Agenda packet — Menifee City Council, November 5, 2025 (part 2 of 5)

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implement their program with the budget change, and once the City had determined the number of agencies willing to proceed with their program, City staff would proportionately increase or decrease all agencies' grant awards based on the final funding amount.

Additional Funding Received
On September 10, 2025, the City received the official FY 2025 HUD’s CDBG program agreement allocation. The City of Menifee was awarded an additional $70,907, bringing the total allocation to $630,907.

Due to the additional funding, MCAC voted to fully fund Habitat for Humanity’s application, covering 100% of the requested amount instead of the initially planned 50%, as they were the only organization not receiving their full request. In response to the current waiting list for the Minor Home Rehabilitation Grant Program, extra funds have been allocated to help decrease the number of individuals awaiting assistance. Additionally, a $14,000 increase was added to the Kay Ceniceros project for labor compliance.

During the FY 2024/2025 CDBG funding cycle, MCAC evaluated all agency applications using HUD’s required criteria: need, benefit, readiness, past performance, and alignment with City objectives. In addition, each MCAC member recommended allocation amounts for each agency, with a minimum funding threshold of $10,000 to qualify for award consideration.

Three agencies, Temecula Valley Assistance League (now Thrifting and Gifting) ($8,500), Neighborhood Healthcare ($3,625), and Voices for Children ($5,000), did not meet the minimum average funding threshold of $10,000 and therefore were disqualified from receiving funding.

TABLE 1 - PROPOSED AMENDED FY 2025/2026 CDBG PROGRAM ALLOCATION Description
Account
Number
May 7, 2025
Approved
Amount
Additional
Funds
Allocated
Amended
Amount
Planning & Administration (20% Cap)
Administration
Fair Housing
2481-CDD-
CDBG-412-
Various
(Personnel)
$112,000
$89,000
$23,000
$181
$181
N/A
$112,181
$89,181
$23,000
Public Facilities/Infrastructure Projects
Kay Ceniceros’ Roof
Minor Home Repair Program
Activity Delivery Costs
2481-CDD-
CDBG-412-
658014-
$364,000
$100,000
$224,000
$40,000
$60,090
$14,000
$26,090
$20,000
$424,090
$114,000
$250,090
$60,000
Public Services (15% Maximum Cap)
Boys & Girls Club of Menifee Valley
Family Service Association (FSA)
Habitat for Humanity
Hospice of the Valley
Menifee Valley Community Cupboard
SAFE Family Justice Centers
2481-CDD-
CDBG-412-
658044-
$84,000
$10,000
$20,000
$10,000
$13,500
$20,000
$10,500
$10,636
N/A
N/A
$10,000
N/A
$636
N/A
$94,636
$10,000
$20,000
$20,000
$13,500
$20,636
$10,500
Grand Total $560,000 $70,907 $630,907
Item Title: 10.6
Fiscal Year 2025/2026 Community Development Block Grant Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
Page
147 of 1040

City of Menifee Staff Report
CDBG BAR PY 2025/2026
November 5, 2025

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STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

FISCAL IMPACT
The fiscal impact from acceptance of the CDBG allocation will result in an increase of $70,907 in FY 2025/2026 grant revenue (2481-441000) and an increase in expenditures appropriation to the accounts listed within Table 1 above.

There is no fiscal impact to the General Fund from the additional FY 2025/2026 allocation included above. All expenditures related to CDBG adopted and approved project and activities will come from the complete CDBG allocation to the City of Menifee.

ATTACHMENTS

1. Budget Amendment Resolution
Item Title: 10.6
Fiscal Year 2025/2026 Community Development Block Grant Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
Page
148 of 1040

RESOLUTION NO. 25-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2025/26 OPERATING BUDGET
WHEREAS, the City of Menifee, California, adopted a budget for Fiscal Year 2025/26 and Fiscal Year 2026/27 with Resolution 25-1596 on June 18th, 2025; and WHEREAS, from time to time the City of Menifee receives unanticipated revenues, experiences unanticipated expenditures, and/or identifies alternative funding sources; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the FY 2025/26 budget as follows:

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND 2481 EXPENDITURE ADJUSTMENT – CDBG FUND 2481

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL: $0.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025 CDBG Revised Program Allocation
2481-27-XNC-XNCL-
000-00000-441000- $70,907.00
TOTAL: $70,907.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
CDBG Revised Program Allocation -
Planning & Administration
2481-52-CDD-CDBG-
412-00000-650100- $14,181.00
November 5,
2025
CDBG Revised Program Allocation -
Minor Home Repair Program
2481-52-CDD-CDBG-
412-00000-658014- $46,090.00
November 5,
2025
CDBG Revised Program Allocation –
Public Services
2481-52-CDD-CDBG-
412-00000-658044- $10,636.00
Total $70,907.00
Item Title: 10.6
Fiscal Year 2025/2026 Community Development Block Grant Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
149 of 1040

Amending the Fiscal Year 2025/26 CDBG Fund Budget
FY 2025/26 CDBG Program Allocation Revision
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NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the CDBG Fund 2481 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

FUND SUMMARY – CDBG FUND 2481
PASSED, APPROVED AND ADOPTED this 5th day of November, 2025. _____________________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $560,000.00 $0.00 $70,907.00 $630,907.00
Expenditures $560,000.00 $0.00 $70,907.00 $630,907.00
Item Title: 10.6
Fiscal Year 2025/2026 Community Development Block Grant Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
150 of 1040

CITY OF MENIFEE
SUBJECT: Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Austin Mills, Assistant Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the California Department of Transportation’s (Caltrans) Highway Safety Improvements Program (HSIP) Cycle 12 grant funds in the amount of $115,380 for the Citywide Guardrail Improvements Project, Capital Improvement Program (CIP) Project No. 26-02; and

2. Approve and authorize the City Manager to execute a Program Supplemental Agreement with Caltrans for the project plans, specifications and estimates phase of the Project; and

3. Adopt a resolution establishing the City’s eligibility to receive grant funding from Caltrans and authorize the City Manager to execute any grant-related documents to receive the Cycle 12 HSIP Grant funds; and

4. Adopt two budget amendment resolutions appropriating $115,380 in corresponding revenues within the Grant Fund 2301 and expenditures within the Capital Projects Fund 4320 to the Project account.

DISCUSSION
Caltrans administers the HSIP Grant (Grant), which provides funding to jurisdictions in support of projects that significantly reduce serious injuries and fatalities on public roads. Funding for this competitive grant is derived from various federal and state funds, including the State Highway Account Fund under Senate Bill 137.

The Citywide Guardrail Improvements Project, CIP No. 26-02 (Project) proposes to upgrade existing guardrails and end treatments for various locations throughout the City. Utilizing crash data from the Transportation Injury Mapping System (TIMS), staff identified guardrails along the corridors with the largest number of crashes and used these results in conjunction with locations Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
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City of Menifee Staff Report
CIP 26-02 HSIP 12 Grant
November 5, 2025

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prioritized by the City’s Public Works Department field staff to determine the locations of highest need. As a recommended countermeasure within the HSIP to address the growing population, the proposed Project would enhance traffic safety for drivers, pedestrians, and bicyclists alike.

The estimated total Project cost would be just over $1.1 million.

In September 2024, staff submitted an application in response to the HSIP Cycle 12 Call for Projects. The application requested funding support in the amount of $999,720 for the Project. In February 2025, the City was notified that the Project had been approved for funding in the entire amount requested. However, Caltrans allocates grant awards by phase and the current grant funding in the amount of $115,380 would support the Plans, Specifications and Estimates (PS&E) phase and would require the City to provide a 10% local match, as outlined in Table 1 below. An additional allocation request to support the construction phase would be submitted to Caltrans as the Project progresses and Staff would return to City Council at a future meeting for consideration to approve future PSAs and/or the appropriation of additional grant funds. The City must also adopt a resolution to display its eligibility to receive grant funding through the HSIP Cycle 12 program. Only one adopted resolution is required for all projects funded through Cycle 12 of the program.

TABLE 1 – PROJECT FUNDING ALLOCATION BY PHASE
Project Phase Anticipated FY Grant Fund Allocation City Match Total by Phase PS&E 25/26 $115,380 $12,820 $128,200
Construction 26/27 $884,340 $98,260 $982,600
TOTAL $999,720 $111,080 $1,110,800
The amount of the proposed PSA exceeds the City Manager’s signing authority. Pursuant to Resolution No. 24-1569 and Menifee Municipal Code §3.12.060, any contract amount that exceeds the City Manager’s signing authority shall be approved by the City Council.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact of the proposed PSA is for the total amount not-to-exceed $128,200.

Acceptance of the proposed HSIP Cycle 12 grant funds to the Project budget would support the PSA with Caltrans. If approved, the corresponding revenues would be appropriated to the Project budget through a budget amendment resolution (BAR) within the Grant Fund (2301-441002) in the amount of $115,380 and an additional BAR for expenditures within the Capital Projects Fund (4320-PWD-CIPS-902-17049-690050), as summarized in Table 2 on the following page.

Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
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City of Menifee Staff Report
CIP 26-02 HSIP 12 Grant
November 5, 2025

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Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
Page
153 of 1040

City of Menifee Staff Report
CIP 26-02 HSIP 12 Grant
November 5, 2025

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TABLE 2 – PROPOSED PROJECT BUDGET
Fund Account Number Account Appropriation
of Revenue
Appropriation
of Expenditures
Grant Revenue – Grant Fund 441002 $115,380
Grant Transfer Out 904320 $115,380
Capital Projects Transfer In 802301 $115,380
Capital Projects Expenditure – CIP Budget 690050 $115,380 The BARs would also include a transfer of the funds from the Grant Fund to the Capital Projects Fund. Per Resolution No. 25-1593 the Chief Financial Officer and/or designee is hereby authorized to process corresponding transfers (transfer appropriations) of all approved CIP Program expenditure appropriations, including Fiscal Year (FY) 2025/2026 and 2026/2027, and prior years’ carryover appropriations to Capital Projects Fund (Fund 4320) for purposes of consolidating CIP program expenditures under one fund.

If approved, the $115,380 appropriated through the proposed BARs to the Grant Fund would supplement the existing Project budget that is available in FY 2025/2026 CIP budget within the Capital Projects Fund, as summarized in Table 3 below.

TABLE 3 – FINAL PROPOSED PROJECT BUDGET
Fund Project Account String Available Budget Anticipated Cost Grant CIP26-02.2301.DES.CAE $115,380 $115,380
Measure DD CIP26-02.1105.DES.CAE $12,820 $12,820
TOTAL $128,200 $128,200
The fiscal impact for the acceptance of the HSIP Cycle 12 Grant Funding for future Project phases would be $982,600 in FY 2026/2027. Upon Caltrans authorization to proceed with the construction phase, staff would return to City Council to execute the PSA and would request appropriation of the remaining grant funds at that time.

ATTACHMENTS

1. Project Location Map

2. Grant Summary Report

3. PSA – PS&E Phase

4. Resolution

5. BAR – Fund 2301

6. BAR – Fund 4320
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
154 of 1040

Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
155 of 1040

CITY OF MENIFEE
F
iscal Year of Grant Award:_____________________________ Date City Council Approved :_____________________________ Grant Name:__________________________________________ Granting Agency:______________________________ __________ City Department:______________________________________ City Grant Administrator:________________________________ Grant Funding Period:__________________________________ Grant Type: Fed State Local Other Grant Purpose/City Program:

F
ederal Grant: If Pass-through Grant:

Federal Awarding Agency __________________________ Pass-through Agency_____________________________ Federal CFDA No.______________________________ Grant ID Number_____________________ Amount Awarded:____________________ City Matching Funds:____________________ Funding Method:_____________________ City Expenditure Account(s):_________________________________________________________________________________________ ____________________________________________________________________________________________________________________ City Revenue Account:_______________________________________________________________________________________________ R
eporting Requirements:

D
oes the funding agency require a compliance audit? ______________ I
f yes, what kind of reporting:_________________________________________________________________________________ D
oes the agency require a copy of the Single Audit report? ______________ C
an grant funds be carried over to other fiscal years? ______________ If yes, which years?_________________________ I
s allocated interest a grant requirement?_______________ This report is completed for each approved grant and forwarded along with the approved council agenda staff report to the Finance Department.

