Agenda packet — Finance Committee, January 13, 2026 (part 1 of 2)

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Dean Deines, District 4
Dan Temple, District 3
AGENDA
Finance Committee
Regular Meeting Agenda
Tuesday, January 13, 2026
2:00 PM Regular Meeting
Travis Hickey, Chief Financial Officer
Rachel Valencia, Meeting Clerk
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS

4. PUBLIC COMMENTS (NONAGENDA ITEMS)
This is the time for members of the public to address the Committee Members about items which are NOT listed on the agenda. The Ralph M. Brown Act limits the Committee’s ability to respon d to comments on nonagendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item.

5. APPROVAL OF MINUTES

5.1 October 14, 2025 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Change to Community Facilities District No. 20254, Heritage Village, by Lennar Homes
RECOMMENDED ACTION

1. Review the changes proposed for Community Facilities District No. 20254, Heritage Village, to amend the financing plan for certain public improvements within the proposed 162unit town home development and recommend submittal to the City Council for consideration.

6.2 Proposed Bond Issuance for Community Facilities District No. 20241, Banner Park II RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District (“CFD”) No. 20241, Banner Park II by Pulte Home Co., LLC, to finance the costs of certain public improvements in connection with the development of 182 homes in a community located southeast of Domenigoni Parkway at Lindenberger Road within the City of Menifee (the “City”); and

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.3 Proposed Bond Issuance for Community Facilities District No. 20223, Improvement Area 1, Legado
RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District (“CFD”) No. 20223, Improvement Area 1, Legado by Lennar Homes of California, LLC, to finance the costs of certain public improvements in connection with the development of 1,022 homes in a community located northwest of Antelope Road and Chambers Avenue and south of Rouse Road within the City of Menifee (the “City”); and

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.4 Finance Committee 2026 Meeting Schedule
RECOMMENDED ACTION

1. Approve the 2026 Finance Committee Meeting dates.

6.5 Establishment of Section 115 Trust
RECOMMENDED ACTION

1. Recommend City Council consider engaging Public Agency Retirement Services (“PARS”) in a Professional Services Agreement for Section 115 Trusts Establishment, Administration and Investment Management Services.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

10. ADJOURNMENT
Decorum Policy Notes
The Committee anticipates and encourages public participation at its meetings, both on agenda items and during the public comments period. Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive. We encourage participation and ask for a mutual respect for the proceedings.

Staff Reports
Materials related to an item on this agenda, including those submitted to the Committee after distribution of the agenda packet, are available for public inspection by contacting the City Clerk Department, at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours.

Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact the City Clerk Department at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.

Affidavit of the Posting
I, Rachel Valencia, do hereby certify, under penalty of perjury, that the Tuesday, January 13, 2026 Finance Committee meeting agenda was posted at least 72 hours prior to the meeting in the following locations per Cal. Gov. Code, § 54954.2, subd. (a)(1): Menifee City Hall, 29844 Haun Road, Kay Ceniceros Community Center, 29995 Evans Road, and the City of Menifee website.

Menifee Finance Committee
January 13, 2026

Page 1 of 250 ends

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS

5. APPROVAL OF MINUTES

5.1 October 14, 2025 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Change to Community Facilities District No. 20254, Heritage Village, by Lennar Homes
RECOMMENDED ACTION

6.2 Proposed Bond Issuance for Community Facilities District No. 20241, Banner Park II RECOMMENDED ACTION

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.3 Proposed Bond Issuance for Community Facilities District No. 20223, Improvement Area 1, Legado
RECOMMENDED ACTION

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.4 Finance Committee 2026 Meeting Schedule
RECOMMENDED ACTION

1. Approve the 2026 Finance Committee Meeting dates.

6.5 Establishment of Section 115 Trust
RECOMMENDED ACTION

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

Menifee Finance Committee
January 13, 2026

Page 2 of 250 ends

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS

5. APPROVAL OF MINUTES

5.1 October 14, 2025 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Change to Community Facilities District No. 20254, Heritage Village, by Lennar Homes
RECOMMENDED ACTION

6.2 Proposed Bond Issuance for Community Facilities District No. 20241, Banner Park II RECOMMENDED ACTION

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.3 Proposed Bond Issuance for Community Facilities District No. 20223, Improvement Area 1, Legado
RECOMMENDED ACTION

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

6.4 Finance Committee 2026 Meeting Schedule
RECOMMENDED ACTION

1. Approve the 2026 Finance Committee Meeting dates.

6.5 Establishment of Section 115 Trust
RECOMMENDED ACTION

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

Menifee Finance Committee
January 13, 2026

Page 3 of 250 ends

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Dean Deines, District 4
Dan Temple, District 3 MINUTES
Finance Committee
Special Meeting Minutes
Tuesday, October 14, 2025
4:00 PM Special Meeting
Travis Hickey, Chief Financial Officer
Rachel Valencia, Clerk
SPECIAL MEETING (4:00 PM)

1. CALL TO ORDER
Councilmember Deines called the meeting to order at 4:02 PM.

2. ROLL CALL

Present: Dan Temple, Dean Deines

Absent: Ricky Estrada

3. PRESENTATIONS - NONE
There were no presentations.

4. APPROVAL OF MINUTES
The following set of minutes were approved unanimously (2-0) with no modifications.

4.1 September 9, 2025 Finance Committee Meeting Minutes

5. DISCUSSION ITEMS

5.1 Proposed Amendment No. 1 to the Development Agreement with BLC Fleming and Lennar, LLC for the Legado project (Legado Specific Plan) Chief Financial Officer Travis Hickey introduced the item and Management Analyst Molly Binnall. Ms. Binnall provided a presentation. The Committee had general questions regarding the distance of the parks from the project.

Councilmember Deines inquired about the status of builds in the area of the project, extending the certificate of occupancy, the timeline of how long it would take to get a park in area of the project, timeline of when residents in the area of the project could begin doing recreational activities, and when referenced paseos would be developed.

Additionally, Councilmember Deines expressed concern that there is nothing currently in place for residents during the project development, stated support for Community Facilities District premium being put back into the project for residents, emphasized the importance of having restrooms/utilities nearby for residents who visit the parks, and confirmed the numbers of the project won’t affect the development of those utilities.

Item: 5.1
Item Page Number: 1
Menifee Finance Committee January 13, 2026 Page 4 of 250

The Committee unanimously approved the recommendation.

ACTION

1. Reviewed the proposed Amendment No. 1 for the existing Development Agreement (2018-277) between the City of Menifee and BLC Fleming, LLC and Lennar, LLC dated June 3, 2020 for the Legado development and recommended submittal to the City Council for approval.

5.2 Bond Premium Reimbursement with Lennar Homes for Community Facilities District No. 2022-3, Legado, IA1
Chief Financial Officer Hickey introduced the item and provided an overview.

Councilmember Deines asked general questions regarding the use of bond premium. He stated his support for putting the premium back into the project as long as it abided by regulations governing the use of bond proceeds.

The Committee unanimously approved the recommendation.

ACTION

1. Discussed the proposed bond premium reimbursement for Community Facilities District No. 2022-3, Improvement Area 1, and recommended presenting it to the City Council for consideration.

5.3 Annual Update on Community Facilities District Bond Premiums Chief Financial Officer Travis Hickey introduced the item and Financial Analyst Lauri Lockwood provided a report.

Councilmember Deines inquired about the playground enhancement at Banner Park and total cost prediction.

The Committee unanimously approved the recommendation.

ACTION

1. Received the annual report with updated details on Community Facility District (CFD) bond premiums.

6. ADJOURN
Councilmember Deines adjourned the meeting at 4:34 PM.

Rachel Valencia, Meeting Clerk
Item: 5.1
Item Page Number: 2
Menifee Finance Committee January 13, 2026 Page 5 of 250

CITY OF MENIFEE
SUBJECT: Proposed Change to Community Facilities District No. 2025-4, Heritage Village, by Lennar Homes
MEETING DATE: January 13, 2026
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the changes proposed for Community Facilities District No. 2025-4, Heritage Village, to amend the financing plan for certain public improvements within the proposed 162-unit townhome development and recommend submittal to the City Council for consideration.

DISCUSSION
Lennar Homes has approved plans for Heritage Village, a project that includes 162 townhomes on 7.52 acres located west of Menifee Road and north of Rouse Road within the City. On April 2, 2025, the City Council approved Resolution 25-1559 establishing Community Facilities District 2025-4, Heritage Village, (“CFD 2025-4” or “the CFD”) and in May 2025 the City Council approved Ordinance 2025-410 authorizing the levy of special taxes within CFD 2025-4.

Lennar is now requesting that the City revise the financing plan to incorporate Romoland School District fees into the list of approved facilities to be financed with bond proceeds.

When the district was formed last year, it did not appear that there would be enough bond proceeds to cover the cost of school district fees. Since then, however, it was discovered that the cost estimates used to determine the bonding capacity were inaccurate. The fee estimates for both the City and Eastern Municipal Water District (“EMWD”) were based on costs for single- family homes rather than the multifamily homes planned for this project. The multifamily home rates for both agencies are lower than those for single-family homes. This reduction in City and EMWD fees means that bond proceeds could be used to finance a significant portion of school fees.

There are no proposed changes to the size and mix of homes, nor the assigned special taxes.

Item: 6.1
Item Page Number: 1
Menifee Finance Committee January 13, 2026 Page 6 of 250

City of Menifee Staff Report
Proposed Change to Community Facilities District No. 2025-4, Heritage Village, by Lennar Homes
January 13, 2026

Page 2 of 2 ends

3 1
2 3
The effective tax rate would be reduced slightly, only as a factor of anticipated home sale prices increasing since the district was formed last year.

If the requested change is approved, a Joint Community Facilities Agreement with Romoland School District would be brought back to City Council for review.

ATTACHMENTS

1. CFD 2025-4 Proforma Summary

2. CFD 2025-4 Project Map

3. CFD 2025-4 Change Proceeding Proforma

4. CFD 2017-1 Annex 29 Boundary Map

5. CFD 2025-4 Boundary Map

6. CFD 2025-4 Report

7. CFD 2025-4 Change Proceeding Request
Item: 6.1
Item Page Number: 2
Menifee Finance Committee January 13, 2026 Page 7 of 250

CFD 2025‐4 (Heritage Village) – CHANGE PROCEEDING
Proforma Summary Sheet
Applicant: Lennar Homes
Project Description
Acreage Gross: 7.52; Net: 6.85
Development Description Attached Row Townhome Residential Units Number of Units (50 min) 162 Units
Estimated Home Size Range 918 SF to 1,336 SF
Average Home Size 1,190 SF
Average Estimated Home Price $466,505
Total Effective Tax Rate (2.00% Max) 1.81%
CFD Tax Rate Range $2,949 to $3,284
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD Yes, CFD 2017‐1 Tax Zone 29
Maintenance CFD Rate $281/Unit
Bond Sizing Assumptions
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 0‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 1.50%
Total Special Tax Revenues $515,581
Estimated Sources and Uses
Sources
Par Bond Amount $8,690,000
Uses
Reserve Fund $752,223
Capitalized Interest $0
Underwriter Discount $130,350
Cost of Issuance $250,000
Improvement Fund $7,557,427
Allocation of Improvement Fund
Description % of Total
Original
Eligible
Revised
Eligible
Potentially
Funded
City Fees & Facilities 66% $5,939,555 $5,017,822 $5,017,822 City Premium (20%) 5% $349,476 $355,335 $355,335
Eastern Municipal Water District 17% $2,853,317 $1,303,934 $1,303,934 Romoland School District 12% N/A $1,147,403 $880,336 Totals $9,142,348 $7,824,494 $7,557,427
Unfunded $267,067
Item: 6.1
Item Page Number: 3
Menifee Finance Committee January 13, 2026 Page 8 of 250

Proposed Schedule
Finance Committee January 13, 2026
Resolution of Intention March 18, 2026
Public Hearing May 6, 2026
2nd Reading Ordinance May 20, 2026
Item: 6.1
Item Page Number: 4
Menifee Finance Committee January 13, 2026 Page 9 of 250

Item: 6.1
Item Page Number: 5
Menifee Finance Committee January 13, 2026 Page 10 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐4
(Heritage Village)
Tract Nos. 38346
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 123 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 1,000 to Over 1,000 1,250 1,250
Estimated Home Size 918 1,206 1,336 1,190
Estimated Home Price $434,900 $470,900 $480,900 $466,505 Ad‐Valorem Tax Rate (1.00%) $4,349.00 $4,709.00 $4,809.00 $4,665.05 Metro Water East (0.00700%) $30.44 $32.96 $33.66 $32.66 Perris Union HS (0.04712%) $204.92 $221.89 $226.60 $219.82 Mt. San Jacinto Jr. College (0.00254%) $11.05 $11.96 $12.21 $11.85 Subtotal GO Bond Debt $4,595.41 $4,975.81 $5,081.48 $4,929.37 Flood Control Stormwater $3.75 $3.75 $3.75 $3.75
EMWD Standby $26.00 $26.00 $26.00 $26.00
MWD Standby charge $6.94 $6.94 $6.94 $6.94
Valley‐Wide Regional Facilities LMD 88‐1 $5.54 $5.54 $5.54 $5.54 Proposed CFD No. 2017‐1 ‐ Maint Svcs* $280.90 $280.90 $280.90 $280.90 Proposed CFD No. 2025‐4 ‐ Fac Special Tax** $2,949.00 $3,220.00 $3,284.00 $3,182.60 Subtotal Special Assessments and Taxes $3,272.13 $3,543.13 $3,607.13 $3,505.73 Total Annual Property Taxes $7,867.54 $8,518.94 $8,688.61 $8,435.10 Annual Prop. Tax Rates as % of Home Price 1.81% 1.81% 1.81% 1.81% Unit Mix 37                   63                  62                  162 (1)Total CFD ‐ Annual Tax Collections $109,113 $202,860 $203,608 $515,581 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Special Taxes ‐ (2)Admin. / 110% Cov) $93,422 $173,687 $174,328 $441,437 II. Total Estimated Home Square Footage: 33,966           75,978           82,832           192,776 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2026 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $8,690,000 Underwriter Discount (1.50%) $130,350
Reserve Fund (Maximum Annual Debt Service) $752,223
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,132,573 Net Bond Proceeds $7,557,427
Item: 6.1
Item Page Number: 6
Menifee Finance Committee       January 13, 2026        Page 11 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐4
(Heritage Village)
Tract Nos. 38346
Summary of Acreage, Undeveloped Property
And Backup Special Tax Rates
Tract Nos. 38346
162 Lots
(Heritage Village)
I. Calculation of Net Taxable Acres:

Gross Acreage 7.52
Less: Exempt Acres 0.67
Net Taxable Acres 6.85
II. Calculation of Undeveloped Property Tax Rate:

Total Developed Property Revenues $515,581
Net Taxable Acres 6.85
Less: Contingency Factor (10%) 0.69
Net Taxable Acres (Adjusted) 6.17
Undeveloped Property Tax Rate per Acre $83,630
Total Exempt Acreage 1.36
III. Calculation of Backup Special Tax Rate:

A. Backup Special Tax Rate per Unit
Total Taxable Acres 6.85
Undeveloped Property Tax Rate per Acre $83,630
Total Units 162
Backup Special Tax per Unit $3,536
B. Backup Special Tax Rate per Lot Square Foot
Total Developed Property Revenues $515,581
Total Net Acres (Square Feet) 268,547
Backup Special Tax Rate per Lot Square Foot $1.9199
Item: 6.1
Item Page Number: 7
Menifee Finance Committee January 13, 2026 Page 12 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐4
(Heritage Village)
Tract Nos. 38346
Calculation of Bond Sizing and Total Tax Rates
Debt Service No. of Total Annual
Tax Rate Units Collectable Tax Max Tax Rates
Less than 1,000 $2,949 37 $109,113 $130,840
1,000 to 1,250 $3,220 63 $202,860 $222,781
Greater than 1,250 $3,284 62 $203,608 $219,245
Non‐residential Property $83,630
Backup Tax Rate per Unit $3,536
Backup Tax Rate per S.F. $1.9199
162 $515,581 $572,866
Tax Rate for Bonding $493,514
Sizing at Max tax rate $10,000,000
Future Facilities (rounded up) $9,000,000
Range of Home Sizes
Item: 6.1
Item Page Number: 8
Menifee Finance Committee January 13, 2026 Page 13 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐4
(Heritage Village)
Tract Nos. 38346
Use of Bond Proceeds
CFD 2025‐4 Tract Nos. 38346
162 Lots
FUNDING REQUIREMENTS Per Lot (Heritage Village)
City Fees
Law Enforcement $810 $131,220
Fire Facilities $566 $91,692
Circulation $4,012 $649,944
General Govt $1,030 $166,860
Parks and Recreation $1,509 $244,458
Quimby $3,040 $492,500
Subtotal City Fees $10,967 $1,776,674
City Premium (20%) $2,193 $355,335
Total City Fees $13,161 $2,132,009
City Facilities
Menifee Road Utility Undergrounding $10,703 $1,733,912
Menifee/Rouse Road Traffic Signal $580 $93,985
Menifee & Rouse Road, Street, Street Light & Median $8,724 $1,413,251 Total City Facilities $20,007 $3,241,148
Total City Facilities and Fees $33,168 $5,373,157
EMWD Fees
Sewer Financial Participation Charge $2,201 $356,566
Sewer Treatment Plant Capacity Charge $4,173 $675,993
Water Financial Participation Charge $988 $160,007
2" Meter Drop‐In Fee $17 $2,822
1/5" Irrigation Meter Capacity Fee $416 $67,320
1/5" Irrigation Meter Installation Fee $8 $1,322
Water Frontage Fees $246 $39,904
Total EMWD Fees $8,049 $1,303,934
Total EMWD Facilities and Fees $8,049 $1,303,934
Romoland School District Fees
School Developer Fee $7,083 $1,147,403
Total Romoland School District Fees $7,083 $1,147,403
Total Cost $48,299 $7,824,494
Potential Project Funds Available $7,557,427
ALLOCATION OF PROCEEDS % Per Lot Total
City Facilities 43% $20,007 $3,241,148
City Fees 24% $9,852 $1,776,674
City Premium 5% $2,193 $355,335
Other Agency 29% $13,483 $2,184,270
Total Funded by Bond Proceeds 100% $45,536 $7,557,427
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit $0
Unfunded Requirement $267,067
Total Fees to be Funded by Developer $267,067
Item: 6.1
Item Page Number: 9
Menifee Finance Committee January 13, 2026 Page 14 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐4
(Heritage Village)
Tract Nos. 38346
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2026 $515,581 $30,000 $5,000 5.00% $434,500 $439,500 110.48% 2 9/1/2027 $525,893 $30,600 $15,000 5.00% $434,250 $449,250 110.25% 3 9/1/2028 $536,410 $31,212 $25,000 5.00% $433,500 $458,500 110.19% 4 9/1/2029 $547,139 $31,836 $35,000 5.00% $432,250 $467,250 110.28% 5 9/1/2030 $558,081 $32,473 $45,000 5.00% $430,500 $475,500 110.54% 6 9/1/2031 $569,243 $33,122 $55,000 5.00% $428,250 $483,250 110.94% 7 9/1/2032 $580,628 $33,785 $70,000 5.00% $425,500 $495,500 110.36% 8 9/1/2033 $592,241 $34,461 $80,000 5.00% $422,000 $502,000 111.11% 9 9/1/2034 $604,085 $35,150 $95,000 5.00% $418,000 $513,000 110.90% 10 9/1/2035 $616,167 $35,853 $110,000 5.00% $413,250 $523,250 110.91% 11 9/1/2036 $628,490 $36,570 $130,000 5.00% $407,750 $537,750 110.07% 12 9/1/2037 $641,060 $37,301 $145,000 5.00% $401,250 $546,250 110.53% 13 9/1/2038 $653,881 $38,047 $165,000 5.00% $394,000 $559,000 110.17% 14 9/1/2039 $666,959 $38,808 $185,000 5.00% $385,750 $570,750 110.06% 15 9/1/2040 $680,298 $39,584 $205,000 5.00% $376,500 $581,500 110.18% 16 9/1/2041 $693,904 $40,376 $225,000 5.00% $366,250 $591,250 110.53% 17 9/1/2042 $707,782 $41,184 $250,000 5.00% $355,000 $605,000 110.18% 18 9/1/2043 $721,938 $42,007 $275,000 5.00% $342,500 $617,500 110.11% 19 9/1/2044 $736,377 $42,847 $300,000 5.00% $328,750 $628,750 110.30% 20 9/1/2045 $751,104 $43,704 $325,000 5.00% $313,750 $638,750 110.75% 21 9/1/2046 $766,126 $44,578 $355,000 5.00% $297,500 $652,500 110.58% 22 9/1/2047 $781,449 $45,470 $385,000 5.00% $279,750 $664,750 110.72% 23 9/1/2048 $797,078 $46,379 $420,000 5.00% $260,500 $680,500 110.32% 24 9/1/2049 $813,019 $47,307 $455,000 5.00% $239,500 $694,500 110.25% 25 9/1/2050 $829,280 $48,253 $490,000 5.00% $216,750 $706,750 110.51% 26 9/1/2051 $845,865 $49,218 $530,000 5.00% $192,250 $722,250 110.30% 27 9/1/2052 $862,783 $50,203 $570,000 5.00% $165,750 $735,750 110.44% 28 9/1/2053 $880,038 $51,207 $615,000 5.00% $137,250 $752,250 110.18% 29 9/1/2054 $897,639 $52,231 $660,000 5.00% $106,500 $766,500 110.29% 30 9/1/2055 $915,592 $53,275 $710,000 5.00% $73,500 $783,500 110.06% 31 9/1/2056 $933,904 $54,341 $760,000 5.00% $38,000 $798,000 110.22% Total $21,850,034 $1,271,383 $8,690,000 $9,950,750 $18,640,750 110.40% Item: 6.1
Item Page Number: 10
Menifee Finance Committee January 13, 2026 Page 15 of 250

