Agenda packet — Menifee City Council, September 21, 2022 (part 8 of 18)

6 REVISED EXHIBIT B (cont.)
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

ORIGINAL FORMATION

ASSESSOR'S PARCEL NUMBERS

APN APN APN APN APN
360850024 360861031 360862008 360862050 360870030
360850029 360861032 360862009 360862051 360870031
360850030 360861033 360862010 360862052 360870032
360850031 360861034 360862011 360862053 360870033
360850032 360861035 360862012 360862054 360870034
360860001 360861036 360862013 360862055 360870035
360860017 360861038 360862014 360862056 360870036
360860026 360861039 360862016 360862057 360870037
360860027 360861040 360862017 360862058 360870038
360860028 360861041 360862018 360862059 360870039
360860041 360861042 360862019 360870001 360870040
360861001 360861043 360862020 360870002 360870041
360861002 360861044 360862021 360870003 360870042
360861003 360861045 360862022 360870004 360870043
360861004 360861046 360862023 360870005 360870044
360861005 360861047 360862024 360870006 360870045
360861006 360861048 360862025 360870007 360870046
360861007 360861049 360862026 360870008 360870047
360861008 360861050 360862027 360870009 360870048
360861009 360861051 360862028 360870010 360870049
360861010 360861053 360862029 360870011 360870050
360861012 360861054 360862031 360870012 360870051
360861013 360861055 360862032 360870013 360870052
360861014 360861056 360862033 360870014 360870053
360861015 360861057 360862034 360870015 360870054
Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1046 of 2787

Ordinance Annex 14

Page 7 of 10 ends

7 APN APN APN APN APN
360861016 360861058 360862035 360870016 360870055
360861017 360861059 360862036 360870017 360870056
360861018 360861060 360862037 360870018 360870057
360861019 360861061 360862038 360870019 360870058
360861020 360861062 360862039 360870020 360870059
360861021 360861063 360862040 360870021 360870060
360861022 360861064 360862041 360870022 360870061
360861023 360862001 360862042 360870023 360870062
360861025 360862002 360862043 360870024 360870063
360861026 360862003 360862044 360870025 360870064
360861027 360862004 360862046 360870026 360870065
360861028 360862005 360862047 360870027 360870066
360861029 360862006 360862048 360870028 360880001
360861030 360862007 360862049 360870029 360880002
360880003 360880042 360971003 360972002 360980014
360880004 360880043 360971004 360972003 360980015
360880005 360880044 360971005 360972004 360980016
360880006 360880045 360971006 360972005 360980017
360880007 360880046 360971007 360972006 360980018
360880008 360880047 360971008 360973001 360980019
360880009 360880048 360971009 360973002 360980020
360880010 360880049 360971010 360973003 360980021
360880011 360880050 360971011 360973004 360980022
360880012 360880051 360971012 360973005 360980023
360880013 360880052 360971013 360973006 360980024
360880014 360880053 360971014 360973007 360980025
360880015 360880054 360971015 360973008 360980026
360880016 360880055 360971016 360973009 360980027
360880017 360880056 360971017 360973010 360980028
360880018 360880057 360971018 360973011 360980029
360880019 360880058 360971019 360973012 360980030
Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1047 of 2787

Ordinance Annex 14

Page 8 of 10 ends

8 APN APN APN APN APN
360880020 360880059 360971020 360974001 360980031
360880021 360970001 360971021 360974002 360980032
360880022 360970002 360971022 360974003 360980033
360880023 360970003 360971023 360974004 360980034
360880024 360970004 360971024 360974005 360980035
360880025 360970005 360971025 360974006 360980036
360880026 360970006 360971026 360974007 360980037
360880027 360970007 360971027 360974008 360980038
360880028 360970008 360971028 360974009 360981001
360880029 360970009 360971029 360980001 360981002
360880030 360970010 360971030 360980002 360981003
360880031 360970011 360971031 360980003 360981004
360880032 360970012 360971032 360980004 360982001
360880033 360970013 360971033 360980005 360982002
360880034 360970014 360971034 360980006 360982003
360880035 360970015 360971035 360980007 360982004
360880036 360970016 360971036 360980008 360982005
360880037 360970017 360971037 360980009 360982006
360880038 360970018 360971038 360980010 360982007
360880039 360970019 360971039 360980011 360982008
360880040 360971001 360971040 360980012 360982009
360880041 360971002 360972001 360980013 360982010
360982011 364411001 364420019 364422018 364430013
360982012 364411002 364420020 364422019 364430014
360983001 364411003 364420021 364422020 364430015
360983002 364411004 364420022 364422021 364430016
360983003 364411005 364420023 364422022 364431001
360983004 364411006 364420024 364423001 364431002
360983005 364411007 364421001 364423002 364431003
360983006 364411008 364421002 364423003 364431004
360983007 364411009 364421003 364423004 364431005
Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1048 of 2787

Ordinance Annex 14

Page 9 of 10 ends

9 APN APN APN APN APN
360983008 364411010 364421004 364423005 364431006
360983009 364411011 364421005 364423006 364431007
360983010 364411012 364421006 364423007 364431008
360983011 364411013 364421007 364423008 364431009
360983012 364411014 364421008 364423009 364431010
364410001 364411015 364421009 364423010 364431011
364410002 364411016 364421010 364423011 364431012
364410003 364411017 364421011 364424001 364431013
364410004 364411018 364422001 364424002 364431014
364410005 364420003 364422002 364424003 364431015
364410006 364420004 364422003 364424004 364431016
364410007 364420005 364422004 364424005 364431017
364410008 364420006 364422005 364424006 364432001
364410009 364420007 364422006 364430001 364432002
364410010 364420008 364422007 364430002 364432003
364410011 364420009 364422008 364430003 364432004
364410012 364420010 364422009 364430004 364432005
364410013 364420011 364422010 364430005 364432006
364410014 364420012 364422011 364430006 364432007
364410015 364420013 364422012 364430007 364432008
364410016 364420014 364422013 364430008 364433001
364410017 364420015 364422014 364430009 364433002
364410018 364420016 364422015 364430010 364433003
364410019 364420017 364422016 364430011 364433004
364410020 364420018 364422017 364430012
ANNEXATION NO. 2

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
339020039 339362020 339362021 339362022 339362023 339362024 339362025 339362026 339362027 Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1049 of 2787

Ordinance Annex 14

Page 10 of 10 ends

10 339500001 339500002 339500003 339500004 339500005 339500006 339500007 339500008 339500009 339500010 339500011 339500012 339500013 339500014 339500015 339500016 339500017 339500018 339500019 339500020 339500021 339500022 339500023 339500024 339500025 339500026 339500027 339500028 339501001 339501002 339501003 339501004 339501005 339502001 339502002 339502003 339502004 339502005 339502006 339510001 339510002 339510003 339510004 339510005 339510006 339510007 339510008 339510009 339510010 339510011 339510012 339511001 339511002 339511003 339511004 339511005 339511006 339511007 339511008 339511009 339511010 339511011 339511012 339511013 339511014 339511015 339511016 339511017 339511018 339511019 339511020 339511021 339511022 339511023 339511024 339511025 339511026 339511027 339511028 339511029 339511030 339511031 339512001 339512002 339512003 339512004 339512005 339512006 339512007 339512008 339512009 339512010 339512011 339512012 339512013 339512014 339520001 339520002 339520003 339520004 339520005 339520006 339520007 339520008 339520009 339520010 339520011 339520012 339520013 339520014 339520015 339520016 339520017 339520018 339520019 339521001 339521002 339521003 339521004 339521005 339521006 339521007 339521008 339521009 339521010 339521011 339521012 339522001 339522002 339522003 339522004 339522005 339522006 339522007 339522008 339522009 339522010 339522011 339522012 339522013 339522014 339522015 339522016 339522017 339522018 339522019 339522020 339522021 339522022 339522023 339522024 339522025 339522026 339522027 339522028 339522029
ANNEXATION NO. 4

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
333070069 333070070 333070071 333070075 333070080 333070081 333070082 ANNEXATION NO. 9

ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
331080005 331080006 331080007 331080008 331080009 331080010 331080011 331080012 331080018 331080019 331080020 331080021 331080024 331080025 331080027 331080028 Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1050 of 2787

Item Title: 11.5 Ordinance Introduction and Annexation No. 14 to Community Facilities District 2017-1 (Maintenance Services), Adler Ranch, by FPG Tricon Menifee Property, LLC  
Item Page Number: 42
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1051 of 2787

Item Title: 11.5 Ordinance Introduction and Annexation No. 14 to Community Facilities District 2017-1 (Maintenance Services), Adler Ranch, by FPG Tricon Menifee Property, LLC  
Item Page Number: 43
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1052 of 2787

INSERT EXHIBIT A: LEGAL DESCRIPTION

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

LOTS 1 THROUGH 5, INCLUSIVE, OF TRACT NO. 32628, IN THE CITY OF MENIFEE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 427, PAGES 18 THROUGH 24, INCLUSIVE, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AS AMENDED BY CERTIFICATE OF CORRECTION RECORDED MARCH 11, 2013 AS INSTRUMENT NO. 13-116683 OF OFFICIAL RECORDS.

Item Title: 11.5
Ordinance

Introduction

and

Annexation

No.

14 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Adler
Ranch, by FPG Tricon Menifee Property, LLC
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1053 of 2787

Item Title: 11.5 Ordinance Introduction and Annexation No. 14 to Community Facilities District 2017-1 (Maintenance Services), Adler Ranch, by FPG Tricon Menifee Property, LLC  
Item Page Number: 52
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1061 of 2787

CITY OF MENIFEE
SUBJECT: Ordinance Introduction and Annexation No. 15 to Community Facilities District 2017-1 (Maintenance Services), The
Boulders, by Boulders Menifee, LLC
MEETING DATE: September 21, 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. Adopt a resolution calling an election to annex territory included in PLN 20-0167, located at the northeast intersection of Normandy Road and Berea Road, into City of Menifee Community Facilities District No. 2017-1 (Maintenance Services) ("CFD No. 2017-1" or "CFD"); and

2. Hold a special landowner election and canvass the election; and

3. Adopt the resolution declaring results of special landowner election; and

4. Introduce an ordinance, amending the Ordinance No. 2017-231 and levying and apportioning the special tax in CFD 2017-1.

DISCUSSION
On August 3, 2022, the City Council adopted Resolution No. 22-1184, declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 15. The next step in the annexation proceedings is to hold a public hearing on September 21, 2022, to conduct an election for the landowners and to declare the results of that election.

The area within Annexation No. 15 is included in PLN 20-0167 and is approximately 9.92 gross acres of a mixed-use commercial and multi-family residential property within the City. The property is located at the northeast corner of Normandy Road and Berea Road, as shown in the attached Project Map. The proposed maintenance services will include items such as landscaping, lighting, street maintenance, drainage, parks, and graffiti abatement. Per the request Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 1
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1062 of 2787

City of Menifee Staff Report
CFD 2017-1 Annex No. 15 – The Boulders
September 21, 2022

Page 2 of 3 ends

1 1
0 6
of Boulders Menifee, LLC (“Owner”), the City will 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 will 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 will 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 Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello- Roos Act of 1982.

The Owner submitted a "Consent and Waiver" form on file in the City Clerk's Office to:
•to hold the election and declare election results; and •consent to the shortening of election time requirements; and •waive analysis and arguments; and
•waive all notice requirements relating to the conduct of the election immediately following the public hearing.

A boundary map entitled "Annexation Map No. 15, Community Facilities District No. 2017-1 (Maintenance Services) a copy of which was previously recorded, on August 9, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 42, in the office of the Riverside County Recorder. Annexing the parcel into CFD No. 2017-1 will cover the costs of maintenance of certain public improvements associated with the development.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

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 A revenues of approximately $32,590, not including Contingent Tax B, to be used to pay for maintenance costs. In the event that the City must take over the privately maintained drainage facilities, Contingent Tax B could be levied for a total of approximately $20,029 to cover the additional maintenance costs. The special tax rates are calculated on 8.43 taxable acres.

On June 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will 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, then 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.

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 2
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1063 of 2787

City of Menifee Staff Report
CFD 2017-1 Annex No. 15 – The Boulders
September 21, 2022

Page 3 of 3 ends

1 1
0 6
would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.