CITY OF MENIFEE

GRANT SUMMARY REPORT (GSR)

FINANCE DEPARTMENT
2025/2026
11/5/25
Highway Safety Improvement Program (HSIP)
Cycle 12
Caltrans
Public Works-CIP
Jenny McConville
8/29/2025 to 8/29/2028
Program No. 26-02 Citywide Guardrail Improvements-
Upgrade and install guardrails at key locations Citywide. Grant is allocated by phase as follows:

PSE: $115,380 HSIP Funds, $12,820 Local Funds (QOL)
CON: $884,340 HSIP Funds, $98,260 Local Funds (QOL)
$999,720
$111,080 (Measure DD)
Reimbursement
4320-55-PWD-CIPS-902-17049-690050, 4320-55-PWD-CIPS-902-17049-652800, 4320-55-PWD-CIPS-902-17049-690000, 4320-55-PWD-CIPS-902-17049-690010 2301-28-XNC-XNCL-000-17049-441002
Yes. Additionally, invoices must be submitted every six months for the project to remain active.

No
No
Yes
2028
No
✔
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 6

Menifee Mayor and City Council
November 5, 2025
Page
156 of 1040

00000A849
FOR STATE FUNDED PROJECTS NO 08-5483S21
0826000018
August 29, 2025
08-RIV-0-MNFE
HSIPSL-5483(016)
5483
This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 08-5483S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 12/14/2021 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

Various Locations Throughout the City of Menifee
Guardrail 0.0(MILES)
State FundsEstimated Cost Matching Funds

CITY OF MENIFEE
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$128,200.00 $12,820.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
$115,380.00
$115,380.00STATE

Page 1 of 3 ends

09/08/2025
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 7

Menifee Mayor and City Council
November 5, 2025
Page
157 of 1040

SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(016)

1. A. This PROJECT has received STATE funds from Highway Safety Improvement Program (HSIP). The ADMINISTERING AGENCY agrees to administer the PROJECT in accordance with the Highway Safety Improvement Program (HSIP) Guidelines, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.

B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).

A phase-specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the phase identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per phase. Unless otherwise determined, the effective date of the phase-specific allocation will constitute the start of reimbursable expenditures for the phase. The STATE funds available for reimbursement will be limited to the amount allocated by the STATE for the phase.

C. At the time of the first fund allocation approval for the Project, this PROGRAM SUPPLEMENT, a STATE-approved Allocation Letter and STATE Finance Letter are prepared to allow reimbursement of eligible PROJECT expenditures for the phase allocated.

D. STATE and ADMINISTERING AGENCY agree that any additional fund allocations made after the execution of this PROGRAM SUPPLEMENT, for the phase that has been authorized in the first fund allocation approval or for a new phase, will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and a STATE Finance Letter and are subject to the terms and conditions thereof.

E. This PROJECT is subject to the delivery requirements enacted by the HSIP guidelines. The delivery requirements may be accessed at: https://dot.ca.gov/programs/local-assistance/fed- and-state-programs/highway-safety-improvement-program/delivery-requirements-status- approved-projects.

F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
2Page of 3Program Supplement 08--548-A849- SERIAL
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 8

Menifee Mayor and City Council
November 5, 2025
Page
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SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(016)
payment.

H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM provisions.

I. ADMINISTERING AGENCY agrees to comply with the requirements in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (applicable to Federal and State Funded Projects).

J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to provide the STATE, upon request, with the information related to the PROJECT for the purpose of project evaluation or other purposes.

K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement. 3Page of 3Program Supplement 08--548-A849- SERIAL
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 9

Menifee Mayor and City Council
November 5, 2025
Page
159 of 1040

1 RESOLUTION NO. 25-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, ESTABLISHING THE CITY’S ELIGIBILITY TO RECEIVE GRANT FUNDING FROM THE

CALIFORNIA DEPARTMENT OF TRANSPORTATION AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS RELATED TO THE CYCLE 12 HIGHWAY

SAFETY IMPROVEMENT PROGRAM GRANT
WHEREAS, The City Council of the City of Menifee is eligible to receive Federal and/or State funding for certain Transportation Projects, through the California Department of Transportation (Caltrans) and the Federal Government; and
WHEREAS, Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements and/or Fund Transfer Agreements (“Caltrans Agreements”) must be executed with Caltrans before such funds could be claimed; and
WHEREAS, the City Council now wishes to delegate authorization to the City Manager to execute all Master Agreements, Program Supplemental Agreements, Fund Exchange Agreements, Fund Transfer Agreements, and any amendments thereto, with Caltrans.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:
authorizes the City Manager to execute all agreement documents, and any amendments thereto, with Caltrans.

PASSED, APPROVED AND ADOPTED this 5th day of November 2025. ___________________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 10

Menifee Mayor and City Council
November 5, 2025
Page
160 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – GRANT FUND 2301
EXPENDITURE ADJUSTMENT – GRANT FUND 2301

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17049-
904320-
4320-57-PWD-CIPS-902-17049-
802301-
$115,380.00
TOTAL: $115,380.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Guardrail for
CIP26-02
2301-28-XNC-XNCL-
000-17049-441002- $115,380.00
TOTAL: $115,380.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Guardrail for
CIP26-02
2301-57-PWD-CIPS-
902-17049-904320- $115,380.00
Total $115,380.00
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 11

Menifee Mayor and City Council
November 5, 2025
Page
161 of 1040

Amending the Fiscal Year 2025/26 Grant Fund Budget
Highway Safety Improvements Program (HSIP) Cycle 12 Grant Guardrail Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Grant Fund 2301 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

FUND SUMMARY – GRANT FUND 2301
PASSED, APPROVED AND ADOPTED this 5th day of November, 2025. _____________________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $0.00 $296,767.54 $115,380.00 $412,147.54
Expenditures $0.00 $916,346.69 $115,380.00 $1,031,726.69 Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 12

Menifee Mayor and City Council
November 5, 2025
Page
162 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – CAPITAL PROJECTS FUND 4320
EXPENDITURE ADJUSTMENT – CAPITAL PROJECTS FUND 4320

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17049-
904320-
4320-57-PWD-CIPS-902-17049-
802301-
$115,380.00
TOTAL: $115,380.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Guardrail for
CIP26-02
4320-57-PWD-CIPS-
902-17049-802301- $115,380.00
TOTAL: $115,380.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Guardrail for
CIP26-02
4320-55-PWD-CIPS-
902-17049-690050- $115,380.00
TOTAL: $115,380.00
Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 13

Menifee Mayor and City Council
November 5, 2025
Page
163 of 1040

Amending the Fiscal Year 2025/26 Capital Projects Fund Budget Highway Safety Improvements Program (HSIP) Cycle 12 Grant Guardrail Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Capital Projects Fund 4320 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

FUND SUMMARY – CAPITAL PROJECTS FUND 4320
PASSED, APPROVED AND ADOPTED this 5th day of November, 2025. _____________________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $4,047,705.00 $2,142,396.00 $115,380.00 $6,305,481.00 Expenditures $4,963,851.00 $49,005,831.36 $115,380.00 $54,085,062.36 Item Title: 10.7
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Guardrail Improvements Project Item Page Number: 14

Menifee Mayor and City Council
November 5, 2025
Page
164 of 1040

CITY OF MENIFEE
SUBJECT: Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Austin Mills, Assistant Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the California Department of Transportation’s (Caltrans) Highway Safety Improvement Program (HSIP) Cycle 12 grant funds in the amount of $51,480 for the Edgeline Striping Improvements Project, Capital Improvement Program (CIP) Project No. 26-03; and

2. Approve and authorize the City Manager to execute a Program Supplemental Agreement with Caltrans for the project plans, specifications and estimates phase of the Project; and

3. Adopt two budget amendment resolutions appropriating $51,480 in corresponding revenues within the Grant Fund 2301 and expenditures within the Capital Projects Fund 4320 to the Project account.

DISCUSSION
Caltrans administers the HSIP Grant (Grant) which provides funding to jurisdictions in support of projects that significantly reduce serious injuries and fatalities on public roads. Funding for this competitive grant is derived from various federal and state funds such as the State Highway Account Fund under Senate Bill 137.

The Edgeline Striping Improvements Project, CIP No. 26-03 (Project) proposes to install upgraded edgeline striping along Haun Road from Scott Road to Holland Road, Garbani Road from Haun Road to Briggs Road, and Scott Road from Ascot Way to Sunset Avenue. The City utilized crash data from the Transportation Injury Mapping System (TIMS) to determine that implementing edgeline striping upgrades would be an effective way to improve safety by reducing lane departures and increasing the visibility of the edge of the roadway. As a recommended countermeasure within the HSIP to address the growing population, the proposed Project would enhance traffic safety for drivers, pedestrians, and bicyclists alike. The estimated total Project cost would be just under $390,000.

Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
165 of 1040

City of Menifee Staff Report
CIP 26-03 HSIP 12 Grant
November 5, 2025

Page 2 of 3 ends

2 9
5 6
In September 2024, staff submitted an application in response to the HSIP Cycle 12 Call for Projects. The application requested funding support in the amount of $347,220 for the Project. In February 2025, the City was notified that the Project was selected for funding for the entire amount requested. However, Caltrans allocates grant awards by phase and the current grant funding in the amount of $51,480 would support the Plans, Specifications and Estimates (PS&E) phase and would require the City to provide a 10% local match, as outlined in Table 1 below. An additional allocation request to support the construction phase would be submitted to Caltrans as the Project progresses and Staff would return to City Council at a future meeting for consideration to approve future PSAs and/or the appropriation of additional grant funds.

TABLE 1 – PROJECT FUNDING ALLOCATION BY PHASE
Project Phase Anticipated FY Grant Fund Allocation City Match Total by Phase PS&E 25/26 $51,480 $5,720 $57,200
Construction 26/27 $295,740 $32,860 $328,600
TOTAL $347,220 $38,580 $385,800
The amount of the proposed PSA exceeds the City Manager’s signing authority. Pursuant to Resolution No. 24-1569 and Menifee Municipal Code §3.12.060, any contract amount that exceeds the City Manager’s signing authority shall be approved by the City Council.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact of the proposed PSA is for the total amount not-to-exceed $57,200. Acceptance of the proposed HSIP Cycle 12 grant funds to the Project budget would support the PSA with Caltrans. If approved, the corresponding revenues would be appropriated to the Project budget through a budget amendment resolution (BAR) within the Grant Fund (2301-441002) in the amount of $51,480 and an additional BAR for expenditures within the Capital Projects Fund (4320-PWD-CIPS-902-17050-690050), as summarized in Table 2 below.

TABLE 2 – PROPOSED PROJECT BUDGET
Fund Account Number Account Appropriation
of Revenue
Appropriation
of Expenditures
Grant Revenue – Grant Fund 441002 $51,480
Grant Transfer Out 904320 $51,480
Capital Projects Transfer In 802301 $51,480
Capital Projects Expenditure – CIP Budget 690050 $51,480 The BARs would also include a transfer of the funds from the Grant Fund to the Capital Projects Fund. Per Resolution No. 25-1593 the Chief Financial Officer and/or designee is hereby authorized to process corresponding transfers (transfer appropriations) of all approved CIP Program expenditure appropriations, including Fiscal Yer (FY) 2025/2026 and 2026/2027, and Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
Page
166 of 1040

City of Menifee Staff Report
CIP 26-03 HSIP 12 Grant
November 5, 2025

Page 3 of 3 ends

2 9
5 6
prior years’ carryover appropriations to Capital Projects Fund (Fund 4320) for purposes of consolidating CIP program expenditures under one fund.

If approved, the $51,480 appropriated through the proposed BARs to the Grant Fund would supplement the existing Project budget that is available in the FY 2025/2026 CIP budget within the Capital Projects Fund, as summarized in Table 3 below.

TABLE 3 – FINAL PROPOSED PROJECT BUDGET
Fund Project Account String Available Budget Anticipated Cost Grant CIP26-03.2301.DES.CAE $51,480 $51,480
Measure DD CIP26-03.1105.DES.CAE $5,720 $5,720
TOTAL $57,200 $57,200
The fiscal impact for the acceptance of the HSIP Cycle 12 Grant Funding for future Project phases would be $328,600 in FY 2026/2027. Upon Caltrans authorization to proceed with the construction phase, staff would return to City Council to execute the PSA and would request appropriation of the remaining grant funds at that time.