Item: 6.1
Item Page Number: 11
Menifee Finance Committee January 13, 2026 Page 16 of 250

Item: 6.1
Item Page Number: 12
Menifee Finance Committee January 13, 2026 Page 17 of 250

Public Hearing Report
Community Facilities District No. 2025-4
(Heritage Village)
April 2, 2025
Item: 6.1
Item Page Number: 13
Menifee Finance Committee January 13, 2026 Page 18 of 250

Table of Contents

Sections P age ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Facilities ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 5 5 Rate and Method of Apportionment _________________________________________ 6 6 Certifications ______________________________________________________ 7

Tables Page
3-1 Cost Estimate ______________________________________________________ 3 5-1 Assigned Special Tax for Developed Property _________________________________ 6

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

Item: 6.1
Item Page Number: 14
Menifee Finance Committee January 13, 2026 Page 19 of 250

1 Introduction Page | 1
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
Background
On February 19, 2025 the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Fa cilities District No. 2025-4 (Heritage Village) of the City of Menifee (“CFD No. 2025-4” or “District”), Resolution No. 25-1540, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (“Act”).

CFD No. 2025-4 is currently comprised of approximately 7.5 gross acres within Tract Map 38346 including 162 proposed single family residential properties. The property is located on the northwest corner of Menifee Road and Rouse Road.

For a map showing the boundaries of CFD No. 2025-4 please see Appendix B.

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

1. A brief description of CFD No. 2025-4;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2025-4.

3. A brief description of the Boundaries of CFD No. 2025-4; and

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

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

Item: 6.1
Item Page Number: 15
Menifee Finance Committee January 13, 2026 Page 20 of 250

2 Description of Facilities Page | 2
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

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

The types of facilities that are proposed by CFD No. 2025- 4 and financed with the proceeds of special taxes and bonds issued by CFD No. 2025-4 consist of 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 facilitie s, landscaping and trail improv ements, and other public faciliti es of the City, including the foregoing public facilities which are includ ed in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”); and (iii) dry utilities (the “Utilities” and together, with the City Facilities and the Water District F acilities, the “Facilities”) all appurtenances and appurtenant work in co nnection with the foregoing Fac ilities, including the cost of engineering, planning, designing, materials testing, coordi nation, construction staking, construction management and supervision for such Facilities, including the cost of engineer ing, planning, designing, mate rials testing, coordination, construction staking, construction management and supervision for such Facilities.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or special taxes include:
a) The cost of engineering, planning and designing the Facilities; and b) All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and c) Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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

All costs associated with the creation of CFD No. 2025-4, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2025-4, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2025-4 and any obligations.

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

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2025-4.

Item: 6.1
Item Page Number: 16
Menifee Finance Committee January 13, 2026 Page 21 of 250

3 Cost Estimate Page | 3
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2025- 4 Bonds is estimated to be $8,690,000 based upon current dollars (Fiscal Year 2025-26). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2025-4 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2025-4 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $128,313 $128,313
Fire Facilities $89,677 $89,677
Circulation $635,362 $635,362
General Govt $163,050 $163,050
Parks and Recreation $238,903 $238,903
Quimby $492,075 $492,075
City Facilities $349,476 $349,476
Total City Fees $2,096,856 $2,096,856

City Facilities Total Bond Allocation(1)
Menifee Road Utility Undergrounding $1,112,325 $1,112,325 Rouse Road Utility Undergrounding $750,999 $750,999
Menifee/Rouse Road Traffic Signal $112,713 $112,713
Menifee & Rouse Road, Street, Street Light & Median $1,281,941 $1,281,941 Dry Utilities $445,500 $445,500
Design, Planning, Engineering (15%) $488,697 $488,697
Total City Facilities $4,192,175 $4,192,175

Eastern Municipal Water District Fees Total Bond Allocation(1) Sewer Financial Participation Charge $569,268 $569,268 Sewer Treatment Plant Capacity Charge $1,079,244 $655,678 Water Financial Participation Charge $964,715 $0
Water Supply Development Fee $65,934 $0
1" Meter Drop-In Fee $65,610 $0
1/5" Irrigation Meter Capacity Fee $67,320 $0
1/5" Irrigation Meter Installation Fee $1,322 $0
Water Frontage Fees $39,904 $0
Total Eastern Municipal Water District Fees $2,853,317 $1,224,946

Item: 6.1
Item Page Number: 17
Menifee Finance Committee January 13, 2026 Page 22 of 250

3 Cost Estimate Page | 4
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report

Table 3-1
Cost Estimate (Cont’d)

Total Eligible Fees/Improvements $9,142,348 $7,513,977
Incidental Financing Costs $1,176,023
Total Funded by Bond Proceeds $8,690,000

Total Fees/Improvements to be Funded by Developer $1,628,371 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.

Item: 6.1
Item Page Number: 18
Menifee Finance Committee January 13, 2026 Page 23 of 250

4 Proposed Development Page | 5
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
The CFD No. 2025-4 includes approximately 7.5 gross acres located on the northwest corner of Menifee Road and Rouse Road in the City. The property within CFD No. 2025-4 is expected to be developed with 162 single family residential properties. As of Fiscal Year 2025-26 the proposed CFD No. 2025-4 includes the following Assessor's Parcel Numbers:

Assessor’s
Parcel Number
331-250-028
331-250-029
331-250-030
A map showing the boundaries of CFD No. 2025-4 is included in Appendix B.

Item: 6.1
Item Page Number: 19
Menifee Finance Committee January 13, 2026 Page 24 of 250

5 Rate and Method of Apportionment Page | 6
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-4 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2025-4, and provided further that CFD No. 2025-4 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2025-4, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-4, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2025-4 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2025-4 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2070-71 Fiscal Year.

Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2025-26
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

1. Single Family Residential Property RU Less than 1,000 sq. f t $2,949.00

2. Single Family Residential Property RU 1,000 sq. ft to 1,250 sq. f t $3,220.00

3. Single Family Residential Property RU Greater than 1,250 sq. f t $3,284.00

4. Multifamily Property Acre N/A $83,630.00

5. Non-Residential Property Acre N/A $83,630.00

Escalation of Special Taxes
On each July 1, commencing on July 1, 2026 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2025-4, see the attached and incorporated in Appendix A.

Item: 6.1
Item Page Number: 20
Menifee Finance Committee January 13, 2026 Page 25 of 250

6 Certifications Page | 7
City of Menifee
CFD No. 2025-4 (Heritage Village)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2025- 4 and benefits the lands within said CFD No. 2025-4. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: April 2, 2025 SPICER CONSULTING GROUP, LLC

__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE COUNTY

STATE OF CALIFORNIA

Item: 6.1
Item Page Number: 21
Menifee Finance Committee January 13, 2026 Page 26 of 250

Appendix A:

Rate and Method of Apportionment
Item: 6.1
Item Page Number: 22
Menifee Finance Committee January 13, 2026 Page 27 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐4 (HERITAGE VILLAGE) OF THE CITY OF MENIFEE

A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 2025‐4 (Heritage Village) ("CFD No. 2025‐4”). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2025‐4, 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. 2025‐2: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025‐4 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025‐4 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025‐4 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. 2025‐4 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025‐4 for any other administrative purposes of CFD No. 2025‐4, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 2

(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. 2025‐4 have been pledged.

"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.

"Building Permit" means the first legal document issued by the City giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include expired or
cancelled building permits, or any subsequent building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator, provided that following such determination the Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.

"Building Square Footage" or "BSF" means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.

"Calendar Year" means the period commencing January 1 of any year and ending the following December

31. "CFD” or “CFD No. 2025‐4” means Community Facilities District No. 2025‐4 (Heritage Village) established by the City under the Act.

“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

“City” means the City of Menifee, State of California.

"City Council" means the City Council of the City of Menifee, acting as the legislative body of CFD No. 2025‐4.

Item: 6.1
Item Page Number: 24
Menifee Finance Committee January 13, 2026 Page 29 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 3

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

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

"Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.

"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision.

"Fiscal Year" means the period commencing on July 1
st of any year and ending the following June 30th.

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

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

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025‐4 on such Assessor’s Parcel.

“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non‐Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non‐residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.

"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.

"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax Item: 6.1
Item Page Number: 25
Menifee Finance Committee January 13, 2026 Page 30 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 4

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. 2025‐4.

"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. 2025‐4 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. 2025‐4 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. 2025‐4, which are not Exempt Property.

“Taxable Unit” means either a Residential Unit or an Acre.

“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.

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

Item: 6.1
Item Page Number: 26
Menifee Finance Committee January 13, 2026 Page 31 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 5

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. 2025‐4 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

Assessor’s Parcels of Developed
Property shall further be classified as Residential Property or Non‐ Residential Property. Each Assessor’s Parcel of Residential Property shall further be classified as a Single Family Residential Property or Multifamily Property. Each Assessor’s Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.

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

D. MAXIMUM SPECIAL TAX

1. Developed Property

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

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non‐Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 2025‐2026 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

Item: 6.1
Item Page Number: 27
Menifee Finance Committee January 13, 2026 Page 32 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 6

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 1,000 sq. ft $2,949.00

2. Single Family Residential Property RU 1,000 sq. ft to 1,250 sq. ft $3,220.00

3. Single Family Residential Property RU Greater than 1,250 sq. ft $3,284.00

4. Multifamily Property Acre N/A $83,630.00

5. Non‐Residential Property Acre N/A $83,630.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

b. Multiple Land Use Categories

In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use 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 $3,536 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. 2025‐4 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 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 which 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‐

4. 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 two percent (2.00%) of the
amount in effect in the prior Fiscal Year.

Item: 6.1
Item Page Number: 28
Menifee Finance Committee January 13, 2026 Page 33 of 250

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 7

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 $83,630 per Acre.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property

The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $83,630 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 two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing Fiscal Year 2025‐2026 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

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

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

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 Item: 6.1
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Community Facilities District No. 2025‐4 (Heritage Village) Page 8

Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

F. EXEMPTIONS

The
City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non‐Residential Property or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.85 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.85 Acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 6.85 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:

“CFD Facilities” means $9,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient
to provide the facilities under the authorized bonding program for CFD No. 2025‐ 4, 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, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2025‐4.

“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News‐Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Item: 6.1
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Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News‐Record Building Cost Index for the City of Los Angeles.

“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.

“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full

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

Within 15 days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount

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.

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Community Facilities District No. 2025‐4 (Heritage Village) Page 10

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

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

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

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

6. Determine the Future Facilities Costs.

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

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

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

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

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

12. Verify the administrative fees and expenses of the CFD, the cost to invest the Prepayment Amount, the cost of redeeming the Outstanding Bonds, and the cost of recording notices to 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.

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

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

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

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

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

2. Prepayment in Part

The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisions of Section G.1 shall be modified as provided by the following formula:

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

City of Menifee
Community Facilities District No. 2025‐4 (Heritage Village) Page 12

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. 2025‐4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025‐4 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. 2025‐4 have been satisfied.

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. 2025‐4 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.

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Appendix B:

Proposed Boundary Map
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Appendix C:

Resolution of Intention
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EXHIBIT A

BOUNDARY MAP
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EXHIBIT B
Types of Facilities
to Be Financed by Community
Facilities District No. 2025-4 (Heritage Village) of the City of Menifee The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, street, roadway, traffic signal and streetlights, administration and general government facilities, fire and public safety facilities, landscaping and trail improvements, 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”); (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) dry utilities (the “Utilities” and together, with the City Facilities and the Water District Facilities, the “Facilities”) 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.

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EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-4, HERITAGE VILLAGE,

OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise defined herein are defined in Section A, “Definitions”, below) shall be applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the City of Menifee Community Facilities District No. 2025-4 (Heritage Village) ("CFD No. 2025-4”).

The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2025-4, 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. 2025-2: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2025-4 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025-4 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025-4 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. 2025-4 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third-party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2025-4 for any other administrative purposes of CFD No. 2025-4, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 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 Item: 6.1
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issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, 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. 2025-4 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. 2025-4” means Community Facilities District No. 2025-4, Heritage Village, established by the City under the Act.
“CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes. “City” means the City of Menifee, State of California.
"City Council" means the City Council of the City of Menifee, acting as the legislative body of CFD No. 2025-4.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624. "County" means the County of Riverside, State of California.

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"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 1st preceding the Fiscal Year in which the Special Tax is being levied. "Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2025-4 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. "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.

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"Rate and Method of Apportionment" means this Rate and Method of Apportionment of Special Tax for CFD No. 2025-4.
"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. 2025-4 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. 2025-4 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. 2025-4 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. "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- 4 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or 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 Item: 6.1
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Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.

D. MAXIMUM SPECIAL TAX

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

The Maximum Special Tax for each Assessor’s Parcel of Multifamily Property and Non-Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D. a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single-Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 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 1,000 sq. ft $2,949.00

2. Single-Family Residential Property RU 1,000 sq. ft to 1,250 sq. ft $3,220.00

3. Single-Family Residential Property RU Greater than 1,250 sq. ft $3,284.00

4. Multifamily Property Acre N/A $83,630.00

5. Non-Residential Property Acre N/A $83,630.00
On each July 1, commencing July 1, 2026, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

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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 $3,536 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. 2025-4 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.

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. 2025-4.

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 two percent (2.00%) of the amount in effect in the prior Fiscal Year.

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single-Family Residential Property shall be $83,630 per Acre.

On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $83,630 per Acre.

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On each July 1, commencing July 1, 2026, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 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 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) Item: 6.1
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Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 6.85 Acres.

Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 6.85 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 6.85 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $9,000,000 expressed in 2025 dollars, which shall increase by the Construction Inflation Index on July 1, 2026, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the facilities under the authorized bonding program for CFD No. 2025-4, 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. 2025-4.
“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 Item: 6.1
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determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.

Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
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.

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.

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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 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”).

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.

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

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

PP = ((PE – A) x F) + A
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. 2025-4 Bonds have been paid; (ii) all authorized facilities of CFD No. 2025-4 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. 2025-4 have been satisfied.

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. 2025-4 may collect Special Taxes at a different time Item: 6.1
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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.

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28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com

December 16, 2025

Ms. Lauri Lockwood
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 723-1766
E. [email protected]

RE: Request for Amendment of CFD No. 2025-4 (Heritage Village)

Dear Ms. Lockwood,

On behalf of Lennar Homes (“Developer”), we are requesting the City of Menifee (“City”) to amend CFD No. 2025-4 (Heritage Village) (“CFD”) to authorize the financing th e of Romoland School District (“School District”) facilities th rough a JCFA . At the time of CFD formation, the Developer expected Eastern Municipal Water District (“EMWD”) fees to be substantially more . However, due to changes in metering plans the total EMWD fees for the project are now significantly less. As a result, there is additional capacity for funding School District fees.

The attached Exhibit A shows the existing CFD special tax rates under the existing RMA, with the addition of funding school fees under the proposed School District JCFA . There are no other proposed changes to the current CFD special taxes or tax classes , nor the funding amounts allocated to the City because of this proposed amendment. The attached Exhibit B details the total estimated funding for each agency with the addition of the School District JCFA.

We appreciate your consideration of this request and look forward to working with the City team to amend the CFD to authorize school facilities. If you have any questions, please contact me at (949) 542- 7072.

Sincerely,

John Zimmerman
Principal

CC: Shane Spicer, Spicer Consulting Group
Sepideh Bastani, Lennar Homes – Project Manager

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Exhibit A
Lennar Homes - Heritage Village (TR No. 38346)
Proposed City of Menifee CFD No. 2025-4 (Heritage Village) Effective Tax Rate and Bond Sizing Analysis
December 16, 2025
City CFD Assumptions: EMWD CFD
Bond Interest Rate...........................................................................................................................................................................5.00% #### Bond Term (Years)...........................................................................................................................................................................30 30 Annual Admin Expense...........................................................................................................................................................................30,000$ #### Capitalized Interest (Months)...........................................................................................................................................................................- #### Underwriter Discount...........................................................................................................................................................................2.00% #### Costs of Issuance...........................................................................................................................................................................225,000$ #### Debt Service Coverage...........................................................................................................................................................................110% #### Total Special Tax Revenues...........................................................................................................................................................................515,581$ #### Sources & Uses of Proceeds Allocation of Bond Proceeds * Sources 8,895,000$ Agency - Description Per Unit Total Uses City of Menifee DIF 10,967$ 1,776,674$
Reserve Fund 770,194$ City Improvements * 19,374 3,138,560 Capitalized Interest - EMWD Fees 8,049 1,303,934 Underwriter Discount 177,900 Romoland School District 7,083 1,147,403 Costs of Issuance 225,000 Contingency - - City Fee Premium 355,335 Total CFD Proceeds 45,473$ 7,366,571$ Improvement Fund 7,366,571$
Total Uses 8,895,000$ * See Exhibit B for list of eligible City improvements.

Land Use and Property Tax Assumptions
Product Assumptions Plan 1 Plan 2 Plan 3 Total / Avg
Home Square Footage (Estimate) (a) 918 1,206 1,336 1,190 Unit Mix (Estimate) (a) 37 63 62 162 Net Sales Revenue (a) 434,900$ 470,900$ 480,900$ 466,505$ Property Tax Information
Ad Valorem Property Taxes (1.05666%) (b) 4,595.41$ 4,975.81$ 5,081.48$ 4,929.37$ Flood Control Stormwater/Cleanwater (b) 3.75 3.75 3.75 3.75 MWD Standby East (b) 6.94 6.94 6.94 6.94 EMWD Standby - Combined Charge (b) 26.00 26.00 26.00 26.00 Valley-wide Regional Facilities LMD 88-1 (b) 5.54 5.54 5.54 5.54 City of Menifee CFD No. 2017-1 (Maintenance) (Tax A) (c) 283.59 283.59 283.59 283.59 City of Menifee CFD No. 2025-4 (Heritage Village) (d) 2,949.00 3,220.00 3,284.00 3,182.60 Total Estimated Tax Per Unit 7,870.23$ 8,521.63$ 8,691.30$ 8,437.79$ Total Tax Rate % 1.81% 1.81% 1.81% 1.81%
CFD Tax Revenues
City of Menifee CFD No. 2025-4 2,949$ 3,220$ 3,284$ 3,183$ Total City of Menifee CFD No. 2025-4 Revenues 109,113$ 202,860$ 203,608$ 515,581$ Footnotes:
(a) Product and pricing provided by Developer 9/3/24 (excludes incentives, premiums, and options). (b) Based on 2025-2026 property tax bills for subject property and existing units adjacent to project. (d) Represents the estimated City of Menifee CFD special tax, escalating 2.00% annually. (c) Per discussion with the City's tax consultant, represents an illustration of an estimated services tax based on the characteristics of the project, including maintenance for parkway landscape, street lights, streetsweeping, sidewalks, signals, and project share of City- wide parks. The actual amount to be determined based on approved plans and will be subject to the greater of CPI or 2% annual increases.

