE VALLEY MUNICIPAL

WATER DISTRICT
[_]
(Name of requesting party - please print)
Signature:

Name:

Title:

Date:
#225242 v2 9143.119 E-1
EXHIBIT “E”

PUBLIC WORKS PROVISIONS
In order to ensure that the EVMWD Acquisition Facilities will be constructed as if it had been constructed under the direction and supervision (or under the authority) of EVMWD so that they may be acquired pursuant to California Government Code Section 53313.5 (or so that the value or cost, whichever is less, of portions thereof constituting work in-kind may be reimbursed pursuant to California Government Code Section 53314.9 for the EVMWD Acquisition Facilities), the Developer shall comply with all of the following requirements or shall cause such requirements to be complied with:
(a) The Developer shall solicit and receive at least three independent bids; provided, however, the Developer may proceed with fewer than three bids if three bids were not reasonably available at the time of the bid.
(b) Bids shall be submitted to the Developer either via hard copy or email. (c) The contract for the construction of the EVMWD Acquisition Facilities shall be awarded to the responsible bidder submitting the lowest responsive bid for the construction of the EVMWD Acquisition Facilities or, if the Developer elects to perform the work pursuant to Section 53329.5 of the Act, the Developer shall perform the work at the prices specified in the bid of the lowest responsible bidder. If EVMWD reasonably disapproves any such contractor, the Developer will select the next lowest responsible bidder from the competitive bids received who is acceptable to the Developer and EVMWD.
(d) The Developer shall require, and the specifications and bid and contract documents shall require, all contractors engaged to perform work on the EVMWD Acquisition Facilities to pay prevailing wages and to otherwise comply with applicable provisions of the California Labor Code.
(e) The Developer and all such contractors shall comply with such other requirements relating to the construction of the EVMWD Acquisition Facilities as EVMWD may impose by written notification delivered to the Developer and each such contractor, to the extent required as a result of changes in applicable State or federal laws or the ordinances and policies of EVMWD. (f) The Developer shall provide proof to EVMWD, at such intervals and in such form as EVMWD may require, that the foregoing requirements have been satisfied as to all of the EVMWD Acquisition Facilities.

Stradling Yocca Carlson & Rauth
Draft of 11/19/25
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PRELIMINARY OFFICIAL STATEMENT DATED __________, 2025
NEW ISSUE—BOOK-ENTRY ONLY NO RATING
In the opinion of Stradling Yocca Carlson & Rauth LLP, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds described herein is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax. See the caption “TAX EXEMPTION” with respect to tax consequences relating to the Bonds, including with respect to the alternative minimum tax imposed on certain large corporations.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold, nor may offers to buy them be accepted, prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
$11,280,000*
COMMUNITY FACILITIES DISTRICT NO. 2015-4

OF THE CITY OF LAKE ELSINORE (TERRACINA)
SPECIAL TAX BONDS, SERIES 2026
Dated: Delivery Date Due: September 1, as shown on inside cover page The Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) Special Tax Bonds, Series 2026 (the “Bonds”) are being issued by Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”) to: (i) finance certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City and water and sewer facilities to be owned and operated by the Elsinore Valley Municipal Water District; (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds. The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Act”), and pursuant to that certain Bond Indenture, dated as of January 1, 2026 (the “Indenture”), by and between the District and Wilmington Trust, National Association, as trustee (the “Trustee”).

The Bonds are payable from Net Taxes (as defined herein) derived from a certain annual Special Tax (as defined herein) to be levied on taxable parcels within the District and from certain other funds pledged under the Indenture, all as further described herein. The Special Tax is to be levied according to the rate and method of apportionment approved by the City Council of the City and the qualified electors within the District. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes” and Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The Bonds will be issued in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Individual purchases of the Bonds may be made in principal amounts of $5,000 and integral multiples thereof and will be in book-entry form only. Purchasers of the Bonds will not receive certificates representing their beneficial ownership of the Bonds but will receive credit balances on the books of their respective nominees. The Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described herein. Interest on the Bonds will be payable on each March 1 and September 1, commencing March 1, 2026. Principal of and interest on the Bonds will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants, who will remit such payments to the Beneficial Owners of the Bonds.

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY OF RIVERSIDE, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE NET TAXES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL

OBLIGATIONS OF THE CITY OR GENERAL OBLIGATIONS OF THE DISTRICT BUT ARE LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM NET TAXES AND OTHER AMOUNTS HELD UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN.

The Bonds are subject to optional redemption, special mandatory redemption and mandatory sinking fund redemption prior to maturity as set forth herein. See the caption “THE BONDS — Redemption.”
Investment in the Bonds involves risks that are not appropriate for certain investors. Certain events could affect the ability of the District to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS” for a discussion of certain risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Bonds.

THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR GENERAL REFERENCE ONLY. IT IS NOT INTENDED TO BE A SUMMARY OF THE SECURITY OR TERMS OF THIS ISSUE. INVESTORS ARE ADVISED TO READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION.

MATURITY SCHEDULE
(See Inside Cover Page)
The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed on for the City and the District by Leibold, McClendon, & Mann, Irvine, California, City Attorney, and for the District by Stradling Yocca Carlson & Rauth LLP, Disclosure Counsel, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. It is anticipated that the Bonds in book-entry form will be available for delivery on or about January __, 2026.
[STIFEL LOGO]
Dated ________, 2026
*
Preliminary, subject to change.

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$11,280,000*

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)
SPECIAL TAX BONDS, SERIES 2026

MATURITY SCHEDULE
BASE CUSIP®† _________
$_______ Serial Bonds
Maturity Date
(September 1)
Principal
Amount Interest Rate Yield Price CUSIP No.†
$_____ ____% Term Bonds due September 1, 20__ Yield: ____% Price: _______ CUSIP No.† ____ $_____ ____% Term Bonds due September 1, 20__ Yield: ____% Price: _______ CUSIP No.† ____ * Preliminary, subject to change.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2025 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only.

None of the District, the City, the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers.

NG-U9ZQVMF2/4933-0339-0835v7/022042-0051

CITY OF LAKE ELSINORE

COUNTY OF RIVERSIDE, CALIFORNIA

CITY COUNCIL
Brian Tisdale, Mayor
Robert E. Magee, Mayor Pro Tem
Timothy J. Sheridan, Councilmember
Natasha Johnson, Councilmember
Steve Manos, Councilmember

CITY ADMINISTRATORS
Jason Simpson, City Manager
Shannon Buckley, Assistant City Manager

CITY ATTORNEY
Leibold, McClendon, & Mann
Irvine, California

BOND AND DISCLOSURE COUNSEL
Stradling Yocca Carlson & Rauth LLP
Newport Beach, California

MUNICIPAL ADVISOR
Urban Futures, Inc.

Walnut Creek, California

SPECIAL TAX CONSULTANT
Spicer Consulting Group, LLC
Murrieta, California

APPRAISER
Kitty Siino & Associates, Inc.

Tustin, California

TRUSTEE
Wilmington Trust, National Association
Costa Mesa, California
NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Except where otherwise indicated, all information contained in this Official Statement has been provided by the City and the District. No dealer, broker, salesperson or other person has been authorized by the City, the District, the Trustee or the Underwriter to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City, the District, the Trustee or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers or Owners of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.

The Underwriter has provided the following sentence for inclusion in this Official Statement:

The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City, the District or any other parties described herein since the date hereof. All summaries of the Indenture or other documents are made subject to the provisions of such documents respectively and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the City for further information in connection therewith.

THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as a “plan,” “expect,” “estimate,” “project,” “budget,” or similar words. Such forward-looking statements include, but are not limited to certain statements contained in the information under the captions “THE DISTRICT” and “PROPERTY OWNERSHIP AND THE DEVELOPMENT.”

THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH

FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND

OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS

DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE

DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD-LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. IN EVALUATING SUCH STATEMENTS,

POTENTIAL INVESTORS SHOULD SPECIFICALLY CONSIDER THE VARIOUS FACTORS WHICH COULD

CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS.

The City maintains a website. However, the information presented on such website is not part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. i
NG-U9ZQVMF2/4933-0339-0835v7/022042-0051

TABLE OF CONTENTS
Page
INTRODUCTION .................................................................................................................................................1 The District ........................................................................................................................................................1 Sources of Payment for the Bonds.....................................................................................................................3 Appraisal Report ................................................................................................................................................3 Description of the Bonds ...................................................................................................................................4 Tax Exemption...................................................................................................................................................4 Professionals Involved in the Offering ..............................................................................................................4 Continuing Disclosure .......................................................................................................................................5 Parity Bonds.......................................................................................................................................................5 Bond Owners’ Risks ..........................................................................................................................................5 Other Information ..............................................................................................................................................5 FINANCING PLAN ..............................................................................................................................................6 Estimated Sources and Uses of Funds ...............................................................................................................6 THE BONDS .........................................................................................................................................................6 General Provisions.............................................................................................................................................6 Debt Service Schedule .......................................................................................................................................8 Redemption........................................................................................................................................................8 Registration, Transfer and Exchange...............................................................................................................12 SOURCES OF PAYMENT FOR THE BONDS .................................................................................................12 Limited Obligations .........................................................................................................................................12 Special Taxes ...................................................................................................................................................13 Reserve Account of the Special Tax Fund.......................................................................................................20 No Teeter Plan .................................................................................................................................................20 Additional Parity Bonds...................................................................................................................................20 THE DISTRICT...................................................................................................................................................22 General Description of the District..................................................................................................................22 Authorized Uses of Bond Proceeds .................................................................................................................22 Appraisal Report ..............................................................................................................................................23 Estimated Appraised Value-to-Lien Ratios .....................................................................................................23 Direct and Overlapping Debt...........................................................................................................................27 Delinquency History ........................................................................................................................................29 PROPERTY OWNERSHIP AND THE DEVELOPMENT................................................................................29 General.............................................................................................................................................................29 Planned Development Within the District .......................................................................................................30 KB Home .........................................................................................................................................................32 SPECIAL RISK FACTORS ................................................................................................................................33 Risks of Real Estate Secured Investments Generally ......................................................................................33 Insufficiency of Special Tax Revenues............................................................................................................34 Impact of Economic Conditions on the Development in the District..............................................................35 Increasing Mortgage Interest Rates .................................................................................................................35 Concentration of Ownership............................................................................................................................35 Failure to Develop Properties ..........................................................................................................................36 Property Values................................................................................................................................................37 Natural Disasters..............................................................................................................................................37 Hazardous Substances......................................................................................................................................39 Enforcement Delays – Bankruptcy ..................................................................................................................40 Special Tax Delinquencies...............................................................................................................................40 ii
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FDIC/Federal Government Interests in Parcels ...............................................................................................40 Direct and Overlapping Indebtedness..............................................................................................................41 Payment of Special Taxes is not a Personal Obligation of the Property Owners............................................42 No Acceleration Provision...............................................................................................................................42 Limited Obligations .........................................................................................................................................42 Ballot Initiatives...............................................................................................................................................42 Proposition 218 ................................................................................................................................................43 Litigation with Respect to Community Facilities Districts .............................................................................43 Loss of Tax Exemption....................................................................................................................................44 No Ratings – Limited Secondary Market ........................................................................................................45 Limitations on Remedies .................................................................................................................................45 Potential Early Redemption of Bonds from Prepayments or Community Facilities District Bond Proceeds ....................................................................................................................................................45 Cybersecurity ...................................................................................................................................................45 CONTINUING DISCLOSURE...........................................................................................................................46 District Continuing Disclosure ........................................................................................................................46 Developer Continuing Disclosure....................................................................................................................46 TAX EXEMPTION .............................................................................................................................................47 LEGAL OPINION ...............................................................................................................................................49 ABSENCE OF LITIGATION .............................................................................................................................49 NO RATING........................................................................................................................................................49 UNDERWRITING ..............................................................................................................................................49 FINANCIAL INTERESTS..................................................................................................................................49 MUNICIPAL ADVISOR.....................................................................................................................................49 MISCELLANEOUS ............................................................................................................................................50 APPENDIX A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX .............................A-1 APPENDIX B CERTAIN ECONOMIC AND DEMOGRAPHIC INFORMATION ................................B-1 APPENDIX C FORM OF OPINION OF BOND COUNSEL ....................................................................C-1 APPENDIX D APPRAISAL REPORT.......................................................................................................D-1 APPENDIX E SUMMARY OF THE INDENTURE..................................................................................E-1 APPENDIX F FORM OF DISTRICT CONTINUING DISCLOSURE CERTIFICATE...........................F-1 APPENDIX G FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE.....................G-1 APPENDIX H BOOK-ENTRY ONLY SYSTEM......................................................................................H-1 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
[INSERT VICINITY MAP]
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[INSERT AERIAL PHOTOGRAPH]
1 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
$11,280,000*

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)
SPECIAL TAX BONDS, SERIES 2026

INTRODUCTION
The purpose of this Official Statement, which includes the cover page, the table of contents and the attached appendices (collectively, the “Official Statement”), is to provide certain information concerning the issuance by Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”) of its Special Tax Bonds, Series 2026 in the aggregate principal amount of $11,280,000* (the “Bonds”). The proceeds of the Bonds will be used to: (i) finance certain public improvements needed with respect to the development of property located within the District, including public improvements to be owned by the City of Lake Elsinore (the “City”), and water and sewer facilities to be owned and operated by the Elsinore Valley Municipal Water District; (ii) fund a reserve account for the Bonds; and (iii) pay costs of issuance for the Bonds.

The Bonds are authorized to be issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (Section 53311 et seq. of the Government Code of the State of California) (the “Act”), a resolution adopted on December 9, 2025, by the City Council of the City of Lake Elsinore (the “City”), acting as the legislative body of the District, and a Bond Indenture, dated as of January 1, 2026 (the “Indenture”), by and between the District and Wilmington Trust, National Association, as trustee (the “Trustee”). The Bonds are secured under the Indenture by a pledge of and lien upon Net Taxes (as such term is defined herein) and all moneys in the Special Tax Fund (other than the Administrative Expense Account therein) as described in the Indenture.

This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement.

The sale and delivery of Bonds to potential investors is made only by means of the entire Official Statement.

All capitalized terms used in this Official Statement and not defined have the meanings set forth in Appendix E.

The District
General. The City is located in the western portion of the County of Riverside (the “County”), California (the “State”). The District contains approximately 151 gross acres and is located in the City approximately one mile southwest of Interstate 15 along the east side of Terra Cotta Road north of Lakeshore Drive.

The property within the District is being developed by KB HOME Coastal, Inc., a California corporation (“KB Home”), into 402 single-family detached homes in a project being marketed as “Terracina.” KB Home is developing the District in two neighborhoods: “Carrera at Terracina” and “Villa Real at Terracina.” The Carrera neighborhood is planned to be developed into 224 single-family homes. The Villa Real neighborhood is planned to be developed into 178 single-family homes.

As of September 25, 2025, KB Home had completed and conveyed 182 homes within the District to individual homeowners. As of such date KB Home owned six model homes (none of which were in escrow), 42 production homes over 95 percent complete (22 of which were in escrow), 34 homes under construction (25 of which were in escrow) and 138 finished lots (18 of which were in escrow). Development has progressed since September 25, 2025, and as of November 1, 2025, KB Home had completed and conveyed 191 homes in *
Preliminary, subject to change.
2 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
the District to individual homeowners and KB home owned 211 lots. KB Home expects to complete and convey all remaining homes to be constructed in the District to individual homeowners by the end of June 2027.

The major infrastructure (sewer, water, storm drains, utilities, and arterial roads) necessary to develop the property within the District is substantially complete. The in-tract infrastructure within the District is also substantially complete with the exception of the in-tract sewer and water improvements in a 38 unit cul-de-sac area which is expected to be completed within the next two months. The finishing of certain streets and landscaping is also remaining. See the captions “THE DISTRICT” and “PROPERTY OWNERSHIP AND THE DEVELOPMENT” for further information with respect to the District, KB Home and development within the District.

Formation Proceedings. The District was formed on April 12, 2016 pursuant to the Act. The Act was enacted to provide an alternative method of financing certain public capital facilities and services, especially in developing areas of the State. Any local agency (as defined in the Act) may establish a community facilities district to provide for and finance the cost of eligible public facilities and services. Generally, the legislative body of the local agency which forms a community facilities district acts on behalf of such district as its legislative body. Subject to approval by two-thirds of the votes cast at an election and compliance with the other provisions of the Act, a legislative body of a local agency may issue bonds for a community facilities district and may levy and collect a special tax within such district to repay such indebtedness.

Pursuant to the Act, on March 8, 2016, the City Council adopted Resolution No. 2016-023 (the “Resolution of Intention”), stating its intention to form the District and to authorize the levy of a special tax on the taxable property within the District, and Resolution No. 2016-024, stating its intention to incur bonded indebtedness in an aggregate principal amount not to exceed $20,000,000 for the purpose of financing the purchase, construction, expansion or rehabilitation of certain public facilities to serve the area within the District.

Subsequent to a noticed public hearing on April 12, 2016, the City Council adopted Resolution Nos. 2016-037 and 2016-038 on April 12, 2016 (collectively the “Resolution of Formation”). The Resolution of Formation: (i) established the District; (ii) authorized the levy of a special tax (the “Special Tax”) within the District; (iii) determined the necessity to incur bonded indebtedness in an amount not to exceed $20,000,000 within the District; and (iv) called an election within the District on the proposition of incurring bonded indebtedness, levying the Special Tax and setting an appropriations limit.

On April 12, 2016, an election was held within the District in which the property owner within the District approved the proposition authorizing the issuance of bonds in an amount not to exceed $20,000,000. A Notice of Special Tax Lien for the District was recorded in the office of the County Recorder on April 22, 2016, as Document No. 2016-0160277.

Subsequent to the formation of the District as described above, pursuant to a petition signed by the property owner in the District, on January 25, 2022, the City Council, acting as the legislative body of the District, adopted Resolution No. 2022-8 declaring its intention to consider amending the rate and method of apportionment of special tax for the District approved at the April 12, 2016 special election (the “Change Proceedings”).

Subsequent to a noticed public hearing on March 8, 2022, the City Council, acting as the legislative body of the District, adopted Resolution No. 2022-25 approving an amended rate and method of apportionment of special tax for the District (the “Rate and Method”) and called an election within the District on the proposition of levying the special taxes in accordance with the Rate and Method and the other matters included within the Change Proceedings, which was approved by the property owner within the District. A copy of the Rate and Method is attached hereto as Appendix A. An Amended Notice of Special Tax Lien for the District was recorded in the office of the County Recorder on March 21, 2022, as Document No. 2022-0135181. 3 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
On March 22, 2022, the City Council adopted Ordinance No. 2022-1468 (the “Ordinance”) which authorizes the levy of a special tax pursuant to the Rate and Method approved at the March 8, 2022 election.

Sources of Payment for the Bonds
Special Taxes. As used in this Official Statement, the term “Special Tax” means the annual Special Tax which has been authorized pursuant to the Act and the Rate and Method to be levied upon taxable property within the District. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes” and Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” See the caption “THE DISTRICT.”
Under the Indenture, the District has pledged to repay the Bonds and any Parity Bonds (as defined herein) from the Special Tax revenues remaining after the payment of certain annual Administrative Expenses of the District (the “Net Taxes”) and from other amounts in the Special Tax Fund (other than the Administrative Expense Account therein) established under the Indenture. The Special Taxes are the primary source of security for the repayment of the Bonds and any Parity Bonds. In the event that the Special Taxes are not paid when due, the only sources of funds available to pay the debt service on the Bonds and any Parity Bonds are amounts held by the Trustee in the Special Tax Fund, including amounts held in the Reserve Account therein, to the limited extent described in the Indenture. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Reserve Account of the Special Tax Fund.”
Foreclosure Proceeds. The District will covenant in the Indenture for the benefit of the owners of the Bonds and Parity Bonds that it will: (i) commence judicial foreclosure proceedings against parcels with delinquent Special Taxes in excess of $5,000 by the October 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied; and (iii) diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided that, notwithstanding the foregoing, the District may elect to defer foreclosure proceedings on any parcel so long as the amount in the Reserve Account is at least equal to the Reserve Requirement. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” There is no assurance that the property within the District can be sold for the appraised or assessed values described herein, or for a price sufficient to pay the principal of and interest on the Bonds in the event of a default in payment of Special Taxes by the current or future landowners within the District. See the caption “SPECIAL RISK FACTORS — Property Values.”

EXCEPT FOR THE NET TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY

OR GENERAL OBLIGATIONS OF THE DISTRICT, BUT ARE LIMITED OBLIGATIONS OF THE

DISTRICT PAYABLE SOLELY FROM NET TAXES AND AMOUNTS HELD UNDER THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN.

Appraisal Report
Kitty Siino & Associates, Inc. (the “Appraiser”) has conducted an Appraisal (the “Appraisal Report”) with a date of value of September 25, 2025 (the “Date of Value”) of certain land and existing improvements within the District to provide an estimate of the market value of the fee simple interest of such land and improvements. The Appraisal Report provides an estimate of the approximate market value of the “as-is” condition of the property in the District subject to the levy of Special Taxes, assuming that development of the property as currently planned will consist of 402 residential units. Based on the contingencies, assumptions and limiting conditions in the Appraisal Report, the Appraiser concluded that the minimum market value of all of the parcels within the District subject to the Special Tax was $155,374,399 as of the Date of Value. 4 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
The Appraisal Report is based upon a variety of assumptions and limiting conditions that are described in APPENDIX D. The District makes no representation as to the accuracy of the Appraisal Report. See “THE DISTRICT — Appraisal Report” and “— Estimated Appraised Value-to-Lien Ratios.” There is no assurance that property within the District can be sold for the prices set forth in the Appraisal Report or that any parcel can be sold for a price sufficient to pay the Special Tax for that parcel in the event of a default in payment of Special Taxes by a property owner. See “THE DISTRICT,” “SPECIAL RISK FACTORS — Property Values” herein and APPENDIX D.

Description of the Bonds
The Bonds will be issued and delivered as fully registered Bonds, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”), and will be available to actual purchasers of the Bonds (the “Beneficial Owners”) in the denominations of $5,000 or any integral multiple thereof, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. In the event that the book-entry only system described herein is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Indenture. See Appendix H — “BOOK-ENTRY ONLY SYSTEM.”
Principal of, premium, if any, and interest on the Bonds is payable by the Trustee to DTC. Disbursement of such payments to DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants. See Appendix H — “BOOK-ENTRY ONLY SYSTEM.”
The Bonds are subject to optional redemption, special mandatory redemption and mandatory sinking fund redemption prior to maturity as described herein. See the caption “THE BONDS — Redemption.” For a more complete description of the Bonds and the basic documentation pursuant to which they are being sold and delivered, see the caption “THE BONDS” and Appendix E — “SUMMARY OF THE INDENTURE.” Tax Exemption
In the opinion of Stradling Yocca Carlson & Rauth LLP, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds described herein is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax. See the caption “TAX EXEMPTION” with respect to tax consequences relating to the Bonds, including with respect to the alternative minimum tax imposed on certain large corporations.

