Agenda packet — Menifee City Council, August 3, 2022 (part 2 of 3)

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 12 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included Tract
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
1 2018‐19 36299‐1 &
PM 9504
426 SFR RU $158 $0 Stark Menifee Land, LLC
548 MFR RU $158 $0 Stark Menifee Land, LLC &
Menifee Multifamily, LLC

27.68 NR Acre $1,714 $0 Several
2 2020‐21 TR 37576 65 SFR RU $539 $43 Meritage Homes 3 2020‐21 TR 28859 161 SFR RU $727 $0 Woodside O5S 4 2020‐21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of California, Inc.
5 2020‐21 TTM 36852 68 SFR RU $755 $151 Strata Holland, LLC 6 2021‐22 TTM 37668 175 SFR RU $765 $295 Meritage Homes of California, Inc.
7 2022‐23 TTM 31456 176 SFR RU $996 $0 RCFC Investments, LLC 8 2021‐22 TR 32102 &
TR 32102‐1 256 SFR RU $674 $0
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
9 2021‐22 TTM 37400 174 SFR RU $703 $0 D.R. Horton Los Angeles Holding Company, Inc.
10 To Be Determined
11 2022‐23 TR 31194 466 SFR RU $906 $23 Golden Meadowland LLC & Golden Hill Country, LLC
12 2022‐23 TR 37408 &
TR 37409 1,022 SFR RU $963 $5 BLC Fleming LLC
13 2022‐23 TR 36803 80 SFR RU $556 $171 FPG Sun Menifee 80 LLC 14 To Be Determined
15 2022‐23 PLN 20‐0167 9.92 MFR/NR Acre $3,865 $2,375 Boulders Menifee LLC

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2019 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 23
Menifee Mayor and City Council August 3, 2022

Page 125 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 13 APPENDIX B
CITY OF M
ENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES) DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2017‐1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleani ng, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐way, 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 mainte
nance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and re pair 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 drainag e 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 wat er 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 and servicing of the water qu ality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017‐1; as well as local roads within residential subdivisions located within CFD No. 2017‐1; and any portions adjacent to the properties within CFD No. 2017‐1; and
In addition to payment of the cost and e
xpense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2 017‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017‐1 before CFD No. 2017‐1 was created or those provided in the territory annexed to CFD No. 2017‐1 before the territory was annexed, as appl icable.

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 24
Menifee Mayor and City Council August 3, 2022

Page 126 of 359 ends

EXHIBI
T D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 25
Menifee Mayor and City Council August 3, 2022

Page 127 of 359 ends

360-150-019

EVANS RD

HOLLAND RD

MURPHY LN
ANNEXATION MAP NO. 13
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY O F R I V E R S I D E , S T A T E O F C A L I F O R N I A .

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
NOVEMBER 7, 2017 IN BOOK 81 OF MAPS OF ASSESSMENT
AND COMMUNITY FACILITIES DISTRICT AT PAGE 69 AND
AS INSTRUMENT NO. 2017-0465706 IN THE OFFICE OF THE

COUNTY RECORDER OF THE COUNTY OF RIVERSIDE,
S T A T E O F C A L I F O R N I A .

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

CITY COUNCIL OF THE CITY OF MENIFEE AT A REGULAR
MEETING THEREOF, HELD ON ______ DAY OF ______,
20____,
BY ITS RESOLUTION NO. _______________
___________________________________

CITY CLERK

C IT Y OF MENIF EE

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MENIFEE, THIS _______ DAY OF _________________, 20___.
___________________________________

CITY CLERK

C IT Y OF MENI FEE
FILED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____

OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES
DISTRICTS AT PAGE ______ IN THE OFFICE OF THE

COUNTY RECORDER, IN THE COUNTY OF RIVERSIDE,
ST ATE OF CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
D
EPUTY
CFD 2017-1
TAX ZONE 13
^_
·|}þ74
§¨¦215
§¨¦15
·|}þ79

MENIFEE

THIS ANNEXATION MAP CORRECTY SHOWS THE LOT OR

PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF
THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS

CONCERNING THE LINES AND DIMENSIONS OF LOTS OR

PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR
FISCAL YEAR 2022-23.
-
13 LEGEND

ANNEXATION AREA BOUNDARY

PARCEL LINE

CITY BOUNDARY

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
13 TAX ZONE
Item Title: 10.6 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 26
Menifee Mayor and City Council                                                                               August 3, 2022 Page 128 of 359

Item Title: 10.6 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 27
Menifee Mayor and City Council                                                                               August 3, 2022 Page 129 of 359

EXHIBI
T E

PETITION
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 28
Menifee Mayor and City Council August 3, 2022

Page 130 of 359 ends

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 29
Menifee Mayor and City Council August 3, 2022

Page 131 of 359 ends

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 30
Menifee Mayor and City Council August 3, 2022

Page 132 of 359 ends

EXHIBIT F

NOTICE OF PUBLIC HEARING

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 31
Menifee Mayor and City Council August 3, 2022

Page 133 of 359 ends

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 13)

NOTICE IS HEREBY GIVEN that the City Council of the City of Menifee on August 3, 2022 adopted its Resolution No. 2022-__, in which it declared its intention to annex territory to existing Community Facilities District No. 2017-1 (Maintenance Services) (the "CFD No. 2017-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2017-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, September 21, 2022 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2017- 1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the September 21, 2022 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951-723-3471.

DATED: ____________, 2022 _________________________________________ City Clerk of the City of Menifee
PUB: ____________, 2022

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 32
Menifee Mayor and City Council August 3, 2022

Page 134 of 359 ends

EXHIBIT G
BALLOT

Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 33
Menifee Mayor and City Council August 3, 2022

Page 135 of 359 ends

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 13
(September 21, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee:

Name of Landowne
r Number of Acres Owned Total Votes
FPG Sun Menifee 80 LLC 29.29 30
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “
Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2017-1, City of Menifee, County of Riverside, State of California. Please advise the City Clerk, at (951) 672-6777 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels.

This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than September 7, 2022, two calendar weeks prior to the date set for the election.

Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on September 21, 2022, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However deliv ered, this ballot must be receiv ed by the Clerk prior to the close of the public meeting on September 21, 2022.

Very truly yours,
Stephanie Roseen
Acting City Clerk
City of Menifee
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 34
Menifee Mayor and City Council August 3, 2022

Page 136 of 359 ends

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

FPG Sun Menifee 80 LLC
Attn: Bill Raffoul
27271 Las Ramblas, Suite 100
Mission Viejo, CA 92691
360‐150‐019

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2017-1 (Maintenance Services) adopted by the City Council on August 3, 2022 (the “Res olution”), which is incorporated herein by this reference, within the territory identified on the map
entitled “Annexation Map No. 13 of Community Fac ilities District No. 2017-1 (Maintenance Serv ices) City of Menifee” to finance certain services as set forth in Section 5 to the Resolution (including incidental expenses), and shall an appropriation limit be es tablished for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of spec ial taxes collected? YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

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

Bill Raffoul
SVP Development Strategy

Signature
Print Name
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 35
Menifee Mayor and City Council August 3, 2022

Page 137 of 359 ends

PlayBooster®(5-12 years)Max Fall Height: 72 inches
SPA

MAJESTIC GASECHELON WDV600
POOL
HCLIFT
HCLIFT
1A1A1B1B1C1C
2A2A
3A3A
4A4A4B4B6A6A
5A5A
R.O.W.SIDEWALK

SIDEWALK

SIDEWALK
R.O.W.

R.O.W.

L.L.

L.L.L.L.

L.L.

L.L.L.L.

L.L.

R.O.W.

C.B.C.B.C.B.C.B.SANDFILTER PERCIVILDRAINAGEUTILITYEASEMENTPER CIVIL

FOREBAYPERCIVIL
PAVING
WALK
WALK
WALK
WALK

WALKWALK
STEPS

SIDEWALK

SIDEWALK
L.L.

L.L. R.O.W.

R.O.W.

R.O.W.L.L. L.L.R.O.W.

R.O.W.

R.O.W.EASEMENTD.G. TRAIL
R.O.W. R.O.W.R.O.W.R.O.W.

R.O.W.L.L.BOUNDARY
R.O.W.R.O.W.EASEMENTD.G. TRAILEASEMENTD.G. TRAIL

BOUNDARY
R.O.W.

R.O.W.

R.O.W.R.O.W.R.O.W.R.O.W.R.O.W.

R.O.W. R.O.W.

BOUNDARY BOUNDARY BOUNDARY

BOUNDARY
R.O.W. R.O.W. R.O.W.EASEMENTD.G. TRAILEASEMENTD.G. TRAILEASEMENTD.G. TRAILR.O.W.L.L. L.L. L.L.L.L.L.L.L.L. L.L. L.L. L.L.L.L.

L.L.L.L.L.L.

BOUNDARY
L.L.

R.O.W.L.L. R.O.W.R.O.W.R.O.W. L.L.L.L. L.L. L.L. L.L. L.L. L.L. L.L.

L.L.

R.O.W.
ectseArchiLandscapt(909) 949-6159 / fax (909) 985-3405Upland, California 91786-42971793 W. Arrow HighwayEPROFESSIONALOSSSAEDTAICGISNNCFD MAINTENANCE EXHIBITESTRELLA AT MENIFEE VALLEY - TRACT #36803 - FOREMOST PACIFIC GROUPCITY OF MENIFEE JUNE 28, 2022 NEWPORT RD.

MENIFEE RD.HAUN RD.SCOTT RD.BUNDY CYN.RD.

HOLLAND RD.HOLLAND RD.

EVANS RD.MURRIETA RD.

CORSON AVE.CRAIG AVE.

SHEET: 1 OF 2
MATCHLINE 'A', SEE SHEET 2
STREET 82,890 s.f.31,516 s.f.114,406 s.f.C.F.D. MAINTENANCE AREASIDEWALK 17,515 s.f. 7,790 s.f.25,305 s.f.STREETSCAPE24,915 s.f. 2,815 s.f.27,730 s.f.COMMUNITY TRAIL 8,878 s.f.8,878 s.f.STREET LIGHT 11 ea.4 ea.15 ea.PROJECT / TRACT LIMIT LINESTREET TREE58 ea.17 ea.75 ea.

CURB & GUTTER 2,131 l.f. 1,253 l.f. 3,384 l.f.

StreetsHolland Rd. & Evans Rd Corson AveTOTAL
CITY STORM DRAIN LINES± 2,161 l.f.CITY OF MENIFEE MAINTAINEDStorm Drain 36" - 1160 l.f.Storm Drain 42" - 674 l.f.Storm Drain 48" - 327 l.f.STORM DRAIN INLET1 EA STREET LIGHT,TYP.

STORMDRAIN INLETMAINTAINEDBY CITY OFMENIFEE

STORM DRAINLINEEXTERIOR CURBINLET,MAINTAINED BYCITY OF MENIFEE

INTERIOR CURBINLET, SEE HOAMAINTENANCEEXHIBITCATCH BASIN,MAINTAINED BYCITY OF MENIFEE

PROJECT /TRACT LIMITLINE

CURB/GUTTERCOMMUNITYTRAIL

SIDEWALK
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 36
Menifee Mayor and City Council August 3, 2022

Page 138 of 359 ends

ectseArchiLandscapt(909) 949-6159 / fax (909) 985-3405Upland, California 91786-42971793 W. Arrow HighwayEPROFESSIONALOSSSAEDTAICGISNNCFD MAINTENANCE EXHIBITESTRELLA AT MENIFEE VALLEY - TRACT #36803 - FOREMOST PACIFIC GROUPCITY OF MENIFEE JUNE 28, 2022 NEWPORT RD.

