Agenda packet — Finance Committee, July 13, 2026

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Ricky Estrada, Mayor
Dean Deines, District 4
AGENDA
Finance Committee
Regular Meeting Agenda
Monday, July 13, 2026
4:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Rachel Valencia, Meeting Clerk
REGULAR MEETING (4:00 PM)

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS NONE

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 May 12, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Bond Issuance for Community Facilities District No. 20252, Quartz Trail RECOMMENDED ACTION

1. Review the proposed bond issuance request for Community Facilities District ("CFD") No. 20252, Quartz Trail, by Lennar Homes of California, LLC, to finance the costs of certain public improvements in connection with the development of 80 homes located southeast of Holland Road and Evans 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.

6.2 Finance Committee 2026 Meeting Schedule
RECOMMENDED ACTION

1. Discuss and approve the remaining 2026 Finance Committee Meeting dates and times.

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 Monday, July 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
July 13, 2026

Page 1 of 69 ends

1. CALL TO ORDER

2. ROLL CALL

3. PRESENTATIONS NONE

5. APPROVAL OF MINUTES

5.1 May 12, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Proposed Bond Issuance for Community Facilities District No. 20252, Quartz Trail 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.

6.2 Finance Committee 2026 Meeting Schedule
RECOMMENDED ACTION

1. Discuss and approve the remaining 2026 Finance Committee Meeting dates and times.

7. STAFF COMMENTS

8. COMMITTEE MEMBER UPDATES AND COMMENTS

9. FUTURE AGENDA ITEMS

Menifee Finance Committee
July 13, 2026

Page 2 of 69 ends

City Council Chambers
29844 Haun Road
Menifee, CA 92586
Dean Deines, District 4
Dan Temple, District 3

MINUTES
Finance Committee
Regular Meeting Minutes
Tuesday, May 12, 2026
2:00 PM Regular Meeting
Travis Hickey, Chief Financial
Officer
Rachel Valencia, Meeting Clerk
REGULAR MEETING (2:00 PM)

1. CALL TO ORDER
Councilmember Deines called the meeting to order at 2:00 PM.

2. ROLL CALL

Present: Dan Temple, Dean Deines

Absent: None

3. PRESENTATIONS - NONE
There were no presentations.

4. PUBLIC COMMENTS (NON-AGENDA ITEMS)
There were no public comments.

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

5.1 March 16, 2026 Finance Committee Meeting Minutes

6. DISCUSSION ITEMS

6.1 Fund Balance Policy for the General Fund, Policy No. CC-07, Amendment Chief Financial Officer Hickey provided a presentation. The Committee asked questions of staff. The item was approved unanimously (2-0).

ACTION

1. Received staff report on existing Fund Balance Policy for General Fund and provided input for policy update as part of Fiscal Year 2026/27 Mid-Cycle Budget Adoption.

Item: 5.1
Item Page Number: 1
Menifee Finance Committee July 13, 2026 Page 3 of 69

6.2 Annual Investment Policy No. CC-11 Amendment
Chief Financial Officer Travis Hickey introduced Principal Accountant Melissa Cortez and provided a presentation. The Committee asked questions of staff. The item was approved unanimously (2-0).

ACTION

1. Reviewed and provided comment on the draft Fiscal Year 2026/2027 Investment Policy and recommend submittal to the City Council for approval at a future City Council meeting.

7. STAFF COMMENTS
There were no staff comments.

8. COMMITTEE MEMBER UPDATES AND COMMENTS
There were no reports on Committee activities.

9. FUTURE AGENDA ITEMS
There were no future agenda items.

10. ADJOURNMENT
The meeting was adjourned at 2:27 PM.
____________________________________
Rachel Valencia, Management Aide
Item: 5.1
Item Page Number: 2
Menifee Finance Committee July 13, 2026 Page 4 of 69

CITY OF MENIFEE
SUBJECT: Proposed Bond Issuance for Community Facilities District No. 2025-2, Quartz Trail
MEETING DATE: July 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. 2025-2, Quartz Trail, by Lennar Homes of California, LLC, to finance the costs of certain public improvements in connection with the development of 80 homes located southeast of Holland Road and Evans 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"), owns a residential tract approved for 80 detached single-family homes within the City. In May 2026, the Developer requested that the City proceed with issuing bonds for CFD No. 2025-2, Quartz Trail (the "Development") to finance eligible public facilities.

