Cities Index.
Agenda packet

Menifee City Council
August 19, 2026

Document
Agenda packet
Meeting
August 19, 2026
Body
Menifee City Council
Pages
12
Original file
255.8 MB
Text extracted from the city's file for reading and search. Open the original on cityofmenifee.primegov.com. That file is the official record.

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The Developer has requested that the boundaries of CFD No. 2026-2 include the area described in Exhibit A of the Resolution of Intention, and that special taxes be levied within the boundaries of CFD 2026-2 in accordance with the Rate and Method of Apportionment (RMA) as described in Exhibit C to the Resolution of Intention, which is included as an appendix to the attached Public Hearing Report.

The Resolution of Intention called for a public hearing to be held on August 19, 2026, for the City Council to formally consider the approval of the formation of CFD 2026-2 and the approval of the levy of the special taxes within CFD 2026-2. Notice of the public hearing was published in the Press-Enterprise and mailed to the Developer in accordance with the Mello-Roos Act.

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

In addition, the Resolution of Formation approves the execution and delivery of the Funding Agreement with the Developer. The Funding Agreement sets forth the terms, among others, pursuant to which the CFD will finance improvements to be constructed by the Developer.

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

The City Council will then be asked to introduce the Ordinance authorizing the levy of the special tax within the CFD in accordance with the RMA.

STRATEGIC PLAN OBJECTIVE
Regular City Business
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 2
Menifee Mayor and City Council
August 19, 2026
Page
1078 of 1366

City of Menifee Staff Report
Proposed Formation of Community Facilities District 2026-2, Quail Hills August 19, 2026

Page 3 of 3 ends

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FISCAL IMPACT
The CFD will be required to annually levy special taxes on all the taxable property within the CFD in order to pay for the costs of facilities, debt service on bonds and administration of the CFD.

Any bonds issued by the CFD are not obligations of the City and will be secured solely by the special taxes levied in the CFD. The Developer has made a deposit to pay for the costs of forming the CFD. The Funding Agreement includes a provision for reimbursement of most of these costs to the Developer if and when bonds are issued for the CFD.

ATTACHMENTS

1. Location Map

2. Resolution of Formation CFD 2026-2

3. Resolution of Necessity to Incur Debt CFD 2026-2

4. Resolution Certifying Election Results CFD 2026-2

5. Ordinance CFD 2026-2

6. CFD Report CFD 2026-2

7. Funding Agreement CFD 2026-2

8. Registrar of Voters Certificate CFD 2026-2
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 3
Menifee Mayor and City Council
August 19, 2026
Page
1079 of 1366

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COMMUNITY FACILITIES DISTRICT NO. 2025-3
(QUAIL HILLS)

PROJECT MAP
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 4
Menifee Mayor and City Council
August 19, 2026
Page
1080 of 1366

4899-8181-3435v4/200299-0036
RESOLUTION NO. 26-__

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2026-2 OF THE CITY OF MENIFEE, QUAIL

HILLS, AUTHORIZING THE LEVY OF A SPECIAL TAX THEREIN, CALLING AN

ELECTION AND APPROVING AND AUTHORIZING CERTAIN ACTIONS RELATED

THERETO
WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore adopted Resolution No. 26-1744 stating its intention to form Community Facilities District No. 2026-2 (Quail Hills) of the City of Menifee (“Community Facilities District No. 2026-2” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of Resolution No. 26-1744 setting forth a description of the proposed boundaries of Community Facilities District No. 2026-2, the facilities and incidental expenses to be financed by the District and the rate and method of apportionment of the special tax proposed to be levied within the District is on file with the City Clerk; and WHEREAS, pursuant to Resolution No. 26-1744, this City Council called a public hearing for August 19, 2026, relative to the intention of this City Council to form proposed Community Facilities District No. 2026-2 and to levy a special tax (the “Special Tax”) and to incur bonded indebtedness in the amount of up to $6,000,000 therein to finance the facilities and incidental expenses described in Resolution No. 26-1744; and
WHEREAS, notice of the public hearing was published and mailed to all landowners of the land proposed to be included within the District as required by law; and WHEREAS, on August 19, 2026, this City Council conducted a noticed public hearing as required by law relative to the proposed formation of Community Facilities District No. 2026-2, the levy of the Special Tax therein and the issuance of bonded indebtedness by the District; and WHEREAS, at the August 19, 2026, public hearing there was filed with this City Council a report containing a description of the facilities necessary to meet the needs of the District and an estimate of the cost of such facilities as required by Section 53321.5 of the Act (the “Engineer’s Report”); and WHEREAS, at the August 19, 2026, public hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2026-2, the levy of the Special Tax and the issuance of bonded indebtedness were heard and full and fair hearings were held; and WHEREAS, following the public hearing, this City Council has determined to authorize the formation of the District to finance the types of facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) set forth in Exhibit A hereto, which are described in more detail in the Engineer’s Report; and
WHEREAS, at the public hearing evidence was presented to this City Council on the matters before it, and the proposed Special Tax to be levied within the District was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing was fully advised as to all matters relating to the formation of the District, the levy of the Special Tax and the issuance of bonded indebtedness therein; and WHEREAS, this City Council has determined, based on a Certificate of Registrar of Voters of the County of Riverside on file in the office of the City Clerk, that no registered voters have been residing in Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 5
Menifee Mayor and City Council
August 19, 2026
Page
1081 of 1366

Resolution Establishing CFD No. 2026-2 (Quail Hills)
4899-8181-3435v4/200299-0036 2
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5 the proposed boundaries of Community Facilities District No. 2026-2 for each of the 90 days prior to August 19, 2026, and that the qualified electors in Community Facilities District No. 2026-2 are the landowners within the District; and
WHEREAS, on the basis of all the foregoing, this City Council has determined to proceed with the establishment of Community Facilities District No. 2026-2 and to call an election therein to authorize (i) the levy of the Special Tax pursuant to the rate and method of apportionment of the special tax, as set forth in Exhibit C attached hereto (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an appropriations limit for Community Facilities District No. 2026-2; and
WHEREAS, in order to facilitate the funding of the Facilities, the legislative body of the District desires to enter into a Funding Agreement (the “Agreement”) with Quail Hills LP, a California limited partnership (the “Developer”) and the form of the Agreement is on file with the City Clerk; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee does hereby determine and order as follows:

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

Section 2.A community facilities district to be designated “Community Facilities District No. 2026-2, Quail Hills, of the City of Menifee” is hereby established pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the District were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

Section 3.The boundaries of Community Facilities District No. 2026-2 are established as shown on the map designated “Community Facilities District No. 2026-2, Quail Hills, City of Menifee, County of Riverside, State of California,” which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County Book of Maps of Assessment and Community Facilities Districts in the Assessor-County Clerk-Recorder’s office of the County of Riverside in Book No. 99 Page No. 76 on July 21, 2026, as Instrument No. 2026-0227834.

Section 4.The types of Facilities and Incidental Expenses authorized to be provided for Community Facilities District No. 2026-2 are those set forth in Exhibit A attached hereto. The estimated cost of the Facilities and Incidental Expenses to be financed is set forth in the Engineer’s Report, which estimates may change as the Facilities are designed and bid for construction and acquisition, as applicable.

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

Section 5.Except where funds are otherwise available, it is the intention of this City Council, subject to the approval of the eligible voters of the District, to levy annually a Special Tax at the rates set forth in the Rate and Method on all non-exempt property within the District sufficient to pay for (i) the Facilities, (ii) the principal and interest and other periodic costs Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 6
Menifee Mayor and City Council
August 19, 2026
Page
1082 of 1366

Resolution Establishing CFD No. 2026-2 (Quail Hills)
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5 on the bonds proposed to be issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees and other expenses of the type permitted by Section 53345.3 of the Act; and (iii) the Incidental Expenses. The District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the District, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the District. The Rate and Method is described in detail in Exhibit C hereto and incorporated herein by this reference, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the District to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Engineer’s Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within Community Facilities District No. 2026-2 will place on the Facilities and on the benefit that each parcel will derive from the right to access the Facilities and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel in accordance with the Rate and Method provided, however, that the Special Tax shall not be levied after Fiscal Year 2071-72. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and such Special Tax is not on or based upon the ownership of real property or the assessed value of real property.

If Special Taxes of the District are levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount that shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time except as authorized under the Rate and Method, (ii) the Special Tax shall not be levied after Fiscal Year 2071-72, and (iii) under no circumstances will the Special Tax levied against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

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

Section 6.In the event that a portion of the property within Community Facilities District No. 2026-2 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in the Rate and Method, or in the event of delinquencies in the payment of Special Taxes levied, the City Council shall, on behalf of Community Facilities District No. 2026-2, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within Community Facilities District No. 2026-2 that is not exempt or delinquent in order to yield the required debt service payments on any outstanding bonds of the District, or to prevent the District from defaulting on any of its other obligations or liabilities; provided, however, under no circumstances will the Special Tax levied against any parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the District by more than ten percent above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The amount of the Special Tax will be set in accordance with the Rate and Method. The Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 7
Menifee Mayor and City Council
August 19, 2026
Page
1083 of 1366

Resolution Establishing CFD No. 2026-2 (Quail Hills)
4899-8181-3435v4/200299-0036 4
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5 obligation to pay Special Taxes may be prepaid only as set forth in Section G of the Rate and Method.

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

Section 8.Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within Community Facilities District No. 2026-2, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within Community Facilities District No. 2026-2 and will be benefited by the Facilities proposed to be provided within Community Facilities District No. 2026-2.

Section 9.It is hereby further determined that there is no ad valorem property tax currently being levied on property within proposed Community Facilities District No. 2026-2 for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities that provide the same services to the territory of Community Facilities District No. 2026-2 as are proposed to be provided by the Facilities to be financed by Community Facilities District No. 2026-2.

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

Section 11.An election is hereby called for Community Facilities District No. 2026-2 on the propositions of levying the Special Tax on the property within Community Facilities District No. 2026-2 and establishing an appropriations limit for the District pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness, pursuant to Sections 53351 and 53353.5 of the Act. The language of the propositions to be placed on the ballot is attached hereto as Exhibit B.

Section 12.The date of the election for Community Facilities District No. 2026-2 on the propositions of incurring the bonded indebtedness, authorizing the levy of the Special Tax and establishing an appropriations limit for the District shall be August 19, 2026, or such later date as is consented to by the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) of the City of Menifee; provided that, if the election is to take place sooner than 90 days after August 19, 2026, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the close of the public hearing on August 19, 2026.

The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to conduct the election following the adoption of this resolution, and all ballots shall be received by, and the City Clerk shall close the election by, 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act.

Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 8
Menifee Mayor and City Council
August 19, 2026
Page
1084 of 1366

Resolution Establishing CFD No. 2026-2 (Quail Hills)
4899-8181-3435v4/200299-0036 5
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5 in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2026-2. The City Clerk has secured a certificate from the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of the date of such certification. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding August 19, 2026, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2026-2, as provided in Section 53326 of the Act. The landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on August 19, 2026, which waiver is on file with the City Clerk.

Section 13.The preparation of the Engineer’s Report is hereby ratified. The Engineer’s Report, as submitted, is hereby approved and was made a part of the record of the public hearing regarding the formation of Community Facilities District No. 2026-2. The Engineer’s Report is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 14.The form of the Agreement on file with the City Clerk is approved as to form, and each of the City Manager, Chief Financial Officer, and their written designees, is authorized to execute the Agreement in substantially the form on file with the City Clerk, together with such changes as are approved by the officer executing the same, with the approval of such changes to be conclusively evidenced by the execution and delivery thereof.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 9
Menifee Mayor and City Council
August 19, 2026
Page
1085 of 1366

Resolution Establishing CFD No. 2026-2 (Quail Hills)
4899-8181-3435v4/200299-0036 6
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5 PASSED, APPROVED AND ADOPTED this the 19th day of August, 2026. ___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 10
Menifee Mayor and City Council
August 19, 2026
Page
1086 of 1366

4899-8181-3435v4/200299-0036 A-1

EXHIBIT A
Types of Facilities
to Be Financed by Community Facilities District No. 2026-2, Quail Hills 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 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 “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 11
Menifee Mayor and City Council
August 19, 2026
Page
1087 of 1366

4899-8181-3435v4/200299-0036 B-1

EXHIBIT B

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS

OF THE CITY OF MENIFEE

SPECIAL TAX AND SPECIAL BOND ELECTION
PROPOSITION A: Shall Community Facilities District No.
2026-2, Quail Hills, of the City of Menifee (the “District”) incur an indebtedness and issue bonds in the maximum
principal amount of $6,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental
Expenses described in Resolution No. 26-1744 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
26-1744 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 26-1744,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal
Year 2026-27, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, for the District be an amount equal to $3,000,000?
YES______
NO_______
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 12
Menifee Mayor and City Council
August 19, 2026
Page
1088 of 1366

4899-8181-3435v4/200299-0036 C-1

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS

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. 2026-2, Quail Hills, ("CFD No. 2026-2”). 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. 2026-2, 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. 2026-2: 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. 2026-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2026-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2026-2 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. 2026-2 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. 2026-2 for any other administrative Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 13
Menifee Mayor and City Council
August 19, 2026
Page
1089 of 1366

4899-8181-3435v4/200299-0036 C-2
purposes of CFD No. 2026-2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor’s Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1 st preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) that have not been issued a building permit on or before May 1 st preceding the Fiscal Year in which the Special Tax is being levied.
"Assessor’s Parcel" means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
"Assessor’s Parcel Number" means that number assigned to an Assessor’s Parcel by the County for purposes of identification.
"Assigned Special Tax" means the Special Tax of that name described in Section D below. "Backup Special Tax" means the Special Tax of that name described in Section D below. "Bonds" means any obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts, or any refunding thereof, to which the Special Tax of CFD No. 2026-2 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. 2026-2” means Community Facilities District No. 2026-2, Quail Hills, 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.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 14
Menifee Mayor and City Council
August 19, 2026
Page
1090 of 1366