MENIFEE RD.HAUN RD.SCOTT RD.BUNDY CYN.RD.

HOLLAND RD.HOLLAND RD.

EVANS RD.MURRIETA RD.

CORSON AVE.CRAIG AVE.

SHEET: 2 OF 2
MATCHLINE 'A', SEE SHEET 1
CITY STORM DRAIN LINESCITY OF MENIFEE MAINTAINEDStorm Drain 36" - 1160 l.f.Storm Drain 42" - 674 l.f.Storm Drain 48" - 327 l.f.

STORMDRAINOUTLETSTORMDRAINLINE
COUNTY STORM DRAIN LINESRIVERSIDE COUNTY FLOODCONTROL MAINTAINEDStorm Drain 48" - 117 l.f.STORM DRAIN OUTLET1 EA CITY OF MENIFEEMAINTAINEDRCFCMAINTAINEDNOTE: SEE OFFSITE STREETAND DRAINAGE IMPROVEMENTPLANS FOR STORM DRAIN LINEDATA Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 37
Menifee Mayor and City Council August 3, 2022

Page 139 of 359 ends

OPTIONAL SLIDER DOORTILE

TILE

GAS METER

GAS METER
TILE

OPTIONAL SLIDER DOORTILE

TILE

OPTIONAL SLIDER DOORTILE

TILE

OPTIONAL SLIDER DOORTILE

OPTIONAL SLIDER DOORTILE
TILE

TILE

OPTIONAL SLIDER DOORTILE

TILE

TILE
TILE

TILE

PER LOT CONDITION

TILE

GAS METER

OPTIONAL SLIDER DOORTILE

TILE

GAS METER

PER LOT CONDITION

OPTIONAL SLIDER DOORTILE

GAS METER
TILE

TILE

GAS METER

GAS METER
UPTEXTUP17R
UPTEXTUP17R UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17RUPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXT
UP17R UPTEXTUP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17RUPTEXTUP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXT
UP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
UPTEXTUP17R
PlayBooster®(5-12 years)Max Fall Height: 72 inches
SPA

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

BIKELANESTOPSTOPSTOPSTOPSTOPSTOP

BIKELANE

BIKELANESTOP

MAJESTIC GASECHELON WDV600
POOL
HCLIFT
HCLIFT
1A1A1B1B1C1C
2A2A
3A3A
4A4A4B4B6A6A
5A5A
ectseArchiLandscapt(909) 949-6159 / fax (909) 985-3405Upland, California 91786-42971793 W. Arrow HighwayEPROFESSIONALOSSSAEDTAICGISNNH.O.A. MAINTENANCE EXHIBITESTRELLA AT MENIFEE VALLEY - TRACT #36803 - FOREMOST PACIFIC GROUPCITY OF MENIFEE JUNE 28, 2022 NEWPORT RD.

MENIFEE RD.HAUN RD.SCOTT RD.BUNDY CYN.RD.

HOLLAND RD.HOLLAND RD.

EVANS RD.MURRIETA RD.

CORSON AVE.CRAIG AVE.

SHEET: 1 OF 2

MATCHLINE 'A', SEE CFDMAINTANCE EXHIBIT

STORM DRAININLETMAINTAINEDBY CITY OFMENIFEE

STORM DRAINLINEMAINTAINEDBY CITY OFMENIFEEEXTERIOR CURBINLETMAINTAINED BYCITY OF MENIFEE INTERIOR CURBINLET (3)CATCH BASIN

PROJECT /TRACT LIMITLINE

CURB/GUTTER

SIDEWALK
STORM DRAINOUTLETINTRACT STORMDRAIN LINES (3)INTERIORSTREET LIGHT,TYP.

SEWEREASEMENT
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 38
Menifee Mayor and City Council August 3, 2022

Page 140 of 359 ends

ectseArchiLandscapt(909) 949-6159 / fax (909) 985-3405Upland, California 91786-42971793 W. Arrow HighwayEPROFESSIONALOSSSAEDTAICGISNH.O.A. MAINTENANCE EXHIBITESTRELLA AT MENIFEE VALLEY - TRACT #36803 - FOREMOST PACIFIC GROUPCITY OF MENIFEE JUNE 28, 2022SHEET: 2 OF 2 H.O.A. MAINTENANCE AREAINTERIOR STREETS145,276 s.f.INTERIOR SIDEWALK44,676 s.f.ENTRIES STREETSCAPE6,466 s.f.COMMUNITY PARK17,787 s.f.

INTERIOR STREET LIGHT 30 eaPROJECT / TRACT LIMIT LINE
STORM DRAIN OUTLET1 ea
FRONT YARDS161,407 s.f.WATER QUALITY BASIN30,188 s.f.

INTERIOR CURB INLET3 eaCATCH BASIN4 eaEXTERIOR CURB INLET1 ea CURB 7,685 l.f.GUTTER including street crossings 7,842 l.f.

SEEC.F.D. MAINTENANCEEXHIBITCITY STORM DRAIN LINES± 2,161 l.f.CITY OF MENIFEE MAINTAINEDSTORM DRAIN INLET1 EA SEWER EASEMENT @ BASIN3,160 s.f.

INTRACT HOA DRAIN LINES± 219 l.f.
6" CONCRETE (CLASS A)1,653 s.f.

INTERIOR PARK & REC LIGHT8 ea
Item Title: 10.6
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 13, Estrella Item Page Number: 39
Menifee Mayor and City Council August 3, 2022

Page 141 of 359 ends

CITY OF MENIFEE
SUBJECT: Resolution of Intention for Community Facilities District 2017- 1, Annexation No. 15, The Boulders
MEETING DATE: August 3, 2022
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the petition of Boulders Menifee LLC, PLN 20-0167 located west of I-215 at the northeast intersection of Normandy Road and Berea Road to annex into Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1” or “CFD”) as annexation area no. 15; and

2. Adopt a resolution of intention to add annexation area no. 15 into CFD No. 2017-1, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for September 21, 2022.

DISCUSSION
On December 6, 2017, the City Council adopted Resolution No. 17-658, establishing CFD No. 2017-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”).

CFD No. 2017-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

Boulders Menifee LLC (“Owner”) is the Owner of The Boulders, PLN 20-0167 (“PLN 20-0167”), which consists of approximately 9.92 gross acres of a vacant economic development corridor property. The property is located at the northeast corner of Normandy Road and Berea Road, as shown in the attached project location map.

The Owner has requested that the City assist it in annexing PLN 20-0167 into CFD 2017-1 to cover the costs associated with the maintenance of public improvements. The area proposed for annexation would be designated “annexation no. 15,” and would include property within PLN 20- 0167, covering 234 unit apartment complex and two commercial buildings. Per the Owner’s Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 1
Menifee Mayor and City Council August 3, 2022

Page 142 of 359 ends

City of Menifee Staff Report
CFD 2017-1 Annex No. 15 - The Boulders
August 3, 2022

Page 2 of 3 ends

1 1
0 1
request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within annexation area no. 15 to pay for those services.

Annexation area no. 15 would have a maximum annual tax of $6,240 per acre. This tax rate includes a Maximum Special Tax A of $3,865 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (contingent) of $2,375 per acre per year and would be included in CFD No. 2017-1 as “Tax Zone 15.” The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD maintenance site plan exhibit is to illustrate which services are being maintained by the CFD.

The Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a “Consent and Waiver” form on file in the City Clerk’s Office which authorizes the City to (1) hold the election and declare election results (2) shorten election time requirements, (3) waive analysis and arguments, and (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

The next step to annex PLN 20-0167 into CFD 2017-1 is to publish a notification of the proposed annexation along with the resolution of intention and boundary maps of the proposed annexation area. A public hearing on the matter would take place on September 21, 2022, and at that time the Council would formally consider approval of the Annexation No. 15.

STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community

FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the tract development that there would be an annual collection of special tax revenues of approximately $32,590 not including contingent Tax B, to be used to pay for maintenance costs.

On June 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, would be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.

All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 2
Menifee Mayor and City Council August 3, 2022

Page 143 of 359 ends

City of Menifee Staff Report
CFD 2017-1 Annex No. 15 - The Boulders
August 3, 2022

Page 3 of 3 ends

1 1
0 1

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention and Exhibits

3. CFD Maintenance Site Plan Exhibit
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 3
Menifee Mayor and City Council August 3, 2022

Page 144 of 359 ends

LAZ Y CREEK RD
MURPHY
RANCH
RD
BEREA
RD

MURRIETA
RD

NEWPORT RD
LA
LADERA
RD

NORMANDY RD
^_NORMANDY RD EVANSRD

GARBANI RD

NEWPORT RD

MURRIETARD

MENIFEE
RD

BRADLEY RD

PALOMA WAY

RIDGEMOOR RD

BALDY PEAK DR
CONEJO
D R
§¨¦215
CFD NO. 2017-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 15

PROJECT MAP
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 4
Menifee Mayor and City Council August 3, 2022

Page 145 of 359 ends

1 RESOLUTION NO. 22-___
A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MENIFEE DECLARING ITS INTENTION TO ANNEX TERRITORY
INTO COMMUNITY FACILITIES DISTRICT NO. 201 7-1
(MAINTENANCE SERVICES) OF THE CITY OF MENIFEE,

ADOPTING A MAP OF THE AREA PROPOSED TO BE
ANNEXED (ANNEXATION NO. 15) AND AUTHORIZING THE

LEVY OF SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on November 1, 2017, the City Counc il (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17-6 54 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2017-1") for the purpose of levy ing special taxes on parcels of taxable property therein, which taxes would be used to provide certain services necessary to meet increased demands placed upon the City by development; and
WHEREAS, the City Council has received a written instrument to initiate and conduct proceedings pursuant to the Act, to annex territory into CFD No. 2017-1 and to consent to the shortening of election time requirements, waiving of analysis and arguments, and waiving of all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area described in Exhibit A be annexed territory into the boundaries of CFD No. 2017-1, and that a rate and method of apportionment of the special tax to be levied therein be established.

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

MENIFEE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Intent to Annex . The City Council, acting as the legislative body of the CFD No. 2017-1 hereby dec lares that it proposes and intends to c onduct proceedings pursuant to Article 3.5 of the Act for the annex ation into the CFD No. 2017-1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to CFD No. 2017-1.

Section 2. Name of the Community Facilities District. The existing community facilities district is known as “Community Facilities District No. 2017-1 (Maintenance Services).” Section 3. Description of Territory Included in Existing CFD No. 2017-1. The boundaries of the territory c urrently included in the CFD No. 2017-1 are described and shown on that certain map entitled "Propos ed Boundary Map – Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee, County of Riverside, State of California", as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at

Page 69 ends

Riverside, as amended by the following:

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 5
Menifee Mayor and City Council August 3, 2022

Page 146 of 359 ends

2 Section 4. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2017-1 and is more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 70, and as Document No. 2017-0 465707 in the official recor ds of the County of Riverside. The territory proposed to be annexed to the CFD No. 2017-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 15, Community Facilities District No. 2017-1 (Maintenance Services), City of Menifee, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

Section 5. Description of Authorized Services. The services proposed to be financed by the territory proposed to be annexed to the CFD No. 2017-1 (the “Services”) are the same as those services authorized to be financed by the existing territory in the CFD No. 2017-1 and are described in Exhibit B attached hereto. The cost of providing the Services includes “Administrative Expenses,” which include costs associated with the creation of CFD No. 2017-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2017-1. The Services authorized to be financed by CFD No. 2017-1 are in addition to those currently provided in the territory of CFD No. 2017-1 and do not supplant Services already available within that territory.