DRAFT
Item: 6.1
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Exhibit B
Lennar Homes - Heritage Village (TR No. 38346)
Proposed City of Menifee CFD No. 2025-4 (Heritage Village) Preliminary List of CFD Eligible Facilities
December 16, 2025
Per Unit Total
Total Residential Units 162
Wtd. Avg. Sq. Ft. 1,190
City of Menifee (a)
Law Enforcement 810$ $131,220
Fire Facilities 566 $91,692
Circulation 4,012 $649,944
General Government 1,030 $166,860
Parks & Recreation 1,509 $244,458
Quimby Fees (c) ESTIMATE - Land Value of $250K 3,040 $492,500 Total City DIF fees 10,967$ 1,776,674$
City Improvements
Menifee/Rouse Road Trafiic Signal (Estimate) 580$ 93,985$ Menifee & Rouse Street, Street Light, & Median Van Engineering 8,724 1,413,251 Menifee & Rouse - Overhead Utility Undergrounding (Rule 20) 10,703 1,733,912 Total City Improvements 20,007$ 3,241,149$
Total City CFD Funding 30,974$ 5,017,823$
EMWD Fees (b)
Water Financial Participation Charge (21.34 EMS) 988$ $160,007 Sewer Financial Participation Charge (101.47 EDUs) 2,201 $356,566 Sewer Treatment Plant Capacity Charge (101.47 EDUs) 4,173 $675,993 2" Meter Drop in Fee (Qty 2) 17 $2,822
1/5" Irrigation Meter Capacity Fee (2 Meters) $416 $67,320 1/5" Irrigation Meter Installation Fee (2 Meters) $8 $1,322 Water Frontage Fees (Northside of Rouse Rd) (b) $246 $39,904 Subtotal EMWD Fees 8,049$ 1,303,934$
Romoland School District Fees (d)
School Mitigation Fees JCFA Required 7,083$ 1,147,403$ Total Eligible Facilities 46,106$ 7,469,159$
Footnotes
(a) Represents the City of Menifee DIF Fees effective as of July 1, 2025. (b) Represents the EMWD connections fees per EMWD Addenda dated 8/14/25. (d)Eligibility pending City CFD Change Proceeding to authorize and approve a JCFA with Romoland School District. (c) City Quimby Fee based on agreement approved by the City of Menifee 11/5/25.

DRAFT
Item: 6.1
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CITY OF MENIFEE
SUBJECT: Proposed Bond Issuance for Community Facilities District No. 2024-1, Banner Park II
MEETING DATE: January 13, 2026
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District (“CFD”) No. 2024-1, Banner Park II by Pulte Home Co., LLC, to finance the costs of certain public improvements in connection with the development of 182 homes in a community located southeast of Domenigoni Parkway at Lindenberger Road within the City of Menifee (the “City”); and

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

DISCUSSION
Pulte Home Co., LLC, (the “Developer”) owns a residential tract approved for 182 homes within the City. In December 2025, the Developer requested that the City proceed with issuing bonds for CFD No. 2024-1, Banner Park II, (the “Development”) to finance eligible public facilities.

As of mid-December 2025, building permits have been issued for 128 homes. Of these, 65 homes have closed escrow, and 34 homes are sold and currently in escrow. The proposed Series 1 bond issuance for CFD No. 2024-1 is based on 119 homes. According to the City’s tax consultant, Spicer Consulting Group, approximately $6.36 million in bonds could be issued.

A preliminary bond analysis prepared by Spicer Consulting reviewed valuation, delinquency history and effective tax rate to assess the viability of the issuance. The Development demonstrates a strong value-to-lien ratio of 12.25:1 -- which is substantially higher than the City’s policy threshold of 4:1 -- and an estimated average tax rate of 1.9%, which is less than the City’s 2% limit. Because CFD taxes were first levied in Fiscal Year 2025/2026, no delinquencies were reported at the time of the analysis in mid-December.

Item: 6.2
Item Page Number: 1
Menifee Finance Committee January 13, 2026 Page 67 of 250

City of Menifee Staff Report
Proposed Bond Issuance for CFD 2024-1, Banner Park II
January 13, 2026

Page 2 of 2 ends

3 1
2 4
Based on current interest rates, the Series 1 bond issuance is expected to finance approximately $5.1 million in eligible City facilities and fees. The Developer anticipates returning for a final bond issuance when the remaining 63 homes in the Development are near completion.

The intention is to engage Raymond James & Associates, Inc., for this bond issuance.

Table 1 - Summary of CFD 2024-1, Banner Park II, Activity:

Description Date
Finance Committee CFD Formation Review September 12, 2023 Resolution of Intention June 19, 2024
Resolutions of CFD Formation (City Council
Approval)
August 7, 2024 /
August 21, 2024

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. CFD 2024-1 Proforma Summary

2. CFD 2024-1 Project Map

3. CFD 2024-1 Preliminary Bond Sale Analysis

4. CFD 2024-1 Boundary Map

5. CFD 2017-1 Annex 23 Maintenance Exhibit

6. CFD 2024-1 Public Hearing Report

7. CFD 2024-1 Bond Issuance Request
Item: 6.2
Item Page Number: 2
Menifee Finance Committee January 13, 2026 Page 68 of 250

CFD 2024‐1 (Banner Park II)
Proforma Summary Sheet
Applicant: Pulte Homes
Assumptions
Description Amount
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 0‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 1.50%
Total Special Tax Revenues $393,488
Estimated Sources and Uses
Sources
Par Bond Amount $6,360,000
Uses
Reserve Fund   $885,802
Capitalized Interest   $0
Underwriter Discount   $95,400
Cost of Issuance   $250,000
Improvement Fund   $5,128,798
Allocation of Improvement Fund
Description Orig. Eligible Costs 2026 Bonds
City Facilities $6,664,922 $4,162,194
City Fees $1,132,119 $740,180
City Premium $226,424 $226,424
EMWD Fees & Facilities $3,422,662
Menifee USD $637,000
Dry Utilities $508,750
Totals $12,591,877 $5,128,798
Unfunded $7,463,079
Other Items
Acreage Gross: 80.58; Net:

31.30 Development Description Detached Singl
e-Fami
ly Residential
Number
of Units (50 min) 182 Total Units; Bonding on 119 Estimat
ed Home Size Rang
e 2,191 SF to 3,237 SF
Average Home Size 2,615 SF
Average Estimated Home Price $654,713
Total Effecti
ve Tax Rat
e (2% Max) 1.89%‐1.91%
CFD Tax Rate Range $3,011 to $3,773
Escalation (2.00%
Max) Yes, 2.00%
Maintenance CFD CFD 2017‐
1 Tax Zone 23
Maintenance CFD Rat
e $1,326 per Uni
t
Item: 6.2
Item Page Number: 3
Menifee Finance Committee January 13, 2026 Page 69 of 250

Item: 6.2
Item Page Number: 4
Menifee Finance Committee January 13, 2026 Page 70 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2024‐1
(Banner Park II)
Preliminary Bond Analysis
As of 12/12/2025
Preliminary Bond Compliance Table
Requirement 2024‐1

1. Value to Lien(1) 4.00:1 12.25:1

2. Delinquency Levels Less than 5% N/A

3. Effective Tax Rate(2) 2.00% 1.89% ‐ 1.91%
(1) Value to Lien is based upon estimated sizing information and Proposed Home Prices. (2) Range includes FY 2025‐26 enrollment.

1. General Information & Development Status
District Formation Date August 7, 2024
District Est. Assessed Value(1) $77,910,810
Bond Structure 100% Assigned
Estimated Preliminary Par Amount(2)
$6,360,000
Preliminary Value to Lien(3)

12.25:1
(1) District Est. Assessed Value information for units included based on Proposed Home Prices. (2) Par amount estimated based on estimated 5.00% Interest Rate. (3) Value to Lien is based upon estimated sizing information and Proposed Home Prices. 12/17/2025 Ownership Status As Of
Tract No. Land Owner Map Recordation
37671, ‐1, & ‐
2 Pulte Home 6/24/2024
No. Lots @
Buildout
Permits Issued as of
12/17/2025
Developed
Percentage
Sold & In
Escrow to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Three Month
Projection
182 Lots 128 Lots 70% 34 65 10 95 Lots
Remaining 54 Lots Projected Closed of 119 Lots 80%
Permitted of 119 Lots 100%

2. Special Tax Levy & Delinquency Status
No. Parcels FY 2025‐26 Levy(1) Delinquencies(2)
72 $238,288 N/A
(1) FY 2025‐26 was first year levied.
(2) Delinquency information is as of 12/17/2025.

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad‐Valorem Tax Other Taxes CFD Tax Total Tax ETR $654,713 $7,465 $1,664 $3,307 $12,436 1.90%
(1) Based upon Sales Price provided by Pulte on December 17, 2025.

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: 5,128,798$
Sources Total
Bond Proceeds: Par Amount 6,360,000$
Total Sources 6,360,000$
Uses Total
Debt Service Reserve Fund 885,802$
Capitalized Interest ‐$
Underwriter's Discount 95,400$
Cost of Issuance 250,000$
Project Fund Proceeds 5,128,798$
Total Uses 6,360,000$
Criteria
Estimated Average Tax Bill for FY 25‐26
Item: 6.2
Item Page Number: 5
Menifee Finance Committee January 13, 2026 Page 71 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2024‐1
(Banner Park II)
Tract Nos. 37671, 37671‐1 & 37671‐2
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 1234 567 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 2,200 to 2,401 to 2,601 to 2,801 to 3,001 to Over 2,200 2,400 2,600 2,800 3,000 3,200 3,200
Estimated Home Size 2,191 2,391 2,462 2,654 2,824 3,047 3,237 2,615 Estimated Home Price $617,990 $623,990 $654,990 $646,990 $661,990 $699,990 $716,990 $654,713 Ad‐Valorem Tax Rate (1.00%) $6,179.90 $6,239.90 $6,549.90 $6,469.90 $6,619.90 $6,999.90 $7,169.90 $6,547.13 Metro Water West (0.00700%) $43.26 $43.68 $45.85 $45.29 $46.34 $49.00 $50.19 $45.83 Menifee School (0.07500%) $463.49 $467.99 $491.24 $485.24 $496.49 $524.99 $537.74 $491.03 Perris Union HS (0.04712%) $291.20 $294.02 $308.63 $304.86 $311.93 $329.84 $337.85 $308.50 Mt. San Jacinto Jr. College (0.00254%) $15.70 $15.85 $16.64 $16.43 $16.81 $17.78 $18.21 $16.63 EMWD ID U‐35 (0.0043%) $26.57 $26.83 $28.16 $27.82 $28.47 $30.10 $30.83 $28.15 EMWD ID U‐36 (0.0043%) $26.57 $26.83 $28.16 $27.82 $28.47 $30.10 $30.83 $28.15 Subtotal GO Bond Debt $7,046.69 $7,115.11 $7,468.59 $7,377.37 $7,548.41 $7,981.71 $8,175.55 $7,465.43 Flood Control Stormwater / Cleanwater / Santa Ana $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 Valley Wide LMD 88‐1 Parks $311.00 $311.00 $311.00 $311.00 $311.00 $311.00 $311.00 $311.00 Valley Wide Regional Fac LMD 88‐1 $5.54 $5.54 $5.54 $5.54 $5.54 $5.54 $5.54 $5.54 EMWD Standby $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Proposed CFD No. 2017‐1 ‐ Maintenance Services* $1,325.58 $1,325.58 $1,325.58 $1,325.58 $1,325.58 $1,325.58 $1,325.58 $1,325.58 Proposed CFD No. 2024‐1 ‐ Facilities Special Tax** $3,011.04 $3,089.58 $3,265.02 $3,280.32 $3,415.98 $3,638.34 $3,772.98 $3,306.63 Subtotal Special Assessments and Taxes $4,674.88 $4,753.42 $4,928.86 $4,944.16 $5,079.82 $5,302.18 $5,436.82 $4,970.47 Total Annual Property Taxes $11,721.57 $11,868.53 $12,397.45 $12,321.53 $12,628.23 $13,283.89 $13,612.37 $12,435.89 Annual Prop. Tax Rates as % of Home Price 1.90% 1.90% 1.89% 1.90% 1.91% 1.90% 1.90% 1.90% Unit Mix 17 28 27 1 22 10 14 119
(1)Total CFD ‐ Annual Tax Collections $51,188 $86,508 $88,156 $3,280 $75,152 $36,383 $52,822 $393,488 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes ‐ (2)Admin. / 110% Coverage) $42,986 $72,648 $74,031 $2,755 $63,111 $30,554 $44,359 $330,444 II. Total Estimated Home Square Footage: 37,247 66,948 66,474 2,654 62,128 30,470 45,318 311,239 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2026 Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $6,360,000 Underwriter Discount (1.50%) $95,400
Reserve Fund (Maximum Annual Debt Service) $885,802
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $1,231,202 Net Bond Proceeds $5,128,798
Item: 6.2
Item Page Number: 6
Menifee Finance Committee January 13, 2026 Page 72 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2024‐1
(Banner Park II)
Tract Nos. 37671, 37671‐1 & 37671‐2
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2026 $393,488 $30,000 $10,000 5.00% $318,000 $328,000 110.82% 2 9/1/2027 $401,358 $30,600 $15,000 5.00% $317,500 $332,500 111.51% 3 9/1/2028 $409,385 $31,212 $25,000 5.00% $316,750 $341,750 110.66% 4 9/1/2029 $417,573 $31,836 $35,000 5.00% $315,500 $350,500 110.05% 5 9/1/2030 $425,925 $32,473 $40,000 5.00% $313,750 $353,750 111.22% 6 9/1/2031 $434,443 $33,122 $50,000 5.00% $311,750 $361,750 110.94% 7 9/1/2032 $443,132 $33,785 $60,000 5.00% $309,250 $369,250 110.86% 8 9/1/2033 $451,995 $34,461 $70,000 5.00% $306,250 $376,250 110.97% 9 9/1/2034 $461,034 $35,150 $80,000 5.00% $302,750 $382,750 111.27% 10 9/1/2035 $470,255 $35,853 $95,000 5.00% $298,750 $393,750 110.32% 11 9/1/2036 $479,660 $36,570 $105,000 5.00% $294,000 $399,000 111.05% 12 9/1/2037 $489,253 $37,301 $120,000 5.00% $288,750 $408,750 110.57% 13 9/1/2038 $499,039 $38,047 $135,000 5.00% $282,750 $417,750 110.35% 14 9/1/2039 $509,019 $38,808 $150,000 5.00% $276,000 $426,000 110.38% 15 9/1/2040 $519,200 $39,584 $165,000 5.00% $268,500 $433,500 110.64% 16 9/1/2041 $529,584 $40,376 $180,000 5.00% $260,250 $440,250 111.12% 17 9/1/2042 $540,175 $41,184 $200,000 5.00% $251,250 $451,250 110.58% 18 9/1/2043 $550,979 $42,007 $220,000 5.00% $241,250 $461,250 110.35% 19 9/1/2044 $561,998 $42,847 $240,000 5.00% $230,250 $470,250 110.40% 20 9/1/2045 $573,238 $43,704 $260,000 5.00% $218,250 $478,250 110.72% 21 9/1/2046 $584,703 $44,578 $285,000 5.00% $205,250 $490,250 110.17% 22 9/1/2047 $596,397 $45,470 $305,000 5.00% $191,000 $496,000 111.07% 23 9/1/2048 $608,325 $46,379 $335,000 5.00% $175,750 $510,750 110.02% 24 9/1/2049 $620,492 $47,307 $360,000 5.00% $159,000 $519,000 110.44% 25 9/1/2050 $632,901 $48,253 $390,000 5.00% $141,000 $531,000 110.10% 26 9/1/2051 $645,560 $49,218 $420,000 5.00% $121,500 $541,500 110.13% 27 9/1/2052 $658,471 $50,203 $450,000 5.00% $100,500 $550,500 110.49% 28 9/1/2053 $671,640 $51,207 $485,000 5.00% $78,000 $563,000 110.20% 29 9/1/2054 $685,073 $52,231 $520,000 5.00% $53,750 $573,750 110.30% 30 9/1/2055 $698,774 $53,275 $555,000 5.00% $27,750 $582,750 110.77% Total $15,963,071 $1,217,042 $6,360,000 $6,975,000 $13,335,000 110.58% Item: 6.2
Item Page Number: 7
Menifee Finance Committee January 13, 2026 Page 73 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2024‐1
(Banner Park II)
Tract Nos. 37671, 37671‐1 & 37671‐2
Use of Bond Proceeds
All 182 Lots 119 Lots
FUNDING REQUIREMENTS (Banner Park II) 1st Series
City Fees
Law Enforcement $184,184 $120,428
Fire Facilities $128,856 $84,252
Circulation $1,413,048 $923,916
Circulation Credit (Briggs Full Width Credit ‐ Domenigoni to Angler) ($1,190,019) ($778,141) Animal Shelter $18,746 $12,257
General Govt $234,234 $153,153
Parks ‐ Land $343,070 $224,315
Subtotal City Fees $1,132,119 $740,180
City Premium (20%) ‐ All 182 Lots $226,424 $226,424
Total City Fees $1,358,543 $966,604
City Facilities
Traffic Signal (Briggs & Newport) $750,000 $750,000
Traffic Signal Modification (Lindenberger) $570,000 $570,000 Briggs Road $1,400,000 $1,400,000
Storm Drain $1,227,545 $1,227,545
In‐Tract Street Improvements $2,400,000 $2,400,000
Design, Planning & Engineering $317,377 $317,377
Total City Facilities $6,664,922 $6,664,922
Total City Facilities and Fees $8,023,465 $7,631,526
EMWD Fees
Sewer Financial Participation Charge $632,632 $632,632
Sewer Treatment Plant Capacity Charge $1,199,198 $1,199,198 Water Financial Participation Charge $1,349,712 $1,349,712 Water Supply Development Fee $71,526 $71,526
Irrigation Fee $100,980 $100,980
Meter Fee $68,614 $68,614
Total EMWD Fees $3,422,662 $3,422,662
Total EMWD Facilities and Fees $3,422,662 $3,422,662
Total Menifee Union School District Fees $637,000 $637,000 Dry Utilities $508,750 $508,750
Total Cost $12,591,877 $12,199,938
Potential Project Funds Available $5,128,798
ALLOCATION OF PROCEEDS % Total
City Facilities 81% $4,162,194
City Fees 14% $740,180
City Premium 4% $226,424
Other Agency 0% $0
Total Funded by Bond Proceeds 100% $5,128,798
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit $0
Unfunded Requirement $7,463,079
Total Fees to be Funded by Developer $7,463,079
Item: 6.2
Item Page Number: 8
Menifee Finance Committee January 13, 2026 Page 74 of 250

Item: 6.2
Item Page Number: 9
Menifee Finance Committee January 13, 2026 Page 75 of 250

A
B
A
C
D
A
E
SIGNAL
AHEAD
SIGNAL
AHEAD
TR. 37671
TR. 37671-1
TR. 37671-2
TR. 37671-2
PARK
1 OPEN SPACE
LOT 52 O.S.

LOT 55 O.S.

LOT 82 O.S.

LOT 79 O.S.

LOT 54 O.S.

OPENLOT 53 O.S.