Set forth in Appendix C is the form of opinion of Bond Counsel expected to be delivered in connection with the issuance of the Bonds. For a more complete discussion of such opinion and certain tax consequences incident to the ownership of the Bonds, see the caption “TAX EXEMPTION.” Professionals Involved in the Offering
Wilmington Trust, National Association, Costa Mesa, California, will act as Trustee under the Indenture. Stifel, Nicolaus & Company, Incorporated (the “Underwriter”) is the Underwriter of the Bonds.

Certain proceedings in connection with the issuance and delivery of the Bonds are subject to the approval of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel and Disclosure Counsel to the District in connection with the issuance of the Bonds. Certain legal matters will be passed on for the City and the District by Leibold, McClendon, & Mann, Irvine, California, City Attorney, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. Other professional services have been 5 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
performed by Spicer Consulting Group, LLC, Murrieta, California, as Special Tax Consultant (the “Special Tax Consultant”), Urban Futures, Inc., Walnut Creek, California, as Municipal Advisor, and by Kitty Siino & Associates, Tustin, California, as Appraiser.

For information concerning circumstances in which certain of the above-mentioned professionals, advisors, counsel and consultants may have a financial or other interest in the offering of the Bonds, see the caption “FINANCIAL INTERESTS.”
Continuing Disclosure
Pursuant to a Continuing Disclosure Certificate to be executed by the District (the “District Continuing Disclosure Certificate”), the District will agree to provide, or cause to be provided, to the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system (“EMMA”), maintained on the Internet at http://emma.msrb.org, certain annual financial information and operating data and notices of certain enumerated events. These covenants are being made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2-12 adopted by the Securities and Exchange Commission (“Rule 15c2-12”).

The Underwriter does not consider KB Home to be an “obligated person” with respect to the Bonds for purposes of the Rule. Notwithstanding the foregoing, to assist in the marketing of the Bonds, KB Home will agree to provide, or cause to be provided to EMMA, certain updates with respect to the development within the District and notices of certain enumerated events. See Appendix G for a description of the specific nature of the semiannual reports and enumerated event notices to be filed by KB Home.

See “CONTINUING DISCLOSURE,” Appendix F — “FORM OF DISTRICT CONTINUING DISCLOSURE CERTIFICATE” and Appendix G — “FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE.”
Parity Bonds
Under the Indenture, the District may issue additional indebtedness secured by the Net Taxes on a parity with the Bonds (“Parity Bonds”) to finance additional Project Costs or for refunding all or a portion of the Bonds or Parity Bonds. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Additional Parity Bonds.” Other taxes and/or special assessments with liens equal in priority to the continuing lien of the Special Taxes may also be levied in the future on the property within the District, which could adversely affect the willingness of the landowners to pay the Special Taxes when due. See the captions “THE DISTRICT — Direct and Overlapping Debt” and “SPECIAL RISK FACTORS — Direct and Overlapping Indebtedness.” Bond Owners’ Risks
Certain events could affect the ability of the District to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS” for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in evaluating an investment in the Bonds. The purchase of the Bonds involves risks, and the Bonds may not be appropriate investments for some types of investors.

Other Information
This Official Statement speaks only as of its date, and the information contained herein is subject to change.

Brief descriptions of the Bonds and the Indenture are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Indenture, the Bonds and the Constitution and laws of the State, as well as the proceedings of the City Council, acting as the legislative body of the District, are qualified in their entirety by references to such documents, laws 6 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
and proceedings, and with respect to the Bonds, by reference to the Indenture. Capitalized terms not otherwise defined in this Official Statement have the meanings set forth in Appendix E.

Copies of the Indenture and other documents and information are available for inspection and copies may be obtained from the City, 130 S. Main Street, Lake Elsinore, California, 92530, Attention: City Clerk.

FINANCING PLAN
Estimated Sources and Uses of Funds
The following table sets forth the expected sources and uses of Bond proceeds and certain other funds on hand.

Sources of Funds
Principal Amount of Bonds
[Less/Plus]: [Net] Original Issue [Discount/Premium]
Total Sources
Uses of Funds:

Acquisition and Construction Fund
Reserve Account
Cost of Issuance(1)
Total Uses
(1) To pay costs of issuance of the Bonds, including legal fees, underwriter’s discount, printing costs, Appraiser, Special Tax Consultant and Trustee fees.

THE BONDS
General Provisions
The Bonds will be dated their date of delivery and will bear interest at the rates per annum set forth on the inside cover page hereof, payable semiannually on each March 1 and September 1, commencing March 1, 2026 (each, an “Interest Payment Date”), and will mature in the amounts and on the dates set forth on the inside cover page of this Official Statement. Interest will be calculated on the basis of a 360-day year comprised of twelve 30-day months. The Bonds will be issued in fully registered form in denominations of $5,000 or any integral multiple thereof.

Interest on any Bond will be payable from the Interest Payment Date next preceding the date of authentication of such Bond, unless: (i) such date of authentication is an Interest Payment Date, in which event interest will be payable from such date of authentication; (ii) the date of authentication is after the fifteenth day of the month preceding an Interest Payment Date, regardless of whether such day is a Business Day (each, a “Record Date”) but prior to the immediately succeeding Interest Payment Date, in which event interest will be payable from the Interest Payment Date immediately succeeding the date of authentication; or (iii) the date of authentication is prior to the close of business on the first Record Date occurring after the issuance of such Bond, in which event interest will be payable from the dated date of such Bond, as applicable; provided, however, that if at the time of authentication of such Bond, interest is in default, interest on such Bond will be payable from the last Interest Payment Date to which the interest has been paid or made available for payment or, if no interest has been paid or made available for payment on such Bond, interest on such Bond will be payable from its dated date.

Interest on any Bond will be paid to the person whose name appears as its owner in the registration books held by the Trustee on the close of business on the Record Date. Principal of, premium, if any, due upon 7 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
redemption is payable upon presentation and surrender of the Bonds at the principal corporate trust office of the Trustee in Costa Mesa, California.

The Bonds will be issued as fully registered bonds and will be registered in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Bonds. Ownership interests in the Bonds may be purchased in book-entry form only in denominations of $5,000 and any integral multiple thereof. So long as DTC is the securities depository all payments of principal and interest on the Bonds will be made to DTC and will be paid to the Beneficial Owners in accordance with DTC’s procedures and the procedures of DTC’s Participants. See APPENDIX H — “BOOK-ENTRY-ONLY SYSTEM.” In the event the Bonds are not held in book-entry form, interest will be paid by check of the Trustee mailed by first class mail, postage prepaid, to the Bondowner at its address on the registration books kept by the Trustee. Pursuant to a written request prior to the Record Date of a Bondowner of at least $1,000,000 in aggregate principal amount of Bonds or of any issue of Parity Bonds, payment will be made by wire transfer in immediately available funds to a designated account in the United States. [Remainder of Page Intentionally Left Blank]
8 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Debt Service Schedule
The following table presents the annual debt service on the Bonds (including sinking fund redemptions), assuming that there are no optional or special mandatory redemptions. See the caption “—Redemption” below.

Year Ending
September 1 Principal Interest Total Debt Service
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
Total
Redemption*
Optional Redemption. The Bonds may be redeemed at the option of the District from any source of funds on any Interest Payment Date on or after September 1, 20__, in whole or in part, from such maturities as are selected by the District and by lot within a maturity, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the date of redemption:
*
Preliminary, subject to change.
9 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Redemption Date Redemption Price
103%
102
101
100
In the event that the District elects to redeem Bonds as provided above, the District will give written notice to the Trustee of its election to so redeem, the redemption date and the principal amount of the Bonds of each maturity to be redeemed. The notice to the Trustee will be given at least 45 but no more than 60 calendar days prior to the redemption date, or by such later date as is acceptable to the Trustee.

Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20__ Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed 20__ Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
$
*
* Maturity.

The Bonds maturing on September 1, 20__ (the “20__ Term Bonds”) will be called before maturity and redeemed, from the Sinking Fund Payments that have been deposited into the Redemption Account established under the Indenture, on September 1, 20__, and on each September 1 thereafter prior to maturity, in accordance with the schedule of Sinking Fund Payments set forth below. The 20__ Term Bonds so called for redemption will be selected by the Trustee by lot and will be redeemed at a redemption price for each redeemed 20__ Term Bond equal to the principal amount thereof, plus accrued interest to the redemption date, without premium, as follows:

Term Bonds Maturing September 1, 20__
Sinking Fund Redemption Date
(September 1) Sinking Fund Payments
$
*
* Maturity.
10 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
If the District purchases Term Bonds during the Fiscal Year immediately preceding one of the sinking fund redemption dates specified above, the District will notify the Trustee at least 45 days prior to the redemption date as to the principal amount purchased, and the amount purchased will be credited at the time of purchase to the next Sinking Fund Payment for the Term Bond so purchased, to the extent of the full principal amount of the purchase. All Term Bonds purchased will be cancelled pursuant to the Indenture.

In the event of a partial optional redemption or special mandatory redemption of the Term Bonds, each of the remaining Sinking Fund Payments for such Term Bonds will be reduced, as nearly as practicable, on a pro rata basis.

Special Mandatory Redemption from Special Tax Prepayments. The Bonds are subject to special mandatory redemption as a whole or in part on a pro rata basis among maturities and by lot within a maturity, on any Interest Payment Date on or after March 1, 2026, and will be redeemed by the Trustee, from any amounts paid by the District to the Trustee and designated by the District as a prepayment of Special Taxes for one or more parcels in the District made in accordance with the Rate and Method (the “Prepayments”) deposited to the Redemption Account pursuant to the Indenture, plus amounts transferred from the Reserve Account pursuant to the Indenture, at the following redemption prices, expressed as a percentage of the principal amount to be redeemed, together with accrued interest to the redemption date:

Redemption Date Redemption Price
103%
102
101
100
Prepayments and amounts released from the Reserve Account in connection with Prepayments will be allocated to the payment at maturity and redemption of Bonds and any Parity Bonds as nearly as practicable on a proportionate basis based on the outstanding principal amount of the Bonds and any Parity Bonds and such amounts shall be applied to redeem Bonds and Parity Bonds as nearly as practicable on a pro rata basis among maturities in increments of $5,000; provided, however, that, for Prepayments of less than $50,000, the District may specify in a Certificate of an Authorized Representative that Prepayments be applied to one or more maturities of the Bonds or Parity Bonds so long as there is delivered to the Trustee a Certificate of the Independent Financial Consultant that, following such application of the Prepayments, the maximum Special Taxes that may be levied in each Fiscal Year on Taxable Property is not less than 110% of Annual Debt Service in the Bond Year that begins in such Fiscal Yer.

See the caption “SPECIAL RISK FACTORS — Potential Early Redemption of Bonds from Prepayments or Community Facilities District Bond Proceeds” for a discussion of the potential for a lower than expected yield on the Bonds as a result of a special mandatory redemption from prepayment of Special Taxes or proceeds of bonds of other community facilities districts.

Notice of Redemption. So long as the Bonds are held in book-entry form, notice of redemption will be sent by the Trustee to DTC and not to the Beneficial Owners of the Bonds under the DTC book-entry only system. Neither the District nor the Trustee is responsible for notifying the Beneficial Owners, who are to be notified in accordance with the procedures in effect for the DTC book-entry system. See Appendix H — “BOOK-ENTRY ONLY SYSTEM.”
The Trustee will give notice, in the name of the District, of the redemption of Bonds. Such notice of redemption will: (i) specify the CUSIP numbers (if any), the bond numbers and the maturity date or dates of the Bonds selected for redemption, except that where all of the Bonds are subject to redemption, or all of the Bonds of one maturity are to be redeemed, the bond numbers of such issue need not be specified; (ii) state the date fixed for redemption and surrender of the Bonds to be redeemed; (iii) state the redemption price; (iv) state the place or places where the Bonds are to be redeemed; (v) in the case of Bonds to be redeemed only in part, state the 11 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
portion of such Bond which is to be redeemed; (vi) state the date of issue of the Bonds as originally issued; (vii) state the rate of interest borne by each Bond being redeemed; and (viii) state any other descriptive information needed to identify accurately the Bonds being redeemed as specified by the Trustee. Such notice will further state that on the date fixed for redemption, there will become due and payable on each Bond, or portion thereof called for redemption, the principal thereof, together with any premium, and interest accrued to the redemption date, and that from and after such date, interest thereon will cease to accrue and be payable. At least 30 days but no more than 45 days prior to the redemption date, the Trustee will mail a copy of such notice of redemption, by first class mail, postage prepaid, to the respective Owners thereof at their addresses appearing on the Bond Register, and to the original purchaser of any Bonds; provided, however, so long as the Bonds are registered in the name of the Nominee, such notice shall be given in such manner as complies with the requirements of the Depository. The actual receipt by the Owner of any Bond of notice of such redemption is not a condition precedent to redemption, and neither the failure to receive nor any defect in such notice will affect the validity of the proceedings for the redemption of such Bonds, or the cessation of interest on the redemption date. A certificate by the Trustee that notice of such redemption has been given as provided in the Indenture will be conclusive as against all parties and the Owner is not entitled to show that he or she failed to receive notice of such redemption.

In addition to the foregoing notice, further notice will be given by the Trustee as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice will in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed.

Each further notice of redemption will be sent not later than the date that notice of redemption is given to the Owners pursuant to the Indenture by first class mail or facsimile to the Depository and to any other registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds as determined by the Trustee and to one or more of the national information services that the Trustee determines are in the business of disseminating notice of redemption of obligations such as the Bonds.

Upon the payment of the redemption price of any Bonds being redeemed, each check or other transfer of funds issued for such purpose will to the extent practicable bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.

With respect to any notice of optional redemption of Bonds, such notice may state that such redemption is conditional upon the receipt by the Trustee on or prior to the date fixed for such redemption of moneys sufficient to pay the principal of, premium, if any, and interest on such Bonds to be redeemed and that, if the District determines that such moneys will not be received on the redemption date, said notice will be of no force and effect and the Trustee will not be required to redeem such Bonds. In the event that such notice of redemption contains such a condition and the District determines that such moneys are not so received, the redemption will not be made, and the Trustee will within a reasonable time thereafter give notice, in the manner in which the notice of redemption was given, that such moneys were not so received.

Selection of Bonds for Redemption. If less than all of the Bonds Outstanding are to be redeemed, the portion of any Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of $5,000 or an integral multiple thereof. In selecting portions of such Bonds for redemption, the Trustee will treat such Bonds, as applicable, as representing that number of Bonds of $5,000 denominations which is obtained by dividing the principal amount of such Bonds to be redeemed in part by $5,000. The procedure for the selection of Parity Bonds for redemption may be modified as set forth in the Supplemental Indenture for such Parity Bonds. The Trustee will promptly notify the District in writing of the Bonds, or portions thereof, selected for redemption.

Partial Redemption of Bonds. Upon surrender of any Bond to be redeemed in part only, the District will execute and the Trustee will authenticate and deliver to the Owner, at the expense of the District, a new 12 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Bond or Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered, with the same interest rate and the same maturity.

Effect of Notice and Availability of Redemption Money. Notice of redemption having been duly given, as provided in the Indenture, and the amount necessary for the redemption having been made available for that purpose and being available therefor on the date fixed for such redemption: (i) the Bonds, or portions thereof, designated for redemption will, on the date fixed for redemption, become due and payable at the redemption price thereof as provided in the Indenture, anything in the Indenture or in the Bonds to the contrary notwithstanding; (ii) upon presentation and surrender thereof at the office of the Trustee, the redemption price of such Bonds will be paid to the Owners thereof; (iii) as of the redemption date the Bonds, or portions thereof so designated for redemption will be deemed to be no longer Outstanding and such Bonds, or portions thereof, will cease to bear further interest; and (iv) as of the date fixed for redemption no Owner of any of the Bonds, or portions thereof so designated for redemption will be entitled to any of the benefits of the Indenture, or to any other rights, except with respect to payment of the redemption price and interest accrued to the redemption date from the amounts so made available.

Registration, Transfer and Exchange
Registration. The Trustee will keep sufficient books for the registration and transfer of the Bonds. The ownership of the Bonds will be established by the Bond registration books held by the Trustee.

Transfer or Exchange. Subject to the limitations set forth in the following paragraph, the registration of any Bond may, in accordance with its terms, be transferred upon the Bond Register by the person in whose name it is registered, in person or by his or her duly authorized attorney, upon surrender of such Bond for cancellation at the office of the Trustee, accompanied by delivery of written instrument of transfer in a form acceptable to the Trustee and duly executed by the Owner or his or her duly authorized attorney.

Bonds may be exchanged at the office of the Trustee for a like aggregate principal amount of Bonds for other authorized denominations of the same maturity and issue. The Trustee may not collect from the Owner any charge for any new Bond issued upon any exchange or transfer, but will require the Owner requesting such exchange or transfer to pay any tax or other governmental charge required to be paid with respect to such exchange or transfer. Whenever any Bonds are surrendered for registration of transfer or exchange, the District will execute and the Trustee will authenticate and deliver a new Bond or Bonds, as applicable, of the same issue and maturity, for a like aggregate principal amount; provided that the Trustee is not required to register transfers or make exchanges of: (i) Bonds for a period of 15 days next preceding any selection of the Bonds to be redeemed; or (ii) any Bonds chosen for redemption.

SOURCES OF PAYMENT FOR THE BONDS
Limited Obligations
The Bonds are special, limited obligations of the District payable only from amounts pledged under the Indenture and from no other sources.

The Special Taxes are the primary source of security for the repayment of the Bonds. Under the Indenture, the District has pledged to repay the Bonds from the Net Taxes (which are Special Tax revenues remaining after the payment of the annual Administrative Expenses in an amount not to exceed the Administrative Expenses Cap (as defined in the Indenture)) and from amounts held in the Special Tax Fund (other than amounts held in the Administrative Expense Account therein). Special Tax revenues include the proceeds of the annual Special Tax levy received by the District, including any scheduled payments and Prepayments thereof, and the net proceeds of the redemption of delinquent Special Taxes or sale of property sold as a result of foreclosure of the lien of delinquent Special Taxes to the amount of said lien, and penalties and interest thereon; provided that any delinquent Special Tax sold to an independent third-party or to the City for 13 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
100% of the delinquent amount will no longer be pledged under the Indenture to the payment of the Bonds or Parity Bonds.

In the event that the Special Tax revenues are not received when due, the only sources of funds available to pay the debt service on the Bonds are amounts held by the Trustee in the Special Tax Fund (other than the Administrative Expense Account therein), including amounts held in the Reserve Account therein, for the exclusive benefit of the Owners of the Bonds.

NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE COUNTY,

THE STATE OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS. EXCEPT FOR THE NET TAXES, NO OTHER TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECIAL OBLIGATIONS OF THE CITY BUT ARE

LIMITED OBLIGATIONS OF THE DISTRICT PAYABLE SOLELY FROM THE NET TAXES AND OTHER AMOUNTS PLEDGED UNDER THE INDENTURE AS MORE FULLY DESCRIBED HEREIN.

Special Taxes
Authorization and Pledge. In accordance with the provisions of the Act, the City established the District on April 12, 2016 for the purpose of financing of various public improvements required in connection with the proposed development within the District. At a special election held on March 8, 2022 in connection with the Change Proceedings conducted with respect to the District in accordance with the Act, the qualified elector within the District voted to approve the Rate and Method which authorized the Special Tax to be levied to repay indebtedness of the District, including the Bonds.

The Bonds will be repaid only from annual Net Taxes derived from the levy and collection of Special Taxes pursuant to the Rate and Method. The Rate and Method permits the prepayment of Special Taxes for an Assessor’s Parcel (as defined in the Rate and Method), and any such Prepayments will be applied to redeem Bonds and Parity Bonds, if any. The Net Taxes collected from the annual Special Tax levy and the proceeds of any Prepayment have been pledged under the Indenture to the repayment of the Bonds and Parity Bonds.

The Special Taxes levied in any Fiscal Year may not exceed the maximum rates authorized pursuant to the Rate and Method. See “— Rate and Method of Apportionment of Special Tax” and Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” There is no assurance that the Net Taxes will, in all circumstances, be adequate to pay the principal of and interest on the Bonds when due. See the caption “SPECIAL RISK FACTORS — Insufficiency of Special Tax Revenues.” The “Special Taxes” for the District are levied and collected according to the Rate and Method established for such District. The complete Rate and Method for the District is attached hereto as Appendix A — “RATE AND METHODS OF APPORTIONMENT OF SPECIAL TAXES.” Pursuant to the Rate and Method, the District is also authorized to levy within the District a “Special Tax B” and a “Special Tax C (Contingent)” to pay for certain maintenance services. Neither of the foregoing taxes levied for services or maintenance are pledged to or available to pay debt service on the Bonds or any Parity Bonds. In this Official Statement, all references to the Special Taxes shall refer to the amounts available from the Special Tax A (as defined in the Rate and Method).

Rate and Method of Apportionment of Special Tax. The Rate and Method applicable to the District is contained in Appendix A — “RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX.” The meaning of the defined terms used in this section are as set forth in Appendix A.

In general, the Rate and Method imposes a different Maximum Special Tax on Taxable Property within the District depending upon whether such Taxable Property is classified as: (i) “Developed Property” (in general, all Assessor’s Parcels which is included in a Final Map recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied and a building permit for new construction has been issued 14 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
before March 1 preceding such Fiscal Year), (ii) “Approved Property” (in general, parcels of Taxable Property included in a Final Map recorded prior to the January 1 preceding the Fiscal Year in which the Special Tax is being levied but for which no building permit was issued before March 1 preceding such Fiscal Year), (iii) “Undeveloped Property” (in general, Taxable Property that is not “Developed Property,” “Approved Property” or “Public Property and/or Property Owner’s Association Property”) or (iv) “Public Property and/or Property Owner’s Association Property” (in general, Assessor’s Parcels owned by or dedicated to a government agency or property owner’s association). Different Maximum Special Taxes are also applicable to Developed Property depending upon: (a) its status as either “Residential Property” or “Non-Residential Property,” (b) in the case of Residential Property, its status as “Single Family Residential Property” or “Multifamily Property” or (c) in the case of Single Family Residential Property, the Building Square Footage of the structure.