Section 6. Plan for Providing Services. The Services will be provided within the territory proposed to be annexed to the CFD No. 2017-1 and the existing territory in the CFD No. 2017-1 on the same basis.

Section 7. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including Administrative Expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2017-1 , will be levied annually within the territory proposed to be annexed to the CFD No. 2017-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 8. No Alteration of the Special Tax Levied in the Existing CFD No. 2017-1. The City Council does not propose to alter the special tax rate levied within the existing territory in the CFD No. 2017-1.

Section 9. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2017-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his or her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Section 10. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on Wednesday, September 21, 2022 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the area depicted on the Annexation Map and described in Exhibit A hereto territory to the CFD No. 2017-1.

Section 11. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 6
Menifee Mayor and City Council August 3, 2022

Page 147 of 359 ends

3 F, one time in a newspaper of general circulation published in the area of CFD No. 2017-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act.

Section 12. Mailing Ballots . In anticipation of its action on Wednesday , September 21, 2022, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2017-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

Section 13. Authorization to Take Action. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 14. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 3rd day of August, 2022.

A
TTEST: APPROVED:

Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor A
PPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 7
Menifee Mayor and City Council August 3, 2022

Page 148 of 359 ends

EXHIBI
T A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Menifee Community Facilities District No . 2017-1 (Maintenance Services) (the “CFD No. 2017-1”) Annexation No. 15 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Number (APN).

Assessor Parcel Number(s) Owner Name
339-200-080 Boulders Menifee LLC
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 8
Menifee Mayor and City Council August 3, 2022

Page 149 of 359 ends

EXHIBI
T B

DESCRIPTION OF AUTHORIZED SERVICES
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 9
Menifee Mayor and City Council August 3, 2022

Page 150 of 359 ends

City of Menifee 12
Community Facilities District No. 2017-1 (Maintenance Services)

APPENDIX B
CI

TY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
T
he services which may be funded with proceeds of the special tax of CFD No. 2017-1 , 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-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a
) m
aintenance 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 and servicing of the water quality basin improvements within flood control channel improvements; and (c) p
ublic street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1 ; and any portions adjacent to the properties within CFD No. 2017-1; and I
n addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by p roceeds of the special tax of CFD No. 2017 -1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017 -1 before the territory was annexed, as applicable.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 10
Menifee Mayor and City Council August 3, 2022

Page 151 of 359 ends

EXHIBI
T C

RATE AND METHOD OF APPORTIONMENT
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 11
Menifee Mayor and City Council August 3, 2022

Page 152 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2017‐1 (Maintenance Services) (the “CFD No. 2017‐1” or “CFD”; defined below), in each
Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2018, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2017‐1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2017‐1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.

“Administrative Expenses” means the actual
or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2017‐1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2017‐1, or any designee thereof associated with fulfilling the CFD No. 2017‐1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2017‐1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2017‐1 and third party expenses related to CFD No. 2017‐1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2017‐1 for any other administrative purposes of CFD No. 2017‐1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of
Menifee, or his or her designee.

“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit
on or prior to the June 1 preceding the Fiscal year in
which the special tax is being levied.

“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

“Assessor’s Parcel Map” means an
official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 12
Menifee Mayor and City Council August 3, 2022

Page 153 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 2 construction building per mit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such Non‐Residential Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and e nding the following December 31.
“CFD” or “CFD No. 2017‐1” means the City of Menifee Community Facilities District No. 2017‐1 (Maintenance Services).
“City” means the City of Menifee.
“Contingent Services” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017‐1 as set forth in the docu
ments adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to ad
equately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levie d.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condomi
nium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Ta x is being levied. “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levie d on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 13
Menifee Mayor and City Council August 3, 2022

Page 154 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 3 “Multi‐Fa mily Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed. “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a buildi ng permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” mean
s for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeve
loped Property that the ratio of the actual Special
Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
“Residential Unit” or "RU" means a residential unit that is used or inte nded to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for pur poses of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017‐1 as set forth in the documents adopted by the City Council at the tim e the CFD was formed. “Single Family Residential Property” or “SFR” means any Residential Property other than Multi‐Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be le
vied in each Fiscal Year on each Assessor’s Parcel of
Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certai n costs as required to meet the needs of such Tax Zone within CFD No. 2017‐1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) main
tenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
“Special Tax B (Con
tingent)” 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 (Contingent) Requirement, if required.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 14
Menifee Mayor and City Council August 3, 2022

Page 155 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 4 “Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2017‐1, which are not Exempt Property.

“Taxable Unit” means a Residential
Unit, Building Square Footage, or an Acre.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2017‐1 at formation; additional Tax Zones may be created when property is annexed into the CFD.

"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.

"Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii)
identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2017‐1 shall be classified
as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non‐Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi‐ Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 15
Menifee Mayor and City Council August 3, 2022

Page 156 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 5 Building Sq uare Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as incl uded in Appendix A as each annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Spe cial Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones anne xed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 1 below:

TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone   Tract Lan
d Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36299‐1
& PM 9504
Single Family Residential Property RU $158
Multi‐Family Residential Property RU $158
Non‐Residential Property Acre $1,714
(ii) Increase in th
e Maximum Special Tax A
On ea ch July 1, commencing on July 1, 2019 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two per cent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property ma y contain more than one Land Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel.   For an Assesso
r's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel.   The Administrator's allocation to each type of prop erty shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD.   When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexe
d and included in Appendix A.  The Maximum Special Tax A for Approved Property for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 2 below:

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 16
Menifee Mayor and City Council August 3, 2022

Page 157 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 6 TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPRO
VED PROPERTY
Tax
Zone   Tract Lan
d Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36299‐1
& PM 9504
Single Family Residential Property RU $158
Multi‐Family Residential Property RU $158
Non‐Residential Property Acre $1,714
On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two per
cent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone anne
xed and included in Appendix A.  The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 3 below:

TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 36299‐1
& PM 9504 Acre $1,515
On each July 1, com
mencing on July 1, 2019 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two per
cent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circu mstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains si milar 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 the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 17
Menifee Mayor and City Council August 3, 2022

Page 158 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 7 (i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 4 below:

TABLE 4
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
(Contingent)
1 TR 36299‐1
& PM 9504
Single Family Residential Property RU $0
Multi‐Family Residential Property RU $0
Non‐Residential Property Acre $0

(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐ 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 5 below:

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 18
Menifee Mayor and City Council August 3, 2022

Page 159 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 8 TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPRO
VED PROPERTY
Tax
Zone Tract Lan
d Use Category
Taxable
Unit
Maximum
Special Tax B
(Contingent)
1 TR 36299‐1
& PM 9504
Single Family Residential Property RU $0
Multi‐Family Residential Property RU $0
Non‐Residential Property Acre $0
On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two perce nt (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐ 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and in cluded in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 6 below:

TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit
Maximum Special
Tax B (C ontingent)
1 TR 36299‐1
& PM 9504 Acre $0
On each July 1, commen
cing on July 1, 2019 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two per
cent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2018‐19 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Ta x A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

First: The Special Tax A shall be levied Pro portionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement; Second: 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 Parcel of Approved Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 19
Menifee Mayor and City Council August 3, 2022

Page 160 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 9 Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Spe cial Tax A Requirement after the first two
steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fis
cal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals th e Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

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

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2017‐1 from time to ti me. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and in
cluded in Appendix A.

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

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Conti ngent Services are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2017‐1, all Assessor’s; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements mak ing impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 20
Menifee Mayor and City Council August 3, 2022

Page 161 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 10 H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2017‐1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2017‐1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 21
Menifee Mayor and City Council August 3, 2022

Page 162 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 11 APPENDIX A
CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2022‐23. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2017‐1 Tax Zone 15.

TAX ZONE 15 (SERVICES)
PLN 20‐0167
Item Description Estimated Cost
1 Landscaping $1,315
2 Lighting $1,600
3 Streets $2,333
4 Drainage $283
5 Parks $24,191
6 Graffiti $769
7 Reserves $439
8 Administration $1,660
Total $32,590
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2022‐23. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017‐1 Tax Zone 15.

TAX ZONE 15 (CONTINGENT SERVICES)
PLN 20‐0167
Item Description Estimated Cost
1 Drainage $17,299
2 Reserves $1,730
3 Administration $1,000
Total $20,029
TAX ZONE 15
FY 2022‐23 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed Acre $3,865 $2,375
Approved Acre $3,865 $2,375
Undeveloped Acre $3,865 $2,375

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 22
Menifee Mayor and City Council August 3, 2022

Page 163 of 359 ends

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 23
Menifee Mayor and City Council August 3, 2022

Page 164 of 359 ends

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 13 APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES) DESCRIPTION OF AUTHORIZED SERVICES

The services which may be funded with proceeds of the special tax of CFD No. 2017‐1, 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‐way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing 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. 2017‐1; as well as local roads within residential subdivisions located within CFD No. 2017‐1; and any portions adjacent to the properties within CFD
No. 2017‐1; and

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of
the special tax of CFD No. 2017‐1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017‐1 before CFD No. 2017‐1 was created or those provided in the territory annexed to CFD No. 2017‐1 before the territory was annexed, as applicable.

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 24
Menifee Mayor and City Council August 3, 2022

Page 165 of 359 ends

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 25
Menifee Mayor and City Council August 3, 2022

Page 166 of 359 ends

AUD
IE MUR
PHY RD
339-200-080
358-090-049
BEREA
RD

MURPHY RANCH
RD
DOR
VAL CT
NEWP
ORT
RD
ANNEXATION MAP NO. 15
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET

T H I S M A P S H O W S T H E B O U N D A R I E S O F A R E A S T O B E ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY O F R I V E R S I D E , S T A T E O F C A L I F O R N I A .

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
NOVEMBER 7, 2017 IN BOOK 81 OF MAPS OF ASSESSMENT
AND COMMUNITY FACILITIES DISTRICT AT PAGE 69 AND
A S I N S T R U M E N T N O . 2 0 1 7 - 0 4 6 5 7 0 6 I N T H E O F F I C E O F T H E

C O U N T Y R E C O R D E R O F T H E C O U N T Y O F R I V E R S I D E , S T A T E O F C A L I F O RN I A .