As of May 27, 2026, building permits have been issued for all 80 residential lots within the Development. Pursuant to the Rate and Method of Apportionment, 75 lots are classified as Developed Property for the Fiscal Year (FY) 2026/2027 levy because building permits were issued on or before the May 1, 2026, building permit cutoff. The remaining five lots are classified as Approved Property for FY 2026/2027 because their building permits were issued after the May 1 cutoff and are anticipated to become Developed Property for the FY 2027/2028 levy. While only 75 lots are subject to the FY 2026/2027 Developed Property levy, all 80 permitted lots are incorporated into the proposed bond sizing and long-term repayment analysis. Currently, 48 homes have closed escrow, 26 homes are sold and in escrow, and the development is projected to be fully absorbed prior to the proposed bond issuance.

Item: 6.1
Item Page Number: 1
Menifee Finance Committee July 13, 2026 Page 5 of 69

City of Menifee Staff Report
Proposed Bond Issuance for CFD 2025-2, Quartz Trail
July 13, 2026

Page 2 of 2 ends

3 4
3 8
Spicer Consulting Group completed a preliminary financing analysis to evaluate the proposed bond issuance. Based on current market assumptions, approximately $5.79 million of Special Tax Bonds could be issued. The proposed financing satisfies the City's bond issuance policies, including an estimated 10.27:1 value-to-lien ratio, an estimated effective property tax rate ranging from 1.82% to 1.84%, and a FY 2025/2026 delinquency rate of 3.36%, each of which falls within the City's adopted financing criteria.

The proposed financing is expected to generate approximately $4.92 million in bond proceeds to reimburse eligible public improvements, including City facilities, development impact fees, the City premium, and EMWD facilities. The total estimated eligible project costs are approximately $6.60 million, with the remaining approximately $1.68 million expected to continue to be funded by the Developer.

The intent is to engage Raymond James & Associates to sell the bonds for this CFD.

Table 1: Summary of CFD 2025-2, Quartz Trail, Activity:

Description Date
Finance Committee CFD Formation Review November 12, 2024 Resolution of Intention February 5, 2025
Resolutions of CFD Formation (City Council
Approval)
April 2, 2025 /
April 16, 2025

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

ATTACHMENTS

1. CFD 2025-2 Executive Summary

2. CFD 2025-2 Project Map

3. CFD 2025-2 Preliminary Bond Sale Analysis

4. CFD 2025-2 Boundary Map

5. CFD 2025-2 Public Hearing Report

6. CFD 2025-2 Bond Issuance Request
Item: 6.1
Item Page Number: 2
Menifee Finance Committee July 13, 2026 Page 6 of 69

Executive Summary
Community Facilities District No. 2025‐2 (Quartz Trail) Preliminary Bond Sale Analysis
Project Overview
Description Summary
Developer Lennar Homes
District Formation April 2, 2025
Project Location Southeast of Evans Road and Holland Road Development Detached Single Family Residential
Total Lots 80
Building Permits Issued 80 (100%)
FY 2026‐27 Developed Lots 75*
Homes Closed Escrow 48 (60%)
Homes Sold & In Escrow 26
Estimated Home Size 2,767 SF ‐ 4,134 SF
Average Home Size 3,374 SF
Average Estimated Sales Price $792,728
*Five building permits were issued after the May 1, 2026, building permit cutoff established in the Rate and Metho d of Apportionment. Accordingly, these lots are classified as Approved Property for FY 2026‐27 and will be classified as Developed Property for the FY 2027‐28 levy.

Preliminary Bond Summary
Description Amount
Estimated Par Amount $5,790,000
Estimated Bond Proceeds $4,922,541
Debt Service Reserve Fund $501,659
Cost of Issuance $250,000
Underwriter's Discount $115,800
Capitalized Interest None
Preliminary Bond Compliance
Description City Policy Preliminary Analysis
Value‐to‐Lien Ratio Minimum 4.00:1 10.27:1
Effective Tax Rate Maximum 2.00% 1.82% ‐ 1.84%
FY 2025‐26 Delinquencies Less than 5.00% 3.36%
Allocation of Bond Proceeds
Eligible Improvements 2026 Bonds
City Facilities $2,072,151
City Development Impact Fees $1,268,900
City Premium $253,780
EMWD Fees & Facilities $1,327,710
Total Improvement Fund $4,992,541
Remaining Eligible Improvements to be funded by Developer: $1,675,132 Item: 6.1
Item Page Number: 3
Menifee Finance Committee July 13, 2026 Page 7 of 69