Pursuant to the Rate and Method the District is required to determine the “Special Tax Requirement” for each Fiscal Year. The Special Tax Requirement for the District is the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds and Parity 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 establish or replenish any reserve funds established in association with the Bonds and Parity Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by the District, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped Property as set forth in the Rate and Method, less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.

The Special Tax Requirement for the District is to be satisfied first by levying the Special Tax Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax. If additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax will 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. If additional moneys are still needed to satisfy the Special Tax Requirement, the Special Tax will 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. If additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Special Tax is the Backup Special Tax will be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax. Finally, if additional moneys are needed to satisfy the Special Tax Requirement, the Special Tax will be levied Proportionately on each Assessor’s Parcel of Public Property and/or Property Owner’s Association Property at up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel. Notwithstanding the above, under no circumstances will the Special Tax levied 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 10% above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default Within the District, 296 of the 402 taxable parcels are classified as Developed Property for the Fiscal Year 2025-26 Special Tax levy and 106 taxable parcels are classified as Approved Property.

For Fiscal Year 2025-26, the Assigned Special Tax for Developed Property within the District that is classified as Single Family Residential Property range from $2,759 per taxable unit with a Building Square Footage of less than 1,700 square feet to $3,502 per taxable unit with a Building Square Footage of greater than 2,950 square feet. For Fiscal Year 2025-26 the Maximum Special Tax Rate for Approved Property classified or expected to be classified as Single Family Residential Property within the District is $3,041.42 per unit.

On each July 1 the Assigned Special Tax rates for Developed Property and 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.
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Table 1 below sets forth the Assigned Special Tax for Developed Property and the Maximum Special Tax rates for Approved Property, the Fiscal Year 2025-26 Special Tax levy and the percent of such levy based on land use type.
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TABLE 1

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)
ASSIGNED SPECIAL TAX RATES FOR FISCAL YEAR 2025-26
Land
Use
Class Land Use Type
Residential
Floor Area
(sq. ft.)
Maximum/
Assigned
Special
Tax Rates
Fiscal Year
2025-26
Special Tax
Levy Rates
Fiscal Year
2025-26
Percent of
Assigned
Rate
No. of
Units
Aggregate
Special Taxes
Fiscal Year
2025-26(1)
Percent
of Total
1 Single Family Residential Property < 1,700 $ 2,759 $ 2,759 100.0% 60 $ 165,548 18.5% 2 Single Family Residential Property 1,700-1,950 2,971 2,971 100.0 47 139,655 15.6 3 Single Family Residential Property 1,951-2,200 2,987 2,987 100.0 85 253,921 28.4 4 Single Family Residential Property 2,201-2,450 3,157 3,157 100.0 51 161,012 18.0 5 Single Family Residential Property 2,451-2,700 3,290 3,290 100.0 53 174,356 19.5 6 Single Family Residential Property 2,701-2,950 3,396 0 0.0 0 0 0.0 7 Single Family Residential Property > 2,950 3,501 0 0.0 0 0 0.0 8 Approved Property N/A 20,503 0 0.0 106 0 0.0
Total 402 $ 894,492 100.0%
(1) Includes Administrative Expenses of $50,100.

Backup Special Tax Rates. The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be classified as Single Family Property for Fiscal Year 2025-26 is $3,041.42 per unit.

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 $20,503 per acre for Fiscal Year 2025-26. In the event any superseding Final Map is recorded as a Final Map within the boundaries of the District, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $20,503 per acre for Fiscal Year 2025-26.

The Backup Special Tax shall not apply to Multifamily Residential Property, Non-Residential Property, Public Property or Property Owner’s Association Property. On each July 1 the Backup Special Tax rate will increase by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

Prepayment of Special Taxes. 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 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 that are not Exempt Property. In addition, the Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property or Undeveloped Property may be partially prepaid.

The Prepayment amount is calculated based on the sum of the Bond Redemption Amount, the Redemption Premium, the Future Facilities Amount, the Defeasance Amount, Administrative Fees and Expenses and less a credit for the resulting reduction in the Reserve Requirement for the Bonds (if any), all as specified in Section G of the Rate and Method attached as Appendix A. Prepayments of Special Taxes will be applied to effect an extraordinary redemption of Bonds and Parity Bonds. See “THE BONDS — Redemption — Special Mandatory Redemption from Special Tax Prepayments.”
Estimated Debt Service Coverage. Based on the number of building permits issued within the District as of March 1, 2025 (the date pursuant to the Rate and Method for determining the number of parcels of Developed Property within the District for the following Fiscal Year), 296 parcels within the District are classified as Developed Property and the remaining 106 taxable parcels within the District are classified as Approved Property for the Fiscal Year 2025-26 Special Tax levy. Annual Debt Service for the Bonds in each future Fiscal Year has been structured so that Special Taxes levied on parcels of Developed Property owned by individual homeowners as of September 25, 2025 (182 parcels) at the Assigned Special Tax for Facilities rates, assuming no delinquencies, will generate in each Fiscal Year not less than 110% of debt service payable with respect to the Bonds in the calendar year that begins in that Fiscal Year, plus the Administrative Expenses Cap. 17 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Actual collections of the Special Tax will depend on the amount of Special Tax delinquencies. The Assigned Special Tax for Facilities rates for Developed Property and for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

In connection with the issuance of the Bonds, the Special Tax Consultant will certify that the Maximum Special Tax that may be levied in each Fiscal Year on Assessor’s Parcels within the District classified as Taxable Property will be at least equal to the sum of: (i) 110% of Maximum Annual Debt Service on the Bonds; plus (ii) the Administrative Expenses Cap. Actual collections of the Special Tax will depend on the amount of Special Tax delinquencies.

Limitation on Special Tax Levy and Potential Impact on Coverage. Pursuant to Section 53321(d) of the Government Code, the special tax levied against any Assessor’s Parcel for which an occupancy permit for private residential use has been issued will not be increased as a consequence of delinquency or default by the owner of any other Assessor’s parcel within the District by more than 10% above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. As a result, in the event the Special Tax is levied at less than the Assigned Special Tax rate, it is possible that the District may not be able to increase the tax levy to the Assigned Special Tax in all years.

Levy, Collection and Application of Special Taxes. The Special Taxes are levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes, although it is possible that the District could elect to provide handbills to property owners within the District.

The District will covenant in the Indenture that each year it will levy Special Taxes up to the maximum rates permitted under the Rate and Method in an amount sufficient, together with other amounts on deposit in the Special Tax Fund, to pay the principal of and interest on any Outstanding Bonds and Parity Bonds, to replenish the Reserve Account to the Reserve Requirement and to pay Administrative Expenses.

The District will make certain covenants in the Indenture which are intended to ensure that the current maximum Special Tax rates and method of collection of the Special Taxes are not altered in a manner that would impair the District’s ability to collect sufficient Special Taxes to pay debt service on the Bonds, Parity Bonds and Administrative Expenses when due.

First, the District will covenant in the Indenture that it will take no actions that would discontinue or cause the discontinuance of the Special Tax levy or the District’s authority to levy the Special Tax for so long as the Bonds and any Parity Bonds are Outstanding.

Second, the District will covenant in the Indenture, to the maximum extent that the law permits it to do so, not to initiate proceedings to reduce the maximum Special Tax rates for the District, unless, in connection therewith, the District receives a certificate from one or more Independent Financial Consultants which, when taken together, certify that: (i) such changes do not reduce the maximum Special Taxes that may be levied in each year on property within the District to an amount which is less than the Administrative Expenses Cap plus 110% of the Annual Debt Service due in each corresponding future Bond Year with respect to the Bonds and Parity Bonds Outstanding as of the date of such proposed reduction; and (ii) the District is not delinquent in the payment of the principal of or interest on the Bonds or any Parity Bonds.

Third, the District will covenant in the Indenture that, in the event that any initiative is adopted by the qualified electors within the District which purports to reduce the maximum Special Tax below the levels specified in the preceding paragraph or to limit the power of the District to levy the Special Taxes for the purposes set forth in the Indenture, it will commence and pursue legal action in order to preserve its ability to comply with such covenants. The District can provide no assurance that any such legal action will be successful. See the caption “SPECIAL RISK FACTORS — Proposition 218.”
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Fourth, the District will covenant in the Indenture that it will not adopt any policy pursuant to the Act permitting the tender of Bonds or Parity Bonds in full payment or partial payment of any Special Taxes unless the District has first received a certificate from an Independent Financial Consultant that the acceptance of such a tender will not result in the District having insufficient Net Taxes to pay the principal of and interest on the Bonds and Parity Bonds when due.

See Appendix E under the caption “COVENANTS AND WARRANTY.” Although the Special Taxes constitute liens on taxed parcels within the District, they do not constitute a personal indebtedness of the owners of property within the District. Moreover, other liens for taxes and assessments already exist on the property located within the District and others could come into existence in the future in certain situations without the consent or knowledge of the City or the landowners in the District. See the captions “THE DISTRICT — Direct and Overlapping Debt” and “SPECIAL RISK FACTORS — Direct and Overlapping Indebtedness.” There is no assurance that property owners will be financially able to pay the annual Special Taxes or that they will pay such taxes even if financially able to do so, all as more fully described under the caption “SPECIAL RISK FACTORS.”
Proceeds of Foreclosure Sales. The net proceeds received following a judicial foreclosure sale of property within the District resulting from a property owner’s failure to pay the Special Taxes when due are included within the Net Taxes pledged to the payment of principal of and interest on the Bonds and any Parity Bonds under the Indenture.

Pursuant to Section 53356.1 of the Act, in the event of any delinquency in the payment of any Special Tax or receipt by the District of Special Taxes in an amount which is less than the Special Taxes levied, the City Council, as the legislative body of the District, may order that Special Taxes be collected by a Superior Court action to foreclose the lien within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at a judicial foreclosure sale. Under the Act, the commencement of judicial foreclosure following the nonpayment of a Special Tax is not mandatory. However, the District will covenant in the Indenture for the benefit of the owners of the Bonds and any Parity Bonds that it will: (i) commence judicial foreclosure proceedings against parcels with delinquent Special Taxes in excess of $5,000 by the October 1 following the close of each Fiscal Year in which such Special Taxes were due; and (ii) commence judicial foreclosure proceedings against all parcels with delinquent Special Taxes by the October 1 following the close of each Fiscal Year in which it receives Special Taxes in an amount which is less than 95% of the total Special Tax levied; and (iii) diligently pursue such foreclosure proceedings until the delinquent Special Taxes are paid; provided that, notwithstanding the foregoing, the District may elect to defer foreclosure proceedings on any parcel so long as the amount in the Reserve Account is at least equal to the Reserve Requirement.

The District will covenant in the Indenture that it will deposit the net proceeds of any foreclosure in the Special Tax Fund and will apply such proceeds remaining after the payment of Administrative Expenses to make current payments of principal and interest on the Bonds and any Parity Bonds, to bring the amount on deposit in the Reserve Account up to the Reserve Requirement and to pay any delinquent installments of principal or interest due on the Bonds and any Parity Bonds. See APPENDIX E — “SUMMARY OF THE INDENTURE — COVENANTS AND WARRANTY — Covenants” herein.

If foreclosure is necessary and other funds (including amounts in the Reserve Account) have been exhausted, debt service payments on the Bonds could be delayed unless the foreclosure proceedings produce sufficient net foreclosure sale proceeds. Judicial foreclosure actions are subject to the normal delays associated with court cases and may be further slowed by bankruptcy actions, involvement by agencies of the federal government and other factors beyond the control of the City and the District. See the caption “SPECIAL RISK FACTORS — Enforcement Delays – Bankruptcy.” Moreover, no assurances can be given that the real property subject to foreclosure and sale at a judicial foreclosure sale will be sold or, if sold, that the net proceeds of such sale will be sufficient to pay any delinquent Special Tax installment. See the caption “SPECIAL RISK FACTORS — Property Values.” Although the Act authorizes the District to cause such an action to be 19 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
commenced and diligently pursued to completion, the Act does not impose on the District or the City any obligation to purchase or acquire any lot or parcel of property sold at a foreclosure sale if there is no other purchaser at such sale. The Act provides that, in the case of a delinquency, the Special Tax will have the same lien priority as is provided for ad valorem taxes.

Collection of Special Taxes and Flow of Funds. The Special Taxes will be levied and collected by the Treasurer-Tax Collector of the County in the same manner and at the same time as ad valorem property taxes, although it is possible that the District could elect to provide handbills to property owners within the District.

When the County apportions Special Taxes to the District, the District will transmit the Special Taxes to the Trustee for deposit in the Special Tax Fund established by the Indenture.

Except for Prepayments, which will be deposited to the Redemption Account of the Special Tax Fund, the Trustee will, on each date on which the Special Taxes are received from the District, deposit the Special Taxes in the Special Tax Fund to be held in trust for the Owners. The Trustee will transfer the Special Taxes on deposit in the Special Tax Fund on the dates, in the amounts and in the following order of priority, to:

First: To the Administrative Expense Account in an amount up to the Administrative Expenses Cap.

Second: To the Interest Account, an amount such that the balance in the Interest Account one Business Day prior to each Interest Payment Date is equal to the installment of interest due on the Bonds and any Parity Bonds on said Interest Payment Date and any installment of interest due on a previous Interest Payment Date which remains unpaid. Moneys in the Interest Account will be used for the payment of interest on the Bonds and any Parity Bonds as the same become due.

Third: To the Principal Account, an amount such that the balance in the Principal Account one Business Day prior to September 1 of each year, commencing September 1, 2026, is equal the principal payment due on the Bonds and any Parity Bonds maturing on such September 1 and any principal payment due on a previous September 1 which remains unpaid. Moneys in the Principal Account shall be used for the payment of the principal of such Bonds and any Parity Bonds as the same become due at maturity.

Fourth: To the Redemption Account, the amount needed to make the balance in the Redemption Account one Business Day prior to each September 1 on which a Sinking Fund Payment is due equal to the Sinking Fund Payment due on any Outstanding Bonds and Parity Bonds on such September 1; provided, however, that, if amounts in the Special Tax Fund are inadequate to make the foregoing transfers, then any deficiency will be made up by an immediate transfer from the Reserve Account, if funded, pursuant to the Indenture; and thereafter, to pay the principal and premium, if any, due in connection with an optional redemption of Bonds or Parity Bonds.

Fifth: To the Reserve Account of the Special Tax Fund to the extent necessary to replenish the Reserve Account to the Reserve Requirement.

Sixth: To the Administrative Expense Account of the Special Tax Fund the amount of any Administrative Expenses for the current Bond Year in excess of the Administrative Expenses Cap as directed by the City.

Seventh: To the Rebate Fund established by the Indenture to the extent directed by the City pursuant to the Indenture.
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Eighth: To the Surplus Fund established by the Indenture such remaining amounts in the Special Tax Fund after making the foregoing transfers on September 1.

Reserve Account of the Special Tax Fund
In order to secure further the payment of principal of and interest on the Bonds, the District is required, upon delivery of the Bonds, to deposit in the Reserve Account and thereafter to maintain in the Reserve Account an amount equal to the Reserve Requirement. The term “Reserve Requirement” is defined in the Indenture to mean, that amount as of any date of calculation, equal to the lesser of: (i) 10% of the initial principal amount of the Bonds and Parity Bonds, if any; (ii) Maximum Annual Debt Service on the then Outstanding Bonds and Parity Bonds, if any; (iii) 125% of average Annual Debt Service on the then Outstanding Bonds and Parity Bonds, if any; provided, however, that the Reserve Requirement shall not exceed $________ except in connection with the issuance of Parity Bonds. The Reserve Requirement may be satisfied in whole or in part by cash, a Reserve Policy (as defined in the Indenture), or a combination thereof. On the date of issuance of the Bonds, the Reserve Requirement will be satisfied from a deposit of $__________ into the Reserve Account from proceeds of the Bonds.

Subject to the limits on the maximum annual Special Tax levy set forth in the Rate and Method and in the Indenture, the District will covenant in the Indenture to levy Special Taxes in an amount sufficient, in light of the other intended uses of the Special Tax proceeds, to maintain the balance in the Reserve Account at the Reserve Requirement. Amounts in the Reserve Account are to be applied: (i) to pay debt service on the Bonds, or any Parity Bonds, including Sinking Fund Payments, to the extent that other monies are not available therefor; (ii) to redeem Bonds or Parity Bonds in the event of prepayment of Special Taxes, to optionally redeem Bonds or Parity Bonds or in connection with a partial defeasance of Bonds or Parity Bonds, in accordance with the Indenture; and (iii) to pay any rebate requirements. See Appendix E under the caption “CREATION OF FUNDS AND APPLICATION OF PROCEEDS — Reserve Account of the Special Tax Fund.” No Teeter Plan
Although the Riverside County Board of Supervisors has adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”) which allows each entity levying secured property taxes in the County to draw on the amount of property taxes levied rather than the amount actually collected, as provided for in Section 4701 et seq. of the California Revenue and Taxation Code, the District is not included in the County Teeter Plan. Consequently, the District may not draw on the County Tax Loss Reserve Fund in the event of delinquencies in Special Tax payments within the District.

Additional Parity Bonds
The Indenture provides that, upon satisfaction of certain conditions, the District may issue Parity Bonds payable from the Net Taxes and other amounts deposited in the Special Tax Fund (other than the Administrative Expense Account therein) and secured by a lien and charge upon such amounts equal to the lien and charge securing the Outstanding Bonds and any other Parity Bonds theretofore issued; provided, however, Parity Bonds may only be issued: (i) for the purpose of refunding all or a portion of the Bonds or any Parity Bonds then Outstanding, or (ii) for other purposes of the District in a principal amount not to exceed $8,720,000*. Parity Bonds may be issued subject to the following additional specific conditions, which are hereby made conditions precedent to the issuance of any such Parity Bonds:
(a) The District is in compliance with all covenants set forth in the Indenture and any Supplemental Indenture then in effect and a certificate of the District to that effect will have been filed with the Trustee; provided, however, that Parity Bonds may be issued notwithstanding that the District is not in compliance with *
Preliminary, subject to change.
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all such covenants so long as immediately following the issuance of such Parity Bonds the District will be in compliance with all such covenants.
(b) The issuance of such Parity Bonds will have been duly authorized pursuant to the Act and all applicable laws, and the issuance of such Parity Bonds will have been provided for by a Supplemental Indenture duly authorized, executed and delivered by the District which will specify the following (i) the purpose for which such Parity Bonds are to be issued and the fund or funds into which the proceeds thereof are to be deposited; (ii) the authorized principal amount of such Parity Bonds; (iii) the date and the maturity date or dates of such Parity Bonds; provided that: (a) each maturity date will fall on a September 1; (b) all such Parity Bonds of like maturity shall be identical in all respects, except as to number; (c) fixed serial maturities or Sinking Fund Payments, or any combination thereof, will be established to provide for the retirement of all such Parity Bonds on or before their respective maturity dates; and (d) if issued for the purpose of refunding Bonds and/or Parity Bonds, the maturity of the Parity Bonds to be issued will not exceed the maturity of the Bonds and Parity being refunded; (iv) the description of the Parity Bonds, the place of payment thereof and the procedure for execution and authentication; (v) the denominations and method of numbering of such Parity Bonds; (vi) the amount and due date of each mandatory Sinking Fund Payment, if any, for such Parity Bonds; (vii) the amount, if any, to be deposited from the proceeds of such Parity Bonds in the Reserve Account of the Special Tax Fund to increase the amount therein to the Reserve Requirement; the form of such Parity Bonds; and such other provisions as are necessary or appropriate and not inconsistent with the Indenture. (c) The District will have received the following documents or money or securities, all of such documents dated or certified, as the case may be, as of the date of delivery of such Parity Bonds by the Trustee (unless the Trustee shall be directed by the District to accept any of such documents bearing a prior date): (i) a certified resolution of the City Council, acting as the legislative body of the District, authorizing the issuance of such Parity Bonds; (ii) a written request of the District as to the delivery of such Parity Bonds; (iii) an opinion of Bond Counsel and/or general counsel to the District to the effect that: (a) the District has the right and power under the Act to execute and deliver the Supplemental Indenture relating to such Parity Bonds, and such Supplemental Indenture has been duly and lawfully executed by the District, and the Indenture and such Supplemental Indenture are in full force and effect and are valid and binding upon the District and enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights); (b) the Indenture creates the valid pledge which it purports to create of the Net Taxes and other amounts as provided in the Indenture, subject to the application thereof to the purposes and on the conditions permitted by the Indenture; and (c) such Parity Bonds are valid and binding limited obligations of the District, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization and other similar laws relating to the enforcement of creditors’ rights) and the terms of the Indenture and the Supplemental Indenture executed and delivered in connection with such Parity Bonds and are entitled to the benefits of the Indenture and such Supplemental Indenture, and such Parity Bonds have been duly and validly authorized and issued in accordance with the Act (or other applicable laws) and the Indenture and such Supplemental Indenture; and a further opinion of Bond Counsel to the effect that, assuming compliance by the District with certain tax covenants, the issuance of the Parity Bonds will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Bonds and any Parity Bonds theretofore issued on a tax-exempt basis, or the exemption from State of California personal income taxation of interest on any Outstanding Bonds and Parity Bonds theretofore issued; (iv) a certificate of the District containing such statements as may be reasonably necessary to show compliance with the requirements of the Indenture; (v) where the Parity Bonds are issued to refund the Bonds or other Parity Bonds, a certificate of an Independent Financial Consultant certifying that in each Bond Year the Annual Debt Service on the Bonds and Parity Bonds to remain Outstanding following the issuance of the Parity Bonds proposed to be issued is less than the Annual Debt Service on the Bonds and Parity Bonds Outstanding prior to the issuance of such Parity Bonds; (vi) where the Parity Bonds are being issued other than to refund the Bonds or other Parity Bonds, a Certificate of the Special Tax Administrator certifying that (a) the maximum Special Taxes that may be levied in each Fiscal Year is not less than 110% of the Annual Debt Service in the Bond Year that begins in such Fiscal Year; and (b) the Value of District Property is not less than four (4) times the sum of Direct Debt for District Property plus Overlapping Debt allocable to all property in the District subject 22 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
to the Special Tax; and (vii) such further documents, money and securities as are required by the provisions of the Indenture and the Supplemental Indenture providing for the issuance of such Parity Bonds.

See Appendix E under the caption “DEFEASANCE AND PARITY BONDS.”