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

CITY COUNCIL OF THE CITY OF MENIFEE AT A REGULAR
MEETING THEREOF , HELD ON ______ DAY OF ______,
20____,
BY ITS RESOLUTION NO. _______________
___________________________________

CITY CLERK

C IT Y OF ME NIFE E

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF MENIFEE, THIS _______ DAY OF _________________, 20___.
___________________________________

CITY CLERK

C IT Y OF ME NIFE E
FILED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____

OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES
DISTRICTS AT PAGE ______ IN THE OFFICE OF THE

COUNTY RECORDER, IN THE COUNTY OF RIVERSIDE,
ST A TE OF CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY
CFD 2017-1
TAX ZONE 15
^_
·|}þ74
§¨¦
215
§¨¦
15 ·|}þ79

MENIFEE

THIS ANNEXATION MAP CORRECTY SHOWS THE LOT OR

PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF
THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS

CONCERNING THE LINES AND DIMENSIONS OF LOTS OR

PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR
FISCAL YEAR 2022-23.
-
LEGEND

ANNEXATION AREA BOUNDARY

PARCEL LINE

CITY BOUNDARY

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
15 TAX ZONE
15 Item Title: 10.7 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 26
Menifee Mayor and City Council                                                                               August 3, 2022 Page 167 of 359

Item Title: 10.7 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 27
Menifee Mayor and City Council                                                                               August 3, 2022 Page 168 of 359

EXHIBI
T E

PETITION
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 28
Menifee Mayor and City Council August 3, 2022

Page 169 of 359 ends

PETITION TO THE CITY COUNCIL OF THE CITY OF MENIFEE REQUESTING ANNEXING TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2017- 1 (MAINTENANCE SERVICES) OF PROPERTY WITHIN THE CITY OF MENIFEE AND

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

CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE

COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES

DISTRICT

1. The undersigned requests that the City Council of the City of Menifee, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2017-1 (Maintenance Services) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District.

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

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

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed annexation into Community Facilities District No. 2017-1.

The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on annexing territory into Community Facilities District No. 2017-1 or at the next available meeting.

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

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2017-1 of the portion of the incorporated Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 29
Menifee Mayor and City Council August 3, 2022

Page 170 of 359 ends

area of the City of Menifee or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure.

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

Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:

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

City Clerk of the City Council of the
City of Menifee
20-0167
15916 BERNARDO CENTER DR. SAN DIEGO CA 92127
Richard D. Wilson
Managing Partner
12 April 22
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 30
Menifee Mayor and City Council August 3, 2022

Page 171 of 359 ends

INSERT EXHIBIT A: LEGAL DESCRIPTION
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 31
Menifee Mayor and City Council August 3, 2022

Page 172 of 359 ends

INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 32
Menifee Mayor and City Council August 3, 2022

Page 173 of 359 ends

Acknowledgment Regarding Property to be Included into Community Facilities District No. 2017-1 (Maintenance Services)
The developer/property owner of (Tract No. / Assessor’s Parcel No.) hereby acknowledges that:

If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. 2017-1 (Maintenance Services) the maintenance areas of ( Assessor’s Parcel Nos.) , which is to be included in the Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements.

DATED: OWNER(S):
(Print Name)
(Signature)
(Title)
(Print Name)
(Signature)
(Title)
339-200 080

RICHARD WILSON

MANAGING PARTNER, THE BOULDERS
339200080
N/A
N/A
N/A

4.12.2022
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 33
Menifee Mayor and City Council August 3, 2022

Page 174 of 359 ends

EXHIBI
T F

NOTICE OF PUBLIC HEARING
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 34
Menifee Mayor and City Council August 3, 2022

Page 175 of 359 ends

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 15)
NOTICE IS HEREBY GIVEN that the City Council of the City of Menifee on August 3, 2022 adopted its Resolution No. 2022-__, in which it declared its intention to annex territory to existing Community Facilities District No. 2017-1 (Maintenance Services) (the "CFD No. 2017-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2017-1 is proposed.

DATED: ____________, 2022 _________________________________________ City Clerk of the City of Menifee
PUB: ____________, 2022
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 35
Menifee Mayor and City Council August 3, 2022

Page 176 of 359 ends

EXHIBI
T G
BALLOT
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 36
Menifee Mayor and City Council August 3, 2022

Page 177 of 359 ends

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 15
(September 21, 2022)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee:

Name of Landowne
r Number of Acres Owned Total Votes
Boulders Menifee LLC 9.92 10
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “
Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than September 7, 2022, two calendar weeks prior to the date set for the election.

Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on September 21, 2022, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However deliv ered, this ballot must be receiv ed by the Clerk prior to the close of the public meeting on September 21, 2022.

Very truly yours,
Stephanie Roseen
Acting City Clerk
City of Menifee
Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 37
Menifee Mayor and City Council August 3, 2022

Page 178 of 359 ends

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

Boulders Menifee LLC
Attn: Richard D. Wilson
15916 Bernardo Center Dr.

San Diego, CA 92127
339‐200‐080

CITY OF MENIFEE

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2017-1 (Maintenance Services) adopted by the City Council on August 3, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 15 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” to finance certain services as set forth in Section 5 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

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

Richard D. Wilson
Managing Partner

Signature
Print Name

Item Title: 10.7
Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 38
Menifee Mayor and City Council August 3, 2022

Page 179 of 359 ends

NORMANDY ROAD

BEREA ROAD

PROJECT BOUNDARY

PROJECT BOUNDARY
DATE:APRIL 24, 2022

NEWPORTNORMANDYBEREASITESPIRITPARK

MURRIETA
LOCATION MAP (N.T.S.)
DORVAL
CFD MAINTENANCE AREASTREET30,738 S.F.0.71 ACSIDEWALK 7,440 S.F.0.17 ACSTREETSCAPE 7,290 S.F.0.17 ACSTREET TREE19 EA.STREET LIGHT 6 EA.SHT.1 OF 1BOULDERS MIXED USECFD MAINTENANCESITE PLAN EXHIBIT 21' 11"
Quantity: 1
7 9
Item Title: 10.7 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 39
Menifee Mayor and City Council                                                                               August 3, 2022 Page 180 of 359

DATE:APRIL 24, 2022

NEWPORTNORMANDYBEREASITESPIRITPARK

MURRIETA
LOCATION MAP (N.T.S.)
DORVAL
SHT.1 OF 1BOULDERS MIXED USEOWNER ON-SITEMAINTENANCE EXHIBIT

OWNER ON-SITE MAINTENANCE
Item Title: 10.7 Resolution of Intention for Community Facilities District 2017-1, Annexation No. 15, The Boulders Item Page Number: 40
Menifee Mayor and City Council                                                                               August 3, 2022 Page 181 of 359

CITY OF MENIFEE
SUBJECT: Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village
MEETING DATE: August 3, 2022
TO: Mayor and City Council
PREPARED BY: Jizelle Sandoval, Financial Analyst
REVIEWED BY: Margarita Cornejo, Deputy Finance Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a Resolution of Intention to establish Community Facilities District (CFD) 2022-2, McLaughlin Village, located at the intersection of Barnett Road and McLaughlin Road, to authorize the levy of a special tax to pay the costs of acquiring or constructing certain facilities, to pay debt service on bonded indebtedness; and

2. Approve the form and authorize the City Manager to execute a reimbursement agreement; and

3. Adopt a resolution to incur bonded indebtedness in an amount not-to-exceed $6,000,000 for CFD 2022-2, McLaughlin Village.

DISCUSSION
Century Communities of California, LLC, a Delaware limited liability company (“Developer”) is proposing to develop a residential community of 126 homes on approximately 15 gross acres within the City. The property is located at the intersection of Barnett Road and McLaughlin Road, as shown in the attached location map. The Developer has requested that the City form a Community Facilities District (“CFD No. 2022-2”) in accordance with the Mello-Roos Community Facilities Act of 1982, as amended, to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds in an amount not-to-exceed $6,000,000. The Developer has requested that the boundaries of CFD No. 2022-2 include the area described in Attachment A of the Resolution of Intention to establish CFD No. 2022-2 (the “Resolution of Intention”) and that special taxes be levied within the boundaries of CFD No. 2022-2 in accordance with the Rate and Method of Apportionment (the “RMA”) as described in Attachment C to the Resolution of Intention.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 1
Menifee Mayor and City Council August 3, 2022

Page 182 of 359 ends

City of Menifee Staff Report
ROI for the Formation of CFD 2022-2 McLaughlin Village
August 3, 2022

Page 2 of 3 ends

1 1
2 3
This proposed CFD No. 2022-2 was previously presented to the Finance Committee and was recommended for submittal to the City Council for approval.

The Resolution of Intention is the first step in the process to form CFD No. 2022-2. The attached resolutions declare the City’s intention to establish CFD No. 2022-2 and the intention to incur bonded indebtedness by CFD No. 2022-2 and call for a public hearing. A public hearing on the matter would take place on September 21, 2022, and at that time the Council would formally consider approval to form CFD No. 2022-2 and hold an election on the approval of the special taxes and the incurring of bonded indebtedness within CFD No. 2022-2.

The Developer proposes to enter into a joint community facilities agreement (the “JCFA”) with the City and Romoland School District (the “School District”) relating to certain facilities proposed to be financed by CFD No. 2022-2 and owned and operated by the School District, and the City expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act.

The proposed development is proposing to build 126 residential units with home sizes ranging from 1,995 to 2,491 square feet. The total tax effective tax rate is estimated to be at or below

2.00% of projected home prices, which is the allowable tax rate limit in the City’s Financing Goals and Policies. The estimated assigned annual tax rates range from $2,415 for home sizes less than 2,100 square feet to $2,506 for home sizes greater than 2,300 square feet, which rates would escalate at 2% per year.

The anticipated issuance amount based on current rates would be approximately $4,685,000 which would cover a reserve fund, financing costs, and generate approximately $3,822,686 in net bond proceeds for facilities. The proposed facilities, which may be funded with proceeds of the bonds are currently estimated to be:

Table 1
$404,208 City Priority Facilities
(20% premium to Project Specific Priorities, per City’s CFD Goals & Policies)
$2,021,040 City Development Impact Fees & Quimby Fees
$1,397,438 Romoland School District Facilities
$3,822,686 TOTAL Funded by Bond Proceeds (Rounded)
The amount of the foregoing facilities costs which exceed available bond proceeds would be funded by the Developer.

In addition to the costs of the forgoing facilities, proceeds of the special tax may be expended to pay administrative costs.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 2
Menifee Mayor and City Council August 3, 2022

Page 183 of 359 ends

City of Menifee Staff Report
ROI for the Formation of CFD 2022-2 McLaughlin Village
August 3, 2022

Page 3 of 3 ends

1 1
2 3

FISCAL IMPACT
The Developer made a deposit to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with the attached reimbursement agreement. CFD No. 2022-2 would annually levy special taxes on all of the taxable property within CFD No. 2022-2 in accordance with the RMA in order to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2022-2. Any bonds issued by CFD No. 2022-2 would not be obligations of the City and would be secured solely by the Special Taxes levied in CFD No. 2022-2.