DOMENIGONI PARKWAY

BRIGGS ROAD
LOT 80 O.S.

LOT 81 O.S.

OPEN SPACE

OPEN SPACEOPEN SPACE
LOT 56 O.S.

LOT 55 O.S.
2 3
4 5
6 1
2 3
4 5
6 7
8 9
10 11
12 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32
41 42
43 44
45 46
47 48
49 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27 28 29 30 31
323334353637383940414243444546
47 48 49
50 51
1 2
3 4
5 6
7 8
9 10
11 12
17 16
15 14
13 18
19 20212223
24 25
40 41 42
43 44
45 46
47 48
49 50
51 52
53 33
34 35
36 37
38 39
40 50
51 52
53 54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 32
33 34
35 36
37 26
27 28
29 30
31 71
73 74
75 76
77 78
72 39 38
13 LOT 54 O.S.

SPACE
LOT 52 O.S.

2.0%%%
R/W \A1;56'

2.0%%%
\A1;PRKWY.
\A1;36'\A1;10'

2.0%%%
\A1;10'
R/W

2.0%%%
\A1;PRKWY.
6'
S/W
NTS
CITY OF MENIFEE STD. NO. 115, MODIFIED
6'
S/W
A
R/W
{\L ENTRY STREET} {\L }
\A1;80'
\A1;8'
\A1;PRKWY.
\A1;52'

2.0%%%
R/W

2.0%%%
\A1;8'
\A1;PRKWY.

NTS
\A1;20'
\A1;TRAVEL LANE
\A1;26'
\A1;TRAVEL LANE
CITY OF MENIFEE STD. NO. 113 (MODIFIED)
\A1;6'
\A1;S/W

2.0%%%2.0%%%
\A1;6'
\A1;S/W
B
\A1;6'
L.S.

MEDIAN
\A1;TRAIL

LANDSCAPINGR/W
3'
R/W
FL

PER PLAN
1 22
1 \A1;118'\A1;21'
\A1;21'\A1;VARIES

2.0%%%
6'
S/W
\A1;VARIES

LANDSCAPING
\A1;8'
\A1;BIKE LANE\A1;12' \A1;12' \A1;12'
\A1;8'
\A1;BIKE LANE
6'
S/W
\A1;VARIES

2.0%%% 2.0%%%
PROP. PAD
\A1;10'
{\L BRIGGS ROAD}
NTS
CITY OF MENIFEE STD. NO. 110 - MAJOR ROADWAY, 4 LANES
PROPOSED INTERIM IMPROVEMENTS PER TTM 37671

DOMENIGONI PARKWAY TO SOUTH TRACT BOUNDARY
\A1;12'
\A1;38'
\A1;38'

FUTURE IMPROVEMENTS BY OTHERS
C
\A1;12'

STRIPED
MEDIAN

2.0%%%
\A1;VARIES

MEANDERING

MEANDERING
\A1;12'
\A1;134' (EXISTING IMPROVEMENTS)
\A1;21'
\A1;55'
\A1;9'
\A1;12'
\A1;48'

2.0%%%

2.0%%%
\A1;12'
\A1;48' \A1;VARIES

2.0%%%

2.0%%%
{\L DOMENIGONI PARKWAY}
NTS
CITY OF MENIFEE STD. NO. 96 - URBAN ARTERIAL, 6 LANES

2.0%%%
\A1;55'
D

2.0%%%
\A1;12'
\A1;12'
10'

BIKE LANE
6'
S/W
*
*

NO PARKWAY IMPROVEMENTS ARE PROPOSED EAST OF BRIGGS ROAD \A1;12'\A1;12'
10'
BIKE LANE\A1;VARIES
\A1;VARIES6'
\A1;152'
R/W
R/W \A1;IMPROVEMENTS PER TR. 37671\A1; IMPROVEMENTS
\A1;PER TR. 32102

MEANDERING
2:1 SLOPE
PROP. PAD
2:1 SLOPEPROP. PAD

MEANDERING
\A1;VARIES
2:1 SLOPE
PROP. PAD
2:1 SLOPE
PROP. PAD
\A1;21'
\A1;PROPOSED LANDSCAPING

LANDSCAPED MEDIAN
\A1;25'
2%%%2%%%
R/W
\A1;25'
\A1;15'
\A1;15'
\A1;9'
\A1;40'
\A1;40'
\A1;80'
R/W

2%2%
\A1;6'\A1;SW
\A1;9'
\A1;6'
\A1;SW
\A1;10'
\A1;LS
\A1;20' \A1;20'
{\L ENTRY STREET}
NTS
CITY OF MENIFEE STD. NO. 112, MODIFIED
E
Drawing: R:\\395713\\Exhibit\\Maintenance-TR37671\\713 - EXH - TR37671 HOA_CFD Maintenance Facilities.dwg Layout: 36x50 L Saved: 6/11/2024 11:50 AM Plotted: 6/11/2024 11:51 AM By: Mario Sanchez Navas Engineering, Inc.
357 N. SHERIDAN STREET

ENGINEERINGSURVEYING
SUITE 117
CORONA, CALIFORNIA 92880
TEL. (951) 279-1800
FAX (951) 279-4380
0 SCALE: 1"=80'
80 160 240 320
%%UBANNER PARK
%%UBANNER PARK TTM NO. 37671

MAINTENANCE RESPONSIBILITY EXHIBIT
%%UCITY OF MENIFEE

CITY CFD MAINTAINED STREETS
{\LLEGEND}

CITY CFD MAINTAINED SIDEWALKS

CITY CFD MAINTAINED PARKWAY

CITY CFD MAINTAINED STORM DRAIN

CITY CFD MAINTAINED PARK SITE

HOA MAINTAINED OPEN SPACE

CITY CFD MAINTAINED STREET LIGHTS

HOA MAINTAINED

QUANTITY
UNIT
OPEN SPACE LOTS 52, 53, 55 & 82 77,369 SF

HOMEOWNER MAINTAINED LANDSCAPING
115,216 SF
TRACT 37671-1: LOTS 7-15 26, 49 & 50.

TRACT 37671-2: LOTS 1-8, 10-13, 18-32, 41-46, 53-57 & 66-67.

TRACT 37671: LOTS 1-15, 18, 34-37 & 44-49
PARKWAY 18,830 SF

CITY CFD MAINTANED STREET (DOMENIGONI)

CFD MAINTENANCE QUANTITIES

CITY CFD MAINTAINED

QUANTITY UNIT
STREETS 412,660 SF
STREETS 9,548 LF
STREETS (DOMENIGONI) 173,157 SF
STREETS (DOMENIGONI) 3,150 LF
STREETS (BRIGGS) 241,379 SF
STREETS (BRIGGS) 2,001 LF
SIDEWALKS 116,064 SF
PARKWAY 143,090 SF
PARKSITE (PARK & TRIALS) 143,736 SF
SLOPE 205,097 SF
OPEN SPACE 282,872 SF
STORM DRAIN 5,841 LF
V-DITCH 2,844 LF
STREET LIGHTS 50 W 54 EA
STREET LIGHTS 200 W 29 EA
CATCH BASINS 21 EA
STREET TREES 82 EA

HOMEOWNER MAINTAINED SLOPE LANDSCAPING

HOA MAINTAINED PARKWAY

CITY CFD MAINTAINED OPEN SPACE

CITY CFD MAINTAINED SLOPE
Item: 6.2
Item Page Number: 10
Menifee Finance Committee January 13, 2026 Page 76 of 250

Public Hearing Report
Community Facilities District No. 2024-1
(Banner Park II)
August 7, 2024
Item: 6.2
Item Page Number: 11
Menifee Finance Committee January 13, 2026 Page 77 of 250

Table of Contents

Sections P age ____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Facilities ___________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 5 5 Rate and Method of Apportionment _________________________________________ 7 6 Certifications ______________________________________________________ 8

Tables Page
3-1 Cost Estimate ______________________________________________________ 3 5-1 Assigned Special Tax for Developed Property _________________________________ 7

Item: 6.2
Item Page Number: 12
Menifee Finance Committee January 13, 2026 Page 78 of 250

1 Introduction Page | 1
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
Background
On June 19, 2024 the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2024-1 (Banner Park II) of the City of Menifee (“CFD No. 2024-1” or “District”), Resolution No. 24-1447, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter

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

CFD No. 2024-1 is currently comprised of approximately 81 gross acres within Tract Map 37671 including 182 proposed single family residential properties. The property is located to the southeast of Domenigoni Parkway at Lindenberger Road.

For a map showing the boundaries of CFD No. 2024-1 please see Appendix B.

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

1. A brief description of CFD No. 2024-1;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2024-1.

3. A brief description of the Boundaries of CFD No. 2024-1; and

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

Item: 6.2
Item Page Number: 13
Menifee Finance Committee January 13, 2026 Page 79 of 250

2 Description of Facilities Page | 2
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

The types of facilities that are proposed by CFD No. 2024- 1 and financed with the proceeds of special taxes and bonds issued by CFD No. 2024-1 consist of 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, animal shelter facilities, fire and public safety facilities, and other public facilities of th e City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including the acquisition of capacity in the sewer syst em and/or water system of Eastern Municipa l Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”), (iii) interim and permanent school faciliti es of Menifee Union School District, including classrooms, multi-purpose facilities, administration and auxiliary space at sc hool facilities, athletic fields, playgr ounds and recreational facilities and improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities, including such school facilities of Menifee Union School District which are included in Menifee Union School District’s school fee program (the “School Facilities”), and (iv) electrical utility undergrounding and dry utilities (the “Utilities” and together, with the City Facilities, the Water Fa cilities, and the School Facilities, the “Facilities”), and all appurtenances and appurte nant work in connection with the foregoing Fa cilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.

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

All costs associated with the creation of CFD No. 2024-1, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2024-1, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2024-1 and any obligations.

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

Item: 6.2
Item Page Number: 14
Menifee Finance Committee January 13, 2026 Page 80 of 250

3 Cost Estimate Page | 3
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2024- 1 Bonds is estimated to be $10,145,000 based upon current dollars (Fiscal Year 2024-25). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2024-1 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2024-1 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $184,184 $184,184
Fire Facilities $128,856 $128,856
Circulation $1,413,048 $1,413,048
Circulation Credit ($1,190,019) ($1,190,019)
Animal Shelter $18,746 $18,746
General Government $234,234 $234,234
Parks - Land $343,070 $343,070
City Facilities $226,424 $226,424
Total City Fees $1,358,543 $1,358,543

City Facilities Total Bond Allocation(1)
Traffic Signal (Briggs & Newport) $750,000 $750,000
Traffic Signal Modification (Lindenberger) $570,000 $570,000 Briggs Road $1,400,000 $1,400,000
Storm Drain $1,227,545 $1,227,545
In-Tract Street Improvements $2,400,000 $2,400,000
Design, Planning & Engineering $317,377 $317,377
Total City Facilities $6,664,922 $6,664,922

Eastern Municipal Water District Total Bond Allocation(1) Sewer Financial Participation Charge $632,632 $632,632 Sewer Treatment Plant Capacity Charge $1,199,198 $200,926 Water Financial Participation Charge $1,349,712 $0
Water Supply Development Fee $71,526 $0
Irrigation Meter Fee $100,980 $0
Meter Fee $68,614 $0
Total Eastern Municipal Water District $3,422,662 $833,558

Menifee Union School District Total Bond Allocation(1) School Fees $637,000 $0
Total Menifee Union School District $637,000 $0

Item: 6.2
Item Page Number: 15
Menifee Finance Committee January 13, 2026 Page 81 of 250

3 Cost Estimate Page | 4
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
Table 3-1
Cost Estimate (Continued)

Dry Utilities Total Bond Allocation(1)
Dry Utilities $508,750 $0
Total Dry Utilties $508,750 $0

Total Eligible Fees/Improvements $12,591,877 $8,857,023 Incidental Financing Costs $1,287,977
Total Funded by Bond Proceeds $10,145,000

Total Fees/Improvements to be Funded by Developer $3,734,854 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.

Item: 6.2
Item Page Number: 16
Menifee Finance Committee January 13, 2026 Page 82 of 250

4 Proposed Development Page | 5
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
The CFD No. 2024-1 includes approximately 81 gross acres located to the southeast of Domenigoni Parkway at Lindenberger Road in the City. The property within CFD No. 2024-1 is expected to be developed with 182 single family residential properties. As of Fiscal Year 2024-25 the proposed CFD No. 2024-1 includes the following Assessor's Parcel Numbers:

Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
340-580-001 340-580-042 340-590- 030 340-602-005 340-603-037 340-580-002 340-580-043 340-590- 031 340-602-006 340-603-038 340-580-003 340-580-044 340-590- 032 340-602-007 340-603-039 340-580-004 340-580-045 340-590- 033 340-602-008 340-603-040 340-580-005 340-580-046 340-591- 001 340-603-001 340-603-041 340-580-006 340-580-047 340-591- 002 340-603-002 340-603-042 340-580-007 340-581-001 340-591- 003 340-603-003 340-603-043 340-580-008 340-581-002 340-591- 004 340-603-004 340-610-001 340-580-009 340-581-003 340-591- 005 340-603-005 340-610-002 340-580-010 340-581-004 340-591- 006 340-603-006 340-610-003 340-580-011 340-581-005 340-591- 007 340-603-007 340-610-004 340-580-012 340-590-001 340-591- 008 340-603-008 340-610-005 340-580-013 340-590-002 340-591- 009 340-603-009 340-610-006 340-580-014 340-590-003 340-591- 010 340-603-010 340-610-007 340-580-015 340-590-004 340-591- 011 340-603-011 340-610-008 340-580-016 340-590-005 340-591- 012 340-603-012 340-610-009 340-580-017 340-590-006 340-591- 013 340-603-013 340-610-010 340-580-018 340-590-007 340-591- 014 340-603-014 340-610-011 340-580-019 340-590-008 340-591- 015 340-603-015 340-610-012 340-580-020 340-590-009 340-591- 016 340-603-016 340-610-013 340-580-021 340-590-010 340-591- 017 340-603-017 340-610-014 340-580-022 340-590-011 340-591- 018 340-603-018 340-610-015 340-580-023 340-590-012 340-591- 019 340-603-019 340-610-016 340-580-024 340-590-013 340-591- 020 340-603-020 340-610-017 340-580-025 340-590-014 340-591- 021 340-603-021 340-610-018 340-580-026 340-590-015 340-591- 022 340-603-022 340-610-019 340-580-027 340-590-016 340-600- 001 340-603-023 340-610-020 340-580-028 340-590-017 340-600- 002 340-603-024 340-610-021 340-580-029 340-590-018 340-600- 003 340-603-025 340-610-022 340-580-030 340-590-019 340-601- 001 340-603-026 340-610-023 340-580-031 340-590-020 340-601- 002 340-603-027 340-610-024 340-580-032 340-590-021 340-601- 003 340-603-028 340-610-025 340-580-033 340-590-022 340-601- 004 340-603-029 340-610-026 340-580-034 340-590-023 340-601- 005 340-603-030 340-610-027 340-580-035 340-590-024 340-601- 006 340-603-031 340-610-028 340-580-036 340-590-025 340-601- 007 340-603-032 340-610-029 340-580-037 340-590-026 340-602- 001 340-603-033 340-610-030 340-580-038 340-590-027 340-602- 002 340-603-034 340-610-031 Item: 6.2
Item Page Number: 17
Menifee Finance Committee January 13, 2026 Page 83 of 250

4 Proposed Development Page | 6
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
Assessor’s Parcel
Number
340-580-039 340-590-028 340-602- 003 340-603-035 340-610-032 340-580-040 340-590-029 340-602- 004 340-603-036 340-610-033 340-580-041
A map showing the boundaries of CFD No. 2024-1 is included in Appendix B.

Item: 6.2
Item Page Number: 18
Menifee Finance Committee January 13, 2026 Page 84 of 250

5 Rate and Method of Apportionment Page | 7
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2024-1 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2024-1, and provided further that CFD No. 2024-1 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2024-1, unless exempted by law or by the Rate and Method proposed for CFD No. 2024-1, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2024-1 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2024-1 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2067-68 Fiscal Year.

Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2024-25
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

1. Single Family Residential Property RU Less than 2,200 sq. f t $2,952.00

2. Single Family Residential Property RU 2,200 sq. ft to 2,400 sq. f t $3,029.00

3. Single Family Residential Property RU 2,401 sq. ft to 2,600 sq. f t $3,201.00

4. Single Family Residential Property RU 2,601 sq. ft to 2,800 sq. f t $3,216.00

5. Single Family Residential Property RU 2,801 sq. ft to 3,000 sq. f t $3,349.00

6. Single Family Residential Property RU 3,001 sq. ft to 3,200 sq. f t $3,567.00

7. Single Family Residential Property RU Greater than 3,200 sq. f t $3,699.00

8. Multifamily Property Acre N/A $21,187.00

9. Non-Residential Property Acre N/A $21,187.00

Escalation of Special Taxes
On each July 1, commencing on July 1, 2025 the Assigned Special Tax shall increase by two percent (2.0%), of the amount in effect in the prior Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2024-1, see the attached and incorporated in Appendix A.

Item: 6.2
Item Page Number: 19
Menifee Finance Committee January 13, 2026 Page 85 of 250

6 Certifications Page | 8
City of Menifee
CFD No. 2024-1 (Banner Park II)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2024- 1 and benefits the lands within said CFD No. 2024-1. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: August 7, 2024 SPICER CONSULTING GROUP, LLC

__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE COUNTY

STATE OF CALIFORNIA

Item: 6.2
Item Page Number: 20
Menifee Finance Committee January 13, 2026 Page 86 of 250

Appendix A:

Rate and Method of Apportionment
Item: 6.2
Item Page Number: 21
Menifee Finance Committee January 13, 2026 Page 87 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-1 (BANNER PARK II)

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. 2024-1 (Banner Park II) ("CFD No. 2024-1"). The amount of Special Tax to be levied in each Fiscal Year on an Assessor’s Parcel shall be determined by the City Council of the City of Menifee, acting in its ca pacity as the legislative body of CFD No. 2024-1, by applying the appropriate Special Tax for Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped Property that is not Exem pt 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 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. 2024-1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2024-1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No . 2024-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2024-1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2024-1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2024-1 for any other administrative purposes of CFD No. 2024-1, including attorney’s fees and other costs relate d to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 2

"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

"Assessor’s Parcel Map" means an official map of the Assesso r 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, in cluding 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 Special Tax of CFD No. 2024-1 have been pledged.

"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.

"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “B uilding 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 a ssessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the Building Permit for such Assessor’s Parcel.

"Calendar Year" means the period commencing January 1 of any year and ending the following December

31. “CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

"CFD” or “CFD No. 2024-1" means Community Facilities District No. 2024-1 (Banner Park II) established by the City under the Act.

“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. 2024-1.

Item: 6.2
Item Page Number: 23
Menifee Finance Committee January 13, 2026 Page 89 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 3

“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 1352.

"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, and 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 (ii) a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.

"Final Map" means a subdivision of property by recordatio n of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (Ca lifornia Government Code Section 66410 et seq.) or recordation of a Condominium Plan 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.

“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. 2024-1 on such Assessor’s Parcel.

“Multifamily Property” means all Assessor’s Parcels of Develope d Property for which a Building Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator.

"Non-Residential Property" means all Assessor's Parc els of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.

"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.

"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Proportionately” means for Taxable Property that is (i) Develo ped Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the sa me 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 Item: 6.2
Item Page Number: 24
Menifee Finance Committee January 13, 2026 Page 90 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 4

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 pursuan t to the provisions of Section F, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum Acreage set forth in Section F.

"Residential Property" means all Assessor’s Parcels of Develope d 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 an Assessor’s Parcel classified as Single Family Residential Property shall not be considered a Residential Unit for purposes of levying the Special Tax pursuant to Section E.

“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. 2024-1 pursuant to the Act to fund the Special Tax Requirement.

"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding 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, (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. 2024-1 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 Ta x on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (v ii) 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. 2024-1, which are not Exempt Property.

“Taxable Unit” means either a Residential Unit or an Acre.