THE DISTRICT
General Description of the District
The City is located in the western portion of the County. The District contains approximately 151 gross acres and is located in the City approximately one mile southwest of Interstate 15 along the east side of Terra Cotta Road north of Lakeshore Drive.

The property within the District is being developed by KB Home into 402 single-family detached homes in a project being marketed as “Terracina.” KB Home is developing the District in two neighborhoods: “Carrera at Terracina” and “Villa Real at Terracina.” The Carrera neighborhood is planned to be developed into 224 single-family homes. The Villa Real neighborhood is planned to be developed into 178 single-family homes.

The major infrastructure (sewer, water, storm drains, utilities, and arterial roads) necessary to develop the property within the District is substantially complete. The in-tract infrastructure within the District is also substantially complete with the exception of the in-tract sewer and water improvements in a 38 unit cul-de-sac area which is expected to be completed within the next two months. The finishing of certain streets and landscaping is also remaining. The finishing of certain streets and landscaping is also remaining. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT” for further information regarding KB Home and the development within the District.

Water and sewer service to the property within the District is currently supplied by the Elsinore Valley Municipal Water District. Electricity is currently supplied by Southern California Edison and gas by Southern California Gas Company. Public education instruction is provided by the Lake Elsinore Unified School District.

The property within the District is not located in an Alquist-Priolo Earthquake Study Zone and is not located within one-half mile of an active earthquake fault. The District is located in an area which the Department of Forestry and Fire Protection of the State of California has designated as a very high fire hazard severity zone. The area in the District was previously mapped within a flood zone. The property in the District is not mapped within a FEMA-designated flood zone. Notwithstanding the foregoing, property in the District may be subject to unpredictable seismic activity, fires, flood, or other natural disasters. See “SPECIAL RISK FACTORS — Natural Disasters.”
A map showing the location of the District and an aerial photograph thereof appear following the Table of Contents.

Authorized Uses of Bond Proceeds
Proceeds of the Bonds are authorized to be used to pay for the costs of construction of City facilities, including certain storm drain and street improvements and the costs of certain water and sewer system improvements to be owned and operated by the Elsinore Valley Municipal Water District. See the caption “FINANCING PLAN.”
23 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Appraisal Report
The estimated assessed value of the property within the District, as shown on the County’s assessment roll for Fiscal Year 2025-26 is approximately $91,178,216, which as a result of timing of the County’s determination of the assessed values for Fiscal Year 2025-26, does not reflect the substantial development activity that has taken place since such value was determined.

A property’s assessed value is not necessarily indicative of its market value. In order to provide information with respect to the value of the taxable property within the District, the City engaged the Appraiser to prepare the Appraisal Report. The Appraiser has an “MAI” designation from the Appraisal Institute and has prepared numerous appraisals for the sale of land-secured municipal bonds. The Appraiser was selected by the City and has no material relationships with the City or the owners of the land within the District other than the relationship represented by the engagement to prepare the Appraisal Report. The City instructed the Appraiser to prepare its analysis and report in conformity with City-approved guidelines and the Appraisal Standards for Land Secured Financings published in 1994 and revised in 2004 by the California Debt and Investment Advisory Commission. A copy of the Appraisal Report is included as APPENDIX D — “APPRAISAL REPORT” to this Official Statement.

The purpose of the Appraisal Report was to estimate the minimum market value of the property within the District subject to the lien of the Special Taxes. The estimate of market value takes into consideration and assumes the improvements to be funded with the proceeds of the Bonds have been installed and that the remaining costs to develop each of the projects within the District provided to the Appraiser by KB Home are correct. As a result, the value conclusions are based upon a hypothetical condition that all improvements and benefits to the District, which are to be funded with the proceeds of the Bonds, are completed and in place.

Subject to the assumptions and limiting conditions set forth in the Appraisal Report, the Appraiser concluded that, as of September 25, 2025, the minimum market value of the Taxable Property within the District was $155,374,399. In valuing the property within the District, the Appraiser used a sales comparison approach for the property to be developed by KB Home and, with respect to the KB Home-owned models and homes over 95% complete, a discounted cash flow analysis was applied. The discounted cash flow analysis accounts for remaining development costs, marketing and carrying costs and a discount rate through the estimated absorption period for such models and production units. Production units which were under 95% complete were valued on a finished lot basis.

The Appraisal Report is based upon a variety of assumptions and limiting conditions that are described in Appendix D. The City, the Underwriter and the District make no representation as to the accuracy of the Appraisal Report. There is no assurance that the property within the District can be sold for the prices set forth in the Appraisal Report or that any parcel can be sold for a price sufficient to pay the Special Tax for that parcel in the event of a default in payment of Special Taxes by the landowner. See “SPECIAL RISK FACTORS — Property Values,” Appendix D — “APPRAISAL REPORT.”
Estimated Appraised Value-to-Lien Ratios
The aggregate appraised value of property within the District is $155,374,399. Dividing the aggregate estimate of value by the principal amount of the Bonds results in value to lien ratio of 13.77-to-1* for the District.

Including the direct and overlapping special tax and assessment debt and overlapping general obligation debt in the District and the Bonds, the estimated appraised value to lien ratio for the District is approximately 13.12-to1 *
. See “SPECIAL RISK FACTORS — Direct and Overlapping Indebtedness.” The assessed value of the property within the District is $91,178,216 for Fiscal Year 2025-26, which as a result of timing of the County’s *
Preliminary, subject to change.
24 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
determination of the assessed values for Fiscal Year 2025-26, does not reflect the substantial development activity that has taken place since such value was determined.

Based on ownership status as of September 25, 2025 (and assuming none of the 65 homes in escrow close to individual homeowners), individual homeowners and KB Home are expected to be responsible for approximately 61.4% and 38.6%, respectively, of the Fiscal Year 2025-26 Special Tax levy.

Table 2 below sets forth the appraised value-to-lien ratio of the Taxable Property within the District based on the appraised values set forth in the Appraisal Report, the principal amount of the Bonds direct and overlapping debt. Table 3 below sets forth the estimated appraised value-to-lien ratios for Developed Property within the District by various ranges based upon the principal amount of the Bonds and overlapping general obligation debt.
25 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
TABLE 2

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

ESTIMATED VALUE-TO-LIEN RATIOS

ALLOCATED BY PROPERTY OWNER
Property Owner
No. of
Parcels
Appraised
Property Value(4)
% of
Appraised
Value Maximum Tax(3)
Percentage of
Maximum Tax
Fiscal Year
2025-26
Levy(5)
% of Actual
Fiscal Year
2025-26
Levy The Bonds(6)*
All Other
Overlapping
Debt Issued*
Appraised
Value-toLien Ratio*
Developed Property
Individually Owned(1) 182 $ 99,369,466 63.95% $ 564,955 45.50% $ 549,069 61.38% $ 6,924,038 $ 346,366 13.67:1 KB Home Owned(2) 114 33,079,416 21.29 354,366 28.54 345,023 38.62 4,355,962 217,901 7.23:1 Subtotal Developed 296 $ 132,448,882 85.24% $ 919,321 74.04% $ 894,492 100.00% $ 11,280,000 $ 564,267 11.18:1 Approved Property
KB Home Owned(3) 106 $ 22,925,517 14.76% $ 322,391 25.96% $ 0 0.00% $ 0 $ 0 N/A Subtotal Approved Developer Owned 106 $ 22,925,517 14.76% $ 322,391 25.96% $ 0 0.00% $ 0 $ 0 N/A Total 402 $ 155,374,399 100.00% $ 1,241,712 100.00% $ 894,492 100.00% $ 11,280,000 $ 564,267 13.12:1 * Preliminary, subject to change.
(1) Ownership status based on ownership information shown in the Appraisal Report as of September 25, 2025. (2) Reflects appraised value for six model homes, 42 homes over 95% complete, 34 homes under construction, and 32 finished lots for which building permits had been issued prior to March 1, 2025 and are therefore considered Developed Property per the Rate and Method. (3) Reflects appraised value for 106 finished lots for KB Home which building permits had not been issued prior to March 1, 2025 and are therefore considered Approved Property per the Rate and Method.
(4) Reflects the appraised value based as of the September 25, 2025 date of value of the Appraisal Report. (5) Actual Fiscal Year 2025-26 Special Tax Levy based upon development status as of March 1, 2025 and debt service on the Bonds with administration expenses of $50,100. (6) Includes the principal amount of the Bonds. Responsibility of the principal amount of the Bonds has been allocated based on the actual Fiscal Year 2025-26 Special Tax levy based on development status in the District as of March 1, 2025.

Source: County of Riverside Assessor’s Office; Spicer Consulting Group, LLC. 26 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
TABLE 3

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)
VALUE-TO-LIEN STRATIFICATION FOR DEVELOPED PROPERTY*
Value-to-Lien Category
No. of
Parcels of
Developed
Property
% of
Developed
Property
Appraised
Value (1)
% of
Appraised
Value
The District
Projected
Fiscal Year
2025-26 Levy
Percent
Share of
Projected
Fiscal Year
2025-26 Levy The Bonds(2)
Percent
Share of
Proposed
2025 Bonds
All Other
Overlapping
Debt
Aggregate
Value-toLien
Less than 6.00:1(3) 66 22.30% $ 14,274,378 10.78% $ 200,807 22.45% $ 2,532,279 22.45% $ 126,674 5.37:1 Between 6.00:1 to 10.00:1 42 14.19 16,223,576 12.25 126,676 14.16 1,597,454 14.16 79,911 9.67:1 Between 10.01:1 to 14.00:1 157 53.04 84,688,743 63.94 474,402 53.04 5,982,455 53.04 299,265 13.48:1 Greater than 14.00:1(3) 31 10.47 17,262,185 13.03 92,606 10.35 1,167,813 10.35 58,418 14.08:1 Totals 296 100.00% $132,448,882 100.00% $ 894,492 100.00% $11,280,000 100.00% $ 564,267 11.18:1 * Preliminary, subject to change.
(1) Reflects the appraised value as of the September 25, 2025 date of value of the Appraisal Report. (2) Responsibility of the par amount has been allocated based on the Fiscal Year 2025-26 Special Tax levy, with development status as of March 1, 2025. (3) The minimum value to lien in the Less than 6.00:1*
category is 4.97:1*. The maximum value to lien in the Greater than 14.00:1* category is 14.09:1*.

Source: County of Riverside Assessor’s Office; Spicer Consulting Group, LLC. 27 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Direct and Overlapping Debt
The District is included within the boundaries of overlapping local agencies providing governmental services. Some of these local agencies have outstanding bonds, and/or the authority to issue bonds, payable from taxes or assessments. The existing and authorized indebtedness payable from taxes and assessments that may be levied upon the property within the District is shown in Table 4 below. In addition to current debt, new community facilities districts and/or special assessment districts could be formed in the future encompassing all or a portion of the property within the District; and such districts or the agencies that formed them could issue more bonds and levy additional special taxes or assessments.

TABLE 4

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

DIRECT AND OVERLAPPING DEBT
AS OF SEPTEMBER 25, 2025
I. Assessed/Appraisal Value(1) $155,374,399
II. Land Secured Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt Type Issued Outstanding % Applicable Parcels in
CFD No.
2015-4(3)
Amount
Applicable
City of Lake Elsinore CFD No. 2015-4, Series 2026 CFD $ 11,280,000 $11,280,000 100.000% 296 $11,280,000* Total Land Secured Bonded Debt(2) $11,280,000*
Authorized but Unissued Direct and
Overlapping Indebtedness Type Authorized Unissued % Applicable Parcels in
CFD No.
2015-4(3)
Amount
Applicable
City of Lake Elsinore CFD No. 2015-4, Series 2026 CFD $ 20,000,000 $ 8,720,000 100.000% 296 $ 8,720,000 Total Unissued Land Secured Indebtedness(2) $ 8,720,000 TOTAL OUTSTANDING AND UNISSUED LAND SECURED INDEBTEDNESS $20,000,000 III. General Obligation Bond Indebtedness
Outstanding Direct and
Overlapping Bonded Debt Type Issued Outstanding % Applicable Parcels in
CFD No.
2015-4(3)
Amount
Applicable
Metropolitan Water Debt Service GO $ 850,000,000 $ 19,215,000 0.055% 296 $ 10,620 Mt. San Jacinto Jr. College Debt Service GO 295,000,000 242,210,000 0.061 296 147,676 Lake Elsinore Unified School District Debt Service GO 98,915,000 88,845,000 0.457 296 405,971 Total Outstanding General Obligation Bonded Debt(2) $ 564,267 Authorized but Unissued Direct and
Overlapping Indebtedness Type Authorized Unissued % Applicable Parcels in
CFD
No. 2015-4(3)
Amount
Applicable
Metropolitan Water Debt Service GO $ 850,000,000 $ 0 0.055% 296 $ 0 Mt. San Jacinto Jr. College Debt Service GO 295,000,000 0 0.061 296 0 Lake Elsinore Unified School District Debt Service GO 303,000,000 204,085,000 0.457 296 932,553 Total Unissued General Obligation Indebtedness(2) $ 932,553 TOTAL OUTSTANDING AND UNISSUED GENERAL OBLIGATION INDEBTEDNESS $ 1,496,820 TOTAL OF ALL OUTSTANDING DIRECT AND OVERLAPPING BONDED DEBT $11,844,267* TOTAL OF ALL OUTSTANDING DIRECT AND UNISSUED DIRECT OVERLAPPING INDEBTEDNESS $21,496,820* IV. Ratios to Appraisal Value
Outstanding Land Secured Bonded Debt.............13.77:1* Total Outstanding Bonded Debt...........................13.12:1* * Preliminary, subject to change.
(1) Based on the appraisal value shown in the Appraisal Report as of the September 25, 2025 date of value. (2) Parity Bonds may be issued to finance additional public improvements and for refunding purposes. (3) All parcels have subdivided into 402 individual parcels. Based on development status as of March 1, 2025, 296 parcels are classified as Developed Property under the Rate and Method for the Fiscal Year 2025-26 Special Tax levy.

Source: County of Riverside Assessor’s Office; Spicer Consulting Group, LLC. 28 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Table 5 below describes the estimated Fiscal Year 2025-26 effective tax burden for KB Home’s development in the District based on the average appraised value of homes within each of KB Home’s floor plans in the District as of the September 25, 2025 date of value of the Appraisal Report, the actual Fiscal Year 2025-26 Special Tax levy and Fiscal Year 2024-25 actual levies for all other overlapping taxing jurisdictions. Based on the foregoing, in Fiscal Year 2025-26, the projected effective tax rates to be levied on Developed Property in the District will range from approximately 1.92% to 1.97%.

TABLE 5

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)
ESTIMATED FISCAL YEAR 2025-26 TAX OBLIGATION

FOR A SAMPLE OF DEVELOPED PROPERTY

KB HOME OWNED
Neighborhood Carrera Villa Real
Plan Type 1 2 3 4 5 6 1 2 3 4 5 6
CFD Tax Category Less than Less than 1,700 to 1,700 to 1,700 to 2,201 to Less than 1,700 to 1,951 to 2,201 to 2,451 to 2,451 to 1,700 S.F. 1,700 S.F. 2,200 S.F. 2,200 S.F. 2,200 S.F. 2,450 S.F. 1,700 S.F. 1,950 S.F. 2,200 S.F. 2,450 S.F. 2,700 S.F. 2,700 S.F.

Home Size(1) 1,435 1,663 1,840 1,976 2,139 2,389 1,539 1,742 2,027 2,218 2,453 2,517 Appraisal Value (2) $502,250 $507,215 $524,400 $533,520 $556,140 $573,360 $507,870 $527,826 $557,425 $565,590 $588,720 $586,461 Ad Valorem Property Taxes(3):

General Purpose $ 5,023 $ 5,072 $ 5,244 $ 5,335 $ 5,561 $ 5,734 $ 5,079 $ 5,278 $ 5,574 $ 5,656 $ 5,887 $ 5,865 Metro Water West (0.00700%) 35 36 37 37 39 40 36 37 39 40 41 41 Mt. San Jacinto Jr. College (0.00254%) 13 13 13 14 14 15 13 13 14 14 15 15 Lake Elsinore Unified (0.04700%) 236 238 246 251 261 269 239 248 262 266 277 276 Total General Property Taxes $ 5,306 $ 5,359 $ 5,540 $ 5,637 $ 5,876 $ 6,058 $ 5,366 $ 5,577 $ 5,889 $ 5,976 $ 6,220 $ 6,196 Assessment, Special Taxes & Parcel Charges(4):

Flood Control Stormwater / Cleanwater / Santa Ana $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 $ 4 CSA #152 Lake Elsinore Stormwater 14 14 14 14 14 14 14 14 14 14 14 14 City of Elsinore Citywide LLMD 25 25 25 25 25 25 25 25 25 25 25 25 N.W. Mosquito & Vector Control District 12 12 12 12 12 12 12 12 12 12 12 12 MWD Standby charge 9 9 9 9 9 9 9 9 9 9 9 9
CFD No. 2015-1 - Safety Services 983 983 983 983 983 983 983 983 983 983 983 983 CFD No. 2015-4 - Services Tax B 754 754 754 754 754 754 754 754 754 754 754 754 CFD No. 2015-4 - Facilities Tax A 2,759 2,759 2,971 2,971 2,971 3,157 2,759 2,971 2,987 3,157 3,290 3,290 Total Assessments & Special Taxes $ 4,559 $ 4,559 $ 4,772 $ 4,772 $ 4,772 $ 4,957 $ 4,559 $ 4,772 $ 4,788 $ 4,957 $ 5,090 $ 5,090 Projected Total Property Tax $ 9,866 $ 9,918 $ 10,312 $ 10,409 $ 10,648 $ 11,015 $ 9,925 $ 10,348 $ 10,677 $ 10,933 $ 11,310 $ 11,286 Projected Effective Tax Rate 1.96% 1.96% 1.97% 1.95% 1.91% 1.92% 1.95% 1.96% 1.92% 1.93% 1.92% 1.92% (1) Reflects the average home size of each plan type within the District. (2) Reflects the appraised value based as of the September 25, 2025, the date of value the Appraisal Report. (3) Reflects estimated Fiscal Year 2025-26 Special Tax levy based on development as of March 1, 2025 and includes priority administrative expenses in the amount of $50,100. (4) The effective tax rate reflected includes the full assigned tax rate for each CFD category.

Source: County of Riverside Assessor’s Office; Spicer Consulting Group, LLC. 29 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Delinquency History
Table 6 summarizes the Special Tax delinquencies for property within the boundaries of the District beginning with Fiscal Year 2024-25, which was the first year in which the Special Taxes were levied. Special Taxes have only been levied on Developed Property. Future delinquencies could increase as a result of factors such as changes in the local or national economy, increases in the mortgage rates and/or increases in the unemployment rate in the area. See “SPECIAL RISK FACTORS — Special Tax Delinquencies.” TABLE 6

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

SPECIAL TAX LEVY AND DELINQUENCY HISTORY
Delinquencies as of September 25, 2025
Fiscal
Year
Amount
Levied
Parcels
Levied
Parcels
Delinquent
Amount
Delinquent
Percent
Delinquent
2024-25 $123,136 91 0 $0 0.00%
Source: County of Riverside Assessor’s Office; Spicer Consulting Group, LLC.

PROPERTY OWNERSHIP AND THE DEVELOPMENT
The information about the property in the District under this caption has been provided by representatives of KB Home, and has not been independently confirmed or verified by the Underwriter, the City or the District. The Underwriter, the City, and the District make no representation as to the accuracy or adequacy of the information contained in this caption. There may be material adverse changes in this information after the date of this Official Statement. Neither the Bonds nor the Net Taxes securing the Bonds and any Parity Bonds are personal obligations of KB Home or any affiliate thereof or any other property owner and, in the event that any property owner defaults in the payment of its Special Taxes, the District may proceed with judicial foreclosure but has no direct recourse to the assets of any property owner or any affiliate thereof.

See the caption “SPECIAL RISK FACTORS.”
Notwithstanding the belief of KB Home that it will have sufficient funds to complete its planned development in the District, no assurance can be given that amounts necessary to fund the remaining planned development by KB Home in the District will be available when needed. None of KB Home, or any other entity or person is under any legal obligation of any kind to expend funds for the development of the property as planned by KB Home in the District. Any contributions by KB Home or any other entity or person to fund the costs of its development are entirely voluntary. If and to the extent the aforementioned sources are inadequate to pay the costs to complete the planned development by KB Home within the District, the remaining portions of such development may not be completed. KB Home has no legal obligation to Bondholders to make any such funds available for construction or development, or the payment of ad valorem property taxes or the Special Taxes. See the caption “SPECIAL RISK FACTORS.”
General
The District contains approximately 151 gross acres and is located in the City approximately one mile southwest of Interstate 15 along the east side of Terra Cotta Road north of Lakeshore Drive.

The Appraisal estimates approximately $10.7 million in remaining land development costs and fees. Of this amount, approximately $6 million pertains to development expenses such as landscaping, fencing, walls, utilities, and other project close-out or finishing cost. Additionally, approximately $4.8 million consists of remaining land development fees. The major infrastructure (sewer, water, storm drains, utilities, and arterial 30 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
roads) necessary to develop the property within the District is substantially complete. The in-tract infrastructure within the District is also substantially complete with the exception of the in-tract sewer and water improvements in a 38 unit cul-de-sac area which is expected to be completed within the next two months. The finishing of certain streets and landscaping is also remaining.

Planned Development Within the District
General. The property within the District is being developed by KB Home into 402 single-family detached homes in a project being marketed as “Terracina.” KB Home is developing the District in two neighborhoods: “Carrera at Terracina” and “Villa Real at Terracina.” The Carrera neighborhood is planned to be developed into 224 single-family homes. The Villa Real neighborhood is planned to be developed into 178 single-family homes.

As of November 1, 2025, KB Home had completed and conveyed 191 homes in the District to individual homeowners. KB Home expects to complete and convey all remaining homes to be constructed in the District to individual homeowners by the end of June 2027. KB Home’s project in the District includes two neighborhoods – Carrera and Villa Real. The tables below show certain information with respect to the homes in each product line in the neighborhoods as of November 1, 2025.

Carrera at Terracina. The Carrera neighborhood is planned to consist of 224 single-family homes with six two-story floor plans ranging in size from 1,435 to 2,389 square feet with three to four bedrooms and two car garages. As of September 25, 2025, the base sales prices within the Carrera neighborhood ranged from $524,990 to $606,990. The smaller three floor plans are all single story, while the larger three offer two story floor plans. The Carrera homes also offer options for up to five bedrooms. As of September 25, 2025, the Developer had conveyed 87 of the single-family homes planned within the Carrera neighborhood to individual homeowners, 30 homes had been completed and were owned by the Developer (including 3 model homes, 16 homes under construction (11 of which were in escrow) and 91 finished lots (6 of which were in escrow). Sales of the Carrera single-family detached homes began in September 2023 and the final Carrera homes are currently projected to be conveyed to individual homeowners in June 2027.