Summary
Community Facilities District No. 2025‐2 (Quartz Trail) was formed to finance eligible public improvements associated with Lennar Homes' 80‐lot residential subdivision. Building permits have been issued for all 80 lots within the development, and the project is projected to be fully absorbed prior to the proposed bond closing. Consistent with the Rate and Method of Apportionment, 75 lots are classified as Developed Property for the FY 2026/27 levy because building permits were issued on or before the May 1, 2026, building permit cutoff. The remaining five lots are classified as Approved Property for FY 2026/27 and are anticipated to become Developed Property for the FY 2027/28 levy. Accordingly, while the initial FY 2026/27 levy reflects 75 Developed Property lots, the proposed financing incorporates all 80 permitted lots into the long‐term repayment analysis.

The preliminary financing analysis demonstrates that the proposed bond issuance satisfies all City bond issuance policies, including value‐to‐lien, effective tax rate, and delinquency thresholds. Based on current market assumptions, approximately $5.79 million of Special Tax Bonds are expected to generate approximately $4.92 million of bond proceeds to reimburse eligible public improvements. The financing is expected to fund approximately 75% of the estimated $6.60 million in eligible project costs, with the remaining approximately $1.68 million continuing to be funded by the developer.

Item: 6.1
Item Page Number: 4
Menifee Finance Committee July 13, 2026 Page 8 of 69

EVANS RD

MURRIETA
RD

CORSON AVE

CRAIG AVE

HOLLAND RD

BRADLEY RD
^_

NEWPORT RDNORMANDY RD

LAZY CREEK RD CHAMPIONS DR
CASAB

ONITA AVE

ALD ERGATE DR
HAUN
RD

KELLER RD

PALOMAR RD
M
C
BOB
RD
ANTELO
PE
RD

MELMORE LN

CANYON LAKE DRN

NEWPORT RD

CANYON HILLS RD

RAILROAD CAN Y ONRD

POTOMAC DR

LUPIN PL
EVANS
RD

FLAXLEAF DR

LASFLORES DR

STERN DR

MURRIETA RD

HILLSID E DR
WRIG
HT

RDBUNDY

CANYON R D

BYERS ST

CRAIG AVE

GEARY ST

HEMLOCK ST

FIR ST DEBON ST

ELROY RD
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(QUARTZ TRAIL)

PROJECT MAP
Item: 6.1
Item Page Number: 5
Menifee Finance Committee July 13, 2026 Page 9 of 69

CITY OF MENIFEE
Community Facilities District No. 2025-2
(Quartz Trail)
Preliminary Bond Analysis
As of 6/29/2026
Preliminary Bond Compliance Table
Requirement 2025-2

1. Value to Lien(1)

4.00:1 10.27:1

2. Delinquency Levels Less than 5% 3.36%

3. Effective Tax Rate(2)

2.00% 1.82% - 1.84%
(1) Value to Lien is based upon average Estimated Sold Home Prices. (2) Range includes estimated FY 2026-27 enrollment.

1. General Information & Development Status
District Formation Date April 2, 2025
District Assessed Value(1) N/A
Bond Structure 100% Assigned
Estimated Preliminary Par Amount(2)
$5,790,000
Preliminary Value to Lien(3)

10.27:1
(1) District Assessed Value information not available for FY 2026/27 via Riverside County as of 6/29/2026 (2) Par amount estimated based on estimated 5.00% Interest Rate. (3) Value to Lien is based upon estimated sizing information, Sold Home Prices from Lennar. 5/27/2026 Ownership Status As Of
Tract No. Land Owner Map Recordation
36803 Lennar 2/13/2025
No. Lots @
Buildout
Permits Issued as of
5/27/2026
Developed
Percentage
Sold & In Escrow
to Date
Sold & Closed
to Date
Ave Monthly
Absorption
Five Month
Projection
80 Lots 80 Lots 100% 26 48 1 80 Lots
Remaining 0 Lots Projected Closed of 80 Lots 100%
Permitted of 80 Lots 100%

2. Special Tax Levy & Delinquency Status
No. Parcels FY 2025-26 Levy Delinquencies(1)
34 $148,517 $4,994
(1) Delinquency information is as of 6/29/2026.

3. Bond Issuance Impact to Property Owners
Avg Home
Value(1) Ad-Valorem Tax Other Taxes CFD Tax Total Tax ETR $792,728 $9,039 $1,019 $4,437 $14,495 1.83%
(1) Based upon Sales Price provided by Lennar on May 27, 2026.