4899-8181-3435v4/200299-0036 C-3
“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. 2026-2.
“Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624.
"County" means the County of Riverside, State of California. "Developed Property" means all Assessor’s Parcels that: (i) are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax is being levied, (ii) have an Assessor’s Parcel Number from the County shown on an Assessor’s Parcel Map for the individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May 1st preceding the Fiscal Year in which the Special Tax is being levied.
"Exempt Property" means all Assessor’s Parcels designated as being exempt from Special Taxes as provided for in Section F.
"Final Map" means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section 6624 that creates individual lots for which Building Permits may be issued without further subdivision. "Fiscal Year" means the period commencing on July 1 st of any year and ending the following June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Table 1 of Section D. "Maximum Special Tax" means for each Assessor’s Parcel, the maximum Special Tax, determined in accordance with Section D below, that can be levied by CFD No. 2026-2 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.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 15
Menifee Mayor and City Council
August 19, 2026
Page
1091 of 1366

4899-8181-3435v4/200299-0036 C-4
"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 to 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. 2026-2.
"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. 2026-2 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. 2026-2 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. 2026-2, 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.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 16
Menifee Mayor and City Council
August 19, 2026
Page
1092 of 1366

4899-8181-3435v4/200299-0036 C-5
"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 2026-2027 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 2026-2027, each Assessor’s Parcel within CFD No. 2026-2 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
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 17
Menifee Mayor and City Council
August 19, 2026
Page
1093 of 1366

4899-8181-3435v4/200299-0036 C-6
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 2026-2027 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 2026-2027
Land Use Category
Taxable
Unit Building Square Footage
Assigned
Special Tax
Per Taxable
Unit

1. Single-Family Residential Property RU Less than 2,000 sq. ft $1,468.00

2. Single-Family Residential Property RU 2,000 sq. ft to 2,200 sq. ft $1,555.00

3. Single-Family Residential Property RU 2,201 sq. ft to 2,400 sq. ft $1,586.00

4. Single-Family Residential Property RU 2,401 sq. ft to 2,600 sq. ft $1,662.00

5. Single-Family Residential Property RU 2,601 sq. ft to 2,800 sq. ft $1,738.00

6. Single-Family Residential Property RU Greater than 2,800 sq. ft $1,816.00

7. Multifamily Property Acre N/A $13,993.00

8. Non-Residential Property Acre N/A $13,993.00
On each July 1, commencing July 1, 2027, the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for each Taxable Unit for all Land Use Categories located on the Assessor’s Parcel. The CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single- Family Residential Property or Approved Property expected to be classified as Single-Family Residential Property shall be calculated according to the following formula.

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

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

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 18
Menifee Mayor and City Council
August 19, 2026
Page
1094 of 1366

4899-8181-3435v4/200299-0036 C-7
A = Acreage of Single-Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator L = Number of Assessor’s Parcels of Single-Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator.

In the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor’s Parcels within such changed or modified area shall be $13,993 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 $13,993 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 2027, 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 $13,993 per Acre.

On each July 1, commencing July 1, 2027, 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 $13,993 per Acre.

On each July 1, commencing July 1, 2027, 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 2026-2027 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.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 19
Menifee Mayor and City Council
August 19, 2026
Page
1095 of 1366

4899-8181-3435v4/200299-0036 C-8
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 Assessor’s Parcel of Provisional Undeveloped Property up to 100% of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the Special Tax Requirement.

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

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s Parcels that are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels that are used as places of worship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels that are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels that are privately owned and are encumbered by or restricted solely for public uses, (vi) Assessor’s Parcels that are classified as Non-Residential Property or (vii) Assessor’s Parcels restricted to other types of public uses determined by the City Council, provided that no such classification would reduce the sum of all Taxable Property to less than 16.79 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 16.79 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 16.79 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 20
Menifee Mayor and City Council
August 19, 2026
Page
1096 of 1366

4899-8181-3435v4/200299-0036 C-9
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Facilities” means $4,000,000 expressed in 2026 dollars, which shall increase by the Construction Inflation Index on July 1, 2027, 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. 2026-2, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment. “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. 2026-2.
“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles.
“Future Facilities Costs” means the CFD Facilities minus (i) amounts deposited in the Construction Fund, (ii) amounts deposited in any escrow accounts funded by the Outstanding Bonds and anticipated to fund public facilities costs, and (iii) public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, but in no event shall such amount be less than zero.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax that will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax.

1. Prepayment in Full
The Special Tax obligation may be prepaid and permanently satisfied for (i) Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has been issued, (iii) Assessor’s Parcels of Approved Property or Undeveloped Property for which a Building Permit has not been issued and (iv) Assessor’s Parcels of Provisional Undeveloped Property. The Special Tax obligation applicable to an Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel. Prepayment must be Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 21
Menifee Mayor and City Council
August 19, 2026
Page
1097 of 1366

4899-8181-3435v4/200299-0036 C-10
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.

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.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 22
Menifee Mayor and City Council
August 19, 2026
Page
1098 of 1366

4899-8181-3435v4/200299-0036 C-11

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”).

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

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

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

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

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

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for which the Special Tax obligation is prepaid, the City Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of the 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 Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 23
Menifee Mayor and City Council
August 19, 2026
Page
1099 of 1366

4899-8181-3435v4/200299-0036 C-12
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 2071-2072 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. 2026-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2026-2 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2026- 2 have been satisfied.

I. MANNER OF COLLECTION
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 24
Menifee Mayor and City Council
August 19, 2026
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4899-8181-3435v4/200299-0036 C-13
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. 2026-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted by the Act.

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

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 25
Menifee Mayor and City Council
August 19, 2026
Page
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4899-3285-8555v3/200299-0036
RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL

HILLS, OF THE CITY OF MENIFEE DETERMINING THE NECESSITY TO INCUR BONDED INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $6,000,000 WITHIN COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS, OF THE CITY OF

MENIFEE AND CALLING AN ELECTION THEREIN
WHEREAS, on July 15, 2026, the City Council of the City of Menifee (the “City Council”) adopted Resolution No. 26-1744 stating its intention to form Community Facilities District No. 2026-2, Quail Hills, of the City of Menifee (“Community Facilities District No. 2026-2” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and WHEREAS, on July 15, 2026, the City Council also adopted Resolution No. 26-1745 stating its intention to incur bonded indebtedness in the amount of up to $6,000,000 within proposed Community Facilities District No. 2026-2 to finance (1) the purchase, construction, modification, expansion, improvement or rehabilitation of public facilities identified in Exhibit B to Resolution No. 26-1744, and (2) the incidental expenses to be incurred in financing such public facilities and forming and administering the District, as identified in Exhibit B to Resolution No. 26-1744; and WHEREAS, notice was published as required by law relative to the intention of the City Council to form proposed Community Facilities District No. 2026-2 and to incur bonded indebtedness in the amount of up to $6,000,000 within the boundaries of proposed Community Facilities District No. 2026- 2; and
WHEREAS, on August 19, 2026, this City Council conducted a noticed public hearing to determine whether it should proceed with the formation of Community Facilities District No. 2026-2, issue bonds to pay for the facilities and incidental expenses described in Resolution No. 26-1744 and authorize the rate and method of apportionment of a special tax to be levied within Community Facilities District No. 2026-2 for the purposes described in Resolution No. 26-1744; and WHEREAS, at said hearing all persons desiring to be heard on all matters pertaining to the formation of Community Facilities District No. 2026-2, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed facilities and incidental expenses were heard and a full and fair hearing was held; and
WHEREAS, the City Council subsequent to such hearing adopted Resolution No. 26-___ establishing Community Facilities District No. 2026-2 (the “Resolution of Formation”) and authorizing the financing of the public facilities (the “Facilities”) and the incidental expenses (the “Incidental Expenses”) described in Exhibit A thereto; and
WHEREAS, the City Council desires to make the necessary findings to incur bonded indebtedness within the District, to declare the purpose for said debt, and to authorize the submittal of a proposition to issue bonded indebtedness to the voters of the District, being the landowners within the proposed District, all as authorized and required by law; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee hereby determines and orders as follows:

Section 1.It is necessary to incur bonded indebtedness in a maximum aggregate principal amount not to exceed $6,000,000 within Community Facilities District No. 2026-2.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 26
Menifee Mayor and City Council
August 19, 2026
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Resolution Determining Necessity to Incur Debt for CFD No. 2026-2 (Quail Hills) 4899-3285-8555v3/200299-0036 2
Section 2.The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities and financing the Incidental Expenses, as described in the Resolution of Formation, and carrying out the powers and purposes of Community Facilities District No. 2026-2, including, but not limited to, financing the costs of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees and other expenses of the type authorized by Section 53345.3 of the Act.

Section 3.The whole of the property within Community Facilities District No. 2026-2, other than property exempted from the special tax pursuant to the provisions of the rate and method of apportionment attached to Resolution No. 26-1744 as Exhibit C, shall pay for the bonded indebtedness pursuant to the levy of the special tax authorized by the Resolution of Formation.

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

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

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

Section 7.Pursuant to Section 53351 of the Act, a special election is hereby called for Community Facilities District No. 2026-2 on the proposition of incurring the bonded indebtedness.

The proposition relative to incurring bonded indebtedness in the maximum aggregate principal amount of $6,000,000 shall be in the form of Proposition A set forth in Exhibit A hereto. In accordance with Sections 53351(h) and 53353.5 of the Act, the election shall be consolidated with the special election called on the proposition of levying a special tax within the District as described in the Resolution of Formation, which proposition shall be in the form of Proposition B set forth in Exhibit A, and on the proposition of establishing an appropriations limit for the District, which proposition shall be in the form of Proposition C set forth in Exhibit A.

Section 8.The date of the special election for Community Facilities District No. 2026-2 on the propositions of incurring the bonded indebtedness, authorizing the levy of the special tax and setting an appropriations limit shall be August 19, 2026, or such later date as is consented to by the City Clerk, or a Deputy City Clerk of the City (referred to herein as the “City Clerk”); provided that, if the election is to take place sooner than 90 days after August 19, 2026, then the unanimous written consent of each qualified elector within the District to such election date must be obtained. The polls shall be open for said election immediately following the public hearing on August 19, 2026. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City of Menifee insofar as such provisions are determined by the City Clerk to be applicable.

The City Clerk is authorized to conduct the election following the adoption of the Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 27
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Determining Necessity to Incur Debt for CFD No. 2026-2 (Quail Hills) 4899-3285-8555v3/200299-0036 3
Resolution of Formation, and this resolution and all ballots shall be received by and the City Clerk shall close the election by 11:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. Pursuant to Section 53326 of the Act, the ballots for the special election shall be distributed in person, or by mail with return postage prepaid, to the qualified electors within Community Facilities District No. 2026-2.

The City Clerk has secured a certificate of the Registrar of Voters of the County of Riverside certifying that there were no registered voters within the District as of the date of such certification. Accordingly, since there were fewer than 12 registered voters within the District for each of the 90 days preceding August 19, 2026, the qualified electors shall be the landowners within the District and each landowner, or the authorized representative thereof, shall have one vote for each acre or portion thereof that such landowner owns within Community Facilities District No. 2026-2, as provided in Section 53326 of the Act. The landowner within the District has executed and delivered a waiver of certain election law requirements and consenting to the holding of the election on August 19, 2026, which waiver is on file with the City Clerk.

Section 9.This Resolution shall be effective upon its adoption.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 28
Menifee Mayor and City Council
August 19, 2026
Page
1104 of 1366

Resolution Determining Necessity to Incur Debt for CFD No. 2026-2 (Quail Hills) 4899-3285-8555v3/200299-0036 4
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 29
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Determining Necessity to Incur Debt for CFD No. 2026-2 (Quail Hills) 4899-3285-8555v3/200299-0036 4
PASSED, APPROVED AND ADOPTED this the 19th day of August, 2026. ___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 30
Menifee Mayor and City Council
August 19, 2026
Page
1106 of 1366

Resolution Determining Necessity to Incur Debt for CFD No. 2026-2 (Quail Hills) 4899-3285-8555v3/200299-0036 5
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 31
Menifee Mayor and City Council
August 19, 2026
Page
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4899-3285-8555v3/200299-0036 A-1

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2026-2 (QUAIL HILLS)

OF THE CITY OF MENIFEE

SPECIAL TAX AND SPECIAL BOND ELECTION
PROPOSITION A: Shall Community Facilities District
No. 2026-2 (Quail Hills) of the City of Menifee (the
“District”) incur an indebtedness and issue bonds in the maximum principal amount of $6,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2026-
1744 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
2026-1744 of the City Council of the City of Menifee be levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 2026-1744,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2026-27, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal to $3,000,000?
YES______
NO_______
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 32
Menifee Mayor and City Council
August 19, 2026
Page
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4897-2111-0971v3/200299-0036
RESOLUTION NO. 26-___

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

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS, OF THE CITY OF MENIFEE

CERTIFYING ELECTION RESULTS
WHEREAS, the City Council of the City of Menifee called and duly held an election on August 19, 2026, within the boundaries of Community Facilities District No. 2026-2, Quail Hills, of the City of Menifee (“Community Facilities District No. 2026-2” or the “District”) pursuant to Resolution Nos. 26-___ and 26-___ for the purpose of presenting to the qualified electors within the District Propositions A, B and C, attached hereto as Exhibit A; and
WHEREAS, there has been presented to this City Council a certificate of the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Menifee does hereby determine and order as follows:

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

Section 2.Propositions A, B and C presented to the qualified electors of the District on August 19, 2026, were approved by more than two-thirds of the votes cast at said election and Propositions A, B and C each has carried. The City Council, acting as the legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in an amount not to exceed $6,000,000 specified in Proposition A.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 33
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Certifying Election Results for CFD No. 2026-5 (Quail Hills) 4897-2111-0971v3/200299-0036 2
5 2
8 6
7 Section 4.This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this the 19th day of August, 2026. ___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 34
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Certifying Election Results for CFD No. 2026-5 (Quail Hills) 4897-2111-0971v3/200299-0036 3
5 2
8 6
7 Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 35
Menifee Mayor and City Council
August 19, 2026
Page
1111 of 1366

4897-2111-0971v3/200299-0036

EXHIBIT A

BALLOT PROPOSITIONS
COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS

OF THE CITY OF MENIFEE

SPECIAL TAX AND SPECIAL BOND ELECTION
PROPOSITION A: Shall Community Facilities District
No. 2026-2, Quail Hills, of the City of Menifee (the
“District”) incur an indebtedness and issue bonds in the maximum principal amount of $6,000,000, with interest
at a rate or rates not to exceed the maximum interest
rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 26-
1744 of the City Council of the City of Menifee?
PROPOSITION B: Shall a special tax with a rate and
method of apportionment as provided in Resolution No.
26-1744 of the City Council of the City of Menifee be
levied to pay for the Facilities, Incidental Expenses and other purposes described in Resolution No. 26-1744,
including the payment of the principal of and interest on bonds issued to finance the Facilities and Incidental
Expenses?
YES______
NO_______
YES______
NO_______
PROPOSITION C: For each year commencing with
Fiscal Year 2026-27, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, for the District be an amount equal to $3,000,000?
YES______
NO_______
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 36
Menifee Mayor and City Council
August 19, 2026
Page
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4897-2111-0971v3/200299-0036 2
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 37
Menifee Mayor and City Council
August 19, 2026
Page
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4897-2111-0971v3/200299-0036

EXHIBIT B

CERTIFICATE OF CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Stephanie Roseen, City Clerk of the City of Menifee, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Community Facilities District No. 2026-2, Quail Hills, of the City of Menifee (the “City”). The election was held in the City Council Chambers, 29844 Haun Road, Menifee, California, on August 19, 2026. I caused to be delivered ballots to each qualified elector. __ (__) ballots were returned.