ATTACHMENTS

1. Project Map

2. Resolution Calling the Election

3. Resolution Declaring Election Results

4. Certificate of Registered Voters

5. Ordinance

6. Signed Petition, Waiver and Consent for Annexation
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 3
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1064 of 2787

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: 11.6
Ordinance Introduction and Annexation No. 15 to Community Facilities District 2017-1 (Maintenance Services), The Boulders, by Boulders Menifee, LLC Item Page Number: 4
Menifee Mayor and City Council
September 21, 2022
Page
1065 of 2787

1 RESOLUTION NO. 22-____

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

CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE

QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 15), PLN 20-0167
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 ( “Act”), on December 6, 2017, the City Council ( “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17- 658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California ( “CFD No. 2017-1”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services ( “Services”) which are necessary to meet increas ed demands placed upon the City as a result of the development of said parcels; and
WHEREAS, the City Cou ncil called a special election for December 6, 2017, at which the questions of levying a special tax and establishing an appropriations limit with respect to CFD No. 2017- 1 were submitted to the qualified electors within CFD No. 2017-1; and WHEREAS, at a special election held on December 6, 2017, more than two-thirds (⅔) of all votes cast were cast in favor of the levy of a special tax and the establishment of an appropriations limit, as determined by the City Council in Resolution No. 17-658, which was duly adopted on December 6, 2017; and
. WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on August 3, 2022 duly adopted Resolut ion No. 22- 1184 (“Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017 -1 and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for September 21, 2022; and WHEREAS, the territory proposed to be annexed is identified in a map entitled “Annexation Map No. 15, Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on August 9, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 42, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on September 21, 2022, not earlier than the hour of 6:00 p.m. at the City Hall located at 29844 Haun Road, Menifee, California 92586, at which hearing all interested persons were given the opportunity to appear and be heard on the proposed annexation of said territory to the CFD No. 2017-1 and the levy of special taxes within said territory proposed to be annexed. 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; and
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 5
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1066 of 2787

Resolution Calling an Election Annex 15
2 WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No. 2017-1, or by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed, or by the owners of one-half (½) or more of the area within the CFD No. 2017- 1, or by the owners of one -half (½) or more of the territory proposed to be annexed; and
WHEREAS, the City Council has determined that there are fewer than twelve (12) registered voters residing in the territory proposed to be annexed to the CFD No. 2017- 1 and that the qualified electors in such territory are the landowners; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2017-1 and the levying of a special tax as described in Exhibit A attached hereto; and
WHEREAS, the Cit y Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2017- 1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred with the election date set forth herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California 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. Recitals. The foregoing recitals are true and correct.

Section 2. Confirmation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

Section 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2017-1 and the levy of the special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.

Section 4. Findings Regarding Prior Proceedings . The City Council finds and determines that all prior proceedings had and taken by the City Council with respect to the annexation of territory to the CFD No. 2017-1 are valid and in conformity with the requirements of the Act.

Section 5. Levy of Special Tax . As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to the CFD No. 2017- 1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2017-1, will be levied annually in CFD No. 2017-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit A hereto.

Section 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 6
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1067 of 2787

Resolution Calling an Election Annex 15
3 Section 7. Tax Roll Preparation. The office of the Public Works Director, 29844 Haun Road, Menifee, California 92586, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax lev ies pursuant to Government Code section 53340.2. The Public Works Director may c ause these functions to be performed by his or her deputies, assistants, or other designated agents.

Section 8. Accountability Measures. Pursuant to Government Code section 50075.1, the City shall create a separate account into which special tax proceeds will be deposited; and the Public Works Director annually shall prepare and file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in the CFD No. 2017-1.

Section 9. Special Election; Voting Procedures . The City Council hereby submits the question of levying the special tax within the territory proposed to be annexed to the qualified electors of the territory proposed to be annexed, in accordance with and pursuant to the Act. The special election shall be held on September 21, 2022, and shall be conducted as follows:
(A). Qualified Electors . The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of the territory proposed to be annexed into CFD No. 2017-

1. Because fewer than twelve registered voters reside within the territory proposed to be annexed to the CFD No. 2017-1 on September 21, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to the CFD No. 2017- 1), the qualified electors shall be the landowners within the territory proposed to be annexed to the CFD No. 2017-1, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to the CFD No. 2017-1.
(B). Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for the CFD No. 2017-1 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5.
(C). Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to the CFD No. 2017-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B.
(D). Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on September 21, 2022. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(E). Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on September 21, 2022, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 7
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1068 of 2787

Resolution Calling an Election Annex 15
4 (F). Declaration of Results . The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statem ent of the results of the special election as ascertained by the canvass of the returns.

Section 10. General Authorization with Respect to the Election. 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. All actions heretofore taken by the officers, employees, and agents of the City that are in conformity with the purposes and intent of this Resolution are hereby ratified, confirmed, and approved in all respects.

Section 11. Filing of Resolution and Map with City Clerk . The City Council hereby directs the Cit y Clerk to file a copy of this R esolution and the annexation map of the boundaries of CFD No. 2017-1 in his/her office.

Section 12. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 21st day of September, 2022

___________________________
Bill Zimmerman, Mayor

Attest:

___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 8
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1069 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 9
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1070 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 2 construction building permit issued for construction of a building of Non‐Residential Property and any Building Square Footage subsequently added to a building of such 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 ending 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 documents 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 adequately 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
levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.

“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or
recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision.

“Fiscal Year” means the period from and including July 1 st of any year to and including the following June
30th.

“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.

“Maximum Special Tax A” means 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 levied 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 10
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1071 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 3 “Multi‐Family 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 building
permit(s) was issued for a non‐residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.

“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone.

“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (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) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by
one or more persons, as determined by the Administrator.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.

“Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017‐1 as set forth in the documents adopted by the City Council at the time 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 levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay
for certain costs as required to meet the needs 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) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
“Special Tax B (Contingent)” means the 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 11
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1072 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 12
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1073 of 2787

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

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

TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 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 the Maximum Special Tax A
On each 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 percent (2.0%), whichever is greater.

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

b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2018‐19 within Tax Zone 1 is identified in Table 2 below:

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 13
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1074 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 6 TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY

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 percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017‐1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 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, commencing 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 percent (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 circumstances:
(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 similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.

a. Developed Property
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 14
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1075 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 15
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1076 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 8 TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY

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 percent (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 included 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 (Contingent)
1 TR 36299‐1
& PM 9504 Acre $0

On each July 1, commencing 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 percent (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 Tax 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 Proportionately 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 16
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1077 of 2787

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 Special 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 Fiscal 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 the 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 time. 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 included 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 Contingent 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 making 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 17
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1078 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 18
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1079 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 11 APPENDIX A
CITY OF M
ENIFEE
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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 19
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1080 of 2787

CityofMenifee
CommunityFacilitiesDistrictNo.2017Ͳ1(MaintenanceServices) 12
MAXIMUMSPECIALTAXESASSIGNEDTOEACHTAXZONE
Tax
Zone
Fiscal
Year
Included Tract
No.of
Taxable
Units
LandUse
Category
Taxable
Unit
Maximum
SpecialTax
A
Maximum
SpecialTaxB
(Contingent) Subdivider
1 2018Ͳ19 36299Ͳ1&
PM9504
426 SFR RU $158 $0 StarkMenifeeLand,LLC
548 MFR RU $158 $0 StarkMenifeeLand,LLC&
MenifeeMultifamily,LLC

27.68 NR Acre $1,714 $0 Several
2 2020Ͳ21 TR37576 65 SFR RU $539 $43 MeritageHomes 3 2020Ͳ21 TR28859 161 SFR RU $727 $0 WoodsideO5S 4 2020Ͳ21 TTM31098 258 SFR RU $878 $0 LennarHomesof California,Inc.
5 2020Ͳ21 TTM36852 68 SFR RU $755 $151 StrataHolland,LLC 6 2021Ͳ22 TTM37668 175 SFR RU $765 $295 MeritageHomesof California,Inc.
7 2022Ͳ23 TTM31456 176 SFR RU $996 $0 RCFCInvestments,LLC 8 2021Ͳ22 TR32102&
TR32102Ͳ1 256 SFR RU $674 $0
DiamondBrotherFive
Partnership,LPandPulte
HomeCompany,LLC
9 2021Ͳ22 TTM37400 174 SFR RU $703 $0 D.R.HortonLosAngeles HoldingCompany,Inc.
10 2022Ͳ23 TPM37380 3.62 NR Acre $3,588 $1,646 Briggs&74,LLC 11 ToBeDetermined
12 2022Ͳ23 TR37408&
TR37409 1,022 SFR RU $963 $5 BLCFlemingLLC
13 2022Ͳ23 TR36803 80 SFR RU $556 $171 FPGSunMenifee80LLC 14 2022Ͳ23 TR32628 303 SFR RU $281 $45 FPGTriconMenifee PropertyLLC
15 2022Ͳ23 PLN20Ͳ01678.43 MFR/NR Acre $3,865 $2,375 BouldersMenifeeLLC 16 2022Ͳ23 LLA17Ͳ007 12.48 MFR Acre $3,273 $2,119 JeffersonMenifee,LLC

ESCALATIONOFMAXIMUMSPECIALTAXES
On each July 1, commencing on July 1, 2019 the Maximum Special Tax shall increase by i) the percentageincreaseintheConsumerPriceIndex(AllItems)forLosAngelesͲRiversideͲOrangeCounty (1982Ͳ84=100)sincethebeginningoftheprecedingFiscalYear,orii)bytwopercent(2.0%),whichever isgreater.

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 20
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1081 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 21
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1082 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 14 APPENDIX C

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES) PROPOSED BOUNDARIES
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 22
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1083 of 2787

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 23
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1084 of 2787

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 24
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1085 of 2787

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.

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 delivered, this ballot must be received 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 25
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1086 of 2787

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

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 “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 correct, and that this declaration is executed on ____________, 20__.

Richard D. Wilson
Managing Partner

Signature

Print Name

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 26
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1087 of 2787

1 RESOLUTION NO. 22-____

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

DECLARING ELECTION RESULTS OF THE SPECIAL ELECTION HELD ON SEPTEMBER 21 , 2022 AND ORDERING THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 15), PLN 20-0167
WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore conducted proceedings, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), for the area proposed to be annexed to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2017-1”), including conducting a public hearing pursuant to the Act; and
WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for September 21 , 2022 , and submitting to th e qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property, as provided in the form of the special election ballot attached thereto as Exhibit B; and WHEREAS, the special election was held on September 21, 2022, and the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”) has duly canvassed the returns of the special election and has filed with the City Council a Certificate of Election Results, dated September 21, 2022, executed by the Clerk, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed - ballot election was closed.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

Section 1. Recitals. The City Council finds and determines that the foregoing recitals are true and correct.

Section 2. Approval of Canvass. The City Council has received, reviewed, and hereby accepts the Clerk’s Certificate of Election Results, a copy of which is attached hereto as Exhibit A, and hereby ratifies, confirms, and approves said Certificate of Election Results.

Section 3. Ballot Measure. The City Council hereby finds, determines, and declares that more than two-thirds (⅔) of all the votes cast at the special election on the ballot measure were in favor of the ballot measure, the ballot measure passed, and the ballot measure was approved by the qualified electors in accordance with the Act.

Section 4. Validity of Procedures . The City Council hereby finds and determines that all prior proceedings and actions taken by the City Council pursuant to the Act were and are valid and in conformity with the Act.

Section 5. Annexation. The City Council hereby finds, determines, and declares that pursuant to Government Code section 53339.8, the territory proposed to be annexed is added to and part of the CFD No. 2017- 1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the annexed territory to pay the costs of the services to be provided by the CFD No. 2017-1 as specified in Resolution No. 22-1184 adopted by the City Council on August 3, 2022. The boundaries Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 27
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1088 of 2787

Resolution Declaring Election Results Annex 15
2 of the annexed territory are shown on the map entitled, “Annexation Map No. 1 5 Community Facilities District No. 2017 -1 (Maintenance Services)” a copy of which was recorded, on August 9, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 42, in the office of the Riverside County Recorder.

Section 6. Notice of Special Tax Lien. Pursuant to Government Code section 53339.8 and Streets and Highways Code sections 3114.5 and 3117.5, within fifteen (15) days of the adoption of this Resolution, the City Clerk shall cause to be filed with the County Recorder of the County of Riverside an amendment to the notice of special tax lien and a map of the amended boundaries of the CFD No. 2017-1 including the annexed territory.