4. Proposed Use of Proceeds (Preliminary)
Estimated Project Fund Capacity: 6,597,673$
Sources Total
Bond Proceeds: Par Amount 5,790,000 $
Facilities Special Tax Levy FY 25-26 143,523 $
Total Sources 5,933,523 $
Uses Total
Debt Service Reserve Fund 501,659 $
Capitalized Interest -$

Underwriter's Discount 115,800$
Cost of Issuance 250,000$
Project Fund Proceeds 4,922,541$
Total Uses 5,790,000$
Net Bond Funds 143,523$
Criteria
Estimated Average Tax Bill for FY 26-27
Item: 6.1
Item Page Number: 6
Menifee Finance Committee July 13, 2026 Page 10 of 69

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐2
(Quartz Trail)
Tract Nos. 36803
Calculation of Bond Sizing and Total Tax Rates
I. Home Prices and Combined Tax Rates:

Plan 12345678 CFD TOTAL
Range of Home Sizes in Square Feet per RMA Under 2,800 to 3,001 to 3,201 to 3,401 to 3,601 to 3,801 to Over 2,800 3,000 3,200 3,400 3,600 3,800 4,000 4,000
Estimated Home Size 2,767 2,889 3,010 3,217 3,423 3,660 3,897 4,134 3,374 Estimated Home Price $718,310 $724,225 $730,141 $764,936 $799,732 $833,248 $866,764 $900,280 $792,728 Ad‐Valorem Tax Rate (1.00%) $7,183.10 $7,242.25 $7,301.41 $7,649.36 $7,997.32 $8,332.48 $8,667.64 $9,002.80 $7,927.28 Metro Water East (0.00700%) $50.28 $50.70 $51.11 $53.55 $55.98 $58.33 $60.67 $63.02 $55.49 Perris Union HS (0.04712%) $338.47 $341.25 $344.04 $360.44 $376.83 $392.63 $408.42 $424.21 $373.53 Mt. San Jacinto Jr. College (0.00254%) $18.25 $18.40 $18.55 $19.43 $20.31 $21.16 $22.02 $22.87 $20.14 Menifee Union School (0.07500%) $538.73 $543.17 $547.61 $573.70 $599.80 $624.94 $650.07 $675.21 $594.55 EMWD IMP U‐35 (0.00430%) $30.89 $31.14 $31.40 $32.89 $34.39 $35.83 $37.27 $38.71 $34.09 EMWD IMP U‐36 (0.00430%) $30.89 $31.14 $31.40 $32.89 $34.39 $35.83 $37.27 $38.71 $34.09 Subtotal GO Bond Debt $8,190.60 $8,258.05 $8,325.50 $8,722.26 $9,119.02 $9,501.19 $9,883.36 $10,265.53 $9,039.16 Perris Union HS CFD 92‐1 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 $342.99 Flood Control Stormwater $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 $3.76 EMWD Standby $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 MWD Standby charge $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 $6.94 CFD No. 2017‐1 Zone 13 ‐ Maint Svcs* $640.47 $640.47 $640.47 $640.47 $640.47 $640.47 $640.47 $640.47 $640.47 Proposed CFD No. 2025‐2 ‐ Fac Special Tax** $4,039.20 $4,070.82 $4,103.46 $4,243.20 $4,382.94 $4,620.60 $4,857.24 $5,093.88 $4,437.01 Subtotal Special Assessments and Taxes $5,058.36 $5,089.98 $5,122.62 $5,262.36 $5,402.10 $5,639.76 $5,876.40 $6,113.04 $5,456.17 Total Annual Property Taxes $13,248.95 $13,348.02 $13,448.12 $13,984.62 $14,521.12 $15,140.95 $15,759.76 $16,378.57 $14,495.33 Annual Prop. Tax Rates as % of Home Price 1.84% 1.84% 1.84% 1.83% 1.82% 1.82% 1.82% 1.82% 1.83% Unit Mix 17 ‐ 18 ‐ 19 ‐ ‐ 21 75
(1)Total CFD ‐ Annual Tax Collections $68,666 $0 $73,862 $0 $83,276 $0 $0 $106,971 $332,776 (2)Administration $30,600
Total Annual Special Taxes for Bonding
((1)Special Taxes ‐ (2)Admin. / 110% Cov) $56,684 $0 $60,973 $0 $68,744 $0 $0 $88,305 $274,705 II. Total Estimated Home Square Footage: 47,039 ‐ 54,180 ‐ 65,037 ‐ ‐ 86,814 253,070 * Escalates at greater of 2% or CPI
** Includes a 2% annual escalator for debt service
III. CFD Bond Sizing & Construction Proceeds:
2025 Bond Amount (5.00% Interest, 30-Year Term, 29-Year Amortization) $5,790,000 Underwriter Discount (2.00%) $115,800
Reserve Fund (Maximum Annual Debt Service) $501,659
Capitalized Interest (0 mos.) $0
Incidental Costs (Estimate) $250,000
Total Discount, Reserve Fund, Capitalized Interest and Incidental Costs $867,459 Net Bond Proceeds $4,922,541
Item: 6.1
Item Page Number: 7
Menifee Finance Committee July 13, 2026 Page 11 of 69