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

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

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 19th day of August, 2026.
/s/ Stephanie Roseen
Stephanie Roseen, City Clerk
City of Menifee
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 38
Menifee Mayor and City Council
August 19, 2026
Page
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4896-5373-7659v3/200299-0036
ORDINANCE NO. 2026-___

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA

ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS, OF THE CITY OF MENIFEE

AUTHORIZING THE LEVY OF SPECIAL TAXES
WHEREAS, on July 15, 2026, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 2026-1744 declaring its intention to form Community Facilities District No. 2026-2, Quail Hills, of the City of Menifee (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 26-1745 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on August 19, 2026, after providing all notice required by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 26-1744 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of up to $6,000,000 of bonded indebtedness as described in Resolution No. 26-1745; and WHEREAS, at the August 19, 2026, public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 26-1744 and to secure the payment of up to $6,000,000 of bonded indebtedness of the District as described in Resolution No. 26-1745 (the “Bonds”) were heard and a full and fair hearing was held; and
WHEREAS, on August 19, 2026, the City Council adopted Resolution Nos. 26-___ and 26-___ which formed the District and called a special election within the District on August 19, 2026, on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and WHEREAS, on August 19, 2026, a special election was held within the District at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the District for the purposes described in Resolution No. 26-1744, the issuance of the Bonds as described in Resolution No. 26-1745 and establishing an appropriations limit for the District; and
NOW, THEREFORE, the City Council of the City of Menifee, California does ordain as follows:

Section 1.The above recitals are all true and correct.

Section 2.By the passage of this Ordinance, the City Council authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Exhibit C to Resolution No. 26-1744, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities authorized to be financed by the District, and payment of all costs of administering the District.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 39
Menifee Mayor and City Council
August 19, 2026
Page
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Ordinance Levying Special Taxes for CFD No. 2026-2
Ordinance No. 2026-___
4896-5373-7659v3/200299-0036 2
Section 3.Each of the Mayor, the City Manager, the Chief Financial Officer, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate.

Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer-Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to the special tax, until the Bonds are paid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.

Section 4.Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 26-___ or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.

Section 5.All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 26-___.

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

Section 7.As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund the Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 40
Menifee Mayor and City Council
August 19, 2026
Page
1116 of 1366

Ordinance Levying Special Taxes for CFD No. 2026-2
Ordinance No. 2026-___
4896-5373-7659v3/200299-0036 3
Section 9.The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.

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

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

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

This Ordinance was introduced and read on the 19th day of August, 2026 and APPROVED AND ADOPTED this ___ day of ____________, 2026.
___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 41
Menifee Mayor and City Council
August 19, 2026
Page
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Public Hearing Report

Community Facilities District No. 2026-2
(Quail Hills)

August 19, 2026

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 42
Menifee Mayor and City Council
August 19, 2026
Page
1118 of 1366

Table of Contents

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

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

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 43
Menifee Mayor and City Council
August 19, 2026
Page
1119 of 1366

1 Introduction Page | 1
City of Menifee
CFD No. 2026-2 (Quail Hills)
Public Hearing Report
Background
On July 15, 2026 the City Council (the “City Council”) of the City of Menifee (the “City”), adopted a Resolution of Intention to form Community Facilities District No. 2026-2 (Quail Hills) of the City of Menifee (“CFD No. 2026-2” or “District”), Resolution No. 26-1744, 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. 2026-2 is currently comprised of approximately 43 gross acres within Tract Map 37692 including 130 proposed single family residential properties. The property is located between Williams Drive and Goetz Road.

For a map showing the boundaries of CFD No. 2026-2 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. 2026-2;

2. A brief description of the Facilities required at the time of formation to meet the needs of CFD No. 2026-2.

3. A brief description of the Boundaries of CFD No. 2026-2; and

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

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 44
Menifee Mayor and City Council
August 19, 2026
Page
1120 of 1366

2 Description of Facilities Page | 2
City of Menifee
CFD No. 2026-2 (Quail Hills)
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 purchase, construction, expansion, or rehabilitation 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 tha t are proposed by CFD No. 2026-2 and financed with the proceeds of special taxes an d bonds issued by CFD No. 2026-2 consist of the construction, purchase, modification, expansion, rehabilitation and/or improvement of 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 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 “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. 2026-2, 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. 2026-2, including legal fees, fees of consultants, engineering, planning, designing and the annual costs to administer CFD No. 2026-2 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. 2026-2.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 45
Menifee Mayor and City Council
August 19, 2026
Page
1121 of 1366

3 Cost Estimate Page | 3
City of Menifee
CFD No. 2026-2 (Quail Hills)
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. 2026- 2 Bonds is estimated to be $3,150,000 based upon current dollars (Fiscal Year 2026-27). b) For further particulars please reference Table 3-1 below and incorporated herein by reference. c) P ursuant to Section 53340 of the Act, the proceeds of any special tax levied and collected by CFD No. 2026-2 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of special taxes, collection of special taxes, payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the District. The incidental expenses associated with the annual administration of CFD No. 2026-2 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 foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate
City Fees Total Bond Allocation(1)
Law Enforcement $139,880 $139,880
Fire Facilities $97,760 $97,760
Circulation $1,072,760 $1,072,760
General Govt $177,710 $177,710
Parks and Recreation $260,520 $260,520
Quimby $381,000 $348,505
City Facilities $425,926 $425,926
Total City Fees $2,555,556 $2,523,061

Total Eligible Fees/Improvements $2,555,556 $2,523,061
Incidental Financing Costs $626,939
Total Funded by Bond Proceeds $3,150,000

Total Fees/Improvements to be Funded by Developer $32,495 (1) Amounts are allocated based upon estimated bond sizing and may change based upon market conditions at the time of bond issuance. Allocation of bond proceeds between facility types to be determined at the time of bond issuance.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 46
Menifee Mayor and City Council
August 19, 2026
Page
1122 of 1366

4 Proposed Development Page | 4
City of Menifee
CFD No. 2026-2 (Quail Hills)
Public Hearing Report
The CFD No. 2026-2 includes approximately 43 gross acres located between Williams Drive and Goetz Road in the City .

The property within CFD No. 2026-2 is expected to be developed with 130 single family residential properties. As of Fiscal Year 2026-27 the proposed CFD No. 2026-2 includes the following Assessor's Parcel Numbers:

Assessor’s
Parcel Number
341-060-002
341-060-012
A map showing the boundaries of CFD No. 2026-2 is included in Appendix B.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 47
Menifee Mayor and City Council
August 19, 2026
Page
1123 of 1366

5 Rate and Method of Apportionment Page | 5
City of Menifee
CFD No. 2026-2 (Quail Hills)
Public Hearing Report
The Rate and Method of Apportionment allows each property owner within CFD No. 2026-2 to estimate the annual Special Tax amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method”). The Special Tax will be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the CFD Administrator may directly bill the Special Taxes, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of CFD No. 2026-2, and provided further that CFD No. 2026-2 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. 2026-2, unless exempted by law or by the Rate and Method proposed for CFD No. 2026-2, shall be taxed for the purpose of providing necessary facilities to serve the District. The Boundary Map for CFD No. 2026-2 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 cost 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 Article 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 parc els 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. 2026-2 for uncollected Special Taxes associated with the levy of such Special Taxes, but the Special Tax shall not be levied after 2071-72 Fiscal Year.

Table 5-1
Assigned Special Tax for Developed Property
Fiscal Year 2026-27
Land Use Category
Taxable
Unit Building Square Footage
Assigned Special
Tax Per Taxable
Unit

1. Single Family Residential Property RU Less than 2,000 sq. ft $1,468.00

2. Single Family Residential Property RU 2,000 sq. ft to 2,200 sq. ft $1,555.00

3. Single Family Residential Property RU 2,201 sq. ft to 2,400 sq. ft $1,586.00

4. Single Family Residential Property RU 2,401 sq. ft to 2,600 sq. ft $1,662.00

5. Single Family Residential Property RU 2,601 sq. ft to 2,800 sq. ft $1,738.00

6. Single Family Residential Property RU Greater than 2,800 sq. ft $1,816.00

7. Multifamily Property Acre N/A $13,993.00

8. Non-Residential Property Acre N/A $13,993.00

Escalation of Special Taxes
On each July 1, commencing on July 1, 2027 the Assigned Special Tax shall increase by two percent (2.00%), of the amount in effect in the prior Fiscal Year.

For particulars as to the Rate and Method for CFD No. 2026-2, see the attached and incorporated in Appendix A.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 48
Menifee Mayor and City Council
August 19, 2026
Page
1124 of 1366

6 Certifications Page | 6
City of Menifee
CFD No. 2026-2 (Quail Hills)
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. 2026- 2 and benefits the lands within said CFD No. 2026-2. 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: August 19, 2026 SPICER CONSULTING GROUP, LLC

__________________________

SHANE SPICER

SPECIAL TAX CONSULTANT FOR

CITY OF MENIFEE

RIVERSIDE COUNTY

STATE OF CALIFORNIA

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 49
Menifee Mayor and City Council
August 19, 2026
Page
1125 of 1366

Appendix A:

Rate and Method of Apportionment
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 50
Menifee Mayor and City Council
August 19, 2026
Page
1126 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-2 (QUAIL HILLS)

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. 2026-2 (Quail Hills) ("CFD No. 2026-2”). 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. 2026-2, 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 record ed 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. 2026-2: 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. 2026-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No . 2026-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2026-2 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. 2026-2 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. 2026-2 for any other administrative purposes of CFD No. 2026-2, including attorney’s fees and other costs relate d 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, Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 51
Menifee Mayor and City Council
August 19, 2026
Page
1127 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 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 the Special Tax of CFD No. 2026-2 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, “Bui lding 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” or “CFD No. 2026-2” means Community Facilities District No. 2026-2 (Quail Hills) 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 Menif ee, acting as the legislative body of CFD No. 2026-2.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 52
Menifee Mayor and City Council
August 19, 2026
Page
1128 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 1 st preceding the Fiscal Year in which the Sp ecial 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 Buil ding 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 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. 2026-2 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 Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 53
Menifee Mayor and City Council
August 19, 2026
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City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 pursuan t to the provisions of Section F, but cannot be classified as Exempt Property because to do so wo uld 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. 2026-2.

"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 Admi nistrator. 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. 2026-2 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 . 2026-2 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 Pr operty or Undeveloped Property as set forth in Steps Two or Three of Section E., less (vii) any amounts available to pay de bt service or other peri odic costs on the Bonds pursuant to the Indenture.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2026-2, 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 54
Menifee Mayor and City Council
August 19, 2026
Page
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City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) Page 5

B. SPECIAL TAX

Commencing Fiscal Year 2026-2027 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 2026-2027, each Assessor’s Parcel within CFD No. 2026-2 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 Single Family Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Specia l Tax for such Assessor’s Pa rcel 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 2026-2027 applicable to an Assessor's Parcel of Develope d Property shall be determined pursuant to Table 1 below.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 55
Menifee Mayor and City Council
August 19, 2026
Page
1131 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) Page 6

TABLE 1

ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026-2027

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

1. Single Family Residential Property RU Less than 2,000 sq. ft $1,468.00

2. Single Family Residential Property RU 2,000 sq. ft to 2,200 sq. ft $1,555.00

3. Single Family Residential Property RU 2,201 sq. ft to 2,400 sq. ft $1,586.00

4. Single Family Residential Property RU 2,401 sq. ft to 2,600 sq. ft $1,662.00

5. Single Family Residential Property RU 2,601 sq. ft to 2,800 sq. ft $1,738.00

6. Single Family Residential Property RU Greater than 2,800 sq. ft $1,816.00

7. Multifamily Property Acre N/A $13,993.00

8. Non-Residential Property Acre N/A $13,993.00
On each July 1, commenc ing July 1, 2027, the Assigned Special Ta x 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 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 classified as Single Family Residential Property shall be 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 56
Menifee Mayor and City Council
August 19, 2026
Page
1132 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 $13,993 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 $13,993 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 2027, 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 $13,993 per Acre.

On each July 1, commencing July 1, 2027, 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 $13,993 per Acre.

On each July 1, commencing July 1, 2027, 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 2026-2027 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 rates 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 57
Menifee Mayor and City Council
August 19, 2026
Page
1133 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 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 whic h 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 16.79 Acres.

Notwithstanding the above, the City Council shall not cl assify an Assessor’s Parcel as Exempt Property if such classification would reduce the sum of all Taxa ble Property to less than 16.79 Acres. Assessor's Parcels which cannot be classified as Exempt Prop erty because such classification would reduce the Acreage of all Taxable Property to less than 16.79 Ac res 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:

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 58
Menifee Mayor and City Council
August 19, 2026
Page
1134 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) Page 9

“CFD Facilities” means $4,000,000 expressed in 2026 dollars, whic h shall increase by the Construction Inflation Index on July 1, 2027, 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. 2026- 2, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.

“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. 2026-2.

“Construction Inflation Index” means the greater of (i) 2% and (ii) the annual percentage change in the Engineering News-Record Building Cost Index for the 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, 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 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 59
Menifee Mayor and City Council
August 19, 2026
Page
1135 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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.