The table below shows the development and ownership status of the lots within the Carrera neighborhood as of November 1, 2025.
31 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

CARRERA NEIGHBORHOOD
(As of November 1, 2025)
Owned by KB Home
Plan
Total
Units
Planned
Estimated
Home
Square
Footage Closings
Completed
homes/homes
Under
Construction(1)
Finished
Lots
Base Home
Prices(2)
1 16 1,435 7 3 6 $524,990
2 35 1,663 18 5 12 $545,990
3 42 1,840 18 6 18 $557,990
4 45 1,976 21 7 17 $564,990
5 41 2,139 14 9 18 $581,990
6 45 2,389 16 9 20 $606,990
Total 224 94 39 91
(1) Completed homes/homes under construction consist of three completed model homes and 16 production homes under construction.
(2) Base home prices shown exclude lot premiums, options and extras and any incentives or price reductions. Base sales prices are subject to change.

Villa Real at Terracina. The Villa Real neighborhood is planned to consist of 178 single-family homes with six two-story floor plans ranging in size from 1,539 to 2,517 square feet with three to four bedrooms and two car garages. As of September 25, 2025, the base sales prices within the Villa Real neighborhood ranged from $527,990 to $610,990. The smaller three floor plans are all single story, while the larger three offer two story floor plans. The Villa Real homes also offer options for up to six bedrooms. As of September 25, 2025, the Developer had conveyed 95 of the single-family homes planned within the Villa Real neighborhood to individual homeowners, 18 homes had been completed and were owned by the Developer (including 3 model homes), 18 homes under construction (14 of which were in escrow) and 47 finished lots (12 of which were in escrow). Sales of the Villa Real single-family detached homes began in September 2023 and the final Villa Real homes are currently projected to be conveyed to individual homeowners in March 2026.

The table below shows the development and ownership status of the lots within the Villa Real neighborhood as of November 1, 2025.
32 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

VILLA REAL NEIGHBORHOOD
(As of November 1, 2025)
Owned by KB Home
Plan
Total
Units
Planned
Estimated
Home
Square
Footage Closings
Completed
Homes/Homes
Under
Construction(1)
Finished
Lots
Base Home
Prices(2)
1 30 1,539 18 6 6 $527,990
2 27 1,742 15 4 8 $544,990
3 30 2,027 17 7 6 $568,990
4 31 2,218 14 6 11 $581,990
5 30 2,453 16 6 8 $610,990
6 30 2,517 17 5 8 $595,990
Total 178 97 34 47
(1) Completed homes/homes under construction consist of three completed model homes and 18 production homes under construction.
(2) Base home prices shown exclude lot premiums, options and extras and any incentives or price reductions. Base sales prices are subject to change.

KB Home
General. KB HOME Coastal, Inc., a California corporation (previously defined in this Official Statement as “KB Home” or “the Developer”) purchased the taxable property within the District in June, 2021.

The Developer is a wholly-owned subsidiary of KB Home, a Delaware corporation (“KB Home Corporation”), whose principal executive offices are located in Los Angeles, California. KB Home Corporation is a publicly traded company listed on the New York Stock Exchange under the ticker symbol “KBH.” Founded in 1957, KB Home Corporation constructs and sells homes through its operating divisions under the name “KB Home.” KB Home Corporation’s ongoing principal operations are in nine states, including California, Arizona, Nevada, Colorado, Texas, Florida, North Carolina, Idaho and Washington within 49 major markets. KB Home Corporation first developed homes in California in 1963. KB Home Corporation’s homebuilding operations offer a variety of homes designed primarily for first-time, move-up and active adult homebuyers, including attached and detached single-family homes, townhomes and condominiums.

KB Home Corporation is subject to the informational reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and in accordance therewith is obligated to file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”). Such filings set forth, among other things, certain data relative to the consolidated results of operations and financial position of KB Home Corporation and its subsidiaries. KB Home Corporation’s SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov, and at KB Home Corporation’s website at www.kbhome.com.

The foregoing websites are and references to filings with the SEC are given for reference and convenience only, and the information on such websites and on file with the SEC does not form a part of this Official Statement and is not incorporated by reference herein. No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on such websites. KB Home and KB Home Corporation are not obligated to advance funds for construction or development or to pay ad valorem property taxes or the Special Taxes and investors should not rely on the information and financial statements contained on such websites in evaluating whether to buy, hold or sell the Bonds. The information contained on such websites may be incomplete or inaccurate and has not been reviewed by the City, the District or the Underwriter.
33 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Financing Plan. Through November 1, 2025, KB Home had spent approximately $24,000,000 in acquiring its land in the District and approximately $79,185,000 in site development costs, permits and impact fees, home construction costs, and other development, marketing and sales costs (exclusive of internal financing repayment, corporate overhead and other carry costs) related to its development within the District. KB Home expects to spend approximately $13,150,000 in additional site development costs, permit and impact fees, home construction costs, and other development, marketing and sales costs (exclusive of corporate overhead and other carry costs) between November 1, 2025 and full build-out of the homes proposed to be constructed in the District.

To date, KB Home has financed its land acquisition, site development and home construction costs related to its property within the District through internally generated funds. KB Home expects to use internal funding (which may include home sales revenues from its project within the District) to complete its development activities within the District. However, home sales revenues from KB Home’s activities in the District are not segregated and set aside for completing the homes in the District. Notwithstanding the foregoing, KB Home believes that it will have sufficient funds to complete its construction and sale of homes in the District.

Except as described in this Official Statement and except for those consents, permits, authorizations, certifications and approvals of governmental entities required in the ordinary course of development, KB Home has no actual knowledge of any impediment to construction or obtaining land use entitlements which could be reasonably expected to have a material adverse effect on its ability to complete the planned development of its property within the District as described in the Official Statement. Although the information in this Official Statement reflects the current development expectations of KB Home, no assurance can be given that home construction and sales will be carried out on the schedule and according to the plans described herein, or that the home construction and sale plans or base prices set forth herein will not change after the date of this Official Statement. KB Home reserves the right to change its development at any time without notice. Additionally, homes under contract to be sold may not result in closed escrows as sales contracts are subject to cancellation.

See “SPECIAL RISK FACTORS – Concentration of Property Ownership”.

SPECIAL RISK FACTORS
The Bonds have not been rated by any rating agency, and the purchase of the Bonds involves significant risks that are not appropriate for certain investors. The following is a discussion of certain risk factors which should be considered, in addition to other matters set forth herein, in evaluating the investment quality of the Bonds. This discussion does not purport to be comprehensive or definitive and does not purport to be a complete statement of all factors which may be considered as risks in evaluating the credit quality of the Bonds. The occurrence of one or more of the events discussed herein could adversely affect the ability or willingness of property owners in the District to pay their Special Taxes when due. Such failures to pay Special Taxes could result in the inability of the District to make full and punctual payments of debt service on the Bonds. In addition, the occurrence of one or more of the events discussed herein could adversely affect the value of the property in the District. See “— Property Values” below.

Risks of Real Estate Secured Investments Generally
The Bond Owners will be subject to the risks generally incident to an investment secured by real estate, including, without limitation: (i) adverse changes in local market conditions, such as changes in the market value of real property in the vicinity of the District, the supply of or demand for competitive properties in such area, and the market value of residential property or buildings and/or sites in the event of sale or foreclosure; (ii) changes in real estate tax rates and other operating expenses, governmental rules (including, without limitation, zoning laws and laws relating to endangered species and hazardous materials) and fiscal policies; (iii) natural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses; (iv) adverse changes in local market conditions; and (v) increased delinquencies due to rising mortgage costs and other factors.
34 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
No assurance can be given that the property owners within the District will pay Special Taxes in the future or that they will be able to pay such Special Taxes on a timely basis. See the caption “— Enforcement Delays — Bankruptcy” for a discussion of certain limitations on the District’s ability to pursue judicial proceedings with respect to delinquent parcels.

Insufficiency of Special Tax Revenues
As discussed below, the Special Taxes may not produce revenues sufficient to pay the debt service on the Bonds either due to nonpayment of the amounts levied or because acreage within the District becomes exempt from taxation due to the transfer of title to a public agency.

In order to pay debt service on the Bonds, it is generally necessary that the Special Taxes be paid in a timely manner. Should the Special Taxes not be paid on time, the District has established a Reserve Account under the Indenture to be maintained in an amount equal to the Reserve Requirement to pay debt service on the Bonds to the extent other funds are not available. See “SOURCES OF PAYMENT FOR THE BONDS — Reserve Account of the Special Tax Fund.” The District will covenant in the Indenture to maintain in the Reserve Account an amount equal to the Reserve Requirement, subject, however, to the availability of Net Taxes in amounts sufficient to do so and to the limitation that the District may not levy the Special Tax in any Fiscal Year at a rate in excess of the maximum amounts permitted under the Rate and Method. See Appendix A and Appendix E hereto. As a result, if a significant number of Special Tax delinquencies occurs within the District, the District could be unable to replenish the Reserve Account to the Reserve Requirement due to the limitations on the amount of the Special Tax that may be levied. If such defaults were to continue in successive years, the Reserve Account could be depleted and a default on the Bonds could occur.

The Act provides that, if any property within the District not otherwise exempt from the Special Tax is acquired by a public entity through a negotiated transaction, or by gift or devise, the Special Tax will continue to be levied on and enforceable against the public entity that acquired the property. In addition, the Act provides that, if property subject to the Special Tax is acquired by a public entity through eminent domain proceedings, the obligation to pay the Special Tax with respect to that property is to be treated as if it were a special assessment and be paid from the eminent domain award. The constitutionality and operation of these provisions of the Act have not been tested in the courts, but it is doubtful that they would be upheld as to, for example, property owned by the federal government. If for any reason property within the District becomes exempt from taxation by reason of ownership by a non-taxable entity such as the federal government or another public agency, subject to the limitation of the Maximum Special Tax, the Special Tax will be reallocated to the remaining taxable parcels within the District. This would result in the owners of such property paying a greater amount of the Special Tax and could have an adverse impact upon their willingness and/or ability to pay the Special Tax. Moreover, if a substantial portion of additional land within the District became exempt from the Special Tax because of public ownership, or otherwise, the Maximum Special Tax which could be levied upon the remaining acreage might not be sufficient to pay principal of and interest on the Bonds when due and a default will occur with respect to the payment of such principal and interest.

The District will covenant in the Indenture that, under certain circumstances, it will institute foreclosure proceedings to sell any property with delinquent Special Taxes in order to obtain funds to pay debt service on the Bonds. If foreclosure proceedings were ever instituted, any mortgage or deed of trust holder could, but would not be required to, advance the amount of the delinquent Special Tax to protect its security interest. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales” for provisions which apply in the event of such foreclosure and which the District is required to follow in the event of delinquencies in the payment of the Special Tax.

In the event that sales or foreclosures of property are necessary, there could be a delay in payments to Owners of the Bonds (if the Reserve Account has been depleted) pending such sales or the prosecution of such foreclosure proceedings and receipt by the City on behalf of the District of the proceeds of sale. The District may adjust the future Special Tax levied on taxable parcels in the District, subject to limitations described above 35 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
under the caption “THE DISTRICT — Rate and Method of Apportionment,” to provide an amount required to pay interest on and principal of the Bonds, and the amount, if any, necessary to replenish the Reserve Account to an amount equal to the Reserve Requirement, and to pay all current expenses. There is, however, no assurance that the total amount of the Special Tax that could be levied and collected against taxable parcels in the District will be at all times sufficient to pay the amounts required to be paid by the Indenture, even if the Special Tax is levied at the Maximum Special Tax rates. See “— Enforcement Delays — Bankruptcy.” No assurance can be given that the real property subject to sale or foreclosure will be sold, or if sold, that the proceeds of sale will be sufficient to pay any delinquent installments of the Special Tax. The Act does not require the City to purchase or otherwise acquire any lot or parcel of property to be sold at foreclosure if there is no other purchaser at such sale. The Act and the Indenture do specify that the Special Tax will have the same lien priority as for ad valorem property taxes in the case of delinquency. Section 53356.6 of the Act requires that property sold pursuant to foreclosure under the Act be sold for not less than the amount of judgment in the foreclosure action, plus post judgment interest and authorized costs, unless the consent of the owners of 75% of the Outstanding Bonds is obtained.

Prior to July 1, 1983, the right of redemption from foreclosure sales was limited to a period of one year from the date of sale. Under legislation effective July 1, 1983, the statutory right of redemption from such foreclosure sales has been repealed. However, a period of 20 days must elapse after the date on which the notice of levy of the interest in real property was served on the judgment debtor before the sale of such lot or parcel can be made. Furthermore, if the purchaser at the sale is the judgment creditor (e.g., the District), an action may be commenced by the delinquent property owner within 90 days after the date of sale to set aside such sale. The constitutionality of the aforementioned legislation, which repeals the one year redemption period, has not been tested and there can be no assurance that, if tested, such legislation will be upheld. (Section 701.680 of the Code of Civil Procedure of the State.)
Impact of Economic Conditions on the Development in the District Certain events and factors which negatively affect the regional, State and national economies could have an adverse effect on the pace at which the current or any future developers in the District can complete the remaining infrastructure and future homes, and demand by, and the ability of individuals to purchase homes within the District. Such events and factors could include rising inflation and interest rates, persistent supply chain issues and global market instability caused by geopolitical events. Any adverse impact of the foregoing and other economic factors on the project in the District and the real estate market in general cannot be predicted.

Increasing Mortgage Interest Rates
Increases in mortgage interest rates could have a negative impact on the estimated absorption rates of the planned for-sale residential units in the District described herein. With respect to entry-level households, increased mortgage interest rates may adversely impact the affordability of homes and may increase mortgage payment levels for owning a lower-priced home relative to renting a residence, thereby making purchasing less attractive. With respect to move-up households, higher mortgage interest rates may impact the desire of current homeowners to move from their present home due to the fact that their present home likely has a relatively low mortgage interest rate. In addition, in such instances, a new home would likely have a higher interest rate on a new mortgage loan as well as a higher purchase price and property taxes. Such considerations may decrease the desire for move-up households to purchase a new home. The foregoing factors could reduce demand for and/or the ability to achieve the sales prices of the planned for-sale homes within the District as described herein.

Concentration of Ownership
Based on ownership status as of September 25, 2025 (and assuming none of the 65 homes or lots under construction and in escrow close to individual homeowners), individual homeowners and KB Home are expected 36 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
to be responsible for approximately 61.4% and 38.6%, respectively, of the Fiscal Year 2025-26 Special Tax levy.

The timely payment of principal of and interest on the Bonds depends upon the willingness and ability of the current and future property owners in the District to pay the Special Taxes prior to delinquency. General and local economic conditions and governmental requirements or restrictions may affect the willingness of the current property owners, or any successor property owners, to pay the Special Taxes, and there is no assurance that the current property owners, or any successor property owners, will pay such Special Taxes even if financially able to do so. Due to the concentration of ownership of the property within the District, a failure by KB Home or any successor property owner thereto to pay the Special Taxes may result in a default in the payment of debt service on the Bonds. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” Failure to Develop Properties
Development of property within the District may be subject to unexpected delays, disruptions and changes which may affect the willingness and ability of KB Home, any future developers, or any property owner to pay the Special Tax when due. Land development is subject to comprehensive federal, State and local regulations. Approval is required from various agencies in connection with the layout and design of developments, the nature and extent of improvements, construction activity, land use, zoning, school and health requirements, as well as numerous other matters. There is always the possibility that such approvals will not be obtained or, if obtained, will not be obtained on a timely basis. See “PROPERTY OWNERSHIP AND THE DEVELOPMENT.” Failure to obtain any such agency approval or satisfy such governmental requirements would adversely affect planned land development. Development of land in the District is also subject to the availability of water. Finally, development of land is subject to economic considerations.

As of the date of this Official Statement, the property owned by the KB Home ranged from completed homes to partially improved lots. No assurance can be given that the remaining proposed development will be partially or fully completed; and for purposes of evaluating the investment quality of the Bonds, prospective purchasers should consider the possibility that such parcels will remain unimproved.

Undeveloped or partially developed land is inherently less valuable than developed land and provides less security to the Holders should it be necessary for the District to foreclose on the property due to the nonpayment of the Special Tax. The failure to complete development in the District as planned, or substantial delays in the completion of the development due to litigation or other causes may reduce the value of the property within the District and increase the length of time during which the Special Tax will be payable from undeveloped property, and may affect the willingness and ability of the owners of property within the District to pay the Special Tax when due.

There can be no assurance that land development within the District will not be adversely affected by future deterioration of the real estate market and economic conditions or future local, State and federal governmental policies relating to real estate development, an increase in mortgage interest rates, the income tax treatment of real property ownership, or the national economy. A slowdown of the development process and the absorption rate could adversely affect land values and reduce the ability or desire of the property owners to pay the Special Tax. In that event, there could be a default in the payment of principal of, and interest on, the Bonds when due.

Holders of Bonds should assume that any event that significantly impacts the ability to develop land in the District would cause the property values within the District to decrease substantially from those estimated by the Appraiser and could affect the willingness and ability of the owners of land within the District to pay the Special Tax when due.

The District began to levy the Special Tax on Developed Property beginning in Fiscal Year 2024-25 and in future fiscal years until the Special Tax levied on Developed Property is sufficient to fund the Special Tax 37 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Requirement. Undeveloped property is less valuable per unit of area than property with improvements thereon, especially if there are no plans to develop such land or if there are severe restrictions on the development of such land. Undeveloped property also provides less security to the Holders should it be necessary for the District to foreclose on such undeveloped property due to the nonpayment of the Special Tax. Furthermore, an inability to develop the land within the District as currently proposed will make the Holders dependent upon timely payment of the Special Tax levied on undeveloped property. A slowdown or stoppage in the continued development of the District could reduce the willingness and ability KB Home to make Special Tax payments on undeveloped property that they own and could greatly reduce the value of such property in the event it has to be foreclosed upon. See “— Property Values.”
Property Values
The value of the property within the District is a critical factor in determining the investment quality of the Bonds. If a property owner is delinquent in the payment of Special Taxes, the District’s only remedy is to commence foreclosure proceedings against the delinquent parcel in an attempt to obtain funds to pay the Special Taxes. Reductions in property values due to a downturn in the economy, physical events such as earthquakes, fires or floods, stricter land use regulations, delays in development or other events will adversely impact the security underlying the Special Taxes. See “THE DISTRICT — Appraisal Report” and APPENDIX D — “APPRAISAL REPORT.”
The Appraiser has estimated, on the basis of certain assumptions and limiting conditions contained in the Appraisal Report, that as of the Date of Value, the minimum market value of the land and improvements within the District was approximately $155,374,399. See “THE DISTRICT — Appraisal Report.” The Appraisal Report indicates the Appraiser’s opinion as to the market value of the properties referred to therein as of the date and under the conditions specified therein. The Appraiser’s opinion reflects conditions prevailing in the applicable market as of the Date of Value. The Appraiser’s opinion does not predict the future value of the subject property, and there can be no assurance that market conditions will not change adversely in the future.

Prospective purchasers of the Bonds should not assume that the taxable land within the District could be sold for the appraised amount or for the assessed values at a foreclosure sale for delinquent Special Taxes. In arriving at the estimate of minimum market value of the property in the District, the Appraiser assumes that any sale will be unaffected by undue stimulus and will occur following a reasonable marketing period, which is not always present in a foreclosure sale. See Appendix D for a description of other assumptions made by the Appraiser and for the definitions and limiting conditions used by the Appraiser. Any event which causes one of the Appraiser’s assumptions to be untrue could result in a reduction of the value of the taxable land and improvements within the District from the market value estimated by the Appraiser.

No assurance can be given that any bid will be received for a parcel with delinquent Special Taxes offered for sale at foreclosure or, if a bid is received, that such bid will be sufficient to pay all delinquent Special Taxes. See “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.”
Natural Disasters
The market value of the property within the District, like all California communities, may be adversely affected by a variety of factors which may affect public and private improvements. Such additional factors include, without limitation, geologic conditions (such as earthquakes), topographic conditions (such as earth movements) and climatic conditions (such as droughts, fire hazard and floods).

With respect to geologic conditions, building codes require that some of these factors be taken into account in the design of private improvements of the parcels, and the County has adopted the Uniform Building Code standards with regard to seismic standards. Design criteria are established upon the basis of a variety of considerations and may change, leaving previously designed improvements unaffected by more stringent 38 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
subsequently established criteria. In general, design criteria reflect a balance at the time of establishment between the present costs of protection and the future costs of lack of protection, based in part upon a present perception of the probability that the condition will occur and the seriousness of the condition should it occur.

Consequently, neither the absence of nor the establishment of design criteria with respect to any particular condition means that the applicable governmental agency has evaluated the condition and has established design criteria in the situations in which such criteria are needed to preserve value, or has established such criteria at levels that will preserve value. To the contrary, the District expects that one or more of such conditions may occur and may result in damage to improvements of varying seriousness, that the damage may entail significant repair or replacement costs and that repair or replacement may never occur either because of the cost, because repair or replacement will not facilitate habitability or other use, or because other considerations preclude such repair or replacement. Under any of these circumstances, the actual value of the parcels may well depreciate or disappear, notwithstanding the establishment of design criteria for any such condition.

Southern California is a seismically active area. Seismic activity represents a potential risk for damage to buildings, roads, bridges and property within the District. In addition, land susceptible to seismic activity may be subject to liquefaction during the occurrence of such event.

In recent years, wildfires have caused extensive damage throughout the State, including within the County and the City. Certain of these fires have burned thousands of acres and destroyed hundreds and in some cases thousands of homes. In some instances entire neighborhoods have been destroyed. Several fires in recent years damaged or destroyed property in areas that were not previously considered to be at risk from such events.

In particular, certain electrical operators in the State have seen their distribution/transmission lines cause billions of dollars in property damage and the loss of lives. In 2023, as in several prior years, for example, devastating wildfires burned in various communities in the State, causing wide-spread damage. In 2025, communities in Los Angeles County, including Pacific Palisades, Malibu and Altadena, experienced widespread devastation from wildfires causing losses of life, thousands of burned homes, and billions of dollars in property damage.