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention to Establish CFD No. 2022-2

3. Resolution of Intention to Incur Debt

4. Reimbursement Agreement

5. Landowner Petition
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 3
Menifee Mayor and City Council August 3, 2022

Page 184 of 359 ends

SUMMER SUNSHINE DR

TRUMBLE
RD

BLAZE LN

HELENE WAY

BARNETT

RDMCLAUGHLIN RD
§¨¦
215
^_

CH AMBERS AVE

ROUSE R D

WATSON RD

MCCALL BLVD

SHERMAN RD

PALOMA WAY

PACKARD ST

MATTHEWS
RD

EVANS RD

RIDGEMOOR RD

BALDY PEAK DR BRADLEY

RDCONEJO
D R
§¨¦215 ·|}þ74
CFD NO. 2022-2 (MCLAUGHLIN VILLAGE)

PROJECT MAP
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 4
Menifee Mayor and City Council August 3, 2022

Page 185 of 359 ends

4880-5640-1695v3/200299-0010
RESOLUTION NO. 22-___

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE

CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES
DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE) OF THE CITY

OF MENIFEE, TO AUTHORIZE THE LEVY OF A SPECIAL TAX

TO PAY THE COSTS OF ACQUIRING OR CONSTRUCTING

CERTAIN FACILITIES AND TO PAY DEBT SERVICE ON

BONDED INDEBTEDNESS
WHEREAS, the City of Menifee (the “City”) received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee” (“Community Facilities District No. 2022-2” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2022-2; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2022-2 and the issuance of bonded indebtedness in an amount not to exceed $6,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2022-2; WHEREAS, the City desires to enter into a reimbursement agreement with Century Communities of California, LLC, a Delaware limited liability company (the “Developer”), the form of which is on file with the City Clerk and has been presented to the City Council concurrent with the City Council’s consideration of this Resolution (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District;
WHEREAS, the District and the Developer propose to enter into a joint community facilities agreements (the “JCFA”) with Romoland School District relating to certain facilities proposed to be financed by the District and owned and operated by Romoland School District, Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 5
Menifee Mayor and City Council August 3, 2022

Page 186 of 359 ends

2 4880-5640-1695v3/200299-0010
4 5
2 8
0 and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act.

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

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2022-2 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk- Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee.” Section 4.The Facilities proposed to be provided within Community Facilities District No. 2022-2 are public facilities as defined in the Act, which the City and Romoland School District, with respect to certain school facilities, as applicable, are authorized by law to construct, acquire, own, and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

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

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

The rate and method of apportionment and manner of collection of the Special Tax are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 6
Menifee Mayor and City Council August 3, 2022

Page 187 of 359 ends

3 4880-5640-1695v3/200299-0010
4 5
2 8
0 amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Attachment “C” hereto, (ii) such Special Tax not shall be levied after fiscal year 2064-65, as described in Attachment “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2022-2 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2022-2 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities District No. 2022-2, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2022-2 which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” hereto.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2022-2, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on September 21, 2022, at the City Council Chambers, 29844 Haun Road, Menifee, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2022-2 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2022-2 for the exclusive purpose of paying principal of or interest Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 7
Menifee Mayor and City Council August 3, 2022

Page 188 of 359 ends

4 4880-5640-1695v3/200299-0010
4 5
2 8
0 on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2022-2 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2022-2, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2022-2 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2022-2, may appear and be heard.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2022-2, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2022-2 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2022-2. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2022-2. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Six Million Dollars ($6,000,000).

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 8
Menifee Mayor and City Council August 3, 2022

Page 189 of 359 ends

5 4880-5640-1695v3/200299-0010
4 5
2 8
0 Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Assistant City Manager, or their written designees are hereby authorized and directed to execute and deliver the Reimbursement Agreement in the form on file with the City Clerk with such changes, insertions and omissions as may be approved by the officer or officers executing such agreement, said execution being conclusive evidence of such approval.

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

Section 15. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 3rd day of August, 2022.

ATTEST: APPROVED:

Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 9
Menifee Mayor and City Council August 3, 2022

Page 190 of 359 ends

A-1
4880-5640-1695v3/200299-0010

ATTACHMENT A

BOUNDARY MAP
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 10
Menifee Mayor and City Council August 3, 2022

Page 191 of 359 ends

B-1
4880-5640-1695v3/200299-0010

ATTACHMENT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); and (ii) interim and permanent school facilities of Romoland School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning, and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion, and inspection of the Facilities.

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

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 11
Menifee Mayor and City Council August 3, 2022

Page 192 of 359 ends

C-1
4880-5640-1695v3/200299-0010

ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-2
(MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise defined herein 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 Menifee Community Facilities District No. 2022-2 (McLaughlin Village) ("CFD No. 2022-2"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2022-2, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

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 Community 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. 2022-2: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2022-2 and any major property owner 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. 2022-2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022-2 for any other administrative purposes of CFD No. 2022-2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor’s Parcel Number from the County Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 12
Menifee Mayor and City Council August 3, 2022

Page 193 of 359 ends

C-2
4880-5640-1695v3/200299-0010
shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, 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 the Special Tax of CFD No. 2022-2 have been pledged. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD. "Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
"CFD” or “CFD No. 2022-2" means Community Facilities District No. 2022-1 (McLaughlin Village) established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“City” means the City of Menifee, State of California.
"City Council" means the City Council of the City of Menifee, acting as the legislative body of CFD No. 2022-2.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 13
Menifee Mayor and City Council August 3, 2022

Page 194 of 359 ends

C-3
4880-5640-1695v3/200299-0010
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022-2 on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 14
Menifee Mayor and City Council August 3, 2022

Page 195 of 359 ends

C-4
4880-5640-1695v3/200299-0010
Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. “RMA" means this Rate and Method of Apportionment of Special Taxes. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2022-2 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022-2 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-2, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “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, or Provisional Undeveloped Property.

B. SPECIAL TAX
Commencing Fiscal Year 2022/23 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 15
Menifee Mayor and City Council August 3, 2022

Page 196 of 359 ends

C-5
4880-5640-1695v3/200299-0010
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022/23, each Assessor’s Parcel within CFD No. 2022-2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

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 assigned to a Land Use Category based on its Building Square Footage.

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

D. MAXIMUM SPECIAL TAX

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

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non- Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.
a. Assigned Special Tax
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. The Assigned Special Tax for Fiscal Year 2022/23 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 16
Menifee Mayor and City Council August 3, 2022

Page 197 of 359 ends

C-6
4880-5640-1695v3/200299-0010
TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022/23
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential Property RU Less than 2,100 sq. ft $2,415.00

2. Single Family Residential Property RU 2,100 sq. ft to 2,300 sq. ft $2,461.00

3. Single Family Residential Property RU Greater than 2,300 sq. ft $2,506.00

4. Multifamily Property Acre N/A $49,979.00

5. Non-Residential Property Acre N/A $49,979.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single- Family Residential Property or Approved Property expected to be classified as Single-Family Residential Property shall calculated according to the following formula.

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

B = Backup Special Tax per Assessor’s Parcel classified as Single-Family Residential Property or Approved Property expected to be classified as Single-Family Residential Property within the Final Map.

U = Maximum Special Tax per Acre of Undeveloped Property per Section D.3 below.

A = Acreage of Single-Family Residential Property expected to exist after build-out in such Final Map at the time of calculation, as determined by the Administrator L = Number of Assessor’s Parcels of Single-Family Residential Property expected to exist after build-out in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $49,979 per Acre.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 17
Menifee Mayor and City Council August 3, 2022

Page 198 of 359 ends

C-7
4880-5640-1695v3/200299-0010
Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.

In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $49,979 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single-Family Residential Property shall be $49,979 per Acre.

On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $49,979 per Acre.

On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2022/23 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rates in Table 1 to satisfy the Special Tax Requirement.

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

Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100% Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 18
Menifee Mayor and City Council August 3, 2022

Page 199 of 359 ends

C-8
4880-5640-1695v3/200299-0010
of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

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

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

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non-Residential Property or (vii) 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 6.20 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 6.20 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 6.20 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $4,000,000 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 facilities under the authorized bonding program for CFD No. 2022-2, or (ii) determined by the City Council concurrently with a Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 19
Menifee Mayor and City Council August 3, 2022

Page 200 of 359 ends

C-9
4880-5640-1695v3/200299-0010
covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2022-2.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The 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) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 20
Menifee Mayor and City Council August 3, 2022

Page 201 of 359 ends

C-10
4880-5640-1695v3/200299-0010
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

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

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

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

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

6. Determine the Future Facilities Costs.

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

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

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

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 21
Menifee Mayor and City Council August 3, 2022

Page 202 of 359 ends

C-11
4880-5640-1695v3/200299-0010
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, 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 Special Tax obligation for the Assessor’s Parcel and the redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).

13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

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

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

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

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

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

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

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

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 22
Menifee Mayor and City Council August 3, 2022

Page 203 of 359 ends

C-12
4880-5640-1695v3/200299-0010

2. Prepayment in Part
The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional 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:

Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Partial Prepayment Amount. Within 15 business days of receipt of such non- refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

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

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax pursuant to Section E. The Special Tax shall cease not later than the 2064-2065 Fiscal Year, however, Special Taxes will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022-2 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2022- 2 have been satisfied.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 23
Menifee Mayor and City Council August 3, 2022

Page 204 of 359 ends

C-13
4880-5640-1695v3/200299-0010
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes levied 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 unless approved by the CFD Administrator.

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

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 24
Menifee Mayor and City Council August 3, 2022

Page 205 of 359 ends

4859-6219-8815v3/200299-0010
RESOLUTION NO. 22-___

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE

CITY OF MENIFEE TO INCUR BONDED INDEBTEDNESS IN AN
AMOUNT NOT TO EXCEED $6,000,000 WITHIN PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN

VILLAGE) OF THE CITY OF MENIFEE
WHEREAS, the City Council of the City of Menifee (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee (“Community Facilities District No. 2022-2” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. _____ adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and,
WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $6,000,000; and, WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $6,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2022- 2, other than those properties exempted from taxation in the rate and method of apportionment set forth in Attachment “C” to Resolution No. _____.

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

Section 1. The above recitals are true and correct.

Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2022-2 in an amount not to exceed $6,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.

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

Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $6,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 25
Menifee Mayor and City Council August 3, 2022

Page 206 of 359 ends

2 4859-6219-8815v3/200299-0010
4 5
2 8
1 body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on September 21, 2022, at the City Council Chambers, 29844 Haun Road, Menifee, California.

Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2022-2, may appear and be heard.

Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2022-2. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2022-2 at least 15 days prior to the Hearing.

PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 3rd day of August, 2022.

ATTEST: APPROVED:

Stephanie Roseen, Acting, City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 26
Menifee Mayor and City Council August 3, 2022

Page 207 of 359 ends

A-1
4859-6219-8815v3/200299-0010

ATTACHMENT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee The proposed types of public facilities and expenses to be financed by the District include:

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

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 27
Menifee Mayor and City Council August 3, 2022

Page 208 of 359 ends

S-1
4869-8744-3999v3/200299-0010

REIMBURSEMENT AGREEMENT

RE PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2022-2

OF THE CITY OF MENIFEE (MCLAUGHLIN VILLAGE)

THIS REIMBURSEMENT AGREEMENT RE PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2022-2 OF THE CITY OF MENIFEE (MCLAUGHLIN VILLAGE) (the “Agreement”) dated as of August 3, 2022 is entered into by and between the City of Menifee, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and Century Communities of California, LLC, a Delaware limited liability company (the “Developer”).

R E C I T A L S :

A. The Developer is developing approximately 15 acres of land described in Exhibit A attached hereto (the “Property”) for which the Developer desires to include the Property within proposed Community Facilities District No. 2022-2 of the City of Menifee (McLaughlin Village) (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).

B. The City and the Developer are desirous of entering into this Agreement in order to provide a mechanism by which the Developer may advance certain costs related to the cost of formation of the District, and to provide that such District, if formed, will reimburse the Developer for the amounts advanced hereunder.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:

1. Recitals. Each of the above recitals is incorporated herein and is true and correct.

2. Potential Formation of the District and Issuance of Bonds. (a) At the request of the Developer, the City will undertake to form the District.