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 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 60
Menifee Mayor and City Council
August 19, 2026
Page
1136 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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”).

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 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.

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

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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 61
Menifee Mayor and City Council
August 19, 2026
Page
1137 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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 2071-2072 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. 2026-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2026-2 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. 2026-2 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. 2026- 2 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 Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 62
Menifee Mayor and City Council
August 19, 2026
Page
1138 of 1366

City of Menifee
Community Facilities District No. 2026-2 (Quail Hills) 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.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 63
Menifee Mayor and City Council
August 19, 2026
Page
1139 of 1366

Appendix B:

Proposed Boundary Map
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 64
Menifee Mayor and City Council
August 19, 2026
Page
1140 of 1366

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 65
Menifee Mayor and City Council
August 19, 2026
Page
1141 of 1366

Appendix C:

Resolution of Intention
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 66
Menifee Mayor and City Council
August 19, 2026
Page
1142 of 1366

RESOLUTION NO. 26-1744

RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE TO ESTABLTSH COMMUNTTY FACTLTIES DISTRICT NO.2026-2 (QUAIL HILLS) OF

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

THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of Menifee (the "City") received a petition signed by the owner of more than ten percent of the land within the boundaries of the territory that is proposed for inclusion in a proposed community facilities district, which petition meets the requirements of Sections 53318 and 533'19 of the Government Code of the State of Californiai and
WHEREAS, the City Council of the City (the "City Council") desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Exhibit "A" hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as "Community Facilities District No.2026-2 (Quail Hills) of the City of Menifee" ("Community Facilities District No.2026-2" or the "District") pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the "Act") to finance (1) the purchase, conslruction, modification, expansion, improvement or rehabilitation of certain real or other tangible property described in Exhibit "B" hereto and incorporated herein by this reference, including all furnishings, equipment and supplies related thereto (collectively, the "Facilities"), which Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred in connection with financing the Facilities and forming and administering the District (the "lncidental Expenses"); and WHEREAS, the City Council further rntends to approve an estimate of the costs of the Facilities and the lncidental Expenses for Community Facilities District No. 2026-2, and WHEREAS, it is the intention of the City Council to consider financing the Facilities and the lncidental Expenses through the formation of Community Facilities District No. 2026-2 and the issuance of bonded indebtedness in an amount not to exceed $6,000,000 with respect to the Facilities and the lncidental Expenses and the levy of a special tax to pay for the Facilities and the lncidental Expenses (the "special Tax") and to pay debt service on the bonded indebtedness, provided that the bond sale and such Special Tax levy are approved at an election to be held within the boundaries of Community Facilities District No. 2026-2: and
WHEREAS, the City desires to enter into a reimbursement agreement with Quail Hills LP, a California limited partnership (the "Developel'), the form of which is on flle with the City Clerk (the "Reimbursement Agreement"), to provide for the reimbursement of certain amounts advanced by the Developer in connection with the formation of the District; and NOW, THEREFORE, BE lT RESOLVED that the City Council of the City of Menifee, California, does hereby determine and order as follows:

Section 'l. The above recitals are true and correct
Section 2 A community facilities distract is proposed to be established under the terms of the Act. lt is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Exhibit "A" hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2026-2lhal is on file with the City Clerk. The City Clerk 4933-8998!601 v4l200299-0036
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 67
Menifee Mayor and City Council
August 19, 2026
Page
1143 of 1366

Section 4.

Section 5.

Resolution of lntention to Establish CFD No. 2026-2 (Quail Hills) is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the Assessor-County Clerk-Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 31 1 1 of the Streets and Highways Code of the State of California.

The name of the proposed community facilities district shall be "Community Facilities District No. 2026-2 (Quail Hills) of the City of Menifee." The Facilities proposed to be provided wrthin Community Facilities District No. 2026-2 are public facilities as defined in the Act, which the City is authorized by law to construct, acquire, own and operate. The City Council hereby finds and determines that the description of the Facilities herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance.

The lncidental Expenses expected to be incurred include the cost of planning and designing the Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special Tax within the proposed District. The Facilities may be acquired from one or more of the property owners within the District as completed public improvements or may be constructed from bond or Special Tax proceeds.

All or a portion of the Facilities may be purchased with District funds as completed public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section 53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the Act. Any portion of the Facilities may be financed through a lease or lease-purchase arrangement if the District hereafter determines that such arrangement is of benefit to the District.
lf the Special Tax is levied against any parcel used for private residential purposes, (i) the maximum Special Tax rate shall be specified as a dollar amount that shall be calculated and established not later than the date on which the parcel is first subject to the Special Tax because of its use for private residential purposes and shall not be increased over time, except as set forth in Exhibit "C" hereto, (ii) such Special Tax shall not be levied after fiscal year 2071-2072, as described in Exhibit"C" hereto, and (iii) under no circumstances will the Special Tax levied in any fiscal year against any such parcel used for private residential uses be increased as a consequence of delinquency or default by the owner or owners of any other parcel or parcels within the 24933-8998460 1 v4l200299-0036
Section 3.

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

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 68
Menifee Mayor and City Council
August 19, 2026
Page
1144 of 1366

Resolution of lntention to Establish CFD No 2026-2 (Quail Hills) District by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults.

The Special Tax is based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2026-2 will place on the Facilities and on the benefit that each parcel derives from the right to access the Facilities. The City Council hereby determines that the proposed Facilities are necessary to meet the increased demand placed upon the City and the existing infrastructure in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special tax with respect to the Special Tax set forth in Exhibit "C" to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership of real property. ln the event that a portion of the property within Community Facilities District No.2026-2 shall become for any reason exempt, wholly or partially, from the levy of the Special Tax specified in Exhibit "C," the City Council shall, on behalf of Community Facilities Diskict No. 2026-2, cause the levy to be increased, subject to the limitation of the maximum Special Tax for a parcel as set forth in Exhibit "C," to the extent necessary upon the remaining property within proposed Community Facilities District No.2026-2 that is not exempt in order to yield the Special Tax revenues required for the purposes described in this Section 5. The obligation to pay the Special Tax may be prepaid only as sel forth in Section G of Exhibit "C' hereto.

A public hearing (the "Hearing") on the establishment of the proposed Community Facilities District No. 2026-2, the proposed rate and method of apportionment of the Special Tax and the proposed issuance of bonds to finance the Facilities and the lncidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on August 19, 2026, al the City Council Chambers, 29844 Haun Road, Menifee, California.

Should the City Council determine to form the District, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. lf held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7 At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the proposed Community Facilities District No. 2026-2 shall be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within proposed Community Facilities District No. 2026-2 for the exclusive purpose of paying principal of or interest on bonds, lease payments or other indebtedness incurred to finance construction of capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities District No. 2026-2 will provide the same services as were provided by the capital facilities mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above, it will consider appropriate action to determine whether the total annual amount of ad valorem property tax revenue due from parcels within Community Facilities District 34933-8998-460 1 v4l200299-0036
Section 5.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 69
Menifee Mayor and City Council
August 19, 2026
Page
1145 of 1366

Resolution of lntention to Establish cFD No. 2026-2 (Quail Hills) No.2026-2, for purposes of paying principal and interest on the debt identified in subsection (a) above, shall not be increased after the date on which Community Facilities District No. 2026-2 is established, or after a later date determined by the City Council with the concurrence of the legislative body that levied the property tax in question.

At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No.2026-2, may appear and be heard.

Each City officer who is or will be responsible for providing the Facilities within proposed Community Facilities District No. 2026-2, rt it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of the public facilities by type that will in his or her opinion be required to meet adequately the needs of Community Facilities District No.2026-2 and an estimate of the cost of providing those public facilities, including the cost of environmental evaluations of such facilities and an estimate of the fair and reasonable cost of any lncidental Expenses to be incurred.

The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2026-2. fhe District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion ofthe funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in- kind, as determined by the City Council, with or without interest.

The City Clerk is hereby directed to publish a notice (the "Notice") of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No.2026-2. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

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

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

Except to the erient limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment). 44933-8998-460 1 v4l200299-0036
Section 8.

Section 9.

Section '10.

Section 11 .

Section 12.

Section 13.

Section 14.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 70
Menifee Mayor and City Council
August 19, 2026
Page
1146 of 1366

Resolution of lntention to Establish CFD No. 2026-2 (Ouail Hills) Section 15. This Resolution shall be effective upon its adoption.

PASSED, APPROVED AND ADOPTED this the 15'h day of July, 2026 Ricky Estrada,
Attest
Stephanie Roseen, City Clerk
Approved as to form:

J Atto
54933-8998-460 1 v4l200299-0036
r. Melchino, cfv
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 71
Menifee Mayor and City Council
August 19, 2026
Page
1147 of 1366

4933-8998460 1 v4l200299-0036
Resolution of lntention to Establish cFD No. 2026-2 (ouail Hills) 6 Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 72
Menifee Mayor and City Council
August 19, 2026
Page
1148 of 1366

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EXHIBIT A

BOUNDARY MAP
A-14933-8998-460'1 v4l200299-0036
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Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 73
Menifee Mayor and City Council
August 19, 2026
Page
1149 of 1366

4933-8998-460 1 v4l200299-0036
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 74
Menifee Mayor and City Council
August 19, 2026
Page
1150 of 1366

EXHIBIT B
Types of Facilities
to Be Financed by Community
Facilities Oistrict No. 2026-2 (Quail Hills) 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 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 "Facilities"), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; 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. 4933-8998-460 1 v4l200299-0036 B-1
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 Districtt and
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 75
Menifee Mayor and City Council
August 19, 2026
Page
1151 of 1366

4933-8998-460 1 v41200299-0036 u-l
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 76
Menifee Mayor and City Council
August 19, 2026
Page
1152 of 1366

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR
coMMUNtry FAC|LtTtES DTSTRTCT NO. 2026-2 (OUATL HTLLS)

OF THE CITY OF MENIFEE
A Special Tax (all capitalized terms not otherwise deflned 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. 2026-2 (Quail Hills) ("CFD No. 2026-2"). 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. 2026-2, 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 elitent 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 5331 1 ) 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. 2026-2: 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 dascharge of the duties required of it under the lndenture; the costs to the City, CFD No. 2026-2 ot any designee thereof of complying with arbitrage rebale requirements; the costs to the City, CFD No. 2026-2 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2026-2 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. 2026-2 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. 2026-2 fot any other administrative purposes of CFD No. 2026-2, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to the January 1"t preceding the Fiscal Year in which the Special Tax is being levied, (ii) that have an assigned Assessor's Parcel Number from the County 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 lstpreceding the Fiscal Year in which the Special Tax is being levied.
4933-8998-460 1 v4l200299-0036 c-1
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 77
Menifee Mayor and City Council
August 19, 2026
Page
1153 of 1366

"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.
"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. 2026-2 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 'l.l 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.2026-2" means Community Facilities District No.2026-2 (Quail Hills) 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 ofthe 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 2026-2.
"Condominium Plan" means a condominium plan pursuant to California Civil Code, Section 6624. "County" means the County of Riverside, State of California. "Developed Property" means all Assessor's Parcels that: (i) are included in a Final Map that was recorded prior to the Januayl 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 4933-8998{60 1 v4l200299-0036 c-2
"Assessor's Parcel Number" means that number assigned to an Assessor's Parcel by the County for purposes of identifi cation.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 78
Menifee Mayor and City Council
August 19, 2026
Page
1154 of 1366

individual lot included on the Final Map, and (iii) for which a Building Permit for new construction was issued on or before May l"tpreceding 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 subdivisaon of property by recordation of a final map, parcel map, or lot line adiustment, 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 lstof any year and ending the following June 3orh.
"lndenture" means the indenture, fiscal agent agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same.
"Land Use Category" means any of the categories listed in Table 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. 2026-2 on such Assessor's Parcel. "Multifamily Property" means all Assessor's Parcels of Developed Property for which a Buitding Permit has been issued for the purpose of constructing a building or buildings comprised of attached Residential Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the CFD Administrator. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a Building Permit(s) was issued for a non-residential use. The CFD Administrator shall make the determination if an Assessor's Parcel is Non-Residential Property.
"Partial Prepayment Amount" means the amount required to prepay a portion of the Special Tax obligation for an Assessor's Parcel, as described in Section G.2. "Prepayment Amount" means the amount required to prepay the Special Tax obligation in full for an Assessor's Parcel, as described in Section G.1 .
"Proportionately" means for Taxable Property that is (i) Developed Property, that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Assessor's Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor's Parcels of Approved Property, and (iii) Undeveloped Property or Provisional Undeveloped Property, that the ratio of the actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Assessor's Parcels of Undeveloped Property or Provisional Undeveloped Property, as applicable. "Provisional Undeveloped Property" means all Assessor's Parcels of Taxable Property that would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but cannot be classifled 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. "Rate and Method of Apportionment" means this Rate and Method of Apportionment of Special Tax for CFD No. 2026-2.
"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. 4933-8998-4601 v4l200299-0036 U-J
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 79
Menifee Mayor and City Council
August 19, 2026
Page
1155 of 1366

"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 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. 2026-2 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 penodic costs on the Bonds pursuant to the lndenture.
"Taxable Property" means all Assessor's Parcels within CFD No. 2026-2 lhal are not Exempt Property.
"Taxable Unit" means either a Residential Unit or an Acre "Trustee" means the trustee, flscal agent, or paying agent under the lndenture. "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 2026-2027 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 Yeat 2026-2027, each Assessor's Parcel within CFD No. 2026- 2 shall be classified as Taxable Property or Exempt Property. ln addition, each Assessor's Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property or Provisional Undeveloped Property.

Assessor's Parcels of Developed Property shall further be classified as Residential Property or Non- Residential Property. Each Assessoas Parcel of Residential Property shall further be classifled as Single Family Residential Property or Multifamily Property. Each Assessor's Parcel of Single Family Residential Property shall be further assigned to a Land Use Category based on its Building Square Footage.
ln the event that there are Assessor's Parcel(s) for which one or more Building Permits for Residential Units have been issued and the County has not yet assigned flnal Assessor's Parcel Number(s) to such 4933-89984601 v4l200299-0036 c-4
"Special Tax" or "Special Taxes" means any of the special taxes authorized to be levied within CFD No. 2026-2 pursuant to the Act to fund the Special Tax Requirement.

Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 80
Menifee Mayor and City Council
August 19, 2026
Page
1156 of 1366

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 Adminiskator shall flrst determine an amount of the Maximum Special Tax for such Assessor's Parcel, based on the classification of such Assessor's Parcel as Undeveloped Property; (2) the amount of the Special Tax for the Residential Units on such Assessor's Parcel for which Building Permits have been issued shall be determined based on the Developed Property Special Tax rates and such amount shall be levied as Developed Property in accordance with Step 1 of Section E below; and (3) the amount of the Special Tax on the Taxable Property in such Assessor's Parcel not subject to the Special Tax levy in clause (2) shall be equal to: (A) the percentage of the Maximum Special Tax rate levied on Undeveloped Property pursuant to Step 3 of Section E below, multiplied by the total of the amount determined in clause (1), less (B) the amount determined in clause (2).

D. MAXIMUM SPECIAL TAX

1. Developed Propertv
The Maximum Special Tax for each Assessor's Parcel of Single Family Residential Property in any 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. Assioned 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 Yeat 2026-2027 applicable to an Assessor's Parcel of Developed Property shall be determined pursuant to Table 1 below.

TABLE 1

ASSIGNEO SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026.2027
Land Use Cateqory Building Square Footaqe
Assigned
Special Tax
Per Taxable
Unit
'l . Single Family Residential Propertv Less than 2,000 sq. ft $1,468.00

2. Sinole Family Residential Propertv 2,000 sq. ft to 2,200 sq. ft $1,5s5 00

3. Sinole Family Residential Propertv 2,201 sq. ft to 2,400 sq. ft $1,586 00

4. Single Family Residential Propertv RU 2,401 sq. ft to 2,600 sq. ft $1,662 00

5. Single Family Residential Propertv 2,601 sq. ft to 2,800 sq. ft $1,738 00

6. Single Family Residential Property RU Greater than 2,800 sq. ft $1 ,816 00

7. lvlultifamily Property Acre N/A $13.993.00

8. Non-Residential Property Acre N/A $13.993 00
On each July 1 , commencing July 1, 2027 , the Assigned Special Tax rate for Developed Property shall be increased by two percent (2.00%) ofthe amount in effect in the prior Fiscal Year. 4933-8998460 1 v4l200299-0036 c-5
Taxable
Unit
RU
RU
RU
RU
b. Multiple Land Use Cateqories
ln some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax levied on an Assessor's Parcel shall be the sum of the Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills Item Page Number: 81
Menifee Mayor and City Council
August 19, 2026
Page
1157 of 1366

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. Backuo Soecial Tax
The Backup Special Tax for an Assessor's Parcel within a Final Map classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property shall be calculated according to the following formula. g= (tJ xA) /L
The terms above have the following meanings
B = Backup Special Tax per Assessor's Parcel classified as Single Family Residential Property or Approved Property expected to be classified as Single Family Residential Property within the Final Map.

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

A = Acreage of Single Family Residential Property expected to exist after buildout in such Final Map at the time of calculation, as determined by the Administrator L = Number of Assessor's Parcels of Single Family Residential Property expected to exist after build out in such Final Map at the time of calculation, as determined by the Administrator. ln the event any portion of the Final Map is changed or modified, the Backup Special Tax for all Assessor's Parcels within such changed or modified area shall be $13,993 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. ln the event any superseding Final Map is recorded as a Final Map within the boundaries of the CFD, the Backup Special Tax for all Assessor's Parcels within such Final Map shall be $13,993 per Acre. The Backup Special Tax shall not apply to Multifamily Residential Property or Non-Residential Property.

On each July 1, commencing July 1, 2027 , lhe Backup Special Tax rate shall be increased by two percent (2.00%) of the amount in effect in the prior Fiscal Year. 2, Approved Propety
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 $13,993 per Acre.

On each July 1, commencing July 1, 2027, lhe l\ilaximum 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. UndeveloDed ProDertv and Provisional Undevelooed ProDertv 4933-8998-4601 v4l200299-0036 c-6
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The Maximum Special Tax for each Assessor's Parcel of Undeveloped Property and Provisional Undeveloped Property shall be $13,993 per Acre.

On each July 1, commencing July 1 , 2027 , 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 2026-2027 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 lf additional moneys are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax applicable to each such Assessor's Parcel as needed to satisfy the Special Tax Requirement.

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

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

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

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

F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor's Parcels which are used as places of worship and are exempt lrom ad valorem property taxes because they are owned by a religious organization, (iii) Assessor's Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted 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 4933-8998-460 1 v4l200299-0036
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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 16.79 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 16.79 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 16.79 Acres will be classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to Step Five in Section E.

G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G "CFD Facilities" means $4,000,000 expressed in 2026 dollars, which shall increase by the Construction lnflation lndex on July 1, 2027, afid 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. 2026-2, or (ii) determined by the City Council concurrently with a covenant that it will not issue any more Bonds to finance additional facilities to be supported by Special Tax levied under this Rate and Method of Apportionment.
"Construction Fund" means an account specifically identified in the lndenture or functionally equivalent to hold funds, which are available for expenditure to acquire or construct facilities eligible to be financed by CFD No. 2026-2.
"Construction lnflation lndex" means the greater oi (l) 2o/o and (ii) the annual percentage change in the Engineering News-Record Building Cost lndex for the city of Los Angeles, measured as of the Calendar Year which ends in the previous Fiscal Year. ln the event this index ceases to be published, the Construction lnflation lndex shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost lndex for the City of Los Angeles. "Future Facilities Costs" means the CFO 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.
4933-8998-460 1 v4l200299-0036 c-8

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 Item Title: 11.2

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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) plus
plus
plus
plus
less
Equals
Bond Redemption Amount
Redemption Premium
Future Facilities Amount
Defeasance Amount
Administrative Fees and Expenses
Reserve Fund Credit
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. Fo( an Assessor's Parcel of Developed Property, compute the Maximum Special Tax for the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property for which a Building Permit has been issued, compute the Maximum Special Tax for the Assessor's Parcel as though it was already designated as Developed Property, based upon the Building Permit which has been issued for the Assessor's Parcel. For an Assessor's Parcel of Approved Property or Undeveloped Property for which a Building Permit has not been issued, or Provisional Undeveloped Property, compute the Maximum Special Tax for the Assessor's Parcel.

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

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

5. Multiply the Bond Redemption Amount by the applicable redemption premlum, 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 flrst 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.
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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. Vetify 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 requarement (as defined in the lndenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subhacting the new reserve requirement (as defined in the lndenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount' the Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the Administrative Fees and Expenses, less the Reserve Fund Credit.
'15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under the lndenture and be used to redeem Outstanding Bonds or make debt service payments. The Future Facilities Amount shall be deposited into the Construction Fund. The Administrative Fees and Expenses shall be retained by the CFD.

The Prepayment Amount may be sufncient to redeem other than a $5,000 increment of Bonds. ln such event, the increment above 95,000 or an integral multiple thereof will be retained in the appropriate fund established under the lndenture to be used with the next redemptton 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 I 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. 4933-8998460'1 v4l200299-0036 c-10
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2. Prepayment in Part
The Special Tax obligation for an Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property may be 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)xF)+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 ofthe 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 2071-2072 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. 2026-2 Bonds have been paid; (ii) all authorized facilities of CFD No. 2026-2 have been acquired and all reimbursements to the developer have been paid, (iii) no delinquent Special Taxes remain uncollected and (iv) all other obligations of CFD No. 2026-2 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. 2026-2 may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on delinquent Assessor's Parcels as permifted by the Act. 4933-8998460 1 v4l200299-0036 c-1 1
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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. lf the CFD Administrator agrees with the appellant, the CFD Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant's Assessor's Parcel(s). No refunds of previously paid Special Taxes shall be made unless approved by the CFD Administrator.

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

COUNTY OF RIVERSIDE

CITY OF MENIFEE
)
)ss
)
l, Stephanie Roseen, City Clerk of the City of Menifee, do hereby certify that the foregoing City Council Resolution No. 26-'1744 was duly adopted by the City Council of the City of Menifee at a meeting thereof held on the 1Sth day of July 2026 by the following vote:

Ayes: Deines, Diederich, Temple, Karwin, Estrada
Noes: None

Absent: None
Abstain: None
tep nie Roseen, City Clerk

MEN IFEE
o
Item Title: 11.2

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Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 90
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4910-9625-3627v4/200299-0036
COMMUNITY FACILITIES DISTRICT NO. 2026-2 (QUAIL HILLS)

OF THE CITY OF MENIFEE

FUNDING AGREEMENT
THIS FUNDING AGREEMENT (the “Agreement”) is made and entered into by and between CITY OF MENIFEE (the “City”), acting for and on behalf of itself and COMMUNITY FACILITIES DISTRICT NO. 2026-2, QUAIL HILLS, OF THE CITY OF MENIFEE (the “Community Facilities District” or “CFD”) and Quail Hills LP, a California limited partnership (the “Developer”), each individually a “Party” and collectively the “Parties.” WHEREAS, Developer has requested that the City consider the formation of a community facilities district pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), and undertake proceedings for the authorization of special taxes and issuance of bonded indebtedness for the payment of the construction and/or acquisition of certain improvements to be owned, operated or maintained by the City and the Menifee Union School District, and incidental expenses in accordance with the Act; and WHEREAS, in order to proceed in a timely way with development of its property within the CFD that is described in the attached Exhibit “A” (the “Developer Property”), Developer desires to fund through the Community Facilities District improvements included in the City’s fee programs (the “Improvements”), as more particularly set forth and described in Exhibit “B;” and WHEREAS, the City is authorized by the Act to form the CFD and to issue bonds secured by Special Taxes (as defined in Section 2.2) of the CFD (the “Bonds”) to fund the Improvements; and
WHEREAS, the City Council has adopted the City’s policies and procedures concerning the use of special district financing programs to finance the Improvements (the “Policy”); and WHEREAS, the purpose of this Agreement is to constitute a formal understanding between Developer and the City (pursuant to the requirements of the Act and the Policy) concerning financial and other obligations and responsibilities related to the formation of the Community Facilities District and the Improvements to be financed by the Community Facilities District, when and if formed, to the extent funds are available, and to set forth the conditions upon which (1) the Community Facilities District will reimburse Developer or its designee for the amounts advanced by Developer to form the Community Facilities District and (2) the Community Facilities District will fund the Improvements thereby satisfying corresponding City fees.

NOW, THEREFORE, it is mutually agreed between the respective Parties as follows:

1.Feasibility Study. The City has retained, at the Developer’s expense, the necessary consultants to analyze the proposed formation of the CFD to finance the Improvements, including a special tax consultant, bond counsel, and other consultants deemed necessary by the City. The Developer has advanced to the City a sum of money for such costs.

From time to time, Developer will make additional advances, within 10 business days following receipt from the City of a request for an additional advance, to cover the costs of the formation proceedings and any change proceedings under the Act requested by the Developer. The City will provide to Developer on request a summary of how the advances have been spent and the unexpended balance remaining. With the exception of $5,000, the amounts advanced by the Developer and, to the extent determined reasonable and appropriate by the City, expenses Item Title: 11.2

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4910-9625-3627v4/200299-0036 2
incurred by the Developer for engineering consultant costs in connection with the formation proceedings, any change proceedings and the issuance of Bonds, will be reimbursable to the Developer, without interest, from the Bonds. In the event that Bonds are not issued to provide a source of reimbursement to Developer, the City shall not have any liability to Developer to reimburse it for any of the amounts previously advanced by Developer and expended by the City.

Prior to the issuance of the Bonds, the City will request a final advance for any unpaid expenses incurred during preparatory technical, financial and legal work; and following payment of such expenses, the City shall promptly release the balance, if any, of the advance to the Developer. Should the City’s expenses exceed the remaining balance, the City will bill the Developer for the difference, which the Developer agrees to pay within 10 days following receipt of such billing, subject to the conditions of paragraph one of this section.

2.Sale of Bonds.

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

The Parties hereby agree that, unless waived by the City, at the time of issuance of the Bonds the ratio of the value of all parcels of property for which the Bonds are being issued to the amount of outstanding community facilities district or assessment district bonds attributable to such parcels (the “Value-to-Lien Ratio”) may not be less than four-to-one (4:1). Unless waived by the City, the Fair Market Value of the property within the CFD for purposes of determining the foregoing ratio will be determined based on the appraised value of the property based on the appraisal made by an appraiser selected by the City with a valuation date within three (3) months of the issuance of the Bonds, or, with respect to developed projects (as determined in the sole discretion of the City) or issuance of refunding bonds, the assessed value of the property, or some combination thereof. Subject to satisfaction of the Policy and the requirements of this Agreement, the City shall use reasonable efforts to issue and sell the Bonds in one or more series in an amount sufficient to fund the Improvements in accordance with the schedule for development of the Developer Property. The ultimate decision as to issuance and sizing lies within the sole legislative discretion of the City.

2.2Security for Payment of Special Taxes.
(a)Concurrently with the issuance and sale of each series of the Bonds, the owner of any land within the CFD that the City has determined, in its sole discretion, to use in the sizing of such series of Bonds (the “Sizing Property”), together with any Sizing Property owned by any affiliate (collectively, an “Account Party”), for which the Maximum Special Taxes for the then-current fiscal year (as defined in the Rate and Method of Apportionment of Special Tax for the CFD (“Rate and Method”) and such Special Tax referred to herein as the “Special Tax” or “Special Taxes”), are equal to or exceed 20% of the aggregate Maximum Special Taxes authorized to be levied on the Sizing Property in such fiscal year, shall deliver to the City either (i) a renewable irrevocable instrument of credit from a financial institution (rated “A” or better, or otherwise approved by the City) in the form and upon the terms reasonably approved by the City, or (ii) cash in-lieu thereof (a “Security”). The Security shall be in an amount calculated by multiplying the Special Tax Requirement (as defined in the Rate and Method) for the then current Item Title: 11.2

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and following fiscal year, by the percentage of the Maximum Special Taxes for the current fiscal year allocable to the Developer Property owned by the Account Party (the “Stated Amount). The Security shall be maintained by the Account Party in each fiscal year until terminated in accordance with Section 2.2(c) below. While the Security is still required the Stated Amount of such Security shall be reduced as set forth in a Certificate of Reduction or Termination (as defined in Section 2.2(c) below).