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐2
(Quartz Trail)
Tract Nos. 36803
Revenue Coverage ‐ Assigned Tax Rate
Year
Period
Ending
Gross
Revenues
Priority
Admin Principal Coupon Interest
Net Debt
Service
Debt
Service
Coverage
1 9/1/2027 $332,776 $30,600 $0 5.00% $289,500 $289,500 104.38% 2 9/1/2028 $362,599 $31,212 $10,000 5.00% $289,500 $299,500 110.65% 3 9/1/2029 $369,851 $31,836 $15,000 5.00% $289,000 $304,000 111.19% 4 9/1/2030 $377,248 $32,473 $20,000 5.00% $288,250 $308,250 111.85% 5 9/1/2031 $384,793 $33,122 $30,000 5.00% $287,250 $317,250 110.85% 6 9/1/2032 $392,489 $33,785 $40,000 5.00% $285,750 $325,750 110.12% 7 9/1/2033 $400,339 $34,461 $45,000 5.00% $283,750 $328,750 111.29% 8 9/1/2034 $408,346 $35,150 $55,000 5.00% $281,500 $336,500 110.91% 9 9/1/2035 $416,512 $35,853 $65,000 5.00% $278,750 $343,750 110.74% 10 9/1/2036 $424,843 $36,570 $75,000 5.00% $275,500 $350,500 110.78% 11 9/1/2037 $433,340 $37,301 $85,000 5.00% $271,750 $356,750 111.01% 12 9/1/2038 $442,006 $38,047 $95,000 5.00% $267,500 $362,500 111.44% 13 9/1/2039 $450,846 $38,808 $110,000 5.00% $262,750 $372,750 110.54% 14 9/1/2040 $459,863 $39,584 $120,000 5.00% $257,250 $377,250 111.41% 15 9/1/2041 $469,061 $40,376 $135,000 5.00% $251,250 $386,250 110.99% 16 9/1/2042 $478,442 $41,184 $150,000 5.00% $244,500 $394,500 110.84% 17 9/1/2043 $488,011 $42,007 $165,000 5.00% $237,000 $402,000 110.95% 18 9/1/2044 $497,771 $42,847 $180,000 5.00% $228,750 $408,750 111.30% 19 9/1/2045 $507,726 $43,704 $200,000 5.00% $219,750 $419,750 110.55% 20 9/1/2046 $517,881 $44,578 $220,000 5.00% $209,750 $429,750 110.13% 21 9/1/2047 $528,239 $45,470 $240,000 5.00% $198,750 $438,750 110.03% 22 9/1/2048 $538,803 $46,379 $260,000 5.00% $186,750 $446,750 110.22% 23 9/1/2049 $549,579 $47,307 $280,000 5.00% $173,750 $453,750 110.69% 24 9/1/2050 $560,571 $48,253 $305,000 5.00% $159,750 $464,750 110.24% 25 9/1/2051 $571,782 $49,218 $330,000 5.00% $144,500 $474,500 110.13% 26 9/1/2052 $583,218 $50,203 $355,000 5.00% $128,000 $483,000 110.36% 27 9/1/2053 $594,882 $51,207 $380,000 5.00% $110,250 $490,250 110.90% 28 9/1/2054 $606,780 $52,231 $410,000 5.00% $91,250 $501,250 110.63% 29 9/1/2055 $618,916 $53,275 $440,000 5.00% $70,750 $510,750 110.75% 30 9/1/2056 $631,294 $54,341 $470,000 5.00% $48,750 $518,750 111.22% 31 9/1/2057 $643,920 $55,428 $505,000 5.00% $25,250 $530,250 110.98% Total $15,042,728 $1,296,811 $5,790,000 $6,636,750 $12,426,750 110.62% Item: 6.1
Item Page Number: 8
Menifee Finance Committee July 13, 2026 Page 12 of 69