The City will retain, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the District and issuance of bonds, including an engineer, special tax consultant, financial advisor, bond counsel, market absorption consultant, appraiser and other consultants deemed necessary by the City. In addition, City staff time spent in connection with the formation of the District and the issuance of bonds shall be at Developer’s expense. (b) In order to fund the process of analyzing the potential formation of the District, the Developer has caused to be advanced to the City a sum totaling $70,000. From time to time, the Developer shall make additional advances to the City within 15 days following receipt from the City of a request for an additional advance to cover the costs of forming the District and/or issuing bonds. In the event the Developer does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the analysis or bond issue unless and until such additional advance is received. The Developer shall have the right to notify the City at any time, in writing, of its intention to abandon the formation of the District or the issuance of bonds.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 28
Menifee Mayor and City Council August 3, 2022

Page 209 of 359 ends

Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as practicable. The Developer shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Developer’s notice of abandonment. Notwithstanding a decision of the Developer to abandon the formation of the District or the issuance of bonds, the City may, in its sole discretion, elect to proceed with formation of the District and/or the issuance of bonds with funds other than those of the Developer; provided, however, that, in executing this Agreement, the Developer or owner of the Property shall not be deemed to have waived their right to object to the formation of the District or the issuance of bonds.
(c) The City will provide to the Developer on request a summary of how the advances have been spent and the unexpended balance remaining. With the exception of $5,000, which is nonrefundable, amounts advanced by the Developer will be reimbursable to the Developer, without interest, from the proceeds of bonds issued by the District when and if the District is formed.

In the event that bonds are not issued to provide a source of reimbursement to the Developer, the City shall have no liability to the Developer to reimburse them for any of amounts previously advanced by the Developer and expended by the City in accordance with this Agreement.

3. Reimbursement Procedure. The City shall return any funds which have been advanced by the Developer which are not expended on the purposes set forth in Section 2 above.

Such returned funds shall be without interest.

4. Abandonment of CFD Formation Process. The Developer understands that any formation of the District shall be in the sole discretion of the City. No provision of this Agreement shall be construed as a promise, warranty, or agreement by the City to form the District, to annex the Property to any other district or improvement area of the City or to issue any bonds. The City shall have no liability to Developer for its decision not to form the District or issue bonds.

5. Indemnification and Hold Harmless. The Developer hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, 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 arising out of any acts or omissions taken by the Developer or any of the Developer’s officers, employees, contractors and agents with respect to the formation of the District.

6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:

Developer Century Communities
4695 MacArthur Court, 300
Newport Beach, CA 92660
Attention: Brian Taylor
Telephone: (949) 420-9531
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 29
Menifee Mayor and City Council August 3, 2022

Page 210 of 359 ends

With a copy to: O’Neil LLP
19900 MacArthur Blvd., Suite 1050
Irvine, CA 92612
Attention: John P. Yeager, Esq.

Telephone: (949) 798-0722
Email: [email protected]
City: City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Assistant City Manager
Telephone: (951) 672-6777
Email: [email protected]
With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.

Telephone: (949) 725-4193
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

7. Assignment. The Developer may assign its interest in this Agreement at any time provided, however, that the Developer shall provide written evidence of any assignment to the City.

8. 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 permitted by law.

9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.

10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.

11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

12. 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.

13. No Third-Party Beneficiaries. 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 and the Developer, any rights, remedies, obligations, or liabilities under or by reason of this Agreement.

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 30
Menifee Mayor and City Council August 3, 2022

Page 211 of 359 ends

14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

15. Termination. This Agreement shall terminate and be of no further force and effect on December 31, 2027, unless expressly amended by the parties; provided, however, that the Developer’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

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

Armando G. Villa, City Manager
ATTEST:

By:

Stephanie Roseen, Acting City Clerk

CENTURY COMMUNITIES OF CALIFORNIA,
LLC, a Delaware limited liability company
By:

By: Justin Brewer
Its: Authorized Signor
APPROVED AS TO FORM:

CITY ATTORNEY
By:

Jeffrey T. Melching, City Attorney
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 31
Menifee Mayor and City Council August 3, 2022

Page 212 of 359 ends

A-1
4869-8744-3999v3/200299-0010

EXHIBIT A

DESCRIPTION OF PROPERTY
Real property in the City of Menifee, County of Riverside, State of California, described as follows:

Assessor Parcel No. (as set forth in the County of Riverside Assessor’s Fiscal Year 2021-22 Roll): 331- 090-008
Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 32
Menifee Mayor and City Council August 3, 2022

Page 213 of 359 ends

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 33
Menifee Mayor and City Council August 3, 2022

Page 214 of 359 ends

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 34
Menifee Mayor and City Council August 3, 2022

Page 215 of 359 ends

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 35
Menifee Mayor and City Council August 3, 2022

Page 216 of 359 ends

Item Title: 10.8
Resolution of Intention to Form Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 36
Menifee Mayor and City Council August 3, 2022

Page 217 of 359 ends

CITY OF MENIFEE
SUBJECT: Resolution of Intention to Form Community Facilities District No. 2022-3, Legado
MEETING DATE: August 3, 2022
TO: Mayor and City Council
PREPARED BY: Jizelle Sandoval, Financial Analyst
REVIEWED BY: Margarita Cornejo, Deputy Finance Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution of intention to establish Community Facilities District (CFD) No. 2022-3, Legado, located to the northwest of Antelope Boulevard and Chambers Avenue and south of Rouse Road, to authorize the levy of a special tax to pay the costs of acquiring or constructing certain facilities, to pay debt service on bonded indebtedness; and

2. Approve the form and authorize the City Manager to execute a reimbursement agreement; and

3. Adopt a resolution to incur bonded indebtedness in an amount not-to-exceed $40,000,000 for Improvement Area No. 1 and $45,000,000 for Improvement Area No. 2 for CFD No. 2022-3, Legado.

DISCUSSION
BLC Fleming, LLC, a Delaware limited liability company (“Developer”) is proposing to develop a residential community of 1,022 homes on approximately 263 gross acres within the City. The property is located to the northwest of Antelope Boulevard and Chambers Avenue and south of Rouse Road, as shown in the attached location map. The Developer has requested that the City form a Community Facilities District (“CFD No. 2022-3”) and two improvement areas therein (“Improvement Area No. 1” and “Improvement Area No. 2”) in accordance with the Mello-Roos Community Facilities Act of 1982, as amended, to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds in an amount not-to exceed $40,000,000 for Improvement Area No. 1 and $45,000,000 for Improvement Area No. 2 (for a total of $85,000,000). The Developer has requested that the boundaries of CFD No. 2022- 3 and the Improvement Areas therein include the area described in Attachment A of the resolution of intention to establish CFD No. 2022-3 (the “Resolution of Intention”) and that special taxes be levied within the boundaries of Improvement Area No. 1 in accordance with the Rate and Method Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 1
Menifee Mayor and City Council August 3, 2022

Page 218 of 359 ends

City of Menifee Staff Report
ROI for the Formation of CFD 2022-3 Legado
August 3, 2022

Page 2 of 4 ends

1 1
2 2
of Apportionment (the “Improvement Area No. 1 RMA”) as described in Attachment C to the Resolution of Intention and within the boundaries of Improvement Area No. 2 in accordance with the Rate and Method of Apportionment (the “Improvement Area No. 2 RMA”) as described in Attachment D to the Resolution of Intention.

This proposed CFD No. 2022-3 was previously presented to the Finance Committee and was recommended for submittal to the City Council for approval.

The Resolution of Intention is the first step in the process to form CFD No. 2022-3. The attached resolutions declare the City’s intention to establish CFD No. 2022-3 and Improvement Area No. 1 and Improvement Area No. 2. therein, and the intention to incur bonded indebtedness by CFD No. 2022-3 for each of Improvement Area No. 1 and Improvement Area No. 2, and call for a public hearing. A public hearing on the matter would take place on September 21, 2022, and at that time the Council would formally consider approval to form CFD No. 2022-3 and Improvement Area No. 1 and Improvement Area No. 2. therein, and hold an election on the approval of the special taxes and the incurring of bonded indebtedness within each of Improvement Area No. 1 and Improvement Area No. 2.

The Developer proposes to enter into a joint community facilities agreement (the “JCFA”) with the City and Eastern Municipal Water District (the “Water District”), relating to certain facilities proposed to be financed by CFD No. 2022-3 and owned and operated by the Water District, and the City expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act. JCFAs may also be entered into with Menifee Union School District and/or Perris Union High School District if the decision is made at a future time to finance facilities of such school districts with bonds of CFD No. 2022-3.

The Developer is proposing to build 491 residential units in Improvement Area No. 1 and 531 residential units in Improvement Area No. 2, for a total of 1,022 residential units in the District.

The home sizes in CFD No. 2022-3 are planned to range from approximately 1,300 to 3,500 square feet. The total tax effective tax rate is estimated to be at or below 2% of projected home prices, which is the allowable tax rate limit in the City’s Financing Goals and Policies.

The Improvement Area No. 1 RMA and the Improvement Area No. 2 each provide for three tax zones. With Tax Zone 1, the estimated assigned annual tax rates range from $2,588 for home sizes less than 1,400 square feet to $3,139 for home sizes greater than 2,400 square feet. With Tax Zone 2, the estimated assigned annual tax rates range from $2,731 for home sizes less than 1,900 square feet to $3,195 for home sizes greater than 2,700 square feet. With Tax Zone 3, the estimated assigned annual tax rates range from $2,847 for home sizes less than 2,100 square feet to $3,484 for home sizes greater than 3,300 square feet. Such rates would escalate at 2% per year.

With respect to Improvement Area No. 1, the anticipated bond issuance amount based on current rates would be approximately $26,645,000 which would cover a reserve fund, financing costs, and generate approximately $23,079,160 in net bond proceeds for facilities. The proposed facilities, which may be funded with proceeds of the bonds for Improvement Area No. 1 are currently estimated to be:

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 2
Menifee Mayor and City Council August 3, 2022

Page 219 of 359 ends

City of Menifee Staff Report
ROI for the Formation of CFD 2022-3 Legado
August 3, 2022

Page 3 of 4 ends

1 1
2 2
Table 1 - Improvement Area no. 1
$219,477 City Priority Facilities
(20% premium to Project Specific Priorities, per City’s CFD Goals & Policies) $1,097,385 City Development Impact Fees & Quimby Fees
$2,212,039 Traffic Impact Fees
$26,403,774 City Facilities (park, roadway and storm drainage facilities) $8,463,545 Eastern Municipal Water District Facilities
$38,396,220 TOTAL FEES & FACILITIES
$(15,317,059) Amount Funded by Developer
$23,079,161 TOTAL Funded by Bond Proceeds (Rounded)
With respect to Improvement Area No. 2, the anticipated bond issuance amount based on current rates would be approximately $30,180,000 which would cover a reserve fund, financing costs, and generate approximately $26,174,453 in net bond proceeds for facilities. The proposed facilities, which may be funded with proceeds of the bonds for Improvement Area No. 2 are currently estimated to be:

Table 2 - Improvement Area no. 2
$237,357 City Priority Facilities
(20% premium to Project Specific Priorities, per City’s CFD Goals & Policies) $1,186,785 City Development Impact Fees & Quimby Fees
$2,392,245 Traffic Impact Fees
$28,554,794 City Facilities (park, roadway and storm drainage facilities) $9,302,480 Eastern Municipal Water District Facilities
$41,673,661 TOTAL FEES & FACILITIES
$(15,499,208) Amount Funded by Developer
$26,174,453 TOTAL Funded by Bond Proceeds (Rounded)
For each of Improvement Area No. 1 and Improvement Area No. 2, the amount of the foregoing facilities costs which exceed available bond proceeds would be funded by the Developer.