The Security shall name the Fiscal Agent (as defined in Section 2.4 below) as a beneficiary and shall provide that the Fiscal Agent may draw an amount equal to any delinquencies in payment of semiannual installments of the Special Taxes levied on property owned by the Account Party in the CFD. The total amount to be drawn under the Security shall not exceed an amount equal to the Special Taxes owed by the Account Party that is delinquent at the time the draw is made. The amount drawn on the Security shall be applied in the same manner and for the same purposes as the delinquent Special Taxes would have been applied; provided, however the payment of a draw under the Security will not be deemed to cure the delinquency in payment of the Special Taxes.

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

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

At such time as the Security is renewed, or a Substitute Security is accepted by the Fiscal Agent, or the requirement for the Security has been terminated pursuant to this section, the City or its designee shall release all amounts in the Security account to the Security Provider (or its designee, which may be the Developer) within ten (10) calendar days from the date of renewal or acceptance.
(c)Following the sale or transfer by the Account Party of any property to a person other than the Account Party, or upon the prepayment of the Special Tax obligation for a parcel owned by the Account Party, the Account Party shall notify the Community Facilities District Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 93
Menifee Mayor and City Council
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of such event, in writing, and, if requested by the Account Party, the Stated Amount of the Security shall be reduced and be recalculated in accordance with this Section 2.2; provided, however, that any costs associated with the recalculation and reduction shall be borne by the Account Party.

Subject to Section 2.2(d) below, the Stated Amount may be reduced to an amount determined by the method of calculation set forth in Section 2.2(a) hereof. The Security shall be terminated upon the earlier of (i) when the Sizing Property owned by, or under option to, the Account Party is responsible for less than 20% of the Maximum Special Taxes applicable to all of the Sizing Property or (ii) when the Account Party has paid (or cause to be paid) all Special Taxes owed by the Account Party in the current fiscal year and the Sizing Property owned by, or under option to, the Account Party is expected to be responsible for less than 20% of the Maximum Special Taxes in the next fiscal year.

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

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

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

2.3Major Landowner Initial and Continuing Disclosure. An owner of land that is responsible for twenty percent (20%) or more of the Maximum Special Taxes applicable to Item Title: 11.2

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the Sizing Property in the fiscal year in which the Bonds are issued or in the fiscal year following the fiscal year in which the Bonds are issued (a “Major Landowner”) will be required to provide all information regarding the development of its property, including the financing plan for such development, which is necessary to ensure that the official statement for such Bonds complies with the requirements of Rule 15c2-12 and Rule 10b-5 of the Securities and Exchange Commission (the “Rule”) and all other applicable federal and state securities laws. Additionally, Developer acknowledges that, if it is a Major Landowner at the time of issuance of the Bonds, it will be necessary that Developer enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the development of the land owned by Developer within the CFD to assist in the marketing of the Bonds.

2.4Bond Issuance Parameters. The terms and conditions upon which each series of the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City in its legislative discretion in conformance with the Act, the Policy, and this Agreement. Each series of Bonds shall be issued with a term not to exceed 35 years from the date of issuance of the Bonds. The proceeds of the Bonds shall be used in the following priority to (1) fund a reserve fund for the payment of principal and interest with respect to the Bonds in an amount equal to the least of (i) ten percent (10%) of the total bond issue, (ii) maximum annual debt service on Bonds, or (iii) 125% of average annual debt service; (2) fund capitalized interest through the interest payment date on the Bonds for which Special Taxes are not available for payment of debt service on the Bonds or such longer period as requested by the Developer and approved by the City, subject to the Act; (3) reimburse the Developer or its designee for CFD formation costs advanced by the Developer pursuant to Section 1 hereof which have not already been reimbursed to the Developer from collected Special Tax; (4) pay for costs of issuance of the Bonds including, without limitation, underwriter’s discount, bond counsel and disclosure counsel fees, appraisal and special tax consultant fees, printing, fiscal agent fees, and reasonable Developer legal and financial consultant costs; (5) pay for the costs of forming the Community Facilities District; and (6) pay for the actual costs of the Improvements. The Community Facilities District shall maintain records relating to the disbursements of proceeds of the sale of the Bonds. The Indenture or Resolution or Fiscal Agent Agreement (hereinafter “Indenture”) for the Bonds shall establish an acquisition and construction fund or improvement fund (herein, the “Improvement Fund”) to be held by the fiscal agent (“Fiscal Agent”) into which shall be deposited initially the proceeds of the Bonds net of the amount of proceeds required to fund items (1) through (5) in the second preceding sentence.

2.5Any Special Taxes levied in the CFD and collected by the CFD remaining after the payment of administrative expenses of the CFD and the reimbursement of the Developer for CFD formation costs pursuant to Section 1 hereof shall be deposited into the Improvement Fund at the time of Bond issuance, unless otherwise directed in writing by the Developer.

2.6Interest earned on moneys deposited in the Improvement Fund shall remain in such fund until such time as all of the Improvements expected to be funded have been funded. The Indenture shall provide that amounts remaining in the Improvement Fund after funding all proposed Improvements (such completion of funding to be agreed by the City and the Developer) shall be deposited in the special tax fund or bond service fund and be applied to pay debt service on the Bonds and/or to call Bonds in advance of maturity.

3.Allocation of Special Taxes. Prior to the issuance of Bonds, the City Council of the City, acting as the legislative body of the Community Facilities District, may levy Special Taxes on all parcels classified as Developed Property pursuant to the Rate and Method. Such Special Taxes collected by the City shall first be applied to fund annual administrative expenses of the Item Title: 11.2

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Community Facilities District and then to fund Improvements in the same manner as the proceeds of Bonds as set forth herein. Upon sale and delivery of the Bonds, the City shall annually levy the Special Tax as provided for in documents pursuant to which the Bonds were issued. Following the issuance of the last series of Bonds, the City shall have no obligation to levy Special Taxes to reimburse the Developer for the costs of any Improvements not paid for from Bond proceeds.

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

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

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

5.Independent Contractor. In performing this Agreement, Developer is an independent contractor and not the agent of the City. The City shall not have any responsibility for payment to any contractor or supplier of Developer. It is not intended by the Parties that this Agreement create a partnership or joint venture among them and this Agreement shall not otherwise be construed.

6.Indemnification. Developer shall assume the defense of, indemnify and save harmless, the City, its officers, employees and agents, and the Community Facilities District, its officers, employees and agents (each, an “Indemnified Party” and, collectively, the “Indemnified Parties”), from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subject or put, by reason of, or resulting from such Indemnified Party’s performance of its obligations under this Agreement, the failure of the Developer to provide notice of the Special Tax to be levied by the Community Facilities District pursuant to Section 53341.5 of the Act (but only if the Developer is required by law to provide such notice), or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the City, the Community Facilities District, the underwriter of the Bonds and its counsel, the appraiser, the special tax consultant, the market absorption consultant or bond counsel regarding the Developer, its proposed Item Title: 11.2

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developments, its property ownership, and any contractual arrangement it may enter into in a disclosure document describing the Community Facilities District and the risks relating to the Bonds. No provision of this Agreement shall in any way limit the extent of Developer’s responsibility for payment of damages resulting from the operations of Developer and its contractors; provided, however that Developer shall not be required to assume the defense or indemnify and save harmless any Indemnified Party as to any actions, damages, claims, losses or expenses resulting from such Indemnified Party’s breach of this Agreement, gross negligence or willful misconduct.

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

8.Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either Party shall be deemed to have been received when personally delivered or seventy-two (72) hours following deposit of the same in any United States Post Office in California, registered or certified, postage prepaid. Any notice to the Community Facilities District or the City shall be addressed to City of Menifee, 29844 Haun Road, Menifee, CA 92586, Attention: Chief Financial Officer. Any notice to Developer shall be addressed to JPMB Investments, LLC, 556 S. Fair Oaks Avenue #337, Pasadena, CA 91105, Attention: Paul Onufer. Each Party may change its address for delivery of notice by delivering written notice of such change of address to the other Party hereto.

9.No Gift or Waiver. The Developer and the City acknowledge that:
(a)Prior to the availability of funds from the proceeds of Bonds, the Developer or its predecessor may have been or may be required to deposit funds to assure payment of applicable City Fees of the City.
(b)The Developer or its predecessor has deposited or will be depositing such funds with the expectation that the Developer will be reimbursed for these Deposits to the extent and in the manner set forth in this Agreement.
(c)The reimbursement of such Deposits pursuant to Section 5 of this Agreement may occur from time to time, in any number of installments and irrespective of the length of time payment is deferred, as funds become available. (d)The Developer’s deposit of such funds to the City before the availability of funds to reimburse the Developer is not, and shall not be deemed, a gift or a waiver of the Developer’s right to reimbursement of such Deposits pursuant to this Agreement.

10.General Provisions.
(a)Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the City and the Developer and their respective heirs, executors, legal representatives, successors, and authorized assigns.
(b)Amendment. This Agreement may be amended at any time but only in writing signed by each Party hereto.

Item Title: 11.2

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(c)Entire Agreement. This Agreement, and the agreements referenced herein, contains the entire understanding and agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement. There are no oral or written representations, understanding, undertakings or agreements that are not contained or expressly referred to herein, and any such representations, understandings or agreements are superseded by this Agreement. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter. This Agreement shall be binding upon, and enforceable by and against the Community Facilities District upon the establishment of the Community Facilities District. (d)Exhibits. All exhibits attached hereto are incorporated into this Agreement by reference.
(e)Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.
(f)Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Parties hereto, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by such other Parties with the terms of this Agreement thereafter.
(g)No Third-Party Beneficiaries. Except as provided explicitly in this Agreement, no person or entity shall be deemed to be a third-party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the Community Facilities District, the Developer, and the Security Provider (and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Agreement.
(h)Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. (i)Assignment. Developer may assign all or any of its rights pursuant to this Agreement to a purchaser of all or any portion of the Developer Property. Such a purchaser and assignee shall, as a condition to taking an assignment of such rights, enter into an assignment and assumption agreement with the City and Developer, in a form reasonably acceptable to Developer and the City, whereby such rights assigned are specified and such purchaser agrees, except as may be otherwise specifically provided therein, to assume the obligations of Developer pursuant to this Agreement and to be bound thereby. A company that acquires all of the assets of the Developer, including ownership of the Developer itself, shall be deemed a successor and shall not require an assignment or assumption agreement to be bound by, and enjoy the benefits of, this Agreement.
(j)Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

Item Title: 11.2

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(k)Construction of Agreement. This Agreement has been reviewed by legal counsel for both the City and Developer and shall be deemed for all purposes to have been jointly drafted by the City and Developer. No presumption or rule that ambiguities shall be construed against the drafting Party shall apply to the interpretation or enforcement of this Agreement. (l)Termination. The provisions of this Agreement related to the financing of the Improvements shall terminate and be of no further force or effect if the first series of Bonds for the CFD are not sold within ten years from the date of this Agreement unless extended by agreement of all the Parties. If the City is unable to sell the first series of Bonds for the CFD after diligent, commercially reasonable efforts to do so, this Agreement shall terminate and be of no further force and effect; provided, however, in such event, any collected Special Taxes remaining after the payment of administrative expenses of the CFD and reimbursement to the Developer of CFD formation costs shall be used to pay for Improvements in accordance with this Agreement and Developer shall receive a credit against City Fees otherwise payable to City in the amount so used to pay for the Improvements.
(m)Attorneys’ Fees. In the event of any action or proceeding, including an arbitration or a reference pursuant to Section 638 et seq., of the Code of Civil Procedure brought by any Party against any other under this Agreement, the prevailing Party shall be entitled to recover its actual attorneys’ fees and all fees, costs and expenses incurred for prosecution, defense, consultation, or advice in such action or proceeding. In addition to the foregoing, the prevailing Party shall be entitled to its actual attorneys’ fees and all fees, costs and expenses incurred in any post-judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement.
(n)Venue and Forum. Any action at law or in equity arising under this Agreement brought by any Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Riverside, State of California, and the Parties waive all provisions of law providing for the filing removal or change of venue to any other Court.

Item Title: 11.2

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

DATED: August 19, 2026
CITY OF MENIFEE, a political subdivision of
the State of California
By:

Armando G. Villa, City Manager
ATTEST:

By:

Stephanie Roseen, City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY FOR THE CITY OF

MENIFEE
By:

Jeffrey T. Melching, City Attorney
Quail Hills LP
a California Limited Partnership
By: JPMB Investments, LLC
a Delaware limited liability company
Its: General Partner
By:

Name:

Title:

Item Title: 11.2

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LIST OF EXHIBITS

EXHIBIT A - DESCRIPTION OF DEVELOPER PROPERTY

EXHIBIT B - DESCRIPTION OF COST ESTIMATES

EXHIBIT C - DISBURSEMENT REQUEST FORM
Item Title: 11.2

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EXHIBIT A

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

County of Riverside Assessor Parcel Nos. 341-060-002 and 341-060-012.

Item Title: 11.2

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EXHIBIT B
DESCRIPTION OF COST ESTIMATES OF THE IMPROVEMENTS (1)
Estimated Cost of the Improvements
Description Estimated Cost
Law Enforcement $ 139,880
Fire Facilities 97,760
Circulation 1,072,760
General Government 177,710
Parks and Recreation 260,520
Quimby 381,000
City Projects (20% Premium) 425,926
Total Improvements $2,555,556
(1) Amounts are estimates and subject to change.

Item Title: 11.2

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EXHIBIT C
CFD NO. 2026-2, QUAIL HILLS, OF THE CITY OF MENIFEE

DISBURSEMENT REQUEST FORM

1. Community Facilities District No. 2026-2, Quail Hills, of City of Menifee (the “CFD”) is hereby requested to pay from the ________________________ Account, or any applicable account or sub-account thereof, established by the CFD in connection with its 20__ Special Tax Bonds (the “Bonds”) to City of Menifee (the “City”) as payee, the sum set forth below:
$_____________________ (the Requested Amount”)

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

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

4. The City, as payee, is hereby directing payment of the Requested Amount be payable to Quail Hills LP, a California limited partnership (the “Developer”), pursuant to the wiring instructions attached hereto.