CITY OF MENIFEE DRAFT v1
Community Facilities District No. 2025‐2
(Quartz Trail)
Tract Nos. 36803
Use of Bond Proceeds
CFD 2025‐2 Tract Nos. 36803
80 Lots
FUNDING REQUIREMENTS Per Lot (Quartz Trail)
City Fees
Law Enforcement $1,012 $80,960
Fire Facilities $708 $56,640
Circulation $7,764 $621,120
General Govt $1,287 $102,960
Parks and Recreation $1,885 $150,800
Quimby $2,921 $233,700
Storm Drain A‐B Watershed $284 $22,720
Subtotal City Fees $15,861 $1,268,900
City Premium (20%) $3,172 $253,780
Total City Fees $19,033 $1,522,680
City Facilities
Offsite Storm Drain (Evans & Holland) $11,720 $937,589
City Landscape / DG Trail Improvements $3,125 $250,000
Street Improvements (Holland, Evans, Corson) $11,057 $884,562 Total City Facilities $25,902 $2,072,151
Total City Facilities and Fees $44,935 $3,594,831
EMWD Fees
Sewer Financial Participation Charge $3,514 $281,120
Sewer Treatment Plant Capacity Charge $6,662 $532,960
Water Financial Participation Charge $7,498 $599,840
Water Supply Development Fee $407 $32,560
1" Meter Drop‐In Fee $405 $32,400
Irrigation Meter Fees $821 $65,680
Total EMWD Fees $19,307 $1,544,560
EMWD Facilities
Water Improvements $5,599 $447,929
Sewer Improvements $4,371 $349,704
Recycled Water Improvements $8,258 $660,649
Total EMWD Facilities $18,229 $1,458,282
Total EMWD Facilities and Fees $37,536 $3,002,842
Total Cost $82,471 $6,597,673
Potential Project Funds Available $4,922,541
ALLOCATION OF PROCEEDS % Per Lot Total
City Facilities 42% $25,902 $2,072,151
City Fees 26% $9,852 $1,268,900
City Premium 5% $3,172 $253,780
Other Agency 27% $16,596 $1,327,710
Total Funded by Bond Proceeds 100% $55,523 $4,922,541
UNFUNDED REQUIREMENTS
Net Bond Proceeds Deficit $0
Unfunded Requirement $1,675,132
Total Fees to be Funded by Developer $1,675,132
Item: 6.1
Item Page Number: 9
Menifee Finance Committee July 13, 2026 Page 13 of 69

Item: 6.1
Item Page Number: 10
Menifee Finance Committee July 13, 2026 Page 14 of 69

Item: 6.1
Item Page Number: 11
Menifee Finance Committee July 13, 2026 Page 15 of 69

Public Hearing Report
Community Facilities District No. 2025-2
(Quartz Trail)
April 2, 2025
Item: 6.1
Item Page Number: 12
Menifee Finance Committee July 13, 2026 Page 16 of 69

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: 13
Menifee Finance Committee July 13, 2026 Page 17 of 69

1 Introduction Page | 1
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
Public Hearing Report
Background
On February 5, 2025, the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2025-2 (Quartz Trail) of the City of Menifee (“CFD No. 2025-2” or “District”), Resolution No. 25-1531, 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 Califor nia, (“Act”).

CFD No. 2025-2 is currently comprised of approximately 26 gross acres within Tract Map 36803 including 80 proposed single-family residential properties. The property is located to the southeast of Evans Road and Holland Road.

For a map showing the boundaries of CFD No. 2025-2 please see Appendix B.

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

1. A brief description of CFD No. 2025-2;

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

3. A brief description of the Boundaries of CFD No. 2025-2; and

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

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

Item: 6.1
Item Page Number: 14
Menifee Finance Committee July 13, 2026 Page 18 of 69

2 Description of Facilities Page | 2
City of Menifee
CFD No. 2025-2
(Quartz Trail)
Public Hearing Report
NOW, THEREFORE, the un dersigned, aut horized representative of Spicer Consulting Group, LLC, the appointed resp
onsible 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 that 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- 2 and financed with the proceeds of special taxes and bonds issued by CFD No. 2025-2 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 facilities, and other public facilities of the City, including the foregoing public facilities that are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended (the “City Facilities”); and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of Eastern Municipal Water District that are included in Eastern Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together with
the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities.