Section 7. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 21st day of September, 2022

___________________________
Bill Zimmerman, Mayor
Attest:

___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 28
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1089 of 2787

EXHIBIT A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 15

CERTIFICATE OF ELECTION RESULTS

I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Menifee (the “City”) on this same date in the proceedings of the City Council for the above -entitled community facilities district, I personally received (a) signed and dated waiver and consent form s and (b) signed, dated and marked election ballot s on behalf of the property owners, the entities named as the sole landowners of the lands within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated July 27, 202 2 and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Qualified
Landowner Votes Votes Cast YES NO
10 10

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on September 21, 2022.

Stephanie Roseen
Acting City Clerk
City of Menifee

By:

(Attach completed copies of Waiver/Consent and Ballot)
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 29
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1090 of 2787

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 15

Name of Landowne
r Number of Acres Owned Total Votes
Boulders Menifee LLC 9.92 10

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 delivered, this ballot must be received 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 30
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1091 of 2787

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

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”:

NO _________

Certification for Special Election Ballot

The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

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

Richard D. Wilson
Managing Partner

Signature

Print Name

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 31
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1092 of 2787

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 32
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1093 of 2787

1 ORDINANCE NO. 22-

AN ORDINANCE OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING ORDINANCE NO. 2017-231 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2022-23 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND

SERVICING OF STREET LIGHTS, PARKS, PARKWAYS, STREETS, ROADS, AND

OPEN SPACE, THE OPERATION AND MAINTENANCE OF STORM DRAINAGE

SYSTEMS, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND

ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)(ANNEXATION NO. 15)
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on December 6, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 17-658 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 levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and WHEREAS, on December 20, 2017, the City Council adopted Ordinance No. 2017-231 entitled, “An Ordinance Levying Special Taxes to be Collected During Fiscal Year 2018-19 to Pay the Annual Costs of the Maintenance and Servicing of Street Lights, Parks, Parkways, Streets, Roads, and Open Space, the Operation and Maintenance of Storm Drainage Systems, a Reserve Fund for Capital Replacement, and Administrative Expenses with Respect to City of Menifee Community Facilities District No. 2017-1 (Maintenance Services)” (“Ordinance No. 2017-231”), pursuant to which the City Council levied special taxes with the CFD No. 2017-1; and WHEREAS, on August 3, 2022, the City Council adopted Resolution No. 22-1184 entitled “A Resolution of the City Council of the City of Menifee Declaring Its Intention to Annex Territory to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, Adopting a Map of the Area to be Proposed to be Annexed (Annexation No. 15) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017-1 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for September 21, 2022; and
WHEREAS, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2017-1, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and
WHEREAS, on September 21, 2022, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services by the CFD No. 2017-1; and WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said public hearing, the City Council adopted Resolution No. 22-___ entitled “A Resolution of the City Council of the City of Menifee Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 15)” (the “Resolution Calling the Election”) on September 21, 2022, wherein the City Council submitted the question of levying a special tax in territory proposed to be annexed to the CFD No. 2017-1 at the rate and according to the method of apportionment described therein; and Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 33
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1094 of 2787

Ordinance Annex 15

Page 2 of 3 ends

2 4
5 4
6 9
WHEREAS, at said special election on September 21, 2022, the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and WHEREAS, subsequent to said special election, the City Council adopted Resolution No. 22-___ entitled “A Resolution of the City Council of the City of Menifee Declaring the Results of the Special Election Held on September 21, 2022, and Ordering the Annexation of Territory to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 15)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2017-1 (such territory being referred to herein as “Annexation No. 15”).

NOW, THEREFORE, the City Council of the City of Menifee, California does ordain as follows:

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

Section 2.Amendment to Exhibit B of Ordinance No. 2017-231. Exhibit B of Ordinance No. 2017- 231 is hereby amended by deleting it in its entirety and replacing it with Revised Exhibit B attached hereto.

Section 3.Amendment to Section 2 of Ordinance No. 2017-231. Section 2 of Ordinance No. 2017- 231 is hereby amended by deleting it in its entirety and replacing it with the following:

Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Section 4.Amendment to Section 2 of Ordinance No. 2017-231. Section 2 of Ordinance No. 2017- 231 is hereby
Section 5. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 6.Effective Date. This ordinance shall take effect thirty (30) days from the date of its adoption.

Section 7.Notice of Adoption. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, cause this Ordinance to be published in a manner required by law using the alternative summary and posting procedure authorized under Government Code Section 36933 (c).

Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 34
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1095 of 2787

Ordinance Annex 15

Page 3 of 3 ends

3 4
5 4
6 9
This Ordinance was introduced and read on the 21st day of September, 2022 and APPROVED AND ADOPTED this 5th day of October, 2022.
___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 35
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1096 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 36
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1097 of 2787

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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 37
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1098 of 2787

INSERT EXHIBIT A: LEGAL DESCRIPTION
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 38
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1099 of 2787

INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP
Item Title: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 39
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1100 of 2787

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 th e 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: 11.6
Ordinance

Introduction

and

Annexation

No.

15 to

Community

Facilities

District

2017-1

(Maintenance

Services),

The
Boulders, by Boulders Menifee, LLC
Item Page Number: 40
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1101 of 2787

CITY OF MENIFEE
SUBJECT: Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC
MEETING DATE: September 21, 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. Adopt a resolution calling an election to annex territory included in Lot Line Adjustment (LLA) 17-007, on the northeast corner of Holland Road and Hanover Lane, into City of Menifee Community Facilities District No. 2017-1 (Maintenance Services) ("CFD No. 2017-1" or "CFD"); and

2. Hold a special landowner election and canvass the election; and

3. Adopt the resolution declaring results of special landowner election; and

4. Introduce an ordinance, amending the Ordinance No. 2017-231 and levying and apportioning the special tax in CFD 2017-1.

DISCUSSION
On August 17, 2022, the City Council adopted Resolution No. 22-1193, declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 16. The next step in the annexation proceedings is to hold a public hearing on September 21, 2022, to conduct an election for the landowners and to declare the results of that election.

The area within Annexation No. 16 is included in LLA 17-007 and is approximately 12.48 gross acres of residential property within the City. The property is located east of I-215 on the northeast corner of Holland Road and Hanover Lane, as shown in the attached Project Map. The proposed maintenance services will include items such as landscaping, lighting, street maintenance, drainage, parks, and graffiti abatement. Per the request of Jefferson Menifee, LLC (“Owner”), the Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 1
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1102 of 2787

City of Menifee Staff Report
CFD 2017-1 Annex No. 16 - Del Oro North Apartments
September 21, 2022

Page 2 of 3 ends

1 1
6 0
City will establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation Area No. 16 to pay for those services. Annexation Area No. 16 will have a maximum annual tax of $5,392 per acre. This tax rate includes a Maximum Special Tax A of $3,273 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $2,119 per acre per year and will be included in CFD No. 2017-1 as “Tax Zone 16.” The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982.

A boundary map entitled "Annexation Map No. 16, Community Facilities District No. 2017-1 (Maintenance Services)" a copy of which was previously recorded, on August 23, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 51, in the office of the Riverside County Recorder. Annexing the parcel into CFD No. 2017-1 will cover the costs of maintenance of certain public improvements associated with the development

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

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 A revenues of approximately $40,853, not including Contingent Tax B, to be used to pay for maintenance costs. In the event that the City must take over the privately maintained drainage facilities, Contingent Tax B could be levied for a total of approximately $26,440 to cover the additional maintenance costs. The special tax rates are calculated on 12.48 taxable acres.

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, then 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: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 2
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1103 of 2787

City of Menifee Staff Report
CFD 2017-1 Annex No. 16 - Del Oro North Apartments
September 21, 2022

Page 3 of 3 ends

1 1
6 0

ATTACHMENTS

1. Project Map

2. Resolution Calling the Election

3. Resolution Declaring Election Results

4. Certificate of Registered Voters

5. Ordinance

6. Signed Petition, Waiver and Consent for Annexation
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 3
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1104 of 2787

MENIFEE RD

PALOMAR
RD

ANTELOPE
RD

HANOVER
LN

ALBION LN

HOLLAND RD
§¨¦
215
^_

EVANSRD

SCOTT RD

GARBANI RD

NEWPORT RD

MURRIETARD

MENIFEE
RD

BRADLEY RD

AUDIE MURPHY RD

RIDGEMOOR RD

BALDY PEAK DR BRADLEY

RDCONEJO
D R
§¨¦215
CFD NO. 2017-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 16

PROJECT MAP
Item Title: 11.7
Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 4
Menifee Mayor and City Council
September 21, 2022
Page
1105 of 2787

1 RESOLUTION NO. 22-____

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

CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE

QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 16), LLA 17-007
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 ( “Act”), on December 6, 2017, the City Council ( “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17- 658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California ( “CFD No. 2017-1”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services ( “Services”) which are necessary to meet increas ed demands placed upon the City as a result of the development of said parcels; and
WHEREAS, the City Cou ncil called a special election for December 6, 2017, at which the questions of levying a special tax and establishing an appropriations limit with respect to CFD No. 2017- 1 were submitted to the qualified electors within CFD No. 2017-1; and WHEREAS, at a special election held on December 6, 2017, more than two-thirds (⅔) of all votes cast were cast in favor of the levy of a special tax and the establishment of an appropriations limit, as determined by the City Council in Resolution No. 17-658, which was duly adopted on December 6, 2017; and
. WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on August 17, 2022 duly adopted Resolut ion No. 22 -1193 (“Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 201 7-1 and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for September 21, 2022; and WHEREAS, the territory proposed to be annexed is identified in a map entitled “Annexation Map No. 16, Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on August 23, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 51, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on September 21, 2022, not earlier than the hour of 6:00 p.m. at the City Hall located at 29844 Haun Road, Menifee, California 92586, at which hearing all interested persons were given the opportunity to appear and be heard on the proposed annexation of said territory to the CFD No. 2017-1 and the levy of special taxes within said territory proposed to be annexed. 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 fo r 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; and
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 5
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1106 of 2787

Resolution Calling an Election Annex 16
2 WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No. 2017-1, or by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed, or by the owners of one-half (½) or more of the area within the CFD No. 2017- 1, or by the owners of one -half (½) or more of the territory proposed to be annexed; and
WHEREAS, the City Council has determined that there are fewer than twelve (12) registered voters residing in the territory proposed to be annexed to the CFD No. 2017- 1 and that the qualified electors in such territory are the landowners; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2017-1 and the levying of a special tax as described in Exhibit A attached hereto; and
WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2017- 1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirem ents relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred with the election date set forth herein.

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

Section 2. Confirmation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.

Section 5. Levy of Special Tax . As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to the CFD No. 2017- 1, a special tax sufficient to pay the costs of the Services ( including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2017-1, will be levied annually in CFD No. 2017-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit A hereto.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 6
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1107 of 2787

Resolution Calling an Election Annex 16
3 Section 7. Tax Roll Preparation. The office of the Public Works Director, 29844 Haun Road, Menifee, California 92586, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax lev ies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

Section 8. Accountability Measures. Pursuant to Government Code section 50075.1, the City shall create a separate account into which special tax proceeds will be deposited; and the Public Works Director annually shall prepare and file a report with the City Council that will state (a) the amount of funds collected and expended and (b ) the status of the Services financed in the CFD No. 2017-1.

1. Because fewer than twelve registered voters reside within the territory propos ed to be annexed to the CFD No. 2017-1 on July 27, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to the CFD No. 2017- 1), the qualified electors shall be the landowners within the territory proposed to be annexed to the CFD No. 2017-1, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to the CFD No. 2017-1. (B). Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for the CFD No. 2017-1 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5.
(C). Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to the CFD No. 2017-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B.
(D). Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on September 21, 2022. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(E). Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on September 21, 2022, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 7
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1108 of 2787

Resolution Calling an Election Annex 16
4 (F). Declaration of Results . The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

Section 12. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 21st day of September, 2022

___________________________
Bill Zimmerman, Mayor

Attest:

___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 8
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1109 of 2787

A. DEFINITIONS

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

“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: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 9
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1110 of 2787

“Calendar Year” means the period commencing January 1 of any year and ending 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.

“County” means the County of Riverside.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.

“Fiscal Year” means the period from and including July 1 st of any year to and including the following June
30th.

“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 10
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1111 of 2787

“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.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by
one or more persons, as determined by the Administrator.

“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 levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 11
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1112 of 2787

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

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

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

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 12
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1113 of 2787

TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 13
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1114 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 6 TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY

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

a. Developed Property
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 14
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1115 of 2787

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

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 15
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1116 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 8 TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY

TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 36299‐1
& PM 9504 Acre $0

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

First: The Special Tax A
shall be levied Proportionately 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;

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 16
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1117 of 2787

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;

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 Contingent Services are being provided.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 17
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1118 of 2787

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 18
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1119 of 2787

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 16.