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

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

Item Title: 11.2

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4910-9625-3627v4/200299-0036 D-2
Dated: DEVELOPER:

Quail Hills LP
a California Limited Partnership
By: JPMB Investments, LLC
a Delaware limited liability company
Its: General Partner
By:

Name:

Title:

Dated: CITY OF MENIFEE
By:

Its:
[ATTACH WIRING INSTRUCTIONS]
Item Title: 11.2

First Reading and Introduction of an Ordinance for the Proposed Formation of Community Facilities District No. 2026-2, Quail Hills
Item Page Number: 105
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CITY OF MENIFEE
SUBJECT: First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services
MEETING DATE: August 19, 2026
TO: Mayor and City Council
PREPARED BY: Mandy Stephens, Management Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution calling an election to annex territory, including Tentative Tract Map (TTM) 37692, Quail Hills, located between Williams Drive and Goetz Road, into Community Facilities District (CFD) No. 2017-1 Maintenance Services and to levy a special tax on that land; and

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

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

DISCUSSION
On July 15, 2026, the City Council adopted Resolution No. 26-1746, declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 25. The next steps in the annexation proceedings are to hold a public hearing on August 19, 2026, to conduct an election for the landowners and to declare the results of that election. Notice of the public hearing was published in the Press Enterprise and mailed to the property owner in accordance with the Mello-Roos Act.

The area within Annexation No. 25 is included in TTM 37692 and is approximately forty-three gross acres of a residential vacant lot within the City. The property is located east of Palm Drive, north of Goetz Road, and west of Canyon Drive, as shown in the attached Project Location Map.

The proposed maintenance services would include items such as landscaping, lighting, streets, drainage, parks, trails and graffiti abatement.

Per the request of Quail Hills, L.P. (Owner), the City would establish a rate and method of Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 1
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City of Menifee Staff Report
CFD 2017-1, Annex 25 – Quail Hills
August 19, 2026

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3 4
0 6
apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 25 to pay for those services.

Annexation No. 25 would have a maximum annual tax of $833 per unit and would be included in CFD No. 2017-1 as “Tax Zone 25.” This tax rate includes a Maximum Special Tax A of $646 per unit per year for maintenance services of public facilities and a Maximum Special Tax B (Contingent Tax B) of $187 per unit per year. The maximum annual tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

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

A copy of the boundary map entitled “Annexation Map No. 25, Community Facilities District No. 2017-1 (Maintenance Services)” was recorded on July 21, 2026, in Book 99 of Maps of Assessment and Community Facilities Districts at Page 77, in the office of Riverside County Recorder. Annexing the parcel into CFD No. 2017-1 would cover the costs of maintenance of public improvements associated with the development.

STRATEGIC PLAN OBJECTIVE
Thriving Economy

FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. Upon full completion of the tract development, there would be an annual collection of Special Tax revenues of approximately $83,980, not including Contingent Tax B, to be used to pay for maintenance costs.

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 2
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City of Menifee Staff Report
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August 19, 2026

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ATTACHMENTS

1. Project Location Map

2. Resolution Calling the Election

3. Resolution Declaring Election Results

4. Certificate of Registered Voters

5. Ordinance

6. Signed Petition, Waiver and Consent Annexation

7. CFD Maintenance Site Plan Exhibit
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 3
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NEWPORT DR

SPRINGBROOK WAY

CHEYENNE C ANY ON
DR
GOETZ
RD

MOUNTAIN VIEW PL

AVENIDA

ESTRELLA

ESCALANTE RD
EAST
DR

MT VERNON PL

WILLIAMS DR
CANYON
DR
^_

NORMANDY RD

MURRIETA RD

OREGONPL

JUNO ST
VALLEY
BLVD
CASAB

ONITA AVE

GEARY ST
EASTDR

CHAMBERS AVE

CANYON LAKE DRN

NEWPORT RD

CANYON HILLS RD

RAILROAD CAN Y ONRD
VELADR

LUPIN PL
EVANS
RD

LONGHORN
DR

LASFLORES DR

ROBERT ST

MAURICIO ST

VIADELLAGO

BREWER ST

PROJECT MAPPROJECT MAP
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES) ANNEXATION NO. 25
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services
Item Page Number: 4
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1 RESOLUTION NO. 26-____

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

CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE

QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 201 7-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 25), TENTATIVE TRACT MAP 37692 WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 ( “Act”), on December 6, 2017, the City Council ( “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17- 658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California ( “CFD No. 2017-1”) for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services ( “Services”) which are necessary to meet increas ed demands placed upon the City as a result of the development of said parcels; and
WHEREAS, the City Council called a special election for December 6, 2017, at which the questions of levying a special tax and establishing an appropriations limit with respect to CFD No. 2017- 1 were submitted to the qualified electors within CFD No. 2017-1; and WHEREAS, at a special election held on December 6, 2017, more than two-thirds (⅔) of all votes cast were cast in favor of the levy of a special tax and the establishment of an appropriations limit, as determined by the City Council in Resolution No. 17-658, which was duly adopted on December 6, 2017; and
. WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on July 15, 2026, duly adopted Resolution No. 26-1746 (“Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017-1 and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for August 19, 2026; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled “Annexation Map No. 25, Community Facilities District No. 2017-1 (Maintenance Services)” a copy of which was recorded, on July 21, 2026, in Book 99 of Maps of Assessment and Community Facilities Districts at Page 77, in the office of the Riverside County Recorder; and
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on August 19, 2026, not earlier than the hour of 6:00 p.m. at the City Hall located at 29844 Haun Road, Menifee, California 92586, at which hearing all interested persons were given the opportunity to appear and be heard on the proposed annexation of said territory to the CFD No. 2017-1 and the levy of special taxes within said territory proposed to be annexed. If and to the extent participation in the August 19, 2026 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating in the meeting were posted on the Agenda for said meeting, which was posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda was and will be made available upon request to the Menifee City Clerk's office at 951-672- 6777; and
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 5
Menifee Mayor and City Council
August 19, 2026
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Resolution Calling an Election Annex 25
2 WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No. 2017-1, or by fifty percent (50%) or more of the registered voters residing within the territory proposed to be annexed, or by the owners of one-half (½) or more of the area within the CFD No. 2017- 1, or by the owners of one -half (½) or more of the territory proposed to be annexed; and
WHEREAS, the City Council has determined that there are fewer than twelve (12) registered voters residing in the territory proposed to be annexed to the CFD No. 2017- 1 and that the qualified electors in such territory are the landowners; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2017-1 and the levying of a special tax as described in Exhibit A attached hereto; and
WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2017- 1 consenting to the shortening of election time requirements, waiving analysis and arguments, waiving all notice requirements , and waiving word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Clerk has concurred with the election date set forth herein.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California acting as the legislative body of Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, determine and order as follows:

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

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

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

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

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 6
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Calling an Election Annex 25
3 Section 7. Tax Roll Preparation. The office of the Public Works Director, 29844 Haun Road, Menifee, California 92586, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax lev ies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.

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

Section 9. Special Election; Voting Procedures . The City Council hereby submits the question of levying the special tax within the territory proposed to be annexed to the qualified electors of the territory proposed to be annexed, in accordance with and pursuant to the Act. The special election shall be held on August 19, 2026, and shall be conducted as follows:
(A). Qualified Electors . The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of the territory proposed to be annexed into CFD No. 2017-

1. Because fewer than twelve registered voters reside within the territory proposed to be annexed to the CFD No. 2017-1 on July __, 2026 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to the CFD No. 2017- 1), the qualified electors shall be the landowners within the territory proposed to be annexed to the CFD No. 2017-1, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to the CFD No. 2017-1. (B). Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for the CFD No. 2017-1 shall be consolidated, and the two propositions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5.
(C). Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to the CFD No. 2017-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit B. The full text of the ballot for said elections shall be set forth in Exhibit C and shall be included in the ballot pamphlet mailed to each qualified elector. (D). Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 6:00 p.m. on August 19, 2026. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(E). Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on August 19, 2026, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 7
Menifee Mayor and City Council
August 19, 2026
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Resolution Calling an Election Annex 25
4 (F). Declaration of Results . The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.

Section 10. General Authorization with Respect to the Election. The officers, employees, and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof. All actions heretofore taken by the officers, employees, and agents of the City that are in conformity with the purposes and intent of this Resolution are hereby ratified, confirmed, and approved in all respects.

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

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

PASSED, APPROVED AND ADOPTED this 19th day of August 2026

___________________________
Ricky Estrada, Mayor

Attest:

___________________________
Stephanie Roseen, City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 8
Menifee Mayor and City Council
August 19, 2026
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EXHIBIT A

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

OF THE CITY OF MENIFEE

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2017-1 (Maintenance Services) (the “CFD No. 2017-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 201 8, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2017-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2017-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

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

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

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

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

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

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

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

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 9
Menifee Mayor and City Council
August 19, 2026
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construction building permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.

“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.

“CFD” or “CFD No. 2017 -1” means the City of Menifee Community Facilities District No. 2017 -1 (Maintenance Services).

“City” means the City of Menifee.

“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017- 1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.

“County” means the County of Riverside.

“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.

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

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

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

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

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

“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Maximum Special Tax B (Contingent) ” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent) , as determin ed in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 10
Menifee Mayor and City Council
August 19, 2026
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City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 3 “Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed.

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

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

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

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

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

“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017 -1 as set forth in the documents adopted by the City Council at the time the CFD was formed as identified in Appendix B.

“Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel.

“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2017-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve fo r the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circu mstances shall the Special Tax A Requirement include funds for Bonds.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 11
Menifee Mayor and City Council
August 19, 2026
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“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator.

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

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

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

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

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

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

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

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 12
Menifee Mayor and City Council
August 19, 2026
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City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 5 as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.

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

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36299-1
& PM 9504
Single Family Residential Property RU $158
Multi-Family Residential Property RU $158
Non-Residential Property Acre $1,714

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

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 13
Menifee Mayor and City Council
August 19, 2026
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TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36299-1
& PM 9504
Single Family Residential Property RU $158
Multi-Family Residential Property RU $158
Non-Residential Property Acre $1,714

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

c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 -1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 36299-1
& PM 9504 Acre $1,515

On each July 1, commencing on July 1, 201 9 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.

a. Developed Property
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 14
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August 19, 2026
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City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 7 (i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 -1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY

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

(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 201 9 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 15
Menifee Mayor and City Council
August 19, 2026
Page
1196 of 1366

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY

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

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

c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017- 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY

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

On each July 1, commencing on July 1, 201 9 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

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

First: The S pecial Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement;

Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 16
Menifee Mayor and City Council
August 19, 2026
Page
1197 of 1366

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 9 Property at up to 100% of the Maximum Special Tax A for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

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

First: The S pecial Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;

Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

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

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

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 17
Menifee Mayor and City Council
August 19, 2026
Page
1198 of 1366

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 18
Menifee Mayor and City Council
August 19, 2026
Page
1199 of 1366

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 11 APPENDIX A

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

COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2026-27. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2017-1 Tax Zone 25.

TAX ZONE 25 (SERVICES)
TTM 37692
Item Description Estimated Cost
1 Landscaping $6,919
2 Lighting $2,643
3 Streets $6,634
4 Drainage $3,223
5 Parks $48,494
6 Trails $1,308
7 Graffiti $612
8 Reserves $10,498
9 Administration $3,649
Total $83,980
TAX ZONE 25 (CONTINGENT SERVICES)
TTM 37692
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2026-27. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Tax Zone 25.

Item Description Estimated Cost
1 Drainage $20,131
2 Reserves $3,020
3 Administration $1,142
Total $24,293
TAX ZONE 25
FY 2026-27 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed RU $646 $187
Approved RU $646 $187
Undeveloped Acre $5,002 $1,447

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 19
Menifee Mayor and City Council
August 19, 2026
Page
1200 of 1366

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

27.68 NR Acre $1,714 $0 Several
2 2020-21 TR 37576 65 SFR RU $539 $43 Meritage Homes
3 2020-21 TR 28859 161 SFR RU $727 $0 Woodside O5S
4 2020-21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of
California, Inc.
5 2020-21 TTM 36852 68 SFR RU $755 $151 Strata Holland, LLC 6 2021-22 TTM 37668 175 SFR RU $765 $295 Meritage Homes of California, Inc.
7 2022-23 TTM 31456 176 SFR RU $996 $0 RCFC Investments, LLC 8 2021-22 TR 32102 & TR
32102-1 256 SFR RU $674 $0
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
9 2021-22 TTM 37400 174 SFR RU $703 $0 D.R. Horton Los Angeles Holding Company, Inc.
10 2022-23 TPM 37380 3.62 NR Acre $3,588 $1,646 Briggs & 74, LLC 11 2024-25 TR 31194 552 SFR RU $913 $0 Golden Meadowland, LLC & Golden Hill Country, LLC
12 2022-23 TR 37408 & TR
37409 1,022 SFR RU $963 $5 BLC Fleming LLC
13 2022-23 TR 36803 80 SFR RU $556 $171 FPG Sun Menifee 80 LLC 14 2022-23 TR 32628 303 SFR RU $281 $45 FPG Tricon Menifee Property LLC
15 2022-23 PLN 20-0167 9.92 MFR/NR Acre $3,865 $2,375 Boulders Menifee LLC 16 2022-23 LLA 17-007 12.48 MFR Acre $3,273 $2,119 Jefferson Menifee, LLC 17 2023-24 PM 37145 4.82 NR Acre $3,137 $0 VSK Investments, LLC 18 2023-24 TR 37131 305 SFR RU $533 $38 AG EHC II (LEN) CA 1, LP 19 2023-24 PLN 22-0199 0.96 NR Acre $2,995 $0 DSMD Cajun Properties 20 To Be Determined
21 2024-25 TR 38219 198 SFR RU $315 $71 Richmond American Homes of Maryland Inc.
22A 2023-24 TR 36658-1, -
3, -4, & -7 393 SFR RU $1,086 $100 Pulte Home Company, LLC 22B 2023-24 TR 36658-2 116 SFR RU $879 $100 Pulte Home Company, LLC 22C 2023-24 TR 36658-5
& 36658-6 247 SFR RU $879 $100 Pulte Home Company, LLC
23 2024-25 TR 37671 182 SFR RU $1,293 $0 Pulte Home Company, LLC 24 CANCELED
25 2026-27 TR 37692 130 SFR RU $646 $187 Quail Hills, LP 26 2024-25 TTM 38126 96 SFR RU $1,239 $0
Richmond American
Homes of Maryland, Inc.,
a Maryland corporation
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 20
Menifee Mayor and City Council
August 19, 2026
Page
1201 of 1366

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

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

Defined Benefit Pension
Plan.
28 2025-26 PLN 22-0154 43.14 NR Acre $820 $0 Nova Power, LLC 29 2024-25 TR 38346 162 MFR RU $274 $65 Lennar Homes of California, LLC
30 2025-26 TPM 38156 71.78 NR Acre $1,312 $374 Menifee Commerce Center
31 To Be Determined
32 To Be Determined
33 2025-26 CUP 2019-013 4.07 NR Acre $1,048 $1,902 CG Menifee 1, LLC, & CG Menifee 2, LLC
34 2025-26 TTM 31229 233 SFR RU $1,033 $121
KB Home Cal
Management Services,
LLC
35 2025-26 335-481-017 30 MFR RU $525 $327 Navarro Trust DTD 05/01/2007
36 To Be Determined
37 2026-27 TR 38303 28.24 NR Acre $968 $445 IV4 Menifee Valley Business Park BLDG 3, LLC
38 2026-27 TR 38303 74.42 NR Acre $1,339 $999 IV4 Menifee Valley Business Park BLDG 4, LLC
39 2025-26 TTM 38766 67 SFR RU $1,013 $282 Garbani Road 134 Owner, LLC
40 2025-26 331-120-058 4.44 NR Acre $3,844 $7,174 Kaiser Foundation Health, Inc.