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. 2025-2, the issuance of bonds, the determination of the amount of special taxes to be levied, costs incurred in order to carry out the authorized purposes of CFD No. 2025-2, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2025-2 and any obligations.

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

The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2025-2.

Item: 6.1
Item Page Number: 15
Menifee Finance Committee July 13, 2026 Page 19 of 69

3 Cost Estimate Page | 3
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
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- 2 Bonds is estimated to be $5,630,000 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. 2025-2 may be
used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by t he Act, i
ncidental 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. 2025-2 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be fores een today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $80,960 $80,960
Fire Facilities $56,640 $56,640
Circulation $621,120 $621,120
General Government $102,960 $102,960
Parks and Recreation $150,800 $150,800
Quimby $233,700 $233,700
Storm Drain A-B Watershed $22,720 $22,720
City Facilities $253,780 $253,780
Total City Fees $1,522,680 $1,522,680
City Facilities Total Bond Allocation(1)
Offsite Storm Drain (Evans & Holland) $937,589 $937,589 City Landscape / DG Trail Improvements $250,000 $250,000 Street Improvements (Holland, Evans, Corson) $884,562 $884,562 Total City Facilities $2,072,151 $2,072,151
Eastern Municipal Water District Facilities Total Bond Allocation(1) Water Improvements $447,929 $447,929
Sewer Improvements $349,704 $349,704
Recycled Water Improvements $660,649 $387,511
Total Eastern Municipal Water District Facilities $1,458,282 $1,185,144 Eastern Municipal Water District Fees Total Bond Allocation(1) Sewer Financial Participation Charge $281,120 $0
Sewer Treatment Plant Capacity Charge $532,960 $0
Water Financial Participation Charge $599,840 $0
Water Supply Development Fee $32,560 $0
1" Meter Drop-In Fee $32,400 $0
Irrigation Meter Fees $65,680 $0
Total Eastern Municipal Water District Fees $1,544,560 $0 Item: 6.1
Item Page Number: 16
Menifee Finance Committee July 13, 2026 Page 20 of 69

3 Cost Estimate Page | 4
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
Public Hearing Report
Table 3-1
Cost Estimate (Continued)
Total Eligible Fees/Improvements $5,511,196 $4,779,975
Incidental Financing Costs $850,025
Total Funded by Bond Proceeds $5,630,000
Total Fees/Improvements to be Funded by Developer $731,221 (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: 17
Menifee Finance Committee July 13, 2026 Page 21 of 69

4 Proposed Development Page | 5
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
Public Hearing Report
The CFD No. 2025-2 includes approximately 26 gross acres located to the southeast of Evans Road and Holland Road in the City. The property within CFD No. 2025-2 is expected to be developed with 80 single-family residential properties.

As of Fiscal Year 2025-26 the proposed CFD No. 2025-2 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
358-790-001 358-790-018 358-790-035 358-800-017 358-800-034 358-790-002 358-790-019 358-800-001 358-800-018 358-800-035 358-790-003 358-790-020 358-800-002 358-800-019 358-800-036 358-790-004 358-790-021 358-800-003 358-800-020 358-800-037 358-790-005 358-790-022 358-800-004 358-800-021 358-800-038 358-790-006 358-790-023 358-800-005 358-800-022 358-800-039 358-790-007 358-790-024 358-800-006 358-800-023 358-800-040 358-790-008 358-790-025 358-800-007 358-800-024 358-800-041 358-790-009 358-790-026 358-800-008 358-800-025 358-800-042 358-790-010 358-790-027 358-800-009 358-800-026 358-800-043 358-790-011 358-790-028 358-800-010 358-800-027 358-800-044 358-790-012 358-790-029 358-800-011 358-800-028 358-800-045 358-790-013 358-790-030 358-800-012 358-800-029 358-800-046 358-790-014 358-790-031 358-800-013 358-800-030 358-800-047 358-790-015 358-790-032 358-800-014 358-800-031 358-800-048 358-790-016 358-790-033 358-800-015 358-800-032 358-800-049 358-790-017 358-790-034 358-800-016 358-800-033 358-800-050 A map showing the boundaries of CFD No. 2025-2 is included in Appendix B.

Item: 6.1
Item Page Number: 18
Menifee Finance Committee July 13, 2026 Page 22 of 69

5 Rate and Method of Apportionment Page | 6
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2025-2 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedur
e, 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. 2025-2, and provided further that CFD No. 2025-2 may covenant to foreclose and may actually foreclose on parcels having delinquent Special Taxes as permitted by the Act.