TAX ZONE 16 (SERVICES)
LLA 17‐007
Item Description Estimated Cost
1 Landscaping $4,263
2 Lighting $1,661
3 Streets $3,211
4 Drainage $3,984
5 Parks $23,815
6 Graffiti $779
7 Reserves $1,120
8 Administration $2,020
Total $40,853
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 16.

TAX ZONE 16 (CONTINGENT SERVICES)
LLA 17‐007
Item Description Estimated Cost
1 Drainage $22,874
2 Reserves $2,287
3 Administration $1,279
Total $26,440
TAX ZONE 16
FY 2022‐23 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed Acre $3,273 $2,119
Approved Acre $3,273 $2,119
Undeveloped Acre $3,273 $2,119

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 19
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1120 of 2787

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 20
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1121 of 2787

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

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 21
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1122 of 2787

City of Menifee
Community Facilities District No. 2017‐1 (Maintenance Services) 14 APPENDIX C

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017‐1 (MAINTENANCE SERVICES) PROPOSED BOUNDARIES
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 22
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1123 of 2787

Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 23
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1124 of 2787

Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 24
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1125 of 2787

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 16

Name of Landowne
r Number of Acres Owned Total Votes
Jefferson Menifee LLC 12.48 13

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 Acting 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 Acting 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 Acting 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 delivered, this ballot must be received 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: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 25
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1126 of 2787

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

Jefferson Menifee LLC
Attn: David Potter
12250 El Camino Real, Suite 380
San Diego, CA 92130
364‐070‐051

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 17, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 16 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 correct, and that this declaration is executed on ____________, 20__.

David Potter
Vice President

Signature

Print Name

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 26
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1127 of 2787

1 RESOLUTION NO. 22-____

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

DECLARING ELECTION RESULTS OF THE SPECIAL ELECTION HELD ON SEPTEMBER 21 , 2022 AND ORDERING THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 16), LLA 17-007
WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore conducted proceedings, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), for the area proposed to be annexed to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2017-1”), including conducting a public hearing pursuant to the Act; and
WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for September 21 , 2022 , and submitting to th e qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property, as provided in the form of the special election ballot attached thereto as Exhibit B; and WHEREAS, the special election was held on September 21, 2022, and the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”) has duly canvassed the returns of the special election and has filed with the City Council a Certificate of Election Results, dated September 21, 2022, executed by the Clerk, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed - ballot election was closed.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

Section 1. Recitals. The City Council finds and determines that the foregoing recitals are true and correct.

Section 5. Annexation. The City Council hereby finds, determines, and declares that pursuant to Government Code section 53339.8, the territory proposed to be annexed is added to and part of the CFD No. 2017- 1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the annexed territory to pay the costs of the services to be provided by the CFD No. 2017-1 as specified in Resolution No. 22-1193 adopted by the City Council on August 17, 2022 . The Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 27
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1128 of 2787

Resolution Declaring Election Results Annex 16
2 boundaries of the annexed territory are shown on the map entitled, “Annexation Map No. 16 Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on August 23, 2022, in Book 89 of Maps of Assessment and Community Facilities Districts at Page 51, in the office of the Riverside County Recorder.

Section 7. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 21st day of September, 2022

___________________________
Bill Zimmerman, Mayor
Attest:

___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 28
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1129 of 2787

EXHIBIT A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 16

CERTIFICATE OF ELECTION RESULTS

I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:

Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.

Qualified
Landowner Votes Votes Cast YES NO
13 13

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on September 21, 2022.

Stephanie Roseen
Acting City Clerk
City of Menifee

By:

(Attach completed copies of Waiver/Consent and Ballot)
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 29
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1130 of 2787

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 16

Name of Landowne
r Number of Acres Owned Total Votes
Jefferson Menifee LLC 12.48 13

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 Acting 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 delivered, this ballot must be received 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: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 30
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1131 of 2787

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

Jefferson Menifee LLC
Attn: David Potter
12250 El Camino Real, Suite 380
San Diego, CA 92130
364‐070‐051

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 17, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 16 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 correct, and that this declaration is executed on ____________, 20__.

David Potter
Vice President

Signature

Print Name

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 31
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1132 of 2787

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 32
Menifee

Mayor

and

City

Council

September

21,
2022
Page
1133 of 2787

ORDINANCE NO. 2022-

AN ORDINANCE OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING ORDINANCE NO. 2017-231 AND LEVYING SPECIAL TAXES TO BE
COLLECTED DURING FISCAL YEAR 2022-23 TO PAY THE ANNUAL COSTS

OF THE MAINTENANCE AND SERVICING OF STREET LIGHTS, PARKS,

PARKWAYS, STREETS, ROADS, AND OPEN SPACE, THE OPERATION AND

MAINTENANCE OF STORM DRAINAGE SYSTEMS, A RESERVE FUND FOR

CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH
RESPECT TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)(ANNEXATION NO. 16)
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on December 6, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 17-658 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 levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and
WHEREAS, on December 20, 2017, the City Council adopted Ordinance No. 2017-231 entitled, “An Ordinance Levying Special Taxes to be Collected During Fiscal Year 2018-19 to Pay the Annual Costs of the Maintenance and Servicing of Street Lights, Parks, Parkways, Streets, Roads, and Open Space, the Operation and Maintenance of Storm Drainage Systems, a Reserve Fund for Capital Replacement, and Administrative Expenses with Respect to City of Menifee Community Facilities District No. 2017-1 (Maintenance Services)” (“Ordinance No. 2017-231”), pursuant to which the City Council levied special taxes with the CFD No. 2017-1; and
WHEREAS, on August 17, 2022, the City Council adopted Resolution No. 22-1193 entitled “A Resolution of the City Council of the City of Menifee Declaring Its Intention to Annex Territory to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, Adopting a Map of the Area to be Proposed to be Annexed (Annexation No. 16) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017-1 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for September 21, 2022; and WHEREAS, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2017-1, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and
WHEREAS, on September 21, 2022, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services by the CFD No. 2017-1; and
WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said public hearing, the City Council adopted Resolution No. 22-___ entitled “A Resolution of the City Council of the City of Menifee Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 16)” (the “Resolution Calling the Item Title: 11.7
Ordinance

Introduction

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Annexation

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Community

Facilities

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Services),

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Item Page Number: 33
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4 5
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4 Election”) on September 21, 2022, wherein the City Council submitted the question of levying a special tax in territory proposed to be annexed to the CFD No. 2017-1 at the rate and according to the method of apportionment described therein; and
WHEREAS, at said special election on September 21, 2022, the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and WHEREAS, subsequent to said special election, the City Council adopted Resolution No. 22-___ entitled “A Resolution of the City Council of the City of Menifee Declaring the Results of the Special Election Held on September 21, 2022, and Ordering the Annexation of Territory to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 16)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2017-1 (such territory being referred to herein as “Annexation No. 16”).

NOW, THEREFORE, the City Council of the City of Menifee, California does ordain as follows:

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

Section 2.Amendment to Exhibit B of Ordinance No. 2017-231. Exhibit B of Ordinance No. 2017-231 is hereby amended by deleting it in its entirety and replacing it with Revised Exhibit B attached hereto.

Section 3.Amendment to Section 2 of Ordinance No. 2017-231. Section 2 of Ordinance No. 2017-231 is hereby amended by deleting it in its entirety and replacing it with the following:

Section 2.Levy of Special Taxes. Special taxes
shall be and are hereby levied for the Fiscal Year 2022- 23, and each Fiscal Year thereafter, on all parcels of real property within the Community Facilities District which are subject to taxation, which are identified in Revised Exhibit B attached hereto, and in the amount set forth for each such parcel in said Revised Exhibit B. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes
are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Section 4.Amendment to Section 2 of Ordinance No. 2017-231. Section 2 of Ordinance No. 2017-231 is hereby
Section 5. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 6.Effective Date. This ordinance shall take effect thirty (30) days from the date of its adoption.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

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Facilities

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Item Page Number: 34
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4 Section 7.Notice of Adoption. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, cause this Ordinance to be published in a manner required by law using the alternative summary and posting procedure authorized under Government Code Section 36933 (c).

This Ordinance was introduced and read on the 21st day of September, 2022 and APPROVED AND ADOPTED this 5th day of OCTOBER, 2022.
___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.7
Ordinance

Introduction

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Annexation

No.

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Community

Facilities

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2017-1

(Maintenance

Services),

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North Apartments, by Jefferson Menifee, LLC
Item Page Number: 35
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4 5
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4 EXHIBIT A

DESCRIPTION OF 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 (and may include reserves for replacement) in public street right-of- ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services include 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 are not limited to, the repair, removal or replacement of all or part of any of the water quality improvements; fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff or appurtenant facilities; clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing, or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 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.

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 Exhibit B to this Resolution of Intention.

The above services shall be limited to those provided within the boundaries of CFD No. 2017-1 or for the benefit of the properties within the boundaries of CFD No. 2017-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 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.

Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 36
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5 REVISED EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2022-23
(Effective as of October 5, 2022)

ASSESSOR'S PARCEL NUMBERS
Annexation Owner Assessor's Parcel Numbers
Stark Menifee Land, LLC
Stark Menifee Land, LLC & Menifee
Multifamily, LLC Original Formation
Several
See Next Page
1 MLC Holdings 360-210-001
2 Woodside O5S See Next Page
3 To Be Determined
4 Lennar Homes of California, Inc. See Next Page
5 Forester Real Estate Group Inc. 372-040-043, -044
6 Meritage Homes of California, Inc. 372-160-006, -007, -008, -013 and 372-190-003
7 RCFC Investments, LLC 339-020-004, -005, -006, -007, -008, -040, -041, -042, -043 and 339-030-022
8 Pulte Home Company, LLC and
Diamond Brother Five Partnership, LP 340-050-034 and 340-050-032 9 D.R.Horton Los Angeles Holding
Company, Inc. See Next Page
10 Briggs & 74, LLC 327-320-028
11 To Be Determined
12 BLC Fleming, LLC 333-020-011 and 333-020-019
13 FPG Sun Menifee 80 LLC 360-150-019
14 FPG Tricon Menifee Property LLC 372-050-037, -038, -039, -040, -041, - 042
15 Boulders Menifee LLC 339-200-080
16 Jefferson Menifee LLC 364-070-051
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

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2017-1

(Maintenance

Services),

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Ordinance Annex 16

Page 6 of 10 ends

6 REVISED EXHIBIT B (cont.)
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

ORIGINAL FORMATION

ASSESSOR'S PARCEL NUMBERS

Introduction

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Ordinance Annex 16

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Introduction

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Ordinance Annex 16

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Introduction

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Ordinance Annex 16

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ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
339020039 339362020 339362021 339362022 339362023 339362024 339362025 339362026 339362027 Item Title: 11.7
Ordinance

Introduction

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Ordinance Annex 16

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ASSESSOR'S PARCEL NUMBERS
Assessor's Parcel Numbers
333070069 333070070 333070071 333070075 333070080 333070081 333070082 ANNEXATION NO. 9

Introduction

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Annexation

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Item Page Number: 42
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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

2. The u ndersigned 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 lig hting, 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 appurte nant 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 boundarie s 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.

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 f orm 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 Califor nia 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.

Introduction

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Item Page Number: 43
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Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

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Facilities

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2017-1

(Maintenance

Services),

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Item Page Number: 44
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INSERT EXHIBIT A: LEGAL DESCRIPTION
Item Title: 11.7
Ordinance

Introduction

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No.

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Item Page Number: 45
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PREPARED BY:

HUNSAKER
& ASSOCIATES

EXHIBIT A
PARCEL A OF NOTICE OF LOT LINE ADJUSTMENT NO. LLA17-007 RECORDED FEBRUARY 05, 2018 AS INSTRUMENT NO. 2018-0044400 IN THE CITY OF MENIFEE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

LEGAL DESCRIPTION
APN: 364-070-051
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

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Community

Facilities

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(Maintenance

Services),

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Oro
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Item Page Number: 46
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INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP
Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

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2017-1

(Maintenance

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Item Page Number: 47
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 48
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 49
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 50
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 51
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 52
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 53
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 54
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 55
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Item Title: 11.7 Ordinance Introduction and Annexation No. 16 to Community Facilities District 2017-1 (Maintenance Services), Del Oro North Apartments, by Jefferson Menifee, LLC Item Page Number: 56
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Item Title: 11.7
Ordinance

Introduction

and

Annexation

No.