Riverside County is also periodically subject to large-scale wildfires and is expected to be subject to wildfires in the future. In recent years, wildfires have burned hundreds of acres at a time and destroyed dozens of homes and structures in Riverside County. The District experience high winds known as Santa Ana winds which frequently accompany and magnify the intensity of wildfires. There is a risk of homes within the District being destroyed by wildfires and no assurance can be given as to the severity or frequency of wildfires within the vicinity of the District. Additionally, property located adjacent to burn areas can be subject to mudslides and flooding, which can cause significant damage and destruction to property.

In 2018, the Holy Fire was a wildfire which burned in the Cleveland National Forest in Orange and Riverside counties. Certain portions of the City were placed under evacuation orders. While no structures within the City were lost as a result of such wildfire, the City incurred significant costs as a result of such event, which costs were substantially reimbursed to the City from the State and federal governments.

In 2024, the Airport Fire was a wildfire which burned approximately 23,526 acres in Orange and Riverside counties. The Airport Fire burned in the Santa Ana Mountains and resulted in the evacuation of approximately 6,000 residents of the City While no structures within the City were damaged as a result of such wildfire, nearby communities incurred property damage from the wildfire. No property in the City or the District were damaged by the Holy Fire or the Airport Fire.

On January 16, 2025, Governor Gavin Newsom issued Executive Order N-10-25 (the “Governor’s Order) which canceled penalties, costs and interest on overdue property taxes (including special taxes) within certain zip codes affected by the Palisades and Eaton Fires during calendar year 2025. This will likely cause a delay in the payment of special taxes by certain property owners in any community facilities districts affected by Governor’s Order. Unless the majority of property owners within any such community facilities districts pay their special taxes voluntarily or have mortgage impound accounts, it is likely that the community facilities districts will need to draw upon a reserve fund to make debt service payments on outstanding bonds prior to the expiration of the Governor’s Order and it is possible that outstanding bonds will experience a payment default. 39 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
In the event of a major fire or other natural disaster affecting the District, a similar order affecting the District could impact the debt service payment for the Bonds.

In March 2025, the California Department of Forestry and Fire Protection (“Cal Fire”) released an updated Fire Hazard Severity Zone map for the Southern California region. The Cal Fire Hazard Severity Zone maps evaluate fire hazard, which is defined as the likelihood and expected fire behavior over a 30 to 50-year period without considering mitigation measures such as home hardening, recent wildfire or fuel reduction efforts, as opposed to risk, which is the potential damage a fire can do to the area under existing conditions, accounting for any modifications such as fuel reduction projects, defensible space, and ignition resistant building construction. Pursuant to State law, the State Fire Marshal is mandated to classify the state responsibility areas where the state has financial responsibility for wildfire protection and prevention into Fire Hazard Severity Zones classified as “Moderate,” “High” or “Very High.” In areas designated as local responsibility areas, where local agencies have financial responsibility for wildfire protection and prevention, Cal Fire’s Fire Hazard Severity Zone maps make recommendations for the classification of Moderate, High or Very High Fire Hazard Severity Zones and the local agencies must adopt maps which either adopt Cal Fire’s recommendations or place the relevant areas in a higher classification. For more information on Cal Fire’s Fire Hazard Severity Zone maps, see the Cal Fire website. The District is located in an area which the Cal Fire has designated as a very high Fire Hazard Severity Zone.

There is a risk of residential property within the District being destroyed by wildfires and no assurance can be given as to the severity or frequency of wildfires within the vicinity of the District. Additionally, property located adjacent to burn areas can be subject to mudslides and flooding, which can cause significant damage and destruction to property.

In the event of a severe earthquake, fire, flood or other natural disaster, there may be significant damage to both property and infrastructure in some or all of the District. As a result, a substantial portion of the property owners within some or all of the District may be unable or unwilling to pay the respective Special Taxes when due. In addition, the value of land in the District could be diminished in the aftermath of such a natural disaster, reducing the resulting proceeds of foreclosure sales in the event of delinquencies in the payment of the Special Taxes.

Hazardous Substances
While government taxes, assessments and charges are a common claim against the value of a parcel, other less common claims may also be relevant. One of the most serious in terms of the potential reduction in the value of a parcel is a claim with regard to a hazardous substance. In general, the owners and operators of a parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Super Fund Act,” is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar in effect. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of a parcel whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance.

The effect, therefore, should any of the parcels within the District be affected by a hazardous substance, is to reduce the marketability and value by the costs of remedying the condition.

The District is not aware of the presence of any federally or state classified hazardous substances in violation of any environmental laws, located on the property within the District. However, it is possible that such materials do currently exist and that the District is not aware of them.

It is possible that property in the District may be liable for hazardous substances in the future as a result of the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or the existence, currently, on the property of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may 40 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
arise not simply from the existence of a hazardous substance but from the method of handling such substance.

All of these possibilities could have the effect of reducing the value of the applicable property.

Enforcement Delays – Bankruptcy
In the event of a delinquency in the payment of the Special Taxes, the District is required to commence enforcement proceedings under the circumstances described under the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” However, prosecution of such proceedings could be delayed due to crowded local court calendars or by bankruptcy, insolvency and other laws generally affecting creditors’ rights (such as the Soldiers’ and Sailors’ Relief Act of 1940) and by the laws of the State relating to judicial and non-judicial foreclosure. Although bankruptcy proceedings would not cause the liens of the Special Taxes to become extinguished, bankruptcy of a person or entity with an interest in the applicable property could result in a delay in the enforcement proceedings because federal bankruptcy laws provide for an automatic stay of foreclosure and tax sale proceedings. Any such delay could increase the likelihood of delay or default in payment of the principal of and interest on the Bonds. The various legal opinions to be delivered in connection with the issuance of the Bonds, including Bond Counsel’s approving legal opinion, are qualified as to the enforceability of the Bonds and the Indenture by reference to bankruptcy, reorganization, moratorium, insolvency and other laws affecting the rights of creditors generally or against public entities such as the District.

Special Tax Delinquencies
Under provisions of the Act, the Special Taxes, from which funds necessary for the payment of principal of, and interest on, the Bonds are derived, will be billed to the properties within the District on the regular ad valorem property tax bills sent to owners of such properties by the County Tax Collector. The Act currently provides that such Special Tax installments are due and payable, and bear the same penalties and interest for non-payment, as do ad valorem property tax installments.

See APPENDIX E — “SUMMARY OF THE INDENTURE — COVENANTS AND WARRANTY — Covenants” for a discussion of the provisions which apply, and procedures which the District is obligated to follow under the Indenture, in the event of delinquencies in the payment of Special Taxes. See “— FDIC/Federal Government Interests in Parcels” for a discussion of the policy of the Federal Deposit Insurance Corporation regarding the payment of special taxes and assessment and limitations on the District’s ability to foreclosure on the lien of the Special Taxes in certain circumstances.

FDIC/Federal Government Interests in Parcels
The ability of the District to collect interest and penalties specified by the Act and to foreclose the lien of delinquent Special Taxes may be limited in certain respects with regard to parcels in which the Federal Deposit Insurance Corporation (the “FDIC”), or other federal government entities such as Fannie Mae or Freddie Mac, has or obtains an interest.

In the case of the FDIC, in the event that any financial institution making a loan which is secured by parcels is taken over by the FDIC and the applicable Special Tax is not paid, the remedies available to the District may be constrained. The FDIC’s policy statement regarding the payment of state and local real property taxes (the “Policy Statement”) provides that taxes other than ad valorem taxes which are secured by a valid lien in effect before the FDIC acquired an interest in a property will be paid unless the FDIC determines that abandonment of its interests is appropriate. The Policy Statement provides that the FDIC generally will not pay installments of non-ad valorem taxes which are levied after the time the FDIC acquires its fee interest, nor will the FDIC recognize the validity of any lien to secure payment except in certain cases where the Resolution Trust Corporation had an interest in property on or prior to December 31, 1995. Moreover, the Policy Statement provides that, with respect to parcels on which the FDIC holds a mortgage lien, the FDIC will not permit its lien to be foreclosed out by a taxing authority without its specific consent, nor will the FDIC pay or recognize liens for any penalties, fines or similar claims imposed for the nonpayment of taxes. 41 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
The FDIC has taken a position similar to that expressed in the Policy Statement in legal proceedings brought against Orange County in United States Bankruptcy Court and in Federal District Court. The Bankruptcy Court issued a ruling in favor of the FDIC on certain of such claims. Orange County appealed that ruling, and the FDIC cross-appealed. On August 28, 2001, the Ninth Circuit Court of Appeals issued a ruling favorable to the FDIC except with respect to the payment of pre-receivership liens based upon delinquent property tax.

The District is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency with respect to parcels in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed out at a judicial foreclosure sale would prevent or delay the foreclosure sale.

In the case of Fannie Mae and Freddie Mac, in the event a parcel of taxable property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, or a private deed of trust secured by a parcel of taxable property is owned by a federal government entity or federal government sponsored entity, such as Fannie Mae or Freddie Mac, the ability to foreclose on the parcel or to collect delinquent Special Taxes may be limited. Federal courts have held that, based on the supremacy clause of the United States Constitution “this Constitution, and the Laws of the United States which shall be made in Pursuance thereof; and all Treaties made, or which shall be made, under the Authority of the United States, shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, anything in the Constitution or Laws of any State to the contrary notwithstanding.” In the absence of Congressional intent to the contrary, a state or local agency cannot foreclose to collect delinquent taxes or assessments if foreclosure would impair the federal government interest. This means that, unless Congress has otherwise provided, if a federal government entity owns a parcel of taxable property but does not pay taxes and assessments levied on the parcel (including Special Taxes), the applicable state and local governments cannot foreclose on the parcel to collect the delinquent taxes and assessments.

Moreover, unless Congress has otherwise provided, if the federal government has a mortgage interest in the parcel and the District wishes to foreclose on the parcel as a result of delinquent Special Taxes, the property cannot be sold at a foreclosure sale unless it can be sold for an amount sufficient to pay delinquent taxes and assessments on a parity with the Special Taxes and preserve the federal government’s mortgage interest. For a discussion of risks associated with taxable parcels within the District becoming owned by the federal government, federal government entities or federal government sponsored entities, see “—Insufficiency of Special Tax Revenues.”
The District’s remedies may also be limited in the case of delinquent Special Taxes with respect to parcels in which other federal agencies (such as the Internal Revenue Service and the Drug Enforcement Administration) have or obtain an interest.

Direct and Overlapping Indebtedness
The ability of an owner of property within the District to pay the applicable Special Taxes could be affected by the existence of other taxes and assessments imposed upon taxable parcels. See “THE DISTRICT — Direct and Overlapping Debt” herein. The City and other public agencies whose boundaries overlap those of the District could impose additional taxes or assessment liens on the property within the District in order to finance public improvements or services to be located or provided inside of or outside of such area. The lien created on the property within the District through the levy of such additional taxes may be on a parity with the lien of the Special Taxes applicable to the property within the District.

The imposition of additional liens on a parity with the Special Taxes may reduce the ability or willingness of property owners to pay the Special Taxes and increase the possibility that foreclosure proceeds will not be adequate to pay delinquent Special Taxes. The District will covenant in the Indenture not to issue Parity Bonds other than for refunding all of a portion of the Bonds or Parity Bonds. 42 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
Payment of Special Taxes is not a Personal Obligation of the Property Owners An owner of a taxable parcel is not personally obligated to pay Special Taxes. Rather, Special Taxes are an obligation which is secured only by a lien against the taxable parcel. If the value of a taxable parcel is not sufficient, taking into account other liens imposed by public agencies, to secure fully Special Taxes, the District has no recourse against the property owner.

No Acceleration Provision
The Bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Indenture.

Limited Obligations
The Bonds and interest thereon are not payable from the general funds of the City. Except with respect to the Net Taxes, neither the credit nor the taxing power of the District or the City is pledged for the payment of the Bonds or the interest thereon, and, except as provided in the Indenture, no Owner of the Bonds may compel the exercise of any taxing power by the District or the City or force the forfeiture of any City or District property.

The principal of, premium, if any, and interest on the Bonds are not a debt of the City or a legal or equitable pledge, charge, lien or encumbrance upon any of the City’s or the District’s property or upon any of the City’s or the District’s income, receipts or revenues, except the Net Taxes and other amounts pledged under the Indenture.

The District’s legal obligations with respect to any delinquent Special Taxes are limited to: (i) payments from the Reserve Account to the extent of funds on deposit therein; and (ii) the institution of judicial foreclosure proceedings under certain circumstances with respect to any parcels for which Special Taxes are delinquent. See the caption “SOURCES OF PAYMENT FOR THE BONDS — Special Taxes — Proceeds of Foreclosure Sales.” The Bonds cannot be accelerated in the event of any default.

The obligation to pay Special Taxes does not constitute a personal obligation of the current or subsequent owners of the respective parcels which are subject to such liens. See the caption “— Payment of the Special Tax is Not a Personal Obligation of the Property Owners.” Enforcement of Special Tax payment obligations by the District is limited to judicial foreclosure in the Superior Court of California, County of Riverside. There is no assurance that any current or subsequent owner of a parcel subject to a Special Tax lien will be able to pay the amounts due or that such owner will choose to pay such amounts even though financially able to do so.

Failure by owners of the parcels to pay Special Tax installments when due, delay in foreclosure proceedings, or the inability of the District to sell parcels that have been subject to foreclosure proceedings for amounts sufficient to cover the delinquent installments of Special Taxes levied against such parcels may result in the inability of the District to make full or timely payments of debt service on the Bonds, which may in turn result in the depletion of the Reserve Account. See the caption “— Enforcement Delays — Bankruptcy.” Ballot Initiatives
Articles XIII A, XIII B, XIII C, and XIII D of the California Constitution were adopted pursuant to measures qualified for the ballot pursuant to the State’s constitutional initiative process. From time to time, other initiative measures could be adopted by California voters. The adoption of any such initiative might place limitations on the ability of the State, the City, or other local agencies to increase revenues or to increase appropriations.
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Proposition 218
An initiative measure commonly referred to as the “Right to Vote on Taxes Act” (the “Initiative”) was approved by the voters of the State of California at the November 5, 1996 general election. The Initiative added Article XIIIC and Article XIIID to the California Constitution. According to the “Title and Summary” of the Initiative prepared by the California Attorney General, the Initiative limits “the authority of local governments to impose taxes and property-related assessments, fees and charges.” The provisions of the Initiative continue to be interpreted by the courts. The Initiative could potentially impact the Special Taxes available to the Community Facilities Districts to pay the principal of and interest on the Bonds as described below.

Among other things, Section 3 of Article XIII states that “. . . the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge.” The MelloRoos Act provides for a procedure which includes notice, hearing, protest and voting requirements to alter the rate and method of apportionment of an existing special tax. However, the Mello-Roos Act prohibits a legislative body from adopting any resolution to reduce the rate of any special tax or terminate the levy of any special tax pledged to repay any debt incurred pursuant to the Mello-Roos Act unless such legislative body determines that the reduction or termination of the special tax would not interfere with the timely retirement of that debt. On August 1, 1997, a bill was signed into law by the Governor of the State enacting Government Code Section 5854, which states that:

Section 3 of Article XIIIC of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution.

Accordingly, although the matter is not free from doubt, it is likely that the Initiative has not conferred on the voters the power to repeal or reduce the Special Taxes if such reduction would interfere with the timely retirement of the Bonds.

The interpretation and application of the Initiative will continue to be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainty the outcome of such determination or the timeliness of any remedy afforded by the courts. See “SPECIAL RISK FACTORS — Limitations on Remedies.”
Litigation with Respect to Community Facilities Districts Shapiro. The California Court of Appeal, Fourth Appellate District, Division One, issued its opinion in City of San Diego v. Melvin Shapiro (2014) 228 Cal.App.4th 756 (the “San Diego Decision”). The case involved a Convention Center Facilities District (the “CCFD”) established by the City of San Diego (“San Diego”). The CCFD is a financing district much like a community facilities district established under the provisions of the Act. The CCFD is comprised of all of the real property in San Diego. However, the special tax to be levied within the CCFD was to be levied only on hotel properties located within the CCFD.

The election authorizing the special tax was limited to owners of hotel properties and lessees of real property owned by a governmental entity on which a hotel is located. Thus, the election was not a registered voter election. Such approach to determining who would constitute the qualified electors of the CCFD was modeled after Section 53326(c) of the Act, which generally provides that, if a special tax will not be apportioned in any tax year on residential property, the legislative body may provide that the vote shall be by the landowners of the proposed district whose property would be subject to the special tax. The Court held that the CCFD special tax election was invalid under the California Constitution because Article XIIIA, Section 4 thereof and Article XIIIC, Section 2 thereof require that the electors in such an election be the registered voters within the district.
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Horizon. The Sacramento County Superior Court issued a ruling in Horizon Capital Investments, LLC v. City of Sacramento et al. (Case No. 34-2017-80002661), which was a case involving an election to approve the levy of a special tax within a community facilities district (“CFD”) formed under the Act.

In 2017, the City of Sacramento initiated proceedings to form a CFD to finance certain costs to operate and maintain a streetcar line. As permitted by the Act, the proposed district included non-contiguous parcels of non-residential property. Because there were fewer than 12 registered voters residing within the territory of the proposed CFD, the City Council submitted the special tax proposed to be levied within the proposed CFD to the owners of land within the proposed CFD, as required by the Act. The proposed special tax received the requisite two-thirds vote in the landowner election.

Petitioners Horizon Capital Investments, LLC et al. filed a writ of mandate and complaint for reverse validation and declaratory relief. Petitioners argued, and the superior court agreed in its final ruling, that under section 4(a) of article XIII A of the California Constitution (which provides that “Cities, Counties and special districts, by a two-thirds vote of the qualified electors of such district [sic], may impose special taxes on such district…”) the phrase “qualified electors” means the registered voters of the entire City of Sacramento and not just the owners of the property within the boundaries of the proposed CFD. Citing the San Diego Decision, the tentative ruling states that the phrase “qualified electors of the district” refers to the registered voters of the entity imposing the special tax, which in this case was the City of Sacramento. Because the vote within the proposed CFD was by landowners only and not by all registered voters in the City of Sacramento, the final ruling states that the special tax is invalid.

The superior court’s final ruling is not binding upon other courts within the State and does not directly apply to the District, the Special Taxes, or the Bonds. The City of Sacramento did not appeal the superior court’s ruling.

The Special Tax Election in the District. With respect to the San Diego Decision, the facts of such case show that there were thousands of registered voters within the CCFD (viz., all of the registered voters in San Diego). The elections held in the District had less than 12 registered voters at the time of the election to authorize the Special Taxes. In the San Diego Decision, the court expressly stated that it was not addressing the validity of landowner voting to impose special taxes pursuant to the Act in situations where there are fewer than 12 registered voters. Thus, by its terms, the court’s holding in the San Diego Decision does not apply to the Special Tax election in the District. Moreover, Section 53341 of the Act provides that any “action or proceeding to attack, review, set aside, void or annul the levy of a special tax…shall be commenced within 30 days after the special tax is approved by the voters.” Similarly, Section 53359 of the Act provides that any action to determine the validity of bonds issued pursuant to the Act be brought within 30 days of the voters approving the issuance of such bonds. The petitioners in Horizon filed the writ of mandate within 30 days of the landowner election.

Voters in the District approved the Special Tax on March 8, 2022. Based on Sections 53341 and 53359 of the Act and analysis of existing laws, regulations, rulings and court decisions, the District believes that no successful challenge to the Special Tax being levied in accordance with the Rate and Method may now be brought. In connection with the issuance of the Bonds, Bond Counsel expects to deliver its opinion in the proposed form attached hereto as Appendix C.

Loss of Tax Exemption
As discussed under the heading “TAX MATTERS,” interest on the Bonds could cease to be excluded from gross income for purposes of federal income taxation, retroactive to the date the Bonds were issued, as a result of future acts or omissions of the District or the City. In addition, it is possible that future changes in applicable federal tax laws could cause interest on the Bonds to be included in gross income for federal income taxation or could otherwise reduce the equivalent taxable yield of such interest and thereby reduce the value of the Bonds.
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No Ratings – Limited Secondary Market
The District has not applied to have the Bonds rated by any nationally recognized bond rating company, and it does not expect to do so in the future.

There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Although the District has committed to provide certain financial and operating information, there can be no assurance that such information will be available to Bond owners on a timely basis. The failure to provide the required annual financial information does not give rise to monetary damages but merely an action for specific performance. Occasionally, because of general market conditions, lack of current information, the absence of a credit rating for the Bonds or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price.

Limitations on Remedies
Remedies available to the Owners of the Bonds may be limited by a variety of factors and may be inadequate to assure the timely payment of principal of and interest on the Bonds or to preserve the tax-exempt status of interest on the Bonds.

Bond Counsel has limited its opinion as to the enforceability of the Bonds and of the Indenture to the extent that enforceability may be limited by bankruptcy, insolvency reorganization, fraudulent conveyance or transfer, moratorium or other similar laws affecting generally the enforcement of creditor’s rights, by equitable principles and by the exercise of judicial discretion and by limitations on remedies against public agencies in the State of California. The lack of availability of certain remedies or the limitation of remedies may entail risks of delay, limitation or modification of the rights of the Owners.

Potential Early Redemption of Bonds from Prepayments or Community Facilities District Bond Proceeds
Property owners within the District are permitted to prepay their Special Taxes at any time. Such prepayments could also be made from the proceeds of bonds issued by or on behalf of an overlapping community facilities district. Such prepayments will result in a redemption of the Bonds on the Interest Payment Date for which timely notice may be given under the Indenture following the receipt of the prepayment. The resulting redemption of Bonds that were purchased at a price greater than par could reduce the otherwise expected yield on such Bonds. See the caption “THE BONDS — Redemption — Special Mandatory Redemption from Special Tax Prepayments.”
Cybersecurity
The City, like many other public and private entities, rely on computer and other digital networks and systems to conduct their operations. The City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. No assurance can be given that the efforts of the City to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of Special Taxes and the Trustee. No assurance can be given that the City and these other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.
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CONTINUING DISCLOSURE
District Continuing Disclosure
Pursuant to a Continuing Disclosure Certificate, dated as of January 1, 2026 (the “Disclosure Certificate”), to be executed and delivered by the District at the time of issuance of the Bonds, the District will covenant for the benefit of the holders and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the District by February 15 following the end of the District’s Fiscal Year (currently its Fiscal Year ends on June 30) (the “Annual Report”), commencing with the report for the Fiscal Year ending June 30, 2025, and to provide notices of the occurrence of certain enumerated events; provided, however, the initial Annual Report will consist only of this Official Statement and the audited financial statements of the District. The Annual Report and the notices of enumerated events will be filed by the District with EMMA. The specific nature of the information to be contained in the Annual Report and the notice of enumerated events is set forth in Appendix F — “FORM OF DISTRICT CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriter in complying with subsection (b)(5) of Rule 15c2-12.