In addition to the costs of the forgoing facilities, proceeds of the special tax may be expended to pay administrative costs.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

FISCAL IMPACT
The Developer made a deposit to pay for the costs of the formation proceedings which may be reimbursed to the Developer in accordance with the attached reimbursement agreement. CFD No. 2022-3 would annually levy special taxes on all the taxable property within Improvement Area No. 1 and Improvement Area No. 2 in accordance with the applicable RMA in order to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2022-3. Any bonds issued by CFD No. 2022-3 for Improvement Area No. 1 and Improvement Area No. 2 would not be Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 3
Menifee Mayor and City Council August 3, 2022

Page 220 of 359 ends

City of Menifee Staff Report
ROI for the Formation of CFD 2022-3 Legado
August 3, 2022

Page 4 of 4 ends

1 1
2 2
obligations of the City and would be secured solely by the Special Taxes levied in the applicable improvement area.

ATTACHMENTS

1. Project Location Map

2. Resolution to Establish CFD

3. Resolution to Incur Debt

4. Reimbursement Agreement

5. Landowner Petition
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 4
Menifee Mayor and City Council August 3, 2022

Page 221 of 359 ends

ROUSE RD

MURRIETA
RD

MCCALL BLV D

MCLAUGHLIN RD

MENIFEE
RD

MATTHEWS
RD

ENCANTO
DR

PALOMAR
RD

ANTELOPE
RD
§¨¦215
^_CHAMBERS AVE

ROUSE RD

WATSON RD

MCCALL BLVD

SHERMAN RD

PALOMA WAY

PACKARD ST

MATTHEWS
RD

EVANS RD

RIDGEMOOR RD

BALDY PEAK DR BRADLEY

RDCONEJO
D R
·|}þ74
§¨¦215
CFD NO. 2022-3 (LEGADO)

PROJECT MAP
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 5
Menifee Mayor and City Council August 3, 2022

Page 222 of 359 ends

4867-4443-5231v4/200299-0011
RESOLUTION NO. 22-___

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2022-3 (LEGADO) OF THE CITY OF MENIFEE AND IMPROVEMENT AREAS

THEREIN, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO PAY THE

COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Menifee (the “City”) has received a petition from BLC Fleming, LLC, a Delaware limited liability company (the “Developer”), the owner of more than ten percent of the land within the boundaries of the territory which is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Mello-Roos Community Facilities Act of 1982 (the “Act”) to establish a community facilities district consisting of the territory described in Attachment “A” hereto and incorporated herein by this reference which the City Council hereby determines shall be known as “Community Facilities District No. 2022-3 (Legado) of the City of Menifee (“Community Facilities District No. 2022-3” or the “District”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Attachment “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and WHEREAS, in accordance with the request submitted by the Developer, the City Council has been asked to consider the formation of two improvement areas within proposed Community Facilities District No. 2022-3 with the boundaries described in Attachment “A” to be known as “Improvement Area No. 1 of Community Facilities District No. 2022-3 (Legado) of the City of Menifee” and “Improvement Area No. 2 of Community Facilities District No. 2022-3 (Legado) of the City of Menifee” (each individually an “Improvement Area” and together the “Improvement Areas”); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2022-3; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2022-3, the designation of the Improvement Areas and the issuance of bonded indebtedness in an amount not to exceed $40,000,000 within proposed Improvement Area No. 1 and $45,000,000 within proposed Improvement Area No. 2 and the levy of a special tax within each Improvement Area to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness to be incurred for such Improvement Area, provided that the bond sales and such Special Tax levies are approved at a separate election to be held within the boundaries of each proposed Improvement Area;
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 6
Menifee Mayor and City Council August 3, 2022

Page 223 of 359 ends

2 4867-4443-5231v4/200299-0011
4 5
2 7
4 WHEREAS, the City desires to enter into a reimbursement agreement with the Developer, the form of which is on file with the City Clerk and has been presented to the City Council concurrent with the City Council’s consideration of this Resolution (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District;
WHEREAS, the District and the Developer propose to enter into joint community facilities agreements (the “JCFAs”) with each of Eastern Municipal Water District (the “Water District”), Menifee Union School District and Perris Union High School District relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, Menifee Union School District and Perris Union High School District, as applicable, and the District expects to enter into the JCFAs prior to the approval of the issuance of bonds pursuant to the Act.

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

Section 1. The above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act with two separate improvement areas designated pursuant to Section 53350 of the Act.

It is further proposed that the boundaries of the District and of each Improvement Area shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2022-3 which is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside (the “County Recorder”) within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2022-3 (Legado) of the City of Menifee” and the two proposed Improvement Areas shall be designated as “Improvement Area No. 1 of Community Facilities District No. 2022-3 (Legado) of the City of Menifee” and “Improvement Area No. 2 of Community Facilities District No. 2022-3 (Legado) of the City of Menifee.” Section 4.The Facilities proposed to be provided within Community Facilities District No. 2022-3 and to be financed, in part, by each Improvement Area, are public facilities as defined in the Act, which the City, the Water District, Menifee Union School District and Perris Union High School District, with respect to certain water and sewer facilities and school facilities, as applicable, are authorized by law to construct, acquire, own, and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District and each proposed Improvement Area to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within each Improvement Area of the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 7
Menifee Mayor and City Council August 3, 2022

Page 224 of 359 ends

3 4867-4443-5231v4/200299-0011
4 5
2 7
4 All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.

Section 5.Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax within each Improvement Area, secured by recordation of a continuing lien against all nonexempt real property in such Improvement Area, sufficient to pay for: (i) the portion of the Facilities and Incidental Expenses to be financed by such Improvement Area; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash). The rate and method of apportionment and manner of collection of the Special Tax for Improvement Area No. 1 are described in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this reference. Attachment “C” allows each landowner within proposed Improvement Area No. 1 to estimate the maximum amount of the Special Tax that may be levied against each parcel. The rate and method of apportionment and manner of collection of the Special Tax for Improvement Area No. 2 are described in detail in Attachment “D” attached hereto, which Attachment “D” is incorporated herein by this reference. Attachment “D” allows each landowner within proposed Improvement Area No. 2 to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied in an Improvement Area, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

If the Special Taxes of an Improvement Area are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except to the extent permitted in the rate and method of apportionment of the Special Tax for such Improvement Area as set forth in Attachment “C” and Attachment “D” hereto, as applicable, (ii) such Special Tax shall not be levied after fiscal year 2064-65, as described in Attachment “C” and “Attachment “D” hereto, as applicable, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within such Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax within each proposed Improvement Area is based on the expected demand that each parcel of real property within such Improvement Area will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City because of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax applicable to each proposed Improvement Area with respect to the Special Tax set forth in Attachment “C” and “Attachment “D”, respectively, to be Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 8
Menifee Mayor and City Council August 3, 2022

Page 225 of 359 ends

4 4867-4443-5231v4/200299-0011
4 5
2 7
4 reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2022-3 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified on Attachment “C” or Attachment “D,” respectively, the City Council shall, on behalf of Community Facilities District No. 2022-3, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Attachment “C” or Attachment “D,” respectively, to the extent necessary upon the remaining property within the applicable Improvement Area which is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of Attachment “C” or Attachment “D,” as applicable.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2022-3 and each Improvement Area, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds for each Improvement Area to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on September 21, 2022, at the City Council Chambers, 29844 Haun Road, Menifee, California. Should the City Council determine to form the District and establish the Improvement Areas, a special election will be held within each Improvement Area to authorize the issuance of bonds of such Improvement Area and the levy of a special tax within such Improvement Area in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the elections will be a landowner vote with each landowner who is the owner of record of land within an Improvement Area at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within such proposed Improvement Area.

Ballots for the special elections may be distributed by mail or by personal service.

Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2022-3 and the proposed Improvement Areas shall be established and as to the method of apportionment of the special tax within each proposed Improvement Area and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2022-3 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2022-3 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2022-3, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2022-3 is established, or after a later date determined by the City Council with the concurrence of the legislative body which levied the property tax in question.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 9
Menifee Mayor and City Council August 3, 2022

Page 226 of 359 ends

5 4867-4443-5231v4/200299-0011
4 5
2 7
4 Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2022-3, may appear and be heard.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2022-3, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2022-3 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2022-3. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2022-3. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the elections required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by Improvement Area No. 1 for the Facilities and Incidental Expenses is Forty Million Dollars ($40,000,000) and by Improvement Area No. 2 is Forty-Five Million Dollars ($45,000,000).

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

Section 15. This Resolution shall be effective upon its adoption.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 10
Menifee Mayor and City Council August 3, 2022

Page 227 of 359 ends

6 4867-4443-5231v4/200299-0011
4 5
2 7
4 PASSED AND ADOPTED by the City Council of the City of Menifee at a regular meeting held on this 3rd day of August, 2022.

ATTEST: APPROVED:

Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 11
Menifee Mayor and City Council August 3, 2022

Page 228 of 359 ends

A-1
4867-4443-5231v4/200299-0011

ATTACHMENT A

BOUNDARY MAP
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 12
Menifee Mayor and City Council August 3, 2022

Page 229 of 359 ends

A-2
4867-4443-5231v4/200299-0011
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 13
Menifee Mayor and City Council August 3, 2022

Page 230 of 359 ends

A-3
4867-4443-5231v4/200299-0011
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 14
Menifee Mayor and City Council August 3, 2022

Page 231 of 359 ends

A-4
4867-4443-5231v4/200299-0011
Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 15
Menifee Mayor and City Council August 3, 2022

Page 232 of 359 ends

B-1
4867-4443-5231v4/200299-0011

ATTACHMENT B
Types of Facilities To Be
Financed By Community
Facilities District No. 2022-3
The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, rehabilitation, expansion and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general government facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”); and (iii) interim and permanent school facilities of Menifee Union School District and Perris Union High School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning, and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion, and inspection of the Facilities.