ATTACHMENTS

1. Project Location Map

2. Grant Summary Report

3. PSA – PS&E Phase

4. BAR – Fund 2301

5. BAR – Fund 4320
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
Page
167 of 1040

Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
168 of 1040

F
ederal Grant: If Pass-through Grant:

CITY OF MENIFEE

GRANT SUMMARY REPORT (GSR)

FINANCE DEPARTMENT
2025/2026
11/5/25
Highway Safety Improvement Program (HSIP)
Cycle 12
Caltrans
Public Works-CIP
Jenny McConville
8/29/2025 to 8/29/2028
Project No. 26-03 Edgeline Striping Improvements-
Upgrade and install edgelines striping at key locations Citywide. Grant is allocated by phase as follows:

PSE: $51,480 HSIP Funds, $5,720 Local Funds (QOL)
CON: $295,740 HSIP Funds, $32,860 Local Funds (QOL)
$347,220
$38,580(Measure DD)
Reimbursement
4320-55-PWD-CIPS-902-17050-690050, 4320-55-PWD-CIPS-902-17050-652800, 4320-55-PWD-CIPS-902-17050-690000, 4320-55-PWD-CIPS-902-17050-690010 2301-28-XNC-XNCL-000-17050-441002
Yes. Additionally, invoices must be submitted every six months for the project to remain active.

No
No
Yes
2028
No
✔
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
169 of 1040

00000A850
FOR STATE FUNDED PROJECTS NO 08-5483S21
0826000019
September 05, 2025
08-RIV-0-MNFE
HSIPSL-5483(017)
5483
This Program Supplement, effective , hereby adopts and incorporates into the Administering Agency-State Agreement No. 08-5483S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 12/14/2021 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

Haun Road from Scott to Holland Rd; Garbani Road from Haun Road to Briggs Road; and Scott Road from Ascot Way to Sunset Avenue Striping 0.0(MILES)
State FundsEstimated Cost Matching Funds

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$57,200.00 $5,720.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
$51,480.00
$51,480.00STATE

Page 1 of 3 ends

09/08/2025
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 6

Menifee Mayor and City Council
November 5, 2025
Page
170 of 1040

SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(017)

B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).

G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
2Page of 3Program Supplement 08--548-A850- SERIAL
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 7

Menifee Mayor and City Council
November 5, 2025
Page
171 of 1040

SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(017)
payment.

K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement. 3Page of 3Program Supplement 08--548-A850- SERIAL
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 8

Menifee Mayor and City Council
November 5, 2025
Page
172 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – GRANT FUND 2301
EXPENDITURE ADJUSTMENT – GRANT FUND 2301

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17050-
904320-
4320-57-PWD-CIPS-902-17050-
802301-
$51,480.00
TOTAL: $51,480.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Edgeline Striping
for CIP26-03
2301-28-XNC-XNCL-
000-17050-441002- $51,480.00
TOTAL: $51,480.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Edgeline Striping
for CIP26-03
2301-57-PWD-CIPS-
902-17050-904320- $51,480.00
Total $51,480.00
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 9

Menifee Mayor and City Council
November 5, 2025
Page
173 of 1040

Amending the Fiscal Year 2025/26 Grant Fund Budget
Highway Safety Improvements Program (HSIP) Cycle 12 Grant Edgeline Striping Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Grant Fund 2301 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $0.00 $296,767.54 $51,480.00 $348,247.54
Expenditures $0.00 $916,346.69 $51,480.00 $967,826.69
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 10

Menifee Mayor and City Council
November 5, 2025
Page
174 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – CAPITAL PROJECTS FUND 4320
EXPENDITURE ADJUSTMENT – CAPITAL PROJECTS FUND 4320

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17050-
904320-
4320-57-PWD-CIPS-902-17050-
802301-
$51,480.00
TOTAL: $51,480.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Edgeline Striping
for CIP26-03
4320-57-PWD-CIPS-
902-17050-802301- $51,480.00
TOTAL: $51,480.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Edgeline Striping
for CIP26-03
4320-55-PWD-CIPS-
902-17050-690050- $51,480.00
TOTAL: $51,480.00
Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 11

Menifee Mayor and City Council
November 5, 2025
Page
175 of 1040

Amending the Fiscal Year 2025/26 Capital Projects Fund Budget Highway Safety Improvements Program (HSIP) Cycle 12 Grant Edgeline Striping Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Capital Projects Fund 4320 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $4,047,705.00 $2,142,396.00 $51,480.00 $6,241,581.00 Expenditures $4,963,851.00 $49,005,831.36 $51,480.00 $54,021,162.36 Item Title: 10.8
Highway Safety Improvement Program Cycle 12 Grant for the Edgeline Striping Improvements Project Item Page Number: 12

Menifee Mayor and City Council
November 5, 2025
Page
176 of 1040

CITY OF MENIFEE
SUBJECT: Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Diego Guillen, Senior Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the California Department of Transportation’s (Caltrans) Highway Safety Improvement Program (HSIP) Cycle 12 grant funds in the amount of $49,770 for the Citywide Pedestrian Crossing Improvements Project, Capital Improvement Program (CIP) Project No. 26-04; and

2. Approve and authorize the City Manager to execute a Program Supplemental Agreement with Caltrans for the project plans, specifications and estimates phase of the project; and

3. Adopt two budget amendment resolutions amending the Fiscal Year appropriating $49,770 in corresponding revenues within the Grant Fund 2301 and expenditures within the Capital Projects Fund 4320 to the Project account.

DISCUSSION
Caltrans administers the HSIP Grant (Grant), which provides funding to jurisdictions in support of projects that significantly reduce serious injuries and fatalities on public roads. Funding for this competitive grant is derived from various federal and state funds, such as the State Highway Account Fund under Senate Bill 137.

In 2022, the City of Menifee developed a Local Road Safety Plan (LRSP) which identified key crash factors and established five emphasis areas to guide future safety improvements aimed at reducing traffic-related injuries. The LRSP’s fourth emphasis area is vulnerable road users and focuses on pedestrian and bicyclist safety. The safety of vulnerable road users is a top priority in the City, as they have the highest potential for experiencing severe injury as a result of a crash.

The LRSP identifies installing or upgrading pedestrian crossings at uncontrolled locations as an effective strategy for improving safety within this emphasis area.

Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
177 of 1040

City of Menifee Staff Report
CIP 26-04 HSIP 12 Grant
November 5, 2025

Page 2 of 3 ends

2 9
5 7
The Citywide Pedestrian Crossing Improvements Project, CIP No. 26-04 (Project) proposes to install rectangular rapid flashing beacons (RRFB) at uncontrolled pedestrian crossings in alignment with the LRSP. Staff incorporated the prescribed strategy from the LRSP to determine the locations of highest need for the Project by first identifying all uncontrolled pedestrian crossings in the City and then prioritizing improvements at the crossings surrounding schools due to the high pedestrian volume. The locations selected for improvement through the Project would complete the City’s network of upgraded pedestrian crossings surrounding school zones. The estimated total Project cost would be just over $373,000.

In September 2024, staff submitted an application in response to the HSIP Cycle 12 Call for Projects. The application requested funding support in the amount of $335,700 for the Project. In February 2025, the City was notified that the Project was approved for funding in the entire amount requested. However, Caltrans allocates grant awards by phase and the current grant funding in the amount of $49,770 would support the Plans, Specifications and Estimates (PS&E) phase and would require the City to provide a 10% local match, as outlined in Table 1 below. An additional allocation request to support the construction phase would be submitted to Caltrans as the Project progresses and Staff would return to City Council at a future meeting for consideration to approve future PSAs and/or the appropriation of additional grant funds.

TABLE 1 – PROJECT FUNDING ALLOCATION BY PHASE
Project Phase Anticipated FY Grant Fund Allocation City Match Total by Phase PS&E 25/26 $49,770 $5,530 $55,300
Construction 26/27 $285,930 $31,770 $335,700
TOTAL $335,700 $37,300 $373,000
The amount of the proposed PSA exceeds the City Manager’s signing authority. Pursuant to Resolution No. 24-1569 and Menifee Municipal Code §3.12.060, any contract amount that exceeds the City Manager’s signing authority shall be approved by the City Council.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact of the proposed PSA is for a total amount not-to-exceed $49,770. Acceptance of the proposed HSIP Cycle 12 grant funds to the Project budget would support the PSA with Caltrans. If approved, the corresponding revenues would be appropriated to the Project budget through a Budget Amendment Resolution (BAR) within the Grant Fund (2301-441002) in the amount of $49,770 and an additional BAR for expenditures within the Capital Projects Fund (4320-PWD-CIPS-902-17051-690050), as summarized in Table 2 on the following page.

Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
Page
178 of 1040

City of Menifee Staff Report
CIP 26-04 HSIP 12 Grant
November 5, 2025

Page 2 of 3 ends

2 9
5 7
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
Page
179 of 1040

City of Menifee Staff Report
CIP 26-04 HSIP 12 Grant
November 5, 2025

Page 3 of 3 ends

2 9
5 7
TABLE 2 – PROPOSED PROJECT BUDGET
Fund Account Number Account Appropriation
of Revenue
Appropriation
of Expenditures
Grant Revenue – Grant Fund 441002 $49,770
Grant Transfer Out 904320 $49,770
Capital Projects Transfer In 802301 $49,770
Capital Projects Expenditure – CIP Budget 690050 $49,770 The BARs would also include a transfer of the funds from the Grant Fund to the Capital Projects Fund. Per Resolution No. 25-1593, the Chief Financial Officer and/or designee is hereby authorized to process corresponding transfers (transfer appropriations) of all approved CIP Program expenditure appropriations, including fiscal year (FY) 2025/2026 and 2026/2027, and prior years’ carryover appropriations to Capital Projects Fund (Fund 4320) for purposes of consolidating CIP program expenditures under one fund.

If approved, the $49,770 appropriated through the proposed BARs to the Grant Fund would supplement the existing Project budget that is available in the FY 2025/2026 CIP budget within the Capital Projects Fund, as summarized in Table 3 below.

TABLE 3 – FINAL PROPOSED PROJECT BUDGET
Fund Project Account String Available Budget Anticipated Cost Grant CIP26-03.2301.DES.CAE $49,770 $49,770
Measure DD CIP26-03.1105.DES.CAE $5,530 $5,530
TOTAL $55,300 $55,300
The fiscal impact for the acceptance of the HSIP Cycle 12 Grant Funding for future Project phases would be $285,930 in FY 2026/2027. Upon Caltrans authorization to proceed with the construction phase, staff would return to City Council to execute the PSA and would request appropriation of the remaining grant funds at that time.

ATTACHMENTS

1. Project Location Map

2. Grant Summary Report

3. PSA – PS&E Phase

4. BAR – Fund 2301

5. BAR – Fund 4320
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
180 of 1040

Map Symbology
Project Areas
Menifee City Boundary
0 0.75 1.5
Miles
Path: C:\Users\awilliams\AppData\Local\Temp\ArcGISProTemp2632\630abd9d-8e67-4f1e-bf8d-ffbfe027827d\Untitled.aprx Date: 10/9/2025 ¹
Pedestrian Crossing Enhancements (CIP 26-04)
Project Location Map
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
181 of 1040

F
ederal Grant: If Pass-through Grant:

CITY OF MENIFEE

GRANT SUMMARY REPORT (GSR)

FINANCE DEPARTMENT
2025/2026
11/5/25
Highway Safety Improvement Program (HSIP)
Cycle 12
Caltrans
Public Works-CIP
Jenny McConville
8/29/2025 to 8/29/2028
Project No. 26-04 Citywide Pedestrian Crossing Improvements- Upgrade and install high-visibility crosswalks at key locations Citywide. Grant is allocated by phase as follows:

PSE: $49,770 HSIP Funds, $5,530 Local Funds (QOL)
CON: $285,930 HSIP Funds, $31,770 Local Funds (QOL)
$335,700
$37,300 (Measure DD)
Reimbursement
4320-55-PWD-CIPS-902-17051-690050, 4320-55-PWD-CIPS-902-17051-652800, 4320-55-PWD-CIPS-902-17051-690000, 4320-55-PWD-CIPS-902-17051-690010 2301-28-XNC-XNCL-000-17051-441002
Yes. Additionally, invoices must be submitted every six months for the project to remain active.