“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.

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

B. SPECIAL TAX

Commencing Fiscal Year 2024-2025 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

Item: 6.2
Item Page Number: 25
Menifee Finance Committee January 13, 2026 Page 91 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 5

C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 2024-2025, each Assessor’s Parcel within CFD No. 2024-1 shall be classified as Taxable Property or Exempt Proper ty. 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 furthe r 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 fo r such Assessor’s Parcel, based on the classification of such Assessor’s Parc el 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 Developed Property classified as 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 as described below.

The Maximum Special Tax for each Assessor’s Parcel of Developed Property classified as Multifamily Property or Non-Residential Property shall be the applicable Assigned Special Tax described in Table 1 of Section D.

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non-Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 2024-2025 applicable to an Assessor's Parcel of Develope d Property shall be determined pursuant to Table 1 below.

Item: 6.2
Item Page Number: 26
Menifee Finance Committee January 13, 2026 Page 92 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 6

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2024-2025

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

1. Single Family Residential Property RU Less than 2,200 sq. ft $2,952.00

2. Single Family Residential Property RU 2,200 sq. ft to 2,400 sq. ft $3,029.00

3. Single Family Residential Property RU 2,401 sq. ft to 2,600 sq. ft $3,201.00

4. Single Family Residential Property RU 2,601 sq. ft to 2,800 sq. ft $3,216.00

5. Single Family Residential Property RU 2,801 sq. ft to 3,000 sq. ft $3,349.00

6. Single Family Residential Property RU 3,001 sq. ft to 3,200 sq. ft $3,567.00

7. Single Family Residential Property RU Greater than 3,200 sq. ft $3,699.00

8. Multifamily Property Acre N/A $21,187.00

9. Non-Residential Property Acre N/A $21,187.00
On each July 1, commencing July 1, 2025, the Assigned Special Tax for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

b. Multiple Land Use Categories

In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an As sessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property or Approved Property expected to be cla ssified as Single Family Residential Property shall calculated according to the following formula.

B = (U x A) / L

The terms above have the following meanings:

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

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

A = Acreage of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator

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

Item: 6.2
Item Page Number: 27
Menifee Finance Committee January 13, 2026 Page 93 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 7

In the event any portion of the Final Map is cha nged or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $21,187 per Acre.

Notwithstanding the foregoing, the Backup Special Tax for an Assessor’s Parcel of Developed Property for which a certificate of occupancy has been granted may not be revised.

In the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be $21,187 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 2025, the Backup Special Tax shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

2. Approved Property

The Maximum Special Tax for each Assessor’s Parcel of Approved Property not expected to be classified as Single Family Residential Property shall be $21,187 per Acre.

On each July 1, commencing July 1, 2025, the Maxi mum Special Tax rate for Approved Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

3. Undeveloped Property and Provisional Undeveloped Property

The Maximum Special Tax for each Assessor’s Parc el of Undeveloped Property and Provisional Undeveloped Property shall be $21,187 per Acre.

On each July 1, commencing July 1, 2025, the Maximum Special Tax rate for Undeveloped Property and Provisional Undeveloped Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing Fiscal Year 2024-2025 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 Propor tionately on each Assessor’s Parcel of Developed Property at up to 100% of the applicable A ssigned Special Tax in Table 1 to satisfy the Special Tax Requirement.

Step Two: If additional moneys ar e 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.

Item: 6.2
Item Page Number: 28
Menifee Finance Committee January 13, 2026 Page 94 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 8

Step Three: If additional moneys are needed to sa tisfy 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 Sp ecial 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 ar e 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 Undevelo ped 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 re sult of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be in creased 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 CFD Administrator shall classify as Exempt Property, in the followi ng order of priority, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school district s, (ii) Assessor’s Parcels which are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for anything other than the purposes set forth in the easement, (v) Assessor’s Parcels whic h are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels which are classified as Non-Residential Property or (vii) Assessor’s Parcels restricted to other types of p ublic uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 28.2 Acres.

Notwithstanding the above, the CFD Administrator shall not classify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxable Property to less than 28.2 Acres.

Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 28.2 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Taxes pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX

The following additional definitions apply to this Section G:

Item: 6.2
Item Page Number: 29
Menifee Finance Committee January 13, 2026 Page 95 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 9

“CFD Facilities” means $10,250,000 expressed in 2024 dollars, wh ich shall increase by the Construction Inflation Index on July 1, 2025, 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. 2024- 1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.

“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the ci ty of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the city of Los Angeles.

“Future Facilities Costs” means the CFD Facilities minus (i) amo unts 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) pub lic facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.

1. Prepayment in Full

The Special Tax obligation may be prepaid and perm anently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approv ed Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parc els 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 th ere 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 th e 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-re fundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Am ount (as defined below) for the Assessor’s Parcel.

Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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

Item: 6.2
Item Page Number: 30
Menifee Finance Committee January 13, 2026 Page 96 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 10

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 delinquen cies apply to such Assessor’s Parcel.

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

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

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

6. Determine the Future Facilities Costs.

9. Determine the Special Taxes levied on the Asse ssor’s Parcel in the curre nt Fiscal Year which have not yet been paid.

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

Item: 6.2
Item Page Number: 31
Menifee Finance Committee January 13, 2026 Page 97 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 11

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

13. The reserve fund credit (the “Reserve Fund Cr edit”) 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 prepayme nt from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

15. From the Prepayment Amount, the Bond Rede mption 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 Fu nd. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increm ent 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 suit able notice to be recorded in compliance with the Act, to indicate the prepayment of Special Tax oblig ation 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 pr epayment 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 annua l debt service on the Bonds that will remain outstanding after the prepayment plus the estimated annual Administrative Expenses.

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

2. Prepayment in Part

The Special Tax obligation for an Assessor’s Parcel of Developed Property, Approved Property, Item: 6.2
Item Page Number: 32
Menifee Finance Committee January 13, 2026 Page 98 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 12

Undeveloped Property, or Provisional Undeveloped Pr operty may be partially prepaid. For purposes of determining the Partial Prepayment Amount, the provisio ns 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 CF D 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 Prep ayment 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 Parc el for which the Special Tax obligation is partially prepaid, the CFD Administrator shall (i) distribute the Partial Prepayme nt 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 2067-2068 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. 2024-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2024-1 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Sp ecial Taxes remain uncollected and (iv) all other obligations of CFD No. 2024-1 have been satisfied.

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. 2024- 1 may collect Special Taxes at a different time or in a different manner if necessary to meet its fina ncial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

Item: 6.2
Item Page Number: 33
Menifee Finance Committee January 13, 2026 Page 99 of 250

City of Menifee
Community Facilities District No. 2024-1 (Banner Park II) Page 13

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 curre nt in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously le vied must be paid on or before the payment date established when the levy was made. The appeal mu st 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.

Item: 6.2
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Appendix B:

Proposed Boundary Map
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Briggs Rd
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Appendix C:

Resolution of Intention
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28202 CABOT RD | SUITE 620 | LAGUNA NIGUEL, CA 92677
PHONE: (949) 542-7070 | FAX: (949) 542-7076
www.zimmermangroup.com

December 12, 2025

Ms. Lauri Lockwood
City of Menifee
29844 Haun Road
Menifee, CA 92586
T. (951) 723-1766
E. [email protected]

RE: Request for Issuance of Bonds for CFD No. 2024-1 (Banner Park II)

Dear Ms. Lockwood,

On behalf of Pulte Home Company (“Developer”), we are requesting the City of Menifee (“City”) move forward with the issuance of the first series of bonds (“Bonds”) for CFD No. 2024-1 (Banner Park II) (“CFD”).

As you may be aware, t he CFD includes 182 lots within Tract Map No s. 37671, 37671-1 and 37671-2 (the “Project”). However, we would like to issue the first series of bonds based on approximately 106 lots within the Project (“Series 1 Bonds”), which will ensure that Developer owns less than 20% of the lots included in the bond sizing. A summary of the development status of the Project is shown in the table below.

Development Status Units
% of
Total
Closings* 90 49%
Completed Models 6 3%
Under Construction** 27 15%
Finished Lots 59 33%
Total Units 182 100%
*Projected closings as of Jan 31, 2026.

The attached Exhibit A shows the estimated debt service schedule for the Bonds, which results in approximately $4.9M in construction proceeds. This $4.9M would contribute towards the funding of the CFD eligible facilities for the Project..

We appreciate your consideration of this request and look forward to working with the City team to issue the Bonds for the Project. If you have any questions, please contact me at (949) 542-7072.

Sincerely,

John Zimmerman
Principal

CC: Shane Spicer, Spicer Consulting Group
Brian Leung, PulteGroup – Project Manager
Daren Warren, PulteGroup – Vice President
Item: 6.2
Item Page Number: 62
Menifee Finance Committee January 13, 2026 Page 128 of 250

EXHIBIT A
Proposed City of Menifee CFD No. 2024-1
Estimated Debt Service & Bond Sizing Schedule
December 12, 2025

ISSUANCE ASSUMPTIONS ESTIMATED SOURCES AND USES
Closing Date 3/1/2026 Sources
Special Tax Revenue Escalation 2.000% Par Bond Amount 5,700,000$ Annual Administration Expense 30,000$
Administration Expense Escalation 2.000% Uses
Debt Service Coverage Ratio 110% Reserve Fund 510,617$
Underwriter Discount Estimate 1.500% Capitalized Interest - Issuance Costs Estimate 225,000$ Underwriter Discount 85,500 Months of Capitalized Interest - Costs Of Issuance 225,000 Gross Special Tax Revenues 356,651$ Construction Fund 4,878,883 Total Uses 5,700,000$
Estimated Funding Per Unit 26,807$

BOND DEBT SERVICE
Period Gross Priority Capitalized Net Debt Debt Service Ending Revenues Admin Principal Yield Interest Interest Service Coverage 9/1/2026 243,895$ 30,600$ -$ 1.930% 138,926$ -$ 138,926$ 153.53% 9/1/2027 356,651 31,212 15,000 1.930% 277,852 - 292,852 111.13% 9/1/2028 363,784 31,836 20,000 2.180% 277,562 - 297,562 111.56% 9/1/2029 371,060 32,473 30,000 2.530% 277,126 - 307,126 110.24% 9/1/2030 378,481 33,122 35,000 2.930% 276,367 - 311,367 110.92% 9/1/2031 386,051 33,785 40,000 3.230% 275,342 - 315,342 111.71% 9/1/2032 393,772 34,461 50,000 3.430% 274,050 - 324,050 110.88% 9/1/2033 401,647 35,150 60,000 3.680% 272,335 - 332,335 110.28% 9/1/2034 409,680 35,853 65,000 3.930% 270,127 - 335,127 111.55% 9/1/2035 417,874 36,570 75,000 4.130% 267,572 - 342,572 111.31% 9/1/2036 426,231 37,301 85,000 4.280% 264,475 - 349,475 111.29% 9/1/2037 434,756 38,047 95,000 4.380% 260,837 - 355,837 111.49% 9/1/2038 443,451 38,808 110,000 4.430% 256,676 - 366,676 110.35% 9/1/2039 452,320 39,584 120,000 4.510% 251,803 - 371,803 111.01% 9/1/2040 461,366 40,376 135,000 4.580% 246,391 - 381,391 110.38% 9/1/2041 470,594 41,184 150,000 4.650% 240,208 - 390,208 110.05% 9/1/2042 480,006 42,007 160,000 4.710% 233,233 - 393,233 111.38% 9/1/2043 489,606 42,847 180,000 4.780% 225,697 - 405,697 110.12% 9/1/2044 499,398 43,704 195,000 4.830% 217,093 - 412,093 110.58% 9/1/2045 509,386 44,578 210,000 4.880% 207,674 - 417,674 111.28% 9/1/2046 519,573 45,470 230,000 4.930% 197,426 - 427,426 110.92% 9/1/2047 529,965 46,379 250,000 4.980% 186,087 - 436,087 110.89% 9/1/2048 540,564 47,307 270,000 5.030% 173,637 - 443,637 111.18% 9/1/2049 551,376 48,253 295,000 5.130% 160,056 - 455,056 110.56% 9/1/2050 562,403 49,218 320,000 5.130% 144,923 - 464,923 110.38% 9/1/2051 573,651 50,203 345,000 5.130% 128,507 - 473,507 110.55% 9/1/2052 585,124 51,207 370,000 5.130% 110,808 - 480,808 111.05% 9/1/2053 596,827 52,231 400,000 5.130% 91,827 - 491,827 110.73% 9/1/2054 608,763 53,275 430,000 5.130% 71,307 - 501,307 110.81% 9/1/2055 620,938 54,341 465,000 5.130% 49,248 - 514,248 110.18% 9/1/2056 633,357 55,428 495,000 5.130% 25,394 - 520,394 111.06% Total 14,712,549 1,296,811 5,700,000 5.00% 6,350,557 - 12,050,557 110.05% Item: 6.2
Item Page Number: 63
Menifee Finance Committee January 13, 2026 Page 129 of 250

CITY OF MENIFEE
SUBJECT: Proposed Bond Issuance for Community Facilities District No. 2022-3, Improvement Area 1, Legado
MEETING DATE: January 13, 2026
TO: Finance Committee
PREPARED BY: Lauri Lockwood, Financial Analyst
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District (“CFD”) No. 2022-3, Improvement Area 1, Legado by Lennar Homes of California, LLC, to finance the costs of certain public improvements in connection with the development of 1,022 homes in a community located northwest of Antelope Road and Chambers Avenue and south of Rouse Road within the City of Menifee (the “City”); and

2. Recommend the Finance Department proceed with the preparation of the Official Statement and other legal documents related to the transaction for presentation to the City Council.

DISCUSSION
Lennar Homes of California, LLC, (the “Developer”) is developing a residential tract located northwest of Antelope Road and Chambers Avenue and south of Rouse Road within the City. In December 2025, the Developer requested that the City initiate the process to issue bonds for CFD No. 2022-3, Improvement Area 1 (“IA1”) Legado, (the “Development”) to finance eligible public facilities. The overall development includes 1,022 homes, with 491 homes in IA1.

As of mid-December 2025, permits have been issued for 234 homes. Of these, 99 homes have closed escrow, and 23 homes are sold and currently in escrow. The proposed Series 1 bond issuance for CFD No. 2023-2 IA1 is based on 226 homes. According to the City’s tax consultant, Spicer Consulting Group, approximately $13 million in bonds could be issued.

Spicer Consulting conducted a preliminary bond analysis that reviewed delinquency history, valuation and effective tax rate to evaluate the feasibility of the issuance. Because CFD taxes were first levied in Fiscal Year 2025/2026, no delinquencies were reported at the time of the analysis. The Development demonstrates a strong value-to-lien ratio of 10.72:1 – well above the Item: 6.3
Item Page Number: 1
Menifee Finance Committee January 13, 2026 Page 130 of 250

City of Menifee Staff Report
Proposed Bond Issuance for Community Facilities District No. 2022-3, Improvement Area 1, Legado
January 13, 2026

Page 2 of 2 ends

3 1
2 9
City’s policy threshold of 4:1 – and an estimated average tax rate ranging from 1.92% to 2.03%.

This indicates that some homes in IA1 exceed the 2% maximum tax rate allowed under City policy. To ensure compliance with that policy, an updated analysis will be completed prior to the bond issuance. For any homes exceeding the limit, the tax rate will be reduced to 2%, and the Developer will be responsible for paying the difference owed for the term of the bonds. This obligation would be handled as a prepayment and follow the rules established for prepayments in the Rate and Method of Apportionment (“RMA”) for CFD 2022-3, IA1.

Based on current interest rates, the Series 1 bond issuance is expected to finance approximately $10.1 million in eligible City facilities and fees. The Developer anticipates requesting a final bond issuance when the remaining 265 homes in Improvement Area 1 are nearing completion.

The intention is to engage Stifel, Nicolaus and Company, Inc., for this bond issuance.

Table 1 - Summary of CFD 2022-3, IA1, Legado, Activity:

Description Date
Finance Committee CFD Formation Review April 27, 2022
Resolution of Intention August 3, 2022
Resolutions of CFD Formation (City Council
Approval)
September 21, 2022 /
October 5, 2022
Lennar later initiated change proceedings to amend the
RMA to adjust home sizes/anticipated home pricing
Finance Committee CFD Formation Review February 25, 2025 Resolution of Intention June 4, 2025
Resolutions of CFD Formation (City Council
Approval)
July 16, 2025 / August 6, 2025

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. CFD 2022-3 IA1 Proforma Summary

2. CFD 2022-3 IA1 Project Map

3. CFD 2022-3 IA1 Preliminary Bond Sale Analysis

4. CFD 2022-3 IA1 Amended Boundary Map

5. CFD 2017-1 Annex 12 Maintenance Exhibit

6. CFD 2022-3 IA1 CFD Report

7. CFD 2022-3 IA1 Bond Issuance Request
Item: 6.3
Item Page Number: 2
Menifee Finance Committee January 13, 2026 Page 131 of 250

CFD 2022‐3 IA 1 (Legado)
Proforma Summary Sheet
Applicant: Lennar Homes
Assumptions
Description Amount
Average Coupon 5.00%
Priority Administration $30,000
Cost of Issuance $250,000
Capitalized Interest Period 0‐months
Special Tax Escalation 2%
Bond Term 30 Years
Underwriter Discount 1.50%
Total Special Tax Revenues $773,559
Estimated Sources and Uses
Sources
Par Bond Amount $13,050,000
Uses
Reserve Fund   $2,479,133
Capitalized Interest   $0
Underwriter Discount   $195,750
Cost of Issuance   $250,000
Improvement Fund   $10,125,117
Allocation of Improvement Fund
Description Eligible Costs 2026 Bonds
City Facilities $16,089,360 $8,382,362
City Fees $1,523,278 $1,523,278
City Premium $219,477 $219,477
EMWD Fees & Facilities $4,846,817
Dry Utilities $1,624,500
Totals $24,303,432 $10,125,117
Unfunded   $14,178,315
Other Items
Acreage Gross: 143.73; Net: 75.34
Development Description Detached Single Family Residential Number of Units (50 min) 226 Developed Units; 491 Total Units Estimated Home Size Range 1,539 SF to 4,184 SF
Average Home Size 2,267 SF
Average Estimated Home Price $619,236
Total Effective Tax Rate (2% Max) 2.00%
CFD Tax Rate Range $2,975 to $5,108
Escalation (2.00% Max) Yes, 2.00%
Maintenance CFD CFD 2017‐1 Tax Zone 12
Maintenance CFD Rate $1,076 per Unit

Item: 6.3
Item Page Number: 3
Menifee Finance Committee January 13, 2026 Page 132 of 250

Item: 6.3
Item Page Number: 4
Menifee Finance Committee January 13, 2026 Page 133 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2022‐3 IA 1
(Legado)
Preliminary Bond Analysis
As of 12/17/2025
Preliminary Bond Compliance Table
Requirement 2022 ‐3 IA 1

1. Value to Lien(1) 4.00:1 10.72:1

2. Delinquency Levels Less than 5% 0.00%

3. Effective Tax Rate(2) 2.00% 1.92% ‐ 2.03%
(1) Value to Lien is based upon estimated sizing information and Proposed Home Prices. (2) Range includes FY 2025‐26 enrollment.

1. General Information & Development Status
District Formation Date September 21, 2022
District Assessed Value(1) $139,947,265
Bond Structure 100% Assigned
Estimated Preliminary Par Amount(2) $13,050,000
Preliminary Value to Lien(3) 10.72:1
(1) District Est. Assessed Value information for units included based on Proposed Home Prices. (2) Par amount estimated based on estimated 5.00% Interest Rate. (3) Value to Lien is based upon estimated sizing information, Proposed Home Prices, and estimated bond amount. 12/17/2025 Ownership Status As Of
Tract No. Land Owner Map Recordation
Several Lennar Homes 11/21/2024
No. Lots @
Buildout
Permits Issued as of
12/17/2025 Developed Percentage
Sold & In
Escrow to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Five Month
Projection
491 Lots 234 Lots 48% 23 99 12 159 Lots
Remaining 257 Lots Projected Closed of 226 Lots 70%
Permitted of 226 Lots 104%

2. Special Tax Levy & Delinquency Status
No. Parcels FY 2025‐26 Levy(1) Delinquencies(2)
102 $354,099 N/A
(1) FY 2025‐26 was first year levied.
(2) Delinquency information is as of 12/17/2025.