16 to

Community

Facilities

District

2017-1

(Maintenance

Services),

Del

Oro
North Apartments, by Jefferson Menifee, LLC
Item Page Number: 57
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September

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CITY OF MENIFEE
SUBJECT: Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village
MEETING DATE: September 21, 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 establishing Community Facilities District (CFD) No. 2022-2, McLaughlin Village, located at the intersection of Barnett Road and McLaughlin Road; and

2. Adopt a resolution determining the necessity to incur bonded indebtedness in an amount not- to-exceed $6,000,000 for CFD No. 2022-2, McLaughlin Village; and

3. Adopt a resolution certifying election results for CFD No. 2022-2, McLaughlin Village; and

4. Introduce an ordinance authorizing the levy of special taxes within CFD No. 2022-2, McLaughlin Village; and

5. Approve a funding agreement with Century Communities of California, LLC.

DISCUSSION
The Finance Committee reviewed the proposed CFD No. 2022-2 and recommended submittal to the City Council for approval at the August 3, 2022 City Council meeting.

On August 3, 2022, the City Council adopted Resolution No. 22-1185 (the “Resolution of Intention”), declaring its intent to commence the formation of CFD No. 2022-2. The next step in the proceedings is to hold a public hearing on September 21, 2022, to conduct an election in the CFD and to declare the results of that election.

The developer, Century Communities of California, LLC, a Delaware limited liability company (“Century Communities”), 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 Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 1
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Formation of Community Facilities District No. 2022-2, McLaughlin Village September 21, 2022

Page 2 of 3 ends

1 1
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Barnett Road and McLaughlin Road. Century Communities has requested that the City form 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.

Century Communities requested that the boundaries of CFD No. 2022-2 include the area described in “Attachment A” of 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, which are included as appendices to the attached Public Hearing Report.

The Resolution of Intention called for a public hearing to be held on September 21, 2022, for the City Council to formally consider the approval of the formation of the CFD and the approval of the levy of the special taxes within the CFD. Notice of the public hearing was published in the Press Enterprise on September 13, 2022 and mailed to Century Communities in accordance with the Mello-Roos Act.

In connection with the public hearing, Spicer Consulting Group has prepared a Public Hearing Report which describes and analyzes the facilities to be financed by the CFD and the estimated costs of such facilities. Following the close of the public hearing, the City Council will be asked to adopt the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt which, together, approve the formation of the CFD and the levy of the special taxes in accordance with the RMA and determines the necessity for the CFD to issue bonds in an amount not-to- exceed $6,000,000. Such resolutions call for an election to submit to the qualified voters in the CFD, ballot measures on the approval of the special taxes, the issuance of the bonds and an appropriations limit for the CFD.

In addition, the Resolution of Formation, approves the execution and delivery of the funding agreement with Century Communities (the “Funding Agreement”) in the form presented to the City Council. The Funding Agreement sets forth the terms, among others, pursuant to which the CFD will finance improvements benefitting the CFD.

On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County, attached for reference, certifying that there are no registered voters residing within the boundaries of the CFD. Accordingly, under the Mello-Roos Act, only landowners in the CFD are eligible to vote at the election with each owner having one vote for each acre (or portion thereof) that they own within the CFD. Century Communities, as the sole landowner in the CFD, has executed a consent and waiver of certain election procedures, including certain timing requirements with respect to the election in accordance with the Mello-Roos Act. Accordingly, if the City Council approves the Resolution of Formation and the Resolution Determining the Necessity to Incur Debt, the City Clerk would conduct the election. The City Clerk would announce the election results and the City Council would be asked to adopt the Resolution Certifying the Election Results. Based on upon certification that two thirds of the votes cast are in favor of the propositions voted upon, the Resolution Certifying the Election Results directs the City Clerk to record a notice of special tax lien on the property within the CFD. The City Council would then be asked to introduce the ordinance authorizing the levy of the special tax within the CFD in accordance with the RMA.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 2
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Formation of Community Facilities District No. 2022-2, McLaughlin Village September 21, 2022

Page 3 of 3 ends

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STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

FISCAL IMPACT
The CFD would be required to annually levy special taxes on all of the taxable property within the CFD in order to pay for the costs of facilities, debt service on bonds, and administration of the CFD. Any bonds issued by the CFD are not obligations of the City and would be secured solely by the special taxes levied in the CFD. Century Communities has made a deposit to pay for the costs of forming the CFD. The Resolution of Intention, Section 13 approved a form of a reimbursement agreement to reimburse Century Communities for these costs if and when bonds are issued for CFD.

ATTACHMENTS

1. Resolution Establishing CFD No. 2022-2

2. Resolution Determining Necessity to Incur Debt for CFD No. 2022-2

3. Resolution Certifying Election Results for CFD No. 2022-2

4. Ordinance Authorizing the Levy of Special Taxes

5. Public Hearing CFD Report

6. Certificate of Registrar of Voters

7. Funding Agreement CFD No. 2022-2
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 3
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RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2022-2
(MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE, AUTHORIZING THE

LEVY OF A SPECIAL TAX THEREIN, CALLING AN ELECTION AND

APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED THERETO WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore adopted Resolution No. 22-1185 stating its intention 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, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, a copy of Resolution No. 22-1185 setting forth a description of the proposed boundaries of Community Facilities District No. 2022-2, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, notice was published and mailed to all landowners of the land proposed to be included within the District as required by law relative to the intention of this City Council to form proposed Community Facilities District No. 2022-2 and to levy a special tax (the “Special Tax”) and to incur bonded indebtedness in the maximum aggregate amount of up to $6,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 22-1185; and
WHEREAS, on September 21, 2022, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2022-2, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and
WHEREAS, at the September 21, 2022 public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and
WHEREAS, at the September 21, 2022 public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-2, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and
WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Attachment A hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 4
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Resolution Establishing CFD No. 2022-2
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formation of the District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and
WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in the proposed boundaries of Community Facilities District No. 2022-2 for each of the 90 days prior to September 21, 2022 and that the qualified electors in Community Facilities District No. 2022-2 are the landowners within the District; and WHEREAS, on the basis of all of the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2022-2 and to call an election therein to authorize (i) the levy of the Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Attachment C to Resolution No. 22-1185 (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2022-2; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into a Funding Agreement (the “Agreement”) with Century Communities of California, LLC, a Delaware limited liability company (the “Developer”) and the form of the Agreement is on file with the City Clerk; and
WHEREAS, the District and the Developer propose to enter into a joint community facilities agreement (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, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

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

Section 2.A community facilities district to be designated “Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

Section 3.The boundaries of Community Facilities District No. 2022-2 are established as shown on the map designated “Community Facilities District No. 2022-2 (McLaughlin Village) City of Menifee, County of Riverside, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor- County Clerk-Recorder’s office of the County of Riverside in Book No. 89 Page No. 43 on August 9, 2022 as Instrument No. 2022-0350781.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 5
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Section 4.The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2022-2 are those set forth in Attachment A attached hereto. The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

The City is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities, all in accordance with the Act. The City Council finds and determines that the proposed Facilities are necessary to meet the increased demand that will be placed upon local agencies and public infrastructure as a result of new development within the District and that the Facilities to be financed, including those to be financed pursuant to the JCFA to be entered into with the School District, benefit residents of the City and the future residents of the District.

Section 5.Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non-exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Attachment C to Resolution No. 22-1185 and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2022-2 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2064-65. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property.

If Special Taxes of the District 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 as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2064-65, and (iii) under no circumstances will the Special Tax Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 6
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levied 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 above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The City Manager of the City of Menifee, or his or her designee, will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of special tax levy obligations by assessor’s parcel number and will be responsible for estimating future special tax levies pursuant to Section 53340.2 of the Act.

Section 6.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 in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2022-2, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Community Facilities District No. 2022-2 which is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any 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 above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method. The obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.

Section 7.Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the Special Tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the Special Tax by the District ceases.

Section 8.Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2022-2, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2022-2 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2022-2.

Section 9.It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2022- 2 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of Community Facilities District No.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 7
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2022-2 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2022-2.

Section 10.Written protests against the establishment of the District have not been filed by one-half or more of the registered voters within the boundaries of the District or by the property owners of one-half (1/2) or more of the area of land within the District. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

Section 11.An election is hereby called for Community Facilities District No. 2022-2 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2022-2 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Attachment B.

Section 12.The date of the election for Community Facilities District No. 2022-2 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations limit for the District shall be September 21, 2022, or such later date as is consented to by the City Clerk or any Acting City Clerk (referred to herein as the “City Clerk”) of the City of Menifee; provided that, if the election is to take place sooner than 90 days after September 21, 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on September 21, 2022. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-2. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of July 27, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding September 21, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022-2, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on September 21, 2022, which waiver is on file with the City Clerk.

Section 13.The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 8
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the public hearing regarding the formation of Community Facilities District No. 2022-2. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 14.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 15.The form of the Agreement on file with the City Clerk is approved as to form, and each of the City Manager, Assistant City Manager, and their written designees, is authorized to execute the Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof. Notwithstanding City Policy No. CC-12, the City Council hereby waives the requirement for the approval of the Agreement prior to the adoption of the resolution of intention to establish the District. The City Council hereby finds that such waiver is reasonable given that the projects as listed in the Agreement are expected to provide public benefits to the future residents in the District.

Section 16.This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this the 21st day of September, 2022. ___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 9
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ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2022-2
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: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 10
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ATTACHMENT B

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

SPECIAL TAX AND SPECIAL BOND ELECTION
September 21, 2022
PROPOSITION A: Shall Community Facilities District
No. 2022-2 (McLaughlin Village) of the City of Menifee
(the “District”) incur an indebtedness and issue bonds in the maximum principal amount of $6,000,000, with
interest at a rate or rates not to exceed the maximum
interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 22-1185 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
22-1185 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 22-1185,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2022-23, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for Community Facilities
District No. 2022-2 be an amount equal to $3,000,000?
YES______
NO_______
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 11
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RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE DETERMINING

THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $6,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE AND CALLING

AN ELECTION THEREIN
WHEREAS, on August 3, 2022, the City Council of the City of Menifee (the “City Council”) adopted Resolution No. 22-1185 stating its intention 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, as amended (the “Act”); and
WHEREAS, on August 3, 2022, the City Council also adopted Resolution No. 22-1186 stating its intention to incur bonded indebtedness in the amount of up to $6,000,000 within proposed Community Facilities District No. 2022-2 to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Attachment B to Resolution No. 22-1185, and (2) the incidental expenses to be incurred in financing such public facilities and services and forming and administering the District, as identified in Attachment B to Resolution No. 22-1185; and WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2022-2 and to incur bonded indebtedness in the amount of up to $6,000,000 within the boundaries of proposed Community Facilities District No. 2022-2; and
WHEREAS, on September 21, 2022, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2022-2, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 22-1185 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2022-2 for the purposes described in Resolution No. 22-1185; and
WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2022-2, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted Resolution No. ___- ___ establishing Community Facilities District No. 2022-2 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Attachment B thereto; and WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law; Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 12
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Resolution Determining Necessity to Incur Bonded Indebtedness for CFD No. 2022-2 2 4893-8400-1583v4/200299-0010
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

Section 1.It is necessary to incur bonded indebtedness in one or more series in a maximum aggregate principal amount not to exceed $6,000,000 within Community Facilities District No. 2022-2.

Section 2.The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, and/or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2022-2, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

Section 3.The whole of the property within Community Facilities District No. 2022-2, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 22-1185 as Attachment C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.

Section 4.The maximum term of any series of bonds to be issued to finance Facilities shall in no event exceed thirty-five (35) years from the date of issuance of the bonds, or such longer term as is then permitted by law.

Section 5.The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.

Section 6.The bonds may bear a variable or fixed interest rate, provided that such variable rate or fixed rate shall not exceed the maximum rate permitted by Section 53531 of the Act, or any other applicable provision of law limiting the maximum interest rate on the bonds.

Section 7.Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2022-2 on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $6,000,000 shall be in the form of Proposition A set forth in Attachment A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Attachment A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Attachment A.

Section 8.The date of the special election for Community Facilities District No. 2022-2 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 13
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Resolution Determining Necessity to Incur Bonded Indebtedness for CFD No. 2022-2 3 4893-8400-1583v4/200299-0010
special tax and setting an appropriations limit shall be September 21, 2022, or such later date as is consented to by the City Clerk, or any Acting City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after September 21, 2022, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on September 21, 2022. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of the Resolution of Formation and this resolution, and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act.

Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2022-2. The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of July 27, 2022. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding September 21, 2022, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2022- 2, as provided in Section 53326 of the Act. The sole landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on September 21, 2022, which waiver is on file with the City Clerk.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 14
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Resolution Determining Necessity to Incur Bonded Indebtedness for CFD No. 2022-2 4 4893-8400-1583v4/200299-0010
Section 9.This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this the 21st day of September, 2022. ___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Sarah Manwaring, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 15
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A-1
4893-8400-1583v4/200299-0010

ATTACHMENT A

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

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4893-5215-1087v3/200299-0010
RESOLUTION NO. 22-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,

CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE)

OF THE CITY OF MENIFEE CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Menifee called and duly held an election on September 21, 2022 within the boundaries of Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee (“Community Facilities District No. 2022-2” or the “District”) pursuant to Resolution Nos. 22-__ and 22-__ for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Attachment A; and
WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Acting City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Attachment B.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

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

Section 2.Propositions A, B and C presented to the qualified electors of the District on September 21, 2022 were approved by more than two-thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in an amount not to exceed $6,000,000 specified in Proposition A.

Section 3.The City Clerk is hereby directed to record in the Assessor-County Clerk- Recorder’s office of the County of Riverside within fifteen days of the date hereof a notice of special tax lien with respect to the District which Bond Counsel to the District shall prepare in the form required by Streets and Highways Code Section 3114.5.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 17
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Resolution Certifying Election Results for CFD No. 2022-2 2 4893-5215-1087v3/200299-0010
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1 Section 4.This Resolution shall be effective upon its adoption.

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4893-5215-1087v3/200299-0010

ATTACHMENT A

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

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4893-5215-1087v3/200299-0010

ATTACHMENT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Sarah Manwaring, City Clerk of the City of Menifee, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee (the “City”). The election was held in the City Council Chambers, 29844 Haun Road, Menifee, California, on September 21, 2022. I caused to be delivered ballots to each qualified elector. ____ (__) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 21st day of September, 2022.

Sarah Manwaring, City Clerk
City of Menifee
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 20
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ORDINANCE NO. 2022-____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MENIFEE,

CALIFORNIA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE)

OF THE CITY OF MENIFEE AUTHORIZING THE LEVY OF SPECIAL TAXES WHEREAS, on August 3, 2022, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 22-1185 declaring its intention to form Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 22-1186 declaring its intention to incur bonded indebtedness for the District; and
WHEREAS, on September 21, 2022, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 22-1185 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $6,000,000 of bonded indebtedness as described in Resolution No. 22-1186; and WHEREAS, at the September 21, 2022 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 22-1185 and to secure the payment of up to $6,000,000 of bonded indebtedness of the District as described in Resolution No. 22-1186 (the “Bonds”) were heard and a full and fair hearing was held; and WHEREAS, on September 21, 2022, the City Council adopted Resolution Nos. 22-___ and 22-___ which formed the District and called a special election within the District on September 21, 2022 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and
WHEREAS, on September 21, 2022, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 22-___, the issuance of the Bonds as described in Resolution No. 22-___ and establishing an appropriations limit for the District.

NOW, THEREFORE, the City Council of the City of Menifee, California does ordain as follows:

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 21
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Ordinance Levying Special Taxes for CFD No. 2022-2
2 4893-0332-6767v3/200299-0010
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2 Section 1.The above recitals are all true and correct.

Section 2.By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 22-1185, which is incorporated by reference herein (the “Rate and Method”).

The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District.

Section 3.Each of the Mayor, the City Manager, the Assistant City Manager, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to the Special Tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.

Section 4.Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 22-___ or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5.All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 22-___.

Section 6.The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 22
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Ordinance Levying Special Taxes for CFD No. 2022-2
3 4893-0332-6767v3/200299-0010
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2 Section 7.As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.

Section 8.The Mayor of the City shall sign this Ordinance and the City Clerk or any Acting City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Menifee.

Section 9.The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

Section 10.The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

Section 11.A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.

Section 12.This Ordinance shall take effect thirty days after its final passage.

This Ordinance was introduced and read on the 21st day of September, 2022 and APPROVED AND ADOPTED this ___ day of ____________, 2022. ___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 23
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CITY OF MENIFEE
Public Hearing Report
COMMUNI TY FACILITIES DI STRICT NO. 20 22-2
(McLAUGHL IN VILLAGE)
Septe mber 21, 2022
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 24
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Table of Contents

Sections P age _____________________________________________ 1 Introduction ________________________________________________ 1 2 Description of Facilities ______________________________________________ 2 3 Cost Estimate ________________________________________________ 3 4 Proposed Development _____________________________________________ 4 5 Rate and Method of Apportionment ____________________________________ 5 6 Certifications ________________________________________________ 8

Tables Page
3-1 Cost Estimate ________________________________________________ 3 5-1 Assigned Special Tax for Developed Property ____________________________ 5

Appendices P age _____________________________________________ A Rate and Method of Apportionment _____________________________________ B Proposed Boundary Map _________________________________________ C Resolution of Intention

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 25
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1 Introduction Page | 1
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Background
On August 3, 2022, the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2022-2 (McLaughlin Village) of the City of Menifee (“CFD No. 2022-2” or “District”), Resolution No. 22-1185, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter

2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (“Act”).

CFD No. 2022-2 is currently comprised of approximately 15 gross acres within Tract Map 36937 including 126 proposed single family residential properties. The property is located at the southeast intersection of McLaughlin Road and Barnett Road.

For a map showing the boundaries of CFD No. 2022-2 please see Appendix B.

Purpose of Public Hearing Report
WHEREAS, this Community Facilities District Report (“Report”) is being provided to the City Council and generally contains the following:

1. A brief description of CFD No. 2022-2;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-2.

3. A brief description of the Boundaries of CFD No. 2022-2; and

4. An estimate of the cost of financing the bonds used to pay for the Facilities, including all costs associated with formation of the District, issuance of bonds, determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District, and any other incidental expenses to be paid through the proposed financing.

For particulars, reference is made to the Resolution of Intention as previously approved and adopted and is included in Appendix C.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 26
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2 Description of Facilities Page | 2
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

Description of the Facilities
A Community Facilities District may pay for facilities which may include all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay for any indebtedness secured by any tax, fee, charge, or assessment levied, provide for the pu rchase, construction, expansion, or reha bilitation for any real or other tangible property with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development and/or rehabilitation occurring within the District.

The types of facilities that are proposed by CFD No. 2022- 2 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-2 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general go vernment 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 perma nent school facilities of Romoland School District, including classrooms, multi-purpose facili ties, administration and aux iliary space at school fac ilities, athletic fields, playgrounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furnit ure, equipment and technology, including te chnology 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 an d appurtenant work in conn ection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and 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.

All costs associated with the creation of CFD No. 2022-2, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-2, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-2 and any obligations.

The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature.

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2022-2.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 27
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3 Cost Estimate Page | 3
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022- 2 Bonds is estimated to be $3,822,686 based upon current dollars (Fiscal Year 2022-23). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-2 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2022-2 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate

City Fees Total Bond Allocation(1)
Law Enforcement $29,106 $29,106
Fire Facilities $77,364 $77,364
Circulation $588,420 $588,420
General Government $128,646 $128,646
Public Use Facilities $19,404 $19,404
Quimby $1,094,814 $1,094,814
Parks – Improvements $83,286 $83,286
City Facilities $404,208 $404,208
Total City Fees $2,425,248 $2,425,248

Romoland School District Total Bond Allocation(1)
School Fees $1,462,980 $1,397,438
Total Romoland School District $1,462,980 $1,397,438

Total Eligible Fees/Improvements $3,888,228 $3,822,686
Incidental Financing Costs $862,314
Total Funded by Bond Proceeds $4,685,000

Total Fees/Improvements to be Funded by Developer $65,542 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 28
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4 Proposed Development Page | 4
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
The CFD No. 2022-2 includes approximately 15 gross acres located at the southeast intersection of McLaughlin Road and Barnett Road in the City. The property within CFD No. 2022-2 is expected to be developed with 126 single family residential properties. As of Fiscal Year 2022-23 the proposed CFD No. 2022-2 includes the following Assessor's Parcel Number:

Assessor’s Parcel
Number
331-090-008
A map showing the boundaries of CFD No. 2022-2 is included in Appendix B.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 29
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5 Rate and Method of Apportionment Page | 5
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-2 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2022-2, and provided further that CFD No. 2022-2 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2022-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2022-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-2 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2022-2 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-65 Fiscal Year.

Table 5-1
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. f t $2,415.00

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

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

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

5. Non-Residential Property Acre N/A $49,979.00

Escalation of Special Taxes
On each July 1, commencing on July 1, 2023 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2022-2, see the attached and incorporated in Appendix A.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 30
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6 Certifications Page | 6
City of Menifee
CFD No. 2022-2 (McLaughlin Village)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2022- 2 and benefits the lands within said CFD No. 2022-2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: September 21, 2022 SPICER CONSULTING GROUP, LLC

__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE COUNTY

STATE OF CALIFORNIA

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 31
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APPENDIX A
Rate and Method of Apportionment
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 32
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City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES 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 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 33
Menifee

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Council

September

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2022
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1191 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 2

"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.

“Condominium Plan" means a condominium plan purusant to California Civil Code, Section 6624.

"County" means the County of Riverside, State of California.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 34
Menifee

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City

Council

September

21,
2022
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1192 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 3

"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 1st of any year and ending the following June 30th.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Category” means any of the categories listed in Table 1 of Section D.

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 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 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 Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 35
Menifee

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September

21,
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1193 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 4

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 2022‐2023 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: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 36
Menifee

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City

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September

21,
2022
Page
1194 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 5

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 2022‐2023, 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 2022‐2023 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 37
Menifee

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City

Council

September

21,
2022
Page
1195 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 6

TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022‐2023

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.

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.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 38
Menifee

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City

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September

21,
2022
Page
1196 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 7

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 2022‐2023 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% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 39
Menifee

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City

Council

September

21,
2022
Page
1197 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 8

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 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.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 40
Menifee

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September

21,
2022
Page
1198 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 9

“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):

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
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 41
Menifee

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City

Council

September

21,
2022
Page
1199 of 2787

City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 10

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 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 Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 42
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Community Facilities District No. 2022‐2 (McLaughlin Village) Page 11

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.

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
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 43
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City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 12

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 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 Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Special Tax obligation, (ii) the percentage of the 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 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: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 44
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City of Menifee
Community Facilities District No. 2022‐2 (McLaughlin Village) Page 13

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 actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

J. APPEALS OF SPECIAL TAXES

Any taxpayer may file a written appeal of the Special Taxes 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: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 45
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APPENDIX B
Boundary Map
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 46
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Item Title: 11.8 Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 47
Menifee Mayor and City Council                                                                               September 21, 2022 Page 1205 of 2787

APPENDIX C
Resolution of Intention
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 48
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RESOLUTTON NO. 22-'t 185

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE

CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES
DlsTRrcT NO. 2022-2 (MCLAUGHLTN VTLLAGE) OF THE CtTy

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 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 fiie 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, 4880-5640- I 695v3/200299-00 I 0
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 5332'l 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 5331 1 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 "8" 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 "lncidental Expenses"); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the lncidental 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 lncidental 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 lncidental Expenses and the levy of a special tax to pay for the Facilities and the lncidental 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; Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 49
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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 l. The above recitals are true and correct
Section 2. A community facilities district is proposed to be established under the terms of the Act. lt 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 31 11 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 lncidental 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 5331 6.2 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 lncidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and lncidental 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. ln the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all 2 4880-5640-1 695v3/200299-00'l 0
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 50
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amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.
lf 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 whrch 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. 3 4880-5640-1 695v3/200299-001 0
The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2O22-2 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. ln 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 Diskict 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,lhe proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the lncidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on September 21,2022, at the City Council Chamberc,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. lf 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 ofthe 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 fot the exclusive purpose of paying principal of or interest Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 51
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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 lhe 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, lor 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, rt ft 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 lncidental 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. fhe 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. Ihe 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 wrll 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 l2 The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and lncidental Expenses is Six Million Dollars ($6,000,000).
4 4880-5640-1 695v3/200299-001 0
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 52
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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 3'd day of August, 2022.