No
No
Yes
2028
No
✔
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 6

Menifee Mayor and City Council
November 5, 2025
Page
182 of 1040

00000A869
FOR STATE FUNDED PROJECTS NO 08-5483S21
0826000020
September 26, 2025
08-RIV-0-MNFE
HSIPSL-5483(018)
5483
This Program Supplement, effective 08/22/2025, hereby adopts and incorporates into the Administering Agency-State Agreement No. 08-5483S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 12/14/2021 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

Various Unsignalized Pedestrian Crossing
Pavement Markings 0.0(MILES)
State FundsEstimated Cost Matching Funds

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$55,300.00 $5,530.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
$49,770.00
$49,770.00STATE

Page 1 of 3 ends

09/26/2025
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 7

Menifee Mayor and City Council
November 5, 2025
Page
183 of 1040

SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(018)

B. The STATE funds for this PROJECT may be provided under one or more phases, which are Preliminary Engineering (PE), Right-of-Way (R/W) and Construction (Con).

G. The ADMINISTERING AGENCY shall invoice STATE for PE, R/W and CON costs no later than 180 days after the end of expenditure the phase. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and
2Page of 3Program Supplement 08--548-A869- SERIAL
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 8

Menifee Mayor and City Council
November 5, 2025
Page
184 of 1040

SPECIAL COVENANTS OR REMARKS
08-RIV-0-MNFE
HSIPSL-5483(018)
payment.

K. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the State. Any changes to the approved PROJECT scope without the prior expressed approval of the State are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement. 3Page of 3Program Supplement 08--548-A869- SERIAL
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 9

Menifee Mayor and City Council
November 5, 2025
Page
185 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – GRANT FUND 2301
EXPENDITURE ADJUSTMENT – GRANT FUND 2301

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17051-
904320-
4320-57-PWD-CIPS-902-17051-
802301-
$49,770.00
TOTAL: $49,770.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Pedestrian for
CIP26-04
2301-28-XNC-XNCL-
000-17051-441002- $49,770.00
TOTAL: $49,770.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Pedestrian for
CIP26-04
2301-57-PWD-CIPS-
902-17051-904320- $49,770.00
Total $49,770.00
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 10

Menifee Mayor and City Council
November 5, 2025
Page
186 of 1040

Amending the Fiscal Year 2025/26 Grant Fund Budget
Highway Safety Improvements Program (HSIP) Cycle 12 Grant Pedestrian Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Grant Fund 2301 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $0.00 $296,767.54 $49,770.00 $346,537.54
Expenditures $0.00 $916,346.69 $49,770.00 $966,116.69
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 11

Menifee Mayor and City Council
November 5, 2025
Page
187 of 1040

RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

REVENUE ADJUSTMENT – CAPITAL PROJECTS FUND 4320
EXPENDITURE ADJUSTMENT – CAPITAL PROJECTS FUND 4320

RECORD TRANSFER OF FUNDS
FROM ACCOUNT # TO ACCOUNT # AMOUNT
2301-57-PWD-CIPS-902-17051-
904320-
4320-57-PWD-CIPS-902-17051-
802301-
$49,770.00
TOTAL: $49,770.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Pedestrian for
CIP26-04
4320-57-PWD-CIPS-
902-17051-802301- $49,770.00
TOTAL: $49,770.00
CITY

COUNCIL

MEETING

DESCRIPTION ACCOUNT NUMBER AMOUNT
November 5,
2025
Grant: HSIP Cycle 12 Pedestrian for
CIP26-04
4320-55-PWD-CIPS-
902-17051-690050- $49,770.00
TOTAL: $49,770.00
Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 12

Menifee Mayor and City Council
November 5, 2025
Page
188 of 1040

Amending the Fiscal Year 2025/26 Capital Projects Fund Budget Highway Safety Improvements Program (HSIP) Cycle 12 Grant Pedestrian Improvements 2 4
9 8
1 0
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby to determine and order as follows:

Section 1.The annual budget for the Capital Projects Fund 4320 for the City of Menifee for FY 2025/26 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

CATEGORY ADOPTED

BALANCE
PRIOR

ADJUSTMENTS

AMENDMENT
AMOUNT

AMENDED
TOTAL
Revenues $4,047,705.00 $2,142,396.00 $49,770.00 $6,239,871.00 Expenditures $4,963,851.00 $49,005,831.36 $49,770.00 $54,019,452.36 Item Title: 10.9
Highway Safety Improvement Program Cycle 12 Grant for the Citywide Pedestrian Crossing Improvements Project Item Page Number: 13

Menifee Mayor and City Council
November 5, 2025
Page
189 of 1040

CITY OF MENIFEE
SUBJECT: Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt resolution of intention to establish Community Facilities District No. 2025-5, Nautical Cove, located north of Holland Road and west of Briggs Road; and

2. Adopt a resolution of intention to incur bonded indebtedness for Community Facilities District No. 2025-5, Nautical Cove.

DISCUSSION
KB HOME Cal Management Services LLC, a Delaware limited liability company, (Developer), is proposing to develop a residential community of 233 homes on approximately 74 gross acres within the City. The property is located north of Holland Road and west of Briggs Road, as shown in the attached Location Map. The Developer has requested that the City form a Community Facilities District (CFD No. 2025-5) 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 $18 million. Any bonds issued by CFD No. 2025-5 would not be obligations of the City and would be secured solely by the Special Taxes levied on properties within CFD 2025-5.

The Developer has requested that the boundaries of CFD No. 2025-5 include the area described in Exhibit A of the Resolution of Intention to Establish CFD No. 2025-5 (Resolution of Intention) and that special taxes be levied within the boundaries of CFD No. 2025-5 in accordance with the Rate and Method of Apportionment (the “RMA”) as described in Exhibit C to the Resolution of Intention.

The Resolution of Intention includes approval of the proposed reimbursement agreement between the City of Menifee and the Developer. The reimbursement agreement outlines that the Developer Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
190 of 1040

City of Menifee Staff Report
Proposed Formation of CFD 2025-5, Nautical Cove
November 5, 2025

Page 2 of 3 ends

3 0
4 4
would advance funds to cover the City's costs associated with the formation of Community Facilities District No. 2025-5, Nautical Cove. If the District is formed and bonds are issued, the Developer would be reimbursed from bond proceeds (excluding a nonrefundable $5,000); otherwise, the City would reimburse the Developer any of the deposit that had not been spent on District formation costs.

This proposed CFD No. 2025-5 was presented to the Finance Committee in July 2025 and was recommended for submittal to the City Council for review.

The Resolution of Intention is the first step in the process to form CFD No. 2025-5. The attached resolutions declare the City’s intention to establish CFD No. 2025-5, the intention to incur bonded indebtedness by CFD No. 2025-5 and call for a public hearing. If the resolutions are approved, a public hearing on the matter would take place on December 17, 2025, and at that time the City Council would formally consider approving the formation of CFD No. 2025-5, and holding an election on the proposed special taxes and the incurring of bonded indebtedness within CFD No. 2025-5.

The Developer may request that the City enter into a joint community facilities agreement (JCFA) with the Developer and Eastern Municipal Water District (EMWD) relating to certain facilities proposed to be financed by CFD No. 2025-5 and owned and operated by EMWD. If the decision is made to finance facilities of EMWD, the JCFA will be entered into prior to the approval of the issuance of bonds pursuant to the Act.

The Developer is proposing that CFD No. 2025-5 include 233 residential units. The home sizes in CFD No. 2025-5 are planned to range from 1,539 to 3,119 square feet. The total effective tax rate is estimated at 2% of projected home prices, which is the allowable tax rate limit in the City’s Financing Goals and Policies.

Under the RMA, the estimated assigned annual tax rates range from $3,321 for home sizes less than 1,800 square feet to $4,636 for home sizes greater than 3,050 square feet. Such rates would escalate at 1.4% per year. For past CFDs, rates have escalated at 2%, but the water district recently changed its policy to state that it would only participate in JCFAs if there is no escalator on the portion of the bond proceeds that funds its facilities. The 1.4% annual escalation represents a blended rate that reflects a 2% escalation on the portion of bond proceeds funding City facilities and a 0% escalation on the portion funding EMWD facilities, in accordance with EMWD’s current JCFA participation policy.

The anticipated bond issuance amount based on estimated rates would be slightly more than $14 million, which would cover a reserve fund, financing costs, and generate approximately $12.4 million in net bond proceeds for facilities. The proposed facilities that may be funded with proceeds of the bonds are:
• $757,203 – City priority facilities, a 20% premium for project-specific priorities • $3,786,017 – City Development Impact and Quimby Fees
• $3,806,766 – Street improvements, utility undergrounding and traffic signal • $4,409,328 – Eastern Municipal Water District facilities The amount of the foregoing facilities costs that exceed available bond proceeds would be funded Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
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City of Menifee Staff Report
Proposed Formation of CFD 2025-5, Nautical Cove
November 5, 2025

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3 0
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by the Developer. In addition to the costs of the foregoing facilities, proceeds of the special tax may be expended to pay administrative costs.

STRATEGIC PLAN OBJECTIVE
Regular City Business

FISCAL IMPACT
The Developer made a deposit to pay for the costs of the formation proceedings, which may be reimbursed to the Developer in accordance with the reimbursement agreement to be entered into by the City with the Developer. CFD 2025-5 would annually levy special taxes on all of the taxable property within CFD 2025-5 in accordance with the RMA in order to pay for the costs of facilities, debt service on bonds and administration of CFD No. 2025-5. Any bonds issued by CFD No. 2025-5 would not be obligations of the City and would be secured solely by the Special Taxes levied in CFD 2025-5.

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention to Establish CFD 2025-5

3. Resolution of Intention to Incur Debt CFD 2025-5

4. Landowner Petition CFD 2025-5

5. Reimbursement Agreement 2025-5
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
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HOLLAND RDSOUTHSHORE DR

SHADOW RIDGE DR

MENIFEE
RD

FALL RIVER
L N

DUR HAM
DR
BRIGGS
RD

TRES LAGOS RD
^_

MENIFEE
RD

NEWPORT RD

ALD ERGATE DR
§¨¦215

HOLLAND RD
HAUN
RD

PALOMAR RD

MELMORE LN

WICKERD RD EUCALYPTUS
RD

MARINO DR
EVANS
RD

STERN DR
COMMUNITY FACILITIES DISTRICT NO. 2025-5
(NAUTICAL COVE)

PROJECT MAP
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
193 of 1040

4928-5485-2977v3/200299-0029
RESOLUTION NO. 2025-__

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-5 (NAUTICAL COVE)

OF THE CITY OF MENIFEE, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO

PAY THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND

TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Menifee (the “City”) received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory that is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Exhibit “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as “Community Facilities District No. 2025-5 (Nautical Cove) of the City of Menifee” (“Community Facilities District No. 2025-5” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Exhibit “B” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the “Incidental Expenses”); and WHEREAS, the City Council further intends to approve an estimate of the costs of the Facilities and the Incidental Expenses for Community Facilities District No. 2025-5; and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the Incidental Expenses through the formation of Community Facilities District No. 2025-5 and the issuance of bonded indebtedness in an amount not to exceed $18,000,000 with respect to the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2025-5; and
WHEREAS, the City desires to enter into a reimbursement agreement with KB HOME Cal Management Services LLC, a Delaware limited liability company (the “Developer”), the form of which is on file with the City Clerk (the “Reimbursement Agreement”), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; and WHEREAS, the District and the Developer propose to enter into a joint community facilities agreement (the “JCFA”) with Eastern Municipal Water District (the “Water District”) relating to certain facilities proposed to be financed by the District and owned and operated by the Water District, and the District expects to enter into the JCFA prior to the approval of the issuance of bonds pursuant to the Act.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee does hereby determine and order as follows:

Section 1. The above recitals are true and correct.

Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
194 of 1040

Resolution of Intention to Establish CFD No. 2025-5 (Nautical Cove) 2 4928-5485-2977v3/200299-0029
5 1
3 6
3 Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Exhibit “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-5 that is on file with the City Clerk. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-5 (Nautical Cove) of the City of Menifee.” Section 4.The Facilities proposed to be provided within Community Facilities District No. 2025-5 are public facilities as defined in the Act, which the City and the Water District, with respect to certain water and sewer facilities, are authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Incidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

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

Section 5.Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedures contained in the Act the Special Tax, secured by recordation of a continuing lien against all nonexempt real property in the District, sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the District, and any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments that 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 Exhibit “C” attached hereto, which Exhibit “C” is incorporated herein by this reference. Exhibit “C” allows each landowner within the District to estimate the maximum amount of the Special Tax that may be levied against each parcel. In the first year in which such Special Tax is levied, the levy shall include an amount sufficient to repay to the District all amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest thereon.

If the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount that shall be calculated and established not later than the date on which the parcel is first subject to Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 6

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November 5, 2025
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Resolution of Intention to Establish CFD No. 2025-5 (Nautical Cove) 3 4928-5485-2977v3/200299-0029
5 1
3 6
3 the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Exhibit “C” hereto, (ii) such Special Tax shall not be levied after fiscal year 2070/2071, as described in Exhibit “C” hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-5 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 Exhibit “C” to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within Community Facilities District No. 2025-5 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in Exhibit “C,” the City Council shall, on behalf of Community Facilities District No. 2025-5, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Exhibit “C,” to the extent necessary upon the remaining property within proposed Community Facilities District No. 2025-5 that 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 Exhibit “C” hereto.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-5, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on December 17, 2025, at the City Council Chambers, 29844 Haun Road, Menifee, California. Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2025-5 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2025-5 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 7

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November 5, 2025
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Resolution of Intention to Establish CFD No. 2025-5 (Nautical Cove) 4 4928-5485-2977v3/200299-0029
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3 (b) if the capital facilities to be financed and constructed by Community Facilities District No. 2025-5 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District No. 2025-5, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2025-5 is established, or after a later date determined by the City Council with the concurrence of the legislative body that levied the property tax in question.

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-5, may appear and be heard.

Section 9. Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2025-5, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type that will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-5 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-5. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in- kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-5. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 12. The reasonably expected maximum principal amount of the bonded indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Eighteen Million Dollars ($18,000,000).

Section 13. The form of the Reimbursement Agreement is hereby approved. The Mayor, the City Manager, the Chief Financial Officer, 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 Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 8

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November 5, 2025
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Resolution of Intention to Establish CFD No. 2025-5 (Nautical Cove) 5 4928-5485-2977v3/200299-0029
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3 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, APPROVED AND ADOPTED this the 5th day of November, 2025. ___________________________
Bob Karwin, Mayor Pro Tem
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 9

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November 5, 2025
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Resolution of Intention to Establish CFD No. 2025-5 (Nautical Cove) 5 4928-5485-2977v3/200299-0029
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3 Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 10

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November 5, 2025
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A-1
4928-5485-2977v3/200299-0029

EXHIBIT A

BOUNDARY MAP
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 11

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November 5, 2025
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A-1
4928-5485-2977v3/200299-0029
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 12

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November 5, 2025
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B-1
4928-5485-2977v3/200299-0029

EXHIBIT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-5 (Nautical Cove) 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, street, roadway, traffic signal and streetlights, administration and general government facilities, fire and public safety facilities, and other public facilities of the City, including the foregoing public facilities that 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) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water District that are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”); and (iii) undergrounding utilities and dry utilities (the “Utilities” and together, with the City Facilities and Water District Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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

Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 13

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B-1
4928-5485-2977v3/200299-0029
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 14

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November 5, 2025
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C-1
4928-5485-2977v3/200299-0029

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-5 (NAUTICAL COVE)

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. 2025-5 (Nautical Cove) ("CFD No. 2025-5”). 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. 2025-5, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exempt Property as set forth below. All of the real property, unless exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that shares an Assessor’s Parcel with Single Family Residential Property that has a stand- alone Residential Unit.
"Acre” or “Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2025-5: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-5 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-5 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025-5 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. 2025-5 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third-party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-5 for Item Title: 10.10
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any other administrative purposes of CFD No. 2025-5, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "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. 2025-5 have been pledged. "Boundary Map" means a recorded map of the CFD that 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. 2025-5” means Community Facilities District No. 2025-5 (Nautical Cove) 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.

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“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. 2025-5.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1 st 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 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.
"Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-5 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 composed 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.

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"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor’s Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classified as Exempt Property because to do so would be reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F. "Rate and Method of Apportionment" means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-5.
"Residential Property" means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment. “Single-Family Residential Property” means all Assessor’s Parcels of Residential Property other than Multifamily Property.
"Special Tax" or “Special Taxes” means any of the special taxes authorized to be levied within CFD No. 2025-5 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. 2025-5 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. 2025-5 that 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.

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"Undeveloped Property" means all Assessor’s Parcels of Taxable Property that are not Developed Property, Approved Property, or Provisional Undeveloped Property.

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

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2025-2026, each Assessor’s Parcel within CFD No. 2025-5 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
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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 2025/2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

TABLE 1

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

1. Single-Family Residential Property RU Less than 1,800 sq. ft $3,321.00

2. Single-Family Residential Property RU 1,800 sq. ft to 2,050 sq. ft $3,579.00

3. Single-Family Residential Property RU 2,051 sq. ft to 2,300 sq. ft $3,794.00

4. Single-Family Residential Property RU 2,301 sq. ft to 2,550 sq. ft $3,957.00

5. Single-Family Residential Property RU 2,551 sq. ft to 2,800 sq. ft $4,241.00

6. Single-Family Residential Property RU 2,801 sq. ft to 3,050 sq. ft $4,430.00

7. Single-Family Residential Property RU Greater than 3,050 sq. ft $4,636.00

8. Multifamily Property Acre N/A $27,289.00

9. Non-Residential Property Acre N/A $27,289.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by one and four tenths percent (1.40%) 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 shall be $4,404 per Residential Unit.

Notwithstanding the foregoing, if all or any portion of the applicable Final Maps and/or condominium plan contained within the boundaries of CFD No. 2025-5 is subsequently changed or modified, then the Backup Special Tax for Single-Family Residential Property or Approved Property in such Final Map or condominium plan area that is changed or modified shall be recalculated as follows:

1. Determine the total Backup Special Taxes anticipated to apply to the changed or modified Final Map or condominium plan area prior to the change or modification.

2. The result of paragraph 1 above shall be divided by the total number of Residential Units constructed and/or anticipated to be constructed within such changed or modified Final Item Title: 10.10
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Map or condominium plan area, as reasonably determined by the CFD Administrator.

The result of paragraph 2 is the Backup Special Tax per Residential Unit that shall be applicable to Assessor’s Parcels of Single-Family Residential Property or Approved Property in such changed or modified Final Map or condominium plan area contained within the boundaries of CFD No. 2025-5.

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.

On each July 1, commencing July 1, 2026, the Backup Special Tax rate shall be increased by one and four tenths percent (1.40%) 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 $27,289 per Acre.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by one and four tenths percent (1.40%) 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 $27,289 per Acre.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by one and four tenths percent (1.40%) of the amount in effect in the prior Fiscal Year.

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

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

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

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

Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax levy on each Assessor's Parcel of Developed Property for which the Maximum Special Tax is the Backup Special Tax shall be increased 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 that 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 that 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 that 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 that are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels that 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 33.84 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 33.84 Acres. Assessor's Parcels that cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 33.84 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:

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“CFD Facilities” means $13,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025-5, 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. “Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds that are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025-5.
“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 that 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 that 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):

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

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

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

10. Determine the amount the CFD Administrator reasonably expects to derive from the investment of the Bond Redemption Amount and the Redemption Premium from the date of Item Title: 10.10
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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 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 Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 25

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C-12
4928-5485-2977v3/200299-0029
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
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 2070/2071 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. 2025-5 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-5 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. 2025-5 have been satisfied.

I. MANNER OF COLLECTION
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 26

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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. 2025-5 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: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 27

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4933-7553-6497v3/200299-0029
RESOLUTION NO. 25-__

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF

MENIFEE TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $18,000,000 WITHIN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-5 (NAUTICAL COVE) OF THE CITY OF MENIFEE WHEREAS, the City Council of the City of Menifee (the “City Council”) upon receipt of a petition as provided in Section 53318 of the Government Code of the State of California instituted proceedings to form Community Facilities District No. 2025-5 (Nautical Cove) of the City of Menifee (“Community Facilities District No. 2025-5” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as amended, pursuant to Resolution No. _____ adopted by the City Council on the date hereof to finance (1) the purchase, construction, modification, expansion, improvement and/or rehabilitation of public facilities identified in Exhibit “A” hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the District (the “Incidental Expenses”); and,
WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $18,000,000; and, WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in the maximum aggregate principal amount of $18,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the proposed Community Facilities District No. 2025-5, other than those properties exempted from taxation in the rate and method of apportionment set forth in Exhibit “C” to Resolution No. _____.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California hereby determines and orders as follows:

Section 1. The above recitals are true and correct.

Section 2. It is necessary to incur bonded indebtedness within the boundaries of proposed Community Facilities District No. 2025-5 in an amount not to exceed $18,000,000 to finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.

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

Section 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, in the maximum aggregate principal amount of $18,000,000 and at a maximum interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 28

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Resolution of Intention to Incur Debt for CFD No. 2025-5 (Nautical Cove) 2 4933-7553-6497v3/200299-0029
5 1
3 6
4 a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 6:00 p.m. or as soon thereafter as practicable, on December 17, 2025, at the City Council Chambers, 29844 Haun Road, Menifee, California.

Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2025-5, may appear and be heard.

Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2025-5. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2025-5 at least 15 days prior to the Hearing.

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November 5, 2025
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Resolution of Intention to Incur Debt for CFD No. 2025-5 (Nautical Cove) 2 4933-7553-6497v3/200299-0029
5 1
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4 Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 30

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A-1
4933-7553-6497v3/200299-0029

EXHIBIT A
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-5 (Nautical Cove) of the City of Menifee The proposed types of public facilities and expenses to be financed by the District include:

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

Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 31

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November 5, 2025
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PETITION TO THE CITY COUNCIL OF THE CITY OF MENIFEE

REQUESTING INSTITUTION OF PROCEEDINGS FOR

ESTABLISHMENT OF A COMMUNITY FACILITIES DISTRICT
(COMMUNITY FACILITIES DISTRICT NO. 2025-5 INAUTICAL

COVE) OF THE CITY OF MENIFEE)
I . The undersigned is the owner (the "Owner") of more than l0% of the land depicted in Exhibit A hereto and described in Exhibit B hereto (the "Property"). The Property constitutes all of the land included within the boundaries of a community facilities district hereby proposed to be established. The Property is located within the City of Menifee (the "City") in the County of Riverside.

2. The Owner requests that the City Council of the City (the "City Council") institute proceedings to establish a community facilities district to be known as "Community Facilities District No.2025-5 (Nautical Cove) of the City of Menifee" (referred to herein as the "District") pursuant to Chapter 2.5 (commencing with Section 533 I I ), Part I , Division 2, Title 5, of the Government Code of the State of Califomia, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act") to include all ofthe Property.

3. The boundaries of the territory which is proposed for inclusion in the District are those depicted in Exhibit A hereto and described in Exhibit B hereto.

4. The Owner requests that the proposed District be used to finance the construction, purchase, modification, expansion and./or improvement of (i) drainage, library, park, street, roadway, traffic signal and streetlights, administration and general govemment facilities, fire and public safety facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City's fee programs with respect to such facilities and authorized to be financed under the Act (the "City Facilities"); and (ii) water and sewer facilities, including the acquisition of capacity in the sewer system and/or water system of the Eastern Municipal Water District and water and sewer facilities included in Eastern Municipal Water District's water and sewer capacity and connection fee programs (the "Water Dislrict Facilities"); and (iii) undergrounding utilities and dry utilities (the "Utilities" and together, with the City Facilities and water District 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 ofengineering, 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. 49011-7376 5233v3/20029q-0029
I
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 32

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5. The Owner further requests that the City Council authorize the levy of special taxes in the District to pay the costs of the Facilities and the incidental costs described in paragraph 4 above (the "Special Tax") and to pay principal of interest and premium, ifany, on the bonds in order to contribute to the financing of the Facilities and costs described in paragraph 4 above.