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad‐Valorem Tax Other Taxes CFD Tax Total Tax ETR $619,236 $7,008 $1,952 $3,423 $12,383 2.00%
(1) Based upon Sales Price provided by Lennar Homes on December 17, 2025.

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: 10,125,117 $
Sources Total
Bond Proceeds: Par Amount 13,050,000 $
Total Sources 13,050,000 $
Uses Total
Debt Service Reserve Fund 2,479,133 $
Capitalized Interest ‐$
Underwriter's Discount 195,750 $
Cost of Issuance 250,000 $
Project Fund Proceeds 10,125,117 $
Total Uses 13,050,000 $
Criteria
Estimated Average Tax Bill for FY 25‐26
Item: 6.3
Item Page Number: 5
Menifee Finance Committee January 13, 2026 Page 134 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2022-3 IA 1
(Legado)
Tract Nos. 37408 & 37409
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Tax Zone
Class 1 23456789 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 Planning Area 1/8 1/8 1/8 1/8 10 3/10 3/10 332222 4 / 9 4 / 9 4 / 9 CFD TOTAL Range of Home Sizes in Square Feet per RMA Under 1,600 to 1,801 to Over Under 1,900 to 2,101 to 2,301 to Over Under 1,900 to 2,101 to 2,301 to 2,501 to 2,701 to 2,901 to 3,101 to 3,301 to Over 1,600 1,800 2,000 2,000 1,900 2,100 2,300 2,500 2,500 1,900 2,100 2,300 2,500 2,700 2,900 3,100 3,300 3,500 3,500 Estimated Home Size 1,539 1,696 1,862 2,069 1,539 1,936 2,200 2,468 2,589 1,539 1,936 2,231 2,447 2,662 2,760 3,010 3,401 3,793 4,184 2,267 Estimated Home Price $541,835 $535,585 $555,72 0 $581,585 $541,835 $586,47 0 $597,970 $643,694 $697,450 $541,835 $586,47 0 $613,420 $638,266 $663,112 $675,065 $695,795 $743,99 8 $792,202 $840,405 $619,236 Ad-Valorem Tax Rate (1.00%) $5,418.35 $5,355.85 $5,557.20 $5,815.85 $5,418.35 $5,864.70 $5,979.70 $6,436.94 $6,974.50 $5,418.35 $5,864.70 $ 6,134.20 $6,382.66 $6,631.12 $6,750.65 $6,957.95 $7,439.98 $7,922.02 $8,404.05 $6,192.36 Metro Water West (0.00700%) $37.93 $37.49 $38.90 $40.71 $37.93 $41.05 $41.86 $45.06 $48.82 $37.93 $41.05 $42.94 $44.68 $46.42 $47.25 $48.71 $52. 08 $55.45 $58.83 $43.35 Menifee School (0.07500%) $406.38 $401.69 $416.79 $436.19 $406.38 $439.85 $448.48 $482.77 $523.09 $406.38 $439.85 $460.07 $478.70 $497.33 $506 .30 $521.85 $558.00 $594.15 $630.30 $464.43 Perris Union HS (0.04712%) $255.31 $252.37 $261.86 $274.04 $255.31 $276.34 $281.76 $303.31 $328.64 $255.31 $276.34 $289.04 $300.75 $312.46 $31 8.09 $327.86 $350.57 $373.29 $396.00 $291.78 Mt. San Jacinto Jr. College (0.00254%) $13.76 $13.60 $14.12 $14.77 $13.76 $14.90 $15.19 $16.35 $17.72 $13.76 $14.90 $15.58 $16.21 $16.84 $17.1 5 $17.67 $18.90 $20.12 $21.35 $15.73 Subtotal GO Bond Debt $6,131.73 $6,061.00 $6,288.86 $6,581.56 $6,131.73 $6,636.85 $6,766.99 $7,284.43 $7,892.76 $6,131.73 $6,636.85 $6,941. 83 $7,223.00 $7,504.17 $7,639.44 $7,874.03 $8,419.53 $8,965.03 $9,510.53 $7,007.64 Perris Union High School District CFD 92-1 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $ 342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 Flood Control Stormwater / Cleanwater / Santa Ana $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3.78 $3 .78 $3.78 $3.78 $3.78 $3.78 EMWD Standby $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 Menifee Union School District CFD 2022-1 $347.2 0 $382.62 $420.07 $466.77 $347.2 0 $436.76 $496.32 $556.78 $584.08 $347.2 0 $436.76 $503.31 $551.93 $600.55 $622.66 $679.06 $767.3 4 $855.63 $943.91 $511.40 CFD No. 2017-1 - Maintenance Services $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 $1,076.14 CFD No. 2022-3 - Facilities Special Tax $2,975.00 $2,984.00 $3,069.00 $3,163.00 $3,019.00 $3,201.00 $3,264.00 $3,397.00 $3,457.00 $3,019. 00 $3,201.00 $3,345.00 $3,563.00 $3,781.00 $3,907.00 $4,009.00 $4,375.00 $4,741.00 $5,108.00 $3,422.83 Subtotal Special Assessments and Taxes $4,763.04 $4,807.46 $4,929.91 $5,070.61 $4,807.04 $5,078.61 $5,201.17 $5,394.63 $5,481.92 $4,807.0 4 $5,078.61 $5,289.16 $5,555.78 $5,822.39 $5,970.50 $6,128.90 $6,583.19 $7,037.47 $7,492.76 $5,375.07 Total Annual Property Taxes $10,894.77 $10,868.46 $11,218.77 $11,652.18 $10,938.77 $11,715.45 $11,968.15 $12,679.05 $13,374.69 $10,938.77 $11,715.45 $12,230.99 $12,778.78 $13,326.57 $13,609.94 $14,002.93 $15,002.72 $16,002.50 $17,003.28 $12,382.71 Annual Prop. Tax Rates as % of Home Price 2.01% 2.03% 2.02% 2.00% 2.02% 2.00% 2.00% 1.97% 1.92% 2.02% 2.00% 1.99% 2.00% 2.01% 2.02% 2.01% 2.02% 2 .02% 2.02% 2.00% Unit Mix 16 16 16 16 5 23 19 10 19 10 15 8 1 12 15 11 - - 14 226 (1)Total CFD - Annual Tax Collections (2% Escalator) $47,600 $47,744 $49,104 $50,608 $15,095 $73,623 $62,016 $33,970 $65,683 $30,190 $48,0 15 $26,760 $3,563 $45,372 $58,605 $44,099 $0 $0 $71,512 $773,559 (2)Administration $30,000
Total Annual Special Taxes for Bonding
((1)Total Special Taxes - (2)Admin. / 110% Coverage) $41,595 $41,720 $42,909 $44,223 $13,191 $64,334 $54,192 $29,684 $57,396 $26,381 $41,957 $23,384 $3,113 $39,648 $51,211 $38,535 $0 $0 $62,490 $675,963 II. Total Estimated Home Square Footage: 24,624 27,136 29,792 33,104 7,695 44,528 41,800 24,680 49,191 15,390 29,040 17,848 2,447 31,944 41,400 33,110 - - 58,576 512,305 III. CFD Bond Sizing & Construction Proceeds:

Bond Amount (5.00% Interest, 30 Year Term, 29 Year Amortization) $13,050,000 Underwriter Discount (1.50%) $195,750
Reserve Fund (Maximum Annual Debt Service) $2,479,133
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) - 1st Series of Bonds $250,000 Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $2,924,883 Net Bond Proceeds $10,125,117
12 3
Item: 6.3
Item Page Number: 6
Menifee Finance Committee January 13, 2026 Page 135 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2022-3 IA 1
(Legado)
Tract Nos. 37408 & 37409
Revenue Coverage - Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2026 $773,559 $30,000 $20,000 5.00% $652,500 $672,500 110.57% 2 9/1/2027 $789,030 $30,600 $35,000 5.00% $651,500 $686,500 110.48% 3 9/1/2028 $804,811 $31,212 $50,000 5.00% $649,750 $699,750 110.55% 4 9/1/2029 $820,907 $31,836 $65,000 5.00% $647,250 $712,250 110.79% 5 9/1/2030 $837,325 $32,473 $85,000 5.00% $644,000 $729,000 110.40% 6 9/1/2031 $854,072 $33,122 $105,000 5.00% $639,750 $744,750 110.23% 7 9/1/2032 $871,153 $33,785 $125,000 5.00% $634,500 $759,500 110.25% 8 9/1/2033 $888,576 $34,461 $145,000 5.00% $628,250 $773,250 110.46% 9 9/1/2034 $906,348 $35,150 $170,000 5.00% $621,000 $791,000 110.14% 10 9/1/2035 $924,475 $35,853 $195,000 5.00% $612,500 $807,500 110.05% 11 9/1/2036 $942,964 $36,570 $220,000 5.00% $602,750 $822,750 110.17% 12 9/1/2037 $961,823 $37,301 $245,000 5.00% $591,750 $836,750 110.49% 13 9/1/2038 $981,060 $38,047 $275,000 5.00% $579,500 $854,500 110.36% 14 9/1/2039 $1,000,681 $38,808 $305,000 5.00% $565,750 $870,750 110.46% 15 9/1/2040 $1,020,695 $39,584 $340,000 5.00% $550,500 $890,500 110.18% 16 9/1/2041 $1,041,109 $40,376 $375,000 5.00% $533,500 $908,500 110.15% 17 9/1/2042 $1,061,931 $41,184 $410,000 5.00% $514,750 $924,750 110.38% 18 9/1/2043 $1,083,169 $42,007 $450,000 5.00% $494,250 $944,250 110.26% 19 9/1/2044 $1,104,833 $42,847 $490,000 5.00% $471,750 $961,750 110.42% 20 9/1/2045 $1,126,929 $43,704 $535,000 5.00% $447,250 $982,250 110.28% 21 9/1/2046 $1,149,468 $44,578 $580,000 5.00% $420,500 $1,000,500 110.43% 22 9/1/2047 $1,172,457 $45,470 $630,000 5.00% $391,500 $1,021,500 110.33% 23 9/1/2048 $1,195,906 $46,379 $685,000 5.00% $360,000 $1,045,000 110.00% 24 9/1/2049 $1,219,825 $47,307 $740,000 5.00% $325,750 $1,065,750 110.02% 25 9/1/2050 $1,244,221 $48,253 $795,000 5.00% $288,750 $1,083,750 110.35% 26 9/1/2051 $1,269,106 $49,218 $860,000 5.00% $249,000 $1,109,000 110.00% 27 9/1/2052 $1,294,488 $50,203 $925,000 5.00% $206,000 $1,131,000 110.02% 28 9/1/2053 $1,320,377 $51,207 $990,000 5.00% $159,750 $1,149,750 110.39% 29 9/1/2054 $1,346,785 $52,231 $1,065,000 5.00% $110,250 $1,175,250 110.15% 30 9/1/2055 $1,373,721 $53,275 $1,140,000 5.00% $57,000 $1,197,000 110.31% Total $31,381,803 $1,217,042 $13,050,000 $14,301,250 $27,351,250 110.29% Item: 6.3
Item Page Number: 7
Menifee Finance Committee January 13, 2026 Page 136 of 250

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2022-3 IA 1
(Legado)
Tract Nos. 37408 & 37409
Use of Bond Proceeds
491 Lots 201 Lots 330 Lots 1022 Lots 226 Lots
FUNDING REQUIREMENTS IA 1 IA 2 IA 3 Total 1st Series
City Fees
Law Enforcement $113,421 $44,945 $73,789 $232,155 $52,206 Fire Facility $301,474 $119,463 $196,133 $617,070 $138,764 General Government $501,311 $198,651 $326,143 $1,026,105 $230,746 Pulic Use Facilities $75,614 $29,963 $49,193 $154,770 $34,804 Parks - Land Acquisition $105,565 $41,831 $68,679 $216,075 $48,590 Subtotal DIF $1,097,385 $434,853 $713,937 $2,246,175 $505,110 City Projects $219,477 $86,971 $142,787 $449,235 $219,477 Fair Share Traffic Impact Fee $2,212,038 $876,548 $1,439,109 $4,527,695 $1,018,168 Total City Fees $3,528,900 $1,398,371 $2,295,834 $7,223,105 $1,742,755 City Facilities
Circulation Facilities $7,527,503 $2,986,277 $4,902,843 $15,416,623 $7,527,503 Circulation Reimbursements $0 ($148,524) ($243,845) ($392,369) $0 Net Circulation Facilities $7,527,503 $2,837,753 $4,658,998 $15,024,254 $7,527,503 Storm Drain Facilities $1,495,000 $1,776,635 $2,916,864 $6,188,499 $1,495,000 Storm Drain Reimbursements $0 ($320,105) ($525,545) ($845,650) $0 Net Storm Drain Facilities $1,495,000 $1,456,530 $2,391,319 $5,342,849 $1,495,000 Park Facilities $1,380,000 $2,094,144 $3,438,146 $6,912,290 $1,380,000 Park Reimbursements $0 ($442,523) ($726,529) ($1,169,052) $0 Net Park Facilities $1,380,000 $1,651,621 $2,711,617 $5,743,238 $1,380,000 Interior Road Improvements $5,686,857 $4,516,925 $7,415,847 $17,619,629 $5,686,857 Total City Facilities $16,089,360 $10,462,830 $17,177,780 $43,729,970 $16,089,360 Total City Fees and Facilities $19,618,260 $11,861,201 $19,473,614 $50,953,075 $17,832,115 EWMD Fees
Sewer Financial Participation $1,725,374 $624,164 $1,024,748 $3,374,286 $794,164 Sewer Treatment Capacity $3,271,042 $1,183,150 $1,942,484 $6,396,676 $1,505,612 Water Financial Participation $3,681,518 $1,331,797 $2,186,533 $7,199,848 $1,694,548 Water Supply Development Fee $198,855 $72,378 $118,830 $390,063 $91,530 1" Meter Drop-In Fee $199,837 $73,351 $120,427 $393,615 $91,982 Landscape Meter Connection 1 @ 3" $204,180 $78,399 $128,714 $411,293 $93,981 Landscape Meter Connection 7 @ 1.5" $0 $35,283 $57,927 $93,210 $0 Landscape Meter Connection 7 @ 1" $0 $14,113 $23,171 $37,284 $0 Proposed Facilities - TBD $575,000 $0 $0 $575,000 $575,000 Total EMWD Fees $9,855,806 $3,412,635 $5,602,834 $18,871,275 $4,846,817 Dry Utilities $1,624,500 $0 $0 $1,624,500 $1,624,500
Total Cost $31,098,566 $15,273,836 $25,076,448 $71,448,850 $24,303,432 Potential Project Funds Available $25,568,604 $9,595,492 $14,954,029 $50,118,126 $10,125,117 ALLOCATION OF PROCEEDS % IA 1 IA 2 IA 3 Total 1st Series City Projects 2% $219,477 $86,971 $142,787 $449,235 $219,477 City Fees 15% $3,309,423 $1,311,401 $2,153,046 $6,773,870 $1,523,278 City Facilities 83% $16,089,360 $8,197,121 $12,658,195 $36,944,676 $8,382,362 EMWD Fees 0% $5,950,344 $0 $0 $5,950,344 $0
Total Funded by Bond Proceeds 100% $25,568,604 $9,595,492 $14,954,029 $50,118,125 $10,125,117

UNFUNDED REQUIREMENTS
Total to be Funded by Developer $5,529,962 $5,678,344 $10,122,419 $21,330,725 $14,178,315 Item: 6.3
Item Page Number: 8
Menifee Finance Committee January 13, 2026 Page 137 of 250

Item: 6.3
Item Page Number: 9
Menifee Finance Committee January 13, 2026 Page 138 of 250

Item: 6.3
Item Page Number: 10
Menifee Finance Committee January 13, 2026 Page 139 of 250

Item: 6.3
Item Page Number: 11
Menifee Finance Committee January 13, 2026 Page 140 of 250

Item: 6.3
Item Page Number: 12
Menifee Finance Committee January 13, 2026 Page 141 of 250

Item: 6.3
Item Page Number: 13
Menifee Finance Committee January 13, 2026 Page 142 of 250

Item: 6.3
Item Page Number: 14
Menifee Finance Committee January 13, 2026 Page 143 of 250

Item: 6.3
Item Page Number: 15
Menifee Finance Committee January 13, 2026 Page 144 of 250

Item: 6.3
Item Page Number: 16
Menifee Finance Committee January 13, 2026 Page 145 of 250

Item: 6.3
Item Page Number: 17
Menifee Finance Committee January 13, 2026 Page 146 of 250

CODE DESCRIPTION MAINTENANCE QTY
W-01A 6` HIGH DECORATIVE SPLIT-FACE BLOCK WALL
WITH ACCENT BAND AND PRECAST CAP HOA 13,900 LF
W-01B 6` HIGH DECORATIVE SPLIT-FACE BLOCK WALL
WITH ACCENT BAND AND PRECAST CAP CFD 2,111 LF
W-01C 6` HIGH DECORATIVE SPLIT-FACE BLOCK COMBO

WALL ON RETAINING WITH ACCENT BAND AND
PRECAST CAP. MAXIMUM HEIGHT 9'-0".

HOA 2,267 LF
W-02A 6` HIGH TUBE STEEL FENCE HOA 727 LF
W-02B 6` HIGH TUBE STEEL FENCE CFD 2,349 LF
W-02C 6` HIGH BREAKAWAY TUBE STEEL FENCE CFD 201 LF
W-03 18" HIGH DECORATIVE WALL HOA 212 LF
W-04 2 RAIL HDPE SPLIT-RAIL FENCE PER CITY STD. CFD 2,192 LF W-05A 6`-6" HIGH STONE VENEER PILASTER WITH
DECORATIVE CAP HOA 121
W-05B 6`-6" HIGH STONE VENEER PILASTER WITH
DECORATIVE CAP AT CFD BASINS/PARK CFD 44
W-06 30` - 36' WIDE DOUBLE TUBE STEEL BI-FOLD
MAINTENANCE ACCESS GATE CFD 2
W-07 3` WIDE TUBE STEEL PEDESTRIAN POOL GATE HOA 3
W-08 PRIMARY ENTRY MONUMENT CFD 2
W-09 SECONDARY ENTRY MONUMENT CFD 6
W-10A RECREATIONAL CENTER ENTRY MONUMENT HOA 1
W-10B COMMUNITY PARK ENTRY MONUMENT CFD 1
W-11 3` HIGH TRAIL ENTRY MONUMENT STONE VENEER
PILASTER WITH DECORATIVE CAP HOA 15
W-12 12` WIDE DOUBLE TUBE STEEL MAINTENANCE
ACCESS GATE CFD 2
NOTE: FOR REFERENCE (HEIGHT, MATERIALS, PLACEMENT) ONLY. SEPARATE PERMIT REQUIRED.

REFERENCE NOTES SCHEDULE-TRACT 37408
22 21 19
98 80
2 1
20 19
18 17 16 15 14 13 12 11 10 9 8 7 6 5
4 3
2 1
59 42
114
113
112
111
11010910810710610510410310210110099
97 96
95 94
93 92
91 90
89 88
87 77
78 79
80 81
82 83
84 85
86 67
68 69
70 71
72 73
74 75
76 58
59 60
61 62
63 64
65 66 49
50 51
52 53
54 55
56 57 40
41 42
43 44
45 46
47 48 31
32 33
34 35
36 37
38 39
25 26
20 115
109876 181716151413121154
3 2
1 68 57
585960656667 61626364697071
72 73
2324
27 28 29 30
1113
112
48 40
32 24
16 8
48 48
56 W-03
W-03
W-03
W-05B
W-06
W-01C
W-01C W-01C
W-01C
W-01C
W-11
W-11
W-11
W-11
W-11
W-11
W-11
W-02A
W-02A
W-10A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-07
W-07
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A W-05A
W-05AW-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-01A
W-01A
W-01A
W-01C
W-01A
W-01C
W-01A
B
78 33
1 77
76 109876 181716151413121154
3 2
1 49 48
2728
29 47
323130
321
68 57
585960656667 61626364697071
72 73
565554535251504948474645
44 41
343536373839404243
3228
2122
302927 31262524
1314151617181920
121110987654321
W-06
W-05B
W-05B
W-06
W-01C
W-01C
W-11 W-11
W-11
W-11
W-02B
W-02B
W-02C
W-01A
W-01A
W-01A
W-01A
W-01A
W-04 W-04
W-01A
W-01A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-09 W-09
W-05A
W-05A
W-05A
W-05A
W-01C
W-01C
W-01C
W-01A
N.A.P.