ATTEST: APPROVED:
anie Roseen, Acting City Clerk Bill Zimm ayor
APPROVED AS TO FORM:

Je . Melching, City Atto ey
(
4880-5640- 1 695v3/200299-001 0
./7\-h,-
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 53
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ATTACHMENT A

BOUNDARY MAP
A-1
4880-5640-1 695v3/200299-001 0
I
,t
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 54
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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 flnanced 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, assocaated 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. 4880-5640- 1 695v3/200299-00 1 0
B-1
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 55
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ATTACHMENT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2022.2
(MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE
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 5331 1) of Part 1 of Division2of Title5of 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 lndenture; the costs to the City, CFD No. 2022-2 ot 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 ma.jor 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. 2022-2lor 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 'l"t preceding the Fiscal Year in which the Special Tax is being levied, (ii)that have an assigned Assessor's Parcel Number from the County 4880-5640-1 695v3/200299-001 0
c-1
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
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 56
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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 l"rpreceding 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{erm leases, loans from government agencies, or loans from banks, olher 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 3'l .
"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 CFDNo.2022-2.
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 57
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"Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riversrde, 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 l"rpreceding 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"rof any year and ending the following June 30rh.
"lndenture" 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 't 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 sucl't 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-Residentral 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 4880-5640-1 695v3i200299-00'l 0
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 58
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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. "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 ofthe 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) Adminislrative 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 th6 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 lndenture.
"Taxable Property" means all Assessor's Parcels within CFD No. 2022-2, which are not Exempt Property.
"Trustee" means the trustee, fiscal agent, or paying agent under the lndenture. "Undeveloped Property" means all Assessor's Parcels of Taxable Property which are not Developed Property, Approved Property, or Provisional Undeveloped Property.

B. SPECIAL TAX
Commencrng Fiscal Year 2022123 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.
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"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. "Taxable Unit" means either a Residential Unit or an Acre.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 59
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C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2022123, each Assessor's Parcel within CFD No. 2022-2 shall be classified as Taxable Property or Exempt Property. ln 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.
ln 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 firsl 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 Propertv
The Maximum Special Tax for each Assessor's Parcel of Single-Family Residential Property in any Frscal 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. Assiqned 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 Y eat 2022123 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below. 4880-5640-1 695v3/200299-00'1 0
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 60
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Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1 . Sinqle Family Residential Property RU Less than 2,100 sq. ft $2,415.00

2. Sinqle Familv 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
TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2022123
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 amounl in effect in the prior Fiscal Year.
ln 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. s=(UxA) /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 classilied 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.
ln 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. 4880-5640-1 695v3/200299-001 0
b. Multiole Land Use Cateqories
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 61
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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. ln 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,[he Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

2. Aoproved 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.

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 2022123 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

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.
lf 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 100o/o ol the Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement.
lf 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% 4880-5640- 1 695v3/200299-001 0
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3. Undeveloped Property and Provisional Undeveloped Prooertv Step One:

Step Two:

Step Three:

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 62
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ofthe Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement.

Step Four lf 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 1 00% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Step Five lf 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.

EXEMPTIONSF.

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 lrom 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 ln 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 lnflation lndex 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 4880-5640-'1 695v3/200299-001 0
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 63
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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 lndenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No.2O22-2.
"Construction lnflation lndex" means the greater ol (i) 2o/. and (ii) the annual percentage change in the Engineering News-Record Building Cost lndex for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. ln the event this index ceases to be published, the Construction lnflation lndex shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost lndex 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 priorto 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.

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):
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1. Prepayment in Full
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 64
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Bond Redemption Amount
plus RedemptionPremium
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 ofthe 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.

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 4880-5640-1 695v3/200299-001 0
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 65
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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 lndenture), 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 lndenture) 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.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. ln such event, the increment above $5,000 or an integral multiple thereof will be retained in the appropriate fund established under the lndenture 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 Adminrstrator 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.
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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 lndenture 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.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 66
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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 pa(ially 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)xF)+A
These terms have the following meaning
PP = Partial Prepayment Amount
Pe = the Prepayment Amount calculated according to Section G. l F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the 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 Special Tax obligation for the Assessor's Parcel shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Special Tax obligation, (ii) the percentage of the 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 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 1 5 of Section G.1 , and (ii) indicate in the records of the CFD that there has been a partial prepayment forthe Assessor's Parcel and that a portion ofthe 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.
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 67
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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 appetlant of its determination. lf 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.

I, MANNER OF COLLECTION
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 68
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STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

CITY OF MENIFEE
l, Stephanie Roseen, Acting City Clerk of the City of Menifee, do hereby certify that the foregoing City Council Resolution No. 22-1 185 was duly adopted by the City Council of the City of Menifee at a meeting thereof held on the 3rd of August 2022 by the following vote:

St anie Roseen, Acting City Clerk
)
)ss
)

MENIFEE
\#
r;
Ayes: Karwin, Liesemeyer, Sobek, Zimmerman
Noes: None

Absent: Deines
Abstain: None
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 69
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 70
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Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 71
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COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE)

OF THE CITY OF MENIFEE

FUNDING AGREEMENT
THIS FUNDING AGREEMENT (the “Agreement”) is made and entered into by and between CITY OF MENIFEE (the “City”), acting for and on behalf of itself and COMMUNITY FACILITIES DISTRICT NO. 2022-2 (MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE (the “Community Facilities District” or “CFD”) and CENTURY COMMUNITIES OF CALIFORNIA, LLC, a Delaware limited liability company (the “Developer”), each individually a “Party” and collectively the “Parties.”
WHEREAS, Developer has requested that the City consider the formation of a community facilities district pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), and undertake proceedings for the authorization of special taxes and issuance of bonded indebtedness for the payment of the construction and/or acquisition of certain improvements to be owned, operated or maintained by the City and the Romoland School District (the “Romoland School District”), and incidental expenses in accordance with the Act; and WHEREAS, in order to proceed in a timely way with development of its property within the CFD which is described in the attached Exhibit “A” (the “Developer Property”), Developer desires to fund through the Community Facilities District (i) improvements included in the City’s fee programs (the “City Fee Facility Improvements”), as more particularly set forth and described in Exhibit “B,” and (ii) the improvements of the Romoland School District described in Exhibit “C” hereto (the “Miscellaneous Improvements” and together with the City Fee Facilities Improvements, collectively the “Improvements”); and
WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds secured by Special Taxes (as defined in Section 2.2) of the CFD (the “Bonds”) to fund the Improvements; and WHEREAS, the City Council has adopted the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements (the “Policy”); and WHEREAS, the purpose of this Agreement is to constitute a formal understanding between Developer and the City (pursuant to the requirements of the Act and the Policy) concerning financial and other obligations and responsibilities related to the formation of the Community Facilities District and the Improvements to be financed by the Community Facilities District, when and if formed, to the extent funds are available, and to set forth the conditions upon which (1) the Community Facilities District will fund the City Fee Facility Improvements thereby satisfying corresponding City fees; and (2) the Community Facilities District will also fund the Miscellaneous Improvements described in Exhibit “C.”
NOW, THEREFORE, it is mutually agreed between the respective Parties as follows:

1. Feasibility Study. The City has retained, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the CFD, including the special tax consultant, bond counsel, and other consultants deemed necessary by the City. The Developer has advanced to the City a sum of money for such costs, all or a part of which may be eligible for reimbursement from the CFD Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 72
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2 in accordance with the Reimbursement Agreement dated as of June 1, 2022 (the “Reimbursement Agreement”) between the Developer and the City.

2. Sale of Bonds.

2.1 City Policies. The City Council has adopted the Policy, setting forth the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements. Pursuant to the Policy, the total annual amount of the special taxes to be collected with respect to a parcel within the CFD and all other taxes and assessments which will be collected with respect to such parcel from the secured tax roll must not exceed two percent (2%) of the Fair Market Value (as defined in the Policy) of such parcel at the time of CFD formation.

The Parties hereby agree that, unless waived by the City, at the time of issuance of the Bonds, the ratio of the value of all parcels of property for which the Bonds are being issued to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four-to-one (4:1). Unless waived by the City, the Fair Market Value of the property within the Community Facilities District for purposes of determining the foregoing ratio will be determined based on the appraised value of the property based on the appraisal made by an appraiser selected by the City with a valuation date within three (3) months of the issuance of the Bonds, or, with respect to developed projects (as determined in the sole discretion of the City) or issuance of refunding bonds, the assessed value of the property, or some combination thereof.

Subject to satisfaction of the Policy and the requirements of this Agreement, the City shall use reasonable efforts to issue and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in accordance with the schedule for development of the Developer Property. The ultimate decision as to issuance and sizing lies in the sole legislative discretion of the City.

2.2 Security for Payment of Special Taxes.
(a) Concurrently with the issuance and sale of each series of the Bonds, the owner of any land within the Community Facilities District which the City has determined, in its sole discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum Special Taxes for the then-current fiscal year (as defined in the Rate and Method of Apportionment of Special Tax for the Community Facilities District (the “Rate and Method”) and such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument of credit from a financial institution (rated “A” or better) and approved by the City, or (ii) cash in-lieu thereof (a “Security”). The Security shall be in an amount equal to 200% of the product of the maximum annual debt service on the Bonds proposed to be issued times a fraction the numerator of which is the aggregate Maximum Special Taxes on the Sizing Property in the then current fiscal year applicable to the land owned by the Account Party and the denominator of which is the total Maximum Special Taxes applicable to all of the Sizing Property in such fiscal year (the “Stated Amount”). The Security shall be maintained by the Account Party in each fiscal year until terminated in accordance with Section 2.2(c) below. While the Security is still required the Stated Amount of such Security shall be reduced as set forth in a Certificate of Reduction or Termination (as defined in Section 2.2(c) below).

The Security shall name the Fiscal Agent as a beneficiary and shall provide that the Fiscal Agent may draw an amount equal to any delinquencies in payment of semiannual installments of the Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 73
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3 Special Taxes levied on property owned by the Account Party in the Community Facilities District.

The total amount to be drawn under the Security shall not exceed an amount equal to the Special Taxes owed by the Account Party with respect to property within the Community Facilities District that is delinquent at the time the draw is made. The amount drawn on the Security shall be applied in the same manner and for the same purposes as the delinquent Special Taxes would have been applied; provided, however the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.

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

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

At such time as the Security is renewed, or a Substitute Security is accepted by the Fiscal Agent, or the requirement for the Security has been terminated pursuant to this section, the City or its designee, shall release all amounts in the Security account to the Security Provider (or its designee, which may be the Developer) within ten (10) calendar days from the date of renewal or acceptance. (c) Following the sale or transfer by the Account Party of any property to a person other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the Account Party, the Account Party shall notify the Community Facilities District of such event, in writing, and, if requested by the Account Party, the Stated Amount of the Security shall be reduced and be recalculated in accordance with this Section 2.2; provided, however, that any costs associated with the recalculation and reduction shall be borne by the Account Party. Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount equal to 200% of the product of the maximum annual debt service on the outstanding Bonds times a fraction the numerator of which is the aggregate Maximum Special Taxes applicable to the Sizing Property owned by the Account Party and the denominator of which is the total Maximum Special Taxes to all of the Sizing Property as of the date of calculation. The Security shall be terminated when the Account Party has paid all Special Taxes in Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 74
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4 the current fiscal year and the Sizing Property owned by the Account Party is expected to be responsible for less than 20% of the Maximum Special Taxes in the next fiscal year.

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

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

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

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

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 75
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5 2.4 Bond Issuance Parameters. The terms and conditions upon which each series of the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City in its legislative discretion in conformance with the Act, the Policy, and this Agreement. Each series of Bonds shall be issued with a term not to exceed 35 years from the date of issuance of the Bonds. The proceeds of the Bonds shall be used in the following priority to (1) fund a reserve fund for the payment of principal and interest with respect to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt service on Bonds, or (iii) 125% of average annual debt service; (2) fund capitalized interest through the interest payment date on the Bonds for which Special Taxes are not available for payment of debt service on the Bonds or such longer period as requested by the Developer and approved by the City, subject to the Act; (3) reimburse the Developer or its designee pursuant to Section 1 hereof for CFD formation costs advanced by the Developer pursuant to the Reimbursement Agreement which have not already been reimbursed to the Developer from collected Special Tax; (4) pay for costs of issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax consultant fees, printing, fiscal agent fees, and reasonable Developer legal and financial consultant costs; (5) pay for the costs of forming the Community Facilities District; and (6) pay for the actual costs of the Improvements. The Community Facilities District shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution or Fiscal Agent Agreement (hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or improvement fund (herein, the “Improvement Fund”) to be held by the fiscal agent (“Fiscal Agent”) into which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (5) in the second preceding sentence. The Indenture shall also establish separate accounts of the Improvement Fund designated the “City Fee Facility Improvements Account,” and any Miscellaneous Improvement Account(s) for the Miscellaneous Improvements described in Exhibit “C,” into which shall be deposited such portions of the Improvement Fund as agreed by the Parties and directed by the City in writing at or subsequent to the closing of the sale of the Bonds consistent with the following priorities:
(a) An amount sufficient to fund the reasonable, current estimated cost of the City Fee Facility Improvements anticipated to be funded out of the Bonds being issued shall be deposited in the City Fee Facility Improvements Account (any Special Taxes levied in the CFD and collected by the CFD remaining after the payment of administrative expenses of the CFD and the reimbursement of the Developer for CFD formation costs pursuant to Section 1 hereof shall be deposited into the City Fee Facility Improvements Account at the time of Bond issuance, unless otherwise directed in writing by the Developer); and
(b) If applicable, an amount to be agreed upon between Developer and the CFD prior to the issuance of Bonds sufficient to fund the reasonable, current estimated cost of the Miscellaneous Improvements described in Exhibit “C” hereto, anticipated to be funded out of the Bonds being issued shall be deposited, or later transferred, to the applicable Miscellaneous Improvement Account(s).