6. The Owner further requests that, upon the sale of bonds, the City Council, as legislative body of the District, annually lery the Special Tax on the property within the Distnct for the construction, purchase, modification, expansion and/or improvement of the Facilities, for the payment ofthe aggregate amount of principal ofand interest owing on the bonds in each fiscal year, including the maintenance ofreserves therefor, and for the payment of administrative expenses ofthe District.

7. There has been advanced to the City the amounts necessary to pay for the costs related to the formation of the District. which amounts will be reimbursed, without interest, from the proceeds of the first sale ofthe bonds, ifany. The reimbursement ofsuch amounts is expected to be govemed by the terms of that certain Reimbursement Agreement to be entered into by and between the City and the Owner, relating to the District. If bonds are not sold, the City will have no obligation to reimburse amounts expended for costs incurred, but will reimburse any unexpended amounts advanced as set forth in the Reimbursement Agreement.

Dated: October ilr, 2025
KB HOME Cal Management Services LLC,
aD limited liability company
By:

Name: L,.Ir Horrs4n
Title: V ?
.|
49OB -7 3'l 6- 5233y 3 I 200299-0029
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 33

Menifee Mayor and City Council
November 5, 2025
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Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 34

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November 5, 2025
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EXHIBIT B

LEGAL DESCRIPTION
Real property in the City of Menifee, County of Riverside, State of Califomia, described as follows:

County of Riverside Assessor Parcel No: 364-200-009
4908-7176-52l3vl/200299-0029
B-l
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 35

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November 5, 2025
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4918-3268-7985v3/200299-0029

REIMBURSEMENT AGREEMENT

RE PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2025-5
(NAUTICAL COVE) OF THE CITY OF MENIFEE

THIS REIMBURSEMENT AGREEMENT RE PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-5 (NAUTICAL COVE) OF THE CITY OF MENIFEE (the “Agreement”) dated as of November 1, 2025, is entered into by and between the City of Menifee, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and KB HOME Cal Management Services LLC, a Delaware limited liability company (the “Developer”).

R E C I T A L S :

A. The Developer is developing approximately 74 acres of land described in Exhibit A attached hereto (the “Property”) for which the Developer desires to include the Property within proposed Community Facilities District No. 2025-5 (Nautical Cove) of the City of Menifee (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).

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

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

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

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

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

Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 36

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2 4918-3268-7985v3/200299-0029
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5 practicable. The Developer shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Developer’s notice of abandonment.
(c) The City will provide to the Developer on request a summary of how the advances have been spent and the unexpended balance remaining. With the exception of $5,000, which is nonrefundable, amounts advanced by the Developer will be reimbursable to the Developer, without interest, from the proceeds of bonds issued by the District when and if the District is formed.

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

3. Reimbursement Procedure. The City shall return any funds that have been advanced by the Developer that are not expended on the purposes set forth in Section 2 above. Such returned funds shall be without interest.

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

5. Indemnification and Hold Harmless. The Developer hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Developer or any of the Developer’s officers, employees, contractors and agents with respect to the formation of the District.

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

Developer: KB HOME Cal Management Services LLC
36310 Inland Valley Drive, #300
Wildomar, CA 92595
Attention: Vernall Williams
Telephone: (951) 691-5193
City: City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Chief Financial Officer
Telephone: (951) 723-1782
Email: [email protected]
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 37

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3 4918-3268-7985v3/200299-0029
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5 With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.

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

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

8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.

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

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

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

12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

13. No Third-Party Beneficiaries. No person or entity shall be deemed to be a third-party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City and the Developer, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

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

15. Termination. This Agreement shall terminate and be of no further force and effect on December 31, 2030, unless expressly amended by the parties; provided, however, that the Developer’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination.

Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 38

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5 Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 39

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S-1
4918-3268-7985v3/200299-0029
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

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

Armando G. Villa, City Manager
ATTEST:

By:

Stephanie Roseen, City Clerk

KB HOME CAL MANAGEMENT SERVICES LLC,
a Delaware limited liability company
By:

By:

Its:

APPROVED AS TO FORM:

CITY ATTORNEY
By:

Jeffrey T. Melching, City Attorney
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 40

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November 5, 2025
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S-1
4918-3268-7985v3/200299-0029
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 41

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November 5, 2025
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A-1
4918-3268-7985v3/200299-0029

EXHIBIT A

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

County of Riverside Assessor Parcel No: 364-200-009
Item Title: 10.10
Proposed Formation of Community Facilities District No. 2025-5, Nautical Cove Item Page Number: 42

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November 5, 2025
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CITY OF MENIFEE
SUBJECT: Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance
Services
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the Petition of CG Menifee 1, LLC, and CG Menifee 2, LLC, CUP 2019-013, located south of Scott Road, west of Bailey Park Boulevard, and east of Zeiders Road, into Community Facilities District (CFD) No. 2017-1, Maintenance Services, as Annexation No. 33; and

2. Adopt a resolution of intention to add Annexation No. 33 into CFD No. 2017-1, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for December 17, 2025.

DISCUSSION
On December 6, 2017, the City Council adopted Resolution No. 17-658, establishing CFD No. 2017-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Act). CFD No. 2017-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

CG Menifee 1, LLC, and CG Menifee 2, LLC, (Owners) are the Owners of CUP 2019-013, which consists of approximately four gross acres of a vacant lot. The property is located south of Scott Road, west of Bailey Park Boulevard, and east of Zeiders Road, as shown in the attached Project Location Map.

The Owners have requested that the City assist them in annexing CUP 2019-013 into CFD 2017- 1 to cover the costs associated with the maintenance of public improvements. The area proposed for annexation would be designated “Annexation No. 33,” and at build-out would include a two- story, 21,552 square feet industrial building. Per the Owners’ request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 33, to pay for those services.

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
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City of Menifee Staff Report
CFD 2017-1, Annex 33 – Bailey Park
November 5, 2025

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Annexation No. 33 would have a maximum annual tax of $2,950 per acre and would be included in CFD No. 2017-1 as “Tax Zone 33.” This tax rate includes a Maximum Special Tax A of $1,048 per acre per year for maintenance services of public facilities and a Maximum Special Tax B (Contingent Tax B) of $1,902 per acre per year. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

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

The next step to annex CUP 2019-013 into CFD 2017-1 is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of the proposed Annexation area. A public hearing on the matter would take place on December 17, 2025, and at that time, the Council would formally consider approval of the Annexation No. 33.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The individual property Owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, that there would be an annual collection of special tax revenues of approximately $3,839, not including Contingent Tax B, to be used to pay for maintenance costs.

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

All costs associated with annexation into the CFD have been borne by the Owners. 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.

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention and Exhibits

3. CFD Maintenance Site Plan Exhibit
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
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COMMUNITY FACILITIES DISTRICT 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 33

PROJECT MAP
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
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1 RESOLUTION NO. 25-____

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

DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2017-1 ( MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED (ANNEXATION NO. 33) A

ND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) , on November 1, 2017 , the City Council (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17-654 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, which taxes would be used to provide certain services necessary to meet increased demands placed upon the City by development; and WHEREAS, the City Council has received a written instrument to initiate and conduct proceedings pursuant to the Act, to annex territory into CFD No. 2017-1 and to consent to the shortening of election time requirements, waiving of analysis and arguments, and waiving of all notice and word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area described in Exhibit A be annexed territory into the boundaries of CFD No. 2017-1, and that a rate and method of apportionment of the special tax to be levied therein be established.

NOW, THEREFORE, BE IT RESOLVED 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, determined and order as follows:

Section 1. Intent to Annex. The City Council, acting as the legislative body of the CFD No. 2017-1 hereby declares that it proposes and intends to conduct proceedings pursuant to Article

3.5 of the Act for the annexation into the CFD No. 2017-1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to CFD No. 2017-1.

Section 2. Name of the Community Facilities District. The existing community facilities district is known as “Community Facilities District No. 2017-1 (Maintenance Services).” Section 3. Description of Territory Included in Existing CFD No. 2017-1. The boundaries of the territory currently included in the CFD No. 2017-1 are described and shown on that certain map entitled "Proposed Boundary Map – Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee, County of Riverside, State of California", as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 69, and as Document No. 2017-0465706 in the official records of the County of Riverside, as amended by the following:

Section 4. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2017-1 and is more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 70, and as Document No. 2017-0465707 in the official records Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 4

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November 5, 2025
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Resolution of Intention Annex 33
2 of the County of Riverside. The territory proposed to be annexed to the CFD No. 2017-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 33, Community Facilities District No. 2017-1 (Maintenance Services), City of Menifee, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

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

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

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

1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit C.

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

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

Section 10. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on Wednesday, December 17, 2025 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council would conduct a public hearing on the proposed annexation of the area depicted on the Annexation Map and described in Exhibit A hereto territory to the CFD No. 2017-1.

Section 11. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2017-1. The publication of said notice shall be completed at least seven days prior to Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 5

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Resolution of Intention Annex 33

3 the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act.

Section 12. Mailing Ballots. In anticipation of its action on Wednesday, December 17, 2025 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2017-1 a ballot, the full text of which shall be as set forth in Exhibit G hereto and shall be included in the ballot pamphlet mailed to each qualified elector. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

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

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

PASSED, APPROVED AND ADOPTED this ____ day of _______, 2025.

___________________________
Bob Karwin, Mayor Pro Tem

Attest:

___________________________
Stephanie Roseen, City Clerk

Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 6

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EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Menifee Community Facilities District No. 2017 -1 (Maintenance Services) (the “CFD No. 2017 -1”) Annexation No. 33 is currently comprised of two (2) parcels, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

Assessor Parcel Number(s) Owner Name
384-180-020 CG Menifee 2, LLC
384-180-036 CG Menifee 1, LLC

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 7

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November 5, 2025
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City of Menifee 12
Community Facilities District No. 2017-1 (Maintenance Services)

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

DESCRIPTION OF AUTHORIZED SERVICES
Th
e 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; 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) pu
blic 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 p roceeds of the special tax of CFD No. 2017 -1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017 -1 before the territory was annexed, as applicable.

EXHIBIT B
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 8

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EXHIBIT C

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, 201 8, 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, t he 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 admin istrative purposes of CFD No. 2017- 1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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

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

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

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

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

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 9

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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 determin ed in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

Item Title: 10.11
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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 Undevelope d 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 as identified in Appendix B.

“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 circu mstances 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: 10.11
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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 Mult i- 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 sh own 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 Un its by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Item Title: 10.11
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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 Acrea ge designated for each land use a s 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: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 13

Menifee Mayor and City Council
November 5, 2025
Page
244 of 1040

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, 201 9 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: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 14

Menifee Mayor and City Council
November 5, 2025
Page
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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, 201 9 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 Cate gory. 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 Acrea ge desi gnated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

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

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 15

Menifee Mayor and City Council
November 5, 2025
Page
246 of 1040

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, 201 9 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 S pecial 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: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 16

Menifee Mayor and City Council
November 5, 2025
Page
247 of 1040

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 s hall 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 a ggregate 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 S pecial 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: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 17

Menifee Mayor and City Council
November 5, 2025
Page
248 of 1040

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

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

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 18

Menifee Mayor and City Council
November 5, 2025
Page
249 of 1040

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 2025-26. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2017-1 Tax Zone 33.

TAX ZONE 33 (SERVICES)
CUP 2019-013
Item Description Estimated Cost
1 Landscaping $189
2 Lighting $325
3 Streets $1,471
4 Drainage $365
5 Reserves $354
6 Administration $1,135
Total $3,839

TAX ZONE 33 (CONTINGENT SERVICES)
CUP 2019-013
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2025-26. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Tax Zone 33.