The District has not had any continuing disclosure undertakings outstanding during the previous fiveyear period. Although the City and its affiliated entities other than the District (such as the Lake Elsinore Facilities Financing Authority, the Lake Elsinore Public Financing Authority, the City’s former redevelopment agency and its successor agency (the “Agency”), and other community facilities districts formed by the City) are not obligated persons pursuant to Rule 15c2-12 with respect to the Bonds, during the last five years the City and such affiliated entities failed to comply in certain respects with continuing disclosure obligations related to outstanding bonded indebtedness (the City Council of the City serves as the governing board of the Lake Elsinore Facilities Financing Authority, the Lake Elsinore Public Financing Authority, the Agency and all of the City’s community facilities districts). The failures to comply include late filings with respect to several annual reports, and failure to provide notice of late annual financial information, more specifically:
(1) Updated tabular and other operating information relating to the City, the Agency and community facilities districts for Fiscal Years 2018-19 and 2019-20 were filed late. (2) Failure to provide notices of the late filing of certain of the annual financial information that is described in item (1) above.
(3) Several of the annual reports included incomplete information relating to community facilities districts, including tax prepayment information, improvement fund balances and special tax delinquency information.

The City and its affiliated entities have made additional filings to provide certain of the previously omitted information.

The City has retained Spicer Consulting Group, LLC to serve as Dissemination Agent for the continuing disclosure undertaking related to the Bonds, and has adopted policies and procedures with respect to its continuing disclosure practices.

Developer Continuing Disclosure
KB Home will also covenant in a Developer Continuing Disclosure Certificate, the form of which is set forth in Appendix G, for the benefit of the Owners, to provide semi-annual reports containing updates of certain development information within the Official Statement regarding its property in the District and notices of certain significant events. The specific nature of the information to be contained in the semi-annual reports or notices of significant events and certain other terms of the continuing disclosure obligations of KB Home is contained in Appendix G — “FORM OF DEVELOPER CONTINUING DISCLOSURE CERTIFICATE.” 47 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
To the actual knowledge of KB Home, other than as disclosed below, KB Home has not failed to comply in any material respects with its previous undertakings by it to provide periodic continuing disclosure reports or notices of listed events with respect to community facilities districts or assessment district bond issues in southern California within the past five years.

However, in connection with a continuing disclosure undertaking entered into by KB HOME Greater Los Angeles Inc., a California corporation (“KB HOME LA”), an affiliate of KB Home, with respect to the $4,590,000 California Statewide Communities Development Authority Community Facilities District No. 2019- 01 (333 North Prairie) Special Tax Bonds, Series 2020, KB HOME LA filed its first periodic report due December 15, 2020 on December 18, 2020, or three days past the due date. A notice of termination of its reporting obligation was filed by KB HOME LA on or about December 13, 2021. Identification of the abovedescribed events does not constitute a representation by KB Home that any such events were material.

The obligations of KB Home under its Developer Continuing Disclosure Certificate will terminate upon the earliest to occur of: (i) the legal defeasance, prior redemption or payment in full of all of the Bonds; or (ii) the date on which KB Home and any affiliate of KB Home, collectively, have conveyed to homebuyers at least ______ of the 402 residential units planned to be constructed by KB Home in the District subject to the Special Tax.

TAX EXEMPTION
In the opinion of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals.

However, it should be noted that, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), generally certain corporations with more than $1,000,000,000 of average annual adjusted financial statement income, interest (and original issue discount) with respect to the Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed by Section 55 of the Code on such corporations.

In the further opinion of Bond Counsel, interest (and original issue discount) on the Bonds is exempt from State of California personal income tax.

The excess of the stated redemption price at maturity of a Bond over the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity is to be sold to the public) constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Beneficial Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Beneficial Owner will increase the Beneficial Owner’s basis in the applicable Bond.

Bond Counsel’s opinion as to the exclusion from gross income of interest (and original issue discount) on the Bonds is based upon certain representations of fact and certifications made by the District, the City and others and is subject to the condition that the District, the City and others making such representations comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds to assure that interest (and original issue discount) on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District and the City will covenant to comply with all such requirements.

The amount by which a Beneficial Owner’s original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium, which must be amortized under Section 171 of the Code; such 48 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051
amortizable Bond premium reduces the Beneficial Owner’s basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Beneficial Owner realizing a taxable gain when a Bond is sold by the Beneficial Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Beneficial Owner. Purchasers of the Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable Bond premium.

The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of taxexempt bond issues, including both random and targeted audits. It is possible that the Bonds will be selected for audit by the IRS. It is also possible that the market value of the Bonds might be affected as a result of such an audit of the Bonds (or by an audit of other similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the Bonds or their market value.

SUBSEQUENT TO THE ISSUANCE OF THE BONDS THERE MIGHT BE FEDERAL, STATE, OR

LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY CHANGES TO OR

INTERPRETATIONS OF FEDERAL, STATE, OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE,

OR LOCAL TAX TREATMENT OF THE BONDS INCLUDING THE IMPOSITION OF ADDITIONAL

FEDERAL INCOME OR STATE TAXES BEING IMPOSED ON OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE BONDS. NO ASSURANCE CAN BE GIVEN THAT

SUBSEQUENT TO THE ISSUANCE OF THE BONDS STATUTORY CHANGES WILL NOT BE

INTRODUCED OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF THE BONDS,

ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING

POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE BONDS.

Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture and the Tax Certificate relating to the Bonds permit certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income of interest (and original issue discount) on the Bonds for federal income tax purposes with respect to any Bond if any such action is taken or omitted based upon the advice of counsel other than Stradling Yocca Carlson & Rauth LLP.

Although Bond Counsel will render an opinion that interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes provided that the District and the City continue to comply with certain requirements of the Code, the ownership of the Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Bonds may otherwise affect the tax liability of certain persons.

Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Bonds.

Should interest on the Bonds (including any original issue discount) become includable in gross income for federal income tax purposes, the Bonds are not subject to early redemption and will remain outstanding until maturity or until redeemed in accordance with the Indenture.

A copy of the proposed form of opinion of Bond Counsel is attached hereto as Appendix C. 49 NG-U9ZQVMF2/4933-0339-0835v7/022042-0051

LEGAL OPINION
The legal opinion of Bond Counsel approving the validity of the Bonds, in substantially the form set forth as Appendix C hereto, will be made available to purchasers of the Bonds at the time of original delivery of the Bonds. Certain legal matters will be passed upon for the City and the District by Leibold, McClendon, & Mann, Irvine, California, City Attorney, and for the District by Stradling Yocca Carlson & Rauth LLP, Disclosure Counsel, for the Underwriter by Kutak Rock LLP, Irvine, California, and for the Trustee by its counsel. Bond Counsel undertakes no responsibility to the purchasers of the Bonds for the accuracy, completeness or fairness of this Official Statement.

ABSENCE OF LITIGATION
In connection with the issuance of the Bonds, the City Attorney will deliver an opinion to the effect that, to their actual knowledge, after due inquiry and investigation, there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or threatened, or any unfavorable decision, ruling or finding, against or affecting the District, which would adversely impact the District’s ability to complete the transactions described in, or contemplated by, the Indenture or this Official Statement, restrain or enjoin the collection of the Special Taxes, or in any way contest or affect the validity of the Bonds, the Indenture, the Special Taxes, or the transactions described herein.

NO RATING
The District has not made, and does not contemplate making, an application to any rating organization for the assignment of a rating on the Bonds.

UNDERWRITING
The Bonds are being purchased by Stifel, Nicolaus & Company, Incorporated (the “Underwriter”). The Underwriter has agreed to purchase the Bonds at a price of $____________ (being the $________ aggregate principal amount of the Bonds, [plus/less] a [net] original issue [premium/discount] of $__________, less an Underwriter’s discount of $__________. The Bond Purchase Agreement relating to the Bonds provides that the Underwriter will purchase all of the Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Bond Purchase Agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriter’s compensation is contingent upon the successful issuance of the Bonds.

Under certain circumstances, the Underwriter may offer and sell the Bonds to certain dealers and others at prices lower or yields higher than those stated on the page immediately following the cover page of this Official Statement. The offering prices may be changed from time to time by the Underwriter.

FINANCIAL INTERESTS
The fees being paid to the Underwriter and its counsel, Bond Counsel, Disclosure Counsel and the Trustee are contingent upon the issuance and delivery of the Bonds. From time to time, Stradling Yocca Carlson & Rauth LLP, represents the Underwriter on matters unrelated to the Bonds.

MUNICIPAL ADVISOR
The District has retained Urban Futures, Inc., Walnut Creek, California, as Municipal Advisor for the sale of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement.
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Urban Futures, Inc., is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.

MISCELLANEOUS
So far as any statements made in this Official Statement involve matters of opinion, assumptions, projections, anticipated events or estimates, whether or not expressly stated, they are set forth as such and not as presentations of fact, and actual results may differ substantially from those set forth therein. Neither this Official Statement nor any statement that may have been made verbally or in writing is to be construed as a contract with the Owners of the Bonds.

The summaries of certain provisions of the Bonds, statutes and other documents or agreements referred to in this Official Statement do not purport to be complete, and reference is made to each of them for a complete statement of their provisions. Copies are available for review by making requests to the City.

The execution and delivery of this Official Statement by the City Manager of the City has been duly authorized by the City Council of the City acting in its capacity as the legislative body of the District.

COMMUNITY FACILITIES DISTRICT NO. 2015-4 OF

THE CITY OF LAKE ELSINORE (TERRACINA)
By:

City Manager of the City of Lake Elsinore
A-1
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APPENDIX A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

AMENDED AND RESTATED

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

OF THE CITY OF LAKE ELSINORE
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Lake Elsinore Community Facilities District No. 2015-4 (Terracina) (“CFD No. 2015-4”). 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 the CFD No. 2015-4 by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, Public Property and/or Property Owner’s Association 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. 2015-4: 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 A 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. 2015-4 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2015-4 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2015- 4 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. 2015-4 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. 2015-4 for any other administrative purposes of CFD No. 2015-4, 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 levied, and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax is being levied.

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“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 A” means the Special Tax of that name described in Section D below. “Backup Special Tax A” means the Special Tax of that name described in Section D below. “Boundary Map” means a recorded map of the CFD which indicates the boundaries of the CFD. “Bonds” means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax A within CFD No. 2015-4 have been pledged. “Building Permit” means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permitsdocument(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the firstoriginal issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax A to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax A that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses. “Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.
“Calendar Year” means the period commencing January 1 of any year and ending the following December 31. “CFD Administrator” means an official of the City, or designee thereof, responsible for (i) determining the Special Tax A Requirement, (ii) determining the Special Tax B Requirement, (iii) determining the Special Tax C (Contingent) Requirement, and (iv) providing for the levy and collection of the Special Taxes. “CFD” or “CFD No. 2015-4” means Community Facilities District No. 2015-4 (Terracina) established by the City under the Act.
“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. 2015-4, or its designee.
“Condominium Plan” means a condominium plan as set forth in the California Civil Code, Section 1352. “County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property 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 A-3
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(ii) a Building Permit for new construction was issued on or before March 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 1352 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 and Table 2 of Section M. “Maximum Special Tax A” means the maximum Special Tax A, determined in accordance with Section D below, that can be levied by CFD No. 2015-4 in any Fiscal Year on any Assessor’s Parcel. “Maximum Special Tax B” means the Maximum Special Tax B, as determined in accordance with Section M below that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property within CFD No. 2015-

4. “Maximum Special Tax C (Contingent)” means the Maximum Special Tax C (Contingent), as determined in accordance with Section S below that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property within CFD No. 2015-4.
“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 Administrator.
“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.
“Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H.
“Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Property Owner’s Association Property” or “POA” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association, including any master or sub-association. “Proportionately” means for Taxable Property for Special Tax A that is (i) Developed Property, that the ratio of the actual Special Tax A levy to the Assigned Special Tax A is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax A levy to the Maximum Special Tax A is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, A-4
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Public Property and Property Owner’s Association Property, that the ratio of the actual Special Tax A levy per Acre to the Maximum Special Tax A per Acre is the same for all Assessor’s Parcels of Undeveloped Property, Public Property and Property Owner’s Association Property.

For Special Tax B that is (i) Developed Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax B levy to the Maximum Special Tax B is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax B levy per Acre to the Maximum Special Tax B per Acre is the same for all Assessor’s Parcels of Undeveloped Property.

For Special Tax C (Contingent) that is (i) Developed Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax C (Contingent) levy to the Maximum Special Tax C (Contingent) is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax C (Contingent) levy per Acre to the Maximum Special Tax C (Contingent) per Acre is the same for all Assessor’s Parcels of Undeveloped Property. “Public Property” means all Assessor’s Parcels which, as of July 1st of the Fiscal Year in which the Special Tax is being levied, are used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State of California, the County, or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “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 Administrator.
“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. 2015-4 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property on an Assessor’s Parcel.
“Special Tax(es)” means any of the special taxes authorized to be levied within CFD No. 2015-4 pursuant to the Act.
“Special Tax A” means any of the special taxes authorized to be levied within CFD No. 2015-4 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax A Requirement “ means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax A delinquencies, and (vi) the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2015-4 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Undeveloped Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.

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“Special Tax B” 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 B Requirement. “Special Tax B Requirement” means that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of CFD No. 2015-4 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for Special Tax B 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 Special Tax B Services as determined by the CFD Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax B Requirement include funds for Bonds. “Special Tax B Services” means the maintenance and operation of the improvements described in Exhibit “A” attached hereto beginning with the date of City acceptance of each improvement for maintenance purposes. “Special Tax C (Contingent)” means the Special Tax C (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax C (Contingent) Requirement, if required. “Special Tax C (Contingent) 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 Special Tax C (Contingent) Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Special Tax C (Contingent) Services as determined by the CFD Administrator; less a credit for funds available to reduce the annual Special Tax C (Contingent) levy as determined by the CFD Administrator. “Special Tax C (Contingent) Services” means the City’s maintenance and operation of the improvements described in Exhibit “B” attached hereto following the POA’s default of its obligation to maintain such improvements, which default shall be deemed to have occurred in each of the circumstances described in Section Q.
“Taxable Property” means all Assessor’s Parcels within CFD No. 2015-4, 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.
“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, Public Property or Property Owner’s Association Property.

B. SPECIAL TAX A
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Tax A on all Taxable Property, up to the applicable Maximum Special Tax A to fund the Special Tax A Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX A
Each Fiscal Year, beginning with Fiscal Year 2022-2023, each Assessor’s Parcel within CFD No. 2015-4 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 Public Property and/or Property Owner’s Association Property.

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

D. MAXIMUM SPECIAL TAX A

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

The Maximum Special Tax A for each Assessor’s Parcel of Non-Residential Property or Multifamily Residential Property shall be the applicable Assigned Special Tax A described in Table 1 of Section D. a. Assigned Special Tax A
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property, or Non-Residential Property shall be subject to an Assigned Special Tax A. The Assigned Special Tax A applicable to an Assessor’s Parcel of Developed Property for Fiscal Year 2022-2023 shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNED SPECIAL TAX A 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 1,700 sq. ft $2,600

2. Single Family Residential Property RU 1,700 sq. ft to 1,950 sq. ft $2,800

3. Single Family Residential Property RU 1,951 sq. ft to 2,200 sq. ft $2,815

4. Single Family Residential Property RU 2,201 sq. ft to 2,450 sq. ft $2,975

5. Single Family Residential Property RU 2,451 sq. ft to 2,700 sq. ft $3,100

6. Single Family Residential Property RU 2,701 sq. ft to 2,950 sq. ft $3,200

7. Single Family Residential Property RU Greater than 2,950 $3,300

8. Multifamily Property Acres N/A $19,320

9. Non-Residential Property Acres N/A $19,320
On each July 1, commencing July 1, 2023, the Assigned Special Tax A 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 A levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax A 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 A
The Backup Special Tax A for an Assessor’s Parcel within a Final Map classified or to be classified as Single Family Property shall be $2,866 per unit. This Backup Special Tax A has been established based on A-7
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the land use configurations shown on the Final Map. In the event any portion of the Final Map is changed or modified, the Backup Special Tax A for all Assessor’s Parcels within such changed or modified area shall be $19,320 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 A for all Assessor’s Parcels within such Final Map shall be $19,320 per Acre.

The Backup Special Tax A shall not apply to Multifamily Residential Property, Non-Residential Property, Public Property, or Property Owners’ Association Property.

On each July 1, commencing July 1, 2023, the Backup Special Tax A 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 A for each Assessor’s Parcel of Approved Property expected to be classified as Single Family Property shall be the Backup Special Tax A computed pursuant to Section D.1.c above.

The Maximum Special Tax A for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $19,320 per Acre.

On each July 1, commencing July 1, 2023, the Maximum Special Tax A 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, Public Property, and Property Owner’s Association Property that is not Exempt Property pursuant to the provisions of Section F The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property, Public Property and/or Property Owners Association Property that is not Exempt Property shall be equal to the product of $19,320 multiplied by the Acreage of such Assessor’s Parcel.

On each July 1, commencing July 1, 2023, the Maximum Special Tax A rate for Undeveloped, Public Property, and Property Owners Association 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 A
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes A on all Taxable Property in accordance with the following steps:

Step One: The Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax A rates in Table 1 to satisfy the Special Tax A Requirement.

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

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

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

Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Special Tax A shall be levied Proportionately on each Assessor’s Parcel of Public Property or Property Owner’s Association Property up to 100% of the Maximum Special Tax A applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax A 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 A 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 66.55 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 66.55 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 66.55 Acres will be classified as Undeveloped Property, and will be subject to Special Tax A pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX A
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $21,500,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, 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. 2015- 4, 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 A levied under this Amended and Restated 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 under CFD No. 2015-4.
“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 A-9
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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 or 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 A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax A.

1. Prepayment in Full
The Maximum Special Tax A 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 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 that are not Exempt Property pursuant to Section F. The Maximum Special Tax A obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax A 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 A obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel.

Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

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

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

2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax A 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 A 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 or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax A for the Assessor’s Parcel.

3. Divide the Maximum Special Tax A derived pursuant to paragraph 2 by the total amount of Special Taxes that could be levied at the Maximum Special Tax A at build out of all Assessor’s Parcels of Taxable A-10
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Property based on the applicable Maximum Special Tax A for Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the Special Tax A 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 A prepayments.

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

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

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

12. Verify the administrative fees and expenses of the CFD, including the cost of computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the prepayment of the Maximum Special Tax A 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.

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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 A prepayments of Outstanding Bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax A levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax A levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Maximum Special Tax A 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 A obligation and the release of the Special Tax A lien for the Assessor’s Parcel, and the obligation to pay the Special Tax A for such Assessor’s Parcel shall cease.

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

Tenders of Bonds in prepayment of the Maximum Special Tax A 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 A 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
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 A 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 A obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax A obligation, (ii) the percentage of the Maximum Special Tax A 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 nonrefundable 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 for the Assessor’s Parcel. A Partial Prepayment 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.

With respect to any Assessor’s Parcel for which the Maximum Special Tax A obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment 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 Special Tax A obligation equal to the remaining percentage (1.00 - F) of Special Tax A obligation will continue on the Assessor’s Parcel pursuant to Section E.

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I. TERMINATION OF SPECIAL TAX A
For each Fiscal Year that any Bonds are outstanding the Special Tax A shall be levied on all Assessor’s Parcels subject to the Special Tax A. The Special Tax A shall cease not later than the 2063-2064 Fiscal Year, however, Special Tax A will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all required interest and principal payments on the CFD No. 2015-4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2015-4 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax A remain uncollected and (iv) all other obligations of CFD No. 2015-4 have been satisfied.

J. MANNER OF COLLECTION
The Special Tax A shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2015-4 may collect Special Tax A 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.

K. SPECIAL TAX B
Commencing Fiscal Year 2022-2023 and for each subsequent Fiscal Year, the City Council shall levy Special Tax B on all Taxable Property, up to the applicable Maximum Special Tax B to fund the Special Tax B Requirement.

L. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX B
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015-4 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 M and N 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 Property. For Single Family Residential Property the number of Residential Units shall be determined by the CFD Administrator.

M. MAXIMUM SPECIAL TAX B
For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property which are classified as Single Family Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed thereon as specified in or shown on the Building Permit(s) issued or Final Map as determined by the CFD Administrator. Once a single family attached building or buildings have been built on an Assessor’s Parcel, the CFD Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax B per Residential Unit identified for the tract.

For purposes of determining the applicable Maximum Special Tax B for Assessor’s Parcels of Developed Property and Approved Property which are classified as Multifamily Property or 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 CFD Administrator. Once the CFD Administrator determines the actual number of Acres for the Assessor’s Parcels, the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax per Taxable Unit.

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1. Developed Property
a. Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Taxable Property for Fiscal Year 2022-2023 is identified in Table 2 below:

TABLE 2

MAXIMUM SPECIAL TAX B FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Maximum Special Tax Per
Taxable Unit

1. Single Family Residential Property RU $675

2. Multifamily Property Acre $1,794

3. Non-Residential Property Acre $1,794
On each July 1, commencing on July 1, 2023 the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. b. 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 that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax B 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 CFD Administrator’s allocation to each type of property shall be final.

2. Approved Property and Undeveloped Property
The Maximum Special Tax B for each Assessor’s Parcel of Approved Property and Undeveloped Property for Fiscal Year 2022-2023 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX B RATES
Maximum Special Tax B
Per Acre
$1,794
On each July 1, commencing on July 1, 2023 the Maximum Special Tax B for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

N. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the Council shall determine the Special Tax B Requirement and shall levy the Special Tax B on all Assessor’s Parcels of Taxable Property until A-14
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the aggregate amount of Special Tax B equals the Special Tax B Requirement. The Special Tax B shall be levied for each Fiscal Year as follows:

Step One: The Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax B Requirement;
Step Two: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, the Special Tax B shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax B for Approved Property;
Step Three: If additional monies are needed to satisfy the Special Tax B Requirement after the first two steps has been completed, the Special Tax B shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B for Undeveloped Property.

O. DURATION OF SPECIAL TAX B
The Special Tax B shall be levied in perpetuity to fund the Special Tax B Requirement, unless no longer required as determined at the sole discretion of the City Council.