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 21
Menifee Mayor and City Council
August 19, 2026
Page
1202 of 1366

APPENDIX B

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

DESCRIPTION OF AUTHORIZED SERVICES

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

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

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

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

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

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 22
Menifee Mayor and City Council
August 19, 2026
Page
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City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 15 APPENDIX C

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

PROPOSED BOUNDARIES
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 23
Menifee Mayor and City Council
August 19, 2026
Page
1204 of 1366

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 24
Menifee Mayor and City Council
August 19, 2026
Page
1205 of 1366

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 25
Menifee Mayor and City Council
August 19, 2026
Page
1206 of 1366

EXHIBIT B

BALLOT

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 25

(August 19, 2026)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee:

Name of Landowner Number of Acres Owned Total Votes
Quail Hills, LP 43.42 44

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

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

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

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than August 5, 2026, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on August 19, 2026, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 19, 2026.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 26
Menifee Mayor and City Council
August 19, 2026
Page
1207 of 1366

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

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

Quail Hills, L.P.

Attn: Paul Onufer
556 S. Fair Oaks Avenue #337
Pasadena, CA 91105
341-060-002, 341-060-012

CITY OF MENIFEE

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

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
Single-Family Residential $646 $187
plus an annual increase on each July 1, commencing on July 1, 2027 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino - Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 25 of Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, drainage, parks, trails, and graffiti abatement for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 26-1746 adopted by the City Council of the City of Menifee on July 15, 2026 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
YES _________

NO _________

Certification for Special Election Ballot

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

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

Paul Onufer
Managing Member

Signature

Print Name

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 27
Menifee Mayor and City Council
August 19, 2026
Page
1208 of 1366

EXHIBIT C

FULL TEXT OF PROPOSITION

SPECIAL ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF

LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 25)

August 19, 2026

SPECIAL TAX BALLOT MEASURE: Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
Single-Family Residential $646 $187

plus an annual increase on each July 1, commencing on July 1, 2027 the Maximum Special Tax A and the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 25 of Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, drainage, parks, trails, and graffiti abatement for Special Tax A, drainage for Special Tax B (Contingent) as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 26 -1746 adopted by the City Council of the City of Menifee on July 15, 2026 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected? Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 28
Menifee Mayor and City Council
August 19, 2026
Page
1209 of 1366

1 RESOLUTION NO. 26-____

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

DECLARING ELECTION RESULTS OF THE SPECIAL ELECTION HELD ON AUGUST 19, 2026, AND ORDERING THE ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 2017 -1 (MAINTENANCE SERVICES) (ANNEXATION NO. 25), TENTATIVE TRACT MAP 37692
WHEREAS, the City Council (the “City Council”) of the City of Menifee (the “City”) has heretofore conducted proceedings, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), for the area proposed to be annexed to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the “CFD No. 2017- 1”), including conducting a public hearing pursuant to the Act; and
WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for August 19, 2026, and submitting to the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet i ncreased demands placed upon the City as a result of the development of said real property, as provided in the form of the special election ballot attached thereto as Exhibit B; and WHEREAS, the special election was held on August 19, 2026 , and the City Clerk (or, in the absence of the City Clerk, the Assistant City Clerk – in either case, the “Clerk”) has duly canvassed the returns of the special election and has filed with the City Council a Certificate of Election Results, dated August 19, 2026, executed by the Clerk, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certify ing on said basis that the special mailed- ballot election was closed.

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

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

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

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

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

Section 5. Annexation. The City Council hereby finds, determines, and declares that pursuant to Government Code section 53339.8, the territory proposed to be annexed is added to and part of the CFD No. 2017- 1 with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8, to annually levy special taxes within the annexed territory to pay the costs of the services to be provided by the CFD No. 2017-1 as specified in Resolution No. 26-1746 adopted by the City Council on July 15, 2026. The boundaries Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 29
Menifee Mayor and City Council
August 19, 2026
Page
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Resolution Declaring Election Results Annex 25
2 of the annexed territory are shown on the map entitled, “Annexation Map No. 25 Community Facilities District No. 2017 -1 (Maintenance Services)” a copy of which was recorded, on July 21, 2026, in Book 99 of Maps of Assessment and Community Facilities Districts at Page 77, in the office of the Riverside County Recorder.

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

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

PASSED, APPROVED AND ADOPTED this 19th day of August 2026

___________________________
Ricky Estrada, Mayor
Attest:

___________________________
Stephanie Roseen, City Clerk
Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 30
Menifee Mayor and City Council
August 19, 2026
Page
1211 of 1366

EXHIBIT A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 25

CERTIFICATE OF ELECTION RESULTS

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

In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of Menifee (the “City”) on this same date in the proceedings of the City Council for the above -entitled community facilities district, I personally received (a) signed and dated waiver and consent form s and (b) signed, dated and marked election ballot s on behalf of the property owners, the entities named as the sole landowners of the lands within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated July 21, 2026 and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.

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

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

Tax Zone
Qualified
Landowner Votes Votes Cast YES NO
25 44 44

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on August 19, 2026.

Stephanie Roseen
City Clerk
City of Menifee

By:

(Attach completed copies of Waiver/Consent and Ballot)
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 31
Menifee Mayor and City Council
August 19, 2026
Page
1212 of 1366

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 32
Menifee Mayor and City Council
August 19, 2026
Page
1213 of 1366

ORDINANCE NO. 26-

AN ORDINANCE OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING ORDINANCE NO. 2017-231 AND LEVYING SPECIAL TAXES TO BE
COLLECTED DURING FISCAL YEAR 2026/2027 TO PAY THE ANNUAL

COSTS OF THE MAINTENANCE AND SERVICING OF STREET LIGHTS,

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

OPERATION AND MAINTENANCE OF STORM DRAINAGE SYSTEMS, A

RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE

EXPENSES WITH RESPECT TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO. 2017-1, ANNEXATION NO. 25 , FOR MAINTENANCE SERVICES WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on December 6, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) adopted Resolution No. 17-658 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2017-1") for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services (the “Services”), which are necessary to meet increased demands placed upon the City and are described in Exhibit A attached hereto; and WHEREAS, on December 20, 2017, the City Council adopted Ordinance No. 2017-231 entitled, “An Ordinance Levying Special Taxes to be Collected During Fiscal Year 2018-19 to Pay the Annual Costs of the Maintenance and Servicing of Street Lights, Parks, Parkways, Streets, Roads, and Open Space, the Operation and Maintenance of Storm Drainage Systems, a Reserve Fund for Capital Replacement, and Administrative Expenses with Respect to City of Menifee Community Facilities District No. 2017-1 (Maintenance Services)” (“Ordinance No. 2017-231”), pursuant to which the City Council levied special taxes with the CFD No. 2017-1; and WHEREAS, on July 15, 2026, the City Council adopted Resolution No. 26-1746 entitled “A Resolution of the City Council of the City of Menifee Declaring Its Intention to Annex Territory to Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, Adopting a Map of the Area to be Proposed to be Annexed (Annexation No. 25) and Authorizing the Levy of a Special Taxes Therein” (the “Resolution of Intention”) declaring its intention to annex certain territory to the CFD No. 2017-1 and to levy special taxes within that territory to provide the Services as described in the Resolution of Intention and setting a special public hearing on the proposed annexation for August 19, 2026; and
WHEREAS, notice was published as required by the Act relative to the intention of the City Council to annex certain territory to the CFD No. 2017-1, to levy special taxes therein to provide the Services, and to set the time and place of said public hearing; and WHEREAS, on August 19, 2026, at the time and place specified in said published notice, the City Council opened and held a public hearing as required by the Act relative to the annexation of territory in to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services by the CFD No. 2017-1; and
WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the annexation of territory to the CFD No. 2017-1, the levy of the special taxes therein, and the provision of Services therein were heard, and a full and fair hearing was held; and
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 33
Menifee Mayor and City Council
August 19, 2026
Page
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WHEREAS, subsequent to said public hearing, the City Council adopted Resolution No. 26-___ entitled “A Resolution of the City Council of the City of Menifee Calling an Election to Submit to the Qualified Electors the Question of Levying a Special Tax Within the Area Proposed to be Annexed to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 25)” (the “Resolution Calling the Election”) on August 19, 2026, wherein the City Council submitted the question of levying a special tax in territory proposed to be annexed to the CFD No. 2017-1 at the rate and according to the method of apportionment described therein; and WHEREAS, at said special election on August 19, 2026, the qualified electors of the territory proposed to be annexed to the CFD No. 2017-1 approved said propositions as described in the Resolution Calling the Special Election by more than the two-thirds vote required by the Act; and
WHEREAS, subsequent to said special election, the City Council adopted Resolution No. 26-___ entitled “A Resolution of the City Council of the City of Menifee Declaring the Results of the Special Election Held on August 19, 2026, and Ordering the Annexation of Territory to Community Facilities District No. 2017-1 (Maintenance Services) (Annexation No. 25)” wherein the City Council determined that the territory proposed to be annexed was added to the CFD No. 2017-1 (such territory being referred to herein as “Annexation No. 25”).

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

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

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

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

Section 2.Levy of Special Taxes. Special taxes
shall be and are hereby levied for the Fiscal Year 2026- 27, and each Fiscal Year thereafter, on all parcels of real property within the Community Facilities District which are subject to taxation, which are identified in Revised Exhibit B attached hereto, and in the amount set forth for each such parcel in said Revised Exhibit B. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes
are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Section 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 34
Menifee Mayor and City Council
August 19, 2026
Page
1215 of 1366

invalid or unconstitutional, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 5.Effective Date. This ordinance shall take effect thirty (30) days from the date of its adoption.

Section 6.Notice of Adoption. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, cause this Ordinance to be published in a manner required by law using the alternative summary and posting procedure authorized under Government Code Section 36933 (c).

This Ordinance was introduced and read on the 19th day of August 2026 and APPROVED AND ADOPTED this 2nd day of September 2026.
___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 35
Menifee Mayor and City Council
August 19, 2026
Page
1216 of 1366

EXHIBIT A

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

Maintenance services may include, but are not limited to, the repair, removal or replacement of all or part of any of the water quality improvements; fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff or appurtenant facilities; clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing, or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017- 1; and any portions adjacent to the properties within CFD No. 2017-1.

In addition to payment of the cost and expense of the foregoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to the Resolution of Intention (Resolution No. 23-1273).

The above services shall be limited to those provided within the boundaries of CFD No. 2017-1 or for the benefit of the properties within the boundaries of CFD No. 2017-1, as the boundary is expanded from time to time by annexations, and said services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created.

Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 36
Menifee Mayor and City Council
August 19, 2026
Page
1217 of 1366

5 REVISED EXHIBIT B
(Amending and Replacing Exhibit B of Ordinance No. 2017-231) COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2026-27
(Effective as of August 19, 2026)

ASSESSOR'S PARCEL NUMBERS
Annexation Owner Assessor's Parcel Numbers
Stark Menifee Land, LLC
Stark Menifee Land, LLC & Menifee
Multifamily, LLC
Original
Formation
Several
See Next Page
1 MLC Holdings 360-210-001
2 Woodside O5S See Next Page
3 To Be Determined
4 Lennar Homes of California, Inc. See Next Page
5 Forester Real Estate Group Inc. 372-040-043,
372-040-044
6 Meritage Homes of California, Inc. 372-160-006, -007, -008, -013 and 372-190-003
7 RCFC Investments, LLC 339-020-004, -005, -006, -007, -008, -040, -041, -042, -043 and 339-030-022
8 Pulte Home Company, LLC and
Diamond Brother Five Partnership, LP
340-050-034,
340-050-032
9 D.R. Horton Los Angeles Holding
Company, Inc. See Next Page
10 Briggs & 74, LLC 327-320-028
11 Golden Meadowland, LLC & Golden Hill
Country, LLC
360-300-011, 360-300-012,
360-300-013, 360-300-014
12 BLC Fleming, LLC 333-020-011,
333-020-019
13 FPG Sun Menifee 80 LLC 360-150-019
14 FPG Tricon Menifee Property LLC 372-050-037, -038, -039, -040, -041, -042
15 Boulders Menifee LLC 339-200-080
16 Jefferson Menifee LLC 364-070-051
17 VSK Investments, LLC 329-020-009,
329-020-022
18 AH EHC CA 1 364-190-004,
364-190-005
19 DSMD Cajun Properties 360-020-029
20 To Be Determined
21 Richmond American Homes of
Maryland, Inc., a Maryland corporation
338-150-046,
338-150-031
Item Title: 11.3

First Reading and Introduction of an Ordinance for Annexation No. 25, Quail Hills, into Community Facility District 2017-1, Maintenance Services Item Page Number: 37
Menifee Mayor and City Council
August 19, 2026
Page
1218 of 1366

Ordinance Annex 25

Page 6 of 12 ends
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