All of the property located within CFD No. 2025-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2025-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2025-2 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on the benefit received by property, the co st of making facilities or authorized services available or other reasonable basis as determined by the City, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Articl e XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax. The available method for so doing is described in Section G of the Rate and Method (“
Prepayment of Special Tax”).

For each year that any Bonds are outstanding the Special Tax shall be levied on all parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse CFD No. 2025-2 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 2,800 sq. ft $3,960.00

2. Single Family Residential Property RU 2,800 sq. ft to 3,000 sq. ft $3,991.00

3. Single Family Residential Property RU 3,001 sq. ft to 3,200 sq. ft $4,023.00

4. Single Family Residential Property RU 3,201 sq. ft to 3,400 sq. ft $4,160.00

5. Single Family Residential Property RU 3,401 sq. ft to 3,600 sq. ft $4,297.00

6. Single Family Residential Property RU 3,601 sq. ft to 3,800 sq. ft $4,530.00

7. Single Family Residential Property RU 3,801 sq. ft to 4,000 sq. ft $4,762.00

8. Single Family Residential Property RU Greater than 4,000 sq. ft $4,994.00

9. Multifamily Property Acre N/A $21,084.00

10. Non-Residential Property Acre N/A $21,084.00
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. 2025-2, see the attached and incorporated in Appendix A.

Item: 6.1
Item Page Number: 19
Menifee Finance Committee July 13, 2026 Page 23 of 69

6 Certifications Page | 7
City of Menifee
CFD
No. 2025-2 (Quartz Trail)
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- 2 and benefits the lands within said CFD No. 2025-2. Further, it is my opinion that the special tax rates and method of apportionment, as set forth herein, are fair and equitable, uniformly applied and not discriminating or arbitrary.

Date: April 2, 2025 SPICER CONSULTING GROUP, LLC
_
_________________________
SHA
NE
SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE
COUNTY

STATE OF

CALIFORNIA
Item: 6.1
Item Page Number: 20
Menifee Finance Committee July 13, 2026 Page 24 of 69

Appendix A:

Rate and Method of Apportionment
Item: 6.1
Item Page Number: 21
Menifee Finance Committee July 13, 2026 Page 25 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2025‐2 (QUARTZ TRAIL) 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. 2025‐2 (Quartz Trail) ("CFD No. 2025‐2"). 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. 2025‐2, 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:

“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. 2025‐2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2025‐2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2025‐2 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. 2025‐2 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. 2025‐2 for any other administrative purposes of CFD No. 2025‐2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

"Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, Item: 6.1
Item Page Number: 22
Menifee Finance Committee July 13, 2026 Page 26 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) 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. 2025‐2 have been pledged.

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

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

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

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

31. "CFD” or “CFD No. 2025‐2" means Community Facilities District No. 2025‐2 (Quartz Trail) 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. 2025‐2.

Item: 6.1
Item Page Number: 23
Menifee Finance Committee July 13, 2026 Page 27 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) 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. 2025‐2 on such Assessor’s Parcel.

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

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

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

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

“Proportionately” means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax Item: 6.1
Item Page Number: 24
Menifee Finance Committee July 13, 2026 Page 28 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) 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. 2025‐2.

"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. 2025‐2 pursuant to the Act to fund the Special Tax Requirement.

"Special Tax Requirement " means the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to replenish any reserve funds established in association with the Bonds (provided that the same amount was not previously levied), (v) an amount up to any anticipated shortfall due to Special Tax delinquencies and (vi) for the collection or accumulation of funds for the acquisition or construction of facilities authorized by CFD No. 2025‐2 or the payment of debt service on Bonds anticipated to be issued, provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on Approved Property or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay debt service or other periodic costs on the Bonds pursuant to the Indenture.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2025‐2, which are not Exempt Property.

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

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

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

Item: 6.1
Item Page Number: 25
Menifee Finance Committee July 13, 2026 Page 29 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) 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. 2025‐2 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

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

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

D. MAXIMUM SPECIAL TAX

1. Developed Property

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

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

a. Assigned Special Tax

Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily Property or Non‐Residential Property shall be subject to an Assigned Special Tax. The Assigned Special Tax for Fiscal Year 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: 26
Menifee Finance Committee July 13, 2026 Page 30 of 69

City of Menifee
Community Facilities District No. 2025‐2 (Quartz Trail) 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