Interest earned on moneys deposited in each of the City Fee Facility Improvements Account and the Miscellaneous Improvement Account(s) shall remain in such accounts until such time as all of the Improvements have been funded. Additionally, the Developer may direct the CFD to transfer excess moneys in any of the City Fee Facility Improvements Account or the Miscellaneous Improvement Account(s) to another Account. The Indenture shall provide that amounts remaining in the Improvement Fund after funding all proposed Improvements (such completion of funding to be Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 76
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6 agreed by the City and the Developer) shall be deposited in the special tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of maturity.

3. Allocation of Special Taxes. Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body of the Community Facilities District, may levy Special Taxes on all parcels classified as Developed Property pursuant to the Rate and Method. Such Special Taxes collected by the City shall first be applied to fund annual administrative expenses of the Community Facilities District and then to fund Improvements in the same manner as the proceeds of Bonds as set forth herein. Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in documents pursuant to which the Bonds were issued. Following the issuance of the last series of Bonds, the City shall have no obligation to levy Special Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds.

4. Notice of Special Tax. Developer shall provide written notice to all potential initial purchasers of lots advising of the special tax obligation applicable to the Developer Property in the form required by Section 53341.5 of the Government Code.

5. City Fee Facility Improvements. The Developer may be required pursuant to the conditions of development or the fee ordinance to pay certain City fees (the “City Fees”) relating to the City Fee Facility Improvements prior to the availability of proceeds of the Bonds to pay for such City Fee Facility Improvements. In the event such City Fees are paid prior to the availability of Bond proceeds, the amounts paid to the City shall be deemed to be deposits (each a “Deposit”) that are subject to refund by the City to the Developer in accordance with this Agreement. The City shall place each Deposit in a capital facilities account(s). If the Developer has made any Deposits to the City, then following deposit of Bond proceeds in the City Fee Facility Improvements Account, the City shall return to the Developer, from the capital account in which the Deposits were deposited the Deposits not previously returned, without interest or other earnings thereon. The City shall be so obligated to return such Deposits only to the extent that an equivalent amount of the Deposits to be returned is deposited in the City Fee Facility Improvements Account from Bond proceeds or Special Tax collections prior to the issuance of Bonds.

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

6. Miscellaneous Improvements. Improvements unrelated to the City Fee Facility Improvements are described in Exhibit “C” attached hereto. The amounts deposited in the applicable Miscellaneous Improvement Account(s), if any, will be disbursed for the acquisition or construction of Miscellaneous Improvements in accordance with the provisions in the applicable Joint Community Facilities Agreement. Any amounts in the applicable Miscellaneous Improvement Account(s) shall be disbursed at the written direction of the City upon Developer’s submittal of a payment request which will be based upon applicable entity’s payment request form as provided for in the applicable Joint Community Facilities Agreement. Upon receipt of such payment request, the City shall submit a written requisition for payment of the requested amount to the Fiscal Agent for the Bonds, who shall directly pay the amount requested to the applicable entity.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 77
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7 7. Independent Contractor. In performing this Agreement, Developer is an independent contractor and not the agent of the City. The City shall not have any responsibility for payment to any contractor or supplier of Developer. It is not intended by the Parties that this Agreement create a partnership or joint venture among them and this Agreement shall not otherwise be construed.

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

9. Conflict With Other Agreements. Except as specifically provided herein, nothing contained herein shall be construed as releasing Developer from any condition of development or requirement imposed by any other agreement with City. In the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by City.

10. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either Party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid. Any notice to the Community Facilities District or the City shall be addressed to City of Menifee, 29844 Haun Road, Menifee, CA 92530, Attention:

Assistant City Manager. Any notice to Developer shall be addressed to Century Communities of California, LLC, 4695 MacArthur Court, 300, Newport Beach, CA 92660, Attention: Brian Taylor.

Each Party may change its address for delivery of notice by delivering written notice of such change of address to the other Party hereto.

11. No Gift or Waiver. The Developer and the City acknowledge that:
(a) Prior to the availability of funds from the proceeds of Bonds, the Developer or its predecessor may have been or may be required to deposit funds to assure payment of applicable City Fees of the City.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 78
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8 (b) The Developer or its predecessor has deposited or will be depositing such funds with the expectation that the Developer will be reimbursed for these Deposits to the extent and in the manner set forth in this Agreement.
(c) The reimbursement of such Deposits pursuant to Section 8 of this Agreement may occur from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds become available.
(d) The Developer’s deposit of such funds to the City before the availability of funds to reimburse the Developer is not, and shall not be deemed, a gift or a waiver of the Developer’s right to reimbursement of such Deposits pursuant to this Agreement.

12. General Provisions.
(a) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the City and the Developer and their respective heirs, executors, legal representatives, successors, and authorized assigns.
(b) Amendment. This Agreement may be amended at any time but only in writing signed by each Party hereto.
(c) Entire Agreement. This Agreement, and the agreements referenced herein, contains the entire understanding and agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement. There are no oral or written representations, understanding, undertakings or agreements which are not contained or expressly referred to herein, and any such representations, understandings or agreements are superseded by this Agreement. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter. This Agreement shall be binding upon, and enforceable by and against the Community Facilities District upon the establishment of the Community Facilities District.
(d) Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
(e) Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
(f) Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter. (g) No Third Party Beneficiaries. Except as provided explicitly in this Agreement, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 79
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9 Community Facilities District, the Developer, and the Security Provider (and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(h) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. (i) Assignment. Developer may assign all or any of its rights pursuant to this Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City and Developer, in a form reasonably acceptable to Developer and the City, whereby such rights assigned are specified and such purchaser agrees, except as may be otherwise specifically provided therein, to assume the obligations of Developer pursuant to this Agreement and to be bound thereby. A company that acquires all of the assets of the Developer, including ownership of the Developer itself, shall be deemed a successor and shall not require an assignment or assumption agreement to be bound by, and enjoy the benefits of, this Agreement. (j) 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. (k) Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City and Developer and shall be deemed for all purposes to have been jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Agreement. (l) Termination. The provisions of this Agreement related to the financing of the Improvements shall terminate and be of no further force or effect if the first series of Bonds for the CFD are not sold within ten years from the date of this Agreement unless extended by agreement of all the Parties. If the City is unable to sell the first series of Bonds for the CFD after diligent, commercially reasonable efforts to do so, this Agreement shall terminate and be of no further force and effect; provided, however, in such event, any collected Special Taxes remaining after the payment of administrative expenses of the CFD and reimbursement to the Developer of CFD formation costs shall be used to pay for Improvements in accordance with this Agreement and Developer shall receive a credit against City Fees otherwise payable to City in the amount so used to pay for City Fee Facility Improvements.
(m) Attorneys’ Fees. In the event of any action or proceeding, including an arbitration or a reference pursuant to Section 638 et seq., of the Code of Civil Procedure brought by any Party against any other under this Agreement, the prevailing Party shall be entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation, or advice in such action or proceeding. In addition to the foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement. (n) Venue and Forum. Any action at law or in equity arising under this Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 80
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10 State of California, and the Parties waive all provisions of law providing for the filing removal or change of venue to any other Court.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year written below.

DATED: __________________, 2022
CITY OF MENIFEE, a political subdivision of
the State of California
By:

Armando G. Villa, City Manager
ATTEST:

By:

Stephanie Roseen, Acting City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY FOR THE CITY OF

MENIFEE
By:

Jeffrey T. Melching, City Attorney

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
A Delaware limited liability company
By:

Name:

Title:

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 81
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LIST OF EXHIBITS

EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY

EXHIBIT B - DESCRIPTION OF COST ESTIMATES

EXHIBIT C - MISCELLANEOUS IMPROVEMENTS

EXHIBIT D - DISBURSEMENT REQUEST FORM
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 82
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A-1

EXHIBIT A

DESCRIPTION OF DEVELOPER PROPERTY
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 83
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B-1

EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS (1)

CITY FEE FACILITY IMPROVEMENTS
Estimated Cost of the City Fee Facility Improvements
Description Estimated Cost
Law Enforcement $ 29,106
Fire Facilities 77,364
Circulation 588,420
General Government 128,646
Public Use Facilities 19,404
Quimby 1,094,814
Parks – Improvements 83,286
City Projects 404,208
Total City Fees Facility Improvements $ 2,425,248
(1) Amounts are estimates and subject to change.

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 84
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C-1

EXHIBIT C

DESCRIPTION OF THE MISCELLANEOUS IMPROVEMENT
Romoland School District Improvements included in the Romoland School District’s development fee programs used to finance Romoland School District Improvements, in approximately the following amount:

Estimated Cost of the Romoland School District Improvements Description Estimated Cost
Romoland School District Fees $1,462,980
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 85
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D-1

EXHIBIT D
CFD NO. 2022-2 (MCLAUGHLIN VILLAGE) OF THE CITY OF MENIFEE

DISBURSEMENT REQUEST FORM

1. Community Facilities District No. 2022-2 (McLaughlin Village) of City of Menifee (the “CFD”) is hereby requested to pay from the ________________________ Account, or any applicable account or sub-account thereof, established by the CFD in connection with its 20__ Special Tax Bonds (the “Bonds”) to City of Menifee (the “City”) as payee, the sum set forth below:
$_____________________ (the Requested Amount”)

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

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

4. The City, as payee, is hereby directing payment of the Requested Amount be payable to Century Communities of California, LLC, a Delaware limited liability company (the “Developer”), pursuant to the wiring instructions attached hereto.

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

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

Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 86
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D-2
Dated: DEVELOPER:

CENTURY COMMUNITIES OF

CALIFORNIA, LLC,
a Delaware limited liability company
By:

Name:

Title:

Dated: CITY OF MENIFEE
By:

Its:
[ATTACH WIRING INSTRUCTIONS]
Item Title: 11.8
Ordinance Introduction and Formation of Community Facilities District No. 2022-2, McLaughlin Village Item Page Number: 87
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CITY OF MENIFEE
SUBJECT: Ordinance Introduction and Formation of Community Facilities District No. 2022-3, Legado
MEETING DATE: September 21, 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
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RECOMMENDED ACTION

1. Adopt a resolution establishing Community Facilities District (CFD) No. 2022-3, Legado, located to the northwest of Antelope Boulevard and Chambers Avenue and south of Rouse Road; and

2. Adopt a resolution determining the necessity 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 a total of $85,000,000) for CFD No. 2022-3, Legado; and

3. Adopt a resolution certifying the election results for CFD No. 2022-3, Legado; and

4. Introduce an ordinance authorizing the levy of special taxes within CFD No. 2022-3, Legado; and

5. Approve and authorize the City Manager to execute an acquisition, construction, and funding agreement with BLC Fleming, LLC (BLC); and

6. Approve and authorize the City Manager to execute a joint community facilities agreement with Eastern Municipal Water District and BLC, LLC.

DISCUSSION
The Finance Committee reviewed the proposed CFD No. 2022-3 and recommended submittal to the City Council for approval at the August 3, 2022 City Council meeting.

On August 3, 2022, the City Council adopted Resolution No. 22-1187 (the “Resolution of Intention”), declaring its intent to commence the formation of CFD No. 2022-3 and the Item Title: 11.9
Ordinance Introduction and Formation of Community Facilities District No. 2022-3, Legado Item Page Number: 1
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Formation of Community Facilities District No. 2022-2, Legado September 21, 2022

Page 2 of 3 ends

Menifee City CouncilSeptember 21, 2022

Menifee City Council
September 21, 2022