P. MANNER OF COLLECTION
The Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2015-4 may collect the Special Tax B at a different time or in a different manner if necessary to meet its funding requirements.

Q. SPECIAL TAX C (CONTINGENT)
The City Council shall levy Special Tax C (Contingent) commencing in the first Fiscal Year following the POA’s default of its obligation to maintain the improvements described in Exhibit “B” attached hereto, which default shall be deemed to have occurred in each of the following circumstances:
(i) the POA files for bankruptcy;
(ii) the POA is dissolved;
(iii) the POA ceases to levy annual assessments for the maintenance of the improvements described above; or
(iv) the POA fails to maintain such improvements at the same level as the City maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy such maintenance deficiency to the reasonable satisfaction of the City Council.

R. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX C (CONTINGENT) For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2015-4 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 S and T below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential A-15
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Property shall be further classified as Single Family Residential Property or Multi-Family Property. For Single Family Residential Property the number of Residential Units shall be determined by the CFD Administrator.

S. MAXIMUM SPECIAL TAX C (CONTINGENT)
For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property which are classified as Single Family Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed thereon as specified in or shown on the Building Permit(s) issued as determined by the CFD Administrator. Once a single family attached building or buildings have been built on an Assessor’s Parcel, the CFD Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax C (Contingent) per Residential Unit identified for the Assessor’s Parcel.

For purposes of determining the applicable Maximum Special Tax C (Contingent) for Assessor’s Parcels of Developed Property and Approved Property which are classified as Multifamily Property or 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 CFD Administrator. Once the CFD Administrator determines the actual number of Acres for the Assessor’s Parcels, the Special Tax C (Contingent) levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Acres by the Maximum Special Tax per Acre.

1. Developed Property
a. Maximum Special Tax C (Contingent)
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Taxable Property for Fiscal Year 2022-2023 is identified in Table 2 below:

TABLE 2

MAXIMUM SPECIAL TAX C (CONTINGENT) FOR DEVELOPED PROPERTY Land Use Category
Taxable
Unit
Maximum Special Tax Per
Taxable Unit

1. Single Family Residential Property RU $74

2. Multifamily Property Acre $195

3. Non-Residential Property Acre $195
On each July 1, commencing on July 1, 2023 the Maximum Special Tax C (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. b. 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 C (Contingent) that can be levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax C (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 CFD Administrator’s allocation to each type of property shall be final.

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2. Approved Property and Undeveloped Property
The Maximum Special Tax C (Contingent) for each Assessor’s Parcel of Approved Property and Undeveloped Property for Fiscal Year 2022-2023 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX C (CONTINGENT) RATES
Maximum Special Tax C
(Contingent)
Per Acre
$195
On each July 1, commencing on July 1, 2023 the Maximum Special Tax C (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

T. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
Commencing with Fiscal Year 2022-2023 and for each following Fiscal Year, the Council shall determine the Special Tax C (Contingent) Requirement and shall levy the Special Tax C (Contingent) on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax C (Contingent) equals the Special Tax C (Contingent) Requirement. The Special Tax C (Contingent) shall be levied for each Fiscal Year as follows:

Step One: The Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax C (Contingent) Requirement;
Step Two: If additional moneys are needed to satisfy the Special Tax C (Contingent) Requirement after the first step has been completed, the Special Tax C (Contingent) shall be levied Proportionately on each Assessor’s Parcel of Approved Property at up to 100% of the Maximum Special Tax C (Contingent) for Approved Property;
Step Three: If additional monies are needed to satisfy the Special Tax C (Contingent) Requirement after the first two steps has been completed, the Special Tax C (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax C (Contingent) for Undeveloped Property.

U. DURATION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be levied in perpetuity to fund the Special Tax C (Contingent) Requirement, unless no longer required as determined at the sole discretion of the City Council.

V. MANNER OF COLLECTION OF SPECIAL TAX C (CONTINGENT)
The Special Tax C (Contingent) shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2015-4 may collect the Special Tax C (Contingent) at a different time or in a different manner if necessary to meet its funding requirements.

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W. 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 Amended and Restated 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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EXHIBIT “A”

DESCRIPTION OF AUTHORIZED SPECIAL TAX B SERVICES
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

OF THE CITY OF LAKE ELSINORE
The services which may be funded with proceeds of Special Tax B of CFD No. 2015-4, 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- 4; as well as local roads within residential subdivisions located within CFD No. 2015-4; and any portions adjacent to the properties within CFD No. 2015-4; and
In addition to payment of the cost and expense of the forgoing services, proceeds of Special Tax B may be expended to pay “Administrative Expenses,” as said term is defined in the Amended and Restated Rate and Method of Apportionment.

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EXHIBIT “B”

DESCRIPTION OF AUTHORIZED SPECIAL TAX C SERVICES
COMMUNITY FACILITIES DISTRICT NO. 2015-4 (TERRACINA)

OF THE CITY OF LAKE ELSINORE
The services which may be funded with proceeds of Special Tax C (Contingent) of CFD No. 2015-4, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing water quality improvements (may include reserves for replacement) in public street right-ofways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use.

The authorized Special Tax C (Contingent) Services include the maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance of natural, upgraded open space/hillsides including the fuel modification areas; maintenance and repair of irrigation facilities; maintenance and operation of water quality improvements, which include the bioretention facility and appurtenances, which shall be maintained as described in the adopted Terracina Specific Plan on file with the City of Lake Elsinore and as an exhibit in the Public Hearing Report. Maintenance services may include, but are not limited to the repair, removal or replacement of all or part of any of the water quality improvements
In addition to payment of the cost and expense of the forgoing services, proceeds of Special Tax C (Contingent) may be expended to pay “Administrative Expenses,” as said term is defined in the Amended and Restated Rate and Method of Apportionment.

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APPENDIX B

CERTAIN ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING
The following information relating to the City of Lake Elsinore (the “City”) and the County of Riverside, California (the “County”), California (the “State”) is supplied solely for purposes of information. Neither the City nor the County is obligated in any manner to pay principal of or interest on the Bonds or to cure any delinquency or default on the Bonds. The Bonds are payable solely from the sources described in the Official Statement.

General
The City was founded in 1883 and incorporated as a general law city effective April 23, 1888 in San Diego County. In 1893, the Elsinore Valley, previously located in San Diego County, became part of the new County of Riverside. The City encompasses approximately 39 square miles, with over 10 miles of lakeshore, and is located at the southwestern end of the County, 73 miles southeast of downtown Los Angeles and 74 miles north of downtown San Diego.

Population
The following table offers population estimates as of January 1 for the City, the County and the State for years 2020 through 2024.

Area 2020 2021 2022 2023 2024
City of Lake Elsinore 63,591 70,951 71,586 71,351 71,452 County of Riverside 2,440,719 2,419,165 2,427,832 2,428,580 2,442,378 State of California 39,648,938 39,327,868 39,114,785 39,061,058 39,128,162 Source: California State Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2011-2020 with 2010 Census Benchmark and 2021-2024 with 2020 Benchmark.

Building Activity
The following tables provide summaries of the building permit valuations and the number of new dwelling units authorized in the City and County for years 2019 through 2023.

BUILDING PERMIT VALUATIONS
City of Lake Elsinore
2019-2023
(Dollars in Thousands)
2019 2020 2021 2022 2023
Valuation ($000):

Residential $94,437 $101,321 $61,598 $105,540 $3,512
Non-residential 26,442 4,248 12,276 18,302 6,689
Total* $120,879 $105,569 $73,874 $123,842 $10,202
Residential Units:

Single family 327 410 218 297 12
Multiple family 83 0 0 13 0
Total 410 410 218 310 12
* Totals may not add to sums due to rounding.

Source: Construction Industry Research Board.

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BUILDING PERMIT VALUATIONS
County of Riverside
2019-2023
(Dollars in Thousands)
2019 2020 2021 2022 2023
Valuation ($000):

Residential $2,275,405 $2,519,303 $2,262,642 $2,921,113 $3,306,086 Non-residential 1,285,856 1,153,778 1,543,998 1,701,618 1,676,498 Total* $3,561,261 $3,673,081 $3,806,640 $4,622,731 $4,982,584 Residential Units:

Single family 6,563 8,443 7,360 8,863 8,894
Multiple family 1,798 723 1,126 2,861 6,428
Total 8,361 9,166 8,486 11,724 15,322
* Totals may not add to sums because of rounding.

Source: Construction Industry Research Board.

Employment
The following tables show the largest employers located in the City and County as of June 30, 2024.

LARGEST EMPLOYERS
City of Lake Elsinore
(as of June 30, 2024)
Rank Name of Business Employees Type of Business

1. Lake Elsinore Unified School District 2,688 School District

2. M & M Framing 512 Construction

3. Stater Brothers 346 Supermarket

4. Costco Wholesale 323 Retail Store

5. Walmart Superstore #2077 290 Retail Store

6. Lake Elsinore Hotel & Casino 246 Casino & Resort

7. Riverside County – Department of Public Social Services 217 Government

8. E.V.M.W.D. (Elsinore Valley Municipal Water District) 180 Water District

9. The Home Depot 156 Building Supplies

10. City of Lake Elsinore(1) 163 Government
(1) Includes Certificated, Classified and Admin.

Source: City of Lake Elsinore, California Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2024.

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LARGEST EMPLOYERS
County of Riverside
(as of June 30, 2024)
Rank Name of Business Employees Type of Business

1. County of Riverside 23,772 County Government

2. Amazon 14,317 Online Retail

3. University of California, Riverside 8,593 University

4. State of California 8,398 Government

5. Walmart 6,465 Retail Store

6. Moreno Valley Unified School District 6,020 School District

7. Kaiser Permanente Riverisde Medical Center 5,817 Medical Center

8. Riverside Unified School District 5,431 School District

9. Stater Brothers 4,990 Supermarket

10. Mt. San Jacinto Community College District 4,638 School District Source: County of Riverside, California Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2024.

Employment and Industry
Employment data by industry is not separately reported on an annual basis for the City but is compiled for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area (the “MSA”), which includes all of Riverside and San Bernardino Counties. In addition to varied manufacturing employment, the MSA has large and growing commercial and service sector employment, as reflected in the table below.

The following table represents the Annual Average Labor Force and Industry Employment for the Riverside-San Bernardino-Ontario MSA for years 2020 through 2024.

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RIVERSIDE-SAN BERNARDINO-ONTARIO MSA

INDUSTRY EMPLOYMENT & LABOR FORCE - BY ANNUAL AVERAGE
2020 2021 2022 2023 2024
Civilian Labor Force 2,073,400 2,108,400 2,140,500 2,180,300 2,209,100 Civilian Employment 1,868,300 1,951,600 2,049,900 2,078,100 2,093,800 Civilian Unemployment 205,100 156,700 90,700 102,300 115,300 Civilian Unemployment Rate 9.9% 7.4% 4.2% 4.7% 5.2%
Total Farm 14,100 13,700 13,800 13,200 13,700
Total Nonfarm 1,495,800 1,575,100 1,660,200 1,681,000 1,700,400 Total Private 1,247,800 1,333,100 1,410,200 1,420,700 1,430,200 Goods Producing 202,200 207,700 216,300 215,300 212,900 Mining and Logging 1,300 1,400 1,500 1,500 1,600
Construction 104,900 110,100 114,700 115,400 116,200
Manufacturing 96,000 96,100 100,000 98,500 95,200
Service Providing 1,293,700 1,367,400 1,443,900 1,465,700 1,487,500 Trade, Transportation and Utilities 406,900 443,200 464,900 457,900 456,400 Wholesale Trade 65,600 67,400 69,500 68,900 68,600
Retail Trade 168,800 177,000 181,000 183,000 182,600
Transportation, Warehousing and Utilities 172,500 198,800 214,400 206,000 205,200 Information 12,400 12,500 13,000 13,300 13,000
Financial Activities 44,100 45,200 46,000 44,900 44,100 Professional and Business Services 152,100 166,600 173,900 164,400 161,800 Private Education and Health Services 248,800 254,300 267,900 287,800 306,000 Leisure and Hospitality 141,300 160,200 180,900 187,600 185,300 Other Services 40,200 43,600 47,400 49,400 50,700
Government 248,000 242,000 250,000 260,200 270,200
Total, All Industries 1,509,900 1,588,800 1,674,000 1,694,100 1,714,100 Note: Does not include proprietors, self-employed, unpaid volunteers or family workers, domestic workers in households and persons involved in labor-management trade disputes. Employment reported by place of work. Items may not add to total due to independent rounding.

The “Total, All Industries” data is not directly comparable to the employment data found in this Appendix C.

Source: State of California, Employment Development Department, Industry Employment – Official Estimates. March 2024 Benchmark.

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The following table summarizes the labor force, employment and unemployment figures for years 2019 through 2023 for the City, the County, the State and the nation as a whole.

CITY OF LAKE ELSINORE,

COUNTY OF RIVERSIDE,

STATE OF CALIFORNIA AND UNITED STATES
Average Annual Civilian Labor Force, Employment and Unemployment Year and Area Labor Force Employment(1) Unemployment(2) Unemployment
Rate (%)(3)
2019
City of Lake Elsinore 31,100 29,900 1,200 3.9%
County of Riverside 1,106,200 1,059,500 46,700 4.2
State of California 19,385,300 18,589,600 795,700 4.1
United States 163,539,000 157,538,000 6,001,000 3.7
2020
City of Lake Elsinore 30,000 26,800 3,200 10.7%
County of Riverside 1,118,900 1,006,200 112,700 10.1
State of California 18,958,600 17,037,000 1,921,600 10.1 United States 160,742,000 147,795,000 12,947,000 8.1
2021
City of Lake Elsinore 30,200 27,900 2,300 7.6%
County of Riverside 1,130,500 1,047,700 82,800 7.3
State of California 18,956,600 17,568,700 1,387,800 7.3 United States 161,204,000 152,581,000 8,623,000 5.3
2022
City of Lake Elsinore 30,500 29,200 1,300 4.3%
County of Riverside 1,145,700 1,097,200 48,500 4.2
State of California 19,169,300 18,348,900 820,400 4.3
United States 164,287,000 158,291,000 5,996,000 3.6
2023
City of Lake Elsinore 30,800 29,300 1,500 4.9%
County of Riverside 1,157,900 1,102,300 55,600 4.8
State of California 19,308,300 18,388,300 920,000 4.8
United States 167,116,000 161,037,000 6,080,000 3.6
Note: Data is not seasonally adjusted.
(1) Annual averages, unless otherwise specified.
(2) Includes persons involved in labor-management trade disputes. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.

Source: U.S. Department of Labor – Bureau of Labor Statistics, California Employment Development Department. March 2023 Benchmark.

Personal Income
Personal income consists of the income that persons receive in return for their provision of labor, land, and capital used in current production as well as other income, such as personal current transfer receipts. In the state and local personal income accounts the personal income of an area represents the income received by or on behalf of the persons residing in that area. It is calculated as the sum of wages and salaries, supplements to wages and salaries, proprietors’ income with inventory valuation (IVA) and capital consumption adjustments (CCAdj), B-6
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rental income of persons with capital consumption adjustment (CCAdj), personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance plus the adjustment for residence.

Total personal income in Riverside County increased by 29.25% between 2019 and 2023. The following tables summarize personal income for Riverside County for 2019 through 2023.

PERSONAL INCOME
Riverside County
2019-2023
(Dollars in Thousands)
Year Riverside County
Annual
Percent Change
2019 103,647,288 6.9%
2020 115,370,344 11.3
2021 126,493,256 9.6
2022 126,174,731 -0.3
2023 133,968,557 6.2
Note. All dollar estimates are in thousands of current dollars (not adjusted for inflation).

Source: U.S. Bureau of Economic Analysis.

The following table summarizes per capita personal income for Riverside County, California and the United States for years 2019 through 2023. This measure of income is calculated as the total personal income divided by total midyear population.

PER CAPITA PERSONAL INCOME
Riverside County, State of California and the United States 2019-2023
Year Riverside County California United States
2019 43,122 64,219 55,567
2020 47,615 70,098 59,123
2021 51,558 76,882 64,460
2022 50,995 76,941 66,244
2023 53,750 81,255 69,810
Source: U.S. Bureau of Economic Analysis.

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Taxable Sales
The table below presents taxable sales for the years 2019 through 2024 for the City.

TAXABLE SALES
City of Lake Elsinore
2019-2024
(Dollars in Thousands)
Year Permits Taxable Transactions
2019 1,692 $905,476
2020 1,843 1,015,341
2021 1,907 1,295,868
2022 1,974 1,338,536
2023 2,014 1,274,565
2024(1) 2,038 1,240,972
(1) Quarter 2 and Quarter 3 of 2024 are preliminary figures (last updated December 20, 2024).

Source: California Department of Tax and Fee Administration, Taxable Sales – Cities by Type of Business (Taxable Table 4).

The table below presents taxable sales for the years 2019 through 2024 for the County.

TAXABLE SALES
County of Riverside
2019-2024
(Dollars in Thousands)
Year Permits Taxable Transactions
2019 64,063 $40,626,998
2020 69,284 42,313,474
2021 64,335 55,535,196
2022 66,738 62,117,153
2023 68,670 61,331,274
2024(1) 70,577 60,343,097
(1) Quarter 2 and Quarter 3 of 2024 are preliminary figures (last updated December 20, 2024).

Source: California Department of Tax and Fee Administration, Taxable Sales – By County (Taxable Table 2).

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APPENDIX C

FORM OF OPINION OF BOND COUNSEL
Upon issuance of the Bonds, Stradling Yocca Carlson & Rauth LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
[Closing Date]
City of Lake Elsinore
Community Facilities District No. 2015-4 (Terracina)
Lake Elsinore, California
Re: $_________ Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) Special Tax Bonds, Series 2026
Ladies and Gentlemen:

We have examined the Constitution and the laws of the State of California, a certified record of the proceedings of the City of Lake Elsinore (the “City”) taken in connection with the formation of Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”) and the authorization and issuance of the District’s Special Tax Bonds, Series 2026 in the aggregate principal amount of $__________ (the “Bonds”) and such other information and documents as we consider necessary to render this opinion. In rendering this opinion, we have relied upon certain representations of fact and certifications made by the District, the City, the initial purchasers of the Bonds and others. We have not undertaken to verify through independent investigation the accuracy of the representations and certifications relied upon by us.

The Bonds have been issued pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California), a resolution adopted by the City Council of the City, acting in its capacity as the legislative body of the District (the “City Council”) on December 9, 2025 (the “Resolution”), and a Bond Indenture (the “Indenture”) dated as of January 1, 2026, by and between the District and Wilmington Trust, National Association, as trustee (the “Trustee”). All capitalized terms not defined herein shall have the meaning set forth in the Indenture.

Based upon our examination of the foregoing, and in reliance thereon and on all matters of fact as we deem relevant under the circumstances, and upon consideration of applicable laws, we are of the opinion that:
(1) The Bonds have been duly and validly authorized by the District and are legal, valid and binding limited obligations of the District, enforceable in accordance with their terms and the terms of the Indenture.

The Bonds are limited obligations of the District but are not a debt of the City, the State of California or any other political subdivision thereof within the meaning of any constitutional or statutory limitation, and, except for the Net Taxes, neither the faith and credit nor the taxing power of the City, the State of California, or any of its political subdivisions is pledged for the payment thereof. (2) The Indenture has been duly executed and delivered by the District. The Indenture creates a valid pledge of, and the Bonds are secured by, the Net Taxes and the amounts on deposit in certain funds and accounts established under the Indenture, as and to the extent provided in the Indenture. The Indenture is enforceable in accordance with its terms; provided, however, we express no opinion as to the enforceability of the covenant of the District contained in the Indenture to levy Special Taxes for the payment of Administrative C-2
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Expenses or as to indemnification, penalty, contribution, choice of law, choice of forum or waiver provisions contained therein.
(3) Under existing statutes, regulations, rulings and judicial decisions, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, it should be noted that, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the “Code”), interest (and original issue discount) with respect to the Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed on such corporations.
(4) Interest (and original issue discount) on the Bonds is exempt from State of California personal income tax.
(5) The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity are to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Bond Owner will increase the Bond Owner’s basis in the applicable Bond.
(6) The amount by which a Bond Owner’s original basis for determining loss on sale or exchange in the applicable Bond (generally the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium which must be amortized under Section 171 of the Code; such amortizable Bond premium reduces the Bond Owner’s basis in the applicable Bond (and the amount of taxexempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner.

The opinions expressed in paragraphs (3) and (5) above as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Bonds is subject to the condition that the District and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District and the City have covenanted to comply with all such requirements. Except as set forth in paragraphs (3), (4), (5) and (6) above, we express no opinion as to any tax consequences related to the Bonds.

Certain agreements, requirements and procedures contained or referred to in the Indenture, the Tax Certificate executed by the District and the City and other documents related to the Bonds may be changed and certain actions may be taken or omitted, under the circumstances and subject to the terms and conditions set forth in such documents. We express no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on any Bond if any such change occurs or action is taken or omitted upon advice or approval of bond counsel other than Stradling Yocca Carlson & Rauth LLP.

Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. We call attention to the fact that the rights and obligations under the Bonds, the Indenture and the Tax Certificate may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, by the application of equitable principles and the exercise of C-3
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judicial discretion in appropriate cases and by the limitations on legal remedies against public agencies in the State of California.

We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and expressly disclaim any duty to advise the Owners of the Bonds with respect to matters contained in the Official Statement or other offering material.

The opinions expressed herein are based upon an analysis of existing statutes, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether such actions or events are taken (or not taken) or do occur (or do not occur).

Respectfully submitted,
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APPENDIX D

APPRAISAL REPORT
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APPENDIX E

SUMMARY OF THE INDENTURE
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APPENDIX F

FORM OF DISTRICT CONTINUING DISCLOSURE CERTIFICATE
THIS CONTINUING DISCLOSURE CERTIFICATE (this “Disclosure Certificate”), dated as of January 1, 2026, is executed and delivered by Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) (the “District”) in connection with the issuance of the Community Facilities District No. 2015-4 of the City of Lake Elsinore (Terracina) Special Tax Bonds, Series 2026 (the “Bonds”). The Bonds are being issued pursuant to a Resolution of Issuance adopted by the City Council of the City of Lake Elsinore, acting as the legislative body of the District on December 9, 2025 and a Bond Indenture by and between the District and Wilmington Trust, National Association, as Trustee, dated as of January 1, 2026 (the “Indenture”).

The District covenants as follows:

SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered, for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.

Lake Elsinore City CouncilJanuary 13, 2026

Lake Elsinore City Council
January 13, 2026