N.A.P.

LEGADO - TRACT 37408

WALL AND FENCE MAINTENANCE RESPONSIBILITY EXHIBIT
PREPARED FOR BLC FLEMING LLC, C/O NEWPORT PACIFIC LAND CO. 100 BAYVIEW CIRCLE, SUITE 240 NEWPORT BEACH, CA 92660 (949) 945-2295 November 19, 2021 NORTH 100'0' 200' 300'

INDEX MAP - NTS
THIS
SHEET

ENCANTO DRIVE

ROUSE ROAD

CHAMBERS AVE

SHERMAN ROAD
'B' ST.
'W' ST.
'V' ST.'T' ST.
'D' ST.
'A' ST.
'A' ST.
'A' ST.
'U' ST.
'I' ST.
'T' ST. 'S' ST. 'R' ST. 'Q' ST.
'P' ST.
'E' ST.
'C' ST.
'F' ST.
'G' ST.
'H' ST.
'O' ST.
'M' ST.
'N' ST.
'L' ST.
'I' ST.
'K' ST.
'L' ST.
'J' ST.
'B' ST.

MATCHLINE SEE SHEET WF-3
MATCHLINE SEE SHEET WF-3
MATCHLINE SEE SHEET WF-2
WF-1
Item: 6.3
Item Page Number: 18
Menifee Finance Committee January 13, 2026 Page 147 of 250

WALL ON RETAINING WITH ACCENT BAND AND
PRECAST CAP. MAXIMUM HEIGHT 9'-0".

REFERENCE NOTES SCHEDULE-TRACT 37408
48 40
32 24
16 8
48 48
56 43
22 21 19
10 98765432
1 59 58 57 56 55 54 53
52 51
50494847464544
42 41
40 39
38 37
36 35
34 33
32 31
30 29
28 27
26 25
24 23
22 21
20 19
18 17
16 15
14 13
12 11
10 9
8 765432
1 114
20 115
18171615
49 48
2026 25 24 23 22 212728
29 47 46 45 44 43 42 41 40
39383736353433323130
19 18
17 16
15 14
13 12
1110987654321
57 5859
56 27 28 29 30
1 W-03
W-03
W-01C
W-01C
W-01C
W-01C
W-01C
W-11
W-11
W-11
W-11
W-11
W-11
W-11
W-02A
W-10A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-04
W-01A
W-07
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-09
W-09
W-08
W-09
W-05A
W-05A
W-05A
W-05A
W-05A
W-01A W-01A
W-01A
LEGADO - TRACT 37408

INDEX MAP - NTS
THIS
SHEET

ENCANTO DRIVE

ROUSE ROAD

CHAMBERS AVE

MATCHLINE SEE SHEET WF-1
MATCHLINE SEE SHEET WF--3
WF-2
Item: 6.3
Item Page Number: 19
Menifee Finance Committee January 13, 2026 Page 148 of 250

WALL ON RETAINING WITH ACCENT BAND AND
PRECAST CAP. MAXIMUM HEIGHT 9'-0".

REFERENCE NOTES SCHEDULE-TRACT 37408

CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV

CLEAN AIR/VANPOOL/EVCLEAN AIR/VANPOOL/EV

CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV

CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV CLEAN AIR/VANPOOL/EV

CLEAN AIR/VANPOOL/EV
12 1612
0 24
32 40
48 16
24 8
72 72
72 1612
83 68
80 79
78 77 76 75 74 73 72
717069686766656463
62 61
60 59 58 57 56 55 54 53 52 51 50 49
48474645444342414039383736
35 34 33 32 31 30 29 28 27 26 25 24 23 22 21
20 19
18 17
16 15
14 13
12 11
10 98765432
1 99
98 97
96959493929190898887868584
82 81 80 79 78 77 76 75 74 73 72
71 70
69 67666564636261605958
57 56 55 54 53 52 51 50 49 48 47 46 45
44434241403938373635343332
31 30
29 28
27 26
25 24
23 22
21 20
19 18 17 16 15 14 13 12 11 10 9 8 7 6 5
4 3
2 1
59 58 57 56 55 54 53
52 51
114
113
112
111
110109
115
1113
112
W-10B
W-01B
W-01B
W-01B
W-05B
W-05B
W-05B
W-05B
W-01C
W-01C
W-01C
W-11
W-11
W-02A
W-02B
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-05A
W-05A
W-08
W-05A
W-05A
W-05A
W-05AW-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-09W-09
W-05A
W-05A
W-05A
W-05A
W-05A
W-01C
W-01A
W-01A
W-01C
W-12
W-12
N.A.P.

LEGADO - TRACT 37408

INDEX MAP - NTS
THIS
SHEET

ENCANTO DRIVE

ROUSE ROAD

CHAMBERS AVE

MATCHLINE SEE SHEET WF-1
MATCHLINE SEE SHEET WF-2
WF-3
Item: 6.3
Item Page Number: 20
Menifee Finance Committee January 13, 2026 Page 149 of 250

CODE DESCRIPTION MAINTENANCE QTY
W-01A 6` HIGH DECORATIVE SPLIT-FACE BLOCK WALL
WITH ACCENT BAND AND PRECAST CAP HOA 15,847 LF
W-01B REFER TO TRACT 37408 CFD N/A
W-01C 6` HIGH DECORATIVE SPLIT-FACE BLOCK COMBO

WALL ON RETAINING WITH ACCENT BAND AND
PRECAST CAP. MAXIMUM HEIGHT 9'-0".

HOA 3,217 LF
W-02A REFER TO TRACT 37408 HOA N/A
W-02B 6` HIGH TUBE STEEL FENCE CFD 1,848 LF
W-02C 6` HIGH BREAKAWAY TUBE STEEL FENCE CFD 313 LF
W-04 2 RAIL HDPE SPLIT-RAIL FENCE PER CITY STD. CFD 8,887 LF W-05A 6`-6" HIGH STONE VENEER PILASTER WITH
DECORATIVE CAP HOA 194
W-05B 6`-6" HIGH STONE VENEER PILASTER WITH
DECORATIVE CAP AT CFD BASINS CFD 20
W-06 30` - 36' WIDE DOUBLE TUBE STEEL BI-FOLD
MAINTENANCE ACCESS GATE CFD 4
W-08 PRIMARY ENTRY MONUMENT CFD 2
W-09 SECONDARY ENTRY MONUMENT CFD 6
W-11 3` HIGH TRAIL ENTRY MONUMENT STONE VENEER
PILASTER WITH DECORATIVE CAP HOA 9
NOTE: FOR REFERENCE (HEIGHT, MATERIALS, PLACEMENT) ONLY. SEPARATE PERMIT REQUIRED.

REFERENCE NOTES SCHEDULE-TRACT 37409
16 80
8 24
81 23
2221
98 151413121110 1716 20191876
5 4
3 1
2123
1413121110987654 15
181920212225 24 2326
63 62 61 60 59 58 57
6465
66 37
515253
5455
38394041424344454647484950
56 55 54 53 52
67 56
1 3
2 70
717273
6968676665646362616059
747576777879808182
7 1812 13 14 15 16 178 9 10 11
19 20
21 22
23 24
25 26
27 28
29 30
31 32
33 34
35 36
44 474645 5049484342
55 56
58 57
59 52
51 53
54 42
41 45
44 43
50 34
36 35
38 37
40 39
48 47
46 49
33 3231
14 17
16 15
19 18
21 20 23
22 28
27 26
25 24
30 29
13 1211
10 9
76 5 4
3 2
1 34 33 32
41 40 39 38 35
31 16
28 17
1512
2021
23 24
19 18
14 6
7 8
9 10
11 2
3 4
5 1
65 86
85 84 83
8281807978
50 58 57 56 55 54 53 52 51
63 62 61 60 5964
67 66
737271706968 767574 77
29 28 27 26 25 24 2335 34 33 32 31 30
4342414039383736 494847464544
22 21
20 19
18 17
161110987654 15141312321
13 22
25 26 27 29 30
3637
51 4
5 6
5857
84 83
17 W-05B
W-05B
W-01C
W-01C
W-01C
W-01C
W-01C
W-01C
W-01C
W-01C
W-11
W-11
W-11
W-11
W-11
W-11
W-11
W-11
W-02B
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-04
W-04
W-04
W-04
W-04
W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-06
W-04
W-04
W-04
W-06
W-01A
W-01A
W-01A
W-04
W-01A
W-01A W-01A
W-01A
W-01A
W-01A
W-01A
W-01A
W-01AW-01A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-08
W-09
W-09
W-09
W-09
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05AW-05A
W-05A
W-05A
W-05A
W-05A
W-05AW-05A
W-01C
W-01C
W-01C
W-01C W-01C
W-01C
W-01C
W-02B
W-01A
W-01A
W-02C
W-01C
W-05A
W-05A
W-01C
NORTH 100'0' 200' 300'
THIS

SHEETINDEX MAP - NTS

SHERMAN ROAD

ROUSE ROAD

CHAMBERS AVE

ANTELOPE ROAD
'C' ST.
'D' ST.
'D' ST.
'A' ST.
'A' ST.
'Q' ST.'R' ST.
'S' ST.
'T' ST.
'J' ST. 'V' ST.
'Y' ST.
'U' ST.
'M' ST.
'N' ST.
'AA' ST.
'O' ST. 'O' ST.
'BB' ST.
'P' ST.
'A' ST.
'X' ST.
'M' ST.
'CC' ST.
'Z' ST.
'L' ST.
'I' ST.'G' ST.
'H' ST.
'B' ST.
'E' ST. 'F' ST.
'K' ST.

PREPARED FOR BLC FLEMING LLC, C/O NEWPORT PACIFIC LAND CO. 100 BAYVIEW CIRCLE, SUITE 240 NEWPORT BEACH, CA 92660 (949) 945-2295 November 19, 2021 LEGADO - TRACT 37409

WALL AND FENCE MAINTENANCE RESPONSIBILITY EXHIBIT
MATCHLINE SEE SHEET WF-2
MATCHLINE SEE SHEET WF-2
WF-1
Item: 6.3
Item Page Number: 21
Menifee Finance Committee January 13, 2026 Page 150 of 250

WALL ON RETAINING WITH ACCENT BAND AND
PRECAST CAP. MAXIMUM HEIGHT 9'-0".

REFERENCE NOTES SCHEDULE-TRACT 37409
16 697071727374757677787980
18 19
16 17
20 21
22 24
23 252627282930313233343536373839
656667686970
596061626364 565758
454443424140
515049484746 5352 5554
151413111098 126543 721
51 50 49 4748
414243444546 40 39
38353433 373631302928
32 27
1722 21 20 19 18
24 232526
16 15 14
13124 98765 1110321
24 67666564605958575655 636261
54 53
52 68
81 39404142434445
3435363738 3233
4647
48 49
50 51
25 26
27 28
29 30
31 23
2221
98 151413121110 1716 20191876
5 4
3 1
2 38
3946474849
404142434445
353433323130292827
123
1413121110987654 15
181920212225 24 2326
1 3
2 7 1812 13 14 15 16 178 9 10 11
19 20
21 4
5 6
17 36 37
W-05B
W-01C
W-01C
W-01C
W-01C
W-01C
W-11
W-11
W-11
W-11
W-02B
W-02B
W-02B
W-02C
W-01A
W-01A
W-01A
W-01A
W-01C
W-01A
W-04
W-04
W-01A
W-04
W-01A
W-01A
W-01AW-01A
W-01AW-01A
W-06
W-01A
W-01A W-01A
W-01A
W-01A
W-01A
W-01A
W-04
W-04
W-06
W-01A
W-04
W-04
W-01A
W-01A
W-01A
W-01A
W-05A
W-05A
W-05A
W-05AW-05A
W-05AW-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-05A
W-09
W-08
W-09
W-09
W-05A
W-05A
W-05A
W-05A
NORTH 100'0' 200' 300'
THIS

SHEETINDEX MAP - NTS

SHERMAN ROAD

ROUSE ROAD

CHAMBERS AVE

PREPARED FOR BLC FLEMING LLC, C/O NEWPORT PACIFIC LAND CO. 100 BAYVIEW CIRCLE, SUITE 240 NEWPORT BEACH, CA 92660 (949) 945-2295 November 19, 2021 LEGADO - TRACT 37409

WALL AND FENCE MAINTENANCE RESPONSIBILITY EXHIBIT
MATCHLINE SEE SHEET WF-1
MATCHLINE SEE SHEET WF-1
WF-2
Item: 6.3
Item Page Number: 22
Menifee Finance Committee January 13, 2026 Page 151 of 250

CITY OF MENIFEE
Public Hearing Report
COMMUNITY FACILITIES DIST RICT NO. 2 022 -3
(LEGADO)
Septemb er 21, 2022
Item: 6.3
Item Page Number: 23
Menifee Finance Committee January 13, 2026 Page 152 of 250

Table of Contents

Sections P age _____________________________________________ 1 Introduction ______________________________________________________ 1 2 Description of Facilities ____________________________________________________ 2 3 Cost Estimate ______________________________________________________ 3 4 Proposed Development ___________________________________________________ 5 5 Rate and Method of Apportionment __________________________________________ 6 6 Certifications ______________________________________________________ 9

Tables Page
3-1 Cost Estimate ______________________________________________________ 3 5-1 Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 1 ___ 6 5-2 Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 2 ___ 7 5-3 Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 3 ___ 7 5-4 Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 1 ___ 7 5-5 Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 2 ___ 8 5-6 Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 3 ___ 8

Appendices P age _____________________________________________ A Rate and Method of Apportionment for Improvement Area 1 B Rate and Method of Apportionm ent for Improvement Area 2 __________________ C Proposed Boundary Map _________________________________________ D Resolution of Intention

Item: 6.3
Item Page Number: 24
Menifee Finance Committee January 13, 2026 Page 153 of 250

1 Introduction Page | 1
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
Background
On August 3, 2022, the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2022-3 (Legado) Improvement Areas 1 and 2 of the City of Menifee (“CFD No. 2022-3” or “District”), Resolution No. 22-1187, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, (“Act”).

The District is currently comprised of 2 parcels and approximately 263 gross acres to include a total of 1,022 residential properties at buildout. There are two separate Improvement Ar eas included within the boundaries of CFD No. 2022-3.

Improvement Area 1 includes three separate Tax Zones, Tax Zo nes 1 (150 Lots), 2 (174 Lots), and 3 (158 Lots) inclusive of Tract Maps TR 37408-1, TR 37408-2, TR 37408-3, TR 37409-1, TR 37409-2, and TR 37409-3 to include a total of 491 proposed detached residential properties at build-out. Improvement Area 2 includes also includes three separate Tax Zones, Tax Zones 1 (180 Lots), 2 (154 Lots), and 3 (197 Lots) inclus ive of Tract Maps TR 37408-5, TR 37408-6, TR 37409-4, TR 37409-5, TR 37409-6, and TR 37409-8 to include a total of 531 proposed detached residential properties at build-out. The property is located
northwest of Antelope Boulevard and Chambers Avenue and south of Rouse Road.

For a map showing the boundaries of CFD No. 2022-3 please see Appendix C.

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

1. A brief description of CFD No. 2022-3;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2022-3.

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

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

Item: 6.3
Item Page Number: 25
Menifee Finance Committee January 13, 2026 Page 154 of 250

2 Description of Facilities Page | 2
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
NOW, THEREFORE, the undersigned, authorized representative of Spicer Consulting Group, LLC, the appointed responsible officer, or person directed to prepare this Report, does hereby submit the following data:

The types of facilities that are proposed by CFD No. 2022- 3 and financed with the proceeds of special taxes and bonds issued by CFD No. 2022-3 consist of the construction, purchase, modification, rehabilitation, expansion and/or improvement of (i) drainage, library, park, roadway, traffic, administration and general go vernment facilities, animal shelter facilities, fire and safety, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); (ii) water and sewer facilities including th e acquisition of capa city in the sewer system and/or water system of the Eastern Municipal Water District which are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities”); and (iii) interim and permanent school facilities of Menifee Union School District and Perris Union High School District, including classrooms, multi-purpose facilities, administration and auxiliary space at school facilities, athletic fields, playgrounds and recreational facilities a nd improvements thereto, landscaping, access roadways, drainage, sidewalks and gutters and utility lines, furniture, equipment and technology, including technology upgrades and mobile devices and infrastructure therefore, with a useful life of at least five (5) years at such school facilities (the “School Facilities” and together, with the City Facilities and the Water Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coor dination, construction staking, construction management and supervision for such Facilities.

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

All costs associated with the creation of CFD No. 2022-3, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2022-3, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2022-3 and any obligations.

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

Item: 6.3
Item Page Number: 26
Menifee Finance Committee January 13, 2026 Page 155 of 250

3 Cost Estimate Page | 3
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
Below is the estimated cost of facilities to be provided to the District. a) The cost estimate of facilities, including incidental expenses, to be financed through the issuance of CFD No. 2022- 3 Bonds is estimated to be $23,079,160 for Improvement Area 1 and $26,174,453 for Improvement Area 2 based upon current dollars (Fiscal Year 2022-23).
b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) Pursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2022-3 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2022-3 are estimated to be $30,000 per Improvement Area in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate

City Fees Total Cost
IA 1
Bond Allocation(1)
IA 2
Bond Allocation(1)
Total
Allocation
Law Enforcement $236,082 $113,421 $122,661 $236,082
Fire Facilities $627,508 $301,474 $326,034 $627,508
General Government $1,043,462 $501,311 $542,151 $1,043,462 Public Use Facilities $157,388 $75,614 $81,774 $157,388 Park – Land Acquisition $219,730 $105,565 $114,165 $219,730 City Facilities $456,834 $219,477 $237,357 $456,834
Fair Share Traffic Impact Fee $4,604,283 $2,212,038 $2,392,245 $4,604,283 Total City Fees $7,345,287 $3,528,900 $3,816,387 $7,345,287

City Facilities Total Cost
IA 1
Bond Allocation(1)

IA 2
Bond Allocation(1)

Total
Allocation
Circulation Facilities $15,686,150 $7,536,105 $8,150,045 $15,686,150 Less: Circulation Reimbursements ($780,157) ($374,811) ($405,346) ($780,157) Net Circulation Facilities $14,905,993 $7,161,294 $7,744,699 $14,905,993

Storm Drain Facilities $9,332,211 $4,483,479 $4,848,732 $9,332,211 Less: Storm Drain Reimbursements ($1,681,428) ($807,809) ($873,619) ($1,681,428) Net Storm Drain Facilities $7,650,783 $3,675,670 $3,975,113 $7,650,783

Park Facilities $11,000,000 $5,284,736 $5,715,264 $11,000,000 Less: Park Reimbursements ($2,324,458) ($1,116,741) ($1,207,717) ($2,324,458) Net Park Facilities $8,675,542 $4,167,995 $4,507,547 $8,675,542

Interior Road Improvements $23,726,250 $4,545,301 $6,252,889 $10,798,190 Total City Facilities $54,958,568 $19,550,260 $22,480,248 $42,030,508

Total City Fees and Facilities $62,303,855 $23,079,160 $26,296,635 $49,375,795

Item: 6.3
Item Page Number: 27
Menifee Finance Committee January 13, 2026 Page 156 of 250

3 Cost Estimate Page | 4
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report

Table 3-1 (Cont’d)

Cost Estimate

Eastern Municipal Water District Fees Total Cost
IA 1
Bond Allocation(1)
IA 2
Bond Allocation(1)
Total
Allocation
Sewer Financial Participation $3,278,576 $0 $0 $0
Sewer Treatment Capacity $6,214,782 $0 $0 $0
Water Financial Participation $6,995,590 $0 $0 $0
Water Supply Development Fee $380,184 $0 $0 $0
1" Meter Drop-In Fee $385,294 $0 $0 $0
Landscape Meter Connection Fees
1 @ 3" $207,113 $0 $0 $0
7 @ 1.5" $217,490 $0 $0 $0
7 @ 1" $86,996 $0 $0 $0
Total EMWD Fees $17,766,025 $0 $0 $0

Total Eligible Fees/Improvements $80,069,880 $23,079,160 $26,174,453 $49,253,613 Incidental Financing Costs $3,565,840 $4,005,547 $7,571,387 Total Funded by Bond Proceeds $26,645,000 $30,180,000 $56,825,000

Total Funded by Developer $30,816,267
(1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.