Item Description Estimated Cost
1 Drainage $5,071
2 Reserves $761
3 Administration $1,135
Total $6,967
TAX ZONE 33
FY 2025-26 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed Acre $1,048 $1,902
Approved Acre $1,048 $1,902
Undeveloped Acre $1,048 $1,902

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 19

Menifee Mayor and City Council
November 5, 2025
Page
250 of 1040

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

27.68 NR Acre $1,714 $0 Several
2 2020-21 TR 37576 65 SFR RU $539 $43 Meritage Homes
3 2020-21 TR 28859 161 SFR RU $727 $0 Woodside O5S
4 2020-21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of
California, Inc.
5 2020-21 TTM 36852 68 SFR RU $755 $151 Strata Holland, LLC 6 2021-22 TTM 37668 175 SFR RU $765 $295 Meritage Homes of California, Inc.
7 2022-23 TTM 31456 176 SFR RU $996 $0 RCFC Investments, LLC 8 2021-22 TR 32102 &
TR 32102-1 256 SFR RU $674 $0
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
9 2021-22 TTM 37400 174 SFR RU $703 $0 D.R. Horton Los Angeles Holding Company, Inc.
10 2022-23 TPM 37380 3.62 NR Acre $3,588 $1,646 Briggs & 74, LLC 11 2024-25 TR 31194 552 SFR RU $913 $0 Golden Meadowland, LLC & Golden Hill Country, LLC
12 2022-23 TR 37408 &
TR 37409 1,022 SFR RU $963 $5 BLC Fleming LLC
13 2022-23 TR 36803 80 SFR RU $556 $171 FPG Sun Menifee 80 LLC 14 2022-23 TR 32628 303 SFR RU $281 $45 FPG Tricon Menifee Property LLC
15 2022-23 PLN 20-0167 9.92 MFR/NR Acre $3,865 $2,375 Boulders Menifee LLC 16 2022-23 LLA 17-007 12.48 MFR Acre $3,273 $2,119 Jefferson Menifee, LLC 17 2023-24 PM 37145 4.82 NR Acre $3,137 $0 VSK Investments, LLC 18 2023-24 TR 37131 305 SFR RU $533 $38 AG EHC II (LEN) CA 1, LP 19 2023-24 PLN 22-0199 0.96 NR Acre $2,995 $0 DSMD Cajun Properties 20 To Be Determined
21 2024-25 TR 38219 198 SFR RU $315 $71 Richmond American Homes of Maryland Inc.
22A 2023-24 TR 36658-1,
-3, -4, & -7 393 SFR RU $1,086 $100 Pulte Home Company, LLC 22B 2023-24 TR 36658-2 116 SFR RU $879 $100 Pulte Home Company, LLC 22C 2023-24 TR 36658-5
& 36658-6 247 SFR RU $879 $100 Pulte Home Company, LLC
23 2024-25 TR 37671 182 SFR RU $1,293 $0 Pulte Home Company, LLC 24 CANCELED
25 To Be Determined
25 2025-26 TTM 37692 130 SFR RU $589 $179 Quail Hills L.P., a California Limited Partnership
26 2024-25 TTM 38126 96 SFR RU $1,239 $0
Richmond American
Homes of Maryland, Inc.,
a Maryland corporation
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 20

Menifee Mayor and City Council
November 5, 2025
Page
251 of 1040

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 13 Tax
Zone
Fiscal
Year
Included
Tract/
APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
27 2024-25 333-040-043,
333-040-044 1.89 NR Acre $5,016 $1,002
KA Menifee, LLC, Capital
Financial Group, Inc.

Defined Benefit Pension
Plan, Kaassi International,
Inc. Defined Benefit
Pension Plan, KZA Inc.

Defined Benefit Pension
Plan.
28 2025-26 PLN 22-0154 43.14 NR Acre $820 $0 Nova Power, LLC 29 2024-25 TR 38346 162 MFR RU $274 $65 Lennar Homes of California, LLC
30 To Be Determined
31 To Be Determined
32 To Be Determined
33 2025-26 CUP 2019-
013 4.07 NR Acre $1,048 $1,902 CG Menifee 1, LLC, & CG
Menifee 2, LLC
34 2025-26 TTM 31229 233 SFR RU $1,033 $121
KB Home Cal
Management Services,
LLC

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 20 19 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 21

Menifee Mayor and City Council
November 5, 2025
Page
252 of 1040

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

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

DESCRIPTION OF AUTHORIZED SERVICES

The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals ; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1; and any portions adjacent to the properties within CFD No. 2017-1; and

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

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

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 22

Menifee Mayor and City Council
November 5, 2025
Page
253 of 1040

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
(ON FOLLOWING PAGES)
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 23

Menifee Mayor and City Council
November 5, 2025
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384-180-036 384-180-020
Bailey Park Blvd
Zeiders Rd
SHEET 1 OF 1 SHEET
\_
CFD 2017-1
TAX ZONE 33
·|}þ74·|}þ74
§¨¦215

MENIFEE
02 0 0 4 0 0 100 Feet
ANNEXATION MAP NO. 33
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

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

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
NOVEMBER 7, 2017 IN BOOK 81 OF MAPS OF ASSESSMENT
A N D C O M M U N I T Y F A C I L I T I E S D I S T R I C T A T P A G E 6 9 A N D AS INSTRUMENT NO. 2017-0465706 IN THE OFFICE OF THE

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

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

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

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

CITY CLERK

C IT Y OF MENIF EE
-

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
P A G E _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY

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

CITY CLERK

C IT Y OF MENIF EE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

PARCEL LINE

CFD BOUNDARY

CITY BOUNDARY
33 TAX ZONE
33 Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 24

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 25

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November 5, 2025
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EXHIBIT E

PETITION
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 26

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 27

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 28

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 29

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 30

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 31

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 32

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 33

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 34

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 35

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 36

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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 37

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November 5, 2025
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Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 38

Menifee Mayor and City Council
November 5, 2025
Page
269 of 1040

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 39

Menifee Mayor and City Council
November 5, 2025
Page
270 of 1040

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 40

Menifee Mayor and City Council
November 5, 2025
Page
271 of 1040

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 41

Menifee Mayor and City Council
November 5, 2025
Page
272 of 1040

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 33)

NOTICE IS HEREBY GIVEN that the City Council of the City of Menifee on November 5, 2025 adopted its Resolution No. 2025-__, in which it declared its intention to annex territory to existing Community Facilities District No. 201 7-1 (Maintenance Services) (the "CFD No. 201 7-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello- Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2017-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, December 17, 2025 in the City Council Chambers located at 29 844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 201 7-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the December 1 7, 202 5 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951- 723-3471.

DATED: ____________, 2025 _________________________________________ City Clerk of the City of Menifee
PUB: ____________, 2025

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 42

Menifee Mayor and City Council
November 5, 2025
Page
273 of 1040

EXHIBIT G1
BALLOT

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 33
(December 17, 2025)
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 Landowner Number of Acres Owned Total Votes
CG Menifee 1, LLC 1.94 2
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.

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

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

M
ail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than December 3, 2025, two calendar weeks prior to the date set for the election.

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

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on December 17, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

H
owever delivered, this ballot must be received by the Clerk prior to the close of the public meeting on December 17, 2025.

V
ery truly yours,
S
tephanie Roseen
City Clerk
City of Menifee
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 43

Menifee Mayor and City Council
November 5, 2025
Page
274 of 1040

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

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

CG Menifee 1, LLC
Attn: The Close Living Trust
42540 Rio Nedo
Temecula, CA 92592
384-180-036

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 set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
Non-Residential $1,048 $1,902
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino - Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 33 of Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and drainage for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025- __ adopted by the City Council of the City of Menifee on November 5, 2025 (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__.

The Close Living Trust
Trustee
Signature
Print Name
Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 44

Menifee Mayor and City Council
November 5, 2025
Page
275 of 1040

EXHIBIT G2
BALLOT

CITY OF MENIFEE

Name of Landowner Number of Acres Owned Total Votes
CG Menifee 2, LLC 2.13 3
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.

M
ail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than December 3, 2025, two calendar weeks prior to the date set for the election.

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

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on December 17, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

H
owever delivered, this ballot must be received by the Clerk prior to the close of the public meeting on December 17, 2025.

Menifee Mayor and City Council
November 5, 2025
Page
276 of 1040

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

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

CG Menifee 2, LLC
Attn: The Close Living Trust
42540 Rio Nedo
Temecula, CA 92592
384-180-020

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 set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
Non-Residential $1,048 $1,902
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino - Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 33 of Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and drainage for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025 -__ adopted by the City Council of the City of Menifee on November 5, 2025 (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__.

The Close Living Trust
Trustee

Signature

Print Name

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 46

Menifee Mayor and City Council
November 5, 2025
Page
277 of 1040

Item Title: 10.11
Resolution of Intention for Annexation No. 33, Bailey Park, into Community Facility District 2017-1, Maintenance Services Item Page Number: 47

Menifee Mayor and City Council
November 5, 2025
Page
278 of 1040

CITY OF MENIFEE
SUBJECT: Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance
Services
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the Petition of KB Home Cal Management Services, LLC, Tentative Tract Map 31229 (TTM 31229), located west of Briggs Road, north of Holland Road, south of Tres Lagos Drive, and east of Southshore Drive, into Community Facilities District (CFD) No. 2017-1, Maintenance Services, as Annexation No. 34; and

2. Adopt a resolution of intention to add Annexation No. 34 into CFD No. 2017-1, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for December 17, 2025.

KB Home Cal Management Services, LLC (Owner) is the Owner of TTM 31229, which consists of approximately 73 gross acres of a residential vacant lot. The property is located west of Briggs Road, north of Holland Road, south of Tres Lagos Drive, and east of Southshore Drive, as shown in the attached Project Location Map.

The Owner has requested that the City assist them in annexing TTM 31229 into CFD 2017-1 to cover the costs associated with the maintenance of public improvements. The area proposed for annexation would be designated “Annexation No. 34,” and at build-out would include 233 single- family homes. Per the Owner’s request, the City would establish a rate and method of Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
279 of 1040

City of Menifee Staff Report
CFD 2017-1, Annex 34 – Nautical Cove
November 5, 2025

Page 2 of 3 ends

2 8
6 7
apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 34, to pay for those services.

Annexation No. 34 would have a maximum annual tax of $1,154 per unit and would be included in CFD No. 2017-1 as “Tax Zone 34.” This tax rate includes a Maximum Special Tax A of $1,033 per unit per year for maintenance services of public facilities and a Maximum Special Tax B (Contingent Tax B) of $121 per unit per year. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

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

The next step to annex TTM 31229 into CFD 2017-1 is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of the proposed Annexation area. A public hearing on the matter would take place on December 17, 2025, and at that time, the Council would formally consider approval of Annexation No. 34.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the tract development, that there would be an annual collection of special tax revenues of approximately $240,689, not including Contingent Tax B, to be used to pay for maintenance costs.

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 2

Menifee Mayor and City Council
November 5, 2025
Page
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City of Menifee Staff Report
CFD 2017-1, Annex 34 – Nautical Cove
November 5, 2025

Page 3 of 3 ends

2 8
6 7

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention and Exhibits

3. CFD Maintenance Site Plan Exhibit
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 3

Menifee Mayor and City Council
November 5, 2025
Page
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LOIREVALLEY LN

MENIFEE
RD
OAK

KNOLL DR

EMERSONLN

FALL RIVER LN

SOUTHSHORE DR

HOLLAND RD

TRES LAGOS DR
BRIGGS
RD
^_

LAZY CREEK RD
VALLEY

BLVD ALD ERGATE DR
BRIGGS
RD
HAUN
RD

MIRA ST

LEON RD

PALOMAR RD

LOUISE RD
M
C
BOB
RD

ANTELOPE
RD

MELMORE LN

WICKERD RD EUCALYPTUS
RD

MARINO DR

CANYON HILLS RD

POTOMAC DR
EVANS

RDFLAXLEAF DR

STERN DR
(MAINTENANCE SERVICES)
ANNEXATION NO. 34

PROJECT MAP
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 4

Menifee Mayor and City Council
November 5, 2025
Page
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1 RESOLUTION NO. 25-____

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

Section 1. Intent to Annex. The City Council, acting as the legislative body of the CFD No. 2017-1 hereby declares that it proposes and intends to conduct proceedings pursuant to Article

Section 4. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2017-1 and is more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 70, and as Document No. 2017-0465707 in the official records Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 5

Menifee Mayor and City Council
November 5, 2025
Page
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Resolution of Intention Annex 34
2 of the County of Riverside. The territory proposed to be annexed to the CFD No. 2017-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 34, Community Facilities District No. 2017-1 (Maintenance Services), City of Menifee, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 11. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2017-1. The publication of said notice shall be completed at least seven days prior to Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 6

Menifee Mayor and City Council
November 5, 2025
Page
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Resolution of Intention Annex 34

3 the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act.

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

PASSED, APPROVED AND ADOPTED this ____ day of _______, 2025.