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

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 16
Menifee Mayor and City Council August 3, 2022

Page 233 of 359 ends

C-1
4867-4443-5231v4/200299-0011

ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-3 (LEGADO)

OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO. 1
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Improvement Area No. 1 of the City of Menifee Community Facilities District No. 2022-3 (Legado) ("CFD No. 2022-3 IA 1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2022-3 IA 1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single-Family Residential Property with a stand- alone Residential Unit.
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community 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. 2022-3 IA 1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-3 IA 1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-3 IA 1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2022-3 IA 1 and any major property owner 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. 2022-3 IA 1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022- Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 17
Menifee Mayor and City Council August 3, 2022

Page 234 of 359 ends

C-2
4867-4443-5231v4/200299-0011
3 IA 1 for any other administrative purposes of CFD No. 2022-3 IA 1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least

1.1 times annual debt service on all outstanding CFD No. 2022-3 IA 1 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
“CFD” or "CFD No. 2022-3" means Community Facilities District No. 2022-3 (Legado) established by the City under the Act.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 18
Menifee Mayor and City Council August 3, 2022

Page 235 of 359 ends

C-3
4867-4443-5231v4/200299-0011
“CFD No. 2022-3 IA 1" means Improvement Area No. 1 of CFD No. 2022-3 as identified on the boundary map for CFD No. 2022-3.
"CFD No. 2022-3 IA 1 Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2022-3 IA 1 have been pledged.
“City” means the City of Menifee.
"City Council" means the City Council of the City of Menifee, acting as the Legislative Body of CFD No. 2022-3 IA 1.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 4285.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2022-3 IA 1 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022-3 IA 1 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 19
Menifee Mayor and City Council August 3, 2022

Page 236 of 359 ends

C-4
4867-4443-5231v4/200299-0011
"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single-Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022-3 IA 1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding CFD No. 2022-3 IA 1 Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the CFD No. 2022-3 IA 1 Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD No. 2022-3 IA 1 Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022-3 IA 1, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2022-3 IA 1 Bonds pursuant to the Indenture. “Tax Zone(s)” means the geographical area(s) within CFD No. 2022-3 IA 1 identified as Tax Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Boundary Map.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 20
Menifee Mayor and City Council August 3, 2022

Page 237 of 359 ends

C-5
4867-4443-5231v4/200299-0011
“Tax Zone 1” means all property located within CFD No. 2022-3 IA 1 and on the Boundary Map as Tax Zone 1.
“Tax Zone 2” means all property located within CFD No. 2022-3 IA 1 and on the Boundary Map as Tax Zone 2.
“Tax Zone 3” means all property located within CFD No. 2022-3 IA 1 and on the Boundary Map as Tax Zone 3.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-3 IA 1, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022/23, each Assessor’s Parcel within CFD No. 2022-3 IA 1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone 2, or Tax Zone 3.

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

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Special Tax rates for Developed Property and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 21
Menifee Mayor and City Council August 3, 2022

Page 238 of 359 ends

C-6
4867-4443-5231v4/200299-0011
of the Special Tax levy on the Acreage of Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

The Maximum Special Tax for each Assessor’s Parcel of Non-Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1, Table 2, and Table 3 of Section D.
a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single-Family Residential Property, Multifamily Property or Non-Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1, Table 2, and Table 3 below.

TABLE 1

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

1. Single Family Residential Property RU Less than 1,400 sq. ft $2,588.00

2. Single Family Residential Property RU 1,400 sq. ft to 1,600 sq. ft $2,812.00

3. Single Family Residential Property RU 1,601 sq. ft to 1,800 sq. ft $2,860.00

4. Single Family Residential Property RU 1,801 sq. ft to 2,000 sq. ft $2,876.00

5. Single Family Residential Property RU 2,001 sq. ft to 2,200 sq. ft $2,967.00

6. Single Family Residential Property RU 2,201 sq. ft to 2,400 sq. ft $3,090.00

7. Single Family Residential Property RU Greater than 2,400 sq. ft $3,139.00

8. Multifamily Property Acre N/A $24,742.00

9. Non-Residential Property Acre N/A $24,742.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 22
Menifee Mayor and City Council August 3, 2022

Page 239 of 359 ends

C-7
4867-4443-5231v4/200299-0011
TABLE 2

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

1. Single Family Residential Property RU Less than 1,900 sq. ft $2,731.00

2. Single Family Residential Property RU 1,900 sq. ft to 2,100 sq. ft $2,896.00

3. Single Family Residential Property RU 2,101 sq. ft to 2,300 sq. ft $2,954.00

4. Single Family Residential Property RU 2,301 sq. ft to 2,500 sq. ft $3,056.00

5. Single Family Residential Property RU 2,501 sq. ft to 2,700 sq. ft $3,109.00

6. Single Family Residential Property RU Greater than 2,700 sq. ft $3,195.00

7. Multifamily Property Acre N/A $22,586.00

8. Non-Residential Property Acre N/A $22,586.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

TABLE 3

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 3
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single Family Residential Property RU Less than 2,100 sq. ft $2,847.00

2. Single Family Residential Property RU 2,100 sq. ft to 2,400 sq. ft $2,991.00

3. Single Family Residential Property RU 2,401 sq. ft to 2,700 sq. ft $3,118.00

4. Single Family Residential Property RU 2,701 sq. ft to 3,000 sq. ft $3,146.00

5. Single Family Residential Property RU 3,001 sq. ft to 3,300 sq. ft $3,207.00

6. Single Family Residential Property RU Greater than 3,300 sq. ft $3,484.00

7. Multifamily Property Acre N/A $19,319.00

8. Non-Residential Property Acre N/A $19,319.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 23
Menifee Mayor and City Council August 3, 2022

Page 240 of 359 ends

C-8
4867-4443-5231v4/200299-0011
c. Backup Special Tax
When a Final Map is recorded, the Administrator shall determine which Tax Zone the Final Map area lies within and the Backup Special Tax for an Assessor’s Parcel within the Final Map classified or to be classified as Single-Family Property shall calculated according to the following formula.

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

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

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be determined by Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX PER ACRE
Tax Zone
Maximum Special
Tax per Acre
1 $24,742
2 $22,586
3 $19,319
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on the rate per Acre shown in the table above. The Backup Special Tax shall not apply to Multifamily Residential Property, or Non-Residential Property.

On each July 1, commencing July 1, 2023, the Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non-Residential Property shall be $24,742 Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 24
Menifee Mayor and City Council August 3, 2022

Page 241 of 359 ends

C-9
4867-4443-5231v4/200299-0011
per Acre for Tax Zone 1, $22,586 per Acre for Tax Zone 2, and $19,319 per Acre for Tax Zone 3.

On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of $24,742 per Acre for Tax Zone 1, $22,586 per Acre for Tax Zone 2, and $19,319 per Acre for Tax Zone 3 multiplied by the Acreage of such Assessor’s Parcel.

On each July 1, commencing July 1, 2023, the Maximum Special Tax rate for Undeveloped and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

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

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

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

Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the first four steps have been completed, the Special Tax shall be levied Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 25
Menifee Mayor and City Council August 3, 2022

Page 242 of 359 ends

C-10
4867-4443-5231v4/200299-0011
up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, or (vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the total Acreage of all Taxable Property to less than the amounts shown in Table 5 below.

TABLE 5

MINIMUM TAXABLE ACRES
Tax Zone Acres
1 20.86
2 25.60
3 28.89
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the total Acreage of all Taxable Property to less than the Acres shown in Table 5 per Tax Zone. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than the Acres shown in Table 5 per Tax Zone will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $26,000,000 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. 2022-3 IA 1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 26
Menifee Mayor and City Council August 3, 2022

Page 243 of 359 ends

C-11
4867-4443-5231v4/200299-0011
“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2022-3 IA 1. “Construction Inflation Index” means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. “Future Facilities Costs” means the CFD Public Facilities minus (i) public facility costs previously funded from the Construction Fund, (ii) public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus (iii) public facility costs funded by interest earnings on the Construction Fund earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding CFD No. 2022-3 IA 1 Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Public Property or Property Owner’s Association Property, or Provisional Undeveloped Property that are not Exempt Property pursuant to Section F. The Maximum Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 27
Menifee Mayor and City Council August 3, 2022

Page 244 of 359 ends

C-12
4867-4443-5231v4/200299-0011
Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:

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

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

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

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

6. Determine the Future Facilities Costs.

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

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 28
Menifee Mayor and City Council August 3, 2022

Page 245 of 359 ends

C-13
4867-4443-5231v4/200299-0011

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

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

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

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.

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

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

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 29
Menifee Mayor and City Council August 3, 2022

Page 246 of 359 ends

C-14
4867-4443-5231v4/200299-0011
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon the terms and conditions established by the City Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the City Council.

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

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

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

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

H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than the 2064-2065 Fiscal Year, however, Special Tax will cease to be levied in an earlier Fiscal Year if the CFD Administrator has determined (i) that all the required interest and principal payments on the CFD No. 2022-3 IA 1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2022- 3 IA 1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other obligations of CFD No. 2022-3 IA 1 have been satisfied.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 30
Menifee Mayor and City Council August 3, 2022

Page 247 of 359 ends

C-15
4867-4443-5231v4/200299-0011
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022-3 IA 1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 31
Menifee Mayor and City Council August 3, 2022

Page 248 of 359 ends

D-1
4867-4443-5231v4/200299-0011

ATTACHMENT D

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022-3 (LEGADO)

OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO. 2
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of Improvement Area No. 2 of the City of Menifee Community Facilities District No. 2022-3 (Legado) ("CFD No. 2022-3 IA 2"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2022-3 IA 2, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

B. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel as a Single-Family Residential Property with a stand- alone Residential Unit.
"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community 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. 2022-3 IA 2: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022-3 IA 2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022-3 IA 2 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2022-3 IA 2 and any major property owner 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. 2022-3 IA 2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022- Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 32
Menifee Mayor and City Council August 3, 2022

Page 249 of 359 ends

D-2
4867-4443-5231v4/200299-0011
3 IA 2 for any other administrative purposes of CFD No. 2022-3 IA 2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least

1.1 times annual debt service on all outstanding CFD No. 2022-3 IA 2 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.
"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel. "Calendar Year" means the period commencing January 1 of any year and ending the following December 31.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.
"CFD” or “CFD No. 2022-3" means Community Facilities District No. 2022-3 (Legado) established by the City under the Act.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 33
Menifee Mayor and City Council August 3, 2022

Page 250 of 359 ends

D-3
4867-4443-5231v4/200299-0011
“CFD No. 2022-3 IA 2" means Improvement Area No. 2 of CFD No. 2022-3 as identified on the boundary map for CFD No. 2022-3.
"CFD No. 2022-3 IA 2 Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which Special Tax of CFD No. 2022-3 IA 2 have been pledged.
“City” means the City of Menifee.
"City Council" means the City Council of the City of Menifee, acting as the Legislative Body of CFD No. 2022-3 IA 2.
“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 4285.
"County" means the County of Riverside.
"Developed Property" means all Assessor’s Parcels: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which CFD No. 2022-3 IA 2 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022-3 IA 2 in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 34
Menifee Mayor and City Council August 3, 2022

Page 251 of 359 ends

D-4
4867-4443-5231v4/200299-0011
"Non-Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. "Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Sections F. "Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single-Family Residential Property shall not be considered a Residential Unit for purposes of this RMA. “Single Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022-3 IA 2 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding CFD No. 2022-3 IA 2 Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the CFD No. 2022-3 IA 2 Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD No. 2022-3 IA 1 Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022-3 IA 2, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2022-3 IA 2 Bonds pursuant to the Indenture. “Tax Zone(s)” means the geographical area(s) within CFD No. 2022-3 IA 2 identified as Tax Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Boundary Map.

Item Title: 10.9
Resolution of Intention to Form Community Facilities District No. 2022-3, Legado Item Page Number: 35
Menifee Mayor and City Council August 3, 2022

Page 252 of 359 ends

D-5
4867-4443-5231v4/200299-0011
“Tax Zone 1” means all property located within CFD No. 2022-3 IA 1 and identified on the Boundary Map as Tax Zone 1.
“Tax Zone 2” means all property located within CFD No. 2022-3 IA 1 and identified on the Boundary Map as Tax Zone 2.
“Tax Zone 3” means all property located within CFD No. 2022-3 IA 1 and identified on the Boundary Map as Tax Zone 3.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2022-3 IA 2, which are not Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre. “Trustee” means the trustee, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property, Provisional Undeveloped Property.

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022/23, each Assessor’s Parcel within CFD No. 2022-3 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone 2, or Tax Zone 3.

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

Page 253 of 359 ends

Menifee City CouncilAugust 3, 2022

Menifee City Council
August 3, 2022