Item: 6.3
Item Page Number: 28
Menifee Finance Committee January 13, 2026 Page 157 of 250

4 Proposed Development Page | 5
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
The CFD No. 2022-3 includes approximately 263 gross acres to include a total of 1,022 residential properties at buildout.

The District is made up of two separate Improvement Areas included within the boundaries. Improvement Area 1 includes three separate Tax Zones, Tax Zones 1 (150 Lots), 2 (174 Lots), and 3 (158 Lots) inclusive of Tract Maps TR 37408-1, TR 37408-2, TR 37408-3, TR 37409-1, TR 37409-2, and TR 37409-3 to include a total of 491 proposed detached residential properties at build-out. Improvement Area 2 includes also includes three separate Tax Zones, Tax Zones 1 (180 Lots), 2 (154 Lots), and 3 (197 Lots) inclusive of Tract Maps TR 37408-5, TR 37408-6, TR 37409-4, TR 37409-5, TR 37409-6, and TR 37409-8 to include a total of 531 proposed detached residential properties at build-out. The property is located northwest of Antelope Boulevard and Chambers Avenue and south of Rouse Road. As of Fiscal Year 2022-23 the proposed CFD No. 2022-3 includes the following Assessor's Parcel Numbers:

Assessor’s Parcel
Number
333-020-011
333-020-019
A map showing the boundaries of CFD No. 2022-3 is included in Appendix C.

Item: 6.3
Item Page Number: 29
Menifee Finance Committee January 13, 2026 Page 158 of 250

5 Rate and Method of Apportionment Page | 6
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2022-3 Improvement Area 1 and Improvement Area 2 are to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Taxes established pursuant to these proceedings, is attached hereto as Appendix A and Appendix B (the “Rate and Methods”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2022-3, and provided further that CFD No. 2022-3 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2022-3, unless exempted by law or by the Rate and Methods proposed for CFD No. 2022-3, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2022-3 is attached hereto as Appendix C. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Methods (“Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2022-3 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2064-65 Fiscal Year.

Table 5-1
Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 1 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

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

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

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

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

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

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

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

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

9. Non-Residential Property Acre N/A $24,742.00

Item: 6.3
Item Page Number: 30
Menifee Finance Committee January 13, 2026 Page 159 of 250

5 Rate and Method of Apportionment Page | 7
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
Table 5-2
Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 2 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

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

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

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

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

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

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

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

8. Non-Residential Property Acre N/A $22,586.00
Table 5-3
Assigned Special Tax for Developed Property for Improvement Area 1 – Tax Zone 3 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

3. Single Family Residential Property RU Less than 2,100 sq. f t $2,847.00

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

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

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

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

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

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

8. Non-Residential Property Acre N/A $19,319.00
Table 5-4
Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 1 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

4. Single Family Residential Property RU Less than 1,400 sq. f t $2,588.00

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

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

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

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

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

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

8. Multifamily Property Acre N/A $24,486.00

9. Non-Residential Property Acre N/A $24,486.00

Item: 6.3
Item Page Number: 31
Menifee Finance Committee January 13, 2026 Page 160 of 250

5 Rate and Method of Apportionment Page | 8
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
Table 5-5
Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 2 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

5. Single Family Residential Property RU Less than 1,900 sq. f t $2,731.00

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

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

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

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

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

7. Multifamily Property Acre N/A $22,018.00

8. Non-Residential Property Acre N/A $22,018.00
Table 5-6
Assigned Special Tax for Developed Property for Improvement Area 2 – Tax Zone 3 Fiscal Year 2022-23
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

6. Single Family Residential Property RU Less than 2,100 sq. f t $2,847.00

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

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

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

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

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

7. Multifamily Property Acre N/A $20,857.00

8. Non-Residential Property Acre N/A $20,857.00

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

For particulars as to the Rate and Methods for CFD No. 2022-3, see the attached and incorporated in Appendix A and B.

Item: 6.3
Item Page Number: 32
Menifee Finance Committee January 13, 2026 Page 161 of 250

6 Certifications Page | 9
City of Menifee
CFD No. 2022-3 (Legado)
Public Hearing Report
Based on the information provided herein, it is my opinion that the described services herein are those that are necessary to meet increased demands placed upon the City of Menifee as a result of development occurring within the CFD No. 2022- 3 and benefits the lands within said CFD No. 2022-3. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: September 21, 2022 SPICER CONSULTING GROUP, LLC

__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE COUNTY

STATE OF CALIFORNIA

Item: 6.3
Item Page Number: 33
Menifee Finance Committee January 13, 2026 Page 162 of 250

APPENDIX A
Rate and Method of Apportionment
for Improvement Area 1
Item: 6.3
Item Page Number: 34
Menifee Finance Committee January 13, 2026 Page 163 of 250

City of Menifee
Community Facilities District No. 2022‐3 (Legado) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐3 (LEGADO)
OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO. 1

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

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Accessory Dwelling Unit” means a residential unit of limited size including a smaller second unit that
shares an Assessor’s Parcel as a Single Family Residential Property with a stand‐alone Residential Unit.

"Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, or other recorded County parcel map or instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560.

"Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5

(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022‐3 IA 1: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022‐3 IA 1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022‐3 IA 1 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2022‐3 IA 1 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022‐3 IA 1 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022‐3 IA 1 for any other administrative purposes of CFD No. 2022‐3 IA 1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

Item: 6.3
Item Page Number: 35
Menifee Finance Committee January 13, 2026 Page 164 of 250

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

"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) and has an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

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

"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.

"Assigned Special Tax" means the Special Tax of that name described in Section D below.

"Backup Special Tax" means the Special Tax of that name described in Section D below.

"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.

"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent
building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding CFD No. 2022‐3 IA 1 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.

"Calendar Year" means the period commencing January 1 of any year and ending the following December

31. “CFD Administrator" means an
official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

“CFD” or "CFD No. 2022‐3" means Community Facilities District No. 2022‐3 (Legado) established by the City under the Act.

“CFD No. 2022‐3 IA
1" means Improvement Area No. 1 of CFD No. 2022‐3 as identified on the boundary map for CFD No. 2022‐3.

"CFD No. 2022‐3 IA 1 Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long‐term leases, loans from government agencies, or Item: 6.3
Item Page Number: 36
Menifee Finance Committee January 13, 2026 Page 165 of 250

City of Menifee
Community Facilities District No. 2022‐3 (Legado) Page 3

loans from banks, other financial institutions, private businesses, or individuals, or long‐term contracts, or any refunding thereof, to which Special Tax of CFD No. 2022‐3 IA 1 have been pledged.

“City” means the City of Menifee.

"City Council" means the City Council of the City of Menifee, acting as the Legislative Body of CFD No. 2022‐3 IA 1.

“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 4285.

"County" means the County of Riverside.

"Developed Property" means all Assessor’s Parcels: (i) that are included in a Final Map that was recorded
prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.

"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.

"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment,
pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision.

"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2022‐3 IA 1 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

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

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022‐3 IA 1 in any Fiscal Year on such Assessor’s Parcel.

"Non‐Residential Property" or “NR” means all Assessor's Parcels for which a building permit(s) was issued or will be issued for a non‐residential use. The CFD Administrator shall make the determination if an Assessor’s Parcel is Non‐Residential Property.

"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor’s Parcel, as described in Section G.2.

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"Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor’s Parcel, as described in Section G.1.

“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property, or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor’s Parcels of Undeveloped Property, or Provisional Undeveloped Property, as applicable.

"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.

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

"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022‐3 IA 1 pursuant to the
Act to fund the Special Tax Requirement.

"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding CFD No. 2022‐3 IA 1 Bonds due in the Calendar Year that commences in such Fiscal Year, (ii)
Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the CFD No. 2022‐3 IA 1 Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD No. 2022‐3 IA 1 Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022‐3 IA 1, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2022‐3 IA 1 Bonds pursuant to the Indenture.

“Tax
Zone(s)” means the geographical area(s) within CFD No. 2022‐3 IA 1 identified as Tax Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Boundary Map.

“Tax Zone 1” means all property located within CFD No. 2022‐3 IA 1 and on the Boundary Map as Tax

Zone 1.

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“Tax Zone 2” means all property located within CFD No. 2022‐3 IA 1 and on the Boundary Map as Tax Zone 2.

“Tax Zone 3” means all property located within CFD No. 2022‐3 IA 1 and on the Boundary Map as Tax Zone 3.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐3 IA 1, which are not Exempt Property.

“Taxable Unit” means either a Residential Unit or an Acre.

“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.

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

B. SPECIAL TAX

Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax, to fund the Special Tax Requirement.

C. ASSIGNMENT TO LAND USE CATEGORY
FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐3 IA 1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone 2, or Tax Zone 3.

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

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy
on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Special Tax rates for Developed Property and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Acreage of Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Item: 6.3
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Undeveloped Property multiplied by the total of the amount determined in clause (1), less the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Property

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

The Maximum Special Tax for each Assessor’s Parcel of Non‐Residential or Multifamily Residential Property shall be the applicable Assigned Special Tax described in Table 1, Table 2, and Table 3 of Section D.

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential shall be subject to an Assigned Special Tax. The Assigned Special Tax applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1, Table 2, and Table 3 below.

TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 1

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

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

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

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

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

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

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

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

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

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

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TABLE 2
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 2

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

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

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

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

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

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

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

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

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

TABLE 3
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
WITHIN TAX ZONE 3

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

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

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

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

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

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

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

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

8. Non‐Residential Property Acre N/A $19,319.00
On each July 1, commencing July 1, 2023, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.

b. Multiple Land Use Categories

In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.

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

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B = (U x A) / L

The terms above have the following meanings:

B = Backup Special Tax per per Assessor’s Parcel within the Final Map

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

A = Acreage of Single Family Residential Property expected to exist in such Final Map at the time
of calculation, as determined by the Administrator

L = Number of Residential Units expected to exist in such Final Map at the time of calculation, as determined by the Administrator.

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

TABLE 4
MAXIMUM SPECIAL TAX PER ACRE

Tax Zone
Maximum Special Tax
per Acre
1 $24,742
2 $22,586
3 $19,319

In the event any superseding Final Map is recorded as a Final Map within the Boundaries of the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be on the rate per Acre shown in the table above. The Backup Special Tax shall not apply to Multifamily Residential Property, or Non‐Residential Property.

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

2. Approved Property

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

The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be classified as Multifamily Residential Property or Non‐Residential Property shall be $24,742 per Acre for Tax Zone 1, $22,586 per Acre for Tax Zone 2, and $19,319 per Acre for Tax Zone 3.

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

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3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt Property pursuant to the provisions of Section F

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

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

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX

Commencing Fiscal Year 2022‐2023 and for each subsequent Fiscal Year, the City Council shall levy Special Taxes on all Taxable Property in accordance with the following steps:

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

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

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

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

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

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

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F. EXEMPTIONS

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

TABLE 5
MINIMUM TAXABLE ACRES

Tax Zone Acres
1 20.86
2 25.60
3 28.89

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

G. PREPAYMENT OF SPECIAL TAX

The following additional
definitions apply to this Section G:

“CFD Public Facilities” means $26,000,000 expressed in 2022 dollars, which shall increase by the Construction Inflation Index on July 1, 2023, and on each July 1 thereafter, or such lower amount (i) determined by the City Council as sufficient to provide the public facilities under the authorized bonding
program for CFD No. 2022‐3 IA 1, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Tax levied under this Rate and Method of Apportionment.

“Construction Fund” means an account specifically identified in the Indenture or functionally equivalent to hold funds, which are currently available for expenditure to acquire or construct public facilities eligible to be financed by CFD No. 2022‐3 IA 1.

“Construction Inflation Index” means the annual percentage change in the Engineering News‐Record Building Cost Index for the City of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall Item: 6.3
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be another index as determined by the City that is reasonably comparable to the Engineering News‐ Record Building Cost Index for the City of Los Angeles.

“Future Facilities Costs” means the CFD Public Facilities minus (i) public facility costs previously funded from the Construction Fund, (ii) public facility costs available to be funded through existing construction or escrow accounts funded by the Outstanding Bonds, and minus (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment.

“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding CFD No. 2022‐3 IA 1 Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full

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

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

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.

City of Menifee
Community Facilities District No. 2022‐3 (Legado) Page 12

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

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

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

6. Determine the Future Facilities Costs.

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

9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year which

have not yet been paid.

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

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

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

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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.

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 CFD No. 2022‐3 IA 1.

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

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

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

2. Prepayment in Part

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

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

PP = Partial Prepayment Amount
PE = the Prepayment Amount calculated according to Section G.1 Item: 6.3
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F = the percent by which the owner of the Assessor’s Parcel(s) is partially prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1 The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD Administrator shall notify such property owner of the amount of the non‐refundable deposit determined to cover the cost to be incurred by the CFD in calculating the amount of a partial prepayment. Within 15 business days of receipt of such non‐refundable deposit, the CFD Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial Prepayment Amount.

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

H. TERMINATION OF SPECIAL TAX

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

I. MANNER OF COLLECTION

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2022‐3 IA 1 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

APPEALS OF SPECIAL TAXES

Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator Item: 6.3
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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.

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APPENDIX B
Rate and Method of Apportionment
for Improvement Area 2
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City of Menifee
Community Facilities District No. 2022‐3 (Legado) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2022‐3 (LEGADO)
OF THE CITY OF MENIFEE
IMPROVEMENT AREA NO. 2

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

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

"Act" means the Mello‐Roos Community Facilities Act of 1982, as amended, being Chapter 2.5

(commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.

"Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2022‐3 IA 2: the costs of computing the Special Taxes and preparing the Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of remitting Special Taxes to the Trustee; the costs of the Trustee (including legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2022‐3 IA 2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2022‐3 IA 2 or any designee thereof of complying with disclosure requirements of the City, CFD No. 2022‐3 IA 2 and any major property owner associated with applicable federal and state securities laws and the Act; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2022‐3 IA 2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the release of funds from an escrow account; and the City’s annual administration fees and third party expenses. Administration Expenses shall also include amounts estimated by the CFD Administrator or advanced by the City or CFD No. 2022‐3 IA 2 for any other administrative purposes of CFD No. 2022‐3 IA 2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

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"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.

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

"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.

"Assigned Special Tax" means the Special Tax of that name described in Section D below.

"Backup Special Tax" means the Special Tax of that name described in Section D below.

"Boundary Map" means a recorded map of the CFD which indicates the boundaries of the CFD.

"Building Permit" means the first legal document issued by a local agency giving official permission for new construction. For purposes of this definition, “Building Permit” may or may not include any subsequent
building permit document(s) authorizing new construction on an Assessor’s Parcel that are issued or changed by the City after the first original issuance, as determined by the CFD Administrator as necessary to fairly allocate Special Tax to the Assessor’s Parcel, provided that following such determination the Maximum Special Tax that may be levied in each Fiscal Year on all Assessor’s Parcels of Taxable Property will be at least 1.1 times annual debt service on all outstanding CFD No. 2022‐3 IA 2 Bonds plus the estimated annual Administrative Expenses for such Fiscal Year.

"Calendar Year" means the period commencing January 1 of any year and ending the following December

31. “CFD Administrator" means an
official of the City, or designee thereof, responsible for determining the Special Tax Requirement, and providing for the levy and collection of the Special Taxes.

"CFD” or “CFD No. 2022‐3" means Community Facilities District No. 2022‐3 (Legado) established by the City under the Act.

“CFD No. 2022‐3 IA
2" means Improvement Area No. 2 of CFD No. 2022‐3 as identified on the boundary map for CFD No. 2022‐3.

"CFD No. 2022‐3 IA 2 Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, notes, certificates of participation, long‐term leases, loans from government agencies, or Item: 6.3
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“City” means the City of Menifee.

"City Council" means the City Council of the City of Menifee, acting as the Legislative Body of CFD No. 2022‐3 IA 2.

“Condominium Plan" means a condominium plan as set forth in the California Civil Code, Section 4285.

"County" means the County of Riverside.

"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.

"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment,
pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 4285 that creates individual lots for which Building Permits may be issued without further subdivision.

"Fiscal Year" means the period commencing on July 1st of any year and ending the following June 30th.

“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which CFD No. 2022‐3 IA 2 Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.

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

"Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2022‐3 IA 2 in any Fiscal Year on such Assessor’s Parcel.

"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.

"Residential Property" means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more Residential Units.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the CFD Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Residential Property shall not be considered a Residential Unit for purposes of this RMA.

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

"Special Tax" means any of the special taxes authorized to be levied within CFD No. 2022‐3 IA 2 pursuant to the
Act to fund the Special Tax Requirement.

"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding CFD No. 2022‐3 IA 2 Bonds due in the Calendar Year that commences in such Fiscal Year, (ii)
Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the CFD No. 2022‐3 IA 2 Bonds, (v) an amount equal to any anticipated shortfall due to Special Tax delinquencies, (vi) for debt service on CFD No. 2022‐3 IA 1 Bonds anticipated to be issued, and (vii) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2022‐3 IA 2, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the CFD No. 2022‐3 IA 2 Bonds pursuant to the Indenture.

“Tax
Zone(s)” means the geographical area(s) within CFD No. 2022‐3 IA 2 identified as Tax Zone 1, Tax Zone 2, or Tax Zone 3 as shown on the Boundary Map.

“Tax Zone 1” means all property located within CFD No. 2022‐3 IA 1 and identified on the Boundary Map as
Tax Zone 1.

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“Tax Zone 2” means all property located within CFD No. 2022‐3 IA 1 and identified on the Boundary Map as Tax Zone 2.

“Tax Zone 3” means all property located within CFD No. 2022‐3 IA 1 and identified on the Boundary Map as Tax Zone 3.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2022‐3 IA 2, which are not Exempt Property.

“Taxable Unit” means either a Residential Unit or an Acre.

“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.

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

B. SPECIAL TAX

C. ASSIGNMENT TO LAND
USE CATEGORY FOR SPECIAL TAX

Each Fiscal Year, beginning with Fiscal Year 2022‐2023, each Assessor’s Parcel within CFD No. 2022‐3 IA 2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property shall be further classified as being within Tax Zone 1, Tax Zone 2, or Tax Zone 3.

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

In the event that an Assessor’s Parcel for which one or more Building Permits have been issued and the County has not yet assigned final Assessor’s Parcel Number(s) to the Residential Unit(s) (in accordance with the Final Map or Condominium Plan) on such Assessor’s Parcel, the amount of the Special Tax levy
on such Assessor’s Parcel for each Fiscal Year shall be determined as follows: (1) the CFD Administrator shall first determine an amount of the Maximum Special Tax levy for such Assessor’s Parcel, based on the classification of such Assessor’s Parcel as Undeveloped Property; (2) the amount of the Special Tax levy for the Residential Units on such Assessor’s Parcel for which Building Permits have been issued shall be determined based on the Assigned Special Tax rates for Developed Property and shall be taxed as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax levy on the Acreage of Taxable Property in such Assessor’s Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on all other Item: 6.3
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