___________________________
Bob Karwin, Mayor Pro Tem

Attest:

___________________________
Stephanie Roseen, City Clerk

Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 7

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November 5, 2025
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EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Menifee Community Facilities District No. 2017 -1 (Maintenance Services) (the “CFD No. 2017 -1”) Annexation No. 34 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

Assessor Parcel Number(s) Owner Name
364-200-009 KB Home Cal Management Services

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 8

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November 5, 2025
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City of Menifee 12
Community Facilities District No. 2017-1 (Maintenance Services)

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

EXHIBIT B
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 9

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November 5, 2025
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EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

OF THE CITY OF MENIFEE

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: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 10

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“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: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 11

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November 5, 2025
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“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.

"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 fo r th e costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circu mstances 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: 10.12
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"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.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 13

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November 5, 2025
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TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 14

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November 5, 2025
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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: 10.12
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November 5, 2025
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TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 16

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November 5, 2025
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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

Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 17

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November 5, 2025
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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: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 18

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November 5, 2025
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Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 19

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November 5, 2025
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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)

TAX ZONE 34 (SERVICES)
TTM 31229
Item Description Estimated Cost
1 Landscaping $42,704
2 Lighting $22,829
3 Streets $75,005
4 Drainage $16,648
5 Parks $57,916
6 Graffiti $1,097
7 Reserves $13,546
8 Administration $10,944
Total $240,689

TAX ZONE 34 (CONTINGENT SERVICES)
TTM 31229
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2025-26. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Tax Zone 34.

Item Description Estimated Cost
1 Drainage $24,320
2 Reserves $2,432
3 Administration $1,351
Total $28,103
TAX ZONE 34
FY 2025-26 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed RU $1,033 $121
Approved RU $1,033 $121
Undeveloped Acre $3,268 $382

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 20

Menifee Mayor and City Council
November 5, 2025
Page
298 of 1040

27.68 NR Acre $1,714 $0 Several
2 2020-21 TR 37576 65 SFR RU $539 $43 Meritage Homes
3 2020-21 TR 28859 161 SFR RU $727 $0 Woodside O5S
4 2020-21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of
California, Inc.
5 2020-21 TTM 36852 68 SFR RU $755 $151 Strata Holland, LLC 6 2021-22 TTM 37668 175 SFR RU $765 $295 Meritage Homes of California, Inc.
7 2022-23 TTM 31456 176 SFR RU $996 $0 RCFC Investments, LLC 8 2021-22 TR 32102 &
TR 32102-1 256 SFR RU $674 $0
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
9 2021-22 TTM 37400 174 SFR RU $703 $0 D.R. Horton Los Angeles Holding Company, Inc.
10 2022-23 TPM 37380 3.62 NR Acre $3,588 $1,646 Briggs & 74, LLC 11 2024-25 TR 31194 552 SFR RU $913 $0 Golden Meadowland, LLC & Golden Hill Country, LLC
12 2022-23 TR 37408 &
TR 37409 1,022 SFR RU $963 $5 BLC Fleming LLC
13 2022-23 TR 36803 80 SFR RU $556 $171 FPG Sun Menifee 80 LLC 14 2022-23 TR 32628 303 SFR RU $281 $45 FPG Tricon Menifee Property LLC
15 2022-23 PLN 20-0167 9.92 MFR/NR Acre $3,865 $2,375 Boulders Menifee LLC 16 2022-23 LLA 17-007 12.48 MFR Acre $3,273 $2,119 Jefferson Menifee, LLC 17 2023-24 PM 37145 4.82 NR Acre $3,137 $0 VSK Investments, LLC 18 2023-24 TR 37131 305 SFR RU $533 $38 AG EHC II (LEN) CA 1, LP 19 2023-24 PLN 22-0199 0.96 NR Acre $2,995 $0 DSMD Cajun Properties 20 To Be Determined
21 2024-25 TR 38219 198 SFR RU $315 $71 Richmond American Homes of Maryland Inc.
22A 2023-24 TR 36658-1,
-3, -4, & -7 393 SFR RU $1,086 $100 Pulte Home Company, LLC 22B 2023-24 TR 36658-2 116 SFR RU $879 $100 Pulte Home Company, LLC 22C 2023-24 TR 36658-5
& 36658-6 247 SFR RU $879 $100 Pulte Home Company, LLC
23 2024-25 TR 37671 182 SFR RU $1,293 $0 Pulte Home Company, LLC 24 CANCELED
25 To Be Determined
26 2024-25 TTM 38126 96 SFR RU $1,239 $0
Richmond American
Homes of Maryland, Inc.,
a Maryland corporation
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 21

Menifee Mayor and City Council
November 5, 2025
Page
299 of 1040

Defined Benefit Pension
Plan, Kaassi International,
Inc. Defined Benefit
Pension Plan, KZA Inc.

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 22

Menifee Mayor and City Council
November 5, 2025
Page
300 of 1040

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

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

DESCRIPTION OF AUTHORIZED SERVICES

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

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 23

Menifee Mayor and City Council
November 5, 2025
Page
301 of 1040

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
(ON FOLLOWING PAGES)
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 24

Menifee Mayor and City Council
November 5, 2025
Page
302 of 1040

364-200-009
Southshore Dr
Briggs Rd
Holland Rd
Tres Lagos Dr
SHEET 1 OF 1 SHEET
\_
CFD 2017-1
TAX ZONE 34
·|}þ74·|}þ74
§¨¦215

MENIFEE
01 , 2 0 0 2 , 4 0 0600 Feet
ANNEXATION MAP NO. 34
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

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

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

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

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

CITY CLERK

C IT Y OF MENIF EE
-

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
P A G E _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY

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

CITY CLERK

C IT Y OF MENIF EE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

PARCEL LINE

CFD BOUNDARY

CITY BOUNDARY
34 TAX ZONE
34 Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 25

Menifee Mayor and City Council
November 5, 2025
Page
303 of 1040

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 26

Menifee Mayor and City Council
November 5, 2025
Page
304 of 1040

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 27

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November 5, 2025
Page
305 of 1040

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 28

Menifee Mayor and City Council
November 5, 2025
Page
306 of 1040

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 29

Menifee Mayor and City Council
November 5, 2025
Page
307 of 1040

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 30

Menifee Mayor and City Council
November 5, 2025
Page
308 of 1040

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 34)

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, December 17, 2025 in the City Council Chambers located at 29 844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 201 7-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the December 17, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951- 723-3471.

DATED: ____________, 2025 _________________________________________ City Clerk of the City of Menifee
PUB: ____________, 2025

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 31

Menifee Mayor and City Council
November 5, 2025
Page
309 of 1040

EXHIBIT G

BALLOT

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 34

(December 17, 2025)
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 Landowner Number of Acres Owned Total Votes
KB Home Cal Management Services,
LLC 73.64 74

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

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

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than December 3, 2025 , two calendar weeks prior to the date set for the election.

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

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on December 17, 2025, 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 December 17, 2025.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 32

Menifee Mayor and City Council
November 5, 2025
Page
310 of 1040

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

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

KB Home Cal Management Services,
LLC
Attn: Vernell Williams
36310 Inland Valley Drive
Wildomar, CA 92595
364-200-009

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 set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
Single-Family Residential $1,033 $121
plus an annual increase on each July 1, commencing on July 1, 2026 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino - Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 34 of Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, drainage, parks, and graffiti abatement for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on November 5, 2025 (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__.

Vernell Williams
Authorized Signor

Signature

Print Name

Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 33

Menifee Mayor and City Council
November 5, 2025
Page
311 of 1040

MAINTENANCE EXHIBIT LEGEND
POC 1 STREETSCAPES:

STREET:

CFD MAINTAINED AREAS - 312,128 SF
NOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD
33 172
2 3 45 6
7 8
193
151
152
153
154
155
156
157
159 160
161
163
164
165
166
167
168
169
170
171
173 174 175 176 177 178 179 180 181 182 183
186 187
188 189 190 191 192
53545556
57 58
69 70
71 194 195 196 197 198 199
209210211212213214
216 217 219 220 221 222
227228229
233
230
215
218
158
72 162
1 237
232
231
9 10
11 12
141
142
143
144
145
146
147
148
149
150
184
185
66667
68 200 201 202
203
204
205206207
208
223 224
226
LOT 244
238
239
240
225
BASIN
LAKE
BASIN
BASIN
LOT 242
PARK
'H' STREET
'A' STREET
'J' STREET
'A' STREET
'I' STREET
'K' STREET
'G' STREET
LAKE
TRAIL
LAKE
TRAIL
LAKE
TRAIL
LAKE
TRAIL
'C' STREET
'C' STREET

HOLLAND ROAD

SOUTHSHORE DRIVE

N O R T H
0 200'
Scale: 1"=200'
400' 800'

CITY OF MENIFEE, CALIFORNIA
M A I N T E N A N C E E X H I B I T - SHEET 1
NAUTICAL COVE - TR 31229
MATCHLINE SEE SHEET 2
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 34

Menifee Mayor and City Council
November 5, 2025
Page
312 of 1040

MAINTENANCE EXHIBIT LEGEND
POC 1 STREETSCAPES:

STREET:

CFD MAINTAINED AREAS - 312,128 SF
NOTE: ALL IRRIGATION TO USE RECYCLED WATER FROM EMWD
27 28
29 30
34353637383940414243444546
13 14 15 16 17 18 19 20 21 22
74 75
76 77
78 79 80 81 82 83 84 85
86 87
88 89
90 91
9293
94 95
96 9798
99 100
101102103104
105
106
107
108
109
110111
112
113
116117118119120121122123124125126127128129
132133134135136137138139
47 48
49505152
59 60
33 131
2523
115
130
114
31 32
24 26
73 61
62 63
6465
140LOT 242
241
BASIN
PARK
'A' STREET
LAKE
TRAIL
LAKE
TRAIL
'D' STREET
'B' STREET
'B' STREET
'L' STREET
'F' STREET
'E' STREET
'C' STREET

HOLLAND ROAD

BRIGGS ROAD
'G' STREET
M A I N T E N A N C E E X H I B I T - SHEET 2
NAUTICAL COVE - TR 31229

N O R T H
0 200'
Scale: 1"=200'
400' 800'

CITY OF MENIFEE, CALIFORNIA
MATCHLINE SEE SHEET 1
Item Title: 10.12
Resolution of Intention for Annexation No. 34, Nautical Cove, into Community Facility District 2017-1, Maintenance Services Item Page Number: 35

Menifee Mayor and City Council
November 5, 2025
Page
313 of 1040

CITY OF MENIFEE
SUBJECT: Memorandum of Understanding with Perris Union High School District for the Every 15 Minutes Program
MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Christine Booker, Budgets & Grants Analyst REVIEWED BY: Chris Karrer, Police Chief
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute a Memorandum of Understanding (MOU) with the Perris Union High School District (PUHSD) for the Every 15 Minutes Program; and

2. Authorize the City Manager to execute all subsequent MOU amendments at the City’s discretion.

DISCUSSION
During the 2025/2026 fiscal year Menifee Police Department (MPD) staff were directed to work with PUHSD, California Highway Patrol (CHP) and other associated agencies to implement the Every 15 Minutes Program within the City.

The Every 15 Minutes Program (Program) is a two-day educational experience designed to dramatically instill in high school students the dangerous consequences of drinking and driving, particularly under the influence of alcohol or drugs. The Program is primarily aimed at high school juniors and seniors.

Key Features
Realistic Simulation: The Program typically includes a staged car crash involving student actors, emergency responders, and even the local coroner or mortuary and hospital. The goal is to portray the aftermath of a DUI accident as realistically as possible. The "Living Dead": Throughout the school day, students are removed from classes every 15 minutes to symbolize someone in the U.S. dying in an alcohol-related incident. They return with pale makeup and black clothing, representing victims who "died." Parent Involvement: Families of the student participants may write letters as if their child had died, emphasizing the emotional impact.

Item Title: 10.13
Memorandum of Understanding with Perris Union High School District for the Every 15 Minutes Program Item Page Number: 1

Menifee Mayor and City Council
November 5, 2025
Page
314 of 1040

City of Menifee Staff Report
E15 Minutes Program MOU
November 5, 2025

Page 2 of 3 ends

Menifee City CouncilNovember 5, 2025

Menifee City Council
November